Audit report, Athens Regional Library, Athens, Georgia, year ended June 30, 1995

GA A'l.oo -RI R4h A1g
I 9C, 4-i '.:q5
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT ATHENS REGIONAL LIBRARY
ATHENS, GEORGIA YEAR ENDED JUNE 30, 1995

ATHENS REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

16

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

18

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

19

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

20

2 CASH AND CASH EQUNALENTS

21

3 INVESTMENTS

22

4 ACCOUNTS RECEIVABLE

23

SCHEDULE OF REVENUE

5

STATE

24

6

LOCAL AND OTHER

25

ATHENS REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

26

8

LOTTERY PROGRAMS

27

9 MEMBERSHIP OF LIBRARY BOARD

28

10 SCHEDULE OF SALARIES AND TRAVEL

29

SECTION II
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

ATHENS REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

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
March 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the Athens Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Athens Regional Library, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose 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 opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
95ARL-44*

* The Library did not report inventories for resale within the general purpose financial statements as required by generally accepted accounting principles.
The aggregate effect on the general purpose financial statements ofthese variances or omissions have not been determined, but is believed to be material.
In our opinion, except for the effects on the general purpose financial statements ofthe matters referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Athens Regional Library as ofJune 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 15, 1996, on our consideration of the Library's internal control structure and a report dated March 15, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Athens Regional Library taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance), 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 ofthe Athens Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effects of the matters discussed in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
{7~
Claude L. Vickers State Auditor
CLV:cm 95ARL-44*

ATHENS REGIONAL LIBRARY -I-

ATHENS REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP
JUNE30 1995

EXHIBIT"A"

ASSETS Cash and Cash Equivalents Investments Accounts R-ivable
Amount to be Provided in Future Years
For Payment or Compensated Absences
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

517,246.85

$

134,203.44

1,871.88

2,603.57 $

61,279.02

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onlr)

JUNE 30, 1995

JUNE 30, 1994

$

651,450.29 $

839,986.18

1,871.88

63,882.59

198,239.72

$

99 832.98

99,832.98

91 837.36

$

521,722.30 $

61 279.02 $

134 203.44 $

99 832.98 $

817037.74 $

1.130,063.26

LIABILITIES AND FUND EQUITY

blABILITIES

Cash Overdraft

Accounts Payable

$

Contracts Payable

Retainages Payable

Compensated Absences

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Continuation of State Program

$

For Expired Grant Balances/Questioned Cost

For Capital Outiay Projects

$

Unreserved Undesignated

Total Fund Equity

$

$ 13.00
13.00 $
1,321.54 $
1,321.54 $ 520,387.76 521,709.30 $

35,047.74 $
35047.74 $
1,048.71 $
1,048.71 $ 25182.57 26,231.28 $

75,311.73 $
75311.73 $
58 891.71 58,891.71
0.00 58 891.71

$
99 832.98 99 832.98 $

35,047.74 $ 13.00
75,311.73
99832.98
210,205.45 $

150,334.62
9,311.40 5,642.60 91 837.36
257125.98

$

1,321.54

1,048.71 $

1,048.71

58 891.71

337 784.75

$

61,261.96 $

338,833.46

545 570.33

534103.82

$

606,832.29 $

872 937.28

Total Liabilities and Fund Equity

$

521722.30 $

61 279.02 $

134 203.44 $

99832.98 $

817 037.74 $

1130 063.26

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

ATHENS BEGIONAL LIBRARY COMBINED ST~TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
&,L GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

EXHIBIT"B"

RE~ti!UES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (!.!SES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Adjusbnents Residual Equity Transfer Return of Excess Local Funds to Athens-Clarke County Govemment

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Onl~

YEAR ENDED

JUNE 30, 1995

JUNE 30 1994 1

$ 653,969.24 $ 1,357,010.53
$ 2,010,979.77 $

45,509.70 $ 141,181.44
15,358.46
202,047.60 $

547,085.00 $ 6,727.99
553,812.99 $

1,246,563.94 $ 141,181.44
1,379,094.98
2,766,840.36 $

1,135,603.94 75,343.04
1,471,270.40
2,682,217.38

$ 1,169,787.71 $ 49,055.68 50,727.42
582,928.60 150,915.36

$ 2,003,414.77 $

$

7,585.00 $

141,075.34 2,708.69
53,040.52 $
196,824.55 $ 5,223.05 $

$
400.00 832,306.03 832,706.03 $ -278,893.04 $

1,310,863.05 $ 51,764.37 50,727.42
636,369.12 150,915.36 832,306.03
3,032,945.35 $
-266104.99 $

580,323.11 78,047.07
317,053.30 1,122,350.11
162,148.84 218,135.58
2,478,058.01
204,159.37

$

$

-3,675.66

$

-3,675.66 $

3,675.66 3,675.66

$

3,675.66 $

31,569.39

-3675.66

-31,569.39

$

0.00 $

0.00

$

3,889.34 $

516,676.71

8,898.71 $ 18,475.82

-278,893.04 $ 337,784.75

-266,104.99 $ 872,937.28

204,159.37 838,075.98

1,143.25

-1,143.25

0.00

-169,298.07

FUND BALANCE JUNE 30

$ 521,709.30 $

26,231.28 $

58,891.71 $

606,832.29 $

872,937.28

The notes to the general purpose financial statements are an integral part of this statement. -3-

ATHENS REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 656,646.n $ 653,969.24 1,274,164.00 1,357,010.53
$ 1,930,a10.n $ 2,010,979.n

