Audit report, Fitzgerald-Ben Hill County Library, Fitzgerald, Georgia, year ended June 30, 1997

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AUDIT REPORT FITZGERALD-BEN HILL COUNTY LIBRARY
FITZGERALD, GEORGIA YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

FITZGERALD-BEN IllLL COUNTY LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXIllBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

18

2

FEDERAL

19

3 SCHEDULE OF EXPENDITURES

LOTIERY PROGRAM

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

FITZGERALD-BEN HILL COUNTY LIBRARY - TABLE OF CONTENTS -
SECTIONn FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 13, 1998

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Technical and Adult Education
and Director and Members of the Fitzgerald-Ben Hill County Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Fitzgerald-Ben Hill County Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Fitzgerald-Ben Hill County Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general-purpose fmancial statements referred to above present fairly, in all material respects, the financial position ofthe Fitzgerald-Ben Hill County Library as of June 30, 1997, and the results ofits operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general-purpose financial statements, during fiscal year 1997, the Library completed a comprehensive inventory of its general fixed assets for inclusion in the general-purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Fitzgerald-Ben Hill County Library taken as a whole. The accompanying combining statements (Exhibits G and H) and the fmancial schedules (Schedules 1 through 4), as listed in the table of contents, are
97ARL-43

presented for purposes of additional analysis and are not a required part of the general-purpose fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose fmancial statements and in our opinion, such information is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
t:L~
Claude L. Vickers State Auditor
CLV:ds 97ARL-43

FITZGERALD-BEN IllLL COUNTY LffiRARY

FITZGERALD-BEN HILL COUNTY LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1997

ASSETS
Cash and Cash Equivalents
Accounts Receivable
General Fixed Assets Equipment Inexhaustible Collections and Books

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE TRUST FUND

$ 10,598.26 $

3,666.05 $

60,721.90

578.00

Total Assets

$ 11,176.26 $

3,666.05 $===6::i:::!0,==:72=1=.9:::::0

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For Continuation of Federal Program For Endowment Corpus
Unreserved Designated for Object of Trust Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

233.65

$

233.65

$
$ 10,942,61 $ 10,942,61 $

3,666.05 $
0.00 3,666,05 $

50,000.00 10,721.90
60,721,90

$ 11,176.26 $

3,666.05 $===6:=l0,==:72=1=.9==0

The notes to the general purpose financial statements are an integral part of this statement. -2-

EXHIBIT "A"

ACCOUNT GROUP
GENERAL FIXED
ASSETS

TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30,1996

$

74,986.21 $

64,377.02

578.00

$

180,543.00

180,543.00

180,543.00

0.00

0.00

0.00

$

180,543.00 $ 256,107.21 $ 244,920.02

$

233.65

_____ $

$

233.65 $

7.;. ; 5;.;. 7.:.:;.0. ;. 1 7.;. ; 5;.;. 7.:.:;.0. ;. 1

$

180,543.00 $ 180,543.00 $ 180,543.00

3,666.05 50,000.00

50,000.00

10,721.90 10,942.61

7,733.58 5,886.43

$

180,543.00 $ 255,873.56 $ 244,163.01

$

180,543.00 $ 256,107.21 $ 244,920.02

-3-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "B"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30.1997

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 30.1997 JUNE 30. 1996

$ 117,426.74 $ 156.317.22

2,850.00 $ 8.000.00

$ 273,743.96 $ 10.850.00 $

120.276.74 $ 8,000.00
156.317.22
284.593.96 $

121,959.65 148.566.20 270.525.85

$ 76,085.90 $ 2,850.00 $

12,636.69

83,691.53

85,212.40

333.95

15.061.26

$ 272.687.78 $ $ 1,056.18 $

3.183.95 $ 7.666.05 $

78.935.90 $ 12,636.69 83,691.53 85,546.35 15,061.26
275.871.73 $
8,722.23 $

70,637.77 12.380.25 81,276.42 98.950.91 16,364.71 10,000.00
289.610.06
-19.084.21

