Audit report, Athens Regional Library, Athens, Georgia, year ended June 30, 1999

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AUDIT REPORT ATHENS REGIONAL LIBRARY
ATHENS, GEORGIA YEAR ENDED JUNE 30, 1999

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

ATHENS REGIONAL LIBRARY -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

14

2

FEDERAL

15

3

LOCAL

16

4 SCHEDULE OF SALARIES AND TRAVEL

17

SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 11, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
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, 1999, 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.
Except as discussed in the following paragraph, 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 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.
We did not observe the taking of the Library store inventory for resale at June 30, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is 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.
99ARL-43X

The aggregate effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue FUnd, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the Library store inventories for resale as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matter referred to in the preceding 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, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1999, the Library recorded Library store inventory for resale for inclusion in the general purpose financial statements. This change is in accordance 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 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 ofthe 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 adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe Library store inventories for resale as discussed in the third paragraph, such information is fairly presented in all material respects in relation to the genera) 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,
~*~
Rus ell W. Hinton State Auditor
RWH:gp 99ARL-43X

ATHENS REGIONAL LIBRARY

ATHENS REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 1999

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventol)' Amount to be Provided in Future Years
For Payment of Compensated Absences
Total Assets

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 309,538.40 $

51,304.19

180,299.87

17,364.93

20,216.43

416.54

18,187.84

$

510,054.70 $==~87;.f,2;,;7~3=.5=0

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventory for Resale For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

9,177.06 $

23,325.00

$

9,177.06 $

23,325.00

$
$ 500,877.64 $ 500,877.64 $

18,187.84
45,760.66 63,948.50

$

510,054.70 $ ===8=7,5;,2=:73;,;;.5=:0

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

$

17,419.35

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS (Memorandum Only) JUNE 30, 1999 JUNE 30, 1998

$

378,261.94 $

526,632.63

197,664.80

189,159.23

20,632.97

7,115.11

18,187.84

$ 101,791.25

101,791.25

102,407.74

$

17,419.35 $ 101,791.25 $

716,538.80 $ =====8=25:f,3:=1,.;,4=7"=1

$ $ 101,791.25
$ 101,791.25 $

32,502.06 $ 101,791.25

16.26 102,407.74

134,293.31 $ _----'-1=02=,4=2;...;.4.=00.0..

$

17,419.35

0.00

$

1.:. . :7-'-,4.:. . ;1=9:.::;.3. ;;. 5

$

18,187.84

17,419.35 $

24.971.47

546,638.30

697,919.24

$

582.245.49 $_---'-7=22=.8:;..;;9....:;.0.;.;..7.;...1

$

17,419.35 $ 101,791.25 $

716,538.80 $ =====8=25:f,3:=1,.;,4.=7=1

-3-

ATHENS REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1999

EXHIBIT "B"

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operation Information Technology
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Change in Inventory

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$ 763,774.40 1,600.00
1,712,255.66 235,579.07 $ 19,462.15 $
$ 2,713,209.13 $ 19,462.15 $

$
387.53 387.53 $

763,774.40 $ 1,600.00
1,712,255.66 255,428.75
2,733,058.81 $

1,130,278.70 38,568.53
1,711,695.22 234,411.67
3,114,954.12

$ 1,756,328.65 231,471.55 507,263.65 $ 29,897.78 144,295.96 214,694.63 $
$ 2,854,054.44 $ 29,897.78 $

$
7,939.65 7,939.65 $

1,756,328.65 $ 231,471.55 537,161.43 144,295.96 214,694.63 7,939.65
2,891,891.87 $

2,311,737.11 33,984.47
303,575.72 154,513.24
537,004.31
3,340,814.85

$ -140,845.31 $ -10,435.63 $ -7,552.12 $

641,722.95

56,196.29

24,971.47

18,187.84

-158,833.06 $ 722,890.71
18,187.84

-225,860.73 948,751.44

FUND BALANCE JUNE 30

$ 500,877.64 $63,948.50 $ 17,419.35 $

582,245.49 $ ==,,;,7;;:;22;,l,;,8;;,;;9;,;;,0;,;,.7,;,,1

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 - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1999

