16. The library board annually reviews the types of funds used by the library before beginning budget preparation. These include the general tax fund, grants, donations, endowments, and various types of miscellaneous income. Libraries could also utilize a separate employee benefit tax fund, and may create and use a legally established capital improvement fund.

17. The library director develops and presents a budget to the library board for discussion and approval. An adequately funded public library meets the following funding levels:

• Salaries and Benefits target — 65% of total operating expenditures from all income sources (excluding capital fund expenditures).
• Materials and Resources target — 12% of total operating expenditures from all income sources (excluding capital fund expenditures).
• Technology — Variable
• Library Operations — Variable

18. The library board presents the approved budget to the local governing body. This budget should be reflected on the municipal budgets as separate special funds rather than as a line item in the municipal budget. Municipal governments are charged with funding operational budgets created and recommended by local library boards.

19. The library board and library director review all portions of the local official budget related to the library, and copies are retained on file at the library.

20. All checks issued by the library require two signatures, the President and the Secretary of the Library Board. Any additional signatures are optional. The statutory basis for this is K.S.A. 10-803.

21. The library treasurer and director develop a monthly financial statement for the library board. This monthly financial statement and all financial motions are included in the library board minutes. The monthly financial statement includes:

• a list of current monthly expenditure
• year-to-date expenditure to budget comparison
• a list of current monthly income
• year-to-date income to budget comparison

22. The library board and library director comply with the audit requirements for their size of library budget. K.S.A. 75-1122 requires a library to have an audit performed by a licensed municipal accountant or certified public accountant when library “aggregate gross receipts” are in excess or $275,000 or general obligation or revenue bonds are in excess of $275,000. This statute applies to public libraries in cities of the first and second class and some third class cities, townships and library districts.