PPLD FY2024 Audited Financial Statements.pdf

POUGHKEEPSIE PUBLIC LIBRARY

DISTRICT, NEW YORK

Basic Financial Statements, Supplementary Information and

Independent Auditors’ Report

December 31, 2024

POUGHKEEPSIE PUBLIC LIBRARY DISTRICT, NEW YORK

Table of Contents

Page

Independent Auditors’ Report 1 - 3

Management’s Discussion and Analysis 4 - 11

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position 12

Statement of Activities 13

Fund Financial Statements:

Balance Sheet - Governmental Funds 14

Reconciliation of Balance Sheet - Governmental Funds to the

Statement of Net Position 15

Statement of Revenue, Expenditures and Changes in Fund

Balances - Governmental Funds 16

Reconciliation of the Statement of Revenue, Expenditures and

Changes in Fund Balances - Governmental Funds to the

Statement of Activities 17

Notes to Financial Statements 18 - 43

Required Supplemental Information:

Schedule of Revenue, Expenditures and Changes in Fund Balance -

Budget and Actual - General Fund 44

Schedule of District’s Proportionate Share of the Net Pension

Asset/Liability 45

Schedule of District’s Pension Contributions 46

Schedule of Changes in the District’s Total OPEB Liability and

Related Ratios 47

Other Supplementary Information - Project-Length Schedule - Capital

Projects Fund 48

INDEPENDENT AUDITORS’ REPORT

The Board of Trustees

Poughkeepsie Public Library District, New York:

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities and each major fund of the Poughkeepsie Public Library District, New York (the District), as of and for the year ended December 31, 2024, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District, as of

December 31, 2024, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’

Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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WILLIAMSVILLE GROUP

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplemental Information

Accounting principles generally accepted in the United States of America require that management’s discussion and analysis and the additional required supplemental information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The accompanying other supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Williamsville, New York

April 23, 2025

Management’s Discussion and Analysis

Introduction

Our discussion and analysis of the Poughkeepsie Public Library District, New York’s (the District) financial performance provides readers an overview of the District’s financial activities for the year ended December 31, 2024. It is a summary of the District’s current financial activities based on facts, decisions and conditions. It is also based on the District’s government-wide and fund-based financial

The management’s discussion and analysis is required supplementary information that should be read in conjunction with the District’s financial statements.

Financial Highlights

The District’s net position (deficit) decreased from $(3,742,898) at December 31, 2023 to

$(3,988,435) at December 31, 2024. The District’s total governmental funds reported an ending fund balance of $1,132,370 compared to last year’s balance of $1,066,823. The District’s total bonded debt decreased from the prior year due to principal payments of $920,000.

The Governmental Accounting Standards Board (GASB) Statement No. 68 pronouncement (which was implemented as of December 31, 2015) established accounting and financial reporting requirements associated with the District’s participation in the cost-sharing multiple employer pension plan administered by the New York State and Local Employees’ Retirement System (ERS or the System). Under the standards, cost-sharing employers are required to report in their government-wide financial statements a net pension asset/liability, pension expense and pension-related deferred inflows and outflows of resources based on their proportionate share of the collective amounts of all of the municipalities in the plan. At December 31, 2024, the District reported in its statement of net position a net pension liability of $1,895,455 for its proportionate share of the ERS net pension liability. At December 31, 2023, the District reported a net pension liability of $2,615,907. Total

System funding increased from 90.78% in 2023 to 93.88% in 2024. More detailed information about the District’s pension plan reporting in accordance with the provisions of GASB Statement No. 68, including amounts reported as pension expense and deferred inflows/outflows of resources, is presented in note 3(e) in the notes to financial statements.

Overview of the Financial Statements

The financial report begins with management’s discussion and analysis which gives an overview of the District’s financial performance as of the date of the financial statements. It is intended to be an introduction to the financial statements. The statement of net position and the statement of activities provide information about the District’s activities and a long-term view of its financial position. The fund-financial statements provide detail of the District’s operations.