EXHIBIT "COO

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Local Funds Other Funds

$ 674,494.00 $ 763,774.40

1,600.00

1,546,899.73 1,712,255.66

115,251.15

235,579.07

Total Revenues

$ 2,336,644.88 $ 2,713,209.13

EXPENDITURES

Current Public Services Technical Services Support Services Maintenance and Operation Information Technology

$ 1,385,291.00 $ 1,756,328.65

226,759.00

231,471,55

499,963.00

507,263.65

145,500.00

144,295.96

221,062.00

214,694.63

Total Expenditures

$ 2,478,575.00 $ 2,854,054.44

Excess of Revenues over (under) Expenditures

$ -141,930.12 $ -140,845.31

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

5,000.00

-80,000.00

Total Other Financing Sources (Uses)

$ -75,000.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$ -216,930.12 $ -140,845.31

FUND BALANCE JULY 1. 1998

509,498.14

641,722.95

Change in Inventory

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 32,925.00 $ 19,462.15 $ 32,925.00 $ 19,462.15

$ 32,925.00 $ 29,897.78

$ 32,925.00 $ 29,897.78

$

0.00 $ -10,435.63

$

0.00 $ -10,435.63

0.00

56,196.29

18,187.84

FUND BALANCE JUNE 30, 1999

$ 292,568.02 $ 500,877.64

$==~O;,;'O,;:;,O $ 63,948.50

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

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

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 departure 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 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 Library 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 Library Board has the power to designate management, the power to retain unreserved fund balances of local and other 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 financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

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 of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for compensated absences not appropriately accounted for and recorded in other fund types.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
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 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.
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ATHENS REGIONAL LIBRARY

EXHIBIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

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 Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
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.
INVENTORIES
Inventories ofgoods for resale are valued at cost. Inventories of goods for resale are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet are equally offset by reservations of fund balance which indicate that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. For fiscal year 1999, the Library began recording inventories of goods for resale. The recording ofthe goods for resale inventories is a change in accounting principles.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia 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 ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) 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 ofthe following:
(l) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1999

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30,1999, the bank balances were $788,996.84. The amounts ofthe 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, 1999, as follows:

Risk CategOly

Bank Balance

1

$ 305,081.91

2

483,914.93

3

0.00

Total

$ 788.996.84

CATEGORIZATION OF INVESTMENTS At June 30, 1999, the fair value of the Library's total investments was $4,886.38 and this entire amount consisted ofcommon stock which was insured or registered, or securities held by the Library or its agent in the Library's name.

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

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 3: RISK MANAGEMENT

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 of that loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.

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

Position Covered All Employees

Amount $ 500.000.00

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows:

Balance July 1, 1998 Deductions
Annual Leave Earned and Utilized (Net)
Balance June 30, 1999
Note 5: ACCUMULATED EMPLOYEES' LEAVB

Compensated Absences
$ 102,407.74
616.49 $ 101.791.25

All regular employees earn vacation leave ranging from fifteen 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 ofpay upon termination of employment. See Note 1 - Compensated Absences

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 6: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIO},B 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 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

100% 100% 100%

$ 157,420.62 $ 144,981.07 $ 143,142.99

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ATHENS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1999
AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Talking Books Center Maintenance and Operations
CONTRACT Technical and Adult Education, Georgia Department of Governor's Reading Initiative Summer Reading Club Kick-off Program

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

455,368.40

12,000.00

102,198.00

96,410.00

95,598.00

2,200.00
$ ====76=3:1:,7:.;7=4=.4=1

See notes to the general purpose financial statements.

-14 -

ATHENS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30,1999
AGENCY/FUNDING OTHER National Endowment for the Humanities Through Emory University Kinfolk, Kudzu, and K-Mart: The Changing Voice of the American South

SCHEDULE "2"
GOVERNMENTAL FUND TYPE GENERAL FUND
$ ====1;.;,.6;,;0;";,0=,0,,,=0

See notes to the general purpose financial statements.