$ 1,056.18 $ 7,666.05 $

5,886.43

0.00

4.000.00 -4.000.00

$

4.075.22

-4.075.22

$

0.00

8,722.23 $ 5,886.43
0.00

-19,084.21 32,704.22 -7.733.58

FUND BALANCE JUNE 30

$ 10.942.61 $ 3,666.05 $

14.608.66 $ = =.5.'1.O:88=6..4.:=.3

The notes to the general purpose financial statements are an integral part of this statement. -4-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "C"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE 30,1997

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1996
Adjustments Residual Equity Transfer

GENERAL FUND

BUDGET

ACTUAL

$ 116,348.74 $ 117,426.74 143,615.00 156,317.22
$ 259,963.74 $ 273,743.96

$ 66,648.88 $ 76,085.90 10,373,71 12,636.69 74,229.07 83,691.53 93,566.80 85,212.40 13,145.28 15,061.26

$ 257,963.74 $ 272,687,78

$ 2,000.00 $ 1,056.18

9,750.21

5,886.43

95,74

4,000,00

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 2,850,00 $

2,850.00 8,000.00

$ 2,850.00 $ 10,850.00

$

0.00 $ 2,850,00

333,95

$

0.00 $

$ 2,850.00 $

0,00

3,183.95 7,666.05
0.00

-4,000.00

FUND BALANCE JUNE 30,1997

$ 11,845.95 $ 10,942.61

$ 2,850.00 $ 3,666.05

The notes to the general purpose financial statements are an integral part of this statement. - 5-

FITZGERALD-BEN HILL COUNTY LIBRARY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1997

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current None Recorded Operating Income
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1 Residual Equity Transfer
FUND BALANCE JUNE 30

ENDOWMENT FUND
FITZGERALDBEN HILL COUNTY
LIBRARY FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30.1997 JUNE 30. 1996

$

0.00 $

0.00 $

0.00

$

0.00 $

0,00 $

0.00

$

0.00 $

0.00 $

0.00

2.988.32

2.988.32

$

2.988.32 $

2.988.32 $

0,00

57,733.58

57,733.58

50,000,00

7.733.58

$

60,721.90 $

60,721.90 $

5.-7.,;,,;7.33.5..8...

The notes to the general purpose financial statements are an integral part of this statement. -6-

FITZGERALD-BEN HILL COUNTY LIBRARY STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30.1997

EXHIBIT"E"

Cash Flows from Noncapital Financing Activities: Residual Equity Transfer
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase in Cash
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
FITZGERALDBEN HILL COUNTY
LIBRARY FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1997 JUNE 30.1996

$ _ _.;.:7,",-,73;.;3.;.;.5..;.8

$ _ _....;2=.9=8=8=.3=.2 $ _ _2=.,;;.;98:;.;8.;.;:.3.;;.2

$

2.988.32 $

2,988.32 $

57,733.58

57,733.58

7,733.58 50,000.00

Cash and Cash Equivalents - June 30

$

60.721.90 $

60.721.90 $

5...7....7.3..3.._5.8..

The notes to the general purpose financial statements are an integral part of this statement. -7-

THIS PAGE LEFT BLANK

FITZGERALD-BEN HILL COUNTY LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Fitzgerald-Ben Hill County Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departures from generally accepted accounting principles disclosed in these notes, the fmancial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library.
The Library Board consists of seven members; three members appointed by Ben Hill County Board of Commissioners and four members appointed by the Fitzgerald City Council. The Library Board is without authority to detennine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
While the Fitzgerald City Council appoints a majority ofthe Fitzgerald-Ben Hill County Library's Board, the City Council is neither able to impose its will upon the Library nor is there a fmancial benefitlburden relationship between the two boards as defined by Governmental Accounting Standards Board. The Fitzgerald-Ben Hill County Library is therefore considered to be a related organization of the City of Fitzgerald, Georgia.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available fmancial resources.
The general purpose financial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
- 9-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
NONEXPENDABLE TRUST FUND Fitzgerald-Ben Hill County Library Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide various needs ofthe Library.
ACCOUNT GROUP
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes equipment and inexhaustible collections and books. The land and building used in library operations are owned jointly by the City of Fitzgerald and the County of Ben Hill.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be fmanced from available spendable resources are reported as liabilities in the governmental funds.
Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.

