Thank you for your questions. We will update the FAQ accordingly with the best knowledge we have at this time. Please note that many of your questions will require an attorney's opinion. Questions to date:

When does the law take effect? The law takes effect immediately. When you deliver your next annual report, you must identify any surplus over 20% of the last audited budget.

Do we have to do an annual report? Yes. It is the law

What happens if a library does not conform to the law? NJSL expects all boards of trustees to be in compliance with all applicable laws, and will not award any State Aid to those that are not. Please discuss with your attorney what other issues might be anticipated.

What if the Friends group just gave us a donation? Should we give it back? You could expend it in the operating budget. If it is not expended (or part of the operating budget to be expended), it appears that it could be considered part of surplus. FYI: It appears that libraries have no authority to give (or return) funds to any nonprofit. Please check with your attorney for a definitive answer.

My library is planning a book sale. Are these funds considered surplus? Any funding from any source may be considered surplus if they are not expended. One exception seems to be gifts given with restrictions. (FYI: If the Friends are not conducting the sale, it is generally considered appropriate to ask for a donation only. Libraries as public entities discard items according to law as the municipality does \x96 generally through auction or trash (libraries also donate materials and furnishings to other libraries and the Friend\x92s group). Please consult your attorney for a definitive answer on this subject.

How is PCSA handled? PCSA is a grant and may only be used for library purposes. It may be used in the operating budget, or for a capital project. It may not be considered surplus or given to the municipality.

Where may I find sample strategic plans? Sample plans may be found at: Moorestown Public Library (NJ): http://www.moorestown.nj.us/pubs/155/2165.pdf Westford Public Library (VT): http://www.westford.lib.vt.us/assets/FY08_FY12_LRP.pdf St. Joseph County Public Library (IN): http://www.libraryforlife.org/lrp/ New Rochelle Public Library (NY): http://www.nrpl.org/pages/NRPLLngRngPln2005-%202009.pdf Sonoma County Library (CA): http://www.sonomalibrary.org/stratplan0.html

What qualifies as a "Capital Account"?
The definition of \x93capital\x94 varies. For example, some libraries define capital as anything over $5,000, or with a life of at least 5 years. Please check with your auditor before considering making your own definition as your auditor will best be able to tell you if it is reasonable in accounting terms. NJSL considers the following capital items: NJAC15:21-12.3 \x93Capital expense\x94 means the funds appropriated to or required for furnishings, equipment (including computer hardware and software) and initial collections (print, non-print, electronic) for new buildings, building additions or building renovations; periodic major projects such as the upgrade of computer hardware and software and the replacement of roofs and heating, ventilation and air conditioning systems; and site acquisition, new buildings, and additions to or renovations of library buildings.
Other items generally considered capital items are architect/engineer\x92s fees for new construction or renovations.

Do you have a sample resolution to reserve funds for capital projects? Yes. See NJLA\x92s sample following:

_____Free Public Library RESOLUTION ESTABLISHING CAPITAL EXPENSE PLAN AND RESERVING FUNDS WHEREAS, the_________________________Library Board of Trustees (the \x93Board\x94 or the \x93Trustees\x94) has undertaken an analysis of the capital improvement needs of the ________ Public Library ( the \x93Library\x94); and WHEREAS, the Board has identified several needed capital improvement projects more specifically set forth on the attached Schedule 1 (the \x93Capital Projects\x94); and WHEREAS, the Trustees have determined that the Capital Projects will contribute to the provision of efficient and effective library services to the public, and WHEREAS, the Board has determined it is necessary to restrict certain capital funds to provide for future Capital Projects. NOW, THEREFORE, BE IT RESOLVED by the ___Library Board of Trustees that the amount of $____________ be and is hereby restricted for the completion of the Capital Projects.

,President Attached to:

, Secretary Meeting Date: ROLL CALL: Yeah Nay Prepared by the New Jersey Library Association April 2008

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