-15-

ATHENS REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30, 1999
LOCAL SOURCES Boards of Education Franklin County Madison County Oconee County Oglethorpe County City Governments Bogart Canon Carnes.nlle Lavonia Lexington Royston Franklin Springs Watkinsville Winterville County Governments Boards of Commissioners Clarke Franklin Madison Oconee Oglethorpe

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

22,275,00

62,000,00

25,000.00

15,000,00

3,500.00 600.00
1,500.00 6,200,00
500.00 6,875.00 1,200.00 7,500.00 7,225.98

1,229,519.83 21,750.04 78,425.00
185,964.73 37,220,08

$

1,712,255.66

See notes to the general purpose financial statements.

- 16-

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,1999

SCHEDULE "4"

NAME

TITLE CATEGORY

Alexander, Ames, Andersen, Andrews, Archibald, Arington, Atwood, Auwarter, Averill, Baggett-Clark, Baggott, Best, Bindner, Blake, Boots, Borezo, Bowden, Boyer, Bragg, Bray, Brooks, Brooks, Brown, Bruce, Bums, Burroughs, Carlan, Carter, Carter, Caterson-Beazley, Chamblee, Champion, Chastain, Chitwood, Colegrove, Cook, Coram, Crumpton, Cuff, Cureton, Daniel, Deal, DeGrasse, Dempsey, Dillard, Driver, Droz, Duncan, Eaton, Echols, Edwards, Edwards, Elsner, Faulkinberry,

Glenda Kathryn S. Martine Susan Wrenford Christina Judy Clare Gavin Morgan Kate Glenda Linda -'hyllis Miriam Patrick Holly Carlie Doris Jamie Dolly Phyllis Billie Maria Paige Janet Marsha Laura Sara Martha Arlene Jonathan Catherine Rosemary Susan Delena Barbara Jessica Shannon Deborah Dorothy Jocelyn Suzanne Theodora Lorraine MaryAnne Gary Pamela Joshua Jennie Ruth John Virginia Jacqueline Elizabeth

Branch Assistant Director Branch Assistant Branch Assistant Computer Operations Asst. YAIAV Library Assistant Materials Services Coordinator Information & Learning Coord. Shelver Shelver Branch Assistant Library Assistant Children's Library Assistant Administrative Assistant Library Assistant Shelver Cataloger Substitute Branch Assistant Library Clerk Computer Operations Assistant Branch Clerk Technical Services Clerk Branch Clerk TBC Specialist Branch Manager Circulation AsstlReference Asst Heritage Room Specialist Branch Assistant Manager, Oconee Libraries Branch Assistant Library Assistant Library Assistant Branch Manager Grants Writer Computer Specialist Branch Manager Library Assistant TBC Technician/Circ. Clerk Library Assistant Bookmobile Assistant Library Assistant Branch Clerk Children's Assistant Maid Reference Librarian Courier Library Assistant Library Assistant Branch Clerk Library Assistant Branch Manager Children's Librarian Library Assistant

See notes to the general purpose financial statements.

-17-

SALARIES

$

373.44

65,316.10 $

1,306.82

1,603.13

24,720.00

2,711.67

51,144.10

51,144.10

2,245.10

1,640.60

1,537.29

1,278.38

2,155.35

23,568.00

13,029.30

293.55

31,824.00

1,514.82

4,511.00

133.90

19,464.00

6,846.88

6,046.50

1,721.89

22,368.00

21,840.00

16,224.00

34,800.00

19,612,32

17,099.63

5,436.75

3,367.90

3,177.64

13,412.63

37,644.00

16,077.60

8,985.68

334.75

9,979.92

115.50

17,496.00

13,029.30

8,344.56

5,229.28

5,343.10

39,432.00

2,744.50

378.00

393.98

3,594.55

1,539.85

15,193.54

49,072.10

381.10

TRAVEL 5,141.89 63.00 2,553.99 816.69
21.50 550.14 182.25
85.00
726.63 1,261.17
10.50
78.75 11.00 60.75
317.25
155.33 835.74

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1999

SCHEDULE "4"

