Fitzgerald-Ben Hill County Library, Fitzgerald, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
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FITZGERALD-BEN HILL COUNTY LIBRARY
FtnGERALD, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Russell W. Hinton State Auditor

FITZGERALD-BEN HILL COUNfY LIBRARY -TABLE OF CONTENTS-

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

B

STATEMENT OF REVENUES, EXPENDTIURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

STATEMENT OF REVENUES, EXPENDTIURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

2

LOCAL

3 SCHEDULE OF SALARIES AND TRAVEL

Page
2 4 5 6 7 9
18 19
20

FINANCIAL

RussELL W. HtNTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 2, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
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 ofand for the year ended June 30, 2001, as listed in the table ofcontents. 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 auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free ofmaterial 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.
In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Fitzgerald-Ben Hill County Library as of June 30, 2001, and the results ofits operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

2001ARL-40

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Fitzgerald-Ben Hill County Library taken as a whole. The accompanying financial schedules (Schedules 1 through 3), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Fitzgerald-Ben Hill County Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
~:<ti.k Respectfully submitted,
Russell W. Hinton State Auditor
RWH:gp 2001ARL-40

FITZGERALD-BEN HILL COUNTY LIBRARY

FITZGERALD-BEN HILL COUNTY LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

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

GOVERNMENTAL FUND TYPE
GENERAL FUND

FIDUCIARY FUND TYPE
TRUST FUND

$

18,363.67 $

14,973.11

51,959.00

1,527.37

Total Assets

$

18,363.67 $ ===6=8=,4=59=.4=8=

FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For Endowment Corpus For Technology
Unreserved Designated for Object of Trust Undesignated
Total Fund Equity

$ $ _ ____,;1..;;.8=,3=63"-'-.6~7_

51,959.00
16,500.48 0.00

$

18,363.67 $ ===6=8,..,45=9=.4=8=

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 Onl~ JUNE 301 2001 JUNE 301 2000

$

33,336.78 $

54,289.19

51,959.00

50,000.00

1,527.37

2,673.44

$

236,388.00

0.00

236,388.00 0.00

221,674.00 0.00

$

236,388.00 $ 323,211.15 $ 328,636.63

$

236,388.0(1 $ 236,388.00 $ 221,674.00

51,959.00
16,500.48 18,363.67

50,000.00 16,263.00
16,631.74 24,067.89

$

236,388.00 $ 323,211.15 $ 328,636.63

-3-

FITZGERALD-BEN HILL COUNTY LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001

EXHIBIT "B"

REVENUES
State Funds Local Funds Other Funds
Total Revenues EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GENERAL FUND

TOTALS (Memorandum Onl~}
YEAR ENDED JUNE 30, 2001 JUNE 301 2000

$ 146,430.20 $ 187,903.62 11,963.68
$ 346,297.50 $

146,430.20 $ 187,903.62
11,963.68
346,297.50 $

142,914.38 181,492.50
32,489.16
356,896.04

$ 193,542.91 $ 12,120.41 139,141.07 23,460.33
$ 368,264.72 $
$ -21,967.22 $
40,330.89

193,542.91 $ 12,120.41
139,141.07 23,460.33
368,264.72 $
-21,967.22 $
40,330.89

162,668.50 17,774.97
121,131.63 20,700.73
322,275.83
34,620.21
5 710.68

$ 18,363.67 $

18,363.67 $====4,..0,.3...3.0.=.8=9=

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

FITZGERALD-BEN HILL COUNTY LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL FUND
YEAR ENDED JUNE 30, 2001

EXHIBIT "C"

REVENUES
State Funds Local Funds Other Funds
Total Revenues EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 2000
FUND BALANCE JUNE 30, 2001

BUDGET

ACTUAL

$ 152,207.58 $ 146,430.20

183,000.00

187,903.62

12,000.00

11,963.68

$ 347,207.58 $ 346,297.50

$ 167,407.38 $ 193,542.91

10,500.00

12,120.41

123,425.52

139,141.07

26,000.00

23,460.33

$ 327,332.90 $ 368,264.72

$ 19,874.68 $ -21,967.22

40,330.89

40,330.89

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. 2001

EXHIBIT"D"

OPERATING REVENUES Donations
OPERATING EXPENSES Current Pupil Services Support Services Total Operating Expenses Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Increase (Decrease) in Fair Value of Investments Total Nonoperating Revenues Total Income
FUND BALANCE JULY 1

FITZGERALDBEN HILL COUNTY
LIBRARY FUND

TOTALS

{Memorandum Onll}

YEAR ENDED

JUNE 301 2001

JUNE 301 2000

$

2,496.08 $

2,496.08 $

0.00

$

117.64 $

117.64

3,038.85

3,038.85 $

1,219.00

$

3 156.49 $

3,156.49 $

1,219.00

$

-660.41 $

-660.41 $

-1 219.00

$

2,926.45 $

2,926.45 $

3,772.49

-438.30

-438.30

$

2 488.15 $

2 488.15 $

3 772.49

$

1,827.74 $

1,827.74 $

2,553.49

66 631.74

66 631.74

64,078.25

FUND BALANCE JUNE 30

$

68,459.48 $

68A59.48 $ =-==---6_6_6_3_1_1...,.4

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, 2001

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Special Library Programs Donations
Net Cash Flows from Operating Activities
Cash Flows from Investing Activities: Interest Received on Investments Net Sale (Purchase) of Investments
Net Cash Flows from Investing Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

