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1995-96-.

AUDIT REPORT THOMAS COUNTY PUBLIC LIBRARY SYS1EM A COMPONENT UNIT OF THE THOMAS COUNTY
BOARD OF COMMISSIONERS THOMASVILl..E, GEORGIA YEAR ENDED JUNE 30, 1996

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

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

SCHEDULES

1 CASH AND CASH EQUIVALENTS

18

2 ACCOUNTS RECEIVABLE

19

SCHEDULE OF REVENUE

3

STATE

20

4

FEDERAL

21

5

OTHER

22

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

23

7

LOTTERY PROGRAM

24

THOMAS COUNTY PUBLIC LIBRARY SYSTEM - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

8 MEMBERSHIP OF LIBRARY BOARD

25

9 SCHEDULE OF SALARIES AND TRAVEL

26

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 24, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members of the 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, component unit ofthe Thomas County Board of Commissioners, as of and for the year ended June 30, 1996, 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.
96ARL-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, 1996, 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 of the Thomas County Public Library System taken as a whole. The combining statements (Exhibits G and H) and the financial schedules (Schedules I through 9), as listed in the table of contents, are presented for purposes of additional 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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
~~

CLV:cm 96ARL-42

Claude L. Vickers State Auditor

THOMAS COUNTY PUBLIC LIBRARY SYSTEM - 1-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINED BALANCE SHEET
ALL FUND TYPES
JUNE 30, 1996

EXHIBIT"A"

eissm
Cash and Cash Equivalents Accounts Receivable

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

TOTALS {M!rnorandum On~} JUNE 30, 1996 JUNE 30, 1995

$ 93,152.86

$ 58,894.79 $

5,459.14 $ 157,506.79 $

153,834.16

1,766.53 $

16.00

1,782.53

1,264.60

Total Assets

$ 94,919.39 $

16.00 $ 58,894.79 $

5,459.14 $ 159,289.32 $

155,098.76

L!AILffiES ~g F!,!ND 1;.QUITY

LIABILITIES
Cash Overdraft Accounts Payable

$ $ 5,559.38

Total Liabilities

$ 5,559.38 $

FUNQEOUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated
Total Fund Equity

$ 89,360.01 $ $ 89,360.01 $

16.00 16.00

0.00 $ 0.00 $

$ 58,894.79 58,894.79 $

$

16.00 $

5,559.38

$

5,575.38 $

1,069.55 8,295.86
9,365.41

5,000.00 $ 459.14
5459.14 $

5,000.00 $ 148,713.94 153,713.94 $

5,000.00 140,733.35 145,733.35

Total Liabilities and Fund Equity $ 94,919.39 $

16.00 $ 58,894.79 $

5459.14 $ 159,289.32 $

155,098.76

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. 1996

EXHIBITB

REVENUES
State Funds Federal Funds 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:z:} YEAR ENDED
JUNE 30, 1996 JUNE 30, 1995

$ 140,179.99 $ 574,035.26
$ 714,215.25 $

9,843.10 12,051.40
$
21,894.50 $

$ 3,157.03 3,157.03 $

150,023.09 $ 12,051.40
577,192.29
739,266.78 $

134,751.32 3,106.01
510,680.93
648,538.26

$ 211,424.40 $ 35,625.86 173,830.97 169,255.25 96,686.81

$ 686,823.29 $

$

27,391.96 $

61,968.05

21,894.50 $ 21,894.50 $

18,852.00 $ 2,400.00 1,352.40
22,604.40 $

252,170.90 $ 35,625.86
176,230.97 169,255.25 98,039.21
731,322.19 $

164,033.44 31,915.19 240,517.56 159,131.76 76,650.60 25,816.74
698,065.29

0.00 $ 0.00

-19,447.37 $ 78,342.16

7,944.59 $ 140,310.21

-49,527.03 189,837.24

FUND BALANCE JUNE 30

$

89,360.01 $

0.00 $

58,894.79 $ 148,254.so s _ _1_40_.3_1_0._2_1

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, 1996

EXHIBITc

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 140,095.52 $ 488,161.00

140,179.99 574,035.26

Total Revenues

$ 628,256.52 $ 714,215.25

EXPENDITURES

Current Program Services Technical Services Circulation Administration Maintenance and Operations

