Q;A ASOD ,RI C6S8 T43 ,cici~ -C(-5 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 AUDIT REPORT TIIOMAS COUNTY PUBLIC LIBRARY SYSTEM TIIOMASVILLE, GEORGIA YEAR ENDED JUNE 30, 1995 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 ALL GOVERNMENTAL FUND TYPES 3 C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS 4 D STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 5 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 20 THOMAS COUNTY PUBLIC LIBRARY SYSTEM - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES 1 CASH AND CASH EQUIVALENTS 22 2 ACCOUNTS RECEIVABLE 23 SCHEDULE OF REVENUE 3 STATE 24 4 FEDERAL 25 5 LOCAL AND OTHER 26 SCHEDULE OF EXPENDITURES BY OBJECT 6 GOVERNMENTAL FUND TYPES 27 7 LOTTERY PROGRAM 28 8 MEMBERSHIP OF LIBRARY BOARD 29 9 SCHEDULE OF SALARIES AND TRAVEL 30 SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION Ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 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 February 9, 1996 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 of and for the year ended June 30, 1995, 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 perfonn 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. 95ARL-42 In our opinion, except for the effects 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 ofJune 30, 1995, 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 offorming 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 9), as listed in the table of contents, are presented for purposes ofadditional analysis and are not a required part of the 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 of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:dt 95ARL-42 THOMAS COUNTY PUBLIC LIBRARY SYSTEM -I- JljQtzl! COUNTY E!,,!l;!L,IS:, L,ll;!RARY YSTEM QQMl:!1!::IEQ l;!AL.a~E HEl;I &.L. F!,.!!::IQ TYPE J!.!!::IE 30 1995 EXHIBIT"A" ~ Cati and Cati Equivalents Accounts Receivable GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND TOTALS (Memorandum On~l JUNE 30, 1995 JUNE 301 1994 $ 70,068.86 $ $ 1,264.60 78,342.16 $ 5,423.14 $ 153,834.16 $ 1264.60 225,655.95 849.38 Total Assets $ 70068.86 S 1,264.60 $ 78,342.16 S 5 423.14 S 155,098.76 $ 226,505.33 L.1!1:!IL.IIIE A!::IQ E!.!!::112 EQ!.!ITY LIABIL,mE Cllsh Overdraft Accounts Payable $ Expired Grant Balances Payable Retainages Payable Total Liabilities $ E!.!!::IQ EQ!.!IIX Fund Balances Re&eM!d For Endowment Corpus For State capital ouuay Projects Unreserved Unde&ignated $ Total Fund Equity $ $ 8,100.81 8100.81 S 61,968.05 $ 61 968.05 $ 1,069.55 195.05 1,264.60 $ 0.00 $ 0.00 $ 78342.16 78 342.16 $ $ 1,069.55 8,295.86 $ 22,015.82 84.20 9,000.00 $ 9 365.41 S 31,100.02 5,000.00 $ 423.14 5423.14 $ 5,000.00 $ 140 733.35 145 733.35 $ 5,000.00 24,171.17 166 234.14 195 405.31 Total Liabilities and Fund Equity $ 70068.86 S 1 264.60 S 78 342.16 $ 5423.14 S 155 098.76 $ 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 ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995 EXHIBITB 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 GENERAL FUND SPECIAL REVENUE FUND CAPITAL PROJECTS FUND TOTALS {Memorandum Onl;t} YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ 133,651.32 $ 506,232.95 $ 639,884.27 $ 1,100.00 3,106.01 $ 4,206.01 $ $ 4,447.98 4,447.98 $ 134,751.32 $ 3,106.01 510,680.93 648,538.26 $ 233,364.08 6,158.59 466,256.66 705,n9.33 $ 130,893.29 $ 31,915.19 222,935.87 158,799.25 75,894.10 $ 620,437.70 $ $ 19,446.57 $ 42,521.48 4,206.01 $ 4,206.01 $ 28,934.14 $ 17,581.69 332.51 756.50 25,816.74 73,421.58 $ 164,033.44 $ 31,915.19 240,517.56 159,131.76 76,650.60 25,816.74 352,939.71 33,495.13 220,295.73 118,783.82 63,025.67 465,690.09 698,065.29 $ 1,254,230.15 0.00 $ 0.00 ~.973.60 $ 147,315.76 -49,527.03 $ 189,837.24 -548,450.82 738,288.06 FUND BALANCE JUNE 30 $ 61,968.05 $ 0.00 $ 78,342.16 $ 140,310.21 $ 189,837.24 The notes to the general purpose financial statements are an integral part of this statement. .3. THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30. 1995 EXHIBITc REVENUES State Funds Federal Funds Local and Other Funds Total Revenues EXPENDITURES Current Program Services Technical Services Circulation Administration Maintenance and Operations Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Other Sources Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1. 