Decide how to handle accounting

You basically have three options for keeping track of the income and expenses of this district. Not doing anything is NOT one of the options. This is public money so you must follow -or make sure the person you hire follows- all local, state, and federal laws when it comes to handling public money. We don't want to scare you, but this is serious business. So what are your options? When considering each of these proposals please keep in mind that whatever you choose needs to work with the special issues that come up in government agencies. You need to look for software and an accountant - if you go that route- that can handle the intricacies of governmental accounting.

Handle all accounting internally - a library district staff member or members will keep track of revenues, assets, liabilities, and expenses. 

Pros

• you are in control of everything
• you can create accounts, etc. that work well for your library (although there are limitations on this one)
• keeps everything in house
• after initial expenses this might be the cheapest option in terms of money outlay
• probably the cleanest in terms of the way the law is worded
• the city/county or department of administration can help you as you learn the ropes
• library staff are familiar with library expenses which hopefully leads to a streamlined process for library efficiency
• it is easier to correct mistakes

Cons

• there is a steep learning curve
• you are responsible for everything
• the initial software can be expensive
• you will need to set up an internal control system - in other words checks and balances for handling money, reporting it, etc.

Hire a private firm/individual - a private company will keep track of revenues, assets, liabilities, and expenses. 

Pros

• Someone with accounting experience (hopefully governmental accounting experience) is handling the accounting for the library. Library staff don't always have a lot of knowledge about accounting so it's nice to have someone who can hit the ground running.
• You can work with this person to develop a chart of accounts, etc. that works well for your library

Cons

• This can be an expensive option
• You still need to make sure that all of the proper reports are being filed
• You lose some control over how things are handled and will have to communicate regularly with this person to keep things on track

Contract with the city or county to handle accounting for the district - the city or county has a library fund and handles all of your revenues, expenses, etc.

Pros

• City or county have personnel with governmental accounting experience so you don't have the steep learning curve. They will most likely have experience with filing reports, etc.
• This will probably give you the smoothest transition since you are continuing to work with the city or county.

Cons

• You have to work with the chart of accounts that the city/county has for the library
• You don't have complete control over the accounting and reports and will have to communicate regularly with the city or county to make sure things are completed correctly.
• The success of going with the city/county is dependent upon your relations with those individuals. If personnel changes the arrangement might be altered, and you may be forced to use one of the other options.
• There might be a charge for using the city or county.