NAME

TITLE CATEGORY

Felt, Felton, Fike, Firestone, Fleming, Foreman, Foumier, Gaines, Gartrell, Gerson, Gordon, Graham, Green, Grego'y Gresham, Hadley, Hammond, Hardy, Hartel, Hawkes, Hayek, Hayes, Haynes, Hendrix, Hetrick, Hiott, Holmes, Holt, Jameson, Jarvis, Jewell, Jewell, Jordan, Kamal, Kelley, Kincaid, LaFlamme, Lasseter, Lazenby, LeCroy, Lessl, Lester, Lester, Lewis, Majestic, Martin, Martinez, Massey, Mavromatis, McDonald, McDougald, McNair, McSween, Milford,

Shannon Mildred Mamie Gail Alfreda Ashleigh Brannon John Bonnie Tamra Mable LaVern Theresa Pamela Katherine Janice Margaret Denton Sarah Mary Jean Monica Matthew Emma Elizabeth Gloria Kaye Louise Sherri Hannah Lillian Lucy Cynthia Amber April Prentice Percy Ritesh Robert David Katherine Megan Shannon Emma Jason Frances MaryLou Sarah Amy Hillias Jackson Adela Reba KathrineA. Cyrstal Barbara S. Ame Elizabeth Susan

Library Assistant Substitute Business Manager Access Coordinator Technical Services Asst. Library Assistant Library Assistant Library Assistant Branch Clerk Receptionist TBC Secretary Heritage Room Assistant Library Assistant Systems Administrator Library Assistant Library Assistant Library Assistant Circulation Supervisor Young Adult Librarian Branch Assistant Circulation Supervisor Substitute Bookmobile Assistant Branch Clerk Library Assistant Library Assistant Shelver Library Assistant Branch Assistant Library Assistant Shelver Custodian Supervisor Security Officer Library Assistant Library Assistant Library Assistant Children's Assistant Library Assistant Library Assistant Branch Clerk Courier Branch Clerk Branch Manager Branch Clerk Library Assistant Technical Serv/Circ. Clerk Library Assistant Library Assistant Children's Assistant Shelver Library Assistant Heritage Room Asst. Library Assistant Branch Assistant

See notes to the general purpose financial statements.

-18-

SALARIES

$

4,254.25

141.65

27,999.96 $

42,930.60

22,152.00

2,538.82

651.90

10,094.62

6,016.44

7,704.74

16,296.00

16,956.00

2,833.37

36,712.40

659.20

4,252.50

247,20

19,860.00

43,599.60

19,110.00

15,120.00

2,412.89

18,720.00

7,055.04

2,753.64

252.35

660.40

195.00

19,983.60

375.95

4,827,99

21,792,00

52.25

368.90

133.90

1,316.60

17,472.00

1,928,08

3,013.02

8,732.66

379.50

5,888.60

12,081.12

414.40

1,088,60

1,438.55

261.00

497.70

14,772.00

2,428.40

1,049.38

12,024.00

6,294.90

1,918.38

TRAVEL 261.38
1,129.85 79.50 70.00 10.40
2,757.35
30.75 205.50
123.75
46.50

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,1999

SCHEDULE "4"

NAME
Miller, Mize, Monk, Moore, Murphy, Nickels, Overstreet, Padgett, Phillips, Rash, Reeber, Rosenberger, Schnelle, Scott, Scott, Seigler, Shirley, Simpson, Siaboda, Smith, Smith, Soumpholphakdy, Standish, Stossel, Stribling, Taras, Tate, Taylor, Thomas, Thomas, Thrasher, Tumen, Vaughn, Walker, Walton, Wanager, Wardle, Ware, Watkins, Wessling, West, Whitley, Wilcher, Williams, Williams, Williams, Wright, Yates, Young,

Leigh John Jonathan Vicki Janet Robert Stacey Mary Catherine Julie Julia Patricia Micah Brannon Aurelia Melody Phillip Laura Emily Donna Kimberly Mildred Rattana Suzanne Mathew Twanna Kay William Jefferson AUdrey April Bobbie Deborah Katrina Jarrod Julie Alison Charles Martha Ruth Rodney Kenneth Sean Eyvonne Rebecca Melissa Chad Cynthia Diane Janet Rebecca Ellen

