Athens Regional Library, Athens, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

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STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS


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ATHENS REGIONAL LIBRARY
ATHENS, GEORGIA
REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000



Russell W. Hinton

State Auditor

ATHENS REGIONAL LIDRARY - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBThffiD REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMrnNTARY INFORMATION

EXHIDITS

GENERAL PURPOSE FINANCIAL STATEMrnNTS

COMBThffiDSTATEMrnNTS-OVERVffiW

A

COMBThffiD BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBThffiD STATEMrnNT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBThffiD STATEMrnNT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMrnNTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMrnNTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMrnNT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

18

2

FEDERAL

19

3

LOCAL

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I

FINANCIAL





RUSSELL W. HINTOi'i
STATE AUDITOR (404! 6562174

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DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Strect. SW.. Suite 214 Atlanta. Gcorgia ~():B4-X4()()
June 14,2001

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 ofand for the year ended June 30, 2000, as listed in the table ofcontents. 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 auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial 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 ofthe Library store inventory for resale at June 30, 2000, 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:

2000ARL-42X



* The general purpose financial statements ofthe 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 aggregate effects on the general purpose financial statements ofthis 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 ofthe Athens Regional Library as ofJune 30, 2000, 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 ofadditional 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 ofthe 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 of the Library store

inventories for resale as discussed in the third paragraph and except for the effects of the matter



discussed in the fourth 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 ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.

Respectfully submitted,


RWH:jb 2000ARL-42X

Ru sell W. Hinton State Auditor



ATHENS REGIONAL LmRARY

ATHENS REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 2000

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

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 424,681.44 $

38,414.56

188,981.80

18,192.15

115,541.61

416.54

13,080.12

$

729,204.85 $ _ _..:.7,:;;,0'0.:.;10~3~.3~7

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

$

27,393.24

$ _--=27.:.J.,3~9~3.=:24~

$
$ 701,811.61
$ 701,811.61 $

13,080.12
57,023.25
7:....:0~,1:..::0:.:::3.::::.3~7

$

729,204.85 $ _ _~7..:.i0,103,37

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

$

331.83

ACCOUNT GROUP GENERAL
LONGTERM DEBT

TOTALS (Memorandum OnIX/-)_ _ JUNE 30, 2000 JUNE 30, 1999

$

463,427.83 $

378,261.94

207,173.95

197,664.80

115,958.15

20,632.97

13,080.12

18,187.84

______ $

----:..13::.:5::.t.:,6:..:4~0:..:..1.::..0

135,640.10

101,791.25

$

331.83 $

135,640.10 $

935,280.15 $ _~7..;,16~,_53_8~.8~0

$

27,393.24 $

32,502.06

$

---:1~35~,64~0::....:.1..:::..0

135,640.10

101,791.25

$

135,640.10 $

163,033.34 $ _ _1:.;:;34..:.J,:=;29:.;3:.:.;:.3;.:.1



$

331.83

$

13,080.12 $

18,187.84

331.83

17,419.35

0.00

758,834.86

546,638.30

$

...:3:;:3;...:.1:.: :.8.: :. 3

$ . 772,246.81 $ _--=5:.:,82::1.,2:.4:.;:;5.:.,:.4.=...9

$

331.83 $

135,640.10 $

935,280.15 $

7..1.6.,.53_8..8...0.

-3-

ATHENS REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000

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
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

$ 784,465.08

6,000.00 $ 50,775.00

1,702,389.27

395,760.77

17,835.59

$ 2,888,615.12 $ 68,610.59

$ 1,586,706.60 $ 50,775.00

234,213.76

521,545.39

6,573.00

130,900.34

214,315.06

$ 2,687,681.15 $ 57,348.00

$ 200,933.97 $ 11,262.59

500,877.64

63,948.50

-5,107.72

$ 701,811.61 $ 70,103.37

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

. EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS
(Memorandum Only)~_ _
YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$

$ _ _--=5:...:.4.:.::.3~7

$

54.37 $

784,465.08 $ 56,775.00 1,702,389.27 413,650.73
2,957,280.08 $

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

$
$ 17,141.89 $ 17,141.89 $ $ -17,087.52 $
17,419.35

1,637,481.60 $ 1,756,328.65

234,213.76

231,471.55

528,118.39

537,161.43

130,900.34

144,295.96

214,315.06

214,694.63

17,141.89 _ _--..:..7,939.65

2,762,171.04 $ 2,891,891.87

195,109.04 $

-158,833.06

582,245.49

722,890.71

-5,107.72

18,187.84

$

331.83 $

772,246.81 $ _ _.;;;,58;;;,:2.,2;;,;4.;;;,5,;,;,;,49;:;,.

