Audit report, Moultrie-Colquitt County Library, a component unit of Colquitt County Board of Commissioners, Moultrie, Georgia, year ended June 30, 1994

GA A800
.Rl
C /... 'i'8 M 4, / 113-91/
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT MOULTRIE-COLQUITT COUNTY LIBRARY A COMPONENT UNIT OF COLQUITT COUNTY
BOARD OF COMMISSIONERS MOULTRIE, GEORGIA
YEAR ENDED JUNE 30, 1994

MOULTRIE-COLQUITT COUNTY LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIIlBITS

FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN

FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

18

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

19

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

20

SCHEDULES

1 ANALYSIS OF CASH AND CASH EQUIVALENTS

21

2 ACCOUNTS RECEIVABLE

22

SCHEDULE OF REVENUE

3

STATE

23

4

FEDERAL

24

5

LOCAL AND OTHER

25

MOULTRIE-COLQUITT COUNTY LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

26

7 MEMBERSHIP OF LIBRARY BOARD

27

8 SCHEDULEOFSALARIESANDTRAVEL

28

SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE .AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 10, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Moultrie-Colquitt County Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the financial statements (Exhibits A through F) of the Moultrie-Colquitt County Library, as ofand 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 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 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 financial statements ofthe 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 financial statements of this variance or omission have not been determined, but are believed to be material.
94ARL-42

In our opinion, except for the effect on the financial statements ofthe matter referred to in the third paragraph, the financial statements present fairly, in all material respects, the financial position of the Moultrie-Colquitt County Library as ofJune 30, 1994, and the results ofits operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the financial statements of the MoultrieColquitt County Library taken as a whole. The combining statements (Exhibits G through I) and the financial schedules (Schedules I through 8), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe financial statements ofthe Moultrie-Colquitt County Library. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-42

MOULTRIE-COLQUITT COUNTY LIBRARY - 1-

MOULTRIE-COLQUITT COUNTY LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES ANO ACCOUNT GROUP JUNE 30. 1994

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Accounts Receivable Amount to be Provided in Future Years
for Payment of: Capital Lease Agreements Canpensated Absences
Total Assets

GOVERNMENTAL FUND TYPES

ACCOUNT GROUP

-------------------S-P-E-C-IA-L----

FIDUCIARY FUND TYPES

-------------
GENERAL

TOTAL

GENERAL FUND

REVENUE FUND

------------- LONG-TERM

TRUST FUNDS

DEBT

(Meroorand1111 Only)

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

$ 38,238.70$ 17,534.46$ 139,799.88

$ 195,573.04

18,452.02

360.87

18,812.89

$ 5,985.00

5,985.00

16,226.84

16,226.84

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

$ 56,690.72 $ 17,534.46$ 140,160.75$ 22,211.84$ 236,597.77

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Deferred Revenue Capital Lease Agreements Canpensated Absences
Total Liabilities FUND EQUITY

$ 13,567.05$ 11,242.13 5,473.56
------------- -------------
$ 13,567.05$ 16,715.69
------------- -------------

$ 24,809.18

5,473.56

$ 5,985.00

5,985.00

16,226.84

16,226.84

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

$ 22,211.84 $ 52,494.58
------------- -------------

Fund Balances

Reserved

For Continuation of Federal Programs

$

For Endowment Corpus

Unreserved Undesignated

$ $ 43,123.67

Total Fund Equity

$ 43,123.67 $

818.77 $ 100,000.00

818.77 $ 100,000.00

0.00

40,160.75

818.77 $ 140,160.75

$

818.77

100,000.00

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

$ 100,818.77

83,284.42
-------------

$ 184,103.19
-------------

Total Liabilities and Fund Equity $ 56,690.72 $ 17,534.46$ 140,160.75$ 22,211.84 $ 236,597.77
=========== ========== ============ =========== ===========

The notes to the financial statenents are an integral part of this statenent. - 2-

MOULTRIE-COLQUITT COUNTY LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

FIDUCIARY FUND TYPE
------------EXPENDABLE TRUST FUND

TOTAL (MemorandLIII
Only)

REVENUES

State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES

$ 137,779.44$ 47,026.44$ 184,805.88

$ 184,805.88

8,000.00

8,000.00

8,000.00

332,133.12

332,133.12 $ 10,056.39 342,189.51

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

$ 469,912.56$ 55,026.44 $ 524,939.00$ 10,056.39 $ 534,995.39
------------- ------------- ------------- ------------- -------------

Current Program Services Technical Services Circulation Adninistration Maintenance and Operations
Debt Service Principal and Interest

$ 133,929.09 $ 41,417.89 7,258.62 232,597.04 51,262.55

53,548.88$ 4,000.00

187,477.97 $ 41,417.89 7,258.62 232,597.04 55,262.55

0.00 $

187,477.97 41,417.89 7,258.62 232,597.04 55,262.55

6,444.66

6,444.66

6,444.66

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

Total Expenditures

$ 472,909.85 $ 57,548.88$ 530,458.73 $

0.00 $ 530,458.73

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

Excess of Revenues over (under) Expenditures $ -2,997.29 $ -2,522.44 $ -5,519.73 $ 10,056.39 $ 4,536.66

FUND BALANCE JULY 1

46,120.96

3,341.21

49,462.17

0.00

49,462.17

FUND BALANCE JUNE 30

$ 43,123.67$

818.77 $ 43,942.44$ 10,056.39 $ 53,998.83

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

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

4

MOULTRIE-COLQUITT COUNTY LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL ANO 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 Operations
Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1993
Adjustments
FUND BALANCE JUNE 30, 1994

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 184,805.88 $ 198,280.00 $ -13,474.12

8,000.00

8,000.00

332,133.12 270,223.00

61,910.12

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

$ 524,939.00 $ 468,503.00 $ 56,436.00
------------- ------------- -------------

$ 187,477.97 $ 92,144.00 $ -95,333.97

41,417.89

42,077.00

659 .11

7,258.62

500.00

-6,758.62

232,597.04 281,614.00

49,016.96

55,262.55

46,075.00

-9,187.55

6,444.66

-6,444.66

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

$ 530,458.73 $ 462,410.00$ -68,048.73
------------- ------------- -------------

$ -5,519.73 $ 6,093.00 $ -11,612.73

49,462.17

32,711.91

16,750.26

135.00

-135.00

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

$ 43,942.44 $ 38,939.91 $ 5,002.53
============= ============= =============

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

MOULTRIE-COLQUITT COUNTY LIBRARY COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current None Recorded
NONOPERATING REVENUES Interest Earned
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
LEVI WILLCOXON FUND

$

0.00

$

0.00

$

4,157.13

125,947.23

$ 130,104.36

The notes to the financial statements are an integral part of this statement.
- 6-

MOULTRIE-COLQUITT COUNTY LIBRARY COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30. 1994
Cash Flows from Operating Activities: None Recorded Net Cash Provided (Used) by Operating Activities:
Cash Flows from Investing Activities: Interest Received
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

EXHIBIT "E"

ENDOWMENT FUND
LEVI WILLCOXON FUND

$

0.00

$

0.00

$

4,173.82

$

4,173.82

$ 125,626.06

$ 129,799.88

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

MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Moultrie-Colquitt County Library operates pursuant to Official Code ofGeorgia Annotated Sections 205-40 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 ofthe departure from generally accepted accounting principles disclosed in the following paragraphs, the financial statements ofthe 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 ofthe above criteria, the Moultrie-Colquitt County Library is determined to be a component unit of Colquitt County Board of Commissioners.
The Library Board consists of twelve members; ten members appointed by the Colquitt County Board of Commissioners, one member appointed by the City ofMoultrie, and, one member appointed by the Colquitt County Board ofEducation. The 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 funding. Membership in the Library and participation in library services is at the discretion ofeach participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level ofoversight responsibility for the Library's operations.
The Colquitt County Board ofCommissioners appoint a majority ofthe Library's Board members and provides a substantial majority offunding for the operations ofthe Library, consequently, the Library is deemed to have a financial benefit/burden relationship with the Board of Commissioners as defined by GASB.
The Moultrie-Colquitt County Library is located in Moultrie, Georgia, and serves the City of Moultrie and Colquitt County.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.

- 8-

MOULTRIE-COLQUITT COUNTY LIBRARY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a :financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
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.
The financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
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.
FIDUCIARY FUND TYPES - the trust funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLE TRUST FUND Levi Willcoxon Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used for general operating funds and/or special programs and services as approved by the Library Board.
EXPENDABLE TRUST FUND Kenney Trust Fund - the fund used to account for the principal and earnings which may be expended to provide books and materials for the Doerun Branch Library.

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MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIDBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences and capital lease obligations not appropriately accounted for and recorded in other fund types.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
The nonexpendable trust fund is accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthis fund is included on the balance sheet. The operating statement present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recogniz.ed 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 of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting as required by generally accepted accounting principles is utilized by the nonexpendable trust fund. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

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MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
Moultrie-Colquitt County Library has a legally authoriz.ed 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 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 ofthe 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 (including certificates of deposit and savings accounts) 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.
RECEIVABLES
Receivables consist ofallotted funds from participating local governments and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
CAPITAL LEASES
It is the policy ofthe Library to record the balance due resulting from capital lease agreements in the General Long-Term Debt Account Group for the amount due at fiscal year end, including interest. This presentation differs from generally accepted accounting principles in that assets acquired through capital lease agreements should be recorded in the General Long-Term Debt Account Group at the net present value of the future minimum lease payments. The effect of this deviation is deemed to be immaterial to the fair presentation of the financial statements.

- 11 -

MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the financial statements.
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
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.
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 ofindebtedness or other direct obligations ofthe United States or of the State of Georgia,
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MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

Note 2: DEPOSITS

(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the 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 of the 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 Banlc, the Federal Home Loan Banlc, the Federal Intermediate Credit Banlc, 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 $201,220.25. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository 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 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

The Library's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category
1 2
3
Total
Note 3: RISK MANAGEMENT

Bank Balance
$ 166,785.37 0.00
34,434.88
$ 201,220.25

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.

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MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXlllBIT "F"

Note 4: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Moultrie-Colquitt County Library has entered into various lease agreements as lessee for a phone system, a copy machine, and a reader-printer. These lease agreements qualify as capital leases for accounting purposes.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Capital Leases

Compensated Absences

Balance July 1, 1993

$ 12,429.66 $ 22,160.20

Additions Leave Earned and Utilized (Net) Salaries S~aries Related Fringe Benefits(*)
Deductions

6,444.66

-7,086.50 1,153.14

Balance June 30, 1994

$ 5,985.00 $ 16,226 84

(*) Includes related fringe benefits applicable to compensated absences at July 1, 1993.

At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items, are:

Fiscal Year Ended June 30
1995 1996 1997 1998
Total Principal and Interest

Capital Leases
$ 1,596.00 1,596.00 1,596.00 1,197.00
$ 5.985,QQ

Note 5: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of$5,473.56 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. Lottery funds in the amount of$5,473.56 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

Media Center and Library Equipment

$ 5,473.56

The amounts described in this note are not reflected in the financial statements.

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MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

Note 6: 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 7: ACCUMULATED EMPLOYEES LEAVE
The Library's full-time staff earn annual leave based upon the number of years employed by the Library, up to a maximum oftwenty (20) work days per calendar year. Accrued annual leave may be carried over for one calendar year; however, after that time all unused leave will be forfeited. Unused annual leave up to the maximum accumulation will be paid at their current pay rate, to employees upon retirement or termination of employment. See Note 1- Compensated Absences
Note 8: 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 IO 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 ofyears 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 IO 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.
- 15 -

MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

Note 8: RETIREMENT PLANS

The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $205,810.69; total payroll was $244,317.15.

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 7.500/o.

Total contributions made during fiscal year 1994 amounted to $36,654.91, of which $24,306.27 was made by the Library and $12,348.64 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 of June 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 $24,306.27 was actuarially determined and represented .0046% of total contributions made by all participating employers.

- 16 -

MOULTRIE-COLQUITT COUNTY LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

Note 8: RETIREMENT PLANS
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 9: SURETY BONDS
The Library Director, Mrs. Melody S. Jenkins, is bonded in the amount of$20,000.00 with the Fidelity and Deposit Company, Baltimore, Maryland, their Bond No. 30183756, on which premium was paid through January 1, 1995.

- 17 -

MOULTRIE-COLQUITT COUNTY LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Deferred Revenue
Total Liabilities FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES
AND
CONSTRUCTION ACT
TITLE I
PUBLIC LIBRARY SERVICES

TOTALS

$ 16,715.69 $

818.77 $ 17,534.46

$ 11,242.13 5,473.56
-------------
$ 16,715.69
-------------

$ 11,242.13 5,473.56
-------------
$ 16,715.69
-------------

$

818. 77 $

818. 77

$

0.00

0.00

0.00

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

$

0.00 $

818.77 $

818.77

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

$ 16,715.69 $

818.77 $ 17,534.46

See notes to the financial statements.

- 18 -

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

EXHIBIT "H"

REVENUES
--------
State Funds Federal Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Maintenance and Operation
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
-------------------
FUND BALANCE JUNE 30

LOTTERY PROGRAMS

LIBRARY SERVICES AND
CONSTRUCTION ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTALS

$ 47,026.44

$ 47,026.44

$

8,000.00

8,000.00

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

$ 47,026.44 $

8,000.00 $ 55,026.44

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

$ 47,026.44 $

6,522.44 $ 53,548.88

4,000.00

4,000.00

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

$ 47,026.44 $

10,522.44 $ 57,548.88

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

$

0.00 $

-2,522.44 $ -2,522.44

0.00

3,341.21

3,341.21

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

$

0.00 $

818.77 $

818.77

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

See notes to the financial statements.

- 19 -

MOULTRIE-COLQUITT COUNTY LIBRARY COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30 1 1994

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Endowment Corpus
Unreserved Undesignated
Total Fund Equity

NONEXPENDABLE
TRUST FUND
------------LEVI
WILLCOXON
FUND
-------------

EXPENDABLE TRUST FUND
------------KENNEY TRUST
FUND
-------------

TOTALS
-------------

$ 129,799.88 $ 10,000.00 $ 139,799.88

304.48

56.39

360.87

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

$ 130,104.36 $ 10,056.39 $ 140,160.75

$ 100,000.00 30,104.36$

$ 100,000.00

10,056.39

40,160.75

$ 130,104.36 $ 10,056.39 $ 140,160.75
============= ============= =============

See notes to the financial statements.

- 20 -

MOULTRIE-COLQUITT COUNTY LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "1"

NONINTEREST BEARING ACCOUNTS
NationsBank of Georgia, N. A., Moultrie, Georgia
INTEREST BEARING ACCOUNTS
Moultrie National Bank, Moultrie, Georgia
Money Market Account (3.00%) Certificates of Deposit
No. 45258 (3.50%) No. 9-11020 (3.65%)
OTHER
Petty Cash

$ 60,953.16

$ 22,939.88
10,000.00 101,495.00

134,434.88

185.00

$ 195,573.04

See notes to the financial statements.

- 21 -

MOULTRIE-COLQUITT COUNTY LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "2"

Colquitt County Board of Commissioners Local Participation
Various Sources Interest Earned Other

GOVERNMENTAL FUND TYPE
GENERAL FUND

FIDUCIARY FUND TYPES
NONEXPENDABLE EXPENDABLE TRUST FUND TRUST FUND

TOTAL

$ 18,025.52
$
426.50

304.48 $

$ 18,025.52

56.39

360.87 426.50

$ 18,452.02 $

304.48 $

56.39 $ 18,812.89

See notes to the financial statements.

- 22 -

MOULTRIE-COLQUITT COUNTY LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Media Center and Library Equipment

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 95,603.44 21,088.00 21,088.00

$ 95,603.44 21,088.00 21,088.00

$ 47,026.44

47,026.44

$ 137,779.44 $ 47,026.44 $ 184,805.88
============= ============= =============

See notes to the financial statements.

- 23 -

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

SCHEDULE "4"

GOVERNMENTAL FUND TYPE
SPECIAL REVENUE FUND

$

8,000.00

See notes to the financial statements.

- 24 -

MOULTRIE-COLQUITT COUNTY LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

LOCAL SOURCES Board of Education Colquitt County
County Government Boards of Commissioners Colquitt
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Rents Sales and Services Book Sales Genealogy Seminar Laminating and Binding Local Broadcasting Services Photocopy Sales Reader/Printer Copy Sales Other

GOVERNMENTAL
FUND TYPE
------------GENERAL
FUND
-------------

FIDUCIARY FUND TYPE
------------EXPENDABLE
TRUST FUND
-------------

TOTAL
-------------

$ 45,589.00

$ 45,589.00

216,306.24

216,306.24

7,534.78 $ 3,585.85
112. 90 32,100.00

10,000.00 56.39

17,534.78 3,585.85
56.39 112. 90 32,100.00

398.02 461. 00 970.45
4,000.00
20,142.38 406.34 526.16
-------------

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

398.02 461. 00 970.45
4,000.00 20,142.38
406.34 526.16
-------------

$ 332,133.12 $ 10,056.39 $ 342,189.51
============= ============= =============

See notes to the financial statements.

- 25 -

MOULTRIE-COLQUITT COUNTY LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$ 244,317.15 61,460.73 2,864.77 8.81 14,025.13 19,225.90$ 37,933.57 32,027.54 20,147.42 1,169.17

$
219.15 6,303.29

244,317.15 61,460.73 2,864.77
8.81 14,025.13 19,445.05 44,236.86 32,027.54 20,147.42 1,169.17

6,444.66 33,285.00

51,026.44

6,444.66 84,311.44

$ 472,909.85$ 57,548.88$ 530,458.73
============= ============= =============

See notes to the financial statements.

