Audit report, Athens Regional Library, Athens, Georgia, year ended June 30, 1996

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AUDIT REPORT ATHENS REGIONAL LIBRARY
ATHENS, GEORGIA YEAR ENDED JUNE 30, 1996

ATHENS REGIONAL LIDRARY ft 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

ALL FUND TYPES AND ACCOUNT GROUP

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 EQUIVALENTS

21

3 INVESTMENTS

22

4 ACCOUNTS RECEIVABLE

23

SCHEDULE OF REVENUE

5

STATE

24

6

OTHER

25

ATHENS REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

26

8

LOTTERY PROGRAM

27

9 MEMBERSHIP AND TRAVEL OF LffiRARY BOARD

28

10 SCHEDULE OF SALARIES AND TRAVEL

30

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 4, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe 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, 1996, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards 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 OMB 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.
96ARL-44X

* The Library did not report inventories for resale within the general purpose financial statements as
required by generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Athens Regional Library as ofJune 30, 1996, 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 February 4, 1997, on our consideration ofthe Library's internal control structure and a report dated February 4, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming 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 ofFederal Financial Assistance), as listed in the table of contents, are presented for purposes ofadditional 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 ofthe 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.

CLV:jy 96ARL-44X

Claude L. Vickers State Auditor

ATHENS REGIONAL LIBRARY
- 1-

ATHENS REGIONAl. UBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE30 1996

EXHIBlTA

~ Cash and Cash Equivalenls IrMl5tmenls Accounls Reoeivable Amount to be Provided in Future YealS
For Payment of: Compensated Absences
Talal Assels

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

418,535.30 $

21,661.71 $

372,740.20

2,300.58

33,902.85

14,943.59

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30, 1995

$

812,937.21 $

651,450.29

2,300.58

1,871.88

48,846.44

63,882.59

$

100,102.27

100,102.27

99,632.98

$

454,738.73 $

36,605.30 $

372.740.20 $

100,102.27 $

964,186.50 $

817,037.74

L!ABILmES ANp FUNp EQUITY

LlAB!LmES

Cash Overdraft

Accounts Payable

$

Salaries Payable

Contracts Payable

Compensalad Absences

Talai Liabilities

$

FUNPEQUlIY

Fund Balances
Reserved For Continuation of Stale Program For Expired Grant Balanc:eslQuestioned Cost For Slale Capital Outlay Projects

451.66 $ 451.66 $

Unreserved Undesignated
Talai Fund Equity

$

454,287.07 $

$

454,287.07 $

Total Liabilities and Fund Equity

$

454,738.73 $

210.92 572.17 783.09
$ $ 35,822.21 35,822.21 $ 36,605.30 $

$ $
372,740.20 372,740.20
0.00 372,740.20 372.740.20 $

$
100,102.27 100,102.27 $

$ 662.58 572.17
100,102.27
101,337.02 $

35,047.74 13.00
75,311.73 99,632.98
210,205.45

$

$

372,740.20

$

372,740.20 $

1,321.54 1,048.71 58,891.71
61,261.96

490,109.28

545,570.33

$

862,849.48 $

606,832.29

100,102.27 $

964,186.50 $

817,037,74

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

ATHENS REGIONAL LIBRARY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1996

EXHIBIT-a-

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXpENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER fiNANCING SOURCES <USES)
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

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only>
YEAR ENDED JUNE 30, 1996 JUNE 30,1995

$ 694,587.28 $ 10,192,18
1,639,667,17
$ 2,344,446,63 $

10,000,00 $ 123,135.50
12,785,00
145,920,50 $

91,181,00 $ 394,789,73

795,768.28 $ 133,327,68 2,047,241.90

1,246,563.94 141,181,44
1,379,094,98

485,970,73 $ 2,976,337,86 $ 2,766,840,36

$ 1,726,691.80 $ 24,736,67 370,58 328.325,65
330,596,67
$ 2,410,721.37 $
$ -66,274,74 $

117,495,50
12,981,56 $ 7,000,00
137,477.06 $ 8,443,44 $

$
1,057,14 171,065,10

1,844,187.30 $ 24,736,67 370,58
342,364,35 337,596,67 171.065,10

1,310,863,05 51,764.37 5O,n7.42
636.369,12 150,915.36 832.306,03

172,122.24 $ 2,nO,320.67 $ 3,032,945,35

313,848.49 $ 256,017,19 $ -266,104,99

$

$

-1,147,49

$

-1,147,49 $

1,147.49 1,147,49

$

1,147.49 $

3,675,66

-1.147,49

-3.675,66

$

0.00 $

0,00

$ -67,422.23 $ 521,709,30

9,590.93 $ 26,231,28

313,848,49 $ 58.891.71

256,017,19 $ 606,832.29

-266,104,99 8n,937.28

FUND BALANCE JUNE 30

$ 454,287,07 $

35,822.21 $ 372,740.20 $ 862,849.48 $ 606,832.29

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 30.1996

EXHIBITC

FUND BALANCE JUNE 30.1996

$ 455,640.08 $ 454,287.07

$ 97,041.58 $ 35,822,21

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

ATHENS REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
The Athens Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-5~ 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 ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the 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 oflocal funds for continued operations and is the lowest level of oversight responsibility 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set 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.

