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AUDIT REPORT THOMAS COUNTY PUBLIC LIBRARY SYSTEM A COMPONENT UNIT OF THOMAS COUNTY, GEORGIA
YEAR ENDED JUNE 30, 1997
---~-- - - - - - - - - - - - - -
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET
ATLANTA, GEORGIA 30334-8400

THOMAS COUNTY PUBLIC LffiRARY 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

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

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

SCHEDULE OF REVENUE

1

STATE

18

2

FEDERAL

19

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

THOMAS COUNTY PUBLIC LffiRARY SYSTEM - TABLE OF CONTENTS -
SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education
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 accompanying general-purpose financial statements of the Thomas County Public Library System, component unit of Thomas County, Georgia, as of and for the year ended June 30, 1997, as listed in the table ofcontents. These general-purpose financial statements are the responsibility ofthe Thomas County Public Library System's management. Our responsibility is to express an opinion on these generalpurpose 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 fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 confonn to generally accepted accounting principles.
The aggregate effects on the general-purpose financial statements ofthis omission have not been detennined, but are believed to be material.
97ARL-42

In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the third paragraph, the general-purpose fmancial statements referred to above present fairly, in all material respects, the financial position of the Thomas County Public Library System as of June 30, 1997, 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 perfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Thomas County Public Library System taken as a whole. The accompanying combining statements (Exhibits G and H) and the financial schedules (Schedules 1 through 4), 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. Such infonnation 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 of this report has been filed as a pennanent 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.
Z~
Claude L. Vickers State Auditor
CLV:ds 97ARL-42

THOMAS COUNTY PUBLIC LffiRARY SYSTEM

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1997

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 164,123.21

$ 59,303,73

2,390.70 $_---..:.4=,0..:;..00;..;..0;;;.;;0~

$ 166,513.91 $

4,000.00 $ 59,303.73

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ $ . 10,013.95
61.82
$ 10,075.77 $

3,990.18 9.82
4,000.00

$ 156,438.14 $ $ 156,438.14 $

0.00 $ 0.00 $

59,303.73 59,303.73

$ 166,513.91 $

4,000.00 $ 59,303.73

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

EXHIBIT "A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30, 1996

$

5,266.62 $ 228,693.56 $

157,506.79

61.79

6,452.49

1,782.53

$

5,328.41 $ 235,146.05 $====1=59:::!O,2=8=9.=32=

$

3,990.18 $

10,023.77

61.82

16.00 5,559.38

$

14,075.77 $ _ _.....;5""",5;..;.7=5.=38~

$

5,000.00 $

5,000.00 $

5,000.00

328.41

216,070.28

148,713.94

$

5,328.41 $ 221,070.28 $ _---:.1=53""",7"-o:,1.=.;3..;;.;94,=._

$

5,328.41 $ 235,146.05 $ ====1=59:=,2=8=9.=32=

-3-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1997

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30,1996

REVENUES

State Funds Federal Funds Other Funds

$ 146,903,30 $ 672,230.16

2,850.00 5,984,00
$

$ 2,904.94

149,753.30 $ 5,984.00
675,135.10

150,023.09 12,051,40
577,192.29

Total Revenues

$ 819,133.46 $ 8,834.00 $ 2,904.94 $ 830,872.40 $ 739,266.78

EXPENDITURES

Current Program Services Technical Services Circulation Administration Maintenance and Operations

$ 270,335,75 $ 42,169.35 172,945.26 173,905.04 92,699.93

8,834.00 $

$ 2,496.00

279,169.75 $ 42,169.35 175,441,26 173,905.04 92,699.93

252,170,90 35,625.86
176,230.97 169,255.25
98,039.21

Total Expenditures

$ 752,055.33 $ 8,834.00 $ 2,496.00 $ 763,385,33 $ 731,322.19

Excess of Revenues over (under) Expenditures $ 67,078.13 $

0.00 $

408.94 $ 67,487.07 $

7,944,59

FUND BALANCE JULY 1

89,360.01

0.00

58,894.79

148,254.80

140,310.21

FUND BALANCE JUNE 30

$ 156,438.14 $

0.00 $ 59,303.73 $ 215,741.87 $ 148,254.80

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

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 30,1997

EXHIBIT"C"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1996
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 146,965.12 $ 146,903.30 664,770.61 672,230.16
$ 811,735.73 $ 819,133.46

