Audit report, Hart County Library, Hartwell, Georgia, year ended June 30, 1994

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT HARTCOUNTYLIBRARY
HARTWELL, GEORGIA YEAR ENDED JUNE 30, 1994

HART 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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

12

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

13

SCHEDULES

1 ANALYSIS OF CASH AND CASH EQUIVALENTS

14

SCHEDULE OF REVENUE

2

STATE

15

3

FEDERAL

16

4

LOCAL AND OTHER

17

5 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

18

6 MEMBERSHIP OF LIBRARY BOARD

19

7 SCHEDULEOFSALARIESANDTRAVEL

20

HART COUNTY LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDl10R (404) 656-2174
TAX RATIO (404) 656-0494

~.epttrfm.enf of J\.uhifs
254 WASHING10N STREET. S. W. ROOM 214
J\t!anta, ~enrgia 30334-8400
January 9, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Hart County Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Hart County Library, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these 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 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.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of this variance or omission has not been determined, but are believed to be material.
94ARL-42

In our opinion, except for the effect on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Hart County Library as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Hart County Library taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 7), 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 Hart County Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial 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 ofthis 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,
~
Claude L. Vickers State Auditor
CLV:gp 94ARL-42

HARTCOUNTYLIBRARY
- 1-

HART COUNTY LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES JUNE 30, 1994

EXHIBIT "A"

ASSETS Cash and Cash Equivalents
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL (Memorandum Only)

$ 3,646.94$

394.64 $

4,041.58

============= ============= ============z===

$ 2,692.60

$

2,692.60

154.20

154.20

102.99 $

394.64

497.63

------------- ------------- -----------------

$ 2,949.79 $

394.64 $

3,344.43

------------- ------------- -----------------

$

697.15 $

0.00 $

697.15

------------- ------------- -----------------

$

697 .15 $

0.00 $

697.15

------------- ------------- -----------------

$ 3,646.94 $

394.64 $

4,041.58

============= ============= =================

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

HART COUNTY LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

REVENUES
--------
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Technical Services Circulation Administration Maintenance and Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY l, 1993
-------------------------
FUND BALANCE JUNE 30, 1994

GOVERNMENTAL FUND TYPES

---------------------------SPECIAL

GENERAL

REVENUE

FUND

FUND

------------- -------------

TOTAL
(Memorandum Only)
-----------------

$ 118,265.25 $ 17,105.36 $

135,370.61

7,840.00

7,840.00

82,802.37

82,802.37

------------- ------------- -----------------

$ 201,067.62 $ 24,945.36 $

226,012.98

------------- ------------- -----------------

$ 75,481.77 $ 12,304.36 $

87,786.13

7,840.00

7,840.00

41,899.19

41,899.19

56,730.22

4,BOl.00

61,531.22

28,055.19

28,055.19

------------- ------------- -----------------

$ 202,166.37 $ 24,945.36 $

227,111.73

------------- ------------- -----------------

$ -1,098.75 $

0.00 $

-1,098.75

1,795.90

0.00

1,795.90

------------- ------------- -----------------

$

697.15$

0.00 $

697 .15

============= ============= =================

The notes to the general purpose financial statements are an integral part of this statement.
- 3-

HART COUNTY LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

REVENUES
--------
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Technical Services Circulation Administration Maintenance and Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY l, 1993
-------------------------
FUND BALANCE JUNE 30, 1994

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 135,370.61 $ 137,079.00 $ -1,708.39

7,840.00

4,000.00

3,840.00

82,802.37

83,100.00

-297.63

------------- ------------- -------------

$ 226,012.98 $ 224,179.00 $ 1,833.98
------------- ------------- -------------

$ 87,786.13 $ 88,987.50 $ 1,201.37

7,840.00

-7,840.00

41,899.19

39,760.00

-2,139.19

61,531.22

61,586.50

55.28

28,055.19

33,345.00

5,289.81

4,000.00

4,000.00

------------- ------------- -------------

$ 227,111.73 $ 227,679.00 $

567.27

------------- ------------- -------------

$ -1,098.75 $ -3,500.00 $ 2,401.25

1,795.90

1,795.90

0.00

------------- ------------- -------------

$

697.15 $ -1,704.10 $ 2,401.25

============= ============= =============

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

HART COUNTY LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Hart County 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 departure from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Hart County Library is determined to be a joint venture.
The Library Board consists of 10 members appointed jointly by the Hart County Board ofFinance, the City Council ofHartwell, and the Hart County Board ofEducation. The 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 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.
The Hart County Library is located in Hartwell, Georgia, and serves Hart County.
FUND ACCOUNTING
The Library uses funds 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.
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

- 5-

HART COUNTY LIBRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all of the Library's general activities. Governmental Fund Types include:
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 traditionally 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.
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.
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.
BUDGET
Hart County Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure ofthe aggregate budget. The budget process begins when the Library
- 6-

HART COUNTY LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division of Public Library Services, as a part of the Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF CASH DEPOSITS Cash consists 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.
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.
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 or results of operations 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.
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 ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe 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.

