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'' ,{ ,,, .''., ,.. ..... ., 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 GENERAL AND SPECIAL REVENUE FUNDS 5 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 7 ADDITIONAL FlNANCIAL lNFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 16 F COMBlNlNG STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 17 SCHEDULES SCHEDULE OF REVENUE I STATE 18 2 FEDERAL 19 3 LOCAL 20 4 SCHEDULE OF SALARJES AND TRAVEL 21 SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL RUSSEi.i. W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wa~hington Street. S. W Suite 214 Atlanta. Georgia :mJ.14-8400 August 7, 2003 Honorable Sonny Perdue, 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, 2002, as listed in the table ofcontents. These generalpurpose financial statements are the responsibility of the Athens Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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. 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 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. 2002ARL-42 The aggregate effect on the general-purpose financial statements ofthis variance or omission has not been determined, but is believed to be material. In our opinion, except for the effects on the general-purpose financial statements of the matter referred to in the third paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Athens Regional Library as of June 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. 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 I through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Athens Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects of the matter discussed in the third paragraph, such information is fairly stated, 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, ~~4:k. 11 W. Hinton State Auditor RWH:gp 2002ARL-42 ATHENS REGIONAL LIBRARY ATHENS REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2002 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventory Amount to be Provided in Future Years For Payment of Compensated Absences GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND $ 364,079.54 $ 34,384.66 206,192.79 19,977.28 20,383 37 10,362.35 30,064 02 Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Deferred Revenue Compensated Absences Total Liabilities FUND EQUITY Fund Balances Reserved For Inventory for Resale Unreserved Undes1gnated Total Fund Equity Total Liabilities and Fund Equity $ 590,655.70 $ ====94='=78=8=3=1= $ 30,064 02 $ _ _...;5..;.9..a0,..6.5..;...5;.....7.....;0_ 64,724.29 $ 590,655.70 $ _ _ _ _94_,,_78_8_.3_1_ $ 590,655.70 $ 94,788.31 ========== The notes to the general-purpose financial statements are an integral part of this statement -2 - EXHIBIT "A" ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS {Memorandum Onl~} JUNE 30, 2002 JUNE 30, 2001 $ 398,464 20 $ 359,709.41 226,170.07 218,53311 30,745 72 50,348.78 30,064.02 12,707 68 $ 144,198 55 144,198.55 131,936 04 $ 144,198 55 $ 829,642 56 $ ===77=3,2=35=02= $ 14,796.10 $ 144,198.55 $ _ _1_44~,1_98_._55_ 131,93604 $ 144,198 55 $ 144,198 55 $ _ _1_46~,_73_2_14_ $ 30,064 02 $ 12,707 68 655,379 99 613,795 20 $ 685,444.01 $ _ ___;;6.c;.26.;;..:,.c,.50;;..;;2;.;.;.8:;.;;8_ $ 144,198.55 $ 829,642.56 $ ====77=3=,2=35=0=2= -3- ATHENS REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2002 EXHIBIT"B" REVENUES State Funds Federal Funds Local Funds Other Funds Total Revenues EXPENDITURES Current Public Services Technical Services Support Services Maintenance and Operations Information Technology Fac1hhes Acqu1s1t1on and Construction Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 Change in Inventory in Period GENERAL FUND SPECIAL REVENUE FUND TOTALS (Memorandum Onl~) YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 926,038 70 $ s 136,166 32 1,924,059 36 210,815 74 9,546.52 $ 3,060,913 80 $ 145,712 84 $ 926,038.70 $ 136,166 32 1,924,059 36 220,362 26 3,206,626 64 $ 907,002 39 37,877 67 1,763,456 25 313,844 85 3,022,181 16 $ 1,816,333.96 $ 228,832 37 618,996 78 141,917 09 200,976 62 14,111 58 s 98,048 81 17,906 63 27,918 01 s s 3,021,168 40 s 143,873 45 s 39,745 40 $ 1,839 39 $ 550,910 30 75,592 58 17,356 34 s 1,914,382 77 228,832 37 636,903 41 141,917 09 228,894 63 14111 58 s 3,165,041 85 41,584 79 $ 626,502 88 17,356 34 1,811,790 73 247,658 61 651,619 10 122,449 73 334,034 48 3,167,552 