Management’s Discussion and Analysis, Continued

The financial statements also include notes that explain some of the information in the statements with more detailed data. The notes are necessary for fair presentation of the financial statements.

Required supplementary information provides further explanation and support for the financial

Statements of Net Position and Statements of Activities

The statement of net position and the statement of activities provide information about the District as a whole and its activities. These statements include all assets, deferred outflow of resources, liabilities and deferred inflows of resources using the accrual method of accounting. The statement of net position includes all of the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. All of the current year’s revenue and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the District’s net position and how it has changed. Net position, the District’s assets and deferred outflows of resources minus its liabilities and deferred inflows of resources, is one way to measure the District’s financial position over time. To assess the

District’s overall financial health, other non-financial factors need to be considered, such as changes in the tax base and condition of or improvements to buildings.

Fund-Financial Statements

The fund-financial statements provide detailed information about the District’s major funds, not the

District as a whole. The District’s services are reported in governmental funds, which focus on how money flows into and out of these funds and the balances left at year-end. These funds are reported using the modified accrual basis of accounting. This provides a short-term view of the District’s general operations and services it provides. The District maintains five individual government funds

(General Fund, Capital Projects Fund, Special Revenue Fund, Permanent Fund and Debt Service

Fund). The reconciliation statements explain the relationship between the governmental funds (short term view) and the statement of net position and statement of activities (overall financial position).

Financial Analysis of the District as a Whole

These statements include all assets, deferred outflows, liabilities, and deferred inflows using the full accrual basis of accounting, showing all of the current year activity regardless of when cash was received or paid. The District’s net position (deficit) decreased by $245,537. A comparative analysis is presented on the next page.

Statements of Net Position - Governmental Activities

2024 2023 Change

Current and other assets 1,890,310$ 1,691,752$ 198,558

Capital assets, net 17,311,206 17,904,029 (592,823)

Total assets 19,201,516 19,595,781 (394,265)

Deferred outflows of resources 5,360,223 4,607,388 752,835

Current liabilities 796,024 694,079 101,945

Long-term liabilities 24,067,028 23,849,684 217,344

Total liabilities 24,863,052 24,543,763 319,289

Deferred inflows of resources 3,687,122 3,402,304 284,818

Net position (deficit):

Net investment in capital assets 7,555,515 6,712,233 843,282

Restricted 217,548 561,439 (343,891)

Unrestricted (deficit) (11,761,498) (11,016,570) (744,928)

Total net position (deficit) (3,988,435)$ (3,742,898) (245,537)

• Current and other assets increased $198,588 due to an overall increase in cash and equivalents.

• Capital assets, net decreased $592,823 as depreciation expense of $787,270 exceeded additions of $194,447 as presented in note 3(c).

• Deferred outflows of resources increased $752,835 from actuarily determined changes in the

District’s proportionate share of the ERS net pension liability and the total other postemployment benefits (OPEB) liability.

• Current liabilities increased $101,945 from increases in amounts due ERS of $82,759 and accrued liabilities of $47,579 which was offset by a decrease in accrued interest of $31,066.

• Long-term liabilities increased $217,344 primarily from an increase in the actuarily determined total OPEB liability of $1,923,376 which was offset by a decrease in the net pension liability of

$746,452 and principal payments on bonds of $920,000.

• Deferred inflows of resources increased $284,818 primarily from actuarily determined changes to the net pension liability which increased related deferred inflows by $861,320 which was offset by actuarially determined changes to the total OPEB liability which decreased related deferred inflows by $567,502.

