Library spending exceeded budget: State audit shows savings severely depleted, funds overdrawn

A state audit found that the Greenwood Public Library had been spending more than it was supposed to, including about $759,000 more than what was budgeted last year.

The library board requested an audit after director Margaret Hamilton resigned amid financial difficulties last year. A new director and three new board members have since made a number of fixes, including about $480,000 in spending cuts.

Indiana State Board of Accounts auditors found that the library spent $5.1 million but brought in $4.2 million last year and used up much of its savings. They also found the library overdrew funds from a bank account, incurred late fees and paid sales tax that it wasn’t supposed to.

The library also incorrectly recorded where money went and improperly spent money that was supposed to go to capital projects, such as by paying utility bills and putting a refrigerator in the lounge, according to the audit.

Hamilton paid the library back for about $190 in late fees with her own money after meeting with auditors in July to discuss what they found. The audit said that government officials can be held personally responsible for any late charges that are racked up because they failed to pay bills on time.

Hamilton declined to comment.

Library director Cheryl Dobbs said library officials took corrective actions after the new administration took over late last year. For instance, the library has ensured it can pay all the bills on time so it doesn’t run up any more late fees.

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