1994 ADJUSTMENTS Prior Year (Net) GENERAL FUND BUDGET ACTUAL $ 133,640.40 $ 133,651.32 440,000.00 506,232.95 $ 573,640.40 $ 639,884.27 $ 174,692.54 $ 130,893.29 29,350.00 31,915.19 206,295.00 222,935.87 159,752.40 158,799.25 73,244.00 75,894.10 $ 643,333.94 $ 620,437.70 $ -69,693.54 $ 19,446.57 54,786.54 0.00 $ -14,907.00 $ 47,482.96 19,446.57 42,521.48 -784.20 FUND BALANCE JUNE 30. 1995 $ 31,791.76 $ 61,968.05 SPECIAL REVENUE FUND BUDGET ACTUAL $ 1,100.00 $ 1,100.00 6,000.00 3,106.01 $ 7,100.00 $ 4,206.01 $ 6,955.60 $ 4,206.01 $ 6,955.60 $ 4,206.01 $ 144.40 $ 0.00 0.00 $ 144.40 $ -158.59 0.00 0.00 0.00 14.19 s____o_.oo=s ____o_.oo_ The notes to the general purpose financial statements are an integral part of this statement. -4- THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCE FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1995 EXHIBIT"D" OPERATING REVENUES None Recorded OPERATING EXPENSES Current Library Books and Materials Operating Income (Loss) NONOPERATING REVENUES Interest Earned Total Income (Loss) FUND BALANCE JULY 1 FUND BALANCE JUNE 30 ENDOWMENT FUND JARRELL TRUST FUND TOTALS {Memorandum Onl~} YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ 0.00 $ 0.00 $ 0.00 $ 347.80 $ 347.80 $ 0.00 $ -347.80 $ -347.80 $ 0.00 202.87 202.87 170.60 $ -144.93 $ -144.93 $ 170.60 5,568.07 5,568.07 5,397.47 $ 5,423.14 $ 5,423.14 s _ _ _5_,5_6_8._o7_ The notes to the general purpose financial statements are an integral part of this statement. -5- THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1995 EXHIBIT"E" Cash Flows from Operating Activities: Cash Paid for Library Books and Materials Cash Flows from Investing Activities: Interest Received Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1 Cash and Cash Equivalents - June 30 ENDOWMENT FUND JARRELL TRUST FUND TOTALS {Memorandum Onl~) YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ -347.80 $ -347.80 $ 0.00 $ 216.46 $ 216.46 $ 157.01 $ -131.34 $ -131.34 $ 157.01 $ 5,554.48 $ 5,554.48 $ 5,397.47 $ 5,423.14 $ 5.423.14 $ _ _ _5_,5_5_4..4..8_ The notes to the general purpose financial statements are an integral part of this statement. -7- THOMAS COUNTY PUBLIC LIBRARY SYSTEM EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note I: 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 these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Library's accounting policies are described below. REPORTING ENTITY In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the 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 appointed be 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 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 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 EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: GOVERNMENTAL FUND TYPES - used to account for all 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 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 preserved 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 fond 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. 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 of this fund are included on the - 9- THOMAS COUNTY PUBLIC LIBRARY SYSTEM EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 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 ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. The accrual basis of accounting, as required by generally accepted accounting principle, 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. BUDGET The Thomas County Public Library System's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function, and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles. The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part ofthe Library's annual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist 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. - 10 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM EXfllBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES RECEIVABLES Receivables consist of grant reimbursements due from Federal grantors for expenditures made but not reimbursed. 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 type of interfund 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. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount ofdeposit 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 of indebtedness or other direct obligations of the United States or of the State of Georgia, - 11 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 2: DEPOSITS (4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia, (5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws 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, 1995, the bank balances were $174,639.64. The amounts ofthe 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, 1995, as follows: Risk Category 1 2 3 Total Note 3: RISK MANAGEMENT Bank Balance $ 174,060.39 0.00 579.25 $ 174,639.64 The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; and natural disaster. - 12 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 3: RISK MANAGEMENT The Library has obtained commercial insurance for risk ofloss associated with torts and assets. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any ofthe past three years. The Library has elected to self-insure for all losses related to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. In addition, the Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to these risks in the past three years. The Library participates in the Association County Commissioners ofGeorgia-Group Self-Insurance Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with Midwest Employers Casualty to provide coverage for potential losses sustained by the Fund in excess of$400,000.00 loss per occurrence, up to $2,000,000.00. 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 in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after IO years ofservice and attainment ofage 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 of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. - 13 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 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, 1995, was $272,440.22; total payroll was $368,630.66. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, 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 1995 amounted to $45,798.11, of which $32,175.58 was made by the Library and $13,622.53 was made by employees. These contributions represented 11.81% (Library) and 5% (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. - 14 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM EXIIlBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 5: RETIREMENT PLANS Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows: Total pension benefit obligation $ 15,313,743,000.00 Net assets available for benefits, at cost 14,254,785,000.00 Unfunded pension benefit obligation $ 1,058 958,000.00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. 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, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $32,175.58 was actuarially determined and represented .0057% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1995 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 BOND The Library Director, David E. Eden, and all of the employees of the 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 of County Commissioners of Georgia - Interlocal Risk Management Agency, on which the premium was paid through October 1, 1995. - 15 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995 EXHIBIT G" ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets LOTTERY PROGRAMS LIBRARY SERVICES AND CONSTRUCTION ACT TITLEI PUBLIC LIBRARY TOTALS SERVICES JUNE 30, 1995 JUNE 30, 1994 $ 0.00 _____ $ $ 1,264.60 $ _ _1_.,264~._6_0 1,518.41 158.59 $ 0.00 $ 1,264.60 $ 1,264.60 s _ _1__,sn_.oo_ LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Total Liabilities FUND EQUITY Fund Balances Unreserved Undesignated Total Liabilities and Fund Equity $ 1,069.55 $ 195.05 $ 1,264.60 $ 1,069.55 195.05 $ 1,264.60 $ 1.sn.00 1,sn.00 $ 0.00 0.00 0.00 0.00 $ 0.00 $ 1,264.60 $ 1,264.60 s _ _1_.s_n_.oo_ 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, 1995 EXHIBITH REVENUES State Funds F.ederal 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 LIBRARY SERVICES AND CONSTRUCTION ACT TITLE! PUBLIC TOTALS LOTTERY LIBRARY YEAR ENDED PROGRAMS SERVICES JUNE 30, 1995 JUNE 30, 1994 $ 1,100.00 $ $ 3,106.01 $ 1,100.00 $ 3,106.01 $ 1,100.00 $ 3,106.01 4,206.01 $ 105,000.00 6,158.59 111,158.59 $ 1,100.00 $ 