$ 302,105,84 $ 270,335.75

43,300,00

42,169.35

199,634.73 172,945.26

177,486.82 173,905.04

121,726.00

92,699.93

$ 844,253,39 $ 752,055,33

$ -32,517.66 $ 67,078.13

153,713.94

89,360,01

60.00

FUND BALANCE JUNE 30,1997

$ 121,256.28 $ 156,438.14

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 2,850.00 $ 2,850.00

6,000,00

5,984,00

$ 8,850.00 $ 8,834.00

$ 8,834.00 $ 8,834.00

$ 8,834.00 $ 8,834.00

$

16.00 $

0.00

-16.00

0,00

$

0...0..,0.. $

0.....,0.0..

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 3D. 1997

EXHIBIT"D"

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

JARRELL TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

0.00 $

0.00 $

0.00

$

382.81 $

$

-382.81 $

382.81 $ -382.81 $

253.28 -253.28

252.08

$

-130.73 $

5,459.14

252.08 -130.73 $ 5,459.14

289.28 36.00
5,423.14

FUND BALANCE JUNE 30

$

5,328.41 $

5,328.41 $ ===5:.,;.4.5..9.....1...4.....

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 3D. 1997

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Library Books and Materials
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase in Cash
Cash and Cash Equivalents - July 1

JARRELL TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

-382.81 $

-382.81 $

-253.28

190.29

$

-192.52 $

5,459.14

190.29 -192.52 $ 5,459.14

289.28 36.00
5,423.14

Cash and Cash Equivalents - June 30

$

5,266.62 $

5,266.62 $ =====5;,;,.,4;,;;5=9..1...4....

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

THIS PAGE LEFT BLANK

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Thomas County Public Library System (Library) operates pursuant to Official Code ofGeorgia 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 fmancial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the fmancial statements present all fund types of the Library.
The Library Board consists of nine members appointed by Thomas County Board of Commissioners. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. The Library 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 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 Thomas County, Georgia as defined by Governmental Accounting Standards Board. Accordingly, the Thomas County Public Library System is considered to be a component unit of Thomas County, Georgia for fmancial reporting purposes.
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.
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:

- 9-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHlliIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofspecific 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 fmancial 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 ofwhich 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 fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets.. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
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 these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
- 10-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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, copies are 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 Department ofTechnical and Adult Education 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 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 of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
- 11 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
Reimbursements of expenditures/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 ofthis data.
Note 2: DEPOSITS
COLLATERALIZAnON 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe 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.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
- 12-

THOMAS COUNTY PUBLIC LffiRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS

(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 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, 1997, the bank balances were $263,409.13. 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 fmancial 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, 1997, as follows:

Risk Category

Bank Balance

1

$ 156,851.16

2

106,557.97

3

0.00

Total

$ 263.409.13

Note 3: RISKMANAGEMENT

The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees and natural disaster.

The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and natural disaster. However, the error or omissions policy excludes coverage for sexual harassment and discrimination. 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.

- 13-

THOMAS COUNTY PUBLIC LffiRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 3: RISK MANAGEMENT

The Library participates in the Association County Commissioners of Georgia-Self Insured 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 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.