$ 1,074,612.34 $ 39,959.72 7,380.00
732,026.68 149,800.00

1,169,787.71 49,055.68 50,727.42
582,928.60 150,915.36

$ 2,003,nS.74 $ 2,003,414.n

$ -72,967.97 $

7,565.00

$ 83,874.00 -63,161.00 $
$ 20,713.00 $

-3,675.66 -3,675.66

$ -52,254.97 $

3,889.34

482,267.06

516,676.71

-25,885.89

1,143.25

FUND BALANCE JUNE 30, 1995

$ 404,126.20 $ 521,709.30

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 45,509.70

$ 207,450.55

141,181.44

28,550.00

15,356.46

$ 236,000.55 $ 202,047.60

$ 206,718.15 $ 141,075.34

2,644.50

2,708.69

27,984.90

53,040.52

$ 237,347.55 $ 196,824.55

$ -1,347.00 $

5,223.05

$ $ -1,650.00
$ -1,650.00 $

3,675.66 3,675.66

$ -2,997.00 $

8,898.71

71,337.71

18,475.82

5,702.85

-1,143.25

$ 74,043.56 $ 26,231.28

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

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Athens Regional 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. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Athens Regional Library is determined to be a joint venture.
The "Library Board consists of 16 members; 4 members appointed by the Clarke County Library Board, 3 members appointed by the Franklin County Library Board, 3 members appointed by the Madison County Library Board, 3 members appointed by the Oconee County Library Board and, 3 members appointed by the Oglethorpe County Library Board. The Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances.of local funds for continued operations and is the lowest level of oversight responsible for the Library's operations.
The Athens Regional Library is located in Athens, Georgia, and serves Clarke, Franklin, Madison, Oconee and Oglethorpe Counties.
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.

- 5-

ATHENS REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To 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, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences not appropriately accounted for and recorded in other fund types.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
- 6-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental 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.
BUDGET
The Athens Regional 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.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part of the Library's annual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings and N. 0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Donated investments are stated at fair market value as of the date donated.

- 7-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors 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.
INVENTORIES
Inventories ofitems purchased for resale in the Library store are not reported on the Combined Balance Sheet. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
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.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
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 or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
- 8-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
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 ofGeorgia,
(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 ofindebtedness 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 ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan 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, 1995, the bank balances were $761,600.56. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
- 9-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

The Library's deposits are classified by risk category at June 30, 1995, as follows:

Risk Category
1 2 3
Total

Bank Balance $ 392,154.09
369,446.47 0.00
$ 761,600 56

CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount ofthe Library's total investments was $1,871.88 and this entire amount consisted of common stock which was insured or registered, or securities held by the Library. The market value of these investments was $2,185.00.

Note 3: 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 illnesses or injuries to employees; natural disaster; and unemployment compensation.

The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illnesses 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 has elected to self-insure for all losses related to natural disasters. The Library has not experienced any losses related to natural disasters in the past three years.

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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ATHENS REGIONAL LIBRARY

EXl-llBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 3: RISK MANAGEMENT

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

1994 1995

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

2,136.00 $

$

2,136.00 $

333.00 $

Claims Paid

EndofYear Liability

0.00 $ 2,469.00 $

2,136.00 0.00

Note 4: GENERAL LONG-TERM DEBT

Balance July 1, 1994 Additions
Leave Earned and Utilized (Net) Balance June 30, 1995 Note 5: SIGNIFICANT COMMITMENTS

Compensated Absences
$ 91,837.36
7,995.62 $ 99,832.98

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as of June 30, 1995, together with funding available:

Project 6292-94-SB-003 6292-94-SB-004

Unearned Executed Contracts
$ 4,977.00 2,056.52
$ 7,033.52

Fundinf Availab e From State
$ 28,800.00 62,381.00
$ 91 181 00

The amounts described in this note are not reflected in the general purpose financial statements.

Note 6: 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.

- 11 -

ATHENS REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: ACCUMULATED EMPLOYEES' LEAVE
All regular employees earn vacation leave ranging from fifteen days to twenty-one days each year depending upon each employee's length of employment. All regular part-time employees earn vacation leave in an equivalent ratio to their percentage of time employed. Vacation leave may be accumulated up to forty-five days. Employees are paid for accumulated vacation leave; up to the maximum accumulation, at their current rate of pay upon termination of employment. See Note 1- Compensated Absences
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or aftet 10 years ofservice and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1995, was $1,083,113.67; total payroll was $1,308,667.24.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30,
- 12 -

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS

1995, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7. 50%.

Total contributions made during fiscal year 1995 amounted to $182,071.76, of which $127,915.26 was made by the Library and $54,156.50 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows:

Tot~l pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058 958,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $127,915.26 was actuarially determined and represented .0227% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 9: SURETY BONDS

The Library Director, Ms. Kathryn Ames, is bonded in the amount of $25,000.00 with the Western Surety Company, Chicago, Illinois, their Bond No. 68170195, on which premium is paid through May 7, 1996.

- 13 -

ATHENS REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30, 1995

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

LIBRARY SERVICES

LOTTERY PROGRAMS

TITLE I PUBLIC LIBRARY SERVICES

TITLE Ill INTERLIBRARY COOPERATION AND RESOURCE
SHARING

$

0.00

$

0.00

$

7,771.60

$

0.00 $

7,771.60 $ ______0._00_

LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft FUND EQUITY
Fund Balances Reserved For Expired Grant Balances/Questioned Costs Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

$

7,771.60

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

$

0.00 $

7,771.60 $ _ _ _ _ _0._00_

See notes to the general purpose financial statements.

