Trustees question signatories
The Red Oak Public Library Board of Trustees held a special meeting Sept. 13.
The main focus of the meeting was discussion on management of the library funds, and signatures. Trustees President Robin Connolly said a resolution was on the table that would name signatories for the Red Oak Public Library Board of Trustees financial transactions.
“This resolution is to address the fact that different financial institutions have different requirements and different rules for our accounts. It’s come to light that they would like us to have a more standard form that would state who are the designated signatories for the library,” Connolly said.
The resolution would be in place for all the accounts held in the name of the library board of trustees. City administrator Brad Wright and Red Oak Mayor Bill Billings were in attendance at the meeting. Wright disagreed with the resolution, and said the city had been told by the State Auditor’s Office that all accounts under the Red Oak Public Library are public funds.
“I confirmed again with State auditor Mary Mosiman that those accounts must conform with City Council adopted policy for the city overall. For the past 12 years, the audits have referenced those and state they must all conform with city policy, and city signatures. Those are only the Mayor, the Mayor Pro-Tem, the City Administrator, City Clerk, and City Treasurer. My confirmation with the state auditor was that there was nothing you could pass that would supersede what city council action has taken. They’re public funds that must come under our accounting system,” Wright advised.
Library Director Kathi Most explained it had not been for 12 years and the original request only read to include the information from the board into the city bookkeeping. She also added a solution had been offered at a meeting over a year ago to which the trustees had received no response.
Connolly said she agreed any library funds come under the umbrella of the city, but felt the funds designated for use by the trustees were not in that. Billings said there was no differentiation, as the funds were held by the Red Oak Public Library, which does not exist without being an entity of the city.
“The council appoints the members of this board, I make the recommendation and they approve the appointments. You are governed by the city council’s resolution and the laws of the city,” said Billings.
Wright wanted to make it clear that the City’s intention was not to take money from the library or limit the use.
“These are monies for the library’s use and the library’s use alone. We’re not trying to absorb them somewhere else. We simply want to comply with the state auditor, get it under our accounting system, under the signators approved by the council, and they are yours to use as always. We’re not trying to take anything from you, I promise,” said Wright.
Billings said the treasurer could pick up copies of all the bank statements that came to city hall. Their only goal was to meet the compliance of the State of Iowa and the auditor’s office, and said the council had passed a resolution that all signatures on all city accounts would only have the four authorized signatures. According to Billings, during the process of changing Mayor Pro-Tems earlier this year, new signature cards had to be filed by the city, and it was decided it was an opportune time to complete all signature cards with any account for the City of Red Oak.
Trustee Sandy Krcilek expressed some reservations over the change in signatures.
“We have asked for $100,000 in memorial money to be invested since March, 2017. We’re not getting any response as to why it hasn’t happened, or if it’s going to happen. Our concern about giving up some of our control is that we’ve asked for things and are not getting any communication about what is going on.”
Wright said the City has been trying to get the issue solved before making any other investments or tying up any funds. Krcilek asked if the trustees could assume if the change went forward that the money would be invested as they had asked it to be. Wright confirmed the request would move forward. Krcilek said moving forward, and there were issues, that there was increased communication.
“We’re not getting any feedback. We’re not hearing why. As an individual on this board, I ask for that courtesy to communicate,” said Krcilek.
Wright said the request was more than fair, and he agreed, feeling it needed to go both ways.
Most voiced her own concerns over the change, stating the charge of the board could not be changed without a referendum, per city ordinances and Iowa Code.
“The trustees have been in charge of the funds, closed accounts, moved CDs, searched for interest rates, monitored the money, kept track of the interest, and reported it. We have no bank statement for the CD for the $100,000. We get a typed up memo that says it’s at this rate. We finally reached the time where we said we need to know when it’s due, so we can make a motion as a board to actually renew it. You are changing the charge of this board, and I think the question at least needs to be out there. Someone needs to talk a little bit further about altering the charge of the board and the ordinances the City accepted in the beginning of the library board and the library without a referendum,” Most said.
Wright said he understood her position, and that all the City was trying to do was comply with the state audit. According to the auditor’s report, checking accounts, savings accounts, and certificates of deposit must be included individually in the City’s books, and therefore all separately held funds held by the library must be remitted to City Hall for proper accountability. Wright said the funds had not been remitted and were still under the separate signatures, and that’s what the City was attempting to resolve, and that they had delivered the information they needed to deliver, and that was that they felt the resolution being proposed was out of order and could not supersede what the City Council had done, which Wright said was confirmed by the State Auditor.
Wright added the trustee’s treasurer would not be put on as a signator, but they could probably be added to have access to the information and view it. Billings reiterated the money would still belong to the library, and it would be their decisions on how it was invested and spent. The signatures were a protection measure.
“It is a protection put in place by there being four people who are held accountable and liable by the attorney general, secretary of state, and state auditor for the auspices and operations of the financial and fiscal business of the City of Red Oak. The Red Oak Public Library falls under those auspices,” said Billings.
Most asked if the library building also belonged to the City of Red Oak. Billings said it did.
“Absolutely the building belongs to the City of Red Oak. It’s city property,” commented Billings.
Wright advised he would research online access for the treasurer of the board of trustees.
The library board of trustees took no action on the resolution naming signatories for the Red Oak Public Library Board of Trustees financial transactions.