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ATHENS REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To confonn to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost ofassets acquired by governmental fund . types.
The general purpose financial statements account for all State, Federal and Other funds under control 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 expendituresfor specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction ofmajor capital facilities.
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.

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ATHENS REGIONAL LffiRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 LibrarYs budget is a complete financial plan for the Library's fiscal year and is based upon estimates ofexpenditures 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 ofbudget 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 rf..:eived 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 ofdeposits (mcluding certificates of deposit, savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Donated investments are stated at fair market value as of the date donated.
- 7-

ATIffiNS REGIONAL LIBRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: 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 infonnation 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 ofexpenditures 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.
Operating transfers are recorded for all interfund transactions other than 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 confOI11"Jty 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.

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ATHENS REGIONAL LffiRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

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 of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates ofindebtedness, or other obligations 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, 1996, the bank balances were $1,005,387.64. The amounts of the total bank balances are classified into three categories of credit risk:

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ATHENS REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS AND INVESTMENTS

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

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

Risk Category

Bank Balance

1

$ 359,912.19

2

362,817.12

3

282,658.33

Total

$ 1.005 387 64

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the canying amount ofthe Library's total investments was $2,300.58 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 $2,552.20.

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 illness 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 illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any ofthe 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 these risks 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 expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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ATHENS REGIONAL LIBRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 3: RISK MANAGEMENT

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995 1996

$ 2.136.00 $

333.00 $ 2.469.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Compensated Absences

Balance July 1, 1995

$ 99,832.98

Additions Leave Earned and Utilized (Net)

269.29

Balance June 30, 1996

$ 100,102.27

Note 5: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by
grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures
which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 6: ACCUMULATED EMPLOYEES' LEAVB

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

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ATHENS REGIONAL LffiRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 7: 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 after 10 years of service 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% ofthe average ofthe member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no v~sting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1996, was $1,216,756.28; total payroll was $1,446,944.96.
TRS CONTRffiUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1996, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $204,537.43, of which $143,699.18 was made by the Library and $60,838.25 was made by employees. These contributions represented 11.81 % (Library) and 5% (employees) of covered payroll.

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ATHENS REGIONAL LIDRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 7: RETIREMENT PLANS

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofPERS 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 ofJune 30, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1 585,541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of$143,699.18 was actuarially determined and represented .0237% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 8: SURETY BONDS

The Library Director, Mrs. 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, 1997.

- 13 -

ATHENS REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30,1996

ASSETS Cash and Cash Equivalents Accounts Receivable
Tolal Assets

LOTTERY PROGRAMS

LIBRARY SERVICES AND CONSTRUCTION ACT

TITLE V

FOREIGN

TITLE I

LANGUAGE

TITLE VI

PUBLIC

MATERIALS

LIBRARY

LIBRARY

ACQUISITION

LITERACY

SERVICES

PROGRAM

PROGRAM

$

0.00 $

0.00 $

0.00

_ _ _ _ _ $ _ _.:;"l5,.;;.;37;..;4:.:.:.1~6

$

0..0...0. $

0.00 $

0.00 $

5,.3.7..4..-.1.6.

LIABILITIES AND FUND EqUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable

Tolal Liabilities

FUND ,EqUITY

Fund Balances

Reserved

For Expired Grant Balances/Questioned Costs

Unreserved

Undesignated

$

Total Fund Equity

$

0.00 $ 0.00 $

$

5.374.16

$ _ _.;;.:5.-37....;4.;..;.1-.6

0.00 $ 0.00 $

....;;;0....;;;.00..;..$ 0.00 $

....;;;0.;.;;.00-. . ;;;0.;.;:.00,;-.

Tolal Uabilities and Fund Equity

$

0.00 $

0.00 $

0.00 $ _ _5;;':",;,;37...;4,;,,;,.1.6

See notes to the general purpose financial statements.

-14 -

EXHIBITMEM

JOB TRAINING PARTNERSHIP
ACT

LIBRARY STORE

TOTALS JUNE 30,1996 JUNE 30,1995

$

35,822.21 $ , 35,822.21 $

26,231.28

$

9,569.43

14,943.59

61,279.02

$

9,569.43 $

35,822.21 $

50,765.80 $

87,510.30

$

8,786.34

210.92

572.17

$

9...:._.,569_.4_3

$

14,160.50 $

61,279.02

210.92

572.17

$

14,943.59 $

61,279.02

$

1,048.71

$

0.00 $

35,822.21 $ _---.:3;;:;;5,~822=.2:.:..1

25,182.57

$

0.00 $

35,822.21 $

35,822.21 $

26,231.28

$

9,569.43 $

35,822.21 $

50,765.80 $

87,510.30

-15-

ATHENS REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

0.00 $

0..0..0..

See notes to the general purpose financial statements.