- 10-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Fitzgerald-Ben Hill County Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been
- 11 -

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
GENERAL FIXED ASSETS
General fixed assets purchased, including equipment purchases, are recorded as expenditures in the various funds at the time of purchase and are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value as of the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend the useful lives of the assets is not capitalized. The values of inexhaustible collections and books at the Library are not readily determinable, therefore, the Library has not capitalized them. During fiscal year 1997, the Library completed a comprehensive inventory of its general fixed assets for inclusion in the general purpose financial statements.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. .
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

- 12-

FITZGERALD-BEN IDLL COUNTY LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal

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FITZGERALD-BEN HILL COUNTY LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS

Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZAnON OF DEPOSITS At June 30, 1997, the bank balances were $90,169.96. The bank balances were entirely covered by Federal depository insurance.

Note 3: GENERAL FIXED ASSETS

A summary of changes in the General Fixed Assets Account Group during the fiscal year are as follows:

Balance July 1, 1996 Retroactive Restatement of July 1, 1996 Balance Balance July 1, 1996 Restated Balance June 30, 1997

Equipment

$

0.00

180,543.00

$ 180,543.00

$ 180.543.00

Note 4: RISK MANAGEMENT

The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation.

The Library has obtained commercial insurance for risk of loss associated with torts and assets. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any ofthe past three years. For the current fiscal year, due to the costs of available coverage, the Library significantly reduced insurance coverage for risks associated with errors or omissions.

The Library has elected to self-insure for all losses related to natural disaster. In addition, the Library has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years.

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the past two years.

- 14-

FITZGERALD-BEN HILL COUNTY LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 4: RISK MANAGEMENT

The Library participates through the City of Fitzgerald in the Georgia Interlocal Risk Management Agency, a public entity risk pool organized on January 1, 1991 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premiwn to the City of Fitzgerald for its general insurance coverage.

The Library has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered
Director Bookkeeper
Nme5: CONTINGENTLIAB~ITIES

Amount
$ 1,750.00 $ 1,750.00

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall fmancial position.

Nore6: RETffiEMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRmUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State stature to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year
1997 1996 1995

Percentage Contributed
100% 100% 100%

Required Contribution
$ 17,196.46 $ 16,650.16 $ 12,962.95

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FITZGERALD-BEN HILL COUNTY LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

LOTIERY PROGRAM

FEDERAL

TOTALS

PROGRAM JUNE 30,1997 JUNE 30,1996

$

......$ 3,666.05 $

3,666.05 $

.0...0..0..

FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated
Total Fund Equity

$ $ -----=O..;.;:.O~O

3,666.05 $ 0.00

3,666.05 0.00 $

$

0..0...0.. $

3,666.05 $

3,666.05 $

-=O..;.;:.O~O
0..0...0..

See notes to the general purpose financial statements.

- 16-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30,1997

REVENUES State Funds Federal Funds Total Revenues
EXPENDITURES Current Program Services Administration Capital Outlay Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
Residual Equity Transfer
FUND BALANCE JUNE 30

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30,1996

$ 2,850.00

$

$ 8,000.00

$ 2,850.00 $ 8,000.00 $

2,850.00 $ 8,000.00
10,850.00 $

10,000.00 10,000.00

$ 2,850.00 $

$ 333.95

$ 2,850.00 $

333.95 $

$

0.00 $ 7,666.05 $

0.00

0.00

-4,000.00

2,850.00 333.95 $
3,183.95 $ 7,666.05 $
0.00 -4,000.00

1,116.46 10,000.00 11,116.46
-1,116.46 1,116.46

$ _ _.....0.;.,;;,.0.0.. $ 3,666.05 $

3,666.05 $

.....0..-.0.0..

See notes to the general purpose financial statements.

-17 -

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1997

SCHEDULE "1"

AGENCYIFUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 97,616.74 9,905.00 9,905.00
____$

$ 97,616.74 9,905,,00 9,905.00

-=2:.::,8:.::,50:::..;.::;00::...

2,850.00

$ 117,426.74 $======2:i:,8:=;5=0=.0=,=0 $ 120,276.74

See notes to the general purpose financial statements.