-5-

ATHENS REGIQNAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALAt:JC~
BUDGET AND ACTUAL GEt\II~RAL AND SPECIAL REVENUE FUNDS
yEAR ENDED JUNE 30, 2000

EXHIBIT C

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operation Information Technology
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 878,785.23 $
1,580,606.75 173,947.00
$ 2,633,338.98 $

784,465.08 6,000.00
1,702,389.27 395,760.77

$ 1,927,364.44 $ 203,848.94 281,239.77 158,600.00 136,162.83

1,586,706.60 234,213.76 521,545.39 130,900.34 214,315.06

$ 2,707,215.98 $ 2,687,681.15

$

-73,877.00 $ _---:2::::.00~,9l:::3~3.:.:::.9~7

OTHE;R FINANCING SQURCES (USE;Sl
Other Sounces Other Uses
Total Other Financing Sounces (Uses)

$ 114,877.00 -41,000.00
$ _ _7~3:..::,8~77:..::.0~0~

Excess of Revenues and Other Financing Sounces
over (under) Expenditures and Other Financing Uses $
FUND BALANCE JULY 1, 1999
Change in Inventory

0.00 $ 0.00

200,933.97 500,877.64

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

50,775.00

$ _ _4~5!.z.,;9'~0~0..::;:OO=.

17,835.59

$

45,900.00 $ _ _....:6::::8:J.:,6::..:1.:::0~.5~9

$

$

45,000.00

50,775.00 6,573.00

$

45,000.00 $ _ _..:::.57~,~34~8~.0~0

$

900.00 $ _ _...:.1~,1.:::26~2~.5:.:::..9

$ _ _......::-9~0~0.~00=$ _ _......::-9~00~.~00~

$

0.00 $

0.00

11,262.59 63,948.50 5,107.72

FUND BALANCE; JU~E; 30, 2000

$


0.00 $ _.....7...0.1,811.61

$

0.00 $ _ _7..0.1103.37

The notes to the general purpose financial statements are an integral part of this statement. -6-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Athens Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State ofGeorgia. With the exception ofthe 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 ofthe 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 ofGeorgia 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 ofoversight responsibility for the Library's operations. TheAthens 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 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 ofaccounts. 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 ofpurchase. 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 ofassets acquired by governmental fund types.

-7-

ATHENS REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS'

JUNE 30, 2000

"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general purpose financial statements account for all State, Federal, Local 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:
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 ofspecial revenue fund consists ofproceeds 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 - A fmancial reporting device used to account for compensated absences.
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 ofthese 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 fmanced 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.

- 8-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Athens Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates 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 ofthis 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 of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at
-9-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
purchase greater than one year and equity investments are reported at fair value. The Official Code ofGeorgia 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 ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: .
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(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 of goods for resale are valued at cost. Inventories of goods for resale are recorded as expenditures at the time ofpurchase. 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 ofnet current assets.

- 10-
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ATHENS REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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.
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 ofoperations in confonnity 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 ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent 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 ofoperating 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,
- 11 -

ATHENS REGIONAL LillRARY

EXHillIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS

(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 ofdevelopment authorities created by the laws ofthe State of Georgia, and

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

CATEGORIZAnON OF DEPOSITS At June 30, 2000, the bank balances were $935,845.34. 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, 2000, as follows:

Risk Category.

