Financial Controls Presentation to the Evanston Public Library Board June 19, 2013

Financial Controls Summary Core Components of Financial Controls: 1.Separation of Duties 2.Multiple Levels of Review 3.Transparency 2

Financial Controls Summary Government Finance Officers Association (GFOA) Best Practices: 1.Information and Training is provided to Financial Managers 2.Documentation of Internal Control Procedures 3.Periodic Review of Internal Control Procedures –Ensure procedures meet organizational needs –Ensure procedures have been implemented –Ensure procedures function as designed 4.Identify and Correct any Weaknesses of Internal Controls 3

Financial Controls Summary Handling of Cash – Revenues: 1.Circulation Clerk’s cash receipts counted and compared with income report by Administration Clerk. 2.Administration Clerk’s cash reporting and deposit reporting reviewed and verified by Administrative Services Manager. 3.Gift income (e.g. – Fund for Excellence checks) recorded by Development Coordinator and deposited and reported by Administration Clerk. 4

Financial Controls Summary Paying Bills – Accounts Payable (A/P): 1.Vendor Registrations handled only by Purchasing Team, not by A/P Coordinator 2.All Invoices reviewed and verified by Purchaser and approved by division manager/department director before being sent to AP for processing. 3.Invoices entered into financial system by A/P Coordinator 4.Library Invoices approved by Administrative Services Manager and/or Director 5.Library Bills List prepared by AP Coordinator and Approved by Library Board.

Financial Controls Summary Purchasing Cards: 1.Purpose of Purchasing Cards: Incidental and Emergency Purchases up to $1,500 2.Each month, Purchases reconciled online by card holder, reviewed by supervisor and approved by Director. 3.Monthly Credit Card Statement presented to City Council for review and approval. 4.Library credit card charges reviewed/approved by Adm. Services Manager, Library Director and Finance Committee. 5.Library credit card Monthly Statement Presented to Library Board 6

Financial Controls Summary Payroll: 1.Supervisors review and approve Requests for Time Off and Timesheets for staff. 2.Administrative Clerk enters payroll information into financial system. 3.Administrative Services Manager reviews and approves payroll, and conducts regular payroll audits. 4.Payroll staff spot-checks payroll registers for errors and discrepancies. 7

Financial Controls Summary Gift Fund and Endowment: Gift Fund Monthly Reconciliation Bookkeeper reconciles Library Gift Fund account monthly. Administrative Services Manager reviews and approves reconciliation. Accounting staff reviews statements and reports for annual audit. Endowment Monthly Reporting Investment Committee receives monthly statement of Endowment account. Accounting staff reviews statements for annual audit. 8

Financial Controls Summary Reports: 1.Monthly budget-to-actual Income/expense and cash reports reviewed by Finance and submitted to City Council. 2.Quarterly budget-to-actual income/expense and cash/investment report reviewed by Finance and sent to the City Council. 3.Annual year-end financials and Grant Audit reports prepared by Finance and audited by an independent accounting firm. 9

Questions? 10