The Library has purchased a surety bond to provide additional insurance coverage as follows:

Position Covered

Amount

All Employees

$ 50,000.00

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 Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 14-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 5: RETIREMENT PLANS
Fiscal Year 1997 1996 1995

Percentage Contributed
100% 100% 100%

Required Contribution
$ 37,064.18 $ 33,315.78 $ 32,175.58

- 15 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"G"

ASSETS Accounts Receivable

LOTTERY FEDERAL

TOTALS

PROGRAM PROGRAM JUNE 30, 1997 JUNE 30, 1996

$===........=0=..0;;,;;0.... $ 4,000.00 $

4,000.00 $======1.6.',.;;;,;00==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable
Total Liabilities
FUND EQUITY
Fund Balances Unreserved Undesignated

$ 3,990.18 $ 9.82
$ 4,000.00 $

3,990.18 $ 9.82
4,000.00 $

$

0.00

0.00

0.00

16.00 16.00
0.00

Total Liabilities and Fund Equity

$=====0....0...0..... $ 4,000.00 $

4,000.00 $====16....0...0. =

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30.1997

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

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996

$ 2,850.00 $

$ 5,984.00

$ 2,850.00 $ 5,984.00 $

2,850.00 $ 5,984.00
8,834.00 $

9,843.10 12,051.40
21,894.50

$ 2,850.00 $ 5,984.00 $

$

0.00 $

0.00 $

0.00

0.00

8,834.00 $ 0.00 $ 0.00

21,894.50 0.00 0.00

FUND BALANCE JUNE 30

$ _ _......0.....0...0.... $-= 0..0..0.... $

0.....0=0"'= $

.0...=00,=

See notes to the general purpose financial statements.

- 17 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operation Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 100,863.30 23,020.00 23,020.00
----$

$ 100,863.30 23,020.00 23,020.00

2.850.00

2,850.00

$ 146,903.30 $

2,850.00 $ 149,753.30

See notes to the general purpose financial statements.

- 18-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 1997
AGENCY/FUNDING GRANT Education, U. S. Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$====5~,=98=4=.O==O

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

THIS PAGE LEFT BLANK

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Allen, Beckwith, Beckwith, Brooks, Brooks, Brooks, Brown, Byrd, Cauly, Crosby, Davis, Depew, Dewell, Donovan, Eden, Ferrie, Floyd, Goodin, Griffin, Hallman, Harden, Harvell, Herring, Hill, Lee, Lovejoy, McCree, McKinney, Mitchell, Mitchell, Mitchell, Murray, Nalin, Page, Pugh, Richards, Sanders, Scott, Simpson, Taylor, Taylor, Taylor, Taylor, Thomas, Thompson, Tillinghast,

Abbey L. Betty L. JoyD, DollyM. Elizabeth A. Kristy L. Debra L. Angela C, TinaJ, Candace L. PhillipD, Ralph L. Charles M, Georgie H.
David E.
Tari J. Rebecca A. HildaS. Mildred H. EleanorT. Brandy T. Daniel L. Rebecca A. Melanee C. Shana A. Demetrius M, Charles J. Margaret C. Jamison R. Lula S. PeridaA. Virgil L., Jr. Monica B. Trish A. Patrick M. Mary G. Teresa C. Geneva M. Jerome K. Angela H. Kari L. Kevin P, Peggy L. Sylvia M. Susan S. Nancy L.

POSITION
Branch Assistant Branch Assistant Children's Assistant Branch Manager Branch Assistant Library Assistant Branch Manager Automation Supervisor Branch Manager Reference Assistant Reference Assistant Library AssistanVSecurity Maintenance Assistant Children's Manager Director Bookkeeper/Accountant Circulation Manager Processing Manager Processing Assistant Branch Assistant Branch Assistant Library Assistant Branch Assistant Reference Assistant Branch Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Reference Supervisor Library Assistant Library Assistant Processing Assistant Library Assistant Associate Director Processing Center Children's Assistant Library Assistant Branch Manager Branch Assistant Branch Assistant Branch Manager Library Assistant Branch Assistant Assistant Director
-21 -