- 18-

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30,1997
AGENCY/FUNDING
GRANT Education, U. S, Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "2"

GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND

$

4,000.00

4,000.00

$

...;8.,.0.0-.0.,0,;,,0

See notes to the general purpose financial statements,

-19-

EXPENDITURES
Program Services Supplies Equipment

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF EXPENDITURES LOTTERY PROGRAM YEAR ENDED JUNE 30. 1997

SCHEDULE "3"

ASSISTIVE TECHNOLOGY

$

1,015.00

1,835.00

$

2,850.00

See notes to the general purpose financial statements.

- 20-

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30,1997

SCHEDULE "4"

PERSONNEL

Bailey, Chasteen, Griffin, Herndon, Hostetler, Hunter, Hunter, Lee, McKinley, Mooar, Owens, Rakestraw, Thomas, Thompson, Walker,

Julia E. Ginny Amity L. Camille B. Linda Sue Linda Joyce Margaret G. Richard T. WilliamD. Patricia G. Kenneth Karen C. Mary Ruth Amanda R. Bobbie Jean

POSITION
Director Student Intern Circulation Clerk Technical Services Bookkeeper Circulation Clerk Circulation Clerk Student Intern Student Intern Public Services Librarian Circulation Clerk Circulation Clerk Custodian Student Intern Library Clerk

SALARIES TRAVEL

$ 48,300.04 $ 2,007.56

859.13

910.01

7,411.45

207.69

14,788.00

50.44

4,236.97

13,182.58

16.39

2,524.76

1,869.14

35,882.40

539.50

34.00

13,312.12

2,000,65

258,88

13,182,58

$ 158,752.71 $ 2,821.58

See notes to the general purpose financial statements. - 21 -

SECTIONll FINDINGS AND QUESTIONED COSTS

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997

PRIOR YEAR

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Resolved Finding Control Number 6092-93-03

The audit report for the year ended June 30, 1996, noted that the management of the Fitzgerald-Ben Hill County Library had chosen not to maintain a General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Fitzgerald-Ben Hill County Library established a General Fixed Assets Account Group within the formal accounting records.

EXPENDlTURESILIABILITIESIDISBURSEMENTS Improper Expenditure Amount: $109.20 Finding Resolved Finding Control Number 6092-94-02

The audit report for the year ended June 30, 1994, disclosed improper expenditures in the amount of $109.20. These expenditures were made from the Library's General Fund as follows:

Employee Lunches Gifts

$ 83.70 25.50

$ 109.20

Expenditures of this nature are not considered to be a proper use of public library funds. During the year under review, these questioned costs were not resolved. However, in the subsequent period, the Library secured reimbursement for deposit into the Library's General Fund.

PRIORYEAWCURRENTYEAR

CASH AND CASH EQUIVALENTS Inadequate Separation of Duties Finding Control Number 6092-93-01

The audit report for the year ended June 30, 1996, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures. In the year under review, the following deficiencies were again noted in separation of employee duties relative to cash and cash equivalents:

- 1-

FITZGERALD-BEN HILL COUNTY LffiRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR/CURRENT YEAR CASH AND CASH EQUIVALENTS Inadequate Separation of Duties Finding Control Number 6092-93-01
(1) Cash receipts and check writing functions were not separated from maintenance of the General Ledger.
(2) The purchasing function was not separated from the check writing function. (3) Bank reconciliations were not reviewed by an individual independent of cash operations.
These deficiencies were the result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. EMPLOYEE COMPENSATION Accounting Deficiencies Finding Control Number 6092-94-01
The audit report for the year ended June 30, 1994, called attention to accounting deficiencies relative to employee compensation of the Fitzgerald-Ben Hill County Library. For the year under review, some improvement was noted; however, the following accounting deficiencies continued to exist relative to employee compensation:
(1) The Library Board did not approve the local salary supplement nor provide a written contract for the Director.
(2) Authorizations for payroll tax withholdings were not maintained. (3) Sick and personal leave records were not maintained in accordance with the Library's leave
policies. The Library Board should implement procedures to provide for and approve the Director's contract, including the local supplement. In addition, the Library should ensure authorization of all payroll tax withholdings are documented and sick and personal leave records should be maintained in accordance with Library policy.
-2-

&A
A~DO
,RI
Cb~~
F5 lq1b-q1
AUDIT REPORT FITZGERALD-BEN HILL COUNTY LIBRARY
FITZGERALD, GEORGIA YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

FITZGERALD-BEN IllLL COUNTY LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXIllBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

18

2

FEDERAL

19

3 SCHEDULE OF EXPENDITURES

LOTIERY PROGRAM

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

FITZGERALD-BEN HILL COUNTY LIBRARY - TABLE OF CONTENTS -
SECTIONn FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 13, 1998

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Technical and Adult Education
and Director and Members of the Fitzgerald-Ben Hill County Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Fitzgerald-Ben Hill County Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Fitzgerald-Ben Hill County Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general-purpose fmancial statements referred to above present fairly, in all material respects, the financial position ofthe Fitzgerald-Ben Hill County Library as of June 30, 1997, and the results ofits operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general-purpose financial statements, during fiscal year 1997, the Library completed a comprehensive inventory of its general fixed assets for inclusion in the general-purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Fitzgerald-Ben Hill County Library taken as a whole. The accompanying combining statements (Exhibits G and H) and the fmancial schedules (Schedules 1 through 4), as listed in the table of contents, are
97ARL-43

presented for purposes of additional analysis and are not a required part of the general-purpose fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose fmancial statements and in our opinion, such information is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
t:L~
Claude L. Vickers State Auditor
CLV:ds 97ARL-43

FITZGERALD-BEN IllLL COUNTY LffiRARY

FITZGERALD-BEN HILL COUNTY LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1997

ASSETS
Cash and Cash Equivalents
Accounts Receivable
General Fixed Assets Equipment Inexhaustible Collections and Books

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE TRUST FUND

$ 10,598.26 $

3,666.05 $

60,721.90

578.00

Total Assets

$ 11,176.26 $

3,666.05 $===6::i:::!0,==:72=1=.9:::::0

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For Continuation of Federal Program For Endowment Corpus
Unreserved Designated for Object of Trust Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

233.65

$

233.65

$
$ 10,942,61 $ 10,942,61 $

3,666.05 $
0.00 3,666,05 $

50,000.00 10,721.90
60,721,90

$ 11,176.26 $

3,666.05 $===6:=l0,==:72=1=.9==0

The notes to the general purpose financial statements are an integral part of this statement. -2-

EXHIBIT "A"

ACCOUNT GROUP
GENERAL FIXED
ASSETS

TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30,1996

$

74,986.21 $

64,377.02

578.00

$

180,543.00

180,543.00

180,543.00

0.00

0.00

0.00

$

180,543.00 $ 256,107.21 $ 244,920.02

$

233.65

_____ $

$

233.65 $

7.;. ; 5;.;. 7.:.:;.0. ;. 1 7.;. ; 5;.;. 7.:.:;.0. ;. 1

$

180,543.00 $ 180,543.00 $ 180,543.00

3,666.05 50,000.00

50,000.00

10,721.90 10,942.61

7,733.58 5,886.43

$

180,543.00 $ 255,873.56 $ 244,163.01

$

180,543.00 $ 256,107.21 $ 244,920.02

-3-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "B"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30.1997

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 30.1997 JUNE 30. 1996

$ 117,426.74 $ 156.317.22

2,850.00 $ 8.000.00

$ 273,743.96 $ 10.850.00 $

120.276.74 $ 8,000.00
156.317.22
284.593.96 $

121,959.65 148.566.20 270.525.85

$ 76,085.90 $ 2,850.00 $

12,636.69

83,691.53

85,212.40

333.95

15.061.26

$ 272.687.78 $ $ 1,056.18 $

3.183.95 $ 7.666.05 $

78.935.90 $ 12,636.69 83,691.53 85,546.35 15,061.26
275.871.73 $
8,722.23 $

70,637.77 12.380.25 81,276.42 98.950.91 16,364.71 10,000.00
289.610.06
-19.084.21