65 -145,371 49 772,246 81 -372 44 FUND BALANCE JUNE 30 $ 590,655 70 $ 94,788 31 $ 685 444 01 $ ===62=6=,5=0=2=88== The notes to the general purpose finanaal statements are an integral part of this statement -4 - ATHENS REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2002 EXHIBIT"C" GENERAL FUND BUDGET ACTUAL REVENUES State Funds Federal Funds Local Funds Other Funds Total Revenues EXPENDITURES $ 911,256 99 $ 926,038 70 1,815,971 00 266,660 00 1,924,059 36 210,815 74 $ 2,993,887 99 $ 3,060,913 80 Current Public Services Technical Services Support Services Maintenance and Operations Information Technology Fac1ht1es Acqu1s1t1on and Construction Total Expenditures Excess of Revenues over (under) Expenditures $ 1,763,224 94 $ 1,816,333 96 223,219 86 228,832 37 632,844 55 618,996 78 153,100 00 141,917 09 214,979 64 200,976 62 1411158 $ 2,987,368 99 $ 3,021,16840 $ 6 519 00 $ 39 745 40 OTHER FINANCING SOURCES {USES) Other Sources Other Uses Total Other Financmg Sources (Uses) $ 83,275 00 -83,575 00 $ -300 00 Excess of Revenues and Other F1nancmg Sources over (under) Expenditures and Other Fmancmg Uses $ FUND BALANCE JULY 1 2001 Change 1n Inventory in Period 6,219 00 $ 000 39,74540 550,910 30 SPECIAL REVENUE FUND BUDGET ACTUAL $ 25,000 00 $ 136,166 32 39,000 00 9,546 52 $ 64 000 00 $ 145,712 84 $ 24,340 00 $ 36,160 00 98,048 81 17,906 63 27,918 01 $ 60,500 00 $ 143 873 45 $ 3 500 00 $ 183939 $ -3,500 00 $ -3,500 00 $ 000 $ 1,839 39 000 75,592 58 17,356 34 FUND BALANCE JUNE 30 2002 $ 6 219 00 $ ===5=9=0-=,6=5=5=70;;,, $ 0 00 $ ==9=4:!:7=8=8=31== 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, 2002 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 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 Clarke County Library Board, 3 members appointed by Franklin County Library Board, 3 members appointed by Madison County Library Board, 3 members appointed by Oconee County Library Board and 3 members appointed by Oglethorpe County Library Board. The Library Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion ofeach 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 governrnental 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 ofassets acquired by governmental fund types. -7- ATHENS REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I: 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 that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists ofproceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial 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 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 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. The Library considers receivables collected within sixty days after year-end to be -8- ATHENS REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Expenditures are generally recognized when the related fund liability is incurred. BUDGET The Athens Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles. The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the 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 cash on hand and demand deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings 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 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 -9 - ATHENS REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 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 of goods for resale are valued at cost and 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. 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 - 10 - ATHENS REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 of operations in conformity with generally accepted accounting principles. nor is such data comparable to a consolidation. lnterfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee 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. If a depository elects the pooled method (OCGA 45-8-13. l) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. 