Statements of Activities - Governmental Activities

Program revenue:

Charges for services 124,421$ 89,780 34,641

Operating grants and contributions 1,013,624 1,106,208 (92,584)

Capital grants 33,199 35,562 (2,363)

Total program revenue 1,171,244 1,231,550 (60,306)

General revenue:

Property taxes 9,396,344 8,489,461 906,883

Other tax items 340,005 205,424 134,581

Use of money and property 88,416 67,325 21,091

Total general revenue 9,824,765 8,762,210 1,062,555

Total revenue 10,996,009 9,993,760 1,002,249

Expenses:

Culture and recreation 10,904,499 11,137,240 (232,741)

Interest 337,047 399,588 (62,541)

Total expenses 11,241,546 11,536,828 (295,282)

Change in net position (245,537)$ (1,543,068) 1,297,531

• General revenue, including tax revenue, use of money and property, and state, county and federal sources, primarily supports the cost of providing services. Local property taxes constituted 85.5% of the District’s total revenue in 2024. In 2023 it was 84.9%.

• Culture and recreation expenses decreased $232,741 as net changes in the District’s proportionate share of the ERS net pension liability and the total OPEB liability were less than the prior year.

• Since the District must rely heavily on voter approval for funding levels, management of the resources is of paramount concern to the District’s administration and the voting public.

Library District’s Government Funds

The total assets and liabilities of the District changed from 2023 to 2024 as follows:

Assets:

General fund 1,391,956$ 1,051,327 340,629

Capital projects fund 35,280 35,266 14

Special revenue fund 491,997 1,028,243 (536,246)

Permanent funds 505,915 492,531 13,384

Debt service fund 455,239 153,347 301,892

Total assets 2,880,387 2,760,714 119,673

Liabilities:

General fund 757,940 954,929 (196,989)

Capital projects fund 58,098 58,098 -

Special revenue fund 620,191 667,151 (46,960)

Permanent fund 27,097 13,713 13,384

Debt service fund 284,691 - 284,691

Total liabilities 1,748,017 1,693,891 54,126

Fund balances (deficit):

General fund 634,016 96,398 537,618

Capital projects fund (22,818) (22,832) 14

Special revenue fund (128,194) 361,092 (489,286)

Permanent funds 478,818 478,818 -

Debt service fund 170,548 153,347 17,201

Total fund balances (deficit) 1,132,370 1,066,823 65,547

Total liabilities and fund balances

(deficit) 2,880,387$ 2,760,714 119,673

As shown in the table above, total assets and total liabilities increased. In the general fund, assets increased due to an increase in cash and equivalents. Assets in the special revenue fund decreased primarily from a decrease in interfund receivables. The general fund fund balance is $634,016 and approximately 6.4% of its final operating budget of $9,955,147, exclusive of debt service of

$1,341,676. The NYS Government Finance Officers Association and the NYS Comptroller’s Office recommend a two month budget reserve as insurance against unanticipated expenditures or revenue shortfalls. The District’s fund balance is less than the recommended two months of expenditures.

Efforts will be made in the coming years to rebuild it.

Total governmental funds revenue and expenditures changed from 2023 to 2024 as follows:

Revenue and other sources:

Real property taxes 9,396,344$ 8,489,461 906,883

Other tax items 340,005 205,424 134,581

Departmental income 27,643 24,674 2,969

Use of money and property 134,999 116,601 18,398

State aid 300,129 268,454 31,675

Local sources - County - 23,563 (23,563)

Gifts and donations 194,848 260,851 (66,003)

Miscellaneous local sources 602,041 604,732 (2,691)

Total revenue 10,996,009 9,993,760 1,002,249

Expenditures:

Personal services 4,974,244 4,592,426 381,818

Equipment 64,099 88,702 (24,603)

Contractual 2,168,268 2,108,985 59,283

Employee benefits 2,382,176 2,177,378 204,798

Debt service 1,341,675 1,338,400 3,275

Total expenditures 10,930,462 10,305,891 624,571

Excess (deficiency) of revenue over expenditures 65,547 (312,131) 377,678

Other financing sources (uses):

Interfund transfers in 999,685 103,144 896,541

Interfund transfers out (999,685) (103,144) (896,541)

Total other financing sources (uses) - - -

Change in fund balances 65,547$ (312,131) 377,678

Financial Analysis of the District’s Funds

General Fund Budgetary Highlights

The District’s budget is prepared in accordance with New York State statute and is based upon the modified accrual basis of accounting. The measurement focus is consistent with recognition of cash, assets and liabilities as well as those assets and liabilities that can be readily converted into cash within a reasonable period of time. This method utilizes cash receipts, disbursements and encumbrances. The only legally adopted budget in the District is the budget for the general fund.