- 16-

EXHIBIT"P'

JOB TRAINING PARTNERSHIP
ACT

LIBRARY STORE

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$

42,972.04

-----$

$

42,972.04 $

$ 12,785.00 12,785.00 $

10,000.00 $ 123,135.50
12,785.00
145,920.50 $

45,509.70 141,181.44
15,356.46
202,047.60

$

44,119.53

$

$ 2,145.36

117,495.50 $
12,981.56 7,000.00

141,075.34 2,708.69
53,040.52

$

44,119.53 $

2,145.36 $ 137,477.06 $ 196,824.55

$

-1,147.49 $

10,639.64 $

8,443.44 $

5,223.05

1,147.49

1,147.49

3,675.66

$

0.00 $

10,639.64 $

9,590.93 $

8,898.71

0.00

25,182.57

26,231.28

18,475.82

-1,143.25

$

0.00 $

35,822.21 $

35,822.21 $

26,231.28

-17 -

ATHENS REGIONAL LIBRARY
COMBINING BAlANCE SHEET
CAPITAL PROJECTS FUNp
JUNE30 1996

EXHIBIT"G"

~ Cash and Cash Equivalent8

PROJECT 6292-94-SB-0Q3

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6292-94-58-004 6292-95S-SB-001

PROJECT 6292-95S-SB-0Q2

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

10,873.89 $

24,940.43' $

44,888.13 $

292,037.75 $ 372.740.20 $ 134,203.44

LIABILITIES AND FUND EQUITY

LIABILITIES

Contracts Payable

FUNPEQU!TY

Fund Balance&

R8IeMld

For State Capital Outlay Projects

$

Unre&eNed

Undesignated

Tetal Fund equity

$

10.873.89 $ 0.00
10,873.89 $

24,940.43 $ 0.00
24,940.43 $

Teta! Liabilities and Fund equity $

10,873.89 $

24,940.43 $

$

75,311.73

44.888.13 $ 0.00
44,888.13 $

292,037.75 $ 0.00
292,037.75 $

372,740.20 $ 0.00
372,740.20 $

58,891.71 0.00
58,891.71

44,888.13 $

292,037.75 $ 372,740.20 $ 134,203.44

see notes to the general purpose financial statements.

- 18-

AlHENS REGIONAL LIBRARY
COMBINING STAIEMEW' OF REVENUES EXPEND!TURes AND CHANGes IN FUND BALANCES
CAPITALPRQJECTSfUNP
YEAR ENDED JUNE 30 1998

EXHlBIT"H"

PROJECT 6292-94-58-003

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6292-94-58-004 6292-955-58-001

PROJECT 6292-955-S8-002

TOTALS YEARENOEO JUNE 30, 1996 JUNE 30, 1995

REVENUES

Slate funds Olherfunds

S

28,800.00 S

62,381,00

S

91,181.00 S

547,085.00

743.33

1,000.80 S

52,nO.45 S

340,275.15

394,789.73

8,727.99

TolaJ Rewenues

S

29,543.33 S

83,381.80 S

52,nO.45 S

340,275.15 S

485,970.73 S

553,812.99

EXPENQlTURes

Current

Adminisllation

SuPlll*

S

Capital OulIay

I.8nd and I.8nd ImIJlll'lM*llS

Building and Building ImIJlll'lM*llS

Equipment

TotIIl Expenditures

S

Elccess d R _ CMlt' (under) Expenditures S
FUND BAlANCE JULY 1

20.00 S
3,250.00 30,392.08 22,841.03
58,303.11 S
-28,759.78 S
37,833.87

532.50 S
7,859,04 4,215.98 47,091.91
59,699.41 S
3,882.39 S
21,258.04

12.32 S 2,820.00 5,250,00
7,882.32 S 44,888.13 S
0.00

492.32 S
2,240.00 45,492.80
12.48
48,237.40 S
292,037.75 S
0.00

1,057.14 S
15,9llll.04 85,350.84 89,745.42
172,122.24 S
313,848.49 S
58,891.71

400.00
1,878.00 _,872.82 183,555.21
832,708.03
-278,893.04
337,784.75

FUND BALANCE JUNE 30

S

10,873.89 S

24,940.43 S

44,888.13 S

292,037.75 S

372,740.20 S

58,891.71

See notes to the general purpose financial statements.

-19-

ATHENS REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30,1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Appalachian Regional Commission Through Madison County Board of Commissioners Adult Literacy Program 1996 Grant
Education, U. S, Department of Direct Library Services and Construction Act TrtJe V - Foreign Language Materials Acquisition Program 1993 Grant TrtJe VI - Library Literacy Program 1994 Grant 1995 Grant Through Georgia Department of Education Library Services and Construction Act TWe I - Public Library Services Basic Grant 1994 Carry-Over 1995 Carry-Over Competitive Grant 1994 Carry-Over TrtJe III - Interlibrary Cooperation and Resource Sharing 1996 Contract
Total U. S. Department of Education
Labor, U. S. Department of Through Georgia Department of Technical and Adult Education Job Training Partnership Act Adult Literacy 123 Program Contract #04-95-13-13-063
Total U, S. Department of Labor