$ 1,056.18 $ 7,666.05 $

5,886.43

0.00

4.000.00 -4.000.00

$

4.075.22

-4.075.22

$

0.00

8,722.23 $ 5,886.43
0.00

-19,084.21 32,704.22 -7.733.58

FUND BALANCE JUNE 30

$ 10.942.61 $ 3,666.05 $

14.608.66 $ = =.5.'1.O:88=6..4.:=.3

The notes to the general purpose financial statements are an integral part of this statement. -4-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "C"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE 30.1997

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1996
Adjustments Residual Equity Transfer

GENERAL FUND

BUDGET

ACTUAL

$ 116,348.74 $ 117,426.74 143,615.00 156,317.22
$ 259,963.74 $ 273,743.96

$ 66,648.88 $ 76,085.90 10,373.71 12,636.69 74,229.07 83,691.53 93,566.80 85,212.40 13,145.28 15,061.26

$ 257,963.74 $ 272,687,78

$ 2,000.00 $ 1,056.18

9,750.21

5,886.43

95,74

4,000,00

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 2,850,00 $

2,850.00 8,000.00

$ 2,850.00 $ 10,850.00

$

0.00 $ 2,850,00

333,95

$

0.00 $

$ 2,850.00 $

0,00

3,183.95 7,666.05
0.00

-4,000.00

FUND BALANCE JUNE 30,1997

$ 11,845.95 $ 10,942.61

$ 2,850.00 $ 3,666.05

The notes to the general purpose financial statements are an integral part of this statement. - 5-

FITZGERALD-BEN HILL COUNTY LIBRARY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1997

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current None Recorded Operating Income
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1 Residual Equity Transfer
FUND BALANCE JUNE 30

ENDOWMENT FUND
FITZGERALDBEN HILL COUNTY
LIBRARY FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30.1997 JUNE 30. 1996

$

0.00 $

0.00 $

0.00

$

0.00 $

0,00 $

0.00

$

0.00 $

0.00 $

0.00

2.988.32

2.988.32

$

2.988.32 $

2.988.32 $

0,00

57,733.58

57,733.58

50,000,00

7.733.58

$

60,721.90 $

60,721.90 $

5.-7.,;,,;7.33.5..8...

The notes to the general purpose financial statements are an integral part of this statement. -6-

FITZGERALD-BEN HILL COUNTY LIBRARY STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30.1997

EXHIBIT"E"

Cash Flows from Noncapital Financing Activities: Residual Equity Transfer
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase in Cash
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
FITZGERALDBEN HILL COUNTY
LIBRARY FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1997 JUNE 30.1996

$ _ _.;.:7,",-,73;.;3.;.;.5..;.8

$ _ _....;2=.9=8=8=.3=.2 $ _ _2=.,;;.;98:;.;8.;.;:.3.;;.2

$

2.988.32 $

2,988.32 $

57,733.58

57,733.58

7,733.58 50,000.00

Cash and Cash Equivalents - June 30

$

60.721.90 $

60.721.90 $

5...7....7.3..3.._5.8..

The notes to the general purpose financial statements are an integral part of this statement. -7-

THIS PAGE LEFT BLANK

FITZGERALD-BEN HILL COUNTY LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Fitzgerald-Ben Hill County Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departures from generally accepted accounting principles disclosed in these notes, the fmancial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library.
The Library Board consists of seven members; three members appointed by Ben Hill County Board of Commissioners and four members appointed by the Fitzgerald City Council. The Library Board is without authority to detennine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
While the Fitzgerald City Council appoints a majority ofthe Fitzgerald-Ben Hill County Library's Board, the City Council is neither able to impose its will upon the Library nor is there a fmancial benefitlburden relationship between the two boards as defined by Governmental Accounting Standards Board. The Fitzgerald-Ben Hill County Library is therefore considered to be a related organization of the City of Fitzgerald, Georgia.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available fmancial resources.
The general purpose financial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
- 9-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
NONEXPENDABLE TRUST FUND Fitzgerald-Ben Hill County Library Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide various needs ofthe Library.
ACCOUNT GROUP
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes equipment and inexhaustible collections and books. The land and building used in library operations are owned jointly by the City of Fitzgerald and the County of Ben Hill.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be fmanced from available spendable resources are reported as liabilities in the governmental funds.
Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.