- 14 -

EXHIBIT"E"

AND CONSTRUCTION ACT

TITLE V

FOREIGN

LANGUAGE

TITLE VI

MATERIALS

LIBRARY

ACQUISITION

LITERACY

PROGRAM

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

$

1,048.71

$

------$

27,387.39 $ ----2-6,-12-0.-03-

LIBRARY STORE

TOTALS JUNE 30, 1995 JUNE 30, 1994

25,182.57 $

26,231.28 $

17,427.11

61,279.02

168,810.44

$

1,048.71 $

27,387.39 $

26,120.03 $

25,182.57 $

------ 87,510.30 $

186,237.55

$

--------- 27,387.39 $

26,120.03

$

--------- 61,279.02 $

167,761.73

$

1,048.71

0.00 $

$

1,048.71 $

0.00 $ 0.00 $

$

0.00 $ - - 2-5,1-82.-57

0.00 $

25,182.57 $

1,048.71 $

1,048.71

25,182.57

17,427.11

--------- 26,231.28 $

18,475.82

$

1,048.71 $

27,387.39 $

26,120.03 $

25,182.57 $

- - - - - 87,510.30 $

186,237.55

- 15 -

ATHENS REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995

REVENUES State Funds Federal Funds Local and Other Funds Total Revenues
EXPENDITURES Current Program Services Technical Services Administration Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES
Operating Transfers In Excess of Revenues and Other Financing
Sources over (under) Expenditures FUND BALANCE JULY 1
Residual Equity Transfer
FUND BALANCE JUNE 30

LOTTERY PROGRAMS

LIBRARY SERVICES

TITLE I PUBLIC LIBRARY SERVICES

TITLE Ill INTERLIBRARY COOPERATION AND RESOURCE
SHARING

$ 45,509.70 $ 42,748.88 $
$ 45,509.70 $ 42,748.88 $

334.15 334.15

$

99.00 $ 34,942.78 $

2,708.69

47,932.71

5,107.81

$ 48,031.71 $ 42,759.28 $

$ -2,522.01 $

-10.40 $

334.15
334.15 0.00

3,665.26

$

1,143.25 $

0.00

-1,143.25

$

0.00 $

10.40
0.00 $ 0.00

0.00 0.00

------ 0.00 $

0.00

See notes to the general purpose financial statements.

- 16 -

EXHIBIT"F"

AND CONSTRUCTION ACT

TITLE V

FOREIGN

LANGUAGE

TITLE VI

MATERIALS

LIBRARY

ACQUISITION

LITERACY

PROGRAM

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

LIBRARY STORE

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

45,509.70 $

148,090.30

$

17,825.15 $

27,387.39 $

52,885.87

141,181.44

74,871.59

_ _ _ _ _ $ _ _ _15....;..,3_5_6._46_

15,356.46

14,215.83

$

17,825.15 $

27,387.39 $

52,885.87 $

15,356.46 $

- - ~ - - 202,047.60 $

237,177.72

$

17,825.15 $

27,387.39 $

52,885.87 $

7,601.00 $

141,075.34 $

78,024.57

2,708.69

53,040.52

149,681.70

$

17,825.15 $

27,387.39 $

52,885.87 $

7,601.00 $

196,824.55 $

227,706.27

$

0.00 $

0.00 $

0.00 $

7,755.46 $

5,223.05 $

9,471.45

$

0.00 $

1,048.71

0.00 $ 0.00

0.00 $ 0.00

7,755.46 $ 17,427.11

3,675.66
8,898.71 $ 18,475.82 -1,143.25

1.00
9,472.45 9,003.37

$

1,048.71 $

0.00 $

0.00 $

25,182.57 $

26,231.28 $ _ _ _1a_,4_1_5._a2_

- 17 -

ATHENS REGIONAL LIBRARY COMBINING BALANCE SHEET
CAPITAL PROJECTS FUND JUNE 30, 1995

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6292-94-SB-003

6292-94-SB-004

TOTALS

JUNE 30, 1995

JUNE 30, 1994

$

53,380.03 $

80,823.41 $

134,203.44 $ _ _ _35_2..,,7_38_.7_5

LIABILITIES AND FUND EQUITY

LIABILITIES

Contracts Payable

$

Retainages Payable

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Capital Outlay Projects

$

Unreserved

Undesignated

Total Fund Equity

$

15,746.36 $ 15,746.36 $
37,633.67 $ 0.00
37,633.67 $

59,565.37 $ 59,565.37 $

75,311.73 $ 75,311.73 $

9,311.40 5,642.60
14,954.00

21,258.04 $ 0.00
21,258.04 $

58,891.71 $ 0.00
58,891.71 $

337,784.75 0.00
337,784.75

Total Liabilities and Fund Equity

$

53,380.03 $

80,823.41 $

134,203.44 $ _ _ _35_2..,,7_38_.7_5

See notes to the general purpose financial statements.