Bank Balance

1

$ 297,353.11

2

638,492.23

3

0.00

Total

$ 935,,84~.34

- 12-

ATHENS REGIONAL LmRARY

EXHmIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS
At June 30, 2000, the fair value of the Library's total investments was $4,224.00 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 ofloss 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 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, 2000, were as follows:

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: GENERAL LONG-TERM DEBT


Compensated Absences

Balance July 1, 1999

$ 101,791.25

Additions Annual Leave Earned and Utilized (Net)

33,848.85

Balance June 30, 2000

$ 135.640.1 0

Note 5: ACCUMULATED EMPLOYEES' LEAVE

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 ofemployment. See Note 1 Compensated Absences

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 fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 14-

ATHENS REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: RETIREMENT PLANS
Fiscal Year 2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution

$ 160,881.64 $ 157,420.62 $ 144,981.07

\
- 15 -

ATHENS REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND
JUNE 30, 2000

EXHIBIT "E"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventory
Total Assets

FEDERAL PROGRAM

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

38,414.56 $

38,414.56 $

51,304.19

18,192.15

18,192.15

17,364.93

416.54

416.54

416.54

13,080.12

13,080.12

18,187.84

$

0.00 $

70,103.37 $

70,103.37 $ ===8;;;,;7.,2;,;7,,;;;3=.5=0

LIABILITIES AND FUND EQUITY



LIABILITIES

Accounts Payable

$ _ _..;2:::3"",3:::2:::;5:,:.0.::..0

FUND EQUITY

Fund Balances Reserved For Inventory for Resale Unreserved Undesignated
Total Fund Equity

$

13,080.12 $

13,080.12 $

18,187.84

$

. . ::0:.:;.0.::. 0

57,023.25

57,023.25

45,760.66

$

0.00 $

70,103.37 $

70,1 03.37 $ _ _-'6::,::3"",94::....:..:.8:,:.5.::..0

Total Liabilities and Fund Equity $

0.00 $

70,103.37 $ _ _..7,.;;,0,103.37 $ _ _..;;8.7.,273.50

See notes to the general purpose financial statements.

-16-

ATHENS REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "F"

FEDERAL PROGRAM

OTHER . PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

REVENUES

Federal Funds Other Funds

$

50,775.00

$

_ _ _ _ _ $ _--:1..:..;7'L::;83::.:5;.:,:.5;.:,.9

50,775.00 17,835.59 $ _ _---.:.1.:::,,9,::.:46~2::..:.1~5

Total Revenues

$

50,775.00 $

17,835.59 $

68,61 0.59 $ _ _--:.1.:::..<9..:.:46:::2~.1..::..5

EXPENDITURES

Current Public Services Support Services

$

50,775.00

$

_ _ _ _ _ $ _ _.:;6,,,57:..=3;.:.:.0;.:,.0

50,775.00 6,573.00 $ _ _--==2.:::,,9,.::,:89::,.:.7..:.:..7..::..8

Total Expenditures

$

50,775.00 $

6,573.00 $

57,348.00 $ _ _--==2.:::..<9,.:::.:89::,.:.7.:.:..7..::.8

Excess of Revenues over (under) Expenditures $

0.00 $

11,262.59 $

11,262,59 $

-10,435.63

FUND BALANCE JULY 1

0.00

63.948.50

63.948.50

56.196,29

Change in Inventory

-5,107.72

-5,107.72

18,187.84

FUND BALANCE JUNE 30

$

0.00 $

70,103.37 $

70,103.37 $ ....._-..::6;;,;;:3,948.50

see notes to the general purpose financial statements.

-17-

ATHENS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 2000
AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Talking Books Center Maintenance and Operation

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

481,339.08

8,400.00

103,320.00

94,686.00

96,720.00

$

784,465.08


See notes to the general purpose financial statements. 18

ATHENS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING
GRANT Museum and Library Services, Institute of Through Georgia Department of Technical 'and Adult Education Library Services and Technology Act State Library Program
National Endowment for the Humanities Direct Let's Talk About It
. National Historical Publications and Records Commission Through Georgia Historical Records Advisory Board Historical Repository Grant

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

$

49,775.00 $

1,000.00

$

6~,0:::,:0:.:;:0,:,O:::.~O

TOTAL
49,775.00 1,000.00 6,000.00

$

6,000.00 $

50,775.00 $ 56,775.00

See notes to the general purpose financial statements.

