Houston County Public Library, a component unit of Houston County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006

HOUSTON COUNTY PUBLIC LIBRARY
A COMPONENT UNIT OF HOUSTON COUNTY, GEORGIA
REPORT ON AUDIT OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2006
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

HOUSTON COUNTY PUBLIC LIBRARY - TABLE OF CONTENTS -

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

1

B

STATEMENT OF ACTIVITIES

2

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

3

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

4

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

5

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

7

G

NOTES TO THE BASIC FINANCIAL STATEMENTS

8

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUAL

GENERALFUND

17

SUPPLEMENTARY INFORMATION

SCHEDULES OF REVENUE

2

STATE

18

3

FEDERAL

19

4

LOCAL

20

5 SCHEDULE OF SALARIES AND TRAVEL

21

FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
May 22, 2007

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
and Director and Members ofthe Houston County Public Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements of the governmental activities and each major fund (Exhibits A through G) of the Houston County Public Library, a component unit of Houston County Board of Commissioners, as of and for the year ended June 30, 2006, which collectively comprise the Library's basic financial statements as listed in the table ofcontents. These financial statements are the responsibility ofthe Houston County Public Library's management. Our responsibility is to express opinions on these 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 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Houston County Public Library, as ofJune 30, 2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

2006ARL-41

The Houston County Public Library has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements.
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 17 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Houston County Public Library's basic financial statements. The accompanying supplementary information which consist ofSchedules 2 through 5, are presented for purposes of additional analysis and are not a required part ofthe basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic 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,
~~~w~
~J~ell W. Hinton, CPA, CGFM State Auditor
RWH:as 2006ARL-41

HOUSTON COUNTY PUBLIC LIBRARY

HOUSTON COUNTY PUBLIC LIBRARY STATEMENT OF NET ASSETS JUNE 30, 2006
ASSETS Cash and Cash Equivalents Investments Capital Assets
Land Buildings Equipment Library Collections Less: Accumulated Depreciation
Total Assets
NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted for
Permanent Funds Unrestricted
Total Net Assets

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

180,982

39,153

187,500 1,274,640
26,500 2,423,278 -2,977,847

$ =====11,.1.5.4==='=,2=0.6..

$

934,071

26,839 193,296

$ =====11,.1.5.=4=,2=0.6..

The notes to the basic financial statements are an integral part of this statement. - 1-

HOUSTON COUNTY PUBLIC LIBRARY STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2006

EXHIBIT"B"

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR

GRANTS AND

SERVICES

CONTRIBUTIONS

NET(EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

GOVERNMENTAL ACTIVITIES

Current Services Public Services Support Services Maintenance and Operations
Total Governmental Activities

$

574,133 $

184,319

214.569

$ 973.021 $

72,966 $ 72 966 $

259,152 $ 80 910

-242,015 -184,319 -133 659

340 062 $ ____-_5_59~,_99_3_

General Revenues Allotments from Participating Governments Investment Earnings Miscellaneous

$

670,200

3,256

37 614

Total General Revenues

$ _ _ _......;.7..:..11.:.,.;.;07c.::0:...

Change in Net Assets

$

151,077

Net Assets - Beginning of Year (Restated)

1,003.129

Net Assets - End of Year

$ ===1=1=54===20.,.6=

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

ASSETS Cash and Cash Equivalents Investments
Total Assets
FUND BALANCES Reserved for:
Permanent Funds Unreserved
Designated for Self-Insurance Undesignated Reported in:
General Fund
Total Fund Balances

HOUSTON COUNTY PUBLIC LIBRARY BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2006

EXHIBIT"C"

GENERAL FUND

PERMANENT FUNDS

TOTAL

$

180,982

$

180,982

12 314 $ _ _-=26__,_,8=3"--9_

39153

$

193,296 $

26,839 $ ===2=2=0=1'=35=

$

26,839 $

26,839

$

12,314

12,314

180,982

180,982

$

193,296 $

26,839 $ ===2,..2...,0..,1,,..35=

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

HOUSTON COUNTY PUBLIC LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30, 2006

EXHIBIT"D"

Total Fund Balance - Governmental Fund (Exhibit "C")
Amounts reported for Governmental Activities in the Statement of Net Assets are different because:
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of:
Land Buildings Equipment Library Collections Accumulated Depreciation
Total Capital Assets

$

$

187,500

1,274,640

26,500

2,423,278

-2,977,847

220,135 934 071

Net Assets of Governmental Activities (Exhibit "A")

$ -======-1,.,154_.2..0.=6

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

HOUSTON COUNTY PUBLIC LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006

EXHIBIT"E"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Support Services Maintenance and Operations
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending

GENERAL FUND

PERMANENT FUNDS

TOTAL

$

670,200

337,712

2,350

72,966

2,614 $

37 614

$ 1,123,456 $

$ 642

670,200 337,712
2,350 72,966
3,256 37 614

642 $ 1,124,098

$

750,934 $

184,319

214,569

$ 1,149,822 $

$

-26,366 $

219,662

1,823 $

752,757 184,319 214,569

1 823 $ 1,151,645

-1,181 $ -27,547

28,020

247,682

$

193,296 $

26,839 $ 220,135

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

(This page left intentionally blank)

HOUSTON COUNTY PUBLIC LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006

EXHIBIT"F"

Total Net Change in Fund Balance - Governmental Fund (Exhibit "E")