-18-

ATHENS REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"H"

REVENUES
State Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Administration
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Adjustment Return of Excess Local Funds to Athens-Clarke County Government

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6292-94-SB-003

6292-94-SB-004

TOTALS

YEAR ENDED

JUNE 301 1995

JUNE 30, 1994

$

172,800.00 $

374,285.00 $

547,085.00 $

273,543.00

2on.51

4650.48

6,727.99

144,999.33

-

$

174 8n.51 $

378,935.48 $

553,812.99 $

418,542.33

$

224.00 $

176.00 $

400.00 $

121.97

150,342.89 75539.TT

1,878.00 516,529.93
88015.44

1,878.00 666,872.82 163,555.21

9,735.80 182,857.35
25,542.43

$

226,106.66 $

606,599.37 $

832,706.03 $

218,257.55

$

-51,229.15 $

-227,663.89 $

-278,893.04 $

200,284.78

31,568.39

$

-51,229.15 $

-227,663.89 $

-278,893.04 $

231,853.17

88,862.82

248,921.93

337,784.75

275,229.65

-169,298.07

FUND BALANCE JUNE 30

$

37,633.67 $

21,258.04 $

58,891.71 $ ___3_3_7._784.......,.7.5..

See notes to the general purpose financial statements.

-19-

ATHENS REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1995

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U.S. Department of Direct Library Services and Construction Act Title V - Foreign Language Materials Acquisition Program 1993 Grant Title VI - Library Literacy Program 1994 Grant Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services Basic Grant 1993 Carry-Over 1994 Carry-Over Competitive Grant 1993 Carry-Over 1994 Grant 1994 Carry-Over Title Ill - Interlibrary Cooperation and Resource Sharing 1994 Contract 1995 Contract
Total U.S. Department of Education
Labor, U. S. Department of Through Georgia Department of Technical and Adult Education Job Training Partnership Act ~dult Literacy 123 Program Contract No. 04-93-13-13-062 Contract No. 04-94-13-13-062 Through Northeast Georgia Regional Development Center Job Training Partnership Act Project Teen Boost 1994 Contract
Total U. S. Department of Labor

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.239 84.167 $

$ 34,997.00

22,520.00 $

17,825.15 $ 27,387.39

17,825.15 27,38_7.39

84.034 84.034
84.034 84.034 84.034

22,000.00 13,000.00

84.035 84.035
$

334.15 70,331.15 $

22,000.00
4,060.00 11,300.00 3,500.00

20,229.40 6,120.20
828.08 10,419.80 5,151.40

185.37 334.15
631899.52 $

334.15 88,295.57 $

20,239.80 (1) 6,120.20
828.08 10,419.80 5,151.40
{2) 871971.82

17.250 17.250 $

$ 43,522.00

7,423.45 10,947.96 $

37,067.99 $

37,067.99

17.250 $

431522.00 $

18,537.00 36,908.41 $

15,817.88 521885.87 $

151817.88 521885.87

Total Federal Financial Assistance

$ 113,853.15 $

100,807.93 $ 141181.44 $

140,857.69

The Library had no major programs as defined by the Single Audit Act of 1984.

(1) Expenditures for this program include State, and/or Local and other Funds. (2) Expenditures are this program were not maintained by fund source.

See notes to the general purpose financial statements.

20

ATHENS REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30, 1995

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Athens First Bank and Trust, Athens, Georgia
Certificate of Deposit No. 2-46-341384 (5.63%)
Bank of Danielsville, Danielsville, Georgia
N.O.W. Account (2.60%)
Georgia National Bank, Athens, Georgia
N.O.W. Account (2.55%) Passbook Savings Account (Variable) Certificate of Deposit No. 81212266 (515%)
NationsBank, Athens, Georgia
Certificate of Deposit No. 35259 (5.40%)
Sun Trust Bank, Athens, Georgia
N.O.W. Accounts (1.85%) Certificate of Deposit No. 30011 (4.50%)
OTHER
Petty Cash

$ 76,716.39

82,574.95

$ 52,122.41 2,665.99 14,077.74

68,866.14

48,914.85

$ 334,003.46 4,601.76

338,605.22

725.00

$ 616,402.55

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

ATHENS REGIONAL LIBRARY INVESTMENTS JUNE 30, 1995
COMMON STOCK 20 Shares of Amerada Hess Corporation 30 Shares of USLIFE Corporation

SCHEDULE "3"

$

902.50

969.38

$ 1,871.88

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

ATHENS REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "4"

Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services
Education, U. S. Department of Federal Program Library Services and Construction Act Title VI - Library Literacy Program
Friends of Clarke County Library Gift Support
Royston, City of Local Support
Technical and Adult Education, Georgia Department of Job Training Partnership Act
Vendor Credits Various Sources

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

7,771.60 $

7,771.60

$

1,566.94

610.00

426.63

27,387.39

27,387.39 1,566.94 610.00

26,120.03

26,120.03 426.63

$

2,603.57 $

61,279.02 $ 63,882.59

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

ATHENS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Talking Book Centers Maintenance and Operations Lottery Programs Distant Leaming Media Center and Library Equipment
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
Northeast Georgia Regional Development Center Grassroots Art Project

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 376,333.44 101,563.00 79,488.00 94,963.00
$

1,100.00 44,409.70

$ 376,333.44 101,563.00 79,488.00 94,963.00
1,100.00 44,409.70

1,621.80

$ 547,085.00

547,085.00 1,621.80

$ 653,969.24 $ 45,509.70 $ 547,085.00 $ 1,246,563.94

See notes to the general purpose financial statements.