-19-

ATHENS REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30, 2000
LOCAL SOURCES Boards of Education Franklin County Madison County Oconee County Oglethorpe County City Governments Bogart Canon Carnesville Lavonia Lexington Royston Franklin Springs Watkinsville Winterville County Governments Boards of Commissioners Clarke Franklin Madison Oconee Oglethorpe

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

23,316.75

69,400.00

25,000.00

15,000.00

3,500.00 600.00
1,500.00 6,200.00
500.00 12,504.00
1,200.00 7,500.00 6,000.00

1,225,948.48 21,500.04 51,975.00 192,000.00 38,745.00

$

1,702,389.27

See notes to the general purpose financial statements. - 20-

NAME
Alexander, Glenda Ames, Jennifer A. Ames, Kathryn S. Andrews, Susan Archibald, Wrenford Arington, Christina Atwood, Judy Auwarter, Clare Avery, Paul M. Baggott, Kate Bagwell, Leigh Alice Baird, Brenan Bales, Brenda Barbagelott, Daniel Beard, Chelsea Bennewitz, Katharine Best, Glenda Bettini, Alice E. Blake, Phyllis Boots, Miriam Bowden, Holly Boyer, Carlie Bragg, Doris Brewer, Kirsten Lee Brooks, Dolly Brooks, Phyllis Brown, Billie Bruce, Maria Bums, Paige Burroughs, Janet Bush, Evan Michael Carlan, Marsha Carter, Benjamin G. Carter, Laura Carter, Sara Chamblee, Arlene Chastain, Catherine Chitwood, Rosemary Colegrove, Susan Collins, Celita Dian Colquitt, Jason Russ Coombs, Christopher Cook, Delena Cuff, Shannon Cureton, Deborah Daniel, Dorothy Deal, Jocelyn Deal, Marcus Gregory DeGrasse, Suzanne Dempsey, Theodora Detter, Melissa

ATHENS REGIONAL LIBRARY SCHEDU~E OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 2000

SCHEDULE "4"

TITLE CATEGORY
Branch Assistant Library Clerk Director Branch Assistant Computer Operations Asst. YAJAV Library Assistant Materials S. ervices Coordinator Information & Leaming Coord. Library Clerk Branch Assistant Library Clerk Library Clerk Library Clerk Library Clerk Library Assistant Shelver Library Assistant Library Assistant Administrative Assistant Library Assistant Cataloger Substitute Branch Assistant Library Clerk Computer Operations Assistant Branch Clerk Technical Services Clerk Branch Clerk TBC Specialist Branch Manager Branch Clerk Circulation AsstlReference Asst Library Assistant Heritage Room Specialist Branch Assistant Branch Assistant Library Assistant Branch Manager Grants Writer Branch Assistant Library Clerk Library Clerk Computer Specialist TBC Technician/Circ. Clerk Library Assistant Bookmobile Assistant Library Assistant Branch Assistant Branch Clerk Children's Assistant Branch Clerk
- 21 -

SALARIES

TRAVEL

$

6,192.19

72.10

67,360.34 $

3,850.00

25,728.00

761.88

53,326.84

53,326.84

865.21

395.91

1,896.49

1,161.00

1,818.40

684.95

4,612.14

45.93

4,499.37

909.56

24,816.00

1,246.00

33,324.00

639.44

5,703.75

1,792.00

1,916.84

6,326.50

2,134.00

20.70

23,364.00

22,672.08

15,149.99

22,954.00

2,903.27

36,300.00

21,694.44

6,278.98

38.50

13,728.00

38,640.00

13,551.29

483.00

522.00

2,202.48

14,533.10

1,208.25

18,504.00

16,068.00

15,508.43

12,540.87

5,613.00

68.25

6,127.28 61.25
786.75 1,320.30
145.65 38.98 41.50
1,321.73 291.25 363.69 255.60
1,250.41 63.75 84.00 95.75
342.99

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

NAME
Dingler, Nancy F. Downs, William W. Driver, Mary Anne Droz, Gary Eaton, Joshua Edwards, John Edwards, Virginia Elsner, Jacqueline Farnsworth, Neil A. Faulkinberry, Elizabeth Faust, Twanna Stribling Felt, Shannon Felton, Mildred Ferrelle, Stacey O. Finlayson, Cynthia D. Firestone, Gail Fleming, Alfreda Frey, Valerie J. Gerson, Tamra Glenn, Dorothy G. Goodwin, Scott Allen Gordon, Mable LaVern Graham, Theresa Gregory, Katherine Gresham, Janice Hadley, Margaret Hammond, Denton Hanneman, Winifred T. Hardy, Sarah Harmon, Ken Hartel, Mary Jean Hawkes, Monica Hayek, Matthew W. Hayes, Elizabeth M. Haynes, Gloria Kaye Hendrix, Louise Hiott, Hannah Hong, Esther Hooks, Kevin Horton, Amanda Beth Houck, Maria T. Hurd, Travis Joy
Jacobs, Jennifer L.
Jameson, Cynthia Jarvis, Amber Jewell, April Jewell, Prentice Kelley, Robert Kelly, Karly Elizabeth Kincaid, David laFlamme, Katherine