The general fund reported a combined surplus of total revenue and other financing sources over total expenditures and other financing uses of $560,706. Total revenue and other financing sources increased $1,936,342 or 20.3% from the prior year. This was primarily from an increase in real property taxes of $906,883 and transfers in of $899,685.

Expenditures and other financing uses increased $621,427 or 7.0%. This was primarily caused by increased costs for personal services of $381,818 and employee benefits of $204,798.

Capital Asset and Debt Administration

Capital Assets

The District capitalized $194,447 of library materials in 2024. Equipment capitalized consisted of computer equipment and furniture. Depreciation expense for 2024 was $787,270. Additional detail is provided in note 3(c).

Debt

The District ended 2024 with no balance on its line of credit. The line of credit was closed February

3, 2025.

Notable Events of 2024

• The District continues to benefit from the generosity of the voters as they continue to support the annual budget referendum by a comfortable margin and private donors continue to recognize the value of public library services through their continued donations.

• As indicated in 2023, the increase usage of digital content continues to grow. With that, however, the use of physical audio/visual materials has slipped. The use of traditional print materials is stable with the expectation of modest growth.

• Use of the newest branch library, the Sadie Peterson African Roots Branch Library (the

Branch Library), continues to be low. The construction referred to in 2023 has been completed by the Family Partnership Center (the Center), the building in which the Branch Library is located, continues to suffer from image problems. This is an ongoing project in 2025, and the

District is working with the Center on improving the image.

• Collaborations continued with the Bardavon, the Jewish Federation of Dutchess County, the local school district (Poughkeepsie City School District, in particular), Dutchess County, and local non-profits.

• The District hosted its fourth annual book festival at Dutchess Community College in March

2024. Over 1,500 people attended the event which featured 100 authors.

Economic Factors Bearing on the Library District’s Future

The District’s management considers many factors when setting the 2026 budget. Such factors include:

• The budget and funding processes need to address how to best fund unexpected increases in contractual benefits offered to staff, especially health insurance and retirement costs.

• The workforce continues to change as more staff reach retirement age. Onboarding, training, and retaining new staff continues to be a challenge for the organization.

• The District is not immune to the pressures of inflation. We were especially hard hit in utility expenses in 2024 and expect that to be a trend in 2025 and beyond.

• Use of endowed funds will likely be impacted by both political and economic winds.

Contacting the District’s Financial Management

This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the District’s finances and to show the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Administrative Office, Poughkeepsie Public Library District, New York, 93 Market Street, Poughkeepsie, New York 12601.

Governmental

Activities

Assets:

Cash and equivalents 1,369,518$

Investments 489,303

Accounts receivable 31,489

Capital assets:

Not being depreciated 1,341,009

Being depreciated, net 15,970,197

Total assets 19,201,516

Deferred outflows of resources 5,360,223

Liabilities:

Accounts payable 10,161

Accrued liabilities 264,966

Due to retirement systems 482,813

Accrued interest payable 38,084

Non-current liabilities:

Due within one year 960,000

Due in more than one year 23,107,028

Total liabilities 24,863,052

Deferred inflows of resources 3,687,122

Net position (deficit):

Net investment in capital assets 7,555,515

Restricted 217,548

Unrestricted (deficit) (11,761,498)

Total net position (deficit) (3,988,435)$

See accompanying notes to financial statements.

