Audit report, Roddenbery Memorial Library, Cairo, Georgia, year ended June 30, 1997

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AUDIT REPORT RODDENBERY MEMORIAL LIBRARY
CAIRO, GEORGIA YEAR ENDED JUNE 30, 1997

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

RODDENBERY MEMORIAL LIBRARY - 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 AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

7

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

8

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

9

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

11

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

21

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

22

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

24

K

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

25

RODDENBERY MEMORIAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

26

2

FEDERAL

27

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

28

4 SCHEDULE OF SALARIES AND TRAVEL

29

SECTIONll 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
June 11, 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 Roddenbery Memorial Library 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 Roddenbery Memorial Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Roddenbery Memorial Library's management. Our responsibility is to express an opinion on these general-purpose 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 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.
In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Roddenbery Memorial Library as of June 30, 1997, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general-purpose financial statements, during fiscal year 1997, the Library completed a comprehensive inventory of its general fixed assets for inclusion in the general-purpose financial statements. This change is in accordance with generally accepted accounting principles.

97ARL-43

Our audit was perfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Roddenbery Memorial Library taken as a whole. The accompanying combining and individual fund statements (Exhibits G through K) and the fmancial schedules (Schedules 1 through 4), as listed in the table ofcontents, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit of the general-purpose fmancial 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.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 97ARL-43

RODDENBERY MEMORIAL LIBRARY

RODDENBERY MEMORIAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1997

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
General Fixed Assets Land Buildings Improvements Other Than Buildings Equipment Inexhaustible Collections and Books

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

78,264.25 $

1,262.15

93.22

Total Assets

$

78,357.47 $ ======1:,,2=6;;;;2,=15=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Funds Held for Others
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For Continuation of Federal Program For Endowment Corpus
Unreserved Designated for Library Courtyard Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

24,081.90

$

24,081.90

$

1,262.15

$

54,275.57

$

54,275.57 $

0.00 1,262.15

$

78,357.47 $ ======1:,,2=6~2':,;,;15~

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

EXHIBIT "A"

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL FIXED ASSETS

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

$

29,315.99

$

108,842.39 $

184,218.89

82,500.00

82,500.00

66.48

159.70

216.39

$

40,000.00

40,000.00

40,000.00

1,440,088.71

1,440,088.71

1,398,280.00

44,790.00

44,790.00

42,929.00

516,590.00

516,590.00

513,094.00

0.00

0.00

$

111,882.47 $

2,041,468.71 $ 2,232,970.80 $ 2,178,738.28

$

4:.l..,1:...:.7...:.4:..:;.0=..8

$

4:.l..,1:...:.7...:.4.:..:;0=..8

$

24,081.90 $

17,821.24

4,174.08

4,807.84

$

28,255.98 $

22,629.08

$

2,041,468.71 $ 2,041,468.71 $ 1,994,303.00

$

13,737.11

1,262.15 13,737.11

130.20 13,737.11

93,971.28

148,246.85

3,172.40 144,766.49

$

107,708.39 $

2,041,468.71 $ 2,204,714.82 $ 2,156,109.20

$

111,882.47 $

2,041,468.71 $ 2,232,970.80 $ 2,178,738.28

-3-

RODDENBERY MEMORIAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 1997

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

GOVERNMENTAL FUND TYPES

GENERAL

SPECIAL REVENUE

FUND

FUND

TOTAL

$ 126,154.44 $ 400,535.39
$ 526,689.83 $

2,850.00 $ 4,000.00
6,850.00 $

129,004.44 4,000.00
400,535.39
533,539.83

$ 112,544.75 $ 15,161.25 88,133.89
194,568.88 75,305.35 34,889.12

$ 520,603.24 $

$

6,086.59 $

48,188.98

4,333.05 $
1,385.00 5,718.05 $ 1,131.95 $
130.20

116,877.80 15,161.25 88,133.89
194,568.88 76,690.35 34,889.12
526,321.29
7,218.54
48,319.18

FUND BALANCE JUNE 30

$

54,275.57 $

1,262.15 $ =====5:::::l5,:=53:.=7==7:.:=,2

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

EXHIBIT"B"