TITLE CATEGORY
Library Assistant Library Clerk Reference Librarian Courier Library Assistant Library Assistant Branch Manager Children's Librarian Library Assistant Library Assistant Branch Assistant Library Assistant Substitute Branch Assistant Library Assistant Access Coordinator Technical Services Asst. Library Assistant Receptionist Branch Clerk Library Clerk TBC Secretary Heritage Room Assistant Systems Administrator Library Assistant Library Assistant Library Assistant Shelver Circulation Supervisor Substitute Young Adult Librarian Branch Assistant Circulation Supervisor Substitute Bookmobile Assistant Branch Clerk Library Assistant Library Assistant Library Assistant Branch Clerk Library Assistant Shelver Library Assistant Branch Assistant Library Assistant Shlever Custodian Supervisor Library Assistant Substitute Library Assistant Children's Assistant
- 22-

SALARIES

$

4,477.00

2,106.57

40,440.00 $

3,555.00

4,022.15

41.20

742.70

52,726.84

2,816.73

1,249.50

20,448.00

5,422.50

211.15

20,284.00

2,264.40

46,082.54

23,148.00

2,523.50

6,555.52

837.00

3,260.26

17,292.00

17,964.00

39,262.80

4,049.07

2,472.76

731.30

84.80

20,868.00

216.00

45,482.54

19,115.04

16,200.00

1,293.33

19,716.00

700.00

288.40

1,560.45

1,842.50

486.00

5,322.36

983.65

2,294.25

20,592.00

327.03

2,079.00

22,800.00

41.20

231.00

1,555.32

18,171.00

TRAVEL 287.50
960.32 26.00
177.75 1,982.53
39.00 337.38
100.00
898.33 517.47
5.00
182.75

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

NAME
LeCroy, Emma Lee, Cory Lester, Frances Lester, Mary Lou Lowery, Margaret H. Lyle, Janet L. Majestic, Amy Mannozzi, Joey C. Martin, Sarah Martinez, Sarah Massey, Reba Mathews, Elizabeth L.
Mavromatis, Kathrine A.
McDougald, Richie McNair, Ame Milford, Sarah Mize, John Monk, Jonathan Moore, Vicki Murphy, Janet Navarre, Heatherleig Nickels, Robert Noble, Carole B. Padgett, Mary Catherine Parrott, Rebecca J. Phillips, Julie Reeber, Patricia Richardson, Myra E. Rogers, Leslie Anne Rotchford, Melanie A. Schmidt, Rachel S. Scott, Aurelia Scott, Melody Seigler, Phillip Shipley, Tracy Shirley, Kimberly F. Simonds, Mamie F. Simpson, Emily
Sims, Annette E.
Siaboda, Donna Smith, Mildred
Soumpholphakdy, R.
Standish, Suzanne Strickland, Helen D. Taras, Kay Tate, William Jefferson Thomas, Bobbie Thomas, Mary Joyce Thrasher, Deborah Tumen, Katrina Trotter, Barbara

TITLE CATEGORY
Branch Clerk Courier Branch Clerk Branch Manager Branch Clerk Library Assistant Library Assistant Library Assistant Library Clerk Library Assistant Library Assistant Library Assistant Children's Assistant Library Assistant Heritage Room Asst. Branch Assistant Acquisitions Clerk Computer Operations Asst. Branch Clerk Branch Assistant Library Assistant Technical Services Clerk Branch Clerk Library StoreNolunteer Coord. Library Assistant Library Assistant Library Assistant Library Assistant Library Clerk Library Clerk Circulation Clerk Receptionist Branch Assistant Circulation Supervisor Substitute Branch Assistant Business Manager Library Clerk Library Clerk Library Assistant Circulation Supervisor Branch Clerk Library Assistant Library Clerk Substitute Reference Librarian Janitorial Library Clerk Branch Manager Library Assistant Substitute
- 23-

