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 -