IRS Form 990 and the New Hartford Public Library...

What is a 990?

Even though tax-exempt nonprofits do not pay federal taxes, they do have to file an information form with the IRS.

IRS Form 990 is the tax document that tax-exempt nonprofit organizations file each year with the IRS. The 990 allows the IRS and the public to evaluate nonprofits and how they operate.

The New Hartford Public Library is required to file a 990 each year. For the last few years, the report has been prepared by Dan Dreimiller, a former library trustee and the current Town of New Hartford Finance Officer, an appointment of Supervisor Tyksinski.

The absolute deadline to file the 990, if extensions are asked for and granted, is November 15th. Since November 15th had come and gone, Library Trustee Edmund J. Wiatr, Jr. was concerned that the document had not yet been presented to the library board of directors either electronically as an email attachment, or a paper copy at a library board meeting so he FOILed a copy of the 2010 IRS 990.

After asking again at the November 29th library trustee meeting, Mr. Wiatr was told that a copy was placed in his mailbox at the library.

After the meeting, Mr. Wiatr stopped by the library office to retrieve the copy of the 990 and noticed that the 2010 Form 990 was actually dated November 8, 2011 listing Dan Dreimiller, CPA as the preparer.

It should be noted that on page 6 of the IRS 990, question 11a asks...Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form? The answer that Mr. Dreimiller provided to the IRS is YES.

Also, on page 22 of the 990, there is supplemental information typed in that states:

PT. VI-B, Line 11a FORM 990 is reviewed by the Board of Directors prior to filing. This review process has not changed from prior years.

At least the second sentence is right, the review process hasn't changed from prior years as far as we can determine. At least since we have been videotaping their meetings, the Form 990 has never been reviewed by the board of trustees prior to filing and this year was no exception.

There are several questionable items reported not only in the most recently filed Form 990 for the year 2010, but also the 990s of previous years which is one of the reasons why Trustee Wiatr has repeatedly asked for certain financial information that has yet to be given to him. At one point, he was told that most of the items he wants are stored in boxes at Ms. Du Ross' home and it would be difficult and timely to get the items he was requesting. We can't help but wonder...just why are library documents being stored at a trustee's home?

In reviewing the 990s, one thing we find puzzling is the reported salary for the Library Director. According to the 2008 form, his salary was $41,492; in 2009, it was reported as $46,600 and now in 2010 his salary is reported as $36,470.

Each year, according to the 990, he was being paid for 40 hours a week. Additionally, according to documents provided to Mr. Wiatr by the Treasurer, the Library Director is scheduled to be paid $48,000 in 2012. [see chart below]

Adding to our confusion is the fact that we are in possession of a document dated December 20, 2007 and handwritten by the Library Treasurer that states that the Library Director is scheduled to be paid a salary of $45,285 effective January 1, 2008; not the $41,492 that was reported to the IRS for 2008.

In fact, according to that same handwritten document, it was noted that the Library Director was paid a salary of $43,965 in 2007...over $2,000 more than was reported in the 2008 Form 990. So, did he take a cut in salary in 2008 too?

Does this make sense? We have to ask several more questions...

Why the discrepancy in the Library Director's 2008 salary between what was reported to the IRS by Mr. Dreimiller and what was reported to the library board?

What about 2010...did the Library Director take a $10,000+ decrease in salary from the previous year?

We don't have salary information for 2011, but according to the Treasurer there are no raises scheduled for 2012 so it would have to be assumed that his salary for 2011 is the $48,000 listed by the Treasurer as the Library Director's salary for 2012. Why did his salary increase almost $12,000 in 2011 especially since some members of the board are crying that there is a lack of funds available to operate the library, thus necessitating the closing of the library on Wednesdays?

Is there any wonder why Trustee Wiatr has been asking for financial documents?

All public libraries are required to conform to the Open Meetings Law and the Freedom of Information Law. However, why does Mr. Wiatr, a trustee, even have to resort to FOILing them in the first place; clearly as a trustee it is his right and his obligation to review the financial records of the library.

To be continued...