!"#$$#%&&'# )*+,-! ,-+.#./ +&#.0 .1)&.

$
BOARD ACTIONS & RECOMMENDATIONS
AIter reviewing the City`s audit report and conducting a public
noticed review oI the document, these are recommendations by the
Board oI the Public Library.
The Board set a Iramework Ior addressing the deIiciencies
mentioned in the City`s audit report and established an aggressive
yet realistic schedule to resolve the identiIied issues by the end oI
2014.
It is the Board`s responsibility to resolve the outstanding issues
identiIied in the audit report including governance, compliance and
accountability. It is imperative that we do this to keep the people
oI Chattanooga proud oI the great work that goes on at their Public
Library.
Recommendations:

The Board will establish a Governance Committee and a By-

Laws Committee. Areas oI responsibility will be approved at
the regular September board meeting.

The City Attorney`s OIIice will provide to the Board and

the Director within 30 days a comprehensive list oI all
outstanding policies and procedures that require action.

The Board is committed to being in compliance with all

policies and procedures. A set oI By-laws will be approved
prior to the end oI 2014.

The Board authorizes the Director to advertise Ior the

services oI an external auditor to review all policies and
procedures and provide an annual audit report to the Board.

The Board requests the Director to consider hiring a chieI

administrative oIIicer to oversee all personnel related
!
Iunctions and to ensure compliance with all policies and
procedures.

The Director will establish a new employee orientation

program and an employee manual that will outline the
policies and procedures oI the Public Library.

A new member Board manual will be produced and a

training schedule will be established Ior Board members.

The Director will establish an annual staII training session

that will include a review oI personnel policies, travel
policies, ethics training and other issues are required.

The Director will take the necessary steps to adopt the city
oI Chattanooga`s HR policies and procedures and bring this
item to the Board Ior action within 45 days.

A clear set oI policies relating to salary, beneIits, vacation

and leave will be published and reviewed with every
employee.

The Director will implement the Oracle system that is used

by the city oI Chattanooga into the operations oI the Public
Library. II training is required, it will be coordinated with the
City.

The Director will take appropriate disciplinary actions and

job perIormance reviews that demonstrate the expected
ethical perIormance by all employees.