POUGHKEEPSIE PUBLIC LIBRARY DISTRICT, NEW YORK

Statement of Net Position

Net (Expense)

Operating Capital Revenue and

Charges for Grants and Grants and Changes in

Functions/Programs Expenses Services Contributions Contributions Net Position

Governmental activities:

Culture and recreation 10,904,499$ 124,421 1,013,624 15,998 (9,750,456)

Interest 337,047 - - 17,201 (319,846)

Total governmental activities 11,241,546$ 124,421 1,013,624 33,199 (10,070,302)

General revenue:

Real property taxes 9,396,344

Other tax items 340,005

Unrestricted use of money and property 88,416

Total general revenue 9,824,765

Change in net position (245,537)

Net position (deficit) at beginning of year (3,742,898)

Net position (deficit) at end of year (3,988,435)$

See accompanying notes to financial statements.

POUGHKEEPSIE PUBLIC LIBRARY DISTRICT, NEW YORK

Statement of Activities

Year ended December 31, 2024

Total

Capital Special Debt Governmental

General Projects Revenue Permanent Service Funds

Assets:

Cash and equivalents 866,489$ 644 456,645 - 45,740 1,369,518

Investments - - - 489,303 - 489,303

Receivables:

Accounts 31,489 - - - - 31,489

Due from other funds 493,978 34,636 35,352 16,612 409,499 990,077

Total receivables 525,467 34,636 35,352 16,612 409,499 1,021,566

Total assets 1,391,956$ 35,280 491,997 505,915 455,239 2,880,387

Liabilities and fund balances:

Liabilities:

Accounts payable 10,161 - - - - 10,161

Accrued liabilities 264,966 - - - - 264,966

Due to retirement systems 482,813 - - - - 482,813

Due to other funds - 58,098 620,191 27,097 284,691 990,077

Total liabilities 757,940 58,098 620,191 27,097 284,691 1,748,017

Fund balances (deficit):

Nonspendable - - - 478,818 - 478,818

Restricted 47,000 - - - 170,548 217,548

Assigned 951,488 - - - - 951,488

Unassigned (deficit) (364,472) (22,818) (128,194) - - (515,484)

Total fund balances (deficit) 634,016 (22,818) (128,194) 478,818 170,548 1,132,370

Total liabilities and fund balances (deficit) 1,391,956$ 35,280 491,997 505,915 455,239 2,880,387

See accompanying notes to financial statements.

POUGHKEEPSIE PUBLIC LIBRARY DISTRICT

Balance Sheet - Governmental Funds

Total governmental fund balances 1,132,370$

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 17,311,206

Governmental funds do not report the effect of assets or liabilities related to pension obligations whereas these amounts are deferred and amortized in the statement of activities.

Deferred outflows of resources - pensions 1,965,676

Deferred inflows of resources - pensions (964,194)

Deferred outflows of resources - OPEB 3,356,187

Deferred inflows of resources - OPEB (2,722,928)

Deferred amounts on refunding bonds 38,360

Long-term liabilities that are not due and payable in the current period are not reported in the funds.

Accrued interest payable (38,084)

Bonds payable (9,964,599)

Compensated absences (626,347)

Net pension liability (1,869,455)

Total OPEB liability (11,606,627)

Net position - governmental funds (3,988,435)$

See accompanying notes to financial statements.

POUGHKEEPSIE PUBLIC LIBRARY DISTRICT

Reconciliation of Balance Sheet - Governmental Funds to the

December 31, 2024

Statement of Net Position

Total

Capital Special Governmental

General Projects Revenue Permanent Debt Service Funds

Revenue:

Real property taxes 9,396,344$ - - - - 9,396,344

Other tax items 340,005 - - - - 340,005

Departmental income 27,643 - - - - 27,643

Use of money and property 88,417 14 29,367 - 17,201 134,999

State aid 300,129 - - - - 300,129

Gifts and donations 194,848 - - - - 194,848

Miscellaneous 121,009 - 481,032 - - 602,041

Total revenue 10,468,395 14 510,399 - 17,201 10,996,009

Expenditures:

Current:

Personal services 4,974,244 - - - - 4,974,244

Equipment 64,099 - - - - 64,099

Contractual 2,168,268 - - - - 2,168,268

Employee benefits 2,382,176 - - - - 2,382,176

Debt service:

Principal 920,000 - - - - 920,000

Interest 421,675 - - - - 421,675

Total expenditures 10,930,462 - - - - 10,930,462

Excess (deficiency) of revenue over expenditures (462,067) 14 510,399 - 17,201 65,547

Other financing sources (uses):

Transfers in 999,685 - - - - 999,685

Transfers out - - (999,685) - - (999,685)

Total other financing sources (uses) 999,685 - (999,685) - - -

Net change in fund balances (deficit) 537,618 14 (489,286) - 17,201 65,547

Fund balances (deficit) at beginning of year 96,398 (22,832) 361,092 478,818 153,347 1,066,823

Fund balances (deficit) at end of year 634,016$ (22,818) (128,194) 478,818 170,548 1,132,370

See accompanying notes to financial statements.

POUGHKEEPSIE PUBLIC LIBRARY DISTRICT

Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds

Net change in fund balances 65,547$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay expenditures 194,447$

Depreciation expense (787,270) (592,823)

Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Principal paid on bonds 920,000

Amortization of loss on refunding bonds and issuance premium 59,696

Principal paid on deferred payment plan 413 980,109

Changes in deferred outflows of resources and inflows of resources related to long-term liabilities are recognized in the statement of activities but not in the governmental funds.

Deferred outflows of resources - pensions (158,633)

Deferred inflows of resources - pensions (861,320)

Deferred outflows of resources - OPEB 917,602

Deferred inflows of resources - OPEB 576,502

Deferred amounts on refunding bonds (6,134) 468,017

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Accrued interest 31,066

Compensated absences (20,529)

Net pension liability 746,452

Total OPEB liability (1,923,376) (1,166,387)

Change in net position - governmental activities (245,537)$

See accompanying notes to financial statements.

POUGHKEEPSIE PUBLIC LIBRARY DISTRICT

Reconciliation of the Statement of Revenue, Expenditures and

Changes in Fund Balances - Governmental Funds to the Statement of Activities

Notes to Financial Statements

(1) Summary of Significant Accounting Policies

The Poughkeepsie Public Library District, New York (the District) was established in 1987 and operates in accordance with the applicable laws of the State of New York (the State). The

Board of Trustees (the Board) is the legislative body responsible for overall operation of the

District and is elected by the voters of the District. The Executive Director serves as the chief executive officer.

The accounting policies of the District conform to generally accepted accounting principles

(GAAP) as applicable to governmental units and the Uniform System of Accounts as prescribed by the State. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the District’s more significant accounting policies:

(a) Financial Reporting Entity

The financial reporting entity consists of (a) the primary government, which is the District,

(b) organizations for which the District is financially accountable and (c) other organizations for which the nature and significance of their relationship with the District are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete as set forth by GASB.

In evaluating how to define the District, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the District’s reporting entity was made by applying the criteria set forth by GASB including legal standing, fiscal dependency and financial accountability. Based upon the application of these criteria, there are no other entities which would be included in the financial statements.

(b) Government-Wide Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all non-fiduciary activities of the District as a whole. For the most part, the effect of interfund activity has been removed from these statements, except for interfund services provided and used.

The statement of net position presents the financial position of the District at the end of its fiscal year. The statement of activities demonstrates the degree to which direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenue includes

(1) charges to customers or applicants who purchase, use or directly benefit from goods or services, or privileges provided by a given function or segment, (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment and (3) interest earned on grants that is required to be used to support a particular program. Other items not identified as program revenue is reported as general revenue. The District does not allocate indirect expenses to functions in the statement of activities.