SALARIES

$

13,711.44 $

122.32

215.60

11,934.00

641.25

2,492.00

3,692.39

2,969.25

493.50

1,290.00

63.00

3,034.38

184.86

1,012.50

13,673.40

2,537.24

18,816.00

24,960.00

6,081.61

19,885.08

4,487.72

16,032.00

789.75

15,558.45

2,417.63

9,968.00

9,800.42

12,354.06

1,270.50

984.38

3,611.25

6,235.35

105.00

19,668.00

30.90

3,123.25

29,462.00

415.86

357.50

2,219.00

8,505.20

1,899.98

3,275.40

291.50

66.00

31,248.00

5,148.37

1,033.20

33,073.39

2,683.15

72.11

TRAVEL 20.50
729.75 200.00
36.66 4.00
162.75 6.55

NAME
Walker, Julie Walsh, Geoffrey G. Walton, Alison Wanager, Charles Weaver, Lauren A. West, Eyvonne Williams, Cynthia Williams, Diane Williams, Frances P. Williams, Jennifer S. Wright, Janet Yates, Rebecca
Totals per Report

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

TITLE CATEGORY
Assistant Director Substitute Library Assistant Library Assistant Library Assistant Substitute Accounting Clerk Reference Librarian Library Assistant Library Clerk TBC Manager Reference Librarian

SALARIES
$ 57,940.86 $ 108.00 246.50
18,720.00 2,718.75
131.25 613.70 24,900.00 2,862.07 437.76 1,165.00 25,644.00

TRAVEL 1,097.45 7.50
273.50

$ 1,626,673.70 $ =...;2;0,;;0.,6;.;,43;;;,0.5;;;,;7=

See notes to the general purpose financial statements. - 24-


SECTIONll FINDINGS AND QUESTIONED COSTS

ATHENS REGIONAL LffiRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

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 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.
The expenditures to the LSCA - Title I Program were the result ofmanagement attempting to correct expenditures in excess ofbudget amounts for the General Fund by moving expenditures to the LSCA - Title I Program. The Board of Regents of the 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 Utilized 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 of program 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 allowability 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 ofRegents ofthe University System ofGeorgia 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, 2000
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 ofTechnical 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 ofthe 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.
PRIOR YEARJCURRENT YEAR
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, 1999 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 ofthe 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 ofa 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-

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Finding Control Number: 6292-00-01
For the year under review, it was noted that the Athens Regional Library did not provide for adequate separation of employee duties in the performance ofthe following accounting functions and related procedures relative to the Library's store fund:
Cash and Cash Equivalents The bank reconciliation and check writing functions were not separated from the record keeping function.
Inventories The receiving function was not separated from the function ofmaintenance ofinventory records.

Revenue/Accounts Receivable The depositing of receipts function was not separated from the record keeping function.
Separation ofduties involving key accounting functions is the basis for achieving an adequate system ofinternal control. These deficiencies were a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine ifemployees' duties can be reassigned to achieve a higher degree of internal control with existing staff.
INVENTORIES Inadequate Controls over Store Inventories for Resale Finding Control Number: 6292-00-02
For the year under review, it was noted that even though the Library stated that a physical count of inventory was made, there was no complete documentation available to substantiate such a count. As a result of this deficiency, we were unable to satisfy ourselves as to the accuracy of the resale inventory balance at June 30, 2000.
This problem occurred because management failed to ensure that controls were in place to provide proper documentation of physical inventory counts. Personnel at the Library should document counts when the annual physical inventory is taken.
-3-

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
CURRENT YEAR GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: 6292-00-03 In the year under review, the Library lacked sufficient accounting procedures to provide for adequate internal control over the general ledger close-out and reconciliation process. Deficiencies found are summarized as follows:
Month-end and year-end close-outs are not occurring timely. Print outs of month-end and year-end data are not being prepared timely. Bank reconciliations are not being prepared or reviewed timely. Journal entries are not being prepared or posted timely. These deficiencies were a result of management's failure to adequately manage the accounting procedures of the Library. The Board should provide adequate internal control over the general ledger procedures to ensure that proper monthly and yearly reconciliations occur in a timely manner.
-4-