RODDENBERY MEMORIAL LIBRARY CAIRO, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2005 STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS Russell W. Hinton State Auditor RODDENBERY MEMORIAL LIBRARY - TABLE OF CONTENTS - Page FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHIBITS BASIC FINANCIAL STATEMENTS DISTRICT-WIDE FINANCIAL STATEMENTS A STATEMENT OF NET ASSETS 1 B STATEMENT OF ACTIVITIES 2 FUND FINANCIAL STATEMENTS C BALANCE SHEET GOVERNMENTAL FUNDS 3 D RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS 4 E STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS 5 F RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES 7 G NOTES TO THE BASIC FINANCIAL STATEMENTS 8 SCHEDULES REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND 17 SUPPLEMENTARY INFORMATION SCHEDULES OF REVENUE 2 STATE 18 3 FEDERAL 19 4 LOCAL 20 5 SCHEDULE OF SALARIES AND TRAVEL 21 FINANCIAL Russell W. Hinton STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 July 11, 2006 Honorable Sonny Perdue, Governor Members ofthe General Assembly Members of the Board of Regents of the University System of Georgia and Director and Members ofthe Roddenbery Memorial Library Board INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have audited the accompanying financial statements of the governmental activities and each major fund (Exhibits A through G) ofthe Roddenbery Memorial Library as ofand for the year ended June 30, 2005, which collectively comprise the Library's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Roddenbery Memorial Library's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial 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 opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe governmental activities and each major fund ofthe Roddenbery Memorial Library, as of June 30, 2005, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 2005ARL-41 The Roddenbery Memorial Library has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 17 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Roddenbery Memorial Library's basic financial statements. The accompanying supplementary information which consist ofSchedules 2 through 5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. Respectfully submitted, ~~~~ Russell W. Hinton State Auditor RWH:as 2005ARL-41 RODDENBERY MEMORIAL LIBRARY RODDENBERY MEMORIAL LIBRARY STATEMENT OF NET ASSETS JUNE 30, 2005 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Local Inventories Capital Assets Land Land Improvements Buildings and Building Improvements Equipment Library Collections Less: Accumulated Depreciation Total Assets LIABILITIES Accounts Payable NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted for Permanent Funds Unrestricted Total Net Assets Total Liabilities and Net Assets EXHIBIT"A" GOVERNMENTAL ACTIVITIES $ 59,782 193,499 28,922 2,487 40,000 40,000 1,369,312 88,675 1,230,039 -1 452 967 $ ===1=5=9=9=74=9= $ 10 983 $ 1,315,059 13,737 259 970 $ 1,588,766 $ =====1==5=9=9=74=9= The notes to the basic financial statements are an integral part of this statement. -1- RODDENBERY MEMORIAL LIBRARY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2005 EXHIBIT"B" EXPENSES PROGRAM REVENUES OPERATING CHARGES FOR GRANTS AND SERVICES CONTRIBUTIONS NET (EXPENSES) REVENUES AND CHANGES IN NET ASSETS GOVERNMENTAL ACTIVITIES Current Services Public Services Technical Services Support Services Maintenance and Operations Information Technology Total Governmental Activities General Revenues Allotments from Participating Governments Investment Earnings Miscellaneous $ 249,067 $ 1,917 290,271 149,240 49751 $===7=4=0,=24=6= $ 21,138 $ 21138 $ 165,838 $ 16,766 -62,091 -1,917 -290,271 -132,474 -49 751 182 604 $ _ _ __;-5;;.;c3-"'6,'-'-504.c...;_ $ 462,568 10,832 21 601 Total General Revenues $ _ _ _ _4.:.;:9c:_5i.:a00;:;..1:.... Change in Net Assets $ -41,503 Net Assets - Beginning of Year 1,630,269 Net Assets - End of Year $ ===1=5=8=81=76=6= The notes to the basic financial statements are an integral part of this statement. -2 - RODDENBERY MEMORIAL LIBRARY BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2005 EXHIBIT"C" ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net Local Inventories Total Assets LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable FUND BALANCES Reserved for: Permanent Funds Unreserved Undesignated Reported in: General Fund Permanent Funds Total Fund Balances Total Liabilities and Fund Balances GENERAL FUND PERMANENT FUNDS TOTAL $ 59,687 $ 175,428 28,922 2 487 95 $ 18,071 59,782 193,499 28,922 2 487 $ 266,524 $ 18 166 $ ===2=8=4 6=90= $ 10 983 $ 10 983 $ $ 255,541 $ 255 541 $ 13,737 $ 13,737 4429 18 166 $ 255,541 4 429 273 707 $ 266,524 $ 18 166 $ ==2=8=4=6=90= The notes to the basic financial statements are an integral part of this statement. -3- RODDENBERY MEMORIAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30, 2005 EXHIBIT"D" Total Fund Balances - Governmental Funds (Exhibit "C") $ Amounts reported for Governmental Activities in the Statement of Net Assets are different because: Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: Land Land Improvements Buildings Equipment Library Collections Accumulated Depreciation Total Capital Assets $ 40,000 40,000 1,369,312 88,675 1,230,039 -1,452,967 273,707 1,315,059 Net Assets of Governmental Activities (Exhibit "A") $ ==1=,5=8=8=7,=66=== The notes to the basic financial statements are an integral part of this statement. -4- RODDENBERY MEMORIAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2005 EXHIBIT"E" REVENUES Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues EXPENDITURES Current Public Services Technical Services Support Services Maintenance and Operations Information Technology Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending GENERAL FUND PERMANENT FUNDS TOTAL $ 462,568 181,754 850 21,138 9,810 $ 21 601 $ 697,721 $ $ 1,022 1,022 $ 462,568 181,754 850 21,138 10,832 21 601 698,743 $ 246,373 1,917 290,040 $ 144,104 49 751 $ 732,185 $ $ -34,464 $ 290,005 $ 231 231 $ 791 $ 17 375 246,373 1,917 290,271 144,104 49751 732,416 -33,673 307,380 $ 255,541 $ 18 166 $===2=73.,.,7=0=7= The notes to the basic financial statements are an integral part of this statement. -5- (This page left intentionally blank) RODDENBERY MEMORIAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2005 EXHIBIT "F" Total Net Change in Fund Balance - Governmental Funds (Exhibit "E") Amounts reported for Governmental Activities in the Statement of Activities are different because: Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: Capital Outlay $ Depreciation Expense Excess of Depreciation Expense over Capital Outlay $ 87,731 -95,561 -33,673 -7 830 Change in Net Assets of Governmental Activities (Exhibit "B") $ ==-=4=1=50=3= The notes to the basic financial statements are an integral part of this statement. -7- RODDENBERY MEMORIAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2005 EXHIBIT "G" Note 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY 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. The Library Board consists of three members; one member appointed by the City of Cairo, one member appointed by the Grady County Board ofCommissioners and one member appointed by the Grady County Board of Education. The Library 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 flow through 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 oflocal and other 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. Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The Library's basic financial statements are collectively comprised of the Library-wide financial statements, fund financial statements and notes to the basic financial statements of the Roddenbery Memorial Library. Library-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities of the overall Library. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Library's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the Library related to the administration and support of the Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues. -8- RODDENBERY MEMORIAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2005 EXHIBIT "G" Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fund Financial Statements: The fund financial statements provide information about the Library's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds. The Library reports the following major governmental funds: General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library, except those resources required to be accounted for in another fund. Permanent Funds: Lilla Belle Roddenbery/Harris Jefferson Memorial Fund - the fund used to account for an endowment for which the corpus is to be invested and preserved intact with the resultant income to be used to purchase books and material 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. BASIS OF ACCOUNTING The basis of accounting determines when transactions are reported on the financial statements. The Library-wide governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 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. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The Library considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Interest is considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. -9- RODDENBERY MEMORIAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2005 EXHIBIT "G" Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Library funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Library's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for 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: (1) 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 ofGeorgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and - 10 - RODDENBERY MEMORIAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2005 EXHIBIT "G" Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. CAPITAL ASSETS Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the Library-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. Capitalization thresholds and estimated useful lives of capital assets reported in the Library-wide statements are as follows: Capitalization Policy Estimated Useful Life Land Land Improvements Buildings and Improvements Equipment Library Collections $ 5,000 NIA $ 5,000 10 to 25 years $ 5,000 20 to 60 years $ 5,000 4 to 25 years $ 5,000 10 years Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. Note 3: 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 - 11 - RODDENBERY MEMORIAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2005 EXHIBIT"G" Note 3: DEPOSITS AND INVESTMENTS value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (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 of the 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 (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 or 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, 2005, the bank balances were $95,912. The bank balances were entirely covered by Federal depository insurance. CATEGORIZATION OF INVESTMENTS At June 30, 2005, the carrying value of the Library's total investments was $178,498 which is materially the same as fair value. The investment consisted entirely of funds invested in two Investment Pools administered by the Community Foundation of Southwest Georgia, Incorporated, which are not required to be categorized since the Library did not own any specific identifiable - 12 - RODDENBERY MEMORIAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2005 EXHIBIT "G" Note 3: DEPOSITS AND INVESTMENTS securities in the pools. The investment policy ofthe Community Foundation ofSouthwest Georgia, Incorporated for the two Investment Pools (Fixed Income Investment Portfolio and Balanced Growth/Income Investment Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Fixed Income Investment Portfolio and Balanced Growth/Income Investment Portfolio is as follows: The Fixed Income Investment Pool consists of cash equivalents and money market investments at FDIC insured banks. The Balanced Growth/Income Investment Portfolio consists of cash equivalents, bonds, mutual funds and other equity type investments. The pool distributes earnings on a monthly basis. For its services, the Community Foundation of Southwest Georgia, Incorporated, charges a management fee of 1.25% annually. The Community Foundation of Southwest Georgia, Incorporated, is established as a public charity that is exempt from Federal and state income tax as described in the Internal Revenue Code Section 501(3)c. The Community Foundation ofSouthwest Georgia, Incorporated is not registered with the Securities and Exchange Commission because it is not an investment company. Participation in the Community Foundation of Southwest Georgia, Incorporated, is voluntary and deposits consist of funds from nonprofit organizations, individuals, businesses, civic clubs and other donors who wish to contribute funds to a charitable organization. Note 4: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: Balances July 1, 2004 Increases Balances Decreases June 30, 2005 Governmental Activities Capital Assets, Not Being Depreciated: Land $ 40,000 $ 0 $ 0 $ 40,000 Capital Assets Being Depreciated Buildings and Building Improvements Equipment Land Improvements Library Collections $ 1,369,312 88,675 40,000 1,159,374 $ 87,731 $ $ 17,066 1,369,312 88,675 40,000 1,230,039 Less Accumulated Depreciation for: Buildings and Building Improvements Equipment Land Improvements Library Collections 516,297 54,034 23,200 780,941 34,762 1,192 1,600 58,007 17,066 551,059 55,226 24,800 821,882 Total Capital Assets, Being Depreciated, Net $ 1,282,889 $ -7 830 $ 0 $ 1,275,059 Governmental Activity Capital Assets - Net $ 1,322,882 $ -Z,830 $ Q $ 1,315,052 - 13 - RODDENBERY MEMORIAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2005 EXHIBIT "G" Note 4: CAPITAL ASSETS Current year depreciation expense by function is as follows: Public Services Maintenance and Operations $ 90,425 5 136 Note 5: RESTRICTED ASSETS $====9=='5==56==1 Endowments in which donors have stipulated as a condition ofthe gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose ofproducing present and future income, which may be expended, are reported as restricted assets in the Statement of Net Assets because their use is limited by applicable contractual agreements. Restricted assets at June 30, 2005, were as follows: Permanent Funds Restricted Investments Lilla Belle Roddenbery/Harris Jefferson Memorial Fund Edward A. Wight Memorial Fund $ 8,737 $ 5,000 Note 6: RISK MANAGEMENT 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 acts of God. The Library has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. The Library has elected to self-insure for all losses related to acts of God. The Library has not experienced any losses related to this risk in the past three years. The Library participates in the Association County Commissioners ofGeorgia-Selflnsured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982, to develop, implement and administer a program of workers' 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 $600,000 loss per occurrence, up to $2,000,000. - 14 - RODDENBERY MEMORIAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2005 EXHIBIT "G" Note 6: RISK MANAGEMENT The Library has purchased a surety bond to provide additional insurance coverage as follows: Position Covered Amount All Employees $ 60,000 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 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% of their 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 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2005 2004 2003 100% 100% 100% $ 29,753 $ 28,438 $ 28,210 - 15 - (This page left intentionally blank) RODDENBERY MEMORIAL LIBRARY GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 SCHEDULE "1" REVENUES Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues EXPENDITURES Current Public Services Technical Services Support Services Maintenance and Operations Information Technology Total Expenditures Net Change in Fund Balance Fund Balance - Beginning NONAPPROPRIATED BUDGETS ORIGINAL FINAL ACTUAL AMOUNTS $ 457,500 $ 457,500 $ 462,568 181,753 181,753 181,754 850 850 850 21,138 9,810 21 601 $ 640 103 $ 640103 $ 697 721 $ 258,347 $ 258,347 $ 246,373 2,000 2,000 1,917 274,872 274,872 290,040 67,657 67,657 144,104 37 227 37,227 49751 $ 640 103 $ 640,103 $ 732,185 $ 0 $ 0 $ -34,464 116 328 116 328 290,005 Fund Balance - Ending $ 116 328 $ 116,328 $ ======2=5-5,=54=1= Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. See notes to the basic financial statements. - 17 - RODDENBERY MEMORIAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2005 AGENCY /FUNDING GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Materials Maintenance and Operations SCHEDULE "2" GOVERNMENTAL FUND TYPE GENERAL FUND $ 155,979 750 8,259 16 766 $ ======18=1=7=54= See notes to the basic financial statements. - 18 - RODDENBERY MEMORIAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 2005 AGENCY /FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology (LSTA) Grant State Library Program SCHEDULE "3" GOVERNMENTAL FUND TYPE GENERAL FUND $ = = = = =85=0 See notes to the basic financial statements. - 19 - RODDENBERY MEMORIAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2005 LOCAL SOURCES Board of Education Grady County City Government Cairo County Government Board of Commissioners Grady County SCHEDULE "4" GOVERNMENTAL FUND TYPE GENERAL FUND $ 113,818 232,500 116 250 $====4=6=2..,56=8= See notes to the basic financial statements. - 20- RODDENBERY MEMORIAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2005 SCHEDULE "5" ~ Barnes, Bearss, Bennett, Boudet, Byrden, Causey, Daniels, Ferguson, Gainous, Groves, Hopkins, Humphries, Jambulapati, Kaye, Mangeris, Phillips, Rieger, Sallee, Seykoski, Smith, Steedley, Thrower, Wooten, Alisha N. Celina A. Nora B. Janet R. Brian L. Barbara S. Ernestine Joy Casey N. Annie M. Teresa L. Wendy Austin Elaine Vikram Alan L. PeterG. Teri Catherine Meredith A. Michael R. Birtie Sue Kathy E. Nicholas H. CamilleJ. Totals per Report TITLE CATEGORY Page Administrative Assistant Library Assistant - Children's Services Associate Director Page Computer Specialist Library Assistant - Public Services Page Library Assistant - Public Services Children's Librarian Housekeeper Page Page Director Maintenance Helper Library Assistant - Technical Services Circulation Supervisor Page Page Library Assistant - Public Services Bookkeeper Page Page SALARIES $ 3,394 17,893 10,187 $ 59,277 1,858 27,770 16,286 110 10,048 32,000 10,310 1,345 2,071 80,831 4,896 15,028 17,402 494 1,883 16,808 18,207 80 1 357 TRAVEL 100 56 170 140 2,536 12 329 $ 349,535 $ ====3=3=43= See notes to the basic financial statements. - 21 -