Fishy behavior with trust money at BPL

So after Bernie Margolis has his contract “un-renewed” the mayor of Boston is looking at seizing control of the moneys that make up the Boston Public Library’s trusts. This means that to spend money from the BPL trusts, the library has to get approval for each specific expenditure from City Hall. Margolis, still at work and annoyed at his ouster has ordered his staff to not send overdue fines collected to the city as was the usual procedure. It’s not totally clear from the article what the ordering of events is. At least one donor is thinking of asking for her money back.

Under current practice, the library trustees approve formation of the trust funds and transfer custody of the funds to City Hall. City Hall then forwards trust proceeds – dividends and other returns on investments – in a lump sum annually to the library.

Library trustees decide what to spend the money on, in accordance with donors’ instructions, and library staff members cut the checks. Library staff members also reconcile the books and file annual reports and tax returns for the board of trustees, which is operated as an independent, nonprofit corporation.

Signori, the city’s collector-treasurer, said her office will no longer be giving the library lump sums. Instead, she said, the trustees will now have to submit invoices to City Hall for processing and payment. If Signori or her staff members believe the expenses do not match donors’ intent or if there is another problem, she says she will raise an issue with trustees.

[thanks kate]

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