Notes to Financial Statements, Continued

(1) Summary of Significant Accounting Policies, Continued

(c) Fund Financial Statements

The accounts of the District are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts which comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance, revenue and expenditures. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. The District maintains the minimum number of funds consistent with legal and managerial requirements. The focus of governmental fund financial statements is on major funds as that term is defined in professional pronouncements. Each major fund is to be presented in a separate column, with non-major funds, if any, aggregated and presented in a single column. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements’ governmental activities column, a reconciliation is presented on the pages following, which briefly explain the adjustments necessary to transform the fund based financial statements into the government-wide presentation.

Fund Categories

Governmental Funds - Governmental funds are those through which most general government functions are financed. The acquisition, use and balances of expendable financial resources and the related liabilities are accounted for through governmental funds. The following represents the District’s major governmental funds:

General Fund - The general fund constitutes the primary operating fund of the District and is used to account for and report all financial resources not accounted for and reported in another fund.

Capital Projects Fund - The capital projects fund is used to account for and report financial resources that are restricted, committed or assigned for capital outlays, including the acquisition or construction of major capital facilities and other capital assets.

Special Revenue Fund - The special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted, committed or assigned to expenditures for specified purposes other than debt service or capital projects.

Permanent Fund - The permanent fund is used to account for assets that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the District’s programs. Investment income earned on these funds is reported in the special revenue fund.

Debt Service Fund - The debt service fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for principal and interest, and for financial resources that are being accumulated for principal and interest maturing in future years.

(d) Measurement Focus, Basis of Accounting and Financial Statement Presentation

The accounting and financial reporting treatment is determined by the measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenue is recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recognized as soon as it is both measurable and available. Revenue is considered to be available when it is collectible within the current period or soon enough thereafter to pay liabilities of the current period. Property taxes are considered to be available if collected within sixty days of the fiscal year end. If expenditures are the prime factor for determining eligibility, revenue from Federal and State grants are recognized as revenue when the expenditure is made. A ninety day availability period is generally used for revenue recognition for most other governmental fund revenue. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, the net pension asset/liability and total

OPEB liability are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.

(e) Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund

Balances

Cash and Equivalents, Investments and Risk Disclosure

Cash and Equivalents - Cash and equivalents consist of funds deposited in demand deposit accounts, time deposit accounts and short-term investments with original maturities of less than three months from the date of acquisition.

The District’s deposits and investment policies are governed by State statutes. The District has adopted its own written investment policy which provides for the deposit of funds in FDIC insured commercial banks or trust companies located within the State. The

District is authorized to use demand deposit accounts, time deposit accounts and certificates of deposit.

Balances, Continued

Cash and Equivalents, Investments and Risk Disclosure, Continued

Collateral is required for demand deposit accounts, time deposit accounts and certificates of deposit at 100% of all deposits not covered by Federal deposit insurance. The

District has entered into custodial agreements with the various banks which hold their deposits. These agreements authorize the obligations that may be pledged as collateral. Such obligations include, among other instruments, obligations of the

United States and its agencies and obligations of the State and its municipal and school district subdivisions.

Investments - Permissible investments include obligations of the U.S. Treasury, U.S.

Agencies, repurchase agreements and obligations of New York State or its political subdivisions.

The District follows the provisions of GASB Statement No. 72 - “Fair Value

Measurements and Application,” which defines fair value and establishes a fair value hierarchy organized into three levels based upon the input assumptions used in pricing assets. Level 1 inputs have the highest reliability and are related to assets with unadjusted quoted prices in active markets. Level 2 inputs relate to assets with other than quoted prices in active markets which may include quoted prices for similar assets or liabilities or other inputs which can be corroborated by observable market data.

Level 3 inputs are unobservable inputs and are used to the extent that observable inputs do not exist.

Risk Disclosure

Interest Rate Risk - Interest rate risk is the risk that the government will incur losses in fair value caused by changing interest rates. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from changing interest rates.

