Mercer Area Library Inc.

“Members are all residents of mercer, and non-residents who pay a membership fee. Library cards are free to residents of the mercer area school district, including mercer borough and the townships of findley, jefferson, coolspring, and east lackawannock. Non-residents may pay an annual fee of $20 for a one year membership. The membership includes all members of the immediate family.”

“Members elect the board of directors.”

“Diane dawson, board treasurer, reviews the return before it is filed. All board members are made aware of the tax filing and have an opportunity to receive a copy of the tax return.”

“The personnel committee annually reviews the conflict of interest policy which is signed by all officers and directors. The library director monitors and updates the policy as required. Potential conflicts of interest involving officers, board members, committee members, and staff are identified to assure that the organization is treated fairly in all its business dealings.”

“Budget/finance committee reviews salaries by using comparable salaries in the library's district and statewide information, and then provides recommendations to the full board for its approval and/or modifications.”

“Form 1023 and form 990 are available for public inspection during regular business hours in the business office. The governing documents, conflict of interest policy, and financial statements are also available in the business office during regular business hours.”

“The organization operates on a cash basis, however, the prior year form 990 was prepared on the modified cash basis of accounting, reporting fixed assets on the balance sheet. The beginning net asset balance is being adjusted to reflect the removal of the fixed assets from the balance sheet for the current year form 990 to be in accordance with the cash basis of accounting. THE ORGANIZATION HAS NOT CHANGED ITS METHOD OF OVERSIGHT OF THE Review OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT.”

“The Library's financial statements are prepared on the cash basis of accounting whereby revenues are recognized when received rather than when promised or earned, and certain expenses and purchases of assets are recognized when cash is disbursed rather than when the obligation is incurred. An exception to this policy is the recognition of unrealized gains and losses on investments. THE CASH BASIS OF ACCOUNTING IS A COMPREHENSIVE BASIS OF ACCOUNTING OTHER THAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.”