Audit report, Athens Regional Library, Athens, Georgia, year ended June 30, 1997

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AUDIT REPORT ATHENS REGIONAL LIBRARY
ATHENS, GEORGIA YEAR ENDED JUNE 30, 1997
-------- - - - - - - - - - - - - - - - - - ----
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

ATHENS REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

15

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

16

2

FEDERAL

17

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

18

4 SCHEDULE OF SALARIES AND TRAVEL

19

SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF CURRENT YEAR FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education
and Director and Members of the Athens Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Athens Regional Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Athens Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose 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.
* The Library did not report inventories for resale within the general-purpose financial statements as
required by generally accepted accounting principles.

97ARL-42

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 referred to above present fairly, in all material respects, the financial position of the Athens Regional Library as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Athens Regional Library taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such 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 of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:gp 97ARL-42

Claude L. Vickers State Auditor

ATIffiNS REGIONAL LffiRARY

ATHENS REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 1997

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Amount to be Provided in Future Years
For Payment of Compensated Absences

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 454,042.44 $

48,156.75

2,264.70

18,089.67

Total Assets

$ 474,396.81 $===4:::::::!8,=15=:6:::::.7=5

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Contracts Payable Retainages Payable Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 474,396.81 $ _ _---'-48=,..;.;15;;...::6..:.;7..~5 $ 474,396.81 $ _ _-..:..:48:::.l.'.:;:15;":6;,:,,7:.-=-5

Total Liabilities and Fund Equity

$ 474,396.81 $ ======48=,=15=6:::.7==5

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

EXHIBIT"A"

TYPES CAPITAL
PROJECTS FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$

655.721.18

$ 1,157,920.37 $

812,937.21

2,264.70

2.300.58

18.089.67

48,846.44

$

89,452.02

89,452.02

100,102.27

$

655.721.18 $

89,452.02 $ 1.267,726.76 $====9=64=.=18=6=.5==0

$

162.669.00

68,040.60

$

$

230,709.60 $

$ 89,452.02 89,452.02 $

$
162,669.00 68,040.60 89,452.02
320.161.62 $

662.58 572.17
100,102.27 101.337.02

$

425,011.58

0.00

$ _ _..;.42;;.;5'-'-.0'--'1..;.1.;.;.5""-8

$

655,721.18 $

$

425.011.58 $

372,740.20

522.553.56

490.109.28

$

947.565.14 $ _----=8=62=..;;..84=9~.4.;;..8

89,452.02 $ 1.267.726.76 $ ====9=64=.=18=6=.5==0

-3-

ATHENS REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 3D, 1997

EXHIBIT"B"

FUND BALANCE JUNE 30

$ 474,396.81 $ 48,156.75 $ 425,011.58 $ 947,565.14 $ 862,849.48

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

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

EXHIBIT "C"

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

GENERAL FUND

BUDGET

ACTUAL

$ 715,007.81 $ 708,224,34 29,821.41
1,775,665.03 1,752,579,76
$ 2,490,672,84 $ 2,490,625,51

$ 2,175,330.92 $ 18,000.00
239,010.13 146,146.87

2,090,510.52 13,000,00
221,360.41 145,644,84

$ 2,578,487.92 $ 2,470,515,77

$ -87,815.08 $

20,109.74

8,350.00

0.00

$ -79,465.08 $ 491,676.66 -18,485,58

20,109,74 454,287.07

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 13,250.00 $ 13,250.00

29,122.84

29,122.84

17,507.45

$ 42,372.84 $ 59,880,29

$ 37,282.84 $ 37,661,21

5,090.00

9,884.54

$ 42,372.84 $ 47,545.75

$

0.00 $ 12,334,54

0,00

0.00

$

0.00 $ 12,334.54

35,822.21

FUND BALANCE JUNE 30, 1997

$ 393,726,00 $ 474,396.81

$======0==.0==0 $ 48,156.75

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

ATHENS REGIONAL LIBRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Athens Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 205-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library.
The Library Board consists of 16 members; 4 members appointed by Clarke County Library Board, 3 members appointed by Franklin County Library Board, 3 members appointed by Madison County Library Board, 3 members appointed by Oconee County Library Board and 3 members appointed by Oglethorpe County Library Board. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Athens Regional Library is therefore determined to be a joint venture.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
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 fmancial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:

