San Diego Public Library Foundation

“During the fourth quarter of the san diego public library foundation's ("foundation") fiscal year 2016, the foundation's board undertook a thorough internal review of the foundation's books and records. While this uncovered no instances of theft or embezzlement, it was determined that $1,000,000 of temporarily restricted funds had been erroneously used to pay unrestricted expenses of the foundation in prior years. Thus, an inter-fund receivable of the temporarily restricted fund and payable by the unrestricted fund were recorded in the restatement of the june 30, 2015 statement of financial position. The foundation is committed to operating in a manner in accordance with all third-party agreements, laws, and regulations including generally accepted accounting principles. It has taken steps to document and enforce its internal accounting policies and procedures and to address the internal control deficiencies identified in the fiscal year 2016 financial statement audit. As part of its compliance its charitable trust responsibilities, the foundation's management and audit committee reviewed chapter 5 - fiscal management: bookkeeping, accounting reporting requirements of the california attorney general's guide for charities to confirm our understanding of the recommended internal control policies and procedures. The foundation has strengthened controls in its accounting function, hired new personnel and implemented new review procedures in several areas but particularly in areas involving the delineation between restricted and unrestricted funds. The foundation expects to meet its obligations in a timely manner and has made significant progress in reducing the negative unrestricted net asset balance. In addition, the foundation carefully monitors its unrestricted cash balances.”

“The audit committee will review the 990 and send to the board of trustees for comments before the 990 is filed.”

“Each year board members sign a conflict of interest document covering the 990 fiscal year.”

“The finance committee works with management, using comparable data and facts to determine salaries.”

“The 990 and financial statements are submitted to guidestar for public view. Financial statments are also posted on sdplf's website. Sdplf uses the irs approved conflict of interest policy.”

“During the annual audit of the financial statements of the san diego public library foundation for the fiscal year ended june 30, 2016, several prior period adjustments were identified and recorded to properly state the june 30, 2015 net assets balance. The adjustments recorded the liabilities for two grants payable by the foundation and a receivable from a donor contribution pledge that had not been previously recorded.”