$ 221,099.16 $ 36,200.00 194,439.00
167,620.78 103,700.00

211,424.40 35,625.86 173,830.97 169,255.25 96,686.81

Total Expenditures

$ 723,058.94 $ 686,823.29

Excess of Revenues over (under) Expenditures

$ -94,802.42 $

27,391.96

OTHER FINANCING SOURCES

Other Sources

74,117.75

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

-20,684.67 $

27,391.96

FUND BALANCE JULY 1, 1995

67,391.19

61,968.05

Adjustments

24.95

FUND BALANCE JUNE 30, 1996

s_ _ $ 46,731.47

89_,360_._01_

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

9,843.10 $

9,843.10

15,300.00

12,051.40

$ 25,143.10 $ 21,894.50

$ 23,878.50 $ 21,894.50

$ 23,878.50 $ 21,894.50

$

1,264.60 $

0.00

$

1,264.60 $

0.00

-1,264.60

0.00

$

0.00 $ _ _ _ _0_.00_

The notes to the general purpose financial statements are an integral part of this statement -4-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "D"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 1996

OPERATING REVENUE 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 Onlt}
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

0.00 $

0.00 $

0.00

$

253.28 $

253.28 $

347.80

$

-253.28 $

-253.28 $

-347.80

289.28

289.28

202.87

$

36.00 $

36.00 $

-144.93

5,423.14

5,423.14

5,568.07

$

5,459.14 $

5,459.14 $ =====5,=42=3=.1=4

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

THIS PAGE LEn BLANK

THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1996

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

ENDOWMENT FUND
JARRELL TRUST FUND

TOTALS {Memorandum Onl~}
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

-253.28 $

-253.28 $

-347.80

289.28

289.28

216.46

$

36.00 $

36.00 $

-131.34

5,423.14

5,423.14

5,554.48

Cash and Cash Equivalents - June 30

$

5,459.14 $

5,459.14 $ =====5,=42=3=.1=4

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, 1996

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 these notes, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups ofthe Library. The Governmental Accounting Standards Board (GASB) is the accepted standardsetting 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 governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the Thomas County Public Library System is determined to be a component unit ofthe Thomas County Board of Commissioners.

The Library Board consists of nine members appointed by Thomas County Board of Commissioners. The Board is without authority to determine the amount ofits funding, except by submission ofbudget requests to the Thomas County Board of Commissioners 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 the Thomas County Board of Commissioners. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.

The Thomas County Board of Commissioners appoints all of the Library's Board members and provides a substantial majority offunding for the operations of the Library, consequently, the Library is deemed to have a financial benefit/burden relationship with the Thomas County Board of Commissioners defined by GASB.

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 ofits operations. Fund accounting

is designed to demonstrate legal compliance and to aid financial management by segregating transactions

related to certain governmental functions or activities.

..

A fund is a separate accounting entity with a self-balancing set ofaccounts.

- 8-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

.,,
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 confonn to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost ofassets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal and Other funds under control of the 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 ofmajor capital facilities.
FIDUCIARr 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 provided 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.
- 9-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Nonexpendable trust funds are 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 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 ofaccounting 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 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 principles, is utilized by the 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'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, a copy is sent to Thomas County Board of Commissioners. After funding approval is received from the Thomas County Board of Commissioners, the Board makes revisions as necessary and adopts the budget. The 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 Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.

- 10 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit 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.
RECEIVABLES
Receivables consist ofgrant reimbursements due from State granters 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 type ofinterfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the 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.

- 11 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS
Acceptable security for deposits consists of any one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates ofindebtedness, or other obligations ofa 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 Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $184,239.41. 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.)

- 12 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

.,.
Note 2: DEPOSITS

The Library's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category

Bank Balance

1

$ 156,549.02

2

27,690.39

3

0.00

Total

$ 184,239.41

Note 3: RISK MANAGEMENT

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 illness or injuries to employees; and natural disaster.

The Library has obtained commercial insurance for risk of loss associated with torts, assets, and natural disaster. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

The Library has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years.

The Library participates in the Association County Commissioners of Georgia-Self Insured Workers' Compensation Fund, a public entity risk pool organized on July I, 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 Safety National Casualty Corporation to provide coverage for potential losses by the Fund in excess of$450,000.00 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.

- 13 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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 ofage, or after 10 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% ofthe average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 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, 1996, was $282,100.35; total payroll was $360,530.32.
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, 1996, 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 1996 amounted to $47,420.99, of which $33,315.78 was mad_e by the Library and $14,105.21 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.

- 14 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: RETIREMENT PLANS

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, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1,585,541,000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. 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, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of $33,315.78 was actuarially determined and represented .0055% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 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, Mr. 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, 1996.

- 15 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

EXHIBIT G"

ASSETS Accounts Receivable

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

0.00 $

16.00 $

s_ _ _ 1s.oo

1._264:i:.i:i:i.6.0.