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:
Capital Outlay Depreciation Expense
Excess of Depreciation Expense over Capital Outlay

$

-27,547

$ 284,568 -105,944

178,624

Change in Net Assets of Governmental Activities (Exhibit "B")

$ ===15=1=0=77=

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

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT "G"

Note 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY
REPORTING ENTITY
The Houston County Public 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 Library Board consists of 12 members appointed by the Houston County Board of Commissioners. The Library Board is without authority to determine the amount of its 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 flow through 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 oflocal and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Houston County Board ofCommissioners appoints a majority ofthe Library's Board members and provides a substantial majority of funding for the operations of the Library, consequently, the Library is deemed to have a financial benefit/burden relationship with the Houston County Board of Commissioners as defined by the Governmental Accounting Standards Board. Accordingly, the Houston County Public Library is considered to be a component unit ofthe Houston County Board of Commissioners for financial reporting purposes.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Library's basic financial statements are collectively comprised of the Library-wide financial statements, fund financial statements and notes to the basic financial statements of the Houston County Public Library.
Library-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities of the overall Library. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions.
The Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the Library's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the Library related to the administration and support ofthe Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
-8-

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT "G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the Library's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and permanent) are presented. The emphasis of fund financial statements is on major governmental funds. All remaining governmental funds are aggregated and reported as nonmajor funds.
The Library reports the following major governmental funds:
General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library, except those resources required to be accounted for in another fund.
Permanent Fund - Nola Brantley Memorial Library Fund is the fund used to account for an endowment of which the corpus is to be reinvested and preserved intact with the resultant income to be used for Library operations.
BASIS OF ACCOUNTING
The basis ofaccounting determines when transactions are reported on the financial statements. The Library-wide governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The Library considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Interest is considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds.
-9-

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Library funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Library's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
RESTATEMENT OF PRIOR YEAR NET ASSETS
For fiscal year 2006, the Library restated accumulated depreciation due to an error noted during the initial year of implementation of GASB Statement No. 34. The Library decreased accumulated depreciation by $21,244. The result is an increase in Net Assets at July 1, 2005 of $21,244. This change is in accordance with generally accepted accounting principles.
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 OCGA 45-8-14 authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings 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. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year 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 ofretum 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,
- 10-

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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.

CAPITAL ASSETS

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the Library-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method.

Capitalization thresholds and estimated useful lives of capital assets reported in the Library-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land Buildings and Improvements Equipment Library Collections

All

NIA

$

50,000 20 to 60 years

$

10,000 4 to 25 years

All

10 years

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.

Note 3: 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 ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value ofsuch 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.

- 11 -

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 3: 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 of indebtedness or other obligations of the counties or municipalities ofthe 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 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 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, 2006, the bank balances were $255,682. The amounts of the total bank balances are classified into four categories of custodial credit risk:
Category 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.
Category 4 - Uncollateralized.
The Library's deposits are classified by custodial credit risk category at June 30, 2006, as follows:

- 12 -

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 3: DEPOSITS

Custodial Credit Risk Category

Bank Balance

1

$ 139,153

2

116,529

3

0

4

0

Total Note 4: CAPITAL ASSETS

$====2..,.55-,6===8==2

The following is a summary of changes in the Capital Assets during the fiscal year:

Balances July 1, 2005 (Restated)

Increases

Balances Decreases June 30, 2006

Governmental Activities

Capital Assets, Not Being Depreciated:

Land

$ 187,500 $

0 $

0 $ 187,500

