Director Briefing - January 6, 2025

Reminder: Oath of Office for Calendar Year Libraries

Pursuant to New York State Public Officer's Law §10, all public library Trustees must take and file an Oath of Office within 30 days of the start of their term. If an oath isn't properly taken and filed on time, the Trustee's position is considered vacated (per NYS Public Officer's Law §30(1)(h)). This applies to new Trustees as well as to incumbent Trustees beginning a consecutive term.

If a Trustee started a term on January 1, 2025, their oath of office must be filed before Friday, January 31, 2025, or they will no longer be on your Board.

Please let me know if you have any concerns about oaths of office. There are various ways to correct issues if they come up.

While oaths of office are not required for Trustees of association libraries, it is a good practice to take and file them regardless as a public demonstration of accountability and transparency.

Reminder: Annual Financial Report and 990 Requirement

All public libraries are required to submit an Annual Financial Report (AFR, previously known as the Annual Update Document or AUD) to the Office of the State Comptroller (OSC), and all association libraries registered as a 501c(3) with the IRS must submit Form 990 to the Internal Revenue Service.

Reminder: Tax Cap Compliance for Public Votes

Each library with a public vote must file with the Office of the State Comptroller regarding their Tax Cap. It is recommended that libraries that go out for a public vote pass a board resolution indicating that they will or may exceed the tax cap. This is recommended whether you intend to exceed the tax cap or not due to the potential for reporting errors.

Currently, only four libraries in our System do not have a public vote (Allens Hill, Lima, Livonia, and Marion), meaning everyone else must complete this process.

Resources

• OWWL Docs Tax Cap Page
• Property Tax Cap section of "Budget and Finance" chapter, Trustee Handbook, 2023 Edition

Annual Reporting/Filing

Office of the State Comptroller requires libraries that receive funding through a referendum (public vote) to complete tax cap reporting forms each year, even if you do not plan to ask for an increase or exceed the tax cap.

You must file and submit your online form with the Office of the State Comptroller before March 1st each year.

The Form Needs to be Completed and Submitted Online.

• Property Tax Cap Form
• To declare your intentions for the coming fiscal year and the tax levy being voted on this May. (The May timeline is a general guide as many libraries put up their tax levies and local school district votes).

Deadline to file: End of February

Draft Document of Major Changes for the 2024 Annual Report

Find below the Draft Document of Major Changes to the 2024 Annual Report. There may be minor changes before the portal opens, but it's a good idea to review this document now to prepare.

DRAFT 2024 Annual Report for Public Association Libraries - Outline of Major Changes.pdf

The deadline to submit your library's annual report this year will be March 1, 2025, and the portal will open soon.

State Aid for Library Construction

The FY2026 State Aid for Library Construction Intent to Apply is now open. Libraries planning to apply in 2025 can access the form here. Additionally, key dates for the FY2026 program cycle have been added to the OWWL Docs page.

There will be a virtual information session on Tuesday, January 28 at 5pm. Libraries planning to apply for funds in the next few years are encouraged to register and attend to learn more about the program.

EAP Resource: Talkspace Go

For our EAP libraries, Talkspace Go is a free benefit for you and eligible family members aged 13+. The mobile app can be used to improve mental health and wellbeing. Get help for relationships, parenting, depression, and much more.

There are some valuable classes in January on personal resolutions in the new year. If members cannot make the class times, they can view them on-demand through the app after.

TC-Getting-Started-Talkspace-Go.pdf

Talkspace Go Class Schedule-01.2025.pdf

Arkansas Book Banning Law (Arkansas Act 372) Declared Unconstitutional

To pass along some good news I heard from PULISDO, see below:

The US District Court for the Western District of Arkansas has declared Arkansas Act 372 unconstitutional in an opinion indicating that the law is overbroad and void for vagueness, and permanently enjoined its enforcement.

The Arkansas law would have subjected librarians and bookstore owners to criminal prosecution for making materials available on library and bookstore shelves that could be deemed harmful to younger minors and conceivably available for younger minors to view, and mandated a library book challenge procedure in public libraries whereby individuals may challenge books based on “appropriateness” (an undefined term not based on constitutional standards). In addition, review boards would have been allowed or even invited to engage in viewpoint and content-based discrimination. The ruling came in response to the suit filed by a coalition of plaintiffs, including local Arkansas libraries and authors, publishers, booksellers, librarians, and readers.