SALARIES

TRAVEL

$

333,70

3,517.06

2,893.68

6,642.45

156.60

1,087,77

1,459.50

16,766.53 $

4,075,80

1,698,00

10,730.25

11,023,88

4,154,59

12,448.08

55,215.35

12,636,72

15,558.38

1,081.87

2,713.63

74.40

1,036.80

5,603.20

148.05

8,212.41

1,899.44

16,63

1,928.86

753.75

104.50

500.25

17,127.04

961.98

3,699.01

13,676,60

495.80

28,458.38

17,975.16

2,325.77

33.95

793.80

5,926.51

1,210.35

9,698.28

1,327.40

1,233.43

38,982.32

240,75 14.50 19.50
132.50 818.95
32.50
162.50 805.17 647.90
86.00 718.22

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Tillman, Trotter, Vowell, Welch, Williams, Williams, Wilson, Wilson,

Alyce S. Mona Lara L. MildredW. Donna S. Jacueline Y. Dwain L. Samuel H., Jr.

POSITION
Assistant Circulation Manager Reference/Office Assistant Library Assistant Branch Manager Branch Assistant Children's Assistant Library Assistant Maintenance Supervisor

SALARIES

TRAVEL

$ 15,133.38 14,300.00 7,790.16 31.50 $ 2,905.10 2,157.79 6,640.96 14,541.88

8.00 14.00

$ 391,898.68 $ 3,700.49

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

SECTION II FINDINGS AND QUESTIONED COSTS

THOMAS COUNTY PUBLIC LffiRARY SYSTEM SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Inadequate Separation of Duties Finding Resolved Finding Control Number 7362-93-01
The audit report for the year ended June 30, 1996, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Library implemented changes in the separation of employee duties such that improved internal controls were in effect.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 7362-93-02
The audit report for the year ended June 30, 1996, 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 cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

:: trt\ f\~oO \~i Ct~<6
T43
Iqr1b-11
AUDIT REPORT THOMAS COUNTY PUBLIC LIBRARY SYSTEM A COMPONENT UNIT OF THOMAS COUNTY, GEORGIA
YEAR ENDED JUNE 30, 1997
---~-- - - - - - - - - - - - - -
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET
ATLANTA, GEORGIA 30334-8400

THOMAS COUNTY PUBLIC LffiRARY 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

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

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

SCHEDULE OF REVENUE

1

STATE

18

2

FEDERAL

19

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

THOMAS COUNTY PUBLIC LffiRARY SYSTEM - TABLE OF CONTENTS -
SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education
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 accompanying general-purpose financial statements of the Thomas County Public Library System, component unit of Thomas County, Georgia, as of and for the year ended June 30, 1997, as listed in the table ofcontents. These general-purpose financial statements are the responsibility ofthe Thomas County Public Library System's management. Our responsibility is to express an opinion on these generalpurpose 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 fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 confonn to generally accepted accounting principles.
The aggregate effects on the general-purpose financial statements ofthis omission have not been detennined, but are believed to be material.
97ARL-42

In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the third paragraph, the general-purpose fmancial statements referred to above present fairly, in all material respects, the financial position of the Thomas County Public Library System as of June 30, 1997, 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 perfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Thomas County Public Library System taken as a whole. The accompanying combining statements (Exhibits G and H) and the financial schedules (Schedules 1 through 4), 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. Such infonnation 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 of this report has been filed as a pennanent 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.
Z~
Claude L. Vickers State Auditor
CLV:ds 97ARL-42

THOMAS COUNTY PUBLIC LffiRARY SYSTEM

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1997

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 164,123.21

$ 59,303,73

2,390.70 $_---..:.4=,0..:;..00;..;..0;;;.;;0~

$ 166,513.91 $

4,000.00 $ 59,303.73

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ $ . 10,013.95
61.82
$ 10,075.77 $