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

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

$ 129,004.44 $ 133,608.98

4,000.00

4,089.73

$

4;.:.; ,2; ;. ;4,-"-0", ,.8", -5

404,776.24

375,407.70

$

4,240.85 $ 537,780.68 $ 513,106.41

$

985.93 $ 117,863.73 $ 118,098.23

15,161.25

14,528.05

88,133.89

83,034.64

194,568.88

183,074.44

76,690.35

151,228.91

8,780.59

43,669.71

$

9,766.52 $ 536,087.81 $ 549,964.27

$

-5,525.67 $

1,692.87 $

-36,857.86

98,066.30

146,385.48

183,243.34

$

92,540.63 $ 148,078.35 $ 146,385.48

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THIS PAGE LEFT BLAHK

RODDENBERY MEMORIAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1997

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 125,629.00 $ 360,615.00

126,154.44 400,535,39

Total Revenues

$ 486,244.00 $ 526,689.83

EXPENDITURES

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

$ 114,592,00 $ 15,128,00 91,355.00
185,070,00 80,099.00

112,544,75 15,161.25 88,133,89
194,568,88 75,305,35 34,889,12

Total Expenditures

$ 486,244,00 $ 520,603.24

Excess of Revenues over (under) Expenditures $

0.00 $

6,086.59

FUND BALANCE JULY 1,1996

50,901.50

48,188.98

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

2,850.00 $

2,850,00

4,000.00

4,000,00

$

6,850,00 $

6,850,00

$

5,465.00 $

4,333,05

1,385,00

1,385,00

$

6,850,00 $

5,718,05

$

0.00 $

1,131.95

130.20

130.20

FUND BALANCE JUNE 30,1997

$

50,901.50 $=~54,;;',;;,;27;.;;;5~.5;,;..7

$

130,20 $==1=,2=6=2';,,;,1=5

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

RODDENBERY MEMORIAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30,1997

EXHIBIT"D"

LILLA BELLE RODDENBERYI
HARRIS JEFFERSON MEMORIAL
FUND

EDWARD A
WIGHT MEMORIAL
FUND

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

OPERATING REVENUES

None Recorded

$

0.00 $

0,00 $

0.00 $

0.00

OPERATING EXPENSES

Current

Courtyard/Garden Maintenance

Library Books and Materials

$

$ -97.88

-984,50 $

-984,50 -97.88 $

-801,76

Total Operating Expenses

$

-97.88 $

-984.50 $

-1,082.38 $

-801.76

Total Operating Income (Loss) $

-97.88 $

-984,50 $

-1,082,38 $

-801.76

NONOPERATING REVENUES

Interest Earned

543,26

286.16

829.42

846.50

Total Income (Loss)

$

445,38 $

-698.34 $

-252,96 $

44.74

FUND BALANCE JULY 1

8,966.06

6,454.66

15,420.72

15,375.98

FUND BALANCE JUNE 30

$ ===9=,4==1=1==.44= $

5,756.32 $

15,167.76 $===15=.4=2=0==.7=2

The notes to the general purpose financial statements are an integral part of this statement. -8-

RODDENBERY MEMORIAL LIBRARY COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30,1997

EXHIBIT"E"

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

ENDOWMENT FUNDS

LILLA BELLE

RODDENBERYt

HARRIS

EDWARD A,

JEFFERSON

WIGHT

MEMORIAL

MEMORIAL

FUND

FUND

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

$

-97,88

$

-97.88 $

-801.76

$

-984,50

-984.50

$

----:9:..7:..8:.:8:.~ $

-984,50 $

-1,082.38 $

-801.76

$

476,78 $

327.18 $

803.96 $

882,16

-5,000,00

-5,000.00

$

..4.:.7..;6,.;,:7,;.8;,,~ $

-4,672.82 $

-4,196,04 $

882.16

$

378,90 $

-5,657.32 $

-5,278.42 $

80.40

8,966.06

6,413,64

15,379.70

15,299,30

Cash and Cash Equivalents - June 30

$

9,344.96 $

756.32 $

10,101.28 $ ====15;,:,,3=7=9=.7=0

The notes to the general purpose financial statements are an integral part of this statement. -9-

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
I

RODDENBERY MEMORIAL LffiRARY

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Roddenbery Memorial Library (Library) 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 departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups ofthe Library.
The Library Board consists of three members; one member appointed by the City of Cairo, one member appointed by the Grady County Board of Commissioners and one member appointed by the Grady County Board of Education. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The 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 Roddenbery Memorial Library is therefore determined to be a joint venture.
FUND ACCOUNTING
The Library uses funds and an account group 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. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
The general purpose fmancial 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 and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.