Capital Assets Being Depreciated Buildings and Improvements Equipment Library Collections

$ 1,274,640 26,500
2,231,382 $

284,568 $

$ 1,274,640

26,500

92,672

2,423,278

Less Accumulated Depreciation for: Buildings and Improvements Equipment Library Collections

1,253,396 14,296
1.696.883

21,244 1,450
83,250

92,672

1,274,640 15,746
1,687.461

Total Capital Assets, Being Depreciated, Net $ 567.947 $ 178.624 $

0 $ 746.571

Governmental Activity Capital Assets - Net $ 755.447 $ 178.624 $

0 $ 934.071

Current year depreciation expense by function is as follows:

Public Services Note 5: RESTRICTED ASSETS

$=====1==05-,9===4===4

Restricted Assets are endowments in which donors have stipulated as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose ofproducing present and future income, which may be expended. Restricted assets at June 30, 2006, were as follows:

- 13 -

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 5: RESTRICTED ASSETS

Permanent Fund

Restricted Investments Library Operations

$

26,839

Note 6: 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; acts of God and unemployment compensation.

The Library has obtained commercial insurance for risk ofloss associated with torts, assets and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

The Library has elected to self-insure for all losses related to acts of God. 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. In connection with this program, a self-insurance reserve has been established within the General Fund by the Library. The Library accounts for claims within the General Fund with expenses/expenditures 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 has purchased a surety bond to provide additional insurance coverage as follows:

Position Covered

Amount

All Employees

$

50,000

Note 7: OPERATING LEASES

Houston County Public Library has entered into various leases as lessee for the rental of copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2006, for governmental funds amounted to $4,455. Future minimum lease payments for these leases are as follows:

- 14 -

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 7: OPERATING LEASES

Year Ending

Governmental Funds

2007 2008 2009 2010

$

5,265

4,860

4,860

4,860

Total

Note 8: 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 ofthe 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 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2006 2005 2004

100% 100% 100%

$

55,340

$

53,457

$

51,143

- 15 -

(This page left intentionally blank)

HOUSTON COUNTY PUBLIC LIBRARY GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2006

SCHEDULE "1"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

$

670,200 $

670,200 $

670,200

293,065

293,065

337,712

2,350

72,966

2,614

12,000

12,000

37614

$

975,265 $

975,265 $

1,123,456

$

648,992 $

648,992 $

750,934

55,485

55,485

160,594

160,594

184,319

173 212

173,212

214,569

$

1,038,283 $

1,038,283 $

1,149,822

$

-63,018 $

-63,018 $

-26,366

84,336

84,336

219,662

Fund Balance - Ending

$

21,318 $

21,318 $=====19;,;3,1;,2,.96;,.,

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 17 -

HOUSTON COUNTY PUBLIC LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006
AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Library Materials Maintenance and Operations Repairs and Maintenance

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

215,018

41,784

65,959

14 951

$====33=7=,7=12=

See notes to the basic financial statements.

-18-

HOUSTON COUNTY PUBLIC LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2006
AGENCY/FUNDING GRANTS Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program

SCHEDULE "3"
GOVERNMENTAL FUND TYPE GENERAL FUND
$=====2=35=0=

See notes to the basic financial statements.

- 19 -

HOUSTON COUNTY PUBLIC LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2006
LOCAL SOURCES Board of Education Houston County County Government Board of Commissioners Houston

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

1,200

669,000

$====61...,0_.2=0==0

See notes to the basic financial statements.

-20-

HOUSTON COUNTY PUBLIC LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2006

SCHEDULE "5"

NAME
Arnold Billingslea Bridges Bush Christy Clay Colwell Douglass Drennan Ford Fuller Gentry Golden Granger Granville Gries Halbedel Hannon Harris Harvester Howell Jeffcoat Jones Kelton Kuder Lane Mallory-Blaizis Malone Meredith
Merk
Nelson Nelson Northern Powell Pruett Putnam
Ray
Sayre Scarborough Shylova Smothers Summers Thompson Trejo-Lozano Tomko Tucker Watson Winans
Totals per Report

JoAnn Shadra Heather Isabelle R. Marsha Richard Gina Kelley Sue Ann Michelle Vivian Hanna Judith Nancy Cynthia Helen Susan Jacqueline Ariel Jamie Laura Marian Teri Amber Rosemary Sonya Sharon Judith Christina Evelyn Cynara Darci Dorothy Rodney Jean Clinton Regina Janet Sharon Gaona Kimberly JoAnne Glenda Marian Seth Margaret Walter Cliff

TITLE CATEGORY
Technology Library Clerk Library Clerk Reference Librarian Head Librarian Technical Services Library Clerk Library Clerk Library Clerk Page Accountant Page Director Head Librarian Library Clerk Library Clerk Library Clerk Library Clerk Page Library Clerk Library Clerk Library Clerk Library Clerk
Page
Children's Specialist Library Clerk Library Clerk Library Clerk Library Clerk Instructor Page Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Children's Specialist Technical Services Library Clerk
Page
Children's Specialist Library Clerk Head Librarian Library Clerk Library Clerk Library Clerk Maintenance Maintenance

SALARIES

TRAVEL

$

21,258 $

686

251

8,229

49,046

51,522

573

1,786

3,025

402

12,531

609

34,840

486

1,577

76,957

1,296

62,579

30

183

2,847

5,756

15,142

479

9,422

8,656

649

8,412

6,463

22,506

18,533

214

6,914

12,123

8,040

5,882

3,317

498

18,616

18,179

5,232

1,298

13,857

23,379

816

1,875

9,049

17,618

39,770

355

720

1,464

13,936

11,648

2,868

$

640 759 $ _ _ _ _3_64-=0

See notes to the basic financial statements.

- 21 -