New York Codes, Rules and Regulations › Title 8 - EDUCATION DEPARTMENT › Chapter II - Regulations of the Commissioner › Subchapter D - Libraries › Part 90 - Public And Free Association Libraries › Section 90.6 - Financial accounting in cooperative library systems and reference and research library resources systems

Current through Register Vol. 46, No. 28, July 10, 2024
The following accounting procedures shall be employed by
					 cooperative library systems and reference and research library resources
					 systems.
(a) The fiscal year of each
				  library system shall begin with the first day of January and end with the 31st
				  day of December or, at the option of the library system, shall begin with the
				  first day of July and end with the 30th day of June.
(b) No trustee, officer or employee of the
				  system shall be interested directly or indirectly in any claim against or
				  contract with the system for lawful compensation and expenses. However, a
				  trustee who is not the treasurer may be a stockholder, officer or director of a
				  bank designated as depository for the system.
(c) The board of trustees of every library
				  system shall:
(1) appoint two separate
				  accounting officers: a financial clerk and a treasurer who shall hold office at
				  the pleasure of the board. The secretary of the library system board or the
				  library system director may be appointed the financial clerk. In the event that
				  either of these officers becomes temporarily incapacitated, the board may
				  appoint one of its members to serve temporarily in either of these
				  positions;
(2) provide a
				  satisfactory minute book for recording the minutes of the meetings of the board
				  of trustees and the proceedings of the annual meeting of the participating
				  libraries. In this minute book the secretary shall record the action of the
				  board on all bills approved for payment or shall refer to a schedule of such
				  bills by date, schedule number and amount approved. This schedule shall be
				  filed as a public record;
(3)
				  provide the financial clerk with a distribution ledger in which he shall record
				  itemized receipts and itemized payments, which shall be classified in each case
				  as is required for the annual financial report;
(4) provide the treasurer with a cashbook in
				  which he shall enter an itemized record of all receipts and payments;
(5) adopt a prenumbered receipt form printed
				  in triplicate, and require the treasurer to acknowledge the receipt of any
				  library funds paid over to his custody by issuing his receipt as follows: a
				  copy to the payer, a copy to the financial clerk and a copy to be retained by
				  the treasurer;
(6) adopt a
				  prenumbered voucher-check and require the use of this form in paying all system
				  obligations except as otherwise provided in paragraph (18) of this subdivision.
				  This form must provide for the signature of the treasurer and may provide for
				  as many additional signatures as the board may require;
(7) adopt, at least 30 days prior to the
				  start of the ensuing fiscal year, an estimate of receipts and appropriations
				  (annual budget) on forms prescribed by the Commissioner of Education, and file
				  such budget with the department within 60 days thereafter;
(8) amend the budget at any time during the
				  fiscal year and provide for appropriations from any additional revenues
				  received;
(9) keep the incurred
				  obligations in each fiscal year within the amounts authorized by the budget and
				  amendments thereto;
(10) settle all
				  accounts of the library system on or before the last day of the fiscal
				  year;
(11) disburse library funds
				  only on the basis of itemized vouchers which have been certified by the
				  claimants or the purchasing agent and audited and approved by the board of
				  trustees except as otherwise provided in paragraph (18) of this subdivision.
				  However, the board of trustees may by resolution determine that vouchers may be
				  audited and approved by a committee comprised of at least three board members
				  or by an individual designated by the board as auditor. Any individual so
				  designated may not hold the office of financial clerk or treasurer and shall be
				  bonded with such penalty and sureties as the board may require;
(12) provide by resolution that amounts due
				  upon contracts, for fixed salaries or for compensation of employees regularly
				  engaged at agreed periodic rates, may be paid without prior audit upon
				  submission to the treasurer of a voucher or payroll duly certified by the
				  library system director or his duly authorized representative;
(13) establish rules and regulations
				  governing the reimbursement of trustees, officers and employees of the system
				  and its member libraries for actual and necessary expenses incurred in the
				  performance of official duties assigned by the trustees of the library system
				  or in attending meetings designated by the library system board of trustees. In
				  lieu of actual and necessary travel expenses, the trustees may establish a
				  mileage rate for the use of personally owned automobiles;
(14) require the treasurer to render monthly
				  reports, showing the following information for the guidance of the board:
				  balance on hand at the beginning of the month; itemized list of receipts during
				  the month; total withdrawals made from the bank account during the month;
				  balance on hand at the end of the month and reconciliation with the bank
				  statement;
(15) require a monthly
				  report from the financial clerk showing amounts of receipts by source and
				  expenditures by budget category for the months and year to date;
(16) cause an annual audit of the treasurer's
				  records to be made either by a committee of the board or by an independent
				  auditor;
(17) provide adequate
				  filing equipment for the preservation and systematic arrangement of all paid
				  and unpaid bills, cancelled checks, bank statements, debit charge slips,
				  contracts and other financial records;
(18) at its discretion, establish a petty
				  cash fund for the purpose of making payment in advance of authorization of
				  properly itemized bills for materials, supplies or services furnished to the
				  library system calling for immediate payment on delivery.
(i) Whenever a petty cash fund is
				  established, the board shall designate the director or the financial clerk of
				  the system to administer and be responsible for such fund. No such fund shall
				  exceed $50 at any one time.
(ii)
				  The person in charge of such petty cash fund shall keep such records as may be
				  necessary for the accurate accounting of all transactions and shall make
				  reports to the board of trustees as required by such board
(iii) From time to time checks may be drawn
				  to the person designated to administer the petty cash fund in an amount which
				  shall not exceed payments made in cash as indicated by receipts, receipted
				  bills or other evidence of payment in form available to audit.
(iv) The petty cash fund shall be completely
				  closed out at the end of each year and the general fund reimbursed by the
				  original amount transferred to the petty cash fund.
(19) The treasurer shall deposit all moneys
				  within five days after receipt in a depository designated by the trustees. The
				  trustees may authorize the treasurer to deposit or invest moneys not required
				  for immediate disbursement in special time deposit accounts or certificates of
				  deposit issued by a bank or trust company located and authorized to do business
				  in this State, provided that such account or certificate of deposit shall be
				  payable within the time the moneys shall be needed, and provided further that
				  such account or certificate of deposit shall be secured by a pledge of
				  obligations of the United States of America or obligations of the State of New
				  York. Investments may also be made in obligations of the United States of
				  America or of the State of New York, registered or inscribed, when possible, in
				  the name of the system, and payable or redeemable at the option of the system
				  within such time as the proceeds shall be needed, but in any event not later
				  than the end of the fiscal year. Such obligations shall be purchased through,
				  delivered to and held in the custody of a bank or banker designated by the
				  trustees for the deposit of system moneys.