Elyria Library Foundation returns over $1.8M

Money goes back to Library System following audit

The Elyria Public Library System received about $1.8 million from the Elyria Public Library Foundation.

Ohio Auditor Dave Yost’s office determined the Library System had improperly transferred money to the Foundation for five years.

The Foundation was founded in 2010 as a legally separate nonprofit organization for the purpose of supporting the Library System, according to the auditor’s report.

In addition, the Foundation returned $369,963 it made from investments during the period from January 2010 to January 2017, the audit said.

The Library System had received various donations and contributions over the years as the beneficiary of certain estates, according to the audit..

On Feb. 22, the Library System was fully reimbursed by the Library Foundation, the audit said.

“We didn’t know why we were returning it, but they asked and we complied,” said Library System Director Lyn Crouse.

Crouse said she was confused on why the auditor came to this conclusion.

“We were shocked and confused,” she said. “We didn’t have a problem in the past years.”

The Library System reached out to the auditor’s office, but was not given an explanation on what the auditor concluded, Crouse said.

Before opening the Foundation, research was done and it was found the Library System could give funds to the Foundation, she said.

“We did the research and thought we could this,” Crouse said, “The Ohio Library Council also said it was legal when we began transferring money to the Foundation.”

The disbursement of the money was for the purpose of attaining a higher rate of return on investments, she said.

However, the Library System loses legal control over the monies when disbursed to the Foundation, the audit said.

“The Library (System) should retain custody of all donations and contributions received to ensure proper public purpose,” the audit said.

The money was used for library purposes such as the flood that happened at the Central Branch, Crouse said.

If the Library System receives any donations, it will now direct them to the Foundation, she said.