- 10-

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Fitzgerald-Ben Hill County Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been
- 11 -

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
GENERAL FIXED ASSETS
General fixed assets purchased, including equipment purchases, are recorded as expenditures in the various funds at the time of purchase and are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value as of the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend the useful lives of the assets is not capitalized. The values of inexhaustible collections and books at the Library are not readily determinable, therefore, the Library has not capitalized them. During fiscal year 1997, the Library completed a comprehensive inventory of its general fixed assets for inclusion in the general purpose financial statements.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. .
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

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FITZGERALD-BEN IDLL COUNTY LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal

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FITZGERALD-BEN HILL COUNTY LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS

Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZAnON OF DEPOSITS At June 30, 1997, the bank balances were $90,169.96. The bank balances were entirely covered by Federal depository insurance.

Note 3: GENERAL FIXED ASSETS

A summary of changes in the General Fixed Assets Account Group during the fiscal year are as follows:

Balance July 1, 1996 Retroactive Restatement of July 1, 1996 Balance Balance July 1, 1996 Restated Balance June 30, 1997

Equipment

$

0.00

180,543.00

$ 180,543.00

$ 180.543.00

Note 4: RISK MANAGEMENT

The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation.

The Library has obtained commercial insurance for risk of loss associated with torts and assets. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any ofthe past three years. For the current fiscal year, due to the costs of available coverage, the Library significantly reduced insurance coverage for risks associated with errors or omissions.

The Library has elected to self-insure for all losses related to natural disaster. In addition, the Library has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years.

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the past two years.

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FITZGERALD-BEN HILL COUNTY LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 4: RISK MANAGEMENT

The Library participates through the City of Fitzgerald in the Georgia Interlocal Risk Management Agency, a public entity risk pool organized on January 1, 1991 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premiwn to the City of Fitzgerald for its general insurance coverage.

The Library has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered
Director Bookkeeper
Nme5: CONTINGENTLIAB~ITIES

Amount
$ 1,750.00 $ 1,750.00

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall fmancial position.

Nore6: RETffiEMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRmUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State stature to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year
1997 1996 1995

Percentage Contributed
100% 100% 100%

Required Contribution
$ 17,196.46 $ 16,650.16 $ 12,962.95

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FITZGERALD-BEN HILL COUNTY LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

LOTIERY PROGRAM

FEDERAL

TOTALS

PROGRAM JUNE 30,1997 JUNE 30,1996

$

......$ 3,666.05 $

3,666.05 $

.0...0..0..

FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated
Total Fund Equity

$ $ -----=O..;.;:.O~O

3,666.05 $ 0.00

3,666.05 0.00 $

$

0..0...0.. $

3,666.05 $

3,666.05 $

-=O..;.;:.O~O
0..0...0..

See notes to the general purpose financial statements.

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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30,1997

REVENUES State Funds Federal Funds Total Revenues
EXPENDITURES Current Program Services Administration Capital Outlay Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
Residual Equity Transfer
FUND BALANCE JUNE 30

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30,1996

$ 2,850.00

$

$ 8,000.00

$ 2,850.00 $ 8,000.00 $

2,850.00 $ 8,000.00
10,850.00 $

10,000.00 10,000.00

$ 2,850.00 $

$ 333.95

$ 2,850.00 $

333.95 $

$

0.00 $ 7,666.05 $

0.00

0.00

-4,000.00

2,850.00 333.95 $
3,183.95 $ 7,666.05 $
0.00 -4,000.00

1,116.46 10,000.00 11,116.46
-1,116.46 1,116.46

$ _ _.....0.;.,;;,.0.0.. $ 3,666.05 $

3,666.05 $

.....0..-.0.0..

See notes to the general purpose financial statements.

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FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1997

SCHEDULE "1"

AGENCYIFUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 97,616.74 9,905.00 9,905.00
____$

$ 97,616.74 9,905,,00 9,905.00

-=2:.::,8:.::,50:::..;.::;00::...

2,850.00

$ 117,426.74 $======2:i:,8:=;5=0=.0=,=0 $ 120,276.74

See notes to the general purpose financial statements.