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

23.001 $

9,480.93 $

9,480,93

84.239 $
84.167 84,167

-1,048.71
7,609.61 $ 27,874.16

7,609.61 27,874,16

84.034 84,034
84.034

15,879,80 22,000.00
7,848.60

84.035 $

711.25 80,874.71 $

15,879,80 22,000.00
7,848.60
(2) 81,212.17

17.250 $ $

42,972.04 $ 42,972.04 $

44,119.53 (1) 44,119.53

Total Federal Financial Assistance

$ 133,327.68 $===1=3::::l4,=81=2~.6=3

The Library had no major programs as defined by the Single Audit Act of 1984.
(1) Expenditures for this program include State, and/or Other Funds. (2) Expenditures are not maintained by fund source.
See notes to the general purpose financial statements. - 20-

ATHENS REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30.1996
INTEREST BEARING ACCOUNTS
Athens First Bank and Trust, Athens, Georgia
Certificate of Deposit No. 71733 (5.63%)
Bank of Danielsville, Danielsville, Georgia
N.O.W. Account (2.63%)
Georgia National Bank, Athens, Georgia
N.O.W. Accounts (Variable) Passbook Savings Account (4.54%) Certificates of Deposit No. 81212266 (4.75%)
Nations Bank, Athens, Georgia
Certificate of Deposit No. 35259 (5.40%) Certificate of Deposit No. 1298134 (4.89%)
SunTrust Bank, Athens, Georgia
N.O.W. Accounts (1.25%) Certificate of Deposit No. 30011 (4.05%)
OTHER
Petty Cash

SCHEDULE "2"

$ 81,133.81

10,873.89

$ 361,866.31 2,n8.82 14,811.90

379,457.03

$ 15,000.00 51,630.22

66,630.22

$ 269,360.80 4,756.46

274,117.26

725.00

$ 812,937.21

See notes to the general purpose financial statements.

- 21 -

ATHENS REGIONAL LIBRARY INVESTMENTS JUNE 30. 1996
COMMON STOCK 20 Shares of Amerada Hess Corporation 45 Shares of USLIFE Corporation

SCHEDULE "3M

$

902.50

1,398.08

$

2,300.58

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

ATHENS REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "4"

Education, Georgia Department of Federal Program Library Services and Construction Act Title III - Interlibrary Cooperation and Resource Sharing
Education, U. S. Department of Federal Program Library Services and Construction Act Title VI - ,Ubrary Literacy Program
Franklin County Commissioners Local Support
Franklin Springs, City of Local Support
Friends of Athens-Clarke County Library Gift Support
Lexington, City of Local Support
Madison County Commissioners Local Support
Madison County Council for the Arts Grassroots Arts Project
Oglethorpe County Commissioners Local Support
Technical and Adult Education, Georgia Department of Job Training Partnership Act

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

153.45

$

153.45

$ 4,145.25
300,00 3,010.75
500.00 18,209.89
583,51 7,000.00

5,374.16

5,374.16 4,145,25
300.00 3,010.75
500.00 18,209.89
583.51 7,000.00

9,569.43

9,569.43

$

33,902.85 $

14,943.59 $ ===48=,8:::4=6:::.4=4

See notes to the general purpose financial statements.

- 23 -

ATHENS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Public Ubraries Salaries and Travel Ubrary Materials Talking Book Centers Maintenance and Operations Lottery Program Technology Installation

$ 406,729.22 101,563.00 84,133.00 94,963.00
$

10,000.00

$ 406,729.22 101,563.00 84,133.00 94,963.00
10,000.00

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

$

91,181.00

91,181.00

Georgia Humanities Council Homeplace Grant

3,993.65

3,993.65

Human Resources, Georgia Department of Rehabilitation Services Grant

1,260.11

1,260.11

Northeast Georgia Regional Development Center Grassroots Art Project

1,945.30

1,945.30

$ 694,587.28 $

10,000.00 $

91,181.00 $ 795,768.28

See notes to the general purpose financial statements.

24 -

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

ATHENS REGIONAL LIBRARY SCHEDULE OF OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

GOVERNMENTAl FUND TYPES

SPECIAL

CAPITAl

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAl

$

10,000.00

57,875.00

25,000.00

15,277.00

1,500.00 600.00
1,200.00 5,700.00 34,304.96 6,710.00 5,000.00 4,000.00

$

10,000.00

57,875.00

25,000.00

15,277.00

$ 30,000.00

31,500.00 600.00
1;200.00 5,700.00 34,304.96 6,710.00 5,000.00 4,000.00

1,097,036.91 18,893.00 57,875.00 99,287.00 7,000.00

361,360.00

1,097,036.91 18,893.00 57,875.00
460,647.00 7,000.00

479.70 38,882.61
2,131.67 15,091.85
8,524.94 95,412.68 22,823.33
1,300.00
$
7,761.52

33,194.83 -20,409.83

3,429.73

479.70 38,882.61
2,131.67 18,521.58
8,524.94 95,412.68 22,823.33
1,300.00
33,194.83 -20,409.83
7,761.52

$ 1,639,667.17 $

12,785.00 $ 394,789.73 $ 2,047,241.90

See notes to the general purpose financial statements.