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable

Total Liabilities

FUND EQUITY

Fund Balances

Unreserved

Undesignated

$

Total Liabilities and Fund Equity

$

$ $
0.00 0.00 $

16.00 $ 16.00 $

16.00 $ 16.00 $

1,069.55 195.05
1,264.60

0.00 16.00 $

0.00

0.00

1s.oo s _ _ _1._264_.60_

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. 1996

EXHIBIT "H"

REVENUES
State Funds Federal Funds
Total Revenues EXPENDITURES
Current Program Services
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE! PUBLIC LIBRARY
SERVICES

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

9,843.10

$

$

9,843.10 $

$ 12,051.40
12,051.40 $

9,843.10 $ 12,051.40
21,894.50 $

1,100.00 3,106.01
4,206.01

$

9,843.10 $

$

0.00 $

0.00

12,051.40 $ 0.00 $ 0.00

21,894.50 $ 0.00 $ 0.00

4,206.01 0.00 0.00

FUND BALANCE JUNE 30

$

0.00 $

o.oo s___.....,o_.oo_s ____o._oo_

See notes to the general purpose financial statements.

-17 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "1"

NONINTEREST BEARING ACCOUNTS
Bank of Meigs. Meigs, Georgia
Bank ofThomas County, Coolidge, Georgia
Commercial Bank, Thomasville, Georgia
First Merchants Bank, Thomasville, Georgia
INTEREST BEARING ACCOUNTS
Commercial Bank, Thomasville, Georgia
Certificate of Deposit No. 41737 (5.00%)
Nations Bank of Georgia, Thomasville, Georgia
Certificate of Deposit No. 305TT (5.32%)
Thomasville National Bank, Thomasville, Georgia
N.O.W. Account (3.00%)
OTHER
Petty Cash

$

315.35

525.86

535.42

128.36 $

1,504.99

$ 50,000.00

5,005.66

100,890.14

155,895.80

90.00 $ 157,490.79

See notes to the general purpose financial statements.

- 18 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM ACCOUNTS RECEIVABLE JUNE 30. 1996

SCHEDULE "Z'

Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services
Various Source Donations

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ $ _ _ _ _1;.i.;,7~6~6;.;:;.5~3

$

1 766.53 $

16.00 $

16.00 1,766.53

16.00 $====1=,7=8=2-=53=

See notes to the general purpose financial statements.

- 19 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Technology Installation
OTHER Education, Georgia Department of Reimbursement for Georgia Online Database System

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 94,207.52 22,944.00 22,944.00
$

$ 9,843.10

94,207.52 22,944.00 22,944.00
9,843.10

84.47

84.47

$ 140,179.99 $

9,843.10 $ 150,023.09

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 1996

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
$ ====1=2,=05=1.4=0

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

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

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

488,161.02

$ 488,161.02

56,828.47 14,799.90 2,811.38 $
10,741.56 692.93

3,157.03

56,828.47 14,799.90
5,968.41
10,741.56 692.93

$

574,035.26 $

3,157.03 $ 577,192.29

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996

SCHEDlJLE "6"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

$ 359,699.51 $ 99,700.09 3,896.72
25,794.51 22,679.61 102,412.02 34,905.00 26,842.46 2,024.41

830.81 135.49
4.47 $
79.71 11,000.92

$
2,400.00 7,557.58
567.10

360,530.32 99,835.58 3,896.72 2,404.47 25,794.51 30,316.90
113,980.04 34,905.00 26,842.46
2,024.41

8,868.96

9,843.10

12,079.72

30,791.78

Total Expenditures

$ 686,823.29 $ 21,894.50 $ 22,604.40 $ 731,322.19

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAM YEAR ENDED JUNE 30, 1996
EXPENDITURES Nonoperating Costs Equipment

SCHEDULE '7
TECHNOLOGY INSTALLATION $-=========9=,84=3=.1=0

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30. 1996
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
Mrs. Susan Currie (*) 1131 Gordon Avenue Thomasville, Georgia 31792
Mrs. Sharon Herring (*) P.O. Box215 Ochlocknee, Georgia 31773
Rev. I. L. Mullins (*) P. 0. Box 1233 Thomasville. Georgia 31792
Ms. Myrtle Nolan (*)
P. 0. Box35
Pavo, Georgia 31778
Mrs. Cornelia Pilcher (*) P.O. Box75 Meigs, Georgia 31765
Rev. William Seel (*) 121 Springdale Circle Thomasville, Georgia 31792
Mr. Earl Williams (*) 140 Felix Street Thomasville, Georgia 31792
(*) Denotes Board Members Serving as of June 30, 1996

SCHEDULE "8"

See notes to the general purpose financial statements.

