Audit report, Thomas County Public Library System, Thomasville, Georgia, year ended June 30, 1994

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

AUDIT REPORT THOMAS COUNTY PUBLIC LIBRARY SYSTEM
THOMASVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

THOMAS COUNTY PUBLIC LIBRARY SYSTEM - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN

FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

17

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

18

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

19

SCHEDULES

1 ANALYSIS OF CASH AND CASH EQUIVALENTS

20

2 ACCOUNTS RECEIVABLE

21

THOMAS COUNTY PUBLIC LIBRARY SYSTEM - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

3

STATE

22

4

FEDERAL

23

5

LOCAL AND OTHER

24

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

25

7 MEMBERSHIP OF LIBRARY BOARD

26

8 SCHEDULE OF SALARIES AND TRAVEL

27

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

SECTION I FINANCIAL

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

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254 WASHINGTON STREET. S.W. ROOM 214
J\tianbt, &ienrgia 30334-8400
January 13, 1995

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

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Thomas County Public Library System Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Thomas County Public Library System, 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 general purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of this omission have not been determined, but are believed to be material.
94ARL-42

In our opinion, except for the effect on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Thomas County Public Library System as of June 30, 1994, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Thomas County Public Library System taken as a whole. The combining statements (Exhibits G through J) 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 general purpose financial statements of the Thomas County Public Library System. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-42

THOMAS COUNTY PUBLIC LIBRARY SYSTEM -I-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1994

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

GOVERNMENTAL FUND TYPES

FIDUCIARY

------------------------------------------- FUND TYPE

SPECIAL

CAPITAL ------------- TOTAL

GENERAL

REVENUE

PROJECTS NONEXPENDABLE (Memorandun

FUND

FUND

FUND

TRUST FUND

Only)

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

$ 56,414.42 $ 1,518.41 $ 162,168.64 $ 5,554.48$ 225,655.95

677.20

158.59

13.59

849.38

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

$ 57,091.62 $ 1,677.00$ 162,168.64 $ 5,568.07$ 226,505.33
=========== ============= ============ ========= =========

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balances Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Endowment Corpus For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 14,485.94 $ 1,677.00 $ 5,852.88 84.20 9,000.00
------------- ------------- -------------
$ 14,570.14 $ 1,677.00 $ 14,852.88
------------- ------------- -------------

$ 22,015.82 84.20
9,000.00
-------------
$ 31,100.02
-------------

$ 42,521.48 $ $ 42,521.48 $

$
$ 24,171.17

5,000.00$ 5,000.00 24,171.17

$ 24,171.17 $ 0.00 123,144.59

5,000.00$ 29,171.17 568.07 166,234.14

0.00 $ 147,315.76 $ 5,568.07 $ 195,405.31

Total Liabilities and Fund Equity $ 57,091.62 $ 1,677.00$ 162,168.64 $ 5,568.07 $ 226,505.33
============ ============ ============= ============= ===========

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

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

EXHIBIT "B"

SPECIAL

CAPITAL

TOTAL

GENERAL

REVENUE

PROJECTS

(Memorandum

FUND

FUND

FUND

Only)

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

REVENUES
--------

State Funds Federal Funds Local and Other Funds

$ 128,364.08 $ 105,000.00

$ 233,364.08

6,158.59

6,158.59

454,291.47

$ 11,965.19 466,256.66

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

Total Revenues

$ 582,655.55 $ 111,158.59 $ 11,965.19 $ 705,779.33
------------- ------------- ------------- -------------

EXPENDITURES
------------

Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay

$ 154,074.00 $ 108,806.68 $ 90,059.03 $ 352,939.71

33,376.99

118.14

33,495.13

201,768.59

665.06

17,862.08 220,295.73

114,449.52

4,000.00

334.30 118,783.82

59,325.77

3,699.90

63,025.67

465,690.09

465,690.09

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

Total Expenditures

$ 562,994.87 $ 113,471.74 $ 577,763.54 $ 1,254,230.15
------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $ 19,660.68 $ -2,313.15 $ -565,798.35 $ -548,450.82