Custodial Credit Risk - Custodial risk is the risk that in the event of a bank failure, the

Library’s deposits may not be returned to it. GASB Statement No. 40 - “Deposits and

Investments Risk Disclosures - an amendment of GASB Statement No. 3”, directs that deposits be disclosed as exposed to custodial risk if they are not covered by depository insurance and the deposits are either uncollateralized, collateralized by securities held by the pledging financial institution or collateralized by securities held by the pledging financial institution’s trust department but not in the District’s name. The District’s aggregate bank balances that were not covered by depository insurance were not exposed to custodial risk at December 31, 2024.

Credit Risk - Credit risk is the risk that an issuer or other counterparty will not fulfill its specific obligation even without the entity’s complete failure. The District does not have a formal credit risk policy other than restrictions to obligations allowable under

General Municipal Law of the State of New York (NYS GML).

Risk Disclosure, Continued

Concentration of Credit Risk - Concentration of credit risk is the risk attributed to the magnitude of a government’s investments in a single issuer. The District’s investment policy limits the amount on deposit at each of its banking institutions.

Taxes Receivable - Real property taxes attach as an enforceable lien on real property as of

January 1st and are levied and payable by April 1st. The City of Poughkeepsie, New York

(the City) and the Town of Poughkeepsie, New York (the Town) are responsible for the billing and collection of the taxes. The City and the Town guarantee the full payment of the District’s warrant and assumes responsibility for uncollected taxes.

Accounts Receivables - Accounts receivables include amounts due from other governments and individuals for services provided by the District. Receivables are recorded and revenues recognized as earned or as specific program expenditures/expenses are incurred.

Allowances are recorded when appropriate.

Due From/To Other Funds - During the course of its operations, the District has numerous transactions between funds to finance operations, provide services and construct assets.

To the extent that certain transactions between funds had not been paid or received as of

December 31, 2024, balances of interfund amounts receivable or payable have been recorded in the fund financial statements.

Inventory - There are no inventory values presented in the balance sheets of the respective funds of the District. Purchases of inventoriable items are recorded as expenditures at the

Capital Assets - Capital assets, which include property, plant and equipment, are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the District as assets with an initial cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

Major outlays for capital assets and improvements are capitalized as projects are constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives is not capitalized.

The costs associated with the acquisition or construction of capital assets are shown as expenditures in the governmental fund financial statements. Capital assets are not shown on the governmental fund balance sheets.

Land and construction-in-progress are not depreciated. Property, plant and equipment of the District are depreciated using the straight line method over the following estimated useful lives.

Class Life in Years

Buildings and improvements 50

Equipment 5 - 25

Library books 5

Deferred Outflows/Inflows of Resources - In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources

(expense/expenditure) until then.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time.

Deferred outflows and inflows of resources have been reported on the government-wide statement of net position for the following:

Governmental Activities

Deferred Deferred

Outflows of Inflows of

Resources Resources

Deferred loss on refunding bonds $ 38,360 -

Net pension liability 1,965,676 964,194

Total OPEB liability 3,356,187 2,722,928

$ 5,360,223 3,687,122

The District reported deferred outflows of resources for a deferred loss on refunding bonds.

This amount results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is being deferred and amortized over the shorter of the life of the refunded or refunding debt.

The District reports deferred outflows of resources and deferred inflows of resources in relation to the net pension liability and total OPEB liability. These amounts are detailed in note 3(e).

Long-Term Liabilities - In the government-wide financial statements, long-term debt and other long term liabilities are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expended as incurred.

In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as capital projects fund expenditures.

Compensated Absences - The collective bargaining agreements provide for the payment of accumulated vacation and sick leave upon separation from service. The liability for such accumulated time is reflected in the government-wide statement of net position as current and long term liabilities. A liability for these amounts is reported in the governmental funds only if the liability has matured through employee resignation or retirement. The liability for compensated absences includes salary related payments, where applicable.

Net Position - Net position represents the difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources. Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation adopted by the District or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Net position on the statement of net position includes, net investment in capital assets, restricted for permanent fund and debt service. The remaining balance is classified as unrestricted.

Fund Balance - Generally, fund balance represents the difference between current assets and deferred outflows of resources and current liabilities and deferred inflows of resources.