- 24 -

ATHENS REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

LOCAL SOURCES Boards of Education Franklin County Madison County Oconee County Oglethorpe County
City Governments Bogart Canon Carnesville Franklin Springs Lavonia Lexington Royston Watkinsonville Winterville
County Governments Boards of Commissioners Clarke Franklin Madison Oconee Oglethorpe
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Overdue Fines Photocopy Sales Rents Sales Library Store Less: Purchases

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

10,000.00

54,269.00

15,000.00

15,277.00

1,500.00 600.00
1,750.00 1,050.00 5,700.00
500.00 7,320.00 4,500.00 1,200.00

$

10,000.00

54,269.00

15,000.00

15,277.00

1,500.00 600.00
1,750.00 1,050.00 5,700.00
500.00 7,320.00 4,500.00 1,200.00

889,276.00 16,581.00 54,269.00 94,455.00 22,996.96

889,276.00 16,581.00 54,269.00 94,455.00 22,996.96

31,411.40

2,202.75

14,772.33

$

7,500.26

83,058.17

18,317.66

3,504.00

$ 32,809.69 -17,453.23

6,727.99

31,411.40 2,202.75
21,500.32 7,500.26
83,058.17 18,317.66
3,504.00
32,809.69 -17,453.23

$ 1,357,010.53 $ See notes to the general purpose financial statements.
- 25 -

15,356.46 $

6,727.99 $ 1,379,094.98

ATHENS REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

SCHEDULE "7"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer, and Cleaning Repairs and Maintenance Services Insurance and Bonding Other Purchased Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 1,264,122.03 $ 294,173.12 13,932.71 26,078.72 12,261.79 41,968.91 10,956.73 11,081.38 50,721.58 119,058.59 98,575.18 31,706.40 2,350.00

44,545.21 $ 9,562.65 2,751.36
19,148.26
25.00
993.23 26,321.59 37,142.46
2,276.20 325.00 205.93

1,308,667.24 303,735.77 16,684.07 45,226.98 12,261.79 41,993.91 10,956.73 12,074.61 77,043.17 156,201.05 98,575.18 33,982.60 2,675.00 205.93

26,427.63

53,527.66

79,955.29

Total Expenditures

$ 2,003,414.77 $ 196,824.55 $ 2,200,239.32

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

ATHENS REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

EXPENDITURES Operating Costs Supplies Nonoperating Costs Equipment
Total Expenditures

DISTANT LEARNING

$

599.29

47,432.42

$ 48,031.71

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

ATHENS REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30. 1995

SCHEDULE "9"

BOARD MEMBER ADDRESS
Mrs. Gene Weeks, Chairperson (*) 183 Mell Street Athens, Georgia 30605
Mr. William Berryman, Vice-Chairperson(*) P. 0. Box 8108 Athens, Georgia 30603
Mr. Patrick Tritt, Treasurer(*) P. 0. Box 8005 Athens, Georgia 30603
Mrs. Pat Carithers (*) Route 1, Box 459A Hull, Georgia 30646
Mrs. Nancy Clark(*) P. 0. Box451 Lexington, Georgia 30648
Mr. Charles Cunningham 1100 Laurel Point Bogart, Georgia 30622
Mr. Wingate Downs(*) P. 0. Box912 Athens, Georgia 30613
Mrs. LaGrange DuPree 219 West Cloverhurst Athens, Georgia 30605
Mr. Frank Ginn (*) 634 Franklin Springs Street Royston, Georgia 30662
Mrs. Carolyn Owens 2100 Flat Rock Road Watkinsville, Georgia 30677
Note: One position was not filled as of June 30, 1995
(*) Denotes Board Members Serving as of June 30, 1995

Mrs. Shirley Parker (*) 111 Brookwood Drive Lavonia, Georgia 30553
Gen. (ret) Eugene Phillips (*) 546 Virginia Hills Road Royston, Georgia 30662
Mrs. Ellen Purvis (*) 1170 Hickory Hill Drive Watkinsville, Georgia 30677
Mr. Gene Ruffin (*) 108 Colonial Drive Athens, Georgia 30606
Mrs. Rosemary Stancil (*) 1220 Mason Mill Road Athens, Georgia 30606
Mrs. Betty Sweeny(*) P. 0. Box 56 Carlton, Georgia 30627
Mrs. Margaret Telford Box331 Carnesville, Georgia 30521
Mrs. Natalie Toney(*) Box234 Maxeys, Georgia 30671
Mr. Peter Wyllie(*) 1061 Briar Lakes Road Watkinsville, Georgia 30677

See notes to the general purpose financial statements.

- 28 -

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "1 O"

PERSONNEL

Akers, Alexander, Ames, Amey, Archibald, Arington, Auwarter, Bagarozzi, Belanger, Binder, Blackmon, Blake, Blount-Ness, Soleman, Bowden, Boyer, Braswell, Brooks, Brown, Brown, Burks, Burroughs, Campbell, Cape, Carlan, Carter, Carter, Carter, Chandler, Clark, Colegrove, Conrad, Cook, Cooper, Coram, Covington, Crocker, Daniel, Davis, Decastri, Dillard, Dillard, Diskin,

Marshall H. Cynthia M. Kathryn S. Audrey K. Wrenford N. Christina M. Clare Judith I. Elizabeth B. Linda Kay Helen C. Phyllis M. Kathie J. Sheila M. Holly L. Carlie M. Mary, Phyllis M. A. Brooke Billie K. Petula C. Janet A. AmyT. Betty J. Marsha D. Laura W.
Robert 8.
Sara S. Jamie L. Larry Susan C. Peggie D. Marye. Carol B. Barbara H. Kristie D. TimothyJ. Dorothy D. Sarah G. Laura L. Lorraine Patrice
Peter J.