3,990.18 9.82
4,000.00

$ 156,438.14 $ $ 156,438.14 $

0.00 $ 0.00 $

59,303.73 59,303.73

$ 166,513.91 $

4,000.00 $ 59,303.73

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

EXHIBIT "A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30, 1996

$

5,266.62 $ 228,693.56 $

157,506.79

61.79

6,452.49

1,782.53

$

5,328.41 $ 235,146.05 $====1=59:::!O,2=8=9.=32=

$

3,990.18 $

10,023.77

61.82

16.00 5,559.38

$

14,075.77 $ _ _.....;5""",5;..;.7=5.=38~

$

5,000.00 $

5,000.00 $

5,000.00

328.41

216,070.28

148,713.94

$

5,328.41 $ 221,070.28 $ _---:.1=53""",7"-o:,1.=.;3..;;.;94,=._

$

5,328.41 $ 235,146.05 $ ====1=59:=,2=8=9.=32=

-3-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1997

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30,1996

REVENUES

State Funds Federal Funds Other Funds

$ 146,903,30 $ 672,230.16

2,850.00 5,984,00
$

$ 2,904.94

149,753.30 $ 5,984.00
675,135.10

150,023.09 12,051,40
577,192.29

Total Revenues

$ 819,133.46 $ 8,834.00 $ 2,904.94 $ 830,872.40 $ 739,266.78

EXPENDITURES

Current Program Services Technical Services Circulation Administration Maintenance and Operations

$ 270,335,75 $ 42,169.35 172,945.26 173,905.04 92,699.93

8,834.00 $

$ 2,496.00

279,169.75 $ 42,169.35 175,441,26 173,905.04 92,699.93

252,170,90 35,625.86
176,230.97 169,255.25
98,039.21

Total Expenditures

$ 752,055.33 $ 8,834.00 $ 2,496.00 $ 763,385,33 $ 731,322.19

Excess of Revenues over (under) Expenditures $ 67,078.13 $

0.00 $

408.94 $ 67,487.07 $

7,944,59

FUND BALANCE JULY 1

89,360.01

0.00

58,894.79

148,254.80

140,310.21

FUND BALANCE JUNE 30

$ 156,438.14 $

0.00 $ 59,303.73 $ 215,741.87 $ 148,254.80

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

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 30,1997

EXHIBIT"C"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1996
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 146,965.12 $ 146,903.30 664,770.61 672,230.16
$ 811,735.73 $ 819,133.46

$ 302,105,84 $ 270,335.75

43,300,00

42,169.35

199,634.73 172,945.26

177,486.82 173,905.04

121,726.00

92,699.93

$ 844,253,39 $ 752,055,33

$ -32,517.66 $ 67,078.13

153,713.94

89,360,01

60.00

FUND BALANCE JUNE 30,1997

$ 121,256.28 $ 156,438.14

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 2,850.00 $ 2,850.00

6,000,00

5,984,00

$ 8,850.00 $ 8,834.00

$ 8,834.00 $ 8,834.00

$ 8,834.00 $ 8,834.00

$

16.00 $

0.00

-16.00

0,00

$

0...0..,0.. $

0.....,0.0..

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 3D. 1997

EXHIBIT"D"

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

JARRELL TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

0.00 $

0.00 $

0.00

$

382.81 $

$

-382.81 $

382.81 $ -382.81 $

253.28 -253.28

252.08

$

-130.73 $

5,459.14

252.08 -130.73 $ 5,459.14

289.28 36.00
5,423.14

FUND BALANCE JUNE 30

$

5,328.41 $

5,328.41 $ ===5:.,;.4.5..9.....1...4.....

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 3D. 1997

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Library Books and Materials
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase in Cash
Cash and Cash Equivalents - July 1

JARRELL TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

-382.81 $

-382.81 $

-253.28

190.29

$

-192.52 $

5,459.14

190.29 -192.52 $ 5,459.14

289.28 36.00
5,423.14

Cash and Cash Equivalents - June 30

$

5,266.62 $

5,266.62 $ =====5;,;,.,4;,;;5=9..1...4....

