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Pahrump Community Library
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Library Board Minutes for May 30, 2024 Budget Hearing

Pahrump Community Library District
Minutes of the May 30, 2024 Special Meeting
1.    Call to Order

Meeting called to order at 10:03 am.

2.    Members Roll Call

In Attendance: Secretary Kelly Green, Trustee Dee Mounts, Chair Shewalter

Also present: Senior Deputy District Attorney Michelle Nelson, Reference Department Head Kim Thomas, Children’s Department Head Alysha Wogee, Circulation Department Head Barbara Ferido, Director Anderson via Zoom

Absent: Trustee Matthew Morris, Vice Chair Runion

3.    Pledge of Allegiance
Trutsee Mounts led the Pledge of Allegiance prior to the Call to Order. Chair Shewalter then led a moment of silence for Pebbles.
4.    Trustee/Director/Liaison Comments: - This item is limited to announcements or topics/issues proposed for future workshops, committees, and agendas.
With no comments, item 4 is closed.
5.    Approval of May 30, 2024 Agenda (Non-action item).
Without objection, the May 30, 2024 agenda is approved.
6.    GENERAL PUBLIC COMMENT: * (Action will NOT be taken on matters considered during this period until specifically included on an agenda as an action item.)
With no public comment, item 6 is closed.
7.    For Possible Action: Public Hearing – Discussion and deliberation to adopt or reject the financial statement audit for fiscal year ending June 30, 2023 for the Pahrump Community Library District.
Daniel McArthur says the county has been slow doing audits. We have to do this today to get it filed with the state by tomorrow.
Mr. McArthur reads from his audit report. On page 2 of the audit report from, paragraph 2, he says the language means this is a clean audit report. There is a new accounting principle from the county concerning software subscriptions, which can be considered a capital asset. The library district doesn’t have any subscriptions that meet the requirement.
He reads from page 54, auditor’s comments. No noncompliance issues were found. Any disagreements with management must be reported in an audit. There were none.
He says a signed letter by library director is part of the audit. If another CPA needed to be consulted that would be part of the report, but that was not the case.
There were no errors found that were significant. Routine accounting adjustments took place at county level, not at the library level.
On page 12 there are 2 significant assets: cash and capital assets. Net pension liability is the largest liability. Government accounting standards require all local governments nationwide disclose unfunded pension liability. Nevada has the Public Employee Retirement System (PERS) - governments pay into that system for the retirement benefits of their employees, the library pays monthly and is current on those payments. The net pension liability is required to be listed by governmental accounting standards but is not money the library owes.
Chair Shewalter asks Mr. McArthur to define unfunded pension liability.
Mr. McArthur says the state pension system has an actuarial study is done every couple years, based on people in the retirement getting benefits versus the assets they have to pay them. It means there is a greater liability in the PERS system than assets to cover that liability so they use the term unfunded liability.
Chair Shewalter asks if the deficit is funds they are paying or projections of funds that they will pay? Mr. McArthur says it is projections. We are current and this is an estimate that changes from year to year.
Mr. McArthur refers to the table on page 30. Net pension liability went up from 2022-2023 almost 300% driven by 2 factors: the rate of return PERS gets on investments, and the projected life of person to be receiving PERS benefits. This is just an estimate.
Mr. McArthur goes over capital assets on page 29 which shows investments into the building and improvements.
Mr. McArthur goes over the general fund as found on page 45 of the audit report. Property taxes went up. The bulk of the expenditures increase is in the service and supply category. $500,000 was transferred to the bookmobile fund, but the library is still in good financial shape. He says if the library hadn’t moved the bookmobile money this would show a profit for the year of around $350,000.
He then goes over the library bookmobile fund as found on page 51 of the audit report. The money can be transferred back if the library changes course on the bookmobile project. The board set an $80,000/year limit on operating expenses. Mr. McArthur asks if there are questions.
Secretary Green has no questions.
Trustee Mounts says she was told petty cash cannot be in a checking account, and has to be cash in a box in a drawer, and asks if that is true? Mr. McArthur says that is not correct and it can be in a bank account. He says there is statutory guidance on that but the majority of entities he deals with have bank accounts for the petty cash, but that is not to say some don’t have a change drawer which you could have also. Trustee Mounts thanks him.
Chair Shewalter says he has no questions about the audit. His question is, we have 2 staff at a conference today; do we have a fund for covering reimbursement of those expenses? Mr. McArthur says yes. You would go to general fund, to the service and supply line item, that is where the reimbursement would come from. He says some may think the reimbursement comes from petty cash, but when accounting is done it comes from service and supply and that line item has multiple accounts in it. Chair Shewalter asks to clarify what the budget is for reimbursement, as the policy manual refers to the amount appropriated for such. Mr. McArthur says there is not a separate line item for that, but the board could further detail the line items of the $350,000 service and supply line item to only approve a certain amount for particular purposes. The audit takes place at the NRS level and would not show that much detail. He says the board could also request the auditor to add a page as a supplement to the report covering that information.
There is no public comment.
Chair Shewalter makes a motion to adopt the financial statement audit for fiscal year ending June 30, 2023 for the Pahrump Community Library District.

Trustee Mounts seconds the motion.
Chair Shewalter calls the question.
The measures passes 3-0 with 2 absent.
8.    Trustee/Director/Liaison Comments: This item is limited to announcements or topics/issues proposed for future workshops, committees, and agendas.
With no comments, item 8 is closed.
9.    Adjournment.
Meeting adjourned at 10:36 am.
 

ARCHIVED MINUTES

AGENDA FOR MAY 30, 2024 BUDGET HEARING

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