The library’s financials are available at every monthly open meeting. At its January meeting, the library made available copies of its financial statements, compiled and certified by a Certified Public Accountant.First of all, we disagree with Ms. Romano regarding the library's financials being available at every meeting...they have never been provided to the public. In keeping with the recent changes to the Freedom of Information Law, handouts should either be posted on the library website or made available prior to the start of the meeting...not thrown in the middle of the board table during the meeting. We have, however, reviewed the figures made available to board members at their meetings and find them sorely lacking in detail.
Second, the financial statements referred to by Ms. Romano are as of December 31, 2011. According to the letter contained in the financials, the report was finished on November 16, 2012. The report was given to the board at the January 9, 2013 board meeting. What good is old information? Who cares what the financial condition of the library was at the end of 2011 when it is now 2013?
To be of any use to the library board, the 2011 financial information should have been discussed at a board meeting by the end of the first quarter of 2012...not the first quarter of 2013.
In our opinion, the library board needs to take their role as trustees of public funds more seriously. They are remiss in not seeing to it that those reports are completed and shared at the board level and presented to the public in a timely manner. It is our opinion that Mr. Wiatr WAS NOT the only trustee that didn't know...he was the only trustee that admitted he didn't know. No other trustees ever question anything...they go on blind faith. We have videotaped other trustees saying "if Earl says so, it must be true". Trustees have a fiduciary responsibility!
Certified financial statements are financial statements that include an accountant's opinion. As bond counsel to many organizations, Ms. Romano should know the difference between a compilation and a certified financial statement. Let's cut out the bull, Ms. Romano!
According to the letter accompanying the 2011 Financial Statements signed by Mr. Dreimiller, in the first paragraph he states:
We have not audited or reviewed the accompanying financial statements and, accordingly, we do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America.In the third paragraph, he states:
The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modification that should be made to the financial statements.We highly doubt that Mr. Dreimiller in his 2010-2011 compilation of the Financial Statements of the New Hartford Public Library is certifying anything!!
The fourth paragraph of that letter states:
Management has elected to omit substantially all of the footnote disclosures required by accounting principles generally accepted in the United States of America. If the omitted footnote disclosures were included in the financial statements, they might influence the user's conclusions about the Organization's financial position, results of operations and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.What possible reason could there be in omitting footnotes to financial statements?
In comparing, the compilations with no footnotes most recently completed by Dan Dreimiller, a former library trustee, against older library financial reports that included footnotes and were completed by another accounting firm, one could make an assumption that the footnotes are being omitted to keep an "outsider" from obtaining accurate information regarding the financial status of the library.
A letter is being sent to Mr. Dan Dreimiller, CPA P.C., asking him to confirm that he has certified the New Hartford Public Library 2010 2011 Financial Statement (Compiled) that was prepared by his accounting firm. Given the above statements found in the financials, we would guess that Mr. Dan Dreimiller will not respond in the affirmative.
After all, let's be realistic...his business depends on his reputation...with no review conducted by his firm, he is not going to certify a compilation made up of numbers presented to him by any organization. He even states in his letter that "Management is responsible for the preparation and fair representation of the financial statements...".
Here is a copy of the New Hartford Public Library 2010/ 2011 Financial Statements prepared by Daniel T. Dreimiller, CPA P.C., who is also the Finance Director for the Town of New Hartford.
To be continued...