by Linda Baum
Sept. 9, 2013
There is a special meeting of the Middletown Library board this Wednesday, September 11 at 6 pm. The board will go into executive session soon after the public meeting opens. Another public session will follow later that evening, and board action is expected. I encourage residents to attend.
If you’ve been following library news over the last couple of years, you know a lot has gone on, much of it following the installation of an almost entirely new board last year.
On March 1st of this year, the library’s Bayshore, Lincroft and Navesink branches closed following a truly dedicated public effort to keep them open, even for a short while. It came down to money, where about $300K was needed annually to operate all three, not counting renovation or major repairs. Given what was known at the time about available funding, the trustees made the decision to close.
Then in May, an extra $156K materialized. The additional reserve stems from the Township’s 2011 audit, which resulted in the discovery of an error made by auditors earlier in the year. We are not told what the error was, but it suffices to say that this occurrence is out of the ordinary.
Edmunds, the accounting software Middletown uses, is updated by department to reflect the audit results. The Edmunds system should have shown an increase in library reserves of $156K sometime in the last quarter of 2012 – should have, but didn’t. Edmunds system reports dated as recently as April 30th don’t show the extra money. Suddenly, in May it was there.
An important point is that library employees only view what’s on the Edmunds system for the revenue information they need and print what’s there. The Township’s finance department bears full responsibility for the accuracy of what’s listed.
Regardless, Township Committeeman and new library board member Tony Fiore wasted no time pointing a finger at the library’s director. And of course Fiore has made sure to go on record now, after never having voiced an opinion before, that he wouldn’t have approved of the closing of the branches if he’d known. His remarks are disingenuous considering it’s well known that the Township needed those buildings for office space. (The former Bayshore branch now houses the Township offices formerly located at Croyden Hall, and the Lincroft branch will be the new location for the Crossroads Program.)
Other members of our Township Committee have done a good job staying out of this, or appearing to, including current mayor Gerry Scharfenberger and former library trustee Kevin Settembrino, who are up for re-election this year.
While we can only wonder if any member of the Township Committee or library board knew last fall about the extra money, there are two things we do know with certainty:
One, we know that the Edmunds system was first updated to reflect the additional $156K reserve on or about May 1st of this year. We know that because the library has printouts of the Edmunds system report that shows reserve levels in late April and again in early May of this year. See them
here. The reports clearly show that the jump occurred on or about the beginning of May 2013. The $209K reserve shown on the May report is the sum of the $156K and a reserve of $53K that the library knew about but that the Township had not yet released for the library’s use.
Further, the library has printouts of the same report for each month dating back to the fall of 2012, and none shows the additional monies.
Two, we know that the Edmunds system has long been the agreed-upon protocol for communication between the Township and the Library. We know that because our Township CFO, Nick Trasente, stated it with crystal clarity in his May 10th memo to Committeeman Fiore. In an excerpt from that memo, Mr. Trasente states, “Each year, after verification of these balances and obtaining adjustments from our auditors, we make this balance available to the library director through Edmunds…” He then goes on to acknowledge the diligence of the library director in monitoring system updates, pretty much confirming the finance department’s failure to make the update timely. You can read Trasente’s May 10th memo
here.
Given the damning nature of Trasente’s memo for the Township – the memo is a smoking gun – it’s not surprising that Committeeman Fiore wants to downplay it now. At the August 21st board meeting, he didn’t want to talk about the Edmunds system at all.
Here is a link to the video from the August 21st library board meeting:
http://youtu.be/8WBYbllBM5E
See time stamp 1:36:00 on the video to see library director Susan O’Neal discuss the reserve issue. She provides a good summary and chronology of events.
The library trustees are now well aware of the sudden appearance of the reserves in the Edmunds system in May. They should also be aware that the delay in updating the Edmunds system for the reserves is not an isolated problem. Rather, it’s a symptom of the ongoing difficulty the Township is having managing administrative functions, including keeping its accounting system current. Among other issues, the Edmunds system is many months behind on reflecting library bill payments made by the Township. To be clear, while checks may have been cut from the library’s municipal appropriation for vouchers submitted by the library, the Edmunds system does not show the payments until months later. Library trustee Larry Nelsen alluded to this at the August 21st meeting (see time stamp 1:56:30 on the video). Further, Ms. O’Neal has said often that she needs to remind the CFO and his assistant to move year-end reserves into a spending account for the library’s use and that frequent follow-up is required.
These are the facts to the best of my understanding. I welcome input from the Township’s CFO, and I would like the library trustees to address the specific issue of when the Edmunds system update should have been done in line with established protocol. They should also question why the CFO, who must have known that the accounting system was nowhere near up to date, wouldn’t communicate knowledge of a substantial sum of money when he had ample opportunity to do so.