Read the court's memorandum here.

Read the court's decision here.

This Week in OSC Audits

Audit	Key Findings	Takeaways for Libraries
Gowanda Central School District - Financial Management	The Board and District officials did not properly manage the District’s fund balance and reserves. The Board and District officials’ budgeting practices were not transparent and resulted in the District exceeding the statutory limit on surplus fund balance by $4.5 million, and missing opportunities to lower real property taxes. The Board and District officials: Consistently overestimated general fund appropriations from 2020-21 through 2022-23 by a total of $13.1 million and appropriated nearly $6.7 million of fund balance that was not needed or used. The continued practice of overestimating appropriations and appropriating fund balance that will not be used to finance operations as a means to accumulate surplus funds in excess of the legal limit is in effect a reservation of fund balance that artificially reduces the amount of surplus fund balance subject to the statutory limit and does not present the District’s spending plan in a transparent and meaningful manner to taxpayers. Adopted annual budgets during the same period that gave the impression that the District would have operating deficits totaling $6.7 million when it actually had operating surpluses totaling $9.9 million. Overfunded the employee benefit accrued liability and unemployment reserves by nearly $1.9 million and did not use funds held in six reserves with balances totaling $10 million.	Fund Balance Management: Libraries must ensure they properly manage and report their fund balance and reserves to prevent excessive accumulation, which could violate legal limits. Libraries should avoid the overestimation of fund balances and ensure that surplus funds are used in an effective manner rather than held unnecessarily. Budgeting Transparency: Libraries should adopt transparent budgeting practices that clearly reflect actual spending needs and avoid inflating appropriations. Overestimating appropriations or appropriating unnecessary fund balances can create a misleading picture of a library's financial situation and reduce the transparency of the budget for stakeholders, such as taxpayers and board members. Avoiding Taxpayer Overburden: By overestimating funds and holding excess reserves, the library risks collecting more tax revenue than needed. It’s important to align budget projections with actual expenditures to avoid opportunities where tax rates could be lowered due to excess funds, ensuring the community isn’t overburdened. Proper Use of Reserves: Libraries should carefully evaluate their reserve funds, including employee benefits and liability reserves, to ensure they are not overfunding or holding unnecessary amounts. Funds should be used appropriately and efficiently to avoid locking up resources that could be better spent on library services. Clear Financial Reporting: Financial practices should be clear and understandable, especially when presenting budget plans to the public and other stakeholders. Libraries should strive for accuracy and transparency in communicating how funds are being allocated and used. Efficient Use of Resources: Libraries should consider whether reserve funds, especially large unspent balances, could be reallocated or used to enhance library services, rather than just accumulating without purpose.
Town of Hector - Employee Compensation	Town employee compensation was not always authorized, accurate and supported. Of the 53 employee records that we reviewed, we determined that Town officials: Paid 10 employees a total of $150,155 that was not authorized by the Town Board (Board). Inaccurately accrued and/or recorded leave time totaling 1,830 hours valued at $38,586 for 20 of 23 eligible employees. Paid one employee $5,271 for a separation payment that was not approved by the Board.	Authorization of Payments: Libraries should ensure that all employee compensation, including salaries, bonuses, and other payments, is properly authorized by the appropriate governing body, such as the library board. Payments made without authorization can lead to financial mismanagement and legal issues. Accurate Recordkeeping: It is critical for libraries to maintain accurate records for employee compensation, including leave time accruals and balances. Inaccurate or improperly recorded leave time can result in incorrect financial reporting and potential legal or compliance problems. Board Approval for Special Payments: Any special payments, such as separation or severance pay, should be explicitly approved by the library board. Payments made without board approval can lead to financial mismanagement and could cause discrepancies in the library's financial records. Compliance with Policies: Libraries should establish clear policies for compensating employees, including leave time accruals and separation payments, and ensure that all practices are in compliance with these policies. This includes accurate tracking of leave and ensuring payments align with the policies set by the governing board. Internal Controls: Libraries should implement and maintain strong internal controls to verify that all compensation and related payments are accurately calculated, appropriately documented, and approved by the relevant authorities. This ensures financial integrity and accountability. Regular Audits and Reviews: Libraries should regularly audit employee compensation records to ensure compliance with authorization procedures, accuracy in recorded leave time, and adherence to board-approved payment policies. Regular reviews help identify and address discrepancies early on.
Wayland-Cohocton Central School District - Building Access Accounts and Badges	District officials did not properly manage and monitor building access accounts and badges used to access District buildings. Accounts and badges that are not properly managed and remain active can potentially result in unauthorized building access. District officials: Did not establish written procedures that define who is responsible for managing and monitoring building access accounts. Although we determined that the District had a process for granting access and adding information into the Building Access System (BAS) for employees during the hiring process, including background checks, the District did not have an adequate process for granting access to non-employees. Almost half of the active building access accounts and badges were for non-employees. Did not establish a Service Level Agreement (SLA) with the third-party contractor that issued and managed 209 building access accounts and badges. Granted access to 39 individuals participating in continuing education programs without conducting any background checks. Issued 14 building access accounts and badges without verification from District administrators that these individuals were approved to receive access. Did not deactivate the building access account of, and could not locate the badge for, one non-employee. The account and badge were no longer needed as of December 1, 2023 but still active as of July 15, 2024.	Establish Clear Procedures for Access Management: Libraries should implement written policies and procedures that clearly define who is responsible for managing and monitoring building access accounts, including staff, contractors, and non-employees. Without a clear process, unauthorized access can become a significant security risk. Control Access for Non-Employees: Libraries should ensure that building access accounts for non-employees, such as volunteers, contractors, or visitors, are properly managed and limited. Access should only be granted when necessary, and there should be a process in place to remove access when it is no longer required. Service Level Agreements with Contractors: If libraries rely on third-party contractors to manage access accounts and badges, they should establish formal agreements (Service Level Agreements, or SLAs) with clear expectations and responsibilities. This ensures that contractors manage the accounts securely and in alignment with library policies. Background Checks for All Personnel: Libraries should ensure that background checks are conducted for all individuals granted access to their buildings, including non-employees and those participating in programs. This helps mitigate the risk of unauthorized or harmful access. Verification of Access Approvals: Before issuing building access accounts, libraries should verify that individuals have been approved by the appropriate administrators. This helps ensure that only authorized individuals are granted access. Deactivate Unnecessary Accounts Promptly: Libraries must have a process in place to promptly deactivate building access accounts when they are no longer needed, such as after an employee leaves or a contractor completes their work. Failing to deactivate accounts or misplacing badges can lead to security vulnerabilities. Regular Audits and Monitoring: Libraries should periodically audit their building access systems to ensure that only authorized individuals have access to their facilities. Regular checks will help identify and correct any discrepancies, such as unapproved access or inactive accounts that remain active longer than necessary.