POSITION
Circulation Clerk Library Assistant II Director Library Assistant Leaming Center Manager Chief Clerk Extension Librarian Branch Clerk Librarian Library Assistant Branch Manager Administrative Assistant Library Assistant I Branch Clerk Library Assistant Substitute Branch Clerk Branch Clerk Circulation Clerk Branch Manager Branch Clerk Library Assistant II Page Substitute Student Assistant General Services Librarian Library Technician Branch Assistant Student Assistant Security Guard Special Programs Coordinator Library Assistant I Library Assistant I Branch Clerk Branch Manager Branch Clerk Substitute Library Assistant II Library Assistant I Floater Maid/Housekeeper Library Assistant I Accounting Clerk
- 29 -

SALARIES

TRAVEL

$

4,537.31

16,639.68 $

53,997.56

1,095.50

21,840.00

8,158.50

39,096.40

2,305.00

38,396.40

11,586.85

152.60

21,091.20

422.40

258.75

1,206.16

1,895.00

5,223.39

4,997.51

72.25

22,359.48

2,529.44

17,017.35

399.50

187.00

13,842.88

25,270.44

5,497.08

16,431.60

820.25

135.00

34,464.84

3,034.51

9,584.42

119.00

9,252.96

983.00

26.00

15,183.96

3,090.74

249.38

2,184.00

3,524.40

1,719.25

623.91 3,683.69
385.09 130.49 583.55
85.39 53.34
101.26 18.48 67.07
900.59 37.80 48.51 51.03

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "1 O"

PERSONNEL

Donovan, Driver, Dunham, Echols, Edwards, Edwards, Eisner, Felton, Field, Firestone, Fleming, Frey, Gartrell, Gerson, Giannasi, Gordon, Graham, Greene, Gregory, Hardy, Harris, Hart, Hart, Hartel, Hayes, Haynes, Hendrix, Hewitt, Hickey, Hirsch, Holec, Hollingsworth, Howard, Jameson, Jewell, Jewell, Jordan, Kadhum, Kane, Kotlair, Lecroy, Lee, Lester,

Georgie L. Mary Anne R. Lou Anne Jennie R. Ira, Jr. Virginia B. Jacqueline C. Mildred Diane M. Gaile. Alfreda W. Valerie J. Bonnie T. Tamra F. Claire E. Mable L. Theresa L. Layota R. Katherine H. Sarah L. Martha C. Dave A. JoelC. MaryJ. Elizabeth M. Gloria K. Louise M. Angela D. Elizabeth A. Abby A. KimF. Susan E. Tony H. Cynthia C. Prentice L. Prentice L., Jr. Percy H. Jr. EmilF. Laureen F. Margaret Emma L. Michele Mary Lou

POSITION
Library Assistant I Extension Librarian Housekeeper Branch Manager Security Guard Literacy Coordinator Children's Librarian Substitute Library Assistant I Library Assistant Ill Library Assistant II Library Assistant II Branch Clerk Library Assistant I Page Library Assistant II Library Assistant II Page Telephone Reference Assistant Library Assistant II Branch Manager Library Assistant I Library Assistant II Young Adult Librarian Substitute Library Assistant II Branch Manager Library Assistant Page Library Assistant II Library Assistant I Library Assistant Ill Security Guard Branch Assistant Janitor Janitor Assistant Security Guard Acquisitions Specialist Library Assistant II Library Assistant I Branch Substitute Library Assistant I Branch Manager
- 30-

SALARIES

TRAVEL

$

5,857.89

34,533.00 $

4,734.27

18,885.96

3,049.50

13,728.00

36,795.20

344.25

12,375.60

19,594.95

17,991.60

5,631.87

6,282.25

5,028.66

106.25

13,902.00

14,622.00

216.75

1,284.50

15,807.60

2,262.00

3,465.33

2,916.24

29,077.80

974.38

16,309.68

9,252.96

1,249.50

17.00

2,138.41

2,544.79

2,940.00

54.00

16,431.60

16,899.66

748.00

1,698.00

12,369.80

1,503.28

3,325.06

3,187.50

1,084.15

861.00

1,690.50 17.85
657.14 678.90 166.20
31.08 50.40
27.51 105.41 143.01
55.44
65.52
17.64

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "1 O"

PERSONNEL

Limehouse, Lott, Lowery, Maddox, Malloy, Manning, Manoll, Martin, Martin, Mavromatis, McDuffie, McGarity, Mclain, McNair, Mitchell, Mitchell, Monk, Montgomery, Moore, Ill Morgan, Murphy,_ Myers, Nakama, Naughton, Nichols, Nickels, Pahr, Parham, Patrick, Paul, Pierce, Provost, Ratcliffe, Roberts, Seigler, Shrewsbury, Shuster, Smith, Smith, Smith, Snook, Stauffer, Stone,

Shannon T. GwenW. Margaret H. Daniel J. J.Kevin Rita Jennifer H. H.J., Jr. Jeremy S. K. Alexa JillH. Louise C. Lisa K. Ame Bruce Laura Ann Jonathan D. Debbie A. John H. John C. Janet Dana JulieT. Carrie Lynn Sandra K. Robert R. Marilyn A. WesleyB. S. Louise Alice S. WilmaJ. Jeanne L. Mary 0.
Sheila A.
Phillip E. Drusilla L.
Heather A.
Lakisha M. Mildred C. NancyS. Caren M. Patricia S. Christopher P.