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 any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, - 11 - ATHENS REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 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 of the 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. CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $849,720.12. The amounts of the total bank balances are classified into three categories of credit risk: Category I - 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, 2002, as follows: Risk Category Bank Balance 1 $ 308,616.93 2 7,949.87 3 533,153.32 Total $ 842!720, 12 - 12 - ATHENS REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2: DEPOSITS AND INVESTMENTS CATEGORJZATION OF INVESTMENTS At June 30, 2002, the fair value of the Library's total investments was $3,585.68 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; acts of God; 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 acts of God. 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 Amount All Employees $ 500,000.00 Note 4: GENERAL LONG-TERM DEBT The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: - 13 - --------------------- ATHENS REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 4: GENERAL LONG-TERM DEBT Compensated Absences Balance July 1, 2001 $ 131,936.04 Additions Annual Leave Earned and Utilized (Net) 12,262.51 Balance June 30, 2002 $ 144.198.55 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 of pay upon termination of employment. 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 financial 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 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: - 14 - ATHENS REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 6: RETIREMENT PLANS Fiscal Year 2002 2001 2000 Percentage Contributed 100% 100% 100% Required Contribution $ 151,893.72 $ 173,134.34 $ 160,881.64 - 15 - ATHENS REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2002 EXHIBIT "E" ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventory Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Deferred Revenue Total Llab1hlles FUND EQUITY Fund Balances Reserved For Inventory for Resale Unreserved Undes19nated Total Fund Equity Total L1ab1hlles and Fund Equity FEDERAL PROGRAM OTHER PROGRAMS TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 44,747 01 $ 44,747 01 $ 43,591 82 19,977.28 19,977 28 19,293.08 $ 10,362 35 10,362 35 35,473 77 30,064 02 30,064 02 12,707 68 $ 10,362 35 $ 94,788 31 $ 105,150 66 $==1=1=1=,0=66==35== s 10,362 35 $ 10,362 35 $ 10,362 35 $ 20,677 67 14 796 10 $ 10,362 35 $ 35 473.77 $ 30,064 02 $ 30,064 02 $ 12,707 68 $ 0 00 64,724 29 64,724 29 62 884 90 $ 0 00 $ 94,788 31 $ 94,788.31 $ 75,592 58 $ 10,362 35 $ 94,788 31 $ 105,150 66 $==1=1=1=,06=6==3=5= 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, 2002 EXHIBIT "F" FEDERAL PROGRAM OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 REVENUES Federal Funds Other Funds Total Revenues EXPENDITURES $ 136,166 32 $ $ 136,166 32 $ $ 9,546 52 9,546 52 $ 136,166 32 $ 9,546 52 145,712 84 $ 28,877 67 15 100 31 43,977 98 Current Public Services Support Services lnfonnat1on Technology $ 98,048 81 10,199 50 $ 27,918 01 $ 7,707 13 98,048 81 $ 17,906 63 27,918 01 21,322 93 16,793 40 Total Expenditures Excess of Revenues over (under) Expenditures $ 136,166 32 $ $ 000 $ 7,707 13 $ 1,839 39 $ 143,873 45 $ 1,839 39 $ 38,116 33 5,861 65 FUND BALANCE JULY 1 0 00 75,592 58 75,592 58 70,103 37 Change m Inventory 17,356 34 17,356 34 -372 44 FUND BALANCE JUNE 30 $ 0 00 $ 94 788 31 $ 94,788 31 $ =====7=5.=5=92=5=8= See notes to the general-purpose financial statements - 17 - ATHENS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2002 AGENCY/FUNDING GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Matenals Talkmg Books Center Maintenance and Operations Repairs and Renovations Grant CONTRACT Community Affairs, Georgia Department of Local Assistance Grant SCHEDULE "1" GOVERNMENTAL FUND TYPE GENERAL FUND $ 557,227 34 11,600.00 105,402.66 139,958.00 97,069.00 4,781.70 10,000 00 $ ====9=26=,0=3=8=7.=0 See notes to the general-purpose financial statements. - 18 - ATHENS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 2002 AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program SCHEDULE "2" GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND $ ====13=6=,1=6=6=.3=2 See notes to the general-purpose financial statements. - 19 - ATHENS REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2002 LOCAL SOURCES Boards of Education Franklin County Oconee County Oglethorpe County City Governments Arnoldsville Bogart Canon Carnesville Crawford Lavonia Lexington Maxey Royston Franklin Springs Watkinsville Winterville County Governments Boards of Comm1ss1oners Clarke Franklin Madison Oconee Oglethorpe SCHEDULE "3" GOVERNMENTAL FUND TYPE GENERAL FUND $ 24,000 00 31,500 00 15,000.00 100.00 6,000 00 1,200.00 1,500.00 500.00 6,400.00 500.00 100.00 15,500.00 1,500 00 8,000 00 11,000 00 1,389,107.10 22,000.02 142,038 48 200,112.74 48,001 02 $ ===1='=,9=24::l,,0=5=9=3=6 See notes to the general-purpose financial statements - 20 - ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2002 SCHEDULE "4" NAME Adams, Laureen A. Alexander, Frances C. Alexander, Gayle B Alke, Rosalyn Perkins Ames, Kathryn S. Anderson, Raymond V. II Archibald, Wrenford N Atwood, Judy J Auwater, Clare Baird, Brenan Bak, Todd Edward Ball, Erin A Basinger, James D. Basinger, Philip E Beard, Chelsea Berger, James I Bernstein, Elizabeth D. Best, Glenda S Bettini, Alice E. Blake, Phyllis M Blumenthal, Caroline A. Bowden, Holly L. Boyer, Carlie M. Bragg, Dons Mane Bragg, Jamie M. Brooks, Phyllis M. Burns, Paige K. Burroughs, Janet A Bush, Evan Michael Bush, Tyca Marie Carlan, Marsha D Carter, Beniamin G Carter, Laura W. Carter, Sara S Chamblee, Arlene Denise Chitwood, Rosemary D. Cochran, H Ernestine Colegrove, Susan C Craig, Jeremy Stewart Cureton, Deborah A. Daniel, Dorothy D. Deal, Jocelyn H. Deal, Marcus Gregory DeGrasse, Suzanne M. Dempsey, Theodora M. Dietz, Christine H Dingler, Nancy F. TITLE CATEGORY Reference Assistant Library Clerk Library Assistant Library Clerk Director Security Computer Operations Asst. Materials Services Coordinator Information & Leaming Coord Library Clerk Computer Clerk Children's Assistant Branch Assistant Security Library Assistant Computer Operations Asst Branch Assistant Library Assistant library Assistant Administrative Assistant Reference Assistant Technology Librarian Library Clerk Branch Assistant Library Assistant Branch Clerk TBC Specialist Branch Manager Branch Clerk Library Assistant Branch Manager Library Assistant Heritage Room Specialist Branch Assistant Library Assistant Branch Manager Library Assistant Grants Writer Library Assistant Branch Clerk Bookmobile Assistant Library Assistant Computer Operations Asst. Branch Clerk Children's Assistant Branch Assistant Library Assistant - 21 - SALARIES TRAVEL $ 11,065 60 321.76 6,832 69 $ 6,269.41 81,270 86 4,743 00 30,000 00 63,498 86 62,879 86 4,860.00 2,327 50 562.50 121 90 3,681.00 288 30 1,74167 107.20 2,371 01 13,12215 27,357.24 2,185.00 36,400.08 80599 7,261 12 5,701 82 8,038 69 24,765 96 23,872 08 20,000 04 698.75 4,522.20 18,601.25 40,352 04 23,121.66 69300 14,062.50 417.81 30,505 53 204.00 106.25 20,280.00 3,742 50 28,000.08 24,331.02 6,783.14 1,326.00 4,443 00 44 24 8,881 72 977 06 1,914.76 10710 3640 98749 2900 152 32 215.60 67.20 ----------------------------~- ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 2002 SCHEDULE "4" NAME Dowson, Candice A Driver, Mary Anne Droz, Gary C. Elsner, Daniel S Elsner, Jacqueline C. Evenngham, Jessica L. Faust, Twanna B. Felton, Mildred Ferrelle, Stacy 0. Finlayson, Cynthia D. Firestone, Gail C. Fleming, Alfreda W Floyd, Robin D. Ford, Tracey Delois Gerson, Tamra Fned Gibson, Joan M G1minsk1, Janice June Goldberg, Deborah Gonzales, Matthew Ryan Goodwin, Scott Allen Gordon, Mable Laverne Gottschalk, Wilham R Graham, Theresa L. Greene, LaToya R. Gregory, Katherine H. Hadley, Margaret Ehssa Hanneman, Winifred T. Hardy, Sarah L. Hartel, Mary Jean Hawkes, Monaca R Hayek, Matthew W Hayes, Elizabeth M Haynes, Gloria K. Henzel, Joanna G. Henzel, July Hulsey Hill, Patncia A. Hunter, Sarah N. Jacobs, Jennifer Luann Jameson, Cynthia C. Jewell, April C Jewell, Prentice L Jones, Emma L. Kitchens, Bettylou Knauft, Evelyn Anderson LaFlamme, Katherine 0. LeCroy, Emma L. Lester, Deborah Fay TITLE CATEGORY Branch Clerk Reference Librarian Courier Library Assistant Children's Librarian Library Assistant Branch Assistant Library Clerk Public Relations Manager Library Assistant Access Coordinator Technical Services Asst. Security Library Assistant Receptionist Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant TBC Secretary Library Assistant Hentage Room Assistant Computer Asst. - Branch Systems Administrator Library Assistant Library Assistant Circulation Supervisor Young Adult Librarian Branch Assistant Circulation Supervisor Library Assistant Bookmobile Assistant Library Assistant Library Assistant Library Assistant Custodian Library Assistant Branch Assistant Custodian Custodian Supervisor Branch Clerk Library Assistant Branch Clerk Children's Assistant Branch Manager Branch Assistