If an item is marked "Lost", but is not checked out to a patron, returning the item gives the following messages:

   Local use recorded

   Item was lost, now found.

   A refund has been applied to the borrowing patron's account.

   Not checked out.

The message "A refund has been applied to the borrowing patron's account." is confusing, because there is no patron associated with the item. -- No refund is *actually* being applied, but we're showing the message anyway.