'\ .~Co ~\ ,lo~~ 's "Q1,Q'8 AUDIT REPORT FITZGERALD-BEN HILL COUNTY LffiRARY FITZGERALD, GEORGIA :I YEAR ENDED JUNE 30, 1998 l~ ./ STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 FITZGERALD-BEN HILL COUNTY LIBRARY - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHIBITS 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 ACTIJAL 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 8 SCHEDULES 1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 16 SCHEDULE OF REVENUE 2 STATE 17 3 FEDERAL 18 4 LOCAL 19 5 SCHEDULE OF SALARIES AND TRAVEL 20 SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 August 3, 1999 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe 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 ofthe Fitzgerald-Ben Hill County Library, as of and for the year ended June 30, 1998, 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 financial 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. hi our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Fitzgerald-Ben Hill County Library as ofJune 30, 1998, 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. The year 2000 supplementary information on Schedule "1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries ofmanagement regarding the methods ofmeasurement and presentation of the supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Fitzgerald- 98ARL-40 Ben Hill County Library is or will become year 2000 compliant, that the Library's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Fitzgerald-Ben Hill County Library does business are or will become year 2000 compliant. Our audit was perfonned for the purpose of fonning an opinion on the general purpose financial statements of the Fitzgerald-Ben Hill County Library taken as a whole. The accompanying financial schedules (Schedules 2 through 5), as listed in the table ofcontents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, 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 pennanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, RWH:jb 98ARL-40 Russell W. Hinton State Auditor FITZGERALD-BEN HILL COUNTY LIBRARY FITZGERALD-BEN HILL COUNTY LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1998 ASSETS Cash and Cash Equivalents Investments Accounts Receivable General Fixed Assets Equipment Inexhaustible Collection and Books GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND $ 7,946,29 $ 0.00 Total Assets $ 7,946.29 $=====0=.0:=0 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable 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 $ 3,088.58 .$ 4,857.71 $ 0.00 $ 4,857.71 $ 0.00 Total Liabilities and Fund Equity $ 7,946.29 $=====0=.0=0 The notes to the general purpose financial statements are an integral part of this statement. -2- EXHIBIT nAn FIDUCIARY FUND TYPE TRUST FUND $ 12,720.75 50,000.00 ACCOUNT GROUP GENERAL FIXED ASSETS TOTALS (Memorandum Only) JUNE 30,1998 JUNE 30,1997 $ 20,667.04 $ 24,986.21 50,000.00 50,000.00 578.00 $ 191,613.00 0.00 191,613.00 0.00 180,543.00 0.00 $ 62,720.75 $ 191,613.00 $ 262,280.04 $ 256,107.21 $ 3,088.58 $ _ _-=23=3~.6~5 $ 191,613.00 $ 191,613.00 $ 180,543.00 $ 50,000.00 50,000.00 3,666.05 50,000.00 12,720.75 0.00 12,720.75 4,857.71 10,721.90 10,942.61 $ 62,720.75 $ 191,613.00 $ 259,191.46 $ 255,873.56 $ 62,720.75 $ 191,613.00 $ 262,280.04 $ 256,107.21 -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, 1998 REVENUES State Funds Federal Funds Local 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 GENERAL FUND SPECIAL REVENUE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30,1998 JUNE 30,1997 $ 131,350.26 $ 151,970.48 13,887.60 $ 297,208.34 $ $ 3,563.68 131,350.26 $ 3,563.68 151,970.48 13,887.60 3,563.68 $ 300,772.02 $ 120,276.74 8,000.00 143,660.16 12,657.06 284,593.96 $ 81,620.11 16,152.07 90,379.82 93,064.97 $ 22,076.27 $ 303,293.24 $ $ -6,084.90 $ 10,942.61 $ 7,229.73 81,620.11 $ 16,152.07 90,379.82 100,294.70 22,076.27 7,229.73 $ 310,522.97 $ -3,666.05 $ -9,750.95 $ 3,666.05 14,608.66 78,935.90 12,636.69 83,691.53 85,546.35 15,061.26 275,871.73 8,722.23 5,886.43 FUND BALANCE JUNE 30 $ 4,857.71 $ 0.00 $ 4,857.71 $ ==1=4=,6..0.=8.:=6:.6 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. 1998 REVENUES State Funds Federal Funds Local 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, 1997 . Adjustments GENERAL FUND BUDGET ACTUAL $ 147,104.72 $ 131,350.26 151,205.40 151,970.48 13,887.60 $ 298,310,12 $ 297,208.34 $ 88,022.33 $ 11,425.79 113,403.45 85,794.79 12,500.00 81,620.11 16,152.07 90,379.82 93,064.97 22,076.27 $ 311,146.36 $ 303,293.24 $ -12,836.24 $ -6,084.90 10,364.61 10,942.61 312.88 SPECIAL REVENUE FUND BUDGET ACTUAL $ 0.00 $ 3,563.68 $ 0.00 $ 3,563.68 $ 0.00 $ 7,229.73 $ 0.00 $ 7,229.73 $ 0.00 $ -3,666.05 3,666.05 3,666.05 FUND BALANCE JUNE 30.1998 $ -2,158.75 $ 4,857.71 $ 3,666.05 $ ======0;,;,.0=0 The notes to the general purpose financial statements are an integral part of this statement. -5- FITZGERALD-BEN HILL COUNTY LIBRARY EXHIBIT "D" STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1998 OPERATING REVENUES None Recorded OPERATING EXPENSES Current Support Services General Administration Operating Income (Loss) NONOPERATING REVENUES Interest Earned Total Income FUND BALANCE JULY 1 ENDOWMENT FUND FITZGERALDBEN HILL COUNTY LIBRARY FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 1998 JUNE 30,1997 $ 0,00 $ 0.00 $ 0,00 $ 850.00 $ 850.00 $ 0,00 $ -850,00 $ -850,00 $ 0,00 2,848,85 2,848,85 2,988,32 $ 1,998,85 $ 1,998,85 $ 2,988,32 60,721,90 60,721,90 57,733.58 FUND BALANCE JUNE 30 $ 62,720,75 $ 62,720,75 $ ====6=0=,7=2=1=.9=0 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, 1998 EXHIBIT"E" Cash Flows from Operating Activities: Cash Paid for Special Library Programs 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 30,1998 JUNE 30,1997 $ -850.00 $ -850.00 $ 0.00 $ 2,848.85 $ 2,848.85 $ 2,988,32 $ 1,998.85 $ 1,998.85 $ 2,988.32 10,721.90 10,721.90 7,733.58 Cash and Cash Equivalents - June 30 $ 12,720.75 $ 12,720.75 $ ==1=0,=72=:1=.9=0 The notes to the general purpose financial statements are an integral part of this statement. -7- FITZGERALD-BEN HILL COUNTY LmRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1998 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. The financial statements of the 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 determine 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 and other 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 financial benefit/burden relationship between the two boards as defined by the 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 financial 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 financial resources. The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe 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: -8- FITZGERALD-BEN HILL COUNTY LIBRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1998 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: NONEXPENDABLETRUSTFUND 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 of the Library. ACCOUNT GROUP GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes land, buildings, equipment and inexhaustible collections.and books. The land and building used in library operations are owned jointly by the City ofFitzgerald 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 financed 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. -9- FITZGERALD-BEN HILL COUNTy LIBRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1998 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 determined 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 ofbudget 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 ofthis 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. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Participating -10 - FITZGERALD-BEN HILL COUNTy LIBRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1998 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions ofthe State of Georgia. GENERAL FIXED ASSETS General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. All purchased general fixed assets 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 nonnal maintenance and repairs that do not add to the value