3,106.01 $ $ 1,100.00 $ 3,106.01 $ $ 0.00 $ 0.00 $ 0.00 0.00 4,206.01 $ 4,206.01 $ 0.00 $ 0.00 108,806.68 665.06 4,000.00 113,471.74 -2,313.15 2,313.15 $ 0.00 $ 0.00 $ o.oo s____o._oo_ See notes to the general purpose financial statements. -17- THOMAS COUNTY PVBLIC LIBRARY SYSTEM COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1995 Cash and Cash Equivalents LIABILmESANDFUNDECUIIY LIABILmEs Accounts Payable Ralainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity REGULAR GEORGIA STATE ANANCING AND PROJECT PROJECT 7362-91-SB-020 7362-925-SB-006 $ 78,342.16 $ o.oo s ________o_.oo_ $ 78,342.16 $ $ 78,342.16 $ $ 78,342.16 $ o.oo s _______o_.oo_ o.oo s ________o._oo_ o.oo s _______o_.oo_ See notes to the general purpose financial statements. -18- EXHIBIT"r INVESTMENT COMMISSION PROJECT PROJECT 7362-92-SB-015 7362-92-SB-016 TOTALS JUNE 30, 1995 JUNE 30, 1994 $ 0.00 $ 0.00 $ 1s,342.1s s _ _ _1S..2.1_68_._64_ 1 $ 5,852.88 9,000.00 s _ _---"-14_.ss""'"""2""'.ss~ $ 24,171.17 $ 0.00 $ 0.00 s _ _ _78__,34_2_.1_6 123,144.59 $ 0.00 $ 0.00 $ 78,342.16 $ _ _..a,14..;.;7..:.;,3'-'1.;;.;5.;,;.76;;. $ 0.00 $ 0.00 $ 1e,342.1s s _ _ _1S_2_,1_68_.64_ -19- THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1995 REVENUES Local and Other Funds EXPENDITURES Current Program Services Technical Services Circulation Administration Maintenance and Operations Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES llJSES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 FUND BALANCE JUNE 30 REGULAR GEORGIA STATE FINANCING AND PROJECT PROJECT 7362-91-SB-020 7362-92$-SB-006 $ 4,028.04 $ 183.80 $ 0.10 $ 28,934.14 17,581.69 320.36 $ 756.50 $ 47,592.69 $ $ -43,564.65 $ 7.15 $ 9,155.03 9,162.18 $ -8.978.38 $ 5.00 43.83 48.83 -48.73 $ $ -1,237.78 $ -1,237.78 $ s -44,802.43 $ 123,144.59 803.90 803.90 s -8,174.48 8,174.48 -48.73 48.73 $ 78,342.16 $ o.oo s_______o.o...o.. See notes to the general purpose financial statements. -20- EXHIBIT".J" INVESTMENT COMMISSION PROJECT PROJECT 7362-92-SB-015 7362-92-SB-016 TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ 153.39 $ 82.65 $ 4,447.98 $ _ _ _1_1_,_9_6_5._19_ $ 11,885.58 $ $ 11,885.58 $ $ -11,732.19 $ $ 4,732.30 4,732.30 $ -4.649.65 $ 28,934.14 $ 17,581.69 332.51 756.50 25,816.74 73,421.58 $ -68.973.60 $ 90,059.03 118.14 17,862.08 334.30 3,699.90 465,690.09 577,763.54 -565,798.35 $ $ $ -11,732.19 $ 11,732.19 433.88 $ 433.88 $ 1,237.78 $ -1,237.78 0.00 $ 4,635.01 -4,635.01 0.00 -4,215.77 $ 4,215.77 -68,973.60 $ 147,315.76 -565,798.35 713,114.11 $ 0.00 $ 0.00 $ 78,342.16 $ _ _1_4,_7,3_1_5_,.76_ - 21 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM CASH AND CASH EQUIVALENTS JUNE 30, 1995 SCHEDULE "1" NONINTEREST BEARING ACCOUNTS Bank of Meigs, Meigs, Georgia Bank of Thomas County, Coolidge, Georgia Commercial Bank, Thomasville, Georgia Fjrst Merchant's Bank, Thomasville, Georgia INTEREST BEARING ACCOUNTS Commercial Bank, Thomasville, Georgia Passbook Savings (4.00%) Certificate of Deposit No. 41737 (5.00%) NationsBank of Georgia, Thomasville, Georgia Certificate of Deposit No. 30577 (5.25%) Trust Company Bank of South Georgia, N. A, Albany, Georgia Checking with Interest (2.65%) OTHER Petty Cash $ 180.90 547.63 436.11 178.23 $ 1,342.87 $ 50,579.25 50,000.00 5,005.66 45,746.83 151,331.74 90.00 $ 152,764.61 See notes to the general purpose financial statements. - 22 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM ACCOUNTS RECEIVABLE JUNE 30. 1995 Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services SCHEDULE "Z' GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND $ ======1=,2=6=4=60= See notes to the general purpose financial statements. - 23 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995 SCHEDULE "3" AGENCY/FUNDING GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Programs Distant Learning OTHER Education, Georgia Department of Reimbursement for Georgia Online Database System GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 87,752.16 22,944.00 22,944.00 $ $ 1,100.00 87,752.16 22,944.00 22,944.00 1,100.00 11.16 11.16 $ 133,651.32 $ 1,100.00 $=====1.3.4.