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HomeMy WebLinkAbout2014-05-07-BOLT-min CARY MEMORIAL LIBRARY EXECUTIVE COMMITTEE MEETING BOARD OF LIBRARY TRUSTEES Wednesday, May 7, 2014 Attendees: Norman Cohen, Mary Ann Stewart, Howard Jaffe, Kate Ekrem, Joe Pato Trustees; Koren Stembridge, Library Director, Cynthia Johnson, Assistant Library Director, Peggy Bateson, Circulation Supervisor, Rob Addelson, Town Comptroller. Call to Order: Chairman Norm Cohen called the meeting to order at 5:00 PM Secretary’s Minutes Vote: Mary Ann Stewart made a motion to approve the minutes of the April 3, 2014, meeting. Kate Ekrem seconded. The motion passed unanimously. Administrative Update Financial Update Koren reported at the end of April 2014, we are on target with expenditures on the Municipal side. Theo, Budget Office from Town Finance Department confirmed that funds will be added to the personal services budget to meet the shortfall due to vacation buyouts and retros. On the Trustees side, the Foundation and Friends have reported that they will be making their target donations by the end of the fiscal year. Staffing Proposal Koren explained that the staff contract is up for renewal; she is taking the opportunity to update an organizational structure that reflects staff’s duties. She would like to set up a sub committee of 1 or 2 people to work with. Mary Ann and Joe volunteered. Building Updates There are no building updates to report. Old Business th Discussion of 150 Celebration of Cary Library was moved to the next Executive Committee Meeting Pay Phone Norman reminded attendees that we discussed the pay phone located in the front lobby at a previous trustee meeting. At that time, trustees wanted time to consider. Norman asked if the group has any concerns about removing the pay phone. Trustees discussed the removal of the pay phone. Cynthia reminded Trustees that we offer the use of a cordless phone if a patron needs to make a brief local call. Mary Ann made a motion to remove the pay phone from the front lobby. The motion was seconded by Joe Pato. The motion passed unanimously. Rob Addelson, Trustee Funds Norman brought Trustees up to date regarding Rob’s previous presentation at an earlier Executive Committee Meeting. Rob outlined the Town auditors finding related to internal control of the assets of the library. The fines, fees ad donations on deposit with the Cambridge Trust company are not accounted for or included in the Municipal reconciliation as a result not subject to the Town’s internal controls. Rob detailed the auditor’s recommendations. The purpose of protecting the Town, Board of Trustees and donors. Any organization should be subject to such control. Rob is not suggesting that the Town of Finance Department have any control over how funds are expensed; the sole purpose is the protecting of the assets. Norman inquired about the current audit. Rob explained that only the municipal appropriation is audited. He added that trustee’s funds would be segregated to allay any concern; the funds will be held apart form the general fund. Norman invited the trustees to comment. Howard asked if moving the funds would add a layer of accessing them less nimble. Rob explained that we would access funds in the same manner in which we currently do with municipal funds. Trustees discussed the mechanics of how the process would work. Rob explained that we process invoices and payments on a two week cycle, when an emergency arises, we try to accommodate with an offline check. Howard raised the issue of donor contributions; there is strength in the understanding that we are in control of the money that comes in. Donor’s perception may be that the money goes to the Town. A second concern is that would be faithful to the original gift from Maria Cary? Joe asked about how the Endowment Funds are administered. Koren explained how donations flow from the Foundation to the library and to the Trustees of Public Trust. Kate inquired about the distinction between the Friends and Foundation accounts. Koren explained that the Named Endowment Funds are held on the municipal side. When we receive Endowment funds from the Foundation, we transfer to the Trustees of Public Trust; the Cambridge Trust bank holds our fines, fees, Foundation and Friends money. Rob reported that the Town has no hand in how the funds are spending; they are only a third party. MaryAnn expressed appreciation for the management observances on the municipal side however our responsibilities as trustees is to have annual audits, share concerns about donor issues although understand the Town control side. Norman raised the Cary Library vs. Bliss, a court case where the will of the donor was upheld. He inquired if Rob raised this with the auditors. Rob did not get to point it out to them. Rob explained that a few years ago, the funds from the Endowment were moved over to the town side not impeding on their flexibility; there have been no issues that he is aware of for Trustees. Norman provided background of the start of the Trustees of Public Trust which under a special act delegated a three person board to oversee the money held under the Public Trustees. Trustees discussed the monies invested with the Trustees of Public Trust. Norman explained that the monies are invested in a number of funds however we should be aware of the types of investments. Mary Ann inquired about the Trustees. Norman shared that they are David William, Alan Fields and Susan McLennan In closing Rob explained that the cost of an audit of Trustees funds will be approximately $2,000. Kate feels like it is worth doing. Mary Ann added that all PTA’s and parent clubs conduct an audit. Howard expressed that the intention of the established gift from Maria Cary would be honored long after this group has moved on. A separate account ensures the solidity of the private public partnership. He is not comfortable moving trustee funds to the Town side. Howard supports the expectation of an audit and is prepared to spend funds to maintain separation. Kate expressed, as a new Trustee, she would like to understand the benefit for the library moving the funds to the municipal side. After discussion, Norman explained that he sensed there is not unanimity, and that the trustees wish to maintain some separateness. The trustees is that Norman will write a letter about today’s discussion to Rob Addelson . Such letter will reference the case law establishing the library as a separate corporate entity, and that the board of trustees recognizes the need for an annual review of polices and procedures. He asked Rob if that would satisfy his needs? Mary Ann made a motion that the Executive Committee of the Board of Library Trustees of Cary Memorial Library implement and maintain a separate entity and that a letter be drafted to Rob Addison, Town Comptroller to deliver to the auditor reflecting the discussion. The motion was seconded by Howard. The motion passed unanimously. Koren suggested that the finances issue revealed that the Trustee by-laws are out of date and that we should consider tackling an update in the near future. Kate asked if there is an audit scheduled. Koren explained that we will conduct an audit for FY 14. She added that we do not receive regular information of the funds invested with the Trustees of Public Trust. . Koren hopes that in the fall, we can schedule them to attend an Executive Committee Meeting. Fines and Fees Koren summarized the presentation made at the March Executive Committee meeting regarding the proposal to modify the fines and fees. The aim is to standardize fines To align with the Minuteman system, impact our customer services in a more positive way. The maximum fine to clear a record will be $25. Howard asked about the financial impact. Koren reviewed the FY 15 budget noting that our current budget hovers around $80 - 90,000 in fines and fee income. This will reduce income by about $20,000 per year. Joe asked if we will augment the materials budget through the use of Foundation funds. Koren explained that we have not taken any funds from the Endowment account rather than taking out funds we used other funds to honor the donor intent. Cynthia added that the goal was to try to building up the Endowment. Mary Ann added that a well thought proposal can take a look at the future. Koren is anticipating $68,000 in Trustee income for FY15. Howard made a motion to accept the recommendation from the Barriers Committee to change the fines; included in these motions is to approve the FY15 budget. Mary Ann Stewart seconded the motion. The motion passed unanimously. FY 15 Proposed Dates Koren asked Trustees to review the proposed dates. We will finalize at the next meeting. Administrative Update  Koren reported that our website it one million visits; we subtracted in-house taps.  Koren shared a request from staff regarding updating our dress code to include wearing jeans on Fridays. The consensus from the Trustees is to defer to Koren’s judgment on dress code issues. Mary Ann made a motion to adjourn the meeting. The motion was seconded by Joe Pato. The motion passed unanimously.