- 7-

HART COUNTY LIBRARY

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

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 ofindebtedness or other obligations ofthe 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 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 and 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, 1994, the bank balances were $16,215.16. The bank balances were entirely covered by Federal depository insurance.

Note3: RISKMANAGEMENT

The Library has established a limited risk management program for Workers' Compensation. Estimated claims are budgeted by management based on experience. During fiscal ye~ 1994, no claims were paid.

The Library has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based upon experience. During fiscal year 1994, no claims were paid.

- 8-

HART COUNTY LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 4: CONTINGENT LIABILITIES
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 financial position.
Note 5: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time 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 public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $79,999.10; total payroll was $109,914.40.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
- 9-

HART COUNTY LIBRARY

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 5: RETIREMENT PLANS

Total contributions made during fiscal year 1994 amounted to $14,247.99, of which $9,448.08 was made by the Library and $4,799.91 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

Total pension benefit obligation

$ 13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292,000,00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of $9,448.08 was actuarially determined and represented .0018% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 6: SURETY BONDS

The Library Director, Mr. Arthur J. Bisso, is bonded in the amount of $10,000.00 with the Continental Insurance Company, New York, New York, their Bond No. BND1396657, on which premium was paid through July 14, 1994.

- 10 -

HART COUNTY LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 6: SURETY BONDS
The Library Treasurer, Mr. Phillip Hix is bonded in the amount of $10,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 02-0170-11012-93-4, on which premium was paid through June 23, 1995.

- 11 -

HART COUNTY LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30 1 1994

EXHIBIT "E"

ASSETS Cash and Cash Equivalents
LIABILITIES AND FUND EQUITY LIABILITIES
Expired Grant Balances Payable FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC
LIBRARY
SERVICES

TOTAL

$

394.64 $

0.00 $

394.64

============= ============= =============

$

394.64

$

394.64

0.00 $

0.00

0.00

$

394.64 $

0.00 $

394.64

============= ============= =============

See notes to the general purpose financial statements. - 12 -

HART COUNTY LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "F"

REVENUES
State Funds Federal Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Administration
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1993
FUND BALANCE JUNE 30, 1994

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 17,105.36

$ 17,105.36

$ 7,840.00

7,840.00

------------- ------------- -------------

$ 17,105.36 $ 7,840.00 $ 24,945.36
------------- ------------- -------------

$ 12,304.36

$ 12,304.36

$ 7,840.00

7,840.00

4,801.00

4,801.00

------------- ------------- -------------

$ 17,105.36 $ 7,840.00 $ 24,945.36
------------- ------------- -------------

$

0.00 $

0.00 $

0.00

0.00

0.00

0.00

$

0.00 $

0.00 $

0.00

============= ============= =============

See notes to the general purpose financial statements. - 13 -

HART COUNTY LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994
NONINTEREST BEARING ACCOUNTS
NationsBank of Georgia, Hartwell, Georgia
OTHER
Petty Cash

SCHEDULE "l"
$ 4,026.58 15.00
$ 4,041.58
=------=---=-

See notes to the general purpose financial statements. - 14 -

HART COUNTY LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1994

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Other State Programs Teachers' Retirement Teachers' Health Insurance Lottery Program Media Center and Library Equipment

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$ 78,576.61 11,945.00 11,945.00

$ 78,576.61 11,945.00 11,945.00

9,114.86 6,683.78

9,114.86 6,683.78

$ 17,105.36

17,105.36

$ 118,265.25 $ 17,105.36$ 135,370.61
============= ============= =============

See notes to the general purpose financial statements. - 15 -

HART COUNTY LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 1994
AGENCY/FUNDING Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "3"

GOVERNMENTAL FUND TYPE
SPECIAL REVENUE FUND

$

7,840.00

=------=--=--

See notes to the general purpose financial statements. - 16 -

HART COUNTY LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1994
LOCAL SOURCES Board of Education Hart County City Government Hartwell County Government Board of Finance Hart County
OTHER SOURCES Donations Lost and Damaged Books Other

SCHEDULE "4"

GOVERNMENTAL FUND TYPE
GENERAL FUND

$

600.00

12,000.00

66,419.96
3,545.89 52.80 183.72

$ 82,802.37

See notes to the general purpose financial statements. - 17 -

HART COUNTY LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1 1994

SCHEDULE "5"

EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communication and Insurance Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