The Library will publicly notice every regular monthly

meeting as well as special meetings on a monthly basis.
Notices will be posted on the Library website and on the
entrance doors to the Library.
PUBLIC LIBRARY BACKGROUND
As a Board, we believe the Public Library has made great strides
in updating its collections, its delivery oI services and in being
"
relevant to a diverse set oI customers that are interested in reading
researching and innovation. There is renewed interest in the
community Ior the Public Library.
At the same time, we recognize that a volunteer board relies on the
leadership oI the Public Library Director and senior staII Ior the
day-to-day operations and Ior setting the standards oI perIormance
Ior staII to provide excellent service to the community. The
Board realizes that service on a public board, even as a volunteer,
requires a willingness to serve in a policymaking and oversight
role. We take those roles seriously and are committed to
establishing additional checks and balances.
The Public Library director is the responsible oIIicer Ior the
operation oI the Iacility. The Director understands that the
responsibility Ior all operations resides with her and when issues
arise, she will take immediate and appropriate actions, keeping the
Board inIormed. She also understands that you lead by example
and that she sets the tone Ior the expected perIormance by all
employees oI the Library.
The Board also notes its disappointment in not being provided
more timely inIormation by the Director on the City audit
report. StaII was aware that an audit was underway. Both the
Board and the Director could have initiated several oI the audit
recommendations in the report and could have improved the
Board`s oversight.
Finally, the Board wants to acknowledge the important role that
the Friends oI the Library serve in support oI the ongoing activities
at the Public Library. We value their long-standing support and
want to build on the relationship.
------------------
In August 2011, the Chattanooga Public Library was created.
When the sales tax agreement between the city oI Chattanooga and
#
Hamilton County was not renewed, several jointly Iunded agencies
reverted to one oI the local government entities. For example,
Hamilton County government solely Iunded the Hamilton County
Health Department and the Public Library moved to the City oI
Chattanooga government. A state statute was passed to approve
change oI government control Ior the Public Library.
Board members, who previously were appointed by the County,
resigned Irom the board and legislation was passed in the
Tennessee General Assembly in March 2012 to increase the board
size Irom seven to eleven members. In March 2013, a special
meeting was called to transIer Iunds Irom the previous Library
entity to the new Chattanooga Public Library.
The newly created library board elected oIIicers in September
2011 and began consideration oI bylaws Ior the newly Iormed
entity. A new director Ior the Public Library was hired in January
2012 Iollowing a national search. In May 2012, as the City
Attorney`s OIIice was draIting by-laws, it was noted that the Board
needed to decide on a grievance and procedure policy and other
personnel policies prior to adopting by-laws. While this remains a
work in progress, the Board has Iollowed Roberts Rules oI Order
in conducting its business.
A number oI issues surIaced when the change oI government
control occurred and the Board and Director have worked with
the City`s Legal staII to better understand the Library`s status
as a city agency. There was no precedent in the State to Iollow
as the transition occurred. The Board is committed to being in
compliance with State laws and City ordinances and to do so
in a way that establishes sound policies and procedures Ior the
operation oI the Public Library.
$
CITY AUDIT FINDINGS AND BOARD RESPONSES
Audit: By-laws
Response: The Board has been working on this issue since May
2012. We have encountered a number oI events that slowed
down the process. A committee has been Iormed, including two
Board members and the Director. Examples oI by-laws have been
obtained Irom libraries across the country with a governing board.
DraIting oI by-laws should begin in two weeks with a goal to
complete beIore the end oI 2014.
Audit: Policies adopted by the Board
Response: The Board has adopted nine policies and agrees that
some legacy policies that carryover Irom the previous joint-
government Board will be adopted at a Iuture noticed Board
meeting. Policies adopted, in addition to those noted in the audit,
include Use oI the 4
th
Floor, City`s Ethics policy, revisions to
Travel Policy and additional Circulation Policies. There is a
recognition that more needs to be done to bring the Library in line
with the City.
Audit: Policies related to leave
Response: Adjustments have been made in reporting sick and
vacation leave and the records now are accurate. The Library uses
the City leave Iorms and in January 2014, there was a more Iormal
application oI FMLA beneIits. The Library will automate its leave
inIormation using the City`s Oracle system.
Audit: Paid consulting/ speaking engagements paid by Library
Response: Vacation should have been requested and used Ior
this purpose and the records have been adjusted. The Library
has implemented the City`s Ethic Policy and going Iorward, a
new employee orientation and manual will be available to all
employees.
%
Audit: Application of Leave Policies for Director & staff
Response: The Library Board chair approved a vacation Ior the
Director within the Iirst six months so she could move Irom Dallas
to Chattanooga. She was also granted permission by the Board
chair to take an annual Iamily retreat in December. The Director
gave both Mr. Hill (no relation) and Ms. Backus permission to take
more than Iive days leave during December. The Board believes
there needs to be clearer communication when these actions occur.
The Board agrees that the process being used at the Library to
record and review leave and other time-related issues is inadequate
and should be updated. The Board also agrees that the practice oI
using a vacation book should end and all vacation and other leave
should be recorded on the automated Oracle system. In addition,
all time sheets should be reviewed and approved by supervisors
and entered into the automated system. The use oI an automated
system should remove inconsistencies in posting leave and other
time oII. Periodic reports should be provided to the Director and
supervisors Ior review.
Audit: Travel policies
Response: The Board agrees that prior to January 2014, there were
inadequate travel policies and procedures. The Travel policy Ior
the Library allows Ior conIerence hotels to be reimbursed at 100
oI actual cost. The current travel policy should be reviewed so it is
consistent with City policy.
Audit: Overpayments for Travel
Response: The Board has directed that going Iorward all travel
will come Irom a single account instead oI the previous practice oI
splitting expenses between the Library and Friends oI the Library.
This should remove the Iailure to remember whether an expense
has been submitted Ior reimbursement to diIIerent entities. The
Board was unaware oI the overpayments and is disappointed that
&
any identiIied overpayments were not immediately repaid. The
Board was inIormed that $1,734,16 has been reimbursed to the
City.
Audit: Disposal of books and other materials
Response: The Board will approve a procedure to make donations
to the Friends oI the Library. While the Library complies with the
City inventory policies and participates in the quarterly inventory
process, the Board will Iormally adopt this policy. These records
are available through the City`s Iinance department.
Audit: Open Meetings notice
Response: Based on inIormation Irom the City Attorney`s
OIIice relating to publicly noticed meetings Ior City boards and
agencies, there is not a consistent policy. Some oI these groups
notice regular meetings annually while others provide monthly
notices. The Board directed the Director to notice monthly the
regular Board meetings. When a called or special meeting occurs,
it will be noticed within the terms oI the Open Meetings law. The
Board intends to Iully comply with State law. The Board agrees
meetings should be posted on the Library web page as well as on
the entrances to the Library.
Audit: Authorized signatures for disbursement of funds
Response: The Board at monthly meetings currently approves
Disbursements. The oIIice oI the City Attorney is determining
compliance with state law.
Audit: Next 2013 conference
Response: The audit report stated the conIerence was two
days, June 17 & 18. When the travel is overseas, additional
time is allowed Ior travel to and Irom the meeting. In this case
Irom Chattanooga to Aarhus, Denmark, there were three days
oI travel. The Board Ieels that going Iorward there has to be a
'
clear understanding oI how travel will be calculated so there is
appropriate reimbursement. The Director reimbursed the City Ior
the 5
th
day that was identiIied in the audit report.
(