- 25 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

PERSONNEL

Adams, Allen, . Baggett, Bearss, Beckwith, Beckwith, Brooks, Brooks, Brown, Byrd, Carter, Cauley, Crosby, Davis, Davis, Depew, Dewell, Eden, Ferrie, Floyd, Griffin, Hallman, Harden, Herring, Hill, Lee, Millings, Mitchell, Murray, Muserallo, Nalin, Page, Richards, Sanders, Scott, Scott, Sculley, Stubbs, Taylor, Taylor,

Marke. AbbyL. MichelleJ. Celina A. Lane Betty L. Joyo. DollyM. Elizabeth A. Sharon E. Angela C. Doris M. Tina Candace L. Carol S. Phillip 0. Ralph Charles H. David E. Tari J. Rebecca A. Mildred H. EleanorT. Brandy N. Rebecca A. Melanee C. Shana A. Leah K. Perida A. Virgil L., Jr. Carie L. Monica 8. Trish A. MaryG. Teresa C. Geneva M. MaryE. Kimberly L. Jilll. Angela H. Kari L.

POSITION
Library Assistant Branch Assistant Branch Assistant Custodian Branch Assistant Children's Assistant Branch Manager Library Assistant Processing Assistant Automation Supervisor Custodian Branch Manager Reference Assistant Branch Manager Reference Assistant Library Assistant/Security Maintenance Assistant Director Bookkeeper/Accountant Circulation Manager Processing Assistant Branch Assistant Branch Assistant Branch Assistant Reference Assistant Branch Assistant Branch Assistant Reference Supervisor Library Assistant Reference Assistant Library Assistant Processing Assistant Associate Director Processing Manager Children's Assistant Custodian Children's Manager Library Assistant Branch Manager Branch Assistant

See notes to the general purpose financial statements. -26-

SALARIES

TRAVEL

$

586.63

334.88

364.50

362.25

3,002.18

4,526.48

6,125.00 $

273.60

1,800.29

15,500.04

92.00

4,884.38

7,127.53

1,663.78

6,014.68

4,375.39

4,961.04

50,919.66

12,797.30

14,850.12

2,810.11

523.20

302.40

98.70

357.93

252.00

1,459.19

14,440.52

110.45

4,638.36

375.95

13,141.50

27,700.08

17,277.28

3,447.59

172.50

9,801.20

3,678.75

5,771.00

452.25

5.04
410.38
60.00 10.00 1,437.36 30.00 168.00
362.40 4.00
249.50 334.55
13.00 9.75 34:00

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

"
PERSONNEL

Taylor, Taylor, Thompson, Thompson, Thompson, Thompson, Tillinghast, Tillman, Trotter, Vowell, Williams, Williams, Wilson, Wilson, Wood,

Kevin P. Peggy L. Catherine S. Elizabeth R.
Iris R.
Susan S. Nancy L. Afyce S. Mona Lara L. Donna S. Jacqueline Y. Dwain L. Samuel H., Jr. Helen E.

POSITION

SALARIES

TRAVEL

Branch Assistant

$

Branch Manager

Branch Assistant

Branch Assistant

Branch Assistant

Branch Assistant

Assistant Director

Assistant Circulation Manager

Reference/Office Assistant

Library Assistant

Branch Assistant

Children's Assistant

Library Assistant

Maintenance Supervisor

Custodian

299.00 8,632.40 $
9.50 245.00 3,723.25 1,204.45 35,068.40 10,984.68 13,550.04 6,279.15 2,393.65 12,252.07 4,353.18 12,989.86 1,173.00

156.25
534.49 26.00 52.00

$

360,530.32 $ ===3=,8=9=6=.7=2

See notes to the general purpose financial statements. -27 -

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, 1996
PRIOR YEAR
" AUDIT FOLLOW-UP/RESOLUTION Improper Appointment ofBoard Member Finding Resolved Audit Control Number 7362-95-01
The audit report for the year ending June 30, 1995, stated that 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 20-542 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. During the year under review,
action was taken by the Board ofTrustees to amend the Library's Constitution and Bylaws and properly reflect the appointment of members by the financially supporting governmental agency only.
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, 1995, stated that the Library did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, the Library made some improvements regarding seperation of employee duties, but still did not achieve ah adequate degree ofinternal control. This condition is a result of management's decision to limit the number ofadministrative staffmade 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 Account Group Audit Control Number 7362-93-02
The audit report for the year ended June 30, 1995, 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, the Thomas County Public Library System did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the 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.