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RODDENBERY MEMORIAL LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUNDS Lilla Belle RoddenberylHarris Jefferson Memorial 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 purchase books and materials for the library collection.
Edward A. Wight Memorial 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 maintain a garden or patio area designated to the memory of Edward A. Wight.
EXPENDABLE TRUST FUNDS Roddenbery Memorial Library Building Maintenance Trust Fund - the fund used for maintenance and repair of the Library and equipment at the discretion of the Board.
Roddenbery Memorial Library Fund - the fund used for the enhancement and improvement of the Library at the discretion of the Board.
Wessie Connell Memorial Scholarship and Staff Development Fund - the fund used for staff development of library assistants at the discretion of the Board.
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes land, buildings and equipment.
BASIS OF ACCOUNTING
The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust 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
- 12-

RODDENBERY MEMORIALLIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by 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.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Roddenbery Memorial Library'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. .

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RODDENBERY MEMORIAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(l) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.

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RODDENBERY MEMORIAL LIDRARY

EXHIDIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value as of the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that . do not add to the value of the assets or materially extend the useful lives of the assets is not capitalized. Infrastructure assets are not capitalized by the Library. The values of inexhaustible collections and books at the Library are not readily determinable, therefore, the Library has not capitalized them. In the past, it had been the po~icy of the Library not to maintain a General Fixed Assets Account Group. The reporting of General Fixed Assets is in accordance with generally accepted accounting principles.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.

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RODDENBERY MEMORIAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS AND INVESTMENTS
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 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 ofthe 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,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

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RODDENBERY MEMORIAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS

(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 $95,097.67. The bank balances were entirely covered by Federal depository insurance or by collateral held by the Library or the Library's agent in the Library's name.

CATEGORIZAnON OF INVESTMENTS At June 30, 1997, the carrying amount of the Library's total investments was $82,500.00 and consisted entirely of funds in the Local Government Investment Pool administered by the Community Foundation of Southwest Georgia, Incorporated. This amount is not required to be categorized since the Library did not own any specific identifiable securities in the pool. The investment policy of the Community Foundation of Southwest Georgia, Incorporated for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: GENERAL FIXED ASSETS

A summary of changes in the General Fixed Assets Account Group during the fiscal year are as follows:

Balance July 1, 1996

$

Retroactive Restatement of Prior Year Balances

BalanceJuly 1, 1996

Restated

$

Additions

Balance June 30, 1997

$

Land

Buildings

Improvements Other Than Buildings

Equipment

0.00 $

0.00 $

0.00 $

0.00 $

Total 0.00

40.000.00 1.398,280.00

42,929.00

513,094.00 1,994.303.00

40,000.00 $ 1,398,280.00 $ 41.808.71
40,00000 $ 1440088.71 $

42,929.00 $ 513,094.00 $ 1,994,303.00

1,861,00

3.496.00

47,165.71

4479000 $ 51659000 $ 204146871

Note 4: 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.

- 17 -

RODDENBERY MEMORIAL LffiRARY

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 4: RISK MANAGEMENT

The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. 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 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 surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

All Employees

$ 50,000,00

Note 5: 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 fmancial position.