=,7=5=1=.3=2 See notes to the general purpose financial statements. - 24 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 1995 SCHEDULE "4" AGENCY/FUNDING Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND $ =======3'=106===.0=1= See notes to the general purpose financial statements. - 25 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30, 1995 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 $ 440;000.04 $ 440,000.04 33,266.03 15,016.03 1,711.85 $ 9,507.46 273.65 6,457.89 4,447.98 33,266.03 15,016.03 6,159.83 9,507.46 273.65 6,457.89 $ 506,232.95 $ 4,447.98 $ 510,680.93 See notes to the general purpose financial statements. - 26 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995 SCHEDULE "6" GENERAL FUND SPECIAL REVENUE FUND CAPITAL PROJECTS FUND EXPENDITURES Operating Costs Salaries $ Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures 355,630.48 $ 95,915.66 2,636.53 146.00 16,125.11 18,402.64 68,448.21 31,649.44 30,361.95 1,121.68 1,840.15 $ 174.10 471.56 312.00 1,303.65 104.55 11,160.03 $ 1,618.34 800.00 789.46 6,106.84 25,148.02 12.15 Nonoperating Costs Building and Building Improvements Equipment 21,835.13 5,951.61 TOTAL 368,630.66 97,708.10 2,636.53 1,417.56 17,226.57 25,813.13 93,700.78 31,649.44 30,361.95 1,121.68 12.15 21,835.13 5,951.61 Total Expenditures $ 620,437.70 $ 4,206.01 $ 73,421.58 $ 698,065.29 See notes to the general purpose financial statements. - 27 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAM YEAR ENDED JUNE 30, 1995 SCHEDULE '7" EXPENDITURES Operating Costs Property Services Supplies Total Expenditures DISTANT LEARNING $ 312.00 788.00 $ ==1=.1=0=0=.o=o See notes to the general purpose financial statements. - 28 - THOMAS COUNTY PUBLIC LIBRARY SYSTEM MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30, 1995 BOARD MEMBER ADDRESS Mr. Franklin Smith, Chairman (*) Patten Road Coolidge, Georgia 31738 Ms. Cathie Campbell (*) 101 Winslow Drive Thomasville, Georgia 31792 Mr. Joe Craigmiles (*) 516 North Broad Street Thomasville, Georgia 31792 Ms. Susan Currie (*) 1131 Gordon Avenue Thomasville, Georgia 31792 Ms. Sharon Herring (*) P. 0. Box215 Ochlocknee, Georgia 31773 Rev. I. L. Mullins (*) P. 0. Box 1233 Thomasville, Georgia 31792 Ms. Myrtle Nolan (*) P. 0. Box75 Pavo, Georgia 31778 Ms. Cornelia Ann Pilcher (*) P. 0. Box75 Meigs, Georgia 31765 Ms. Almeda Simpson (*) 128 Crestwood Drive Thomasville, Georgia 31792 (*) Denotes Board Members Serving as of June 30, 1995 SCHEDULE "8" See notes to the general purpose financial statements. - 29 - THOMAS COUNJY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30 1995 SCHEDULEV PERSONNEL Adams, Beaty, Beckwith, . Beckwith, Bostick Brooks, Brown, Bulloch, Byrd, Carr, carter, Clark. Coffm, Coston, Craven, Crosby, Davis, Davis, Dewell, Eden, Ferrie, Floyd, Fogleson, Griffin, Hester, Jensen, Kirk, Lane, Long, Meredith, Millings, Mitchell, Muserallo, Nixon, Oxford, Page, Peters, Pugh, Randall, Richards, Sanders, Sanders, Scott, Scott, Sculley, Smith, Stubbs, Taylor, Taylor, Taylor, Taylor, MarkC. MichaelA. Betty L JoyD. Lisa C. DollyM. Sharon E. Joni E. Angela C. DianeM. DorisM. Drucilla Sheila P. BeverlyM. Lisa M. Candace L. Carol S. Phnlip D. Charles H. David E. TariJ. Rebecca A. Joann Mildred H. Kelwin L. MaryG. Naomil. Celina A. Faye L. Heather N. LeahK PeridaA. Carie L. Keith A. AnneC. Trish A. Joseph, Jr. Patrick M. EllaM. MaryG. Teresa C. TimothyC. Geneva M. Mary E. Kimberly L. Jewel E. Jill L. Angela H. Kari L. Kevin P. Peggy L. POSITION Library Assistant Library Assistant Branch Assistant Children's Assistant Library Assistant Branch Manager Processing Assistant Branch Assistant Circulation Manager Branch Assistant Custodian Custodian Library Assistant Library Assistant Branch Assistant Reference Assistant Branch Manager Reference Assistant Maintenance Assistant Director Accountant Circulation Assistant Manager Children's Specialist Processing Assistant Library Technical Assistant Processing Manager Library Assistant Custodian Branch Manager Branch Assistant Branch Assistant Reference/ Circulation Assistant Reference Assistant Library Assistant Branch Manager Children's Assistant Reference Assistant Library Assistant Library Assistant Associate Director Processing Manager Library Assistant Children's Assistant Custodian Automation/Children's Manager Circulation Assistant Library Assistant Branch Manager Branch Assistant Branch Assistant Branch Manager SALARIES TRAVEL $ 4,086.41 1,030.40 2,406.40 1,082.48 