- 26 -

MOULTRIE-COLQUITT COUNTY LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30. 1994
BOARD MEMBER ADDRESS
Mr. Bert M. Harsh, Chairman(*) 674 Fred Webb Road Moultrie, Georgia 31768
Mrs. Rebecca Bevacqua(*) 108 Tallokas Trail Moultrie, Georgia 31768
Mr. Gary W. Boley(*) 6 Quail Run Moultrie, Georgia 31768
Mr. Curtis Bynum, Jr. (*) P. 0. Box 1806 Moultrie, Georgia 31776
Mr. Max Hancock(*) 107 Loblolly Road Moultrie, Georgia 31768
Mrs. Frances Hillebrand(*) 111 Dogwood Circle Moultrie, Georgia 31768
Mr. Earnest Iverson 923 5th Street, N. W. Moultrie, Georgia 31768
Mr. James M. Jeter(*) 418 1st Street, S. E. Moultrie, Georgia 31768
Mr. James L. Kirk(*) P.O. Box 707 Moultrie, Georgia 31776
Mr. Van Platter(*) 30 Oak Lane Moultrie, Georgia 31768
Mr. Ronald O. Roberts(*) P. O. Box 158 Berlin, Georgia 31722
Mr. Jack Short (*) P. O. Box 1237 Moultrie, Georgia 31776
Mr. John W. Whitaker(*) Route 5, Cook Road Moultrie, Georgia 31708
(*) Denotes Board Members Serving as of June 30, 1994

See notes to the financial statements.

- 27 -

SCHEDULE "7"

MOULTRIE-COLQUITT COUNTY LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1994

SCHEDULE "8"

PERSONNEL
---------
Brown, Bryant, Cardwell, Cato, Clark, Cooper, Donovan, Funderburk, Gay, Gibson, Glass, Goodwin, Green, Green, Jenkins, Jordon, Matthews, McKell ar, Newton, Newton, Pope, Southerland, Tucker, Waters,

Aaron W. Catherine M. F. Leon Odelle J. Carolyn Y. Betty P. Georgie Lynn Ladonna C. Elizabeth P. Edna S. Ann W. Irene T. Mary A. Monique L. Melody S. Alice M. Elois G.
Norma s.
Chris Jean D. Peggy S. Patsy H. Gail C. Lucy

Accruals June 30, 1993 June 30, 1994

POSITION
--------
Circulation Clerk Genealogy Clerk Circulation Clerk Doerun Branch Manager Processing Clerk Cataloger Circulation Clerk Young Adult Coordinator Public Relations Director Circulation Librarian Genealogy Clerk Genealogist Circulation Clerk Circulation Clerk Director Bookmobile Librarian Reference Librarian Childrens Librarian Circulation Clerk Bookkeeper Library Assistant Berlin Branch Manager Bookmobile Assistant Circulation Clerk

SALARIES

TRAVEL

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

$

31.05

3,033.60

2,926.17

3,363.20

14,048.04

6,675.36

1,078.99

7,816.32

20,528.04 $

1,054.86

11,003.41

33.66

4,552.56

10,917.99

2,227.48

3,622.57

50,886.76

1,312.28

13,464.96

12,079.28

39,606.76

213.78

1,224.72

8,522.88

164.26

11,023.89

108.99

2,970.20

10,845.00

1,867.92
------------- -------------

$ 244,317.15 $

2,887.83

-338.26
315.20
------------- -------------

$ 244,317.15$

2,864.77

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

See notes to the financial statements.

- 28 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

MOULTRIE-COLQUITT COUNTY LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Separation ofDuties Finding Resolved Audit Control Number 6352-93-01
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 disclosed that the Library had implemented internal accounting control procedures to
provide for adequate separation ofemployee duties in the performance ofthe accounting functions and related procedures.
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Finding Resolved Audit Control Number 6352-93-03
The audit report for the year ended June 30, 1993, disclosed that the Moultrie-Colquitt County Library did not have its bank balances fully collateralized as required by the Official Code of Georgia Annotated Section 45-8-12. For the year under review, audit tests of the Moultrie-Colquitt County Library bank balances indicated that the Library complied with the State laws governing collateralization of cash deposits.
PRIOR YEAR/CURRENT-YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6352-93-02
The management ofthe Moultrie-Colquitt County Library has chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the financial statements ofthe Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, equipment and inexhaustible collections and books owned by the Library 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 to the General Fixed Assets Account Group.

SECTION ID PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

MOULTRIE-COLQUITT COUNTY LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6352-93-02
We concur with this finding; however, we feel that mention should be made of the action taken during the
subsequent year to establish accounting controls and procedures which meet the requirements for maintenance
of a General Fixed Assets Account Group.