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

THIS PAGE LEFT BLANK

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Thomas County Public Library System (Library) operates pursuant to Official Code ofGeorgia 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 fmancial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the fmancial statements present all fund types of the Library.
The Library Board consists of nine members appointed by Thomas County Board of Commissioners. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. The Library 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 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 Thomas County, Georgia as defined by Governmental Accounting Standards Board. Accordingly, the Thomas County Public Library System is considered to be a component unit of Thomas County, Georgia for fmancial reporting purposes.
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.
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:

- 9-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHlliIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofspecific 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 fmancial 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 ofwhich 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 fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets.. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
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 these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
- 10-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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, copies are 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 Department ofTechnical and Adult Education 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 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 of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
- 11 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
Reimbursements of expenditures/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 ofthis data.
Note 2: DEPOSITS
COLLATERALIZAnON 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe 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.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
- 12-

THOMAS COUNTY PUBLIC LffiRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS

(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 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, 1997, the bank balances were $263,409.13. 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 fmancial 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, 1997, as follows:

Risk Category

Bank Balance

1

$ 156,851.16

2

106,557.97

3

0.00

Total

$ 263.409.13

Note 3: RISKMANAGEMENT

The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees and natural disaster.

The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and natural disaster. However, the error or omissions policy excludes coverage for sexual harassment and discrimination. 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.

- 13-

THOMAS COUNTY PUBLIC LffiRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 3: RISK MANAGEMENT

The Library participates in the Association County Commissioners of Georgia-Self Insured 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 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.

The Library has purchased a surety bond to provide additional insurance coverage as follows:

Position Covered

Amount

All Employees

$ 50,000.00

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 Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 14-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 5: RETIREMENT PLANS
Fiscal Year 1997 1996 1995

Percentage Contributed
100% 100% 100%

Required Contribution
$ 37,064.18 $ 33,315.78 $ 32,175.58

- 15 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"G"

ASSETS Accounts Receivable

LOTTERY FEDERAL

TOTALS

PROGRAM PROGRAM JUNE 30, 1997 JUNE 30, 1996

$===........=0=..0;;,;;0.... $ 4,000.00 $

4,000.00 $======1.6.',.;;;,;00==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable
Total Liabilities
FUND EQUITY
Fund Balances Unreserved Undesignated

$ 3,990.18 $ 9.82
$ 4,000.00 $

3,990.18 $ 9.82
4,000.00 $

$

0.00

0.00

0.00

16.00 16.00
0.00

Total Liabilities and Fund Equity

$=====0....0...0..... $ 4,000.00 $

4,000.00 $====16....0...0. =

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

THOMAS COUNTY PUBLIC LIBRARY SYSTEM

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30.1997

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

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996

$ 2,850.00 $

$ 5,984.00

$ 2,850.00 $ 5,984.00 $

2,850.00 $ 5,984.00
8,834.00 $

9,843.10 12,051.40
21,894.50

$ 2,850.00 $ 5,984.00 $

$

0.00 $

0.00 $

0.00

0.00

8,834.00 $ 0.00 $ 0.00

21,894.50 0.00 0.00

FUND BALANCE JUNE 30

$ _ _......0.....0...0.... $-= 0..0..0.... $

0.....0=0"'= $

.0...=00,=

See notes to the general purpose financial statements.

- 17 -

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operation Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 100,863.30 23,020.00 23,020.00
----$

$ 100,863.30 23,020.00 23,020.00

2.850.00

2,850.00

$ 146,903.30 $

2,850.00 $ 149,753.30

See notes to the general purpose financial statements.