FITZGERALDBEN HILL COUNTY
LIBRARY FUND

TOTALS

(Memorandum Onl~} YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

-3,156.49 $

-3,156.49 $

-1,219.00

2,496.08

2,496.08

$

-660.41 $

-660.41 $

-1,219.00

$

4,072.52 $

4,072.52 $

1,099.05

-2,397.30

-2,397.30

$

1,675.22 $

1,675.22 $

1,099.05

$

1,014.81 $

1,014.81 $

-119.95

13,958.30

13,958.30

14,078.25

Cash and Cash Equivalents - June 30

$

14 973.11 $

14 973.11 $ ===1=3=,9==5=8==3=0

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

FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 the Ben Hill County Commissioners and four members appointed by the Fitzgerald City Council. The Library Board is without authority to determine the amount ofits funding, except by submission ofbudget 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 ofeach 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 of the Fitzgerald-Ben Hill County Library's Board, the Fitzgerald 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 Governmental Accounting Standards Board. The Fitzgerald-Ben Hill County Library is therefore considered to be a related organization of the City ofFitzgerald,Georgia.
FUND ACCOUNTING
The Library uses a fund 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 ce~ain 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, Local 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 TYPE - used to account for all or most of the Library's general activities. The Governmental Fund Type includes:
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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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.
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 equipment and ine~haustible 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 ofthese 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.
Governmental funds are accounted for using the modified accrual basis ofaccountiqg under which:

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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30.2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis ofaccounting, 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 Board of Regents of the University System of Georgia as a part of the 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 ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ruNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code ofGeorgia 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 ofthe 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 of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due on 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 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.

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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30,2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. 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 ofthe 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 ofthe assets is not capitalized. The values ofinexhaustible collections and books at the Library are not readily determinable, therefore, the Library has not capitalized them.
COMPENSATED ABSENCES
Compensated absences represent obligations ofthe 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 ~urrent 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 ofthese financial statements.
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations 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 of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS
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 ofmoney 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 of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one 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 of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe 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 or debt obligations issued by the Federal Land Bank, the Federal 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.
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $109,011.90. The bank balances were entirely covered by Federal depository insurance.
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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Library or the Library's agent in the Library's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Library's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Library's name.

At June 30, 2001, the carrying value of the Library's total investments was $1,959.00. The investments are classified as to risk categories as follows:

Type of Investment

Common Stock

$

Risk Categories 2

0.00 $

0.00 $

Carrying

Fair

3

Amount

Value

I 959.00 $ I 959.00 $ I 959.00

Note 3: GENERAL FIXED ASSETS

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

Equipment

Balance July 1, 2000

$ 201,634.00

Retroactive Restatement of Prior Year Balances

20,040.00

Balance July 1, 2000 Restated

$ 221,674.00

Additions

14,714.00

Balance June 30, 2001

$ 236,388.00

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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30,2001

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, assets and errors or omissions. However, the error or omissions policy excludes coverage for sexual harassment and discrimination. 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.

The Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to this risk 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 last two years.

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 premium to the City ofFitzgerald for its general insurance coverage.

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

Position Covered

Amount

Director Bookkeeper Custodian Each Circulation Clerk Reference Clerk

$ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00

Note 5: ACCUMULATED EMPLOYEES' LEAVE

Regular, full-time employees earn annual leave beginning on the day of original appointment in a covered position. Annual leave is credited based on the number ofyears ofemployment. Leave may be taken after six months of employment and must be taken during the year it is credited. Upon separation in good standing, after one year of employment, the employees will be paid for unused annual leave earned. See Note 1 - Compensated Absences

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FITZGERALD-BEN HILL COUNTY LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 5: RETIREMENT PLANS

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 of Georgia (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 CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to contribute 5% of their 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 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 19,302.98 $ 18,327.46 $ 19,637.50

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FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001
AGENCY/FUNDING GRANTS Board of Regents of the_ University System of Georgia Office of Public Library Services Salaries and Travel Library Materials Maintenance and Operations

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

128,735.40

9,152.50

8,542.30

$ ===1=4=6.A....3..=0.=20=

See notes to the general-purpose financial statements. - 18 -

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30. 2001
LOCAL SOURCES City Government Fitzgerald County Government Board of Commissioners Ben Hill

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

93,952.98

93,950.64

$ ==-18=7=,9=0=3..6.2. ..,

See notes to the general-purpose financial statements. - 19 -

FITZGERALD-BEN HILL COUNTY LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

NAME
Achord, Adams, Bacon, Bly, Brock, Chasteen, Deese, Hostetler, Hostetler, Hunter, Hunter, McKinley, Meredith, Parker, Parker, Rakestraw,

Judith Laura BemiceP. Kimberly Camille 8. Ginny Cherron Darlene Brooke Lynne Linda Sue Linda Joyce Margaret G. William Duke Julia B. Jamie Lynn Rebecca Susan Karen C.

Totals per Report

TITLE CATEGORY
Part Time Clerk Part Time Clerk Assistant Director Part Time Clerk Technical Services Outreach Clerk Circulation Clerk Part Time Clerk Bookkeeper Part Time Clerk Circulation Clerk Part Time Clerk Director Children's Clerk Part Time Clerk Circulation Clerk

SALARIES

$

840.74

499.55

47,520.14 $

383.68

6,042.50

10,732.60

14,034.78

1,239.87

16,771.38

6,729.66

14,941.14

5,965.02

60,292.84

5,429.95

494.40

14 941.14

TRAVEL 742.09
2,097.57 83.00

$ 206,859.39 $ ====2,.,9_22_.6_6=

See notes to the general-purpose financial statements. -20-