FUND BALANCE JULY 1
-------------------

22,860.80

2,313.15

713,114.11

738,288.06

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

FUND BALANCE JUNE 30

$ 42,521.48 $

0.00 $ 147,315.76 $ 189,837.24

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

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

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

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1993
ADJUSTMENTS
Prior Year (Net)
FUND BALANCE JUNE 30, 1994

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 233,364.0B $ 500,857.08 $ -267,493.00

6,158.59

12,000.00

-5,841.41

466,256.66 455,101.03

11,155.63

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

$ 705,779.33 $ 967,958.11 $ -262,178.78
------------- ------------- -------------

$ 352,939.71 $ 481,830.55 $ 128,890.84

33,495.13

32,400.00

-1,095.13

220,295.73

243,747.85

23,452.12

118,783.82 119,487.32

703.50

63,025.67

68,606.00

5,580.33

465,690.09

631,352.89

165,662.80

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

$ 1,254,230.15$ 1,577,424.61 $ 323,194.46
------------- ------------- -------------

$ -548,450.82 $ -609,466.50 $ 61,015.68

738,288.06

614,813.07

123,474.99

0.00

-45.00

45.00

$ 189,837.24 $ 5,301.57 $ 184,535.67
============= ============= =============

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NDNEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

OPERATING REVENUE None Recorded
OPERATING EXPENSE None Recorded
NONOPERATING REVENUE Interest Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
JARRELL TRUST FUND

$

0.00

$

0.00

$

170.60

5,397.47

$

5,568.07

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

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994
Cash Flows from Investing Activities: Interest Received Net Cash Provided (Used) by Investing Activities
Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

EXHIBIT "E"

ENDOWMENT FUND
JARRELL TRUST FUND

$

157.01

$

157.01

$

5,397.47

$

5,554.48

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

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Thomas County Public Library System operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in the following paragraphs, the :financial statements 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 ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Thomas County Public Library System is determined to be a joint venture.
The Library Board consists of nine members; three members appointed by the City of Thomasville, four members appointed by the Thomas County Commission, one member appointed by the City of Ochlocknee and, one member appointed by the City ofPavo. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Thomas County Public Library System is located in Thomasville, Georgia, and serves Thomas County.
FUND ACCOUNTING
The Library uses funds to report on its :financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid :financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all 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 (other than for major capital projects) 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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
NONEXPENDABLETRUSTFUND Jarrell Trust Fund - the fund used to account for an endowment of which the corpus is to be invested and presetved intact with the resultant income to be used to provide library books approved by the Library Board.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.

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THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 are included on the
balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available).
"Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities 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 nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Thomas County Public Library System has a legally authorized nonappropriated budget which is formally
approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the 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 ofEducation, Division ofPublic Library Services, as a part of the Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF CASH DEPOSITS Cash consists of deposits (including certificates of deposit, savings accounts and N.O.W. 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.

- 10 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist of grant reimbursements due from Federal grantors for expenditures made but not reimbursed, 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.
INTERFUND TRANSACTIONS
The Library has the following types 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.
Operating transfers are recorded for all interfund transactions other than reimbursements.
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. lnterfund eliminations have not been made in the aggregation ofthis 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,
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THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or ofthe State of Georgia,

(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State ofGeorgia,

(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 Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $235,813.73. 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 Catego:ry

Bank Balance

1

$ 187,343.93

2

0.00

3

48,469.80

Total

$ 235 813,73

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THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 3: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as ofJune 30, 1994:

Project

Unearned Executed Contracts

7362-91-SB-020 7362-92-SB-0 15 7362-92-SB-0 16

$ 9,155.03 4,500.80 3,479.30

$ 17,135.13

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

Note 4: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 5: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

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THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 5: RETIREMENT PLANS

Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.

The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $238,665.32; total payroll was $343,785.53.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $42,506.61, of which $28,186.62 was made by the Library and $14,319.99 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

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THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 5: RETIREMENT PLANS
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 ofassets 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 $28,186.62 was actuarially determined and represented .0054% oftotal contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
Note 6: SURETY BONDS
The Library Director, David E. Eden, and all of the employees ofthe Thomas County Public Library System are bonded under a Commercial Blanket Bond and a Depositors' Forgery Bond in the amount of$50,000.00 with the Association ofCounty Commissioners of Georgia - Interlocal Risk Management Agency, on which the premium was paid through October 1, 1994.

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THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES ANO FUND EQUITY LIABILITIES
Accounts Payable FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES
ANO CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 1,338.50$

179.91 $ 158.59

1,518.41 158.59

$ 1,338.50 $

338.50 $ 1,677.00

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

$ 1,338.50 $

338.50 $ 1,677.00

0.00

0.00

0.00

$ 1,338.50 $

338.50 $ 1,677.00

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

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM 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 Circulation Administration
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
-------------------
FUND BALANCE JUNE 30

LOTTERY PROGRAM

LIBRARY SERVICES
AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 105,000.00

$ 105,000.00

$ 6,158.59

6,158.59

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

$ 105,000.00 $

6,158.59 $ 111,158.59

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

$ 105,000.00 $ 3,806.68 $ 108,806.68

665.06

665.06

4,000.00

4,000.00

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

$ 105,000.00 $ 8,471.74 $ 113,471.74
------------- ------------- -------------

$

0.00 $ -2,313.15 $ -2,313.15

0.00

2,313.15

2,313.15

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

$

0.00 $

0.00 $

0.00

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1994

EXHIBIT "I"

ASSETS

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

PROJECT

7362-91-SB-020 7362-92S-SB-006 7362-92-SB-015 7362-92-SB-016

TOTAL

Cash and Cash Equivalents $128,997.47 $ 15,174.48$

48.73 $ 12,732.19 $

5,215.77 $162,168.64

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

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Retainages Payable

$ 5,852.88
$

7,000.00

Total Liabilities $ 5,852.88$

7,000.00

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$ $ 123,144.59

8,174.48$ 0.00

Total Fund Equity $123,144.59 $ 8,174.48$

$ 5,852.88

$

1,000.00$

1,000.00 9,000.00

$

1,000.00$

1,000.00$ 14,852.88

48.73 $ 0.00

11,732.19 $ 0.00

4,215.77 $ 24,171.17 0.00 123,144.59

48.73 $ 11,732.19 $

4,215.77 $147,315.76

Total Liabilities

and Fund Equity $128,997.47 $ 15,174.48 $

48.73 $ 12,732.19 $

5,215.77 $162,168.64

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

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "J"

REVENUES
--------
Local and Other Funds

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

PROJECT

REGULAR 7362-91-SB-020 7362-92S-SB-006 7362-92-SB-015 7362-92-SB-016 TOTAL
----------- -------------- --------------- -------------- -------------- ------------

$ 8,313.34$

975.80 $

846.04 $ 1,001.67 $

828.34 $ 11,965.19

EXPENDITURES

Current

Program Services

$ 90,059.03

Technical Services

118.14

Circulation

17,862.08

Adninistration

334.30

Maintenance and Operations 3,699.90

Capital Outlay

$

209,142.24 $

107,341.33 $

73,810.58$

$ 90,059.03 118.14
17,862.08 334.30
3,699.90 75,395.94 465,690.09

Total Expenditures $112,073.45$ 209,142.24$ 107,341.33 $ 73,810.58$ 75,395.94$ 577,763.54

Excess of Revenues over (under) Expenditures

$-103,760.11 $ -208,166.44 $ -106,495.29 $ -72,808.91 $ -74,567.60 $-565,798.35

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 3,564.71 $ -1,070.30

1,070.30 $

-3,564.71

$ 4,635.01 -4,635.01

Total Other

Financing Sources

(Uses)

$ 2,494.41 $

1,070.30$

-3,564. 71

$

0.00

Excess of Revenues and Other

Financing Sources over

(under) Expenditures and

Other Financing Uses

$-101,265.70_ $

-207,096.14 $

FUND BALANCE JULY 1

224,410.29

215,270.62

-110,060. 00 $ 110,108.73

-72,808.91 $ 84,541.10

-74,567.60 $-565,798.35 78,783.37 713,114.11

FUND BALANCE JUNE 30

$123,144.59 $ 8,174.48 $

48.73 $ 11,732.19 $ 4,215.77 $147,315.76

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

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "1"

NONINTEREST' BEARING ACCOUNTS

Bank of Meigs, Meigs, Georgia
Bank of Thomas County, Coolidge, Georgia
Commercial Bank, Thomasville, Georgia
First Merchants Bank, Thomasville, Georgia

INTEREST BEARING ACCOUNTS

Bank of Meigs, Meigs, Georgia
N.O.W. Account (2.80%)

Bank of Thomas County, Coolidge, Georgia
Money Market Account (2.65%)

Commercial Bank, Thomasville, Georgia
Money Market Account (2.53%) Passbook Savings (3.50%)

NationsBank of Georgia, Thomasville, Georgia
Market Investment Account (2.60%) Certificate of Deposit No. 000030577

(3.30%)

Trust Company Bank of South Georgia, Albany, Georgia
Checking with Interest (2.60%)

OTHER

Petty Cash

$ 1,133.71 681.48 390.27 193.08 $ 2,398.54

$ 5,215.77

12,732.19

48.73 148,421.07

17,059.55 5,005.66

34,684.44

223,167.41

90.00 $ 225,655.95

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM ACCOUNTS RECEIVABLE JUNE 30 1 1994

SCHEDULE "2"

Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services
Various Sources Friends of the Library Interest Earned

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

FIDUCIARY FUND TYPE
------------NONEXPENDABLE TRUST FUND

TOTAL

$

158.59

$

677. 20

$

$ 13.59

158.59
677.20 13.59

$

677. 20 $

158.59 $

13.59 $

849.38

See notes to the general purpose financial statements. - 21 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM 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

$ B2,476.0B 22,944.00 22,944.00

$ 82,476.08 22,944.00 22,944.00

$ 105,000.00 105,000.00

$ 128,364.08 $ 105,000.00$ 233,364.08
============= ============= =============

See notes to the general purpose financial statements.
- 22 -

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

SCHEDULE "4"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ 6,158.59

See notes to the general purpose financial statements. - 23 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

LOCAL SOURCES County Government Board of Commissioners Thomas
OTHER SOURCES Donations Fines and Fees Interest Earned Sales and Services Photocopy Sales Library Assets Other

GOVERNMENTAL FUND TYPES

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

CAPITAL

GENERAL

PROJECTS

FUND

FUND

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

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

$ 399,999.96

$ 399,999.96

27,978.83 12,187.22
1,193.94 $

11,965.19

27,978.83 12,187.22 13,159.13

7,785.39

7,785.39

3,000.00

3,000.00

2,146.13

2,146.13

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

$ 454,291.47 $ 11,965.19 $ 466,256.66

See notes to the general purpose financial statements. - 24 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM 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 Communication and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Building and Building Improvements Equipment
Total Expenditures

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

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

$ 330,493.97 $ 87,767.77 4,476.19 727.75 8,709.35 20,404.51 56,844.45 29,875.73 21,908.49 1,499.19 287.47

2,183.63 $ 534.55 160.10
6,765.44
828.02 15,008.00

11,107.93 $ 1,194.90
4,700.00 9,250.42 65,857.32
240.26

343,785.53 89,497.22 4,636.29 7,493.19 13,409.35 30,482.95 137,709.77 29,875.73 22,148.75 1,499.19 287.47

254,601.07

254,601.07

87,992.00

230,811.64

318,803.64

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

$ 562,994.87 $ 113,471.74 $ 577,763.54 $1,254,230.15
============= ============= ============= =============

See notes to the general purpose financial statements. - 25 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30. 1994
BOARD MEMBER ADDRESS
Mr. Franklin Smith, Chairman(*) Patten Road Coolidge, Georgia 31738 Mrs. Cathie Campbell (*) 101 Winslow Drive Thomasville, Georgia 31792 Mr. Joe Craigmiles(*) 516 North Broad Street Thomasville, Georgia 31792 Mrs. Susan Currie(*) 1131 Gordon Avenue Thomasville, Georgia 31792 Ms. Anne Faulkner P. 0. Box 103 Boston, Georgia 31626 Mrs. Dean Harper Route 1, Box 178 Coolidge, Georgia 31738 Mrs. Sharon Herring(*) P. 0. Box 215 Ochlocknee, Georgia 31773 Ms. Janet Lil es 411 Junius Street Thomasville, Georgia 31799 Mr. Bill McCollum 1022 East Washington Street Thomasville, Georgia 31792 Ms. Fran Milberg 931 Blackshear Street Thomasville, Georgia 31792 Rev. I. L. Mullins (*) P. 0. Box 1233 Thomasville, Georgia 31792 Ms. Myrtle Nolan(*) P. 0. Box 75 Pavo, Georgia 31778 Mrs. Cornelia Ann Pilcher(*) P. 0. Box 75 Meigs, Georgia 31765 Mr. Edwin Simmons P. 0. Box 1089 Thomasville, Georgia 31799 Mrs. Almeda Simpson(*) 128 Crestwood Drive Thomasville, Georgia 31792 Mrs. Kay Sin~letary 325 B West P1netree Boulevard Thomasville, Georgia 31799 Mrs. Rhetta Singletary P. 0. Box 2300 Thomasville, Georgia 31799 Mr. Tom K. Vann 105 Imperial Drive Thomasville, Georgia 31792 Mr. Tommy H. Vann P. 0. Box 1479 Thomasville, Georgia 31799
(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements. - 26 -

SCHEDULE "7"

PERSONNEL
---------
Adams, Bannister, Bauer, Beaty, Beckwith, Bevard, Brooks, Brown, Bulloch, Byrd, Carter, Chatmon, Clark, Cranford, Culp, Davis, Dewell, Eason, Eden, Elliott, Ferrie, Floyd, Fogleson, Fuks, Green, Griffin, Gross, Haggerty, Hancock, Harrison, Henry, Hester, Hi 11, Jensen, Johnson, Johnson, Jones, Krech, Krier, Lambeth, Litke, Long, McCask i 11, McDuffie, Meredith, Mi 11 i ngs, Mitchell, Morse, Muserallo, Nixon, Nixon, Oxford, Page, Peters, Peters, Pugh,

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1994

SCHEDULE "8" Page 1

Mark C. Leanne Melanie A. Michael A. Betty L. Lawanda E. Dolly M. Sharon E. Joni E. Angela C. Doris M. Frances A. Drucilla Elizabeth D. Scott W.
Carol s.
Charles H. Charles L. David E. Sean V. Tari J. Rebecca A. Joann Kristina M. Linda A. Mildred H. Mary Jane Michael J.
Rebecca s.
Cameron Sam R., Jr. Kelwin L. Ramona K. Mary G. Jennifer M. Reginald D. Lakisha I. Alvin W. Dolores C. Katherine B.
Dolores s.
Faye L. Lakesha L. Jackie Heather N. Leah K. Perida A. David L. Carie L. Beverly S. Jennifer N. Anne C. Trish A. Joseph, Jr. Tonya D. Patrick M.