- 25 -

ATHENS REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE ...,..

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Travel of Board Members Property Services Other Purchased Services Supplies Ubrary Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 1,409,688.42 $ 326,408.61 18,576.75 33,163.42 51.50 65,091.70 14,692.47 64,095.07 261,521.62 115,581.01 54,223.01 3,759.00

37,256.54 $ 8,987.39 466.83
14,539.65
29,866.81
8,668.32 330.00 204.33

1,446,944.96 335,396.00 19,043.58 47,703.07 51.50 65,091.70 14,692.47 93,961.88 261,521.62 115,581.01 62,891.33 4,089.00 204.33

43,868.79

37,157.19

81,025.98

$ 2,410,721.37 $ 137,477.06 $ 2,548,198.43

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

ATHENS REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAM YEAR ENDED JUNE 30,1996
EXPENDITURES Nonoperating Costs Equipment

SCHEDULE "8"
TECHNOLOGY INSTALLATION $ ======10:=,::.00=0::::;.0:=0

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

ATHENS REGIONAL LIBRARY MEMBERSHIP AND TRAVEL OF LIBRARY BOARD
YEAR ENDED JUNE 30.1996

BOARD MEMBER ADDRESS

Mr. William Berryman, Chairperson (*) P. O. Box 8108 Athens, Georgia 30603

Mr. PhUlip Pollock, VICe-Chairperson (*) 359 Greencrest Drive Athens, Georgia 30605

Mr. Patrick Tritt, Treasurer (*) 825 Baxter Street Athens, Georgia 30606

Mrs. Barbara Cabaniss (*) P. O. Box 100 Maxeys, Georgia 30671
Mrs. Nancy Clark (*) P. O. Box 451 Lexington, Georgia 30648

Mrs. Miriam Delk (*) Route 3, Box 3431 Colbert, Georgia 30628

Mr. Wingate Downs (*) Route 1, Box 2128 Arnoldsville, Georgia 30619

Mr. Frank Ginn (*)

Route 3, Box 3693

Royston, Georgia 30662

'.

Gen. (ret) Eugene Phillips (*) 546 Virginia Hills Road Royston, Georgia 30662

Mrs. Ellen Purvis (*) 1170 Hickory Hill Drive Watkinsville, Georgia 306n

Mr. Gene Ruffin (*) 108 Colonial Drive Athens, Georgia 30606

Mrs. Rachel Sorrow (*) P. O. Box 127 Franklin Springs, Georgia 30639

Mrs. Rosemary Stancil (*) 1220 Mason Mill Road Athens, Georgia 30606

See notes to the general purpose financial statements.

28

SCHEDULE "9"

BOARD MEMBER ADDRESS
r) Mrs. Betty Sweeney
P.O. Box 56
Carlton, Georgia 30627
Mr. Harvey C. Veal r)
95 Tucker Street Royston, Georgia 30662
Mrs. Gene Weeks 183 Mell Street Athens, Georgia 30605
Mr. Peter Wyllie (*) 1061 Briar Lakes Road
Watkinsville, Georgia 306n

ATHENS REGIONAL LIBRARY MEMBERSHIP AND TRAVEL OF LIBRARY BOARD
YEAR ENDED JUNE 30. 1996

(*) Denotes Board Members Serving as of June 30, 1996

SCHEDULE "9"

$

51.50

$ -=_ _===51;,;;;.50;;;;;.

See notes to the general purpose financial statements.

- 29 -

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1996

SCHEDULE "10"

PERSONNEL

Abney, Akers, Alexander, Allen, Ames, Aquino, Archibald, Arington, Atwood, Auwater, Bahn, Barnes, Belanger, Bindner, Blake, Boop, Boyd, Boyer, Bracy, Brantley, Braswell, Brooks, Brown, Brown, Brown, Burks, Burroughs, Cape, Carlan, Carter, Carter, Carter, Clark, Cochran, Colegrove, Conrad, Coram, Costan, Covington, Cox, Daniel,

LeeM. Marshall H. Cynthia M. NancyE. Kathryn S. Tiffany R. Wrenford N. Christina M. JudyJ. Clare Sarah C. CarolA. Elizabeth B. Linda Kay Phyllis M. Cheryl L. Meghan M. Carlie M. TimothyM. Lauren Mary Phyllis M. BillieK. Eddie Lee Valerie M. Petula C. JanetA. Betty J. Marsha D. Laura W. Robert B. Sara S. Jennifer S. JenniferA. Susan C. Peggie D. Barbara H. MichelleA. Kristie D. AmyL. Dorothy D.