- 18-

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 1997
AGENCY/FUNDING GRANT Education, U. S. Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$====5~,=98=4=.O==O

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

THIS PAGE LEFT BLANK

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Allen, Beckwith, Beckwith, Brooks, Brooks, Brooks, Brown, Byrd, Cauly, Crosby, Davis, Depew, Dewell, Donovan, Eden, Ferrie, Floyd, Goodin, Griffin, Hallman, Harden, Harvell, Herring, Hill, Lee, Lovejoy, McCree, McKinney, Mitchell, Mitchell, Mitchell, Murray, Nalin, Page, Pugh, Richards, Sanders, Scott, Simpson, Taylor, Taylor, Taylor, Taylor, Thomas, Thompson, Tillinghast,

Abbey L. Betty L. JoyD, DollyM. Elizabeth A. Kristy L. Debra L. Angela C, TinaJ, Candace L. PhillipD, Ralph L. Charles M, Georgie H.
David E.
Tari J. Rebecca A. HildaS. Mildred H. EleanorT. Brandy T. Daniel L. Rebecca A. Melanee C. Shana A. Demetrius M, Charles J. Margaret C. Jamison R. Lula S. PeridaA. Virgil L., Jr. Monica B. Trish A. Patrick M. Mary G. Teresa C. Geneva M. Jerome K. Angela H. Kari L. Kevin P, Peggy L. Sylvia M. Susan S. Nancy L.

POSITION
Branch Assistant Branch Assistant Children's Assistant Branch Manager Branch Assistant Library Assistant Branch Manager Automation Supervisor Branch Manager Reference Assistant Reference Assistant Library AssistanVSecurity Maintenance Assistant Children's Manager Director Bookkeeper/Accountant Circulation Manager Processing Manager Processing Assistant Branch Assistant Branch Assistant Library Assistant Branch Assistant Reference Assistant Branch Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Reference Supervisor Library Assistant Library Assistant Processing Assistant Library Assistant Associate Director Processing Center Children's Assistant Library Assistant Branch Manager Branch Assistant Branch Assistant Branch Manager Library Assistant Branch Assistant Assistant Director
-21 -

SALARIES

TRAVEL

$

333,70

3,517.06

2,893.68

6,642.45

156.60

1,087,77

1,459.50

16,766.53 $

4,075,80

1,698,00

10,730.25

11,023,88

4,154,59

12,448.08

55,215.35

12,636,72

15,558.38

1,081.87

2,713.63

74.40

1,036.80

5,603.20

148.05

8,212.41

1,899.44

16,63

1,928.86

753.75

104.50

500.25

17,127.04

961.98

3,699.01

13,676,60

495.80

28,458.38

17,975.16

2,325.77

33.95

793.80

5,926.51

1,210.35

9,698.28

1,327.40

1,233.43

38,982.32

240,75 14.50 19.50
132.50 818.95
32.50
162.50 805.17 647.90
86.00 718.22

THOMAS COUNTY PUBLIC LIBRARY SYSTEM SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Tillman, Trotter, Vowell, Welch, Williams, Williams, Wilson, Wilson,

Alyce S. Mona Lara L. MildredW. Donna S. Jacueline Y. Dwain L. Samuel H., Jr.

POSITION
Assistant Circulation Manager Reference/Office Assistant Library Assistant Branch Manager Branch Assistant Children's Assistant Library Assistant Maintenance Supervisor

SALARIES

TRAVEL

$ 15,133.38 14,300.00 7,790.16 31.50 $ 2,905.10 2,157.79 6,640.96 14,541.88

8.00 14.00

$ 391,898.68 $ 3,700.49

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

SECTION II FINDINGS AND QUESTIONED COSTS

THOMAS COUNTY PUBLIC LffiRARY SYSTEM SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Inadequate Separation of Duties Finding Resolved Finding Control Number 7362-93-01
The audit report for the year ended June 30, 1996, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Library implemented changes in the separation of employee duties such that improved internal controls were in effect.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 7362-93-02
The audit report for the year ended June 30, 1996, 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 cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.