POSITION
Branch Clerk Branch Assistant Branch Manager Page Library Assistant II Branch Clerk Telephone Reference Assistant Library Assistant II Courier Library Assistant I Branch Substitute Branch Clerk Branch Assistant Library Assistant II Page Student Assistant Computer Specialist Branch Assistant Library Assistant I Library Assistant I Branch Clerk Reference Librarian Floater Library Assistant I Library Assistant I Library Assistant I Librarian Library Assistant I Branch Clerk Branch Manager Substitute Library Assistant Ill Public Relations Assistant Branch Substitute Library Assistant II Branch Clerk Circulation Clerk Page Library Assistant II Reference Librarian Literacy Instructor Business Manager Acquisitions Clerk
- 31 -

SALARIES

TRAVEL

$

6,021.50

2,925.93

316.63

582.25

15,391.68 $

4,164.48

15,745.12

6,569.34

2,129.35

3,790.52

121.88

705.50

8,975.40

8,624.94

9.00

1,228.25

9,676.62

32.85

2,885.64

7,960.05

15,703.68

13,115.99

2,148.57

2,870.65

4,301.40

12,915.00

6,021.80

616.88

7,474.92

9,518.04

127.50

6,938.40

3,029.30

97.75

14,559.72

1,358.95

2,054.80

2,082.60

21,840.00

40,097.60

13,303.52

32,260.08

1,212.75

73.00 54.98
238.35
14.00 9.66
62.58
40.00 72.03

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "1 O"

PERSONNEL

Strawn, Stribling, Taras, Tate, Taylor, Thompson, Thum, Tozzer, Turman, Van Gorder, Walker, Walker, Weber, Wiggins, Wilcox, Williams, Williams, Womble, Wood, Wright,

TimothyT. Twanna 8. Kay A. WilliamJ. Prudence A. Wanda Paula M. Brent A. Linda Lou Patricia H. JulieW. Marvin Marcia E. Eartha Lee Doris S. Diane T. Seretha D. Mary E. Audrey D. Janet

POSITION
Manager Technical Services Library Assistant II Branch Clerk Library Assistant II Librarian - Heritage Room Substitute Library Assistant Special Project Historian Substitute Page Assistant Director Security Guard Special Projects Coordinator Branch Clerk Branch Clerk Head Acquisition Librarian Library Assistant II Page Library Assistant I Talking Book Center Librarian

SALARIES

TRAVEL

$

3,869.79

15,495.60 $

1,883.13

15,600.00

38,296.40

57.38

5,186.45

3,750.00

756.00

2,940.00

42,226.20

162.00

10,180.10

1,940.00

884.00

21,116.16

7,899.95

816.01

2,210.26

38,929.80

8.40 2,487.28
124.74 1,962.70
207.05 149.45
703.05

$ 1,308,667.24 $ ===16=,6=8=4=.0=7

See notes to the general purpose financial statements. - 32 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Athens Regional Library Board
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Athens Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Athens Regional Library is the responsibility of the Library's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Library's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

95CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
d~
Claude L. Vickers State Auditor
CLV:cm 95CRL-10

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Athens Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Athens Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Library's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Library's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

95CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Athens Regional Library had not complied, in all material respects, with those requirements.

This report is intended for the information of management, the Federal cognizant audit agency and other

Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a

matter ofpublic record.

Resz:~

CLV:cm 95CRL-40

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members of the Athens Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Athens Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1995 general purpose financial statements of the Athens Regional Library and with our consideration of the Library's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

( 1) Types of Services Allowed or Unallowed

(3) Applicable Special Tests and Provisions

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Athens Regional Library's compliance with these requirements. Accordingly, we do not express such an opinion.

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Athens Regional Library had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

CLV:cm 95CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Athens Regional Library Board
REPORT ON INTERNAL CONTROL STRUCTURE tN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Athens Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and petform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management of the Athens Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

95ICL-4

In planning and performing our audit of the general purpose financial statements of the Athens Regional Library for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opm10n.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Accounting Controls (Overall)
(2) Cash and Cash Equivalents
(3) Expenditures/Liabilities/Disbursements
(4) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above.
However, as described in the Schedule ofFindings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses:
(1) Accounting Controls (Overall)
(2) Cash and Cash Equivalents
(3) General Fixed Assets
95ICL-4

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Athens Regional Library's financial statements and this report does not affect our report thereon dated March 15, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
a:.Respectfully submitted,
Claude L. Vickers State Auditor
CLV:cm 95ICL-4

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Athens Regional Library Board
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Athens Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended June 30, 1995, we considered the Library's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Library's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 15, 1996.
The management of the Athens Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are
95ICL-16

executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(I) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level of Effort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements

(5) Applicable Special Tests and Provisions
(6) Other Requirements a) Claims for Advances and Reimbursements b) Amounts Claimed and Used for Matching

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1995, the Athens Regional Library had no major Federal financial assistance programs and expended 67% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs:

Library Services and Construction Act - Title I Public Library Services
Job Training Partnership Act

95ICL-16

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor Federal financial assistance programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Library's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Allowable Costs/Cost Principles
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our co~sideration of the internal control structure poli~ies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness:
Administrative Requirements
This report is intended solely for the use ofmanagement, the Federal cognizant audit agency and other Federal
Ra grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the
distribution of this report which is a matter of public record.
submitted, ,

CLV:cm 95ICL-16

Claude L. Vickers State Auditor

SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW UP/RESOLUTION Failure to Refund Unexpended Grant Balance Federal Financial Assistance Amount: $1,048.71 Audit Control Number 6292-94-03
The audit report for the year ended June 30, 1994, reported that an unexpended grant balance of $1,048.71 remained on hand after the close of the fiscal year for the LSCA - Title V Program (CFDA 84.239). During the year under review this amount was not refunded. This deficiency resulted from management not refunding the unexpended grant balance for the 1992 project to the appropriate granter agency. The unexpended grant balance at June 30, 1995 of$1,048.71 should be refunded to the U.S. Department ofEducation.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 6292-94-04
The audit report for the year ended June 30, 1994, noted that the Library could not document that an inventory of equipment had been taken for the LSCA - Title I program (CFDA 84.034) as required. During the year under review, the Library implemented procedures to ensure that a physical inventory of the equipment was taken and the results reconciled with the equipment records as required.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6292-93-01
The audit report for the year ended June 30, 1994, noted that the management of the Athens Regional Library had chosen not to 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 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.

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6292-94-01
The audit report for the year ended June 30, 1994, stated that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, no improvement regarding adequate separation of employee duties was noted. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" of this report, are affected by this finding.
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6292-94-02
The audit report for the year ended June 30, 1994, stated that the Library's accounting procedures were inadequate to provide for adequate internal control over cash assets of the Library. Deficiencies continued to exist during the year under review and are summarized as follows:
( 1) Book errors disclosed through the bank reconciliation process were carried as reconciling items for extended periods of time.
(2) The monthly bank statements were not always reconciled to the general ledger.
(3) Bank statements were not reconciled to the general ledger on a timely basis. Monthly bank reconciliations for July and August were not performed during fiscal year 1995. September through February reconciliations were all performed in March.
These deficiencies in accounting procedures were the result of management not providing adequate administrative review to ensure that reconciliations were performed on a timely basis, were correct and all required adjustments had been made. The Athens Regional Library should implement procedures to monitor the bank reconciliation process.

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS-Financial Statements ALLOWABLE COSTS/COST PRINCIPLES-Federal Financial Assistance Voucher Sample Exceptions Reportable Condition Audit Control Number 6292-95-01
For the year under review, an examination of38 expenditure vouchers was performed to test the validity and accuracy ofthe expenditure transactions. Two of the vouchers supported expenditures of the LSCA Title VI program (CFDA 84.167). The vouchers examined revealed the following deficiencies:
( 1) For five vouchers, receipt ofgoods purchased was not indicated on invoices submitted for payment.
(2) Four vouchers did not contain proper authorization or approval for purchases.
(3) Two ofthe vouchers were paid from employee credit card receipts rather than an original invoice.
(4) Purchase orders were not included in the voucher packages examined.
These deficiencies resulted from management's failure to develop and implement effective accounting controls over the procurement process. A control system should be developed to ensure adequate safeguards over the procurement process.
REPORTING Failure to File Required Reports Within Required Time Period Failure to Report Cash/In-Kind Match Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6292-95-02
The Library did not file DE form 0554, Requisition for Reimbursement and the OTAE form 0552 Cash/InKind Match for Requisition for Reimbursement to the Georgia Department of Technical and Adult Education for the Job Training Partnership Act Program (CFDA 17.250) within the required time period for nine (9) of the twelve (12) monthly reports. The JTPA contract provides that monthly reimbursement requests be submitted by the 9th of the month following the month claimed.
Furthermore, all twelve ofthe DTAE form 552's did not contain the required cumulative record of cash/in-kind match by the Library as required by the contract with the Department of Technical and Adult Education. The Library should submit a cumulative record ofin-kind match to be compared to planned contributions. This condition occurred because management failed to ensure timely submission of complete reports. The Library should establish procedures to ensure that reports are submitted as required by the grant agreements.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

ATHENS REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
AUDIT FOLLOW-UP/RESOLUTION Failure to Refund Unexpended Grant Balance Federal Financial Assistance Amount: $1,048.71 Audit Control Number 6292-94-03
In 1994, we called the U. S. Department of Education to inquire about refunding this money and were told to spend it rather than refund it. We asked for this in writing but were unable to locate documentation. Our manual records of the project indicate funds were spent; obviously, there was a lapse in entering the records into the Genesis System. Since the original grant officers are no longer with the program, we will refund the amount above, but we sincerely believe it was spent in a responsible manner.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6292-93-0 I
The Library maintains records of buildings, equipment, and collections and maintains records of all additions
and-deletions. Until DOE develops a feasible method of handling this on the accounting system, we cannot meet the unrealistic expectations of the audit department. If this is a priority, perhaps DOE should work toward ensuring that appropriate software is developed and grant funds are available for staff to implement a very costly solution.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6292-94-0 I
We believe this has been resolved for FY96.
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6292-94-02
All accounts are now current. We have hired a new Business Manager who has been able to restructure the business office.

ATHENS REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
EXPENDITURES/LIABILITIES/DISBURSEMENTS-Financial Statements ALLOWABLE COSTS/COST PRINCIPLES-Federal Financial Assistance Voucher Sample Exceptions Reportable Condition Audit Control Number 6292-95-01
This has been corrected to our satisfaction.
REPORTING Failure to File Required Reports Within Required Time Period Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6292-95-02
The requirements for JTPA reimbursement did not require us to submit monthly requisitions - rather - they set a date for submittal if the system wanted reimbursement for a given period. However, we have changed the procedure and the reports are up to date.