Note 6: ACCUMULATED EMPLOYEES' LEAVE

The Library's professional and nonprofessional employees working at least 20 hours per week earn vacation leave according to their length of service ranging from 4 to 14 hours per month. Professionals and nonprofessionals may accumulate up to 120 and 80 hours, respectively. Employees are paid at their current rate of pay, for one-half of all unused accumulated vacation leave upon retirement or termination of employment. See Note 1- Compensated Absences

Note 7: 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

- 18 -

RODDENBERY MEMORIAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 7: RETIREMENT PLANS

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 IRS 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:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 25,950,82 $ 25,440.91 $ 23,809.55

- 19-

RODDENBERY MEMORIAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 3D. 1997

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

LOTTERY PROGRAM

FEDERAL PROGRAM

TOTALS JUNE 30,1997 JUNE 30,1996

$

0.00 $

1,262.15 $

1,262.15 $===1,;,;;9=2;,.;.4,;,,9

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated
Total Fund Equity

$

-:6;,:02.;,;::2,:;. 9

$

1,262.15 $

1,262.15 $

130.20

$

-:0;.;.:.0:..::..0

0.00

0.00

0.00

$

0.00 $

1,262.15 $

1,262.15 $

1.;.:3:.::.0:.:;.2.:;. 0

Total Liabilities and Fund Equity

$

0.00 $

1,262.15 $

1,262.15 $ ===1,;,;;9=2;,.;.4,;,,9

See notes to the general purpose financial statements.

- 20-

RODDENBERY MEMORIAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1997

EXHIBIT "H"

REVENUES
State Funds Federal Funds
Total Revenues
EXPENDITURES
Current Program Services. Technical Services Maintenance and Operations
Total Expenditures
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

$

$

2,850.00 $

$ 4,000.00
4,000.00 $

2,850.00 $ 4,000.00
6,850.00 $

10,000.00 4,000,00
14,000.00

$

1,465.00 $

1,385.00

$

2,850.00 $

$

0.00 $

0.00

2,868.05 $
2,868.05 $ 1,131.95 $
130.20

4,333.05 $ 1,385.00 5,718.05 $ 1,131.95 $
130.20

13,797.90 71.90
13,869.80 130.20 0.00

FUND BALANCE JUNE 30

$

0.00 $

1,262.15 $

1,262.15 $=====13,==0=,=.2==0

See notes to the general purpose financial statements.

- 21 -

RODDENBERY MEMORIAL LIBRARY COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1997

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

NONEXPENDABLE TRUST FUNDS

LILLA BELLE

RODDENBERYI

HARRIS

EDWARD A.

JEFFERSON

WIGHT

MEMORIAL

MEMORIAL

FUND

FUND

$

9.344.96 $

756.32

5.000.00

66.48

$

9.411.44 $

......;;;o5..7.5.;,;;6;;.;;.3=.2

LIABILITIES AND FUND EQUITY LIABILITIES
Funds Held for Others FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

$

8.737,11 $

5.000,00

674.33

756,32

$

9.411.44 $

--:5::.r..7:..::5~6::.::.3:::..2

$

9.411.44 $ _ _..........5..,.7..5..6.;,;;.3.2..

See notes to the general purpose financial statements.

- 22-

EXHIBIT"'"

EXPENDABLE TRUST FUNDS

RODDENBERY

WESSIE CONNELL

MEMORIAL

MEMORIAL

LIBRARY

RODDENBERY

SCHOLARSHIP

BUILDING

MEMORIAL

AND STAFF

MAINTENANCE

LIBRARY

DEVELOPMENT

TRUST FUND

FUND

FUND

AGENCY FUND

TOTALS

JUNE 30,1997

JUNE 30,1996

$

5,973.41 $

3,960.69 $

5,106.53 $

4,174.08 $

29,315.99 $

118,172.57

77,500.00

82,500.00

66.48

122.29

$

5,973.41 $

81,460.69 $

5,106.53 $

4,174.08 $

111,882.47 $ ==,.;,1.;.;18;;.:;,2;;;;9;.,;,4=.8=6

$

4,174.08 $

4,174.08 $

4,,",",8=.;:0;.;.7.;.;;;.84-"-

$

5,973.41 $

81,460.69 $

$

5,973.41 $

81,460.69 $

$

5,973.41 $

81,460.69 $

-.;5""",. ;. ;10:;. ;:;6. ;.; .5;.;:;. 3 5=.1,. :.;10=.;:6;.:.;:.5;.;:;. 3
5,106.53 $

$

13,737.11 $

13,737.11

93,971.28

99,749.91

$

107l08.39 $ _ _...:.1..:.;13""",4..;..;8;.;.7.;.;;;.0=.,2

4,174.08 $

111,882.47 $ _ _.1...1..8..,.2..9.4,.,;;,;;;.8=6

- 23-

RODDENBERY MEMORIAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 1997

EXHIBIT"J"

See notes to the general purpose financial statements.