HBR: Tip of the Day

8 Leadership Skills to Develop

Leadership isn’t a quality you either innately possess or lack; it’s the sum of eight skills you can develop over time. Here are the characteristics that will help you become recognized as a leader.

Authenticity. Work to build self-awareness and put yourself in positions to highlight your strengths and improve on your weaknesses.

Curiosity. Ask questions about what you don’t know. Think expansively and ambitiously. Present as someone who constantly wants to learn, explore, and innovate.

Analytical thinking. Leadership requires the ability to break down complex problems, identify their root causes, and come up with fresh solutions. Develop your analytical skills by focusing on cause-and-effect relationships and being attentive to patterns and trends.

Adaptability. Take on assignments and seek out experiences that demand flexibility. Push yourself to work in new environments with different kinds of people.

Creativity. You don’t necessarily need to come up with every great idea on your own. Sometimes it’s about establishing an environment that nurtures creativity in others.

Comfort with ambiguity. Managing ambiguity is about holding conflicting ideas in your head and dealing with competing priorities that feel equally important. Ask a lot of “what ifs” and “so whats,” and scrutinize matters from different perspectives.

Resilience. When things get tough, exhibit the resilience to recalibrate, regroup, and get input from others by asking, “Is there another path?”

Empathy. Developing your emotional intelligence gives you a deeper appreciation of the complex challenges others are working through—and helps you foster a more supportive and nurturing environment.

This tip is adapted from “8 Essential Qualities of Successful Leaders,” by Rebecca Knight.