370.83 3,082.75 $ 10.92 8,197.69 229.78 14,n1.19 14.28 102.50 575.00 92.00 1,220.40 13.50 1,259.25 919.55 8,857.50 40.71 2,419.75 3,663.09 7.98 47,497.60 901.90 13,038.01 25.20 14,571.27 4,609.55 2,923.21 6,033.58 13,289.65 513.00 644.00 6,296.40 16.80 353.76 1,193.28 15,395.87 75.63 4,375.00 1,805.46 2,614.50 29.40 12,869.68 144.27 2,643.25 17.01 842.95 855.40 27,057.85 244.37 10,674.89 48.00 1,865.07 4,452.87 7.00 483.00 18,000.50 132.95 8,695.70 4,464.64 3,979.54 18.48 182.25 621.76 6,574.50 See notes to the general purpose financial statements. -30- PERSONNEL Thomas, Thompson, Thompson, Thompson, Thompson, Tillinghast, Trotter, Turner, Vickers, Williams, Williams, Williams, Wilson, Wilson, MarioA. Catherine S. Elizabeth R. Iris R. Susan S. NancyL. Mona Keith Colleen R. AlonzeoZ. Donna S. Jacqueline Y. Dwain L. Samuel H., Jr. Total Cash Basis Accruals June 30, 1994 THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL VEAR ENDED JUNE 30 1995 SCHEDULE "9" POSITION Security Assistant Branch Assistant Branch Assistant Branch Assistant Branch Assistant Assistant Director Circulation/Office Assistant Custodian Branch Assistant Library Assistant Branch Assistant Children's Assistant Security Assistant Maintenance Supervisor SALARIES TRAVEL $ 262.50 634.14 70.00 3,696.75 1,716.75 31,516.30 $ 925.15 12,700.85 391.00 80.00 813.38 171.00 7,717.58 1,080.00 13981.95 $ 368,630.66 $ 2,660.05 0.00 -23.52 $ 368 sao.ss s___2_636.....,_.s3,.. 1 See notes to the general purpose financial statements. -31 - SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 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, 1994, stated that the Library did not provide for adequate separation ofemployee duties in the perfonnance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This condition is a result ofmanagement'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, 1994, 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 statement 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 costs, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) Improper Appointment ofBoard Member Nonmaterial Noncompliance Audit Control Number 7362-95-01 During the year under review, Mrs. Cathie Campbell was appointed by the Thomasville City Council to serve on the Board of Trustees of the Thomas County Public Library System. The Thomasville City Council did not provide financial support to the Thomas County Public Library System during the fiscal year ending June 30, 1995. According to Official Code of Georgia Annotated Section 20-5-42 and an Opinion of the Attorney General dated January 26, 1988, only governmental agencies providing financial support to a library system are given the authority to appoint trustees. THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) Improper Appointment ofBoard Member Nonmaterial Noncompliance Audit Control Number 7362-95-01 This condition occurred because management was unaware of the requirements of Code Section 20-5-42. Corrective action should be taken by the Board to ensure that appointments to the Board are made from those governments providing financial support to the Library. SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS IBOMAS COUNTY PUBLIC LIBRARY SYSTEM PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7362-93-01 The audit report for the year ended June 30, 1995, stated that the Library showed no improvement regarding separation of employee duties in performance of accounting functions. Current budgetary constraints make it impossible to hire additional staff but the Library administration requested directions in the audit exit interview to eliminate this finding in the next audit. 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, 1995 stated that the management ofthe Thomas County Public Library did not maintain a system-wide general fixed assets account group. It should be noted that during the past year, the Library purchased software from a library system (Newton County Library System) which had a fixed asset account group accepted by the Department of Audits in prior audits, and has begun the process of establishing a general fixed asset account group for all six libraries in the county. The Thomas County Library will attempt to complete this account group for the next audit.