Minutes of the Trustees Finance and Audit Committee Meeting
May 5, 2011 Johnson Trustees Room 8am to 9am
Chairman Evelyn Arana-Ortiz
A meeting of the Trustees Finance and Audit Committee was held at the Boston Public Library, Trustees Room, Johnson Building, on Thursday, May 5, 2011 at 8:00 a.m.
Present at the meeting were: Chairman Evelyn Arana-Ortiz; Trustees Zamawa Arenas and Byron Rushing; Sean Nelson, Chief Financial Officer, Sean Monahan, Supervisor of Accounting; David Leonard, Chief Technology Officer; Jan Spitz, Executive Director, Norman B. Leventhal Map Center; Krista DeNofrio, City of Boston Budget Analyst; Steven J. Cohen and David A. Dilulis of O'Connor & Drew P.C.; and Nancy Grilk, Clerk of the Board.
The Chair noted that she received apologies from Trustee Donna M. DePrisco, Mr. Ray Sullivan, and Mr. Anthony Jordan who were unable to attend due to prior commitments.
Trustees Finance & Audit Committee (Committee) Chairman Evelyn Arana-Ortiz presiding.
The Chair reviewed the agenda and addressed the first item on the order of business pertaining to Minutes of the Trustees Finance and Audit Committee Meetings of January 6 and March 21, 2011. On a motion duly made and seconded the Minutes from the January 6, 2011 Trustees Finance and Audit Committee were approved; and following a motion duly made and seconded the Minutes from the March 21, 2011 Trustees Finance and Audit Committee meeting were approved.
The Chair called on Sean Nelson to review Proposed Award of Contracts and summary that provides a description, contract term, total contract amount, the FY12 cost, and identifies the library's source of funding for each of the contracts. Mr. Nelson reviewed each contract and responded to Committee members questions. Jan Spitz provided a summary of the Norman B. Leventhal Map Center exhibition space contract. David Leonard outlined the four contracts which the BPL has applied for e-Rate funding, and if successful, 89 to 90 percent of the funding of these contracts will be covered by federal funds, and the balance covered by BPL funds.
Following discussion on a motion duly made and seconded, it was
VOTED: "that the Trustees Finance and Audit Committee recommend that the Trustees of the Public Library of the City of Boston approve the proposed award of contracts at the Trustees Meeting on May 10, 2011"
The Chair addressed the next agenda item and called on Sean Nelson to present BPL Fiscal Updates. Regarding the FY 12 budget, the CFO reported that the final House Committee on Ways & Means budget recommendation for the BPL from State Aid and Library of Last Recourse is level funded from FY 11 at $2.75 million which includes the $350,000 allocation from the FY 11 Supplemental Budget, and is $350,000 higher than the Governor's proposed budget. Next in the process is release of the Senate Budget followed by the Conference Committee Report.
Mr. Nelson recommended that the Committee review the BPL investment policy before the close of the calendar year. The Committee will have NEPC attend a September Committee meeting to review some issues including investment policy language. Board of Trustee members will be invited to participate in this meeting. If the Committee establishes revised investment policy language, their recommendation would be brought to the Board of Trustees for a vote at the November 15, 2011 meeting.
The next item addressed was a review of the BPL Management Letter, June 30, 2010. Auditor David Dilulis a Principle of O'Connor & Drew, whose firm has been the BPL auditor for close to five years, reported on a staff change. To provide a fresh perspective on the BPL account, a new auditor will be named for next year. Auditor Steven J. Cohen led the discussion of the June 30, 2010 BPL Management Letter and suggested a few changes. He noted that no serious issues were flagged. The Committee discussed the recommendation that the Accounts Receivable module for the Event Department use PeopleSoft rather than an Excel spreadsheet for more flexibility in tracking special events. Sean Monahan reported that all special event accounts have been entered into PeopleSoft retroactive from July 1, 2010. The auditors highlighted some revisions to conform to new recommendations on the IRS Form 990. Mr. Nelson will prioritize items covered in the revisions for review at upcoming Committee meetings. The Committee discussed cash receipts, specifically outstanding fines and addressed the need to determine what amounts are realistically recoverable and what procedures can be put in place to deter outstanding fines in the future such as allowing patrons to pay fines on the web.
Following discussion, on a motion duly made and seconded, and subject to a correction of the date on page 3, at the end of the sentence in the first paragraph to read December 31, 2011, it was
VOTED: "that the Trustees Finance and Audit Committee recommend that the Trustees of the Public Library of the City of Boston accept the Boston Public Library FY10 Management Letter, at the Trustees Meeting on May 10, 2011".
The Chair proposed and Committee members agreed to continue to meet on Thursday mornings at 8:00 a.m. BPL staff will recommend a date in August and a tentative early September meeting if needed to have a Committee investment policy recommendation to present at the September 13, 2011 Trustees meeting.
The Chair further proposed that in order for the Committee to make a timely recommendation for approval of the Boston Public Library's Final Audit Report, a meeting be scheduled after September 15th and prior to the October 15th deadline for submission of the report to the City of Boston. BPL staff will submit a recommended date for this meeting.
There being no further business, the Trustees Finance and Audit Committee adjourned at 8:57 a.m.
Clerk of the Board