24-

RODDENBERY MEMORIAL LIBRARY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE AGENCY FUND YEAR ENDED JUNE 30,1997

EXHIBIT "K"

COMMUNITY GIRLS PROJECT
ASSETS Cash and Cash Equivalents

BALANCE JULY 1,1996

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30,1997

$

4,807,84 $

146,24 $

780.00 $ ......

4.,.17..4.;..;;,0""=8

LIABILITIES Funds Held for Others

$

4,807.84 $

146.24 $

780.00 $ .....

4..,.1..7..4..=,0.8...

See notes to the general purpose financial statements.

- 25-

RODDENBERY MEMORIAL LIBRARY 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

$

101,826.44

12,164.00

12,164.00

-----$

$ 101,826.44 12,164.00 12,164.00

2,850.00

2,850.00

$

126,154.44 $

2,850.00 $ 129,004.44

See notes to the general purpose financial statements,

- 26 -

RODDENBERY MEMORIAL LIBRARY 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
$ _=-=_ _4;.r,;;'0~0,;;,;0.;,;,0~0

See notes to the general purpose financial statements.

- 27 -

RODDENBERY MEMORIAL LIBRARY SCHEDULE OF EXPENDITURES LOTIERY PROGRAM YEAR ENDED JUNE 30, 1997
EXPENDITURES Program Services Maintenance and Operations

SCHEDULE "3"

ASSISTIVE TECHNOLOGY

$

1,465.00

1,385.00

$

2,850.00

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

RODDENBERY MEMORIAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30.1997

SCHEDULE "4"

PERSONNEL

Anderson, Bell, Boudet, Crosson, David, Evans, Gibs, Groves, Hall, Hendrix, Hester, Johnson, Johnson, Joines, Kaye, Morgan, Phillips, Pope, Pope, Ray, Roberts, Shepherd, Simmons, Vasquez, Walker, Ward,

Shellon A. Harrison G. Janet R. Tawana E. Catherine Melvin C. Michelle D. Teresa L. Jonathan A. Heather G. Heather R. Cynthia W. Kimberly H. Jeremiah P. Alan L. AmberK. Teri Drucilla S. Jenny L. Jino Clara J. S. Mathew Arlisha L. Virginia G. Mary S. ChristyW.

POSITION
AV/Maintenance Supervisor Security Assistant Director Library Technical Assistant Circulation Supervisor Housekeeper/Gardener Page Children's Librarian Computer Specialist Library Assistant - Children Services Page Special Assistant Assistant Bookkeeper Page Director Page Library Assistant - Outreach Bookkeeper Page Housekeeper/Gardener Library Assistant - Public Services Security/Shelver Library Assistant Library Assistant - Public Services Secretary Page

SALARIES

TRAVEL

$

17,001.98 $

1,182.50

38,271.40

4,230.19

15,688.13

6,635.20

417.25

21,600.02

13,157.55

4,478.50

3,336.11

1,964.47

5,881.75

2,814.79

53,072.06

2,852.77

11,968.71

7,710.60

2,286.86

655.19

5,059.60

493.50

11,380.97

10,861.50

15,034.40

54.63

60.46 385.56 228.00
391.47 242.17 155.28
41.21 2,527.71
655.59 200.36
8.10 9.08 6.00

$

258,090.63 $===4";,,.,=91=0=.9==9

See notes to the general purpose financial statements.

- 29-

SECTIONTI FINDINGS AND QUESTIONED COSTS

RODDENBERY MEMORIAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIQR YEAR
AUDIT FOLLOW-UPIRESOLUTION Failure to Maintain General Fixed Assets Account Group Finding Resolved Finding Control Number 6652-93-01
The audit report for the year ended June 30, 1996, noted that the Library 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 Library established a General Fixed Assets Account Group within the formal accounting records.