POSITION
--------

SALARIES

TRAVEL

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

Clerk

$

Clerk

Clerk

Clerk

Library Technical Assistant

Clerk

Library Technical Assistant

Library Technical Assistant

Clerk

Circulation Manager

Custodian

Clerk

Custodian

Clerk

Clerk

Branch Manager

Clerk

Clerk

Director

Clerk

Staff Accountant

Circulation Assistant Manager

Children's Specialist

Clerk

Library Technical Assistant

Clerk

Clerk

Clerk

Clerk

Clerk

Library Technical Assistant

Library Technical Assistant

Library Technical Assistant

Processing Manager

Clerk

Clerk

Clerk

Clerk

Clerk

Processing Assistant

Cl erk

Branch Manager

Clerk

Clerk

Cl erk

Clerk

Reference/Circulation Assistant

Clerk

Clerk

Clerk

Clerk

Branch Manager

Library Technical Assistant

Library Technical Assistant

Library Technical Assistant

Clerk

1,956.64 848.59 $
2,537.37 770.61
1,622.88 938.26 801.61
2,548.75 67 .11
13,456.00 347.75 80 .10 264.50 740.53
1,097.69 633.25
1,946.94 22.76
45,706.80 1,787.03
12,554.94 13,494.40 3,041.20
549.39 1,952.50 2,518.98
396.25 933.88 104.50
13.05 603.00 7,779.49 1,542.63 16,576.00
57.50 106.80 472.50 974.04 342.50 11,257.35 769.94 7,404.30 894.10 106.58 733.70 348.08 12,562.40 1,432.12 1,562.40 2,317.54 880.65 4,167.54 5,908.09 5,266.26 3,154.39 1,311.05

51.66
30.31
330.12 15.12 15.33
1,035.05 361.83 60.10
14.28 655.20 95.34
43.68 76.86 384.67

- 27 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1994

SCHEDULE "8" Page 2

PERSONNEL
---------
Randall, Randall, Richards, Scott, Scott, Scovel, Sculley, Smith, Smith, Smith, Strickland, Stubbs, Taylor, Thompson, Thompson, Thompson, Thompson, Tillinghast, Trotter, Turner, Vancel, Warren, Williams, Wi 11 i ams, Wilson, Winter,

Ella M. Roderick D. Mary G.
Geneva M.
Mary E.
Janice L. Kimberly L. Evelyn P.
Jessica L.
Jewel E. Mark A.
Ji 11 L. Peggy L.
Catherine s.
Elizabeth R. Iris R.
Susan s.
Nancy L. Mona
Keith Shannon L.
Carol F. Jacqueline Y. Jocelyn C. Samuel H. Jr. Martha E.

Accruals June 30, 1994

POSITION
--------
Library Technical Assistant Clerk Associate Director Clerk Custodian Clerk Automation/Reference Manager Branch Manager Clerk Circulation Assistant Clerk Library Technical Assistant Branch Manager Clerk Clerk Branch Manager Library Technical Assistant Assistant Director Circulation Assistant Custodian Clerk Children's Assistant Library Technical Assistant Clerk Maintenance Supervisor Clerk

SALARIES

TRAVEL

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

$

2,045.21

114.75

26,740.00 $

182.70

2,909.83

4.00

373.15

512.43

17,288.00

167.80

4,081.18

42.84

929.12

86.52

10,912.00

244.80

3,737.30

259.00

401. 06

50.00

3,402.68

1,072.05

28,410.00

631.19

10,555.43

120.00

841.18

18.90

11,049.50

262.86

1,595.75

697.90

28.14

12,872.00

18.27

306.00
------------- -------------

$ 343,785.53 $

4,612.77

0.00

23.52

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

$ 343,785.53 $ 4,636.29
============= =============

See notes to the general purpose financial statements. - 28 -

SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Finding Resolved Audit Control Number 7362-93-03
The audit report for the year ended June 30, 1993, disclosed that the Thomas County Public Library System 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 Library's bank balances indicated that the Library complied with the State laws governing collateralization of cash deposits.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7362-93-01
The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties.
This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Group Audit Control Number 7362-93-02
The audit report for the year ended June 30, 1993, noted that the management of the Thomas County Public Library System did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, no action was taken by the Library to establish this account group. This condition results in the general purpose 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.
Note: The Thomas County Public Library was provided an opportunity to include pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusion in this report.