POSITION
Circulation Clerk Circulation Clerk Library Assistant II Circulation Clerk Director Circulation Clerk Learning Center Manager Chief Clerk Librarian Extension Librarian Circulation Clerk Library Assistant Librarian Library Assistant Administrative Assistant Library Assistant Circulation Clerk SubstiMe Circulation Clerk Circulation Clerk Branch Clerk Branch Clerk Branch Manager Library Assistant Circulation Clerk Branch Clerk Library Assistant II SubstiMe Student Assistant General Services Librarian Library Technician Branch Assistant Circulation Clerk Circulation Clerk Special Programs Coordinator Library Assistant I Branch Manager Circulation Clerk Branch Clerk Circulation Clerk Library Assistant II

SALARIES

TRAVEL

$

85.00

9,355.63

17,055.96 $

462.00

56,661.32

1,660.50

22,380.96

13,332.96

40,165.30

41,800.20

331.50

3,154.55

7,298.71

14,429.96

21,621.60

6,579.38

3,244.51

3,095.00

983.11

4,219.60

5,880.00

5,702.85

23,483.04

51.00

844.99

3,506.63

20,799.96

23.38

11,197.72

25,635.12

5,850.86

17,263.92

1,117.60

170.00

34,839.96

4,677.13

10,477.92

2,718.75

2,524.55

3,371.50

15,558.00

830.46 3,725.62
612.82 370.92
182.50 68.50 156.00
2.00 4.25
12.00 12.00 40.00 30.00 80.00
23.50

- 30-

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1996

SCHEDULE "10"

PERSONNEL

Davis, Dillard, Donovan, Driver, Echols, Edwards, Elsner, Felton, Field, Firestone, Fleming, Frey, Gartrell, Gerson, Giannasi, Goode, Gordon, Graham, Greene, Gregory, Hardy, Hartel, Hasty, Hawkes, Hayes, Haynes, Hellriegel, Hendrix, Hill, Jameson, Jensen, Jewell, Jewell, Kadhum, Keister, Knight, Kotlair, Krug, Labbo, Larson, LeCroy,

Sarah G. Lorraine Georgie L. Mary Anne R. Jennie R. Virginia B. Jacqueline C. Mildred DianeM. GailC. Alfreda W. Valerie J. BonnieT. Tamra F. Claire E. Tracie S. Mable L. Theresa L. Layota R. Katherine H. Sarah L. MaryJ. Elizabeth Monica R. Elizabeth M.
Gloria K.
Kimberly S. Louise M. Debra A. Cynthia C. Jan Marie Prentice L. Prentice L., Jr. EmilF. MargaretA. Mary Leslie Margaret Erica L. LeighA. ThomasW. EmmaL.

POSITION

SALARIES

TRAVEL

Library Assistant I

$

Maid/Housekeeper

Library Assistant I

Extension Librarian

Branch Manager

Literacy Coordinator

Children's Librarian

Substitute

Library Assistant I

Library Assistant III

Library Assistant II

Library Assistant II

Branch Clerk

Library Assistant I

Page

Literacy Instructor

Library Assistant II

Library Assistant II

Page

Telephone Reference Assistant

Library Assistant II

Young Adult Librarian

Circulation Clerk

Library Assistant

Substitute

Library Assistant II

Circulation Clerk

Branch Manager

Library Assistant

Branch Assistant

Library Assistant

Janitor

Janitor Assistant

Acquisitions Specialist

Literacy Instructor

Literacy Instructor

Library Assistant I

Literacy Instructor

Circulation Clerk

Circulation Clerk

Branch Substitute

1,072.31 5,466.08 1,584.70
36,259.92 $
18,996.10 18,741.29 39,999.80
550.38 1,135.43 22,359.96 19,750.00 10,631.50 2,908.35 5,160.68
673.63 6,233.50 14,247.96 14,997.00 2,454.39 12,373.92 17,503.00 29,804.76 3,658.60 1,037.75 3,195.00 16,723.20
712.80 10,477.92
238.00 17,263.92
344.50 20,327.92
3,717.50 1,406.14 1,984.50 7,400.00 3,030.44 2,856.00
145.20 624.22 4,239.39

1,441.50 21.50 171.33
365.57
1,361.68 141.50 11.00
123.00 25.00 537.00
27.75 16.00 4.25 163.75 15.75
44.50

- 31 -

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1996

SCHEDULE "10"

PERSONNEL

Lester, Limehouse, Lott, Maddox, Malloy, Manning, Manoll, Martin, Martin, Mavromatis, McDuffie, McGlockling, McLain, McNair, Mitchell, Mize, Moak, Monk, Moore, III Morgan, Murphy, Nakama, Nichols, Olson, Padgett, Parham, Patrick, Paul, Pierce, Poole, Provost, Randall, Rash, Ratcliffe, Rhym, Roberts, Salguero, Seaman, Seigler, Shuster, Smith,

Mary Lou ShannonT. GwenW. Daniel J. J. Kevin Rita Jennifer H. H.J.,Jr. JeremyS. K. Alexa JiIIH. Tonya S. lisaK. Arne Laura Ann John Harold Linda C. Jonathan D. John H. John C. Janet JulieT. Sandra K. Katherine S. Catherine C. WesleyB. S. Louise Alice S. WilmaJ. Celise E. Jeanne L. Joseph B. Julia H. MaryO. Darren SheilaA. Terry H. Judy Phillip E. Heather A. Mildred C.

POSITION

SALARIES

TRAVEL

Branch Manager

$

Branch Clerk

Branch Assistant

Page

Library Assistant"

Branch Clerk

Telephone Reference Assistant

Library Assistant"

Courier

Library Assistant I

Branch Assistant

Branch Clerk

Branch Assistant

Library Assistant II

Student Assistant

Circulation Clerk

Library Assistant

Computer Specialist

Library Assistant I

Library Assistant I

Branch Clerk

Floater

Library Assistant I

Floater

Volunteer Coordinator

Library Assistant I

Branch Clerk

Branch Manager

Substitute

Business Manager

Library Assistant III

Literacy Instructor

Circulation Clerk

Public Relations Assistant

Literacy Instructor

Branch Substitute

Literacy Instructor

Library Assistant

Library Assistant"

Circulation Clerk

Library Assistant"

9,131.50 $ 10.00
4,035.15 3,531.77 3,154.84 4,944.75 4,743.70 7,207.14 3,542.84 12,343.05 3,102.98
127.50 11,766.72 10,665.96
650.25 3,286.80 2,292.68 19,688.15 5,131.32 2,410.92 16,494.00 6,69422 14,080.09 6,195.02 16,882.62 3,294.38
752.39 9,310.30
14.88 25,230.43
441.00 924.00 301.24 18,442.56 3,220.00 168.94 1,629.25 3,698.64 16,379.92 2,319.83 22,380.96

13.20 11.00 13.00
61.05 37.25
10.00 481.00
12.00
19.00 412.10 288.00
9.00

- 32-

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1996

SCHEDULE "10"

PERSONNEL

Smith, Snook, Stauffer, Stone, Strawn, Stribling, Taras, Tate, Taylor, Thomas, Van Gorder, Wagner, Walker, Washington, Weber, Wiggins, Wilcox, Wilhite, Williams, Williams, Williams, Woodgeard, Wright, Wynne, York, Young, Ziegler,

NancyS. Caren M. Patricia S. Christopher P. TImothyT. Twanna B. KayA. WilliamJ. Prudence A.
Jennifer L.
Patricia H. Suzanne E. JulieW. Larry L. Marcia E. Eartha Lee Doris S. Terry E. Cynthia G. Diane T. Karen M. Christopher D. Janet Betsy Faith Amanda P. Ellen K. WilliamM.

Total Cash Basis

Accruals June 30, 1996

POSITION
Reference Librarian Uteracy Instructor Business Manager Acquisitions Clerk Manager Technical Services Library Assistant II Branch Clerk Library Assistant II Librarian - Heritage Room Circulation Clerk Page Receptionist Assistant Director Uteracy Instructor Special Projects Coordinator Branch Clerk Branch Clerk Circulation Clerk Accounting Assistant Head Acquisition Librarian Circulation Clerk Circulation Clerk Talking Book Center Librarian Substitute Library Assistant Literacy Coordinator Library Assistant

SALARIES

TRAVEL

$

42,436.40 $

13,409.79

13,372.30

12,750.71

25,833.33

17,191.00

1,264.12

16,830.48

41,800.20

45.23

1,952.50

2,779.88

45,584.80

2,814.00

2,860.05

775.72

34.00

212.50

1,925.00

22,098.00

360.80

1,096.21

41,200.20

248.40

5,320.37

4,853.42

800.40

9.00 121.50
74.00 595.00 107.50 111.00 785.15
3,776.94
21.00
1,291.24
163.00

$ 1,446,372.79 $

19,043.58

572.17

$ 1,446,944.96 $ ===19:i::,0=,=4=3=.5=8

See notes to the general purpose financial statements. - 33-

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 4, 1997

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
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, 1996, and have issued our report thereon dated February 4, 1997. 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 ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-I0

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.
Respe~y submitted,
~
Claude L. Vickers State Auditor
CLV:jy
96CRL-IO

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 4, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe 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, 1996, and have issued our report thereon dated February 4, 1997. 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, 1996:

(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 ofManagement and Budget's "Compliance Supplement for Single Audits ofState 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.

96CRL-60

Material instances of noncompliance consist offailures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed material instances of noncompliance that are described in the Schedule ofFindings and Improper or Questioned Costs.
We considered these material instances of noncompliance in forming our opinion on whether the Athens Regional Library's general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated February 4, 1997, on those financial statements.
Except as described above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the Athens Regional Library, complied, in all material respects, with the requirements listed in the second paragraph ofthis report, and with respect to items not tested, nothing came to our attention that caused us to believe that the 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.
Respectfully submitted,

CLV:jy 96CRL-60

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334.-8400
February 4, 1997

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 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 ofand for the year ended June 30, 1996, and have issued our report thereon dated February 4, 1997. 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 1996 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 (OMB) 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, 1996. As required by OMB Circular A-128, we have perfonned auditing procedures on the selected transactions to test compliance with the requirements govermng:

(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 ofwhich is the expression of an opinion on the Athens Regional Library's compliance with these requirements. Accordingly, we do not express such an opinion.

96CRL-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:jy 96CRL-120

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 4, 1997

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
REPORT ON INTERNAL CONTROL STRUCTURE 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, 1996, and have issued our report thereon dated February 4, 1997. 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.
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.
96ICL-3

In planning and performing our audit of the general purpose financial statements of the Athens Regional Library for the year ended June 30, 1996, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding ofthe 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 procedures for the purpose ofexpressing 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 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 ofCertified 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 entity's ability to record, process, summarize, and report financial data consistent with the assertions ofmanagement 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) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more ofthe specific 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, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Athens Regional Library's financial statements and this report does not affect our report thereon dated February 4, 1997.

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:jy 96ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 4, 1997

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 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, 1996, and have issued our report thereon dated February 4, 1997. 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 (OMB) Circular A-128, "Audits ofState and Local Governments". Those standards and OMB 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, 1996, 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 OMB 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 February 4, 1997.
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
96ICL-15

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 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 of any 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 ofthe, design and operation ofpolicies 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

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

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level ofEffort, 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, 1996, 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

96ICL-15

We performed tests of controls, as required by OMB 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 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 a certain matter involving the internal control structure and its operation that we consider to be a reportable condition 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, a reportable condition was noted in the following control category:
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 theirassigned functions.
Our consideration of the internal control structure policies 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, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal 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.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:jy 96ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

ATHENS REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Accounting Procedures Financial Statements Finding Resolved Audit Control Number 6292-94-02
The audit report for the year ended June 30, 1995, stated that the Library's accounting procedures were inadequate to provide for adequate internal control over cash assets of the Library. During the year under review, the Library implemented procedures to ensure adequate control over cash assets as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Refund Unexpended Grant Balance Federal Financial Assistance Finding Resolved 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 ofthe fiscal year for the LSCA - Title V Program (CFDA 84.239). During the year under review this amount was refunded to the U. S. Department of Education as required.
AUDIT FOLLOW-UP/RESOLUTION Voucher Sample Exceptions Financial Statements Federal Financial Assistance Finding Resolved Audit Control Number 6292-95-01
The audit report for the year ended June 30, 1995, noted deficiencies in accounting controls over expenditure transactions in the General Fund and the LSCA Title VI Program (CFDA 84.167). During the year under review, the Library implemented adequate safeguards over the procurement process.
AUDIT FOLLOW-UP/RESOLUTION Failure to File Required Reports Within Required Time Period Federal Financial Assistance Finding Resolved Audit Control Number 6292-95-02
The audit report for the year ended June 30, 1995, noted that the Library did not file the DE form 0554, Requisition for Reimbursement and the DTAE form 0552 Cash/In-Kind Match for Requisition for Reimbursement to the Georgia Department ofTechnical and Adult Education for the Job Training Partnership
- 1-

ATHENS REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Failure to File Required Reports Within Required Time Period Federal Financial Assistance Finding Resolved Audit Control Number 6292-95-02
Act Program (CFDA 17.250) within the required time period. In addition, all twelve ofthe DTAE form 0552's were incomplete. For the year under review, these reports were complete and filed 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, 1995, noted that the management ofthe 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.
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, 1995, stated that the Library did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, no improvement in adequate separation of employee duties was noted. This deficiency was a
-2-

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
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 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 ofinternal 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. CURRENT YEAR ALLOWABLE COSTS/COST PRINCIPLES Lack ofDocumentation for Expenditures Federal Financial Assistance Material Noncompliance Amount: $7,634.05 Audit Control Number 6292-96-01 A review ofjournal entries posted to the LSCA - Title I, Basic Grant Program (CFDA 84.034), 1995 CarryOver Project revealed that $7,634.05 of expenditures were transferred from the General Fund to the LSCA Title I Program without supporting documentation as required by Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). These journal entries were the result of management attempting to correct expenditures in excess of budget amounts for the General Fund by moving expenditures to the LSCA - Title I Program. The Georgia Department ofEducation should review this matter to determine the allowability of these charges.
-3-

ATHENS REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR ALLOWABLE COST/COST PRINCIPLES Failure to Utilized Funds for Intended Purpose Federal Financial Assistance Material Noncompliance Amount: $6,968.50 Audit Control Number 6292-96-02 Expenditures for the LSCA-Title I Basic Grants Program (CFDA 84.034) 1995 Carry-Over Project included $6,968.50 forinsurance which represented one half ofthe Library's insurance premium for the policy year. The amount charged included property, workers' compensation and automobile coverage and far exceeded the program's pro rata share. The use ofprogram funds for insurance was not in accordance with the original grant budget. Additionally, the entire expenditure to the project does not appear to be a proper expenditure ofFederal Financial Assistance Funds in accordance with cost allowability criteria defined in Office ofManagement and Budget Circular A-87, which states in part "cost must be necessary and reasonable for proper and efficient administration ofthe grant programs, ... ". This situation occurred when insurance cost, normally supported from the General Fund, was transferred to the LSCA Title I Program by a journal entry which did not have an adequate explanation. The Georgia Department ofEducation should review this matter to determine the allowability ofthis expenditure.
Note: The Athens Regional Library was provided an opportunity to include pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusion in this report.
-4-