-6-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for 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 fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be fmanced 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 (Le., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
-7-

ATHENS REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Department of Technical and Adult Education as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Donated investments are stated at fair market value as of the date donated. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

-8-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 type 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.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present fmancial 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.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
- 9-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS
(l) Surety bond signed by a surety company du1y qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1997, the bank balances were $1,360,430.67. 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.
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, 1997, as follows:

- 10-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 355,180.51

2

921,150.15

3

84,100.01

Total

$ 1.360.430.67

CATEGORIZATION OF INVESTMENTS At June 30, 1997, the carrying amount ofthe Library's total investments was $2,264.70 and this entire amount consisted of common stock which was insured or registered, or securities held by the Library or its agent in the Library's name. The market value of these investments was $3,451.00.

Note 3: RISK MANAGEMENT

The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; 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 of the past three years.

The Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to this risk 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. The Library has not experienced any unemployment compensation claims during the last two years.

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

Position Covered

Amount

Board Chairman Board Vice-Chairman Board Treasurer Director Bookkeeper

$ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00

- 11 -

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1997, were as follows:

Compensated Absences

Balance July 1, 1996

$ 100,102.27

Additions Leave Earned and Utilized (Net)

-10,650.25

Balance June 30, 1997

$ 89.452.02

Note 5: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as of June 30, 1997, together with funding available:

Proiect

Unearned Executed Contracts

Funding Available From State

6292-95S-SBOO 1 6292-95S-SB002

$ 8,327.00 $ 37,042.00

339,208.00

97,274.00

$ 347.535.00 $ 134.316.00

The amounts described in this note are not reflected in the general purposefmancial 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.

Note 7: ACCUMULATED EMPLOYEES' LEAVE

All regular employees earn vacation leave ranging from fifteen to twenty-one days each year depending upon each employee's length ofemployment. 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

- 12 -

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 143,142.99 $ 143,699.18 $ 127,915.26

- 13 -

ATHENS REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"E"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

LOTTERY PROGRAM

FEDERAL PROGRAM

OTHER PROGRAMS

TOTALS JUNE 30,1997 JUNE 30,1996

$

0.00 $

0,00 $ 48,156.75 $

48,156,75 $

35,822.21

14,943.59

$

0,00 $

0.00 $

48,156.75 $

48,156.75 $

5..0...,7._6.5...8..0=

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable

Total Liabilities

FUND EqUITY

Fund Balances

Unreserved

Undesignated

$

0.00 $

$

14,160.50

210.92

572,17

$ _ _...:.1-,-,4,.,;;;,.94.:..::3.:..::.5~9

0,00 $

48,156,75 $

48,156.75 $ _ _...:3:.;:5.:.:,8;::2:=;2.=.21,,-

Total Liabilities and Fund Equity

$

0,00 $

0.00 $

48',156.75 $

48,156.75 $ ............5.;,;;0.,.7..6..5..8..0=

See notes to the general purpose financial statements.

- 14-

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

EXHIBIT"F"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Administration Maintenance and Operations
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

LOTTERY FEDERAL

OTHER

PROGRAM PROGRAM PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$ 13,250.00 $ 29,122.84 $

$
17,507.45

$ 13,250.00 $ 29,122.84 $ 17,507.45 $

13,250.00 $
29,122.84 17,507.45
59,880.29 $

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

$ 13,250,00 $ 24,411.21 4,711.63 $

$
5,172.91

$ 13,250.00 $ 29,122.84 $ 5,172.91 $

$

0,00 $

0,00 $ 12,334.54 $

37,661.21 $
9,884.54
47,545,75 $ 12,334,54 $

117,495.50 12,981.56 7,000.00
137,477.06
8,443,44

1,147.49

$

0.00 $

0,00 $ 12,334.54 $

12,334.54 $

9,590.93

0.00

0,00

35,822.21

35,822.21

26,231.28

FUND BALANCE JUNE 30

$

0.00 $ _ _",;;0,;,,;;.0;;;.0 $ 48,156,75 $

48,156.75 $ _~35;,:,,8;,;;2_2_.2,;,.1

See notes to the general purpose financial statements.