------------- ------------- -------------

$ 109,914.40 31,912.17
1,247.01 427.64 $
2,254.45 6,218.11 20,771.32 26,026.99 2,367.41
749.28

$
6,864.59 179.53
2,129.85

109,914.40 31,912.17
1,247.01 7,292.23 2,254.45 6,397.64 22,901.17 26,026.99 2,367.41
749.28

277.59

15,771.39

16,048.98

------------- ------------- -------------

$ 202,166.37 $ 24,945.36$ 227,111.73
============= ============= -=----=--~-=-

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

HART COUNTY LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30. 1994
BOARD MEMBER ADDRESS
Mrs. Katherine Hailey, Chairperson(*) 602 West Howell Street Hartwell, Georgia 30643 Mr. David Brooks(*) Hart County Courthouse Hartwell, Georgia 30643 Mr. John Cleveland(*) 509 Glen Street Hartwell, Georgia 30643 Mr. Randolph Daniel (*) 611 Opal Street Hartwell, Georgia 30643 Mrs. Nancy Grizzle(*) 437 East Franklin Street Hartwell, Georgia 30643 Mr. Phillip Hix(*) Hart County Courthouse Hartwell, Georgia 30643 Mrs. Louise Johnson(*) 101 Brown Street Hartwell, Georgia 30643 Mrs. Joan Saliba(*) 113 Alford Road Hartwell, Georgia 30643 Mrs. Eva Stamy (*) 205 Highland Avenue Hartwell, Georgia 30643 Mrs. Beverly Verdery (*) 304 Fairview Avenue Hartwell, Georgia 30643
(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements.
- 19 -

SCHEDULE "6"

HART COUNTY LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "7"

PERSONNEL
---------
Bisso, Chandler, Hazelton, Jones, Maddox, Sudderth, Ward,

Arthur J. Lucy George Shirley Jane Deborah Robert

Accruals June 30, 1993 June 30, 1994

POSITION
--------
Director Clerk Assistant Director Clerk Clerk Clerk Clerk

SALARIES

TRAVEL

------------- -------------

$ 40,373.30 $ 1,044.50

3,996.96

39,625.BO

202.51

9,324.00

3,996.96

9,139.92

3,876.96
------------- -------------
$ 110,333.90 $ 1,247.01

-573.70
154.20
------------- -------------

$ 109,914.40$ 1,247.01
============= =============

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

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

HART COUNTY LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements Inadequate Segregation ofDuties Audit Control Number 6732-93-01
The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6732-93-02
The audit report for the year ended June 30, 1993, noted that the Library did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, no action was taken by the Library to establish this account group. Appropriate action should be taken by the Library to establish accounting controls and procedures to implement and maintain a General Fixed Assets Account Group for inclusion in the accounting records. Subsidiary records should be established for land, buildings, equipment and collections owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions for each class of fixed assets that comprise this group.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Documentation Audit Control Number 6732-93-03
The audit report for the year ended June 30, 1993, disclosed that all expenditures were not properly approved and sufficiently documented before payments were made. In the year under review, improvement was noted~ however, the Library again failed to provide adequate documentation supporting all expenditures.
The management of the Library should develop and implement written procedures to ensure that all expenditures are sufficiently documented before payments are made.
EMPLOYEE COMPENSATION Payroll Authorization Documentation Audit Control Number 6732-93-04
The audit report for the year ended June 30, 1993, noted that the Library's personnel files did not contain compensation agreements and documentation to support salaries paid. In addition, the Library did not maintain adequate leave records for employees. For the year under review, the Library again failed to provide compensation agreements to support salaries paid and failed to maintain adequate leave records.

HART COUNTY LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

PRIOR YEAR/CURRENT YEAR

EMPLOYEE COMPENSATION Payroll Authorization Documentation Audit Control Number 6732-93-04

Corrective action should be taken by the Board to ensure that the personnel files are complete and updated to include appropriate documentation for salaries paid and appropriate leave records for all employees.

EXPENDITURES/LIABILITIES/DISBURSEMENTS Lack of Proper Travel Cost Documentation Amount: $257.95 Audit Control Number 6732-93-05

The audit report for the year ended June 30, 1993, disclosed travel expenditures not supported by proper documentation or in excess ofmileage reimbursement limitations in the amount of $233.95. These questioned costs had not been resolved as of the date of this audit.

made A review oftravel payments

in the year under review disclosed travel expenditures of $24.00 that were

in excess oftravel regulation limits.

The Library should secure reimbursement for all unsupported travel reimbursed or paid in excess of regulations. In addition, Library management should develop and implement written procedures to ensure that requests for travel reimbursement are sufficiently documented and within travel regulation limits before payment is made.

Note: The Hart County Library was provided an opportunity to include pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusion in this report.