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FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30,1997
AGENCY/FUNDING
GRANT Education, U. S, Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "2"

GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND

$

4,000.00

4,000.00

$

...;8.,.0.0-.0.,0,;,,0

See notes to the general purpose financial statements,

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EXPENDITURES
Program Services Supplies Equipment

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF EXPENDITURES LOTTERY PROGRAM YEAR ENDED JUNE 30. 1997

SCHEDULE "3"

ASSISTIVE TECHNOLOGY

$

1,015.00

1,835.00

$

2,850.00

See notes to the general purpose financial statements.

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FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30,1997

SCHEDULE "4"

PERSONNEL

Bailey, Chasteen, Griffin, Herndon, Hostetler, Hunter, Hunter, Lee, McKinley, Mooar, Owens, Rakestraw, Thomas, Thompson, Walker,

Julia E. Ginny Amity L. Camille B. Linda Sue Linda Joyce Margaret G. Richard T. WilliamD. Patricia G. Kenneth Karen C. Mary Ruth Amanda R. Bobbie Jean

POSITION
Director Student Intern Circulation Clerk Technical Services Bookkeeper Circulation Clerk Circulation Clerk Student Intern Student Intern Public Services Librarian Circulation Clerk Circulation Clerk Custodian Student Intern Library Clerk

SALARIES TRAVEL

$ 48,300.04 $ 2,007.56

859.13

910.01

7,411.45

207.69

14,788.00

50.44

4,236.97

13,182.58

16.39

2,524.76

1,869.14

35,882.40

539.50

34.00

13,312.12

2,000,65

258,88

13,182,58

$ 158,752.71 $ 2,821.58

See notes to the general purpose financial statements. - 21 -

SECTIONll FINDINGS AND QUESTIONED COSTS

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997

PRIOR YEAR

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Resolved Finding Control Number 6092-93-03

The audit report for the year ended June 30, 1996, noted that the management of the Fitzgerald-Ben Hill County Library had chosen not to maintain a General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Fitzgerald-Ben Hill County Library established a General Fixed Assets Account Group within the formal accounting records.

EXPENDlTURESILIABILITIESIDISBURSEMENTS Improper Expenditure Amount: $109.20 Finding Resolved Finding Control Number 6092-94-02

The audit report for the year ended June 30, 1994, disclosed improper expenditures in the amount of $109.20. These expenditures were made from the Library's General Fund as follows:

Employee Lunches Gifts

$ 83.70 25.50

$ 109.20

Expenditures of this nature are not considered to be a proper use of public library funds. During the year under review, these questioned costs were not resolved. However, in the subsequent period, the Library secured reimbursement for deposit into the Library's General Fund.

PRIORYEAWCURRENTYEAR

CASH AND CASH EQUIVALENTS Inadequate Separation of Duties Finding Control Number 6092-93-01

The audit report for the year ended June 30, 1996, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures. In the year under review, the following deficiencies were again noted in separation of employee duties relative to cash and cash equivalents:

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FITZGERALD-BEN HILL COUNTY LffiRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR/CURRENT YEAR CASH AND CASH EQUIVALENTS Inadequate Separation of Duties Finding Control Number 6092-93-01
(1) Cash receipts and check writing functions were not separated from maintenance of the General Ledger.
(2) The purchasing function was not separated from the check writing function. (3) Bank reconciliations were not reviewed by an individual independent of cash operations.
These deficiencies were the result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. EMPLOYEE COMPENSATION Accounting Deficiencies Finding Control Number 6092-94-01
The audit report for the year ended June 30, 1994, called attention to accounting deficiencies relative to employee compensation of the Fitzgerald-Ben Hill County Library. For the year under review, some improvement was noted; however, the following accounting deficiencies continued to exist relative to employee compensation:
(1) The Library Board did not approve the local salary supplement nor provide a written contract for the Director.
(2) Authorizations for payroll tax withholdings were not maintained. (3) Sick and personal leave records were not maintained in accordance with the Library's leave
policies. The Library Board should implement procedures to provide for and approve the Director's contract, including the local supplement. In addition, the Library should ensure authorization of all payroll tax withholdings are documented and sick and personal leave records should be maintained in accordance with Library policy.
-2-