-15-

ATHENS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30,1997

SCHEDULE"1"

AGENCY/FUNDING
GRANTS Georgia Humanities Council Community Conversations on Religion in Georgia Project
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Talking Book Center Maintenance and Operation Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

CAPITAL

FUND

FUND

PROJECTS

TOTAL

$

1,819.48

$

1,819.48

$ 1,208,851.00

1,208,851.00

421,886.86 99,954.00 91,210.00 93,354.00
_ _ _ _ $ 13,250.00

421,886.86 99,954.00 91,210.00 93,354.00
13,250.00

$ 708,224.34 $ 13,250.00 $ 1,208,851.00 $ 1,930,325.34

See notes to the general purpose financial statements.

-16 -

ATHENS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1997

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Appalachian Regional Commission Through Madison County Board of Commissioners Adult Literacy Program
Education, U. S. Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services Title VI - Library Literacy Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

29,821.41

$ 29,821.41

$

22,000.00

7,122.84

22,000.00 7,122.84

$

29,821.41 $

29,122.84 $ 58,944.25

See notes to the general purpose financial statements.

- 17 -

EXPENDITURES
Program Services Equipment

ATHENS REGIONAL LIBRARY SCHEDULE OF EXPENDITURES
LOTIERY PROGRAM YEAR ENDED JUNE 30,1997

SCHEDULE "3"
ASSISTIVE TECHNOLOGY $ =====13=,2:=5:=0:=,0=0

See notes to the general purpose financial statements, -18 -

PERSONNEL
Abney, Akers, Alexander, Ames, Archibald, Arington, Atwood, Auwarter, Barnes, Barnes, Bindner Blake, Boop, Boyer, Brantley, Braswell, Brooks, Brooks, Brown, Burroughs, Cape, Carlan, Carter, Carter, Carter, Clark, Colegrove, Conrad, Coram, Cornelius, Daniel, DeFoor, Dickert, Dillard, Driver, Echols, Edwards, Edwards, Elsner, Etheridge, Felton, Firestone, Fleming, Frey, Gartrell, Gerson, Goode, Gordon, Graham, Greene, Gregory, Hardy, Hartel, Hasty, Hawkes, Hayes,

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 3D, 1997

SCHEDULE "4"

LeeM. Marshall H. Cynthia M. Kathryn S. Wrenford N. Christina M. Judy J. Clare Carol A. Juanita S. Linda Kay Phyllis M. Cheryl L. Carlie M. Lauren Mary Phyllis M. William E.
Billie K. Janet A.
Betty J. Marsha D. Laura W. Robert B. Sara S. Jennifer S. Susan C. Peggy D. Barbara H. Jennifer E. Dorothy D. Katrina J. Christine E. Lorraine Mary Anne R. Jennie R. Ira, Jr. Virginia B. Jacqueline C. Lannie L. Mildred GailC. Alfreda W. Valerie J. Bonnie T. Tamra F. Tracie S. Mable L. Theresa L. Layota R. Katherine H. Sarah L. Mary J. Elizabeth Monica R. Elizabeth M.

POSITION
Circulation Clerk Circulation Clerk Library Assistant II Director Learning Center Manager Chief Clerk Librarian Extension Librarian Library Assistant Branch Clerk Library Assistant Administrative Assistant Library Assistant Substitute Circulation Clerk Branch Clerk Branch Clerk Security Guard Branch Manager Library Assistant II Substitute Student Assistant General Services Librarian Library Technician Branch Assistant Circulation Clerk Special Programs Coordinator Library Assistant I Branch Manager Library Assistant Library Assistant II Branch Clerk Student Assistant Maid/Housekeeper Extension Librarian Branch Manager Security Supervisor Literacy Coordinator Children's Librarian Floater Substitute Library Assistant III Library Assistant II Library Assistant II Branch Clerk Library Assistant I Literacy Instructor Library Assistant II Library Assistant II Page Telephone Reference Assistant Library Assistant II Circulation Clerk Young Adult Librarian Library Assistant Substitute
- 19-

SALARIES

TRAVEL

$

1,042.50

10,251.12 $

7.00

5,951.82

311.00

59,206.92

4,360.70

22,677.24

7.00

13,668.97

7.00

45,582.00

1,226.61

44,272.00

336.63

450.65

1,793.13

14,715.93

76.00

21,843.90

106.25

2,957.64

150,00

1,562.50

742.05

6,268.50

7.00

6,192.75

7.00

330.00

22,608.95

45.75

20,799.96

58.75

24.13

13,395.56

49.00

26,959.18

7.00

6,860.45

7.00

17,781.86

148.75

5,203.41

35,073.96

31.50

3,331.50

7.00

10,477.92

276.50

3,113.25

55.50

15,745.47

125.00

2,740.02

91.38

5,955.06

36,754.92

788.51

14,866.80

39.75

691.13

20,057.76

214.50

42,400.00

357.25

708.76

346.38

31,443.19

472.60

20,290.44

84.00

10,683.39

7.00

3,098.10

16.00

5,633.94

7.00

1,708.00

14,403.93

7.00

15,215.25

7.00

2,316.88

20,412.20

1,020.66

18,012.75

7.00

31,129.08

866.80

7.00

4,630.00

7.00

1,122.50

PERSONNEL
Haynes, Hendrix, Hill, Hoefs, Jameson, Jensen, Jewell, Jewell, Jewell, Jordan, Knight, Kotlair, Labbo, LaFlamme, LeCroy, Lester, Lott, Maddox, Manning. Martin, Martin, Martinez, Mavromatis, McDuffie, McHugh, McLain, McNair, Mize, Monk, Moore, Murphy, Nakama, Nickels, Nunnally, Overstreet, Padgett, Pals, Parks, Parsons, Patrick, Paul, Phillips, Poole, Randall, Rash, Ratcliffe, Rhym, Rizer, Roberts, Rockwell, Salguero, Schnelle, Scott, Seaman, Seigler, Smith,

Gloria K.
Louise M. Debra A. Nancy A. Cynthia C. Jan Marie April C. Charlie Prentice L. Percy H., Jr. Mary Leslie Margaret Leigh A. Katherine O. Emma L. Mary Lou GwenW. Daniel J. Rita H. J., Jr. Jeremy S. Therese M. K. Alexa Jill H. Kristie C. Lisa K. Ame John Harold Jonathan D. John H., III Janet JulieT. Robert R. Erica M. Stacy S. Catherine C. Lindy A. Virginia S. Edith J. S. Louise AliceS. Lauren C. Celise E. Joseph B. Julia H. Mary O. Darren Jasmine O. Sheila A. Sabra Terry H. Brannon W. Aurelia C. Judy Phillip E. Fred O.

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

POSITION
Library Assistant II Branch Manager Library Assistant Circulation Clerk Branch Assistant Library Assistant Student Assistant Janitor Assistant Janitorial Security Guard Literacy Instructor Library Assistant I Circulation Clerk Children's Assistant/Floater Branch Substitute Branch Manager Branch Assistant Page Branch Clerk Library Assistant II Courier Circulation Clerk Library Assistant I Branch Assistant Branch Assistant Branch Assistant Library Assistant II Circulation Clerk Computer Specialist Library Assistant I Branch Clerk Floater Technical Services Clerk Summer Clerk/Circulation Public Relations Coordinator Volunteer Coordinator Floater Branch Clerk Library Assistant-Learning Center Branch Clerk Branch Manager Student Assistant Business Manager Public Relations Assistant Literacy Instructor Circulation Clerk Literacy Instructor Student Assistant Branch Substitute Security Guard Literacy Instructor Branch Student Assistant/Page Library Assistant I Library Assistant Library Assistant II Student Assistant/Page

SALARIES

TRAVEL

$

16,972.77 $

7.00

10,477.92

91.75

3,979.14

7.00

494.00

18,116.88

7.00

2,876.29

1,171.75

1,310.00

24,145.48

219.50

1,125.00

17,797.12

3,676.31

7.00

2,066.63

6,560.61

4,450.50

25.00

9,387.00

93.45

4,409.67

50.50

3,203.76

4,816.80

6,514.82

4.25

4,928.18

143.00

13,389.27

94.28

3,727.95

32.00

275.50

546.84

10,778.73

74.40

5,643.58

7.00

21,137.30

393.38

1,664.08

17,326.44

7.00

4,737.63

7.00

13,364.01

237.50

2,773.34

58.25

17,289.96

1,569.24

585.75

2,253.55

10.50

1,141.88

120.00

9,828.00

17.00

1,489.13

32,460.75

91.25

6,461.00

906.68

1,207.25

1,820.00

4,289.38

121.13

54.00

817.25

1,411.94

1,432.50

5,007.15

7.00

16,873.92

7.00

114.00

- 20-

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30.1997

SCHEDULE ':4"

PERSONNEL

Smith, Smith, Smook, Stone, Strawn, Stribling, Sutton, Taras, Tate, Taylor, Thompson, Torres, Van Gorder, Wagner, Walker, Walker, Watkins, West, Williams, Williams, Williams, Woodgeard, Wright, Wright, Wynne, York, Young, Young,

Mildred C. Nancy S. Caren M. Christopher P. Timothy T. Twanna B. Leroy Kay A. WilliamJ. Prudence A. Wanda Ernest J. Patricia H. Suzanne E. JulieW. Marvin Kenneth L. Eyvonne H. Cynthia G. Diane T. Karen M. Christopher D. Janet Shelby L. Betsy Faith Amanda P. Ellen K. Jeffrey E.

Total Cash Basis

Accruals June 30, 1996

POSITION
Library Assistant II Reference Librarian Literacy Instructor Acquisitions Clerk Manager Technical Services Library Assistant II Teacher-Learning Center Branch Clerk Library Assistant II Librarian - Heritage Room Branch Substitute Library Assistant-Learning Center Page Receptionist Assistant Director Security Guard Security Guard Branch Substitute Accounting Assistant Head Acquisition Librarian Circulation Clerk Circulation Clerk Talking Book Center Librarian Public Relations Coordinator Substitute Library Assistant Literacy Coordinator Security Guard

SALARIES

TRAVEL

$

23,334.24 $

7.00

21,954.00

7.00

386.06

15,833.94

7.00

25,641.40

36.00

17,700.75

7.00

2,600.00

1,197.00

19,248.40

44.50

38,827.08

7.00

21.38

916.13

4,727.80

616.88

47,915.00

1,159.04

1,309.50

517.50

66.50

1,486.11

22,372.50

25.75

5,943.78

3,333.98

44,982.00

1,199.89

13,593.00

203.89

785.70

3,183.66

7.00

15,723.03

41.50

72.00

$ 1,430,664.22 $ 16,096.53

-572.17

$ 1,430,092.05 $ 16,096.53

See notes to the general purpose financial statements.

- 21 -

SECTION II FINDINGS AND QUESTIONED COSTS

ATHENS REGIONAL LIBRARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997

FINDING CONTROL NUMBER AND STATUS

6292-93-01 6292-94-01 6292-96-01 6292-96-02

Umesolved Previously Reported Corrective Action Implemented Umesolved Umesolved

ATHENS REGIONAL LIBRARY SCHEDULE OF CURRENT YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6292-97-01
The Athens Regional Library did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. 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.
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Utilize Funds for Intended Purpose Amount: $7,068.10 Finding Control Number 6292-97-02
The Georgia Department of Technical and Adult Education provided Assistive Technology lottery funds to the Library for specific purposes as defmed in the application process. An inspection of equipment purchased with these funds disclosed a $7,068.10 computer workstation for the hearing and sight impaired that had not been installed and was not in use at the time of this audit.
This condition occurred because management failed to install equipment at the Library. The Geo,rgia Department of Technical and Adult Education should review this matter to determine if a refund is appropriate.