TITLE CATEGORY
Library Assistant Acquisitions Clerk Computer Operations Asst. Branch Clerk Branch Assistant Technical Services Clerk Public Relations Specialist Library StoreNolunteer Coord. Library Assistant Shelver Library Assistant Shelver Circulation Clerk Receptionist Branch Assistant Circulation Supervisor Branch Assistant Library Assistant Library Assistant Branch Clerk Circulation Supervisor Branch Clerk Library Assistant Library Assistant Technical Services Asst. Substitute Reference Librarian Library Assistant Library Assistant Janitorial Branch Manager Library Assistant Shelver Assistant Director Library Assistant Library Assistant Learning Center Clerk Circulation Clerk Library Assistant Library Assistant Substitute Library Assistant YAfAV Clerk Leaming Center Clerk Accounting Clerk Reference Librarian TBC Manager Reference Librarian Branch Assistant

Totals per Report See notes to the general purpose financial statements.

-19-

SALARIES

$

217.88

17,338.00

23,952.00 $

5,756.88

19,110.00

15,024.00

20,628.00

20,388.00

15,517.36

2,589.05

3,672.39

1,039.50

1,298.50

6,309.72

296.63

18,660.00

280.88

195.70

30.80

896.88

8,330.25

5,369.39

1,666.88

531.74

19,447.92

337.50

30,240.00

343.77

189.00

1,658.25

7,180.14

133.90

525.00

54,392.00

837.25

3,413.34

1,008.01

2,382.35

359.00

1,183.88

299.26

1,590.63

511.88

1,366.38

1,834.30

24,144.00

2,035.00

24,144.00

2,392.43

TRAVEL 477.75 200.75
1,302.25 10.00
91.08
35.00 30.00
756.00
33.00

$ 1,552,541.77 $======2=0.,.5.=22=.=39==

SECTION II FINDINGS AND QUESTIONED COSTS

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED nINE 30. 1999
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Lack of Documentation for Expenditures Amount: $7,634.05 Finding Control Number: 6292-96-01
The audit report for the year ended June 30, 1996, stated that a review ofjournal entries posted to the LSCA Title I Basic Grant Program (CFDA 84.034), 1995 Carry-Over Project revealed that $7,634.05 ofexpenditures were transferred from the General Fund to the LSCA - Title I Program without supporting documentation as required by Office of Management and Budget Circular A-87, which states in part "cost must be reasonable for proper and efficient administration of grant programs".
The expenditures to the LSCA - Title I Program were the result of management attempting to correct expenditures in excess ofbudget amounts for the General Fund by moving expenditures to the LSCA - Title I Program. The Board ofRegents ofthe University System of Georgia should review this matter to determine the allowability of the amounts charged to the LSCA - Title I Program.
AUDIT FOLLOW-UP/RESOLUTION Failure to Utilize Funds for Intended Purpose Amount: $6,968.50 Finding Control Number: 6292-96-02
The audit report for the year ended June 30, 1996, reported that expenditures for the LSCA-Title I Basic Grants Program (CFDA 84.034) 1995 Carry-Over Project included $6,968.50 for insurance which represented one half of the 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 of Federal Financial Assistance Funds in accordance with cost al10wabi1ity criteria defined in Office of Management and Budget Circular A-87, which states in part "cost must be necessary and reasonable for proper and efficient administration of the grant programs,...".
This situation occurred when insurance cost, normally supported from the General Fund was transferred to the LSCA Title 1 Program by a journal entry which did not have an adequate explanation. The Board of Regents of the University System of Georgia should review this matter to determine the allowability of this expenditure.
- 1-

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 1999
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Utilize Funds for Intended Purpose Amount: $7,068.10 Finding Control Number: 6292-97-02
The audit report for the year ended June 30, 1997, stated that the Georgia Department of Technical and Adult Education provided Assistive Technology lottery funds to the Library for specific purposes as defined 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 the audit. During fiscal year 1999, the Library did install the workstation.
This condition occurred because management failed to timely utilize equipment purchased with lottery funds for the intended purpose. The Board of Regents of the University System of Georgia should review this matter to determine if a refund is appropriate.
PRIORYEAWCURRENTYEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 6292-93-01
The audit report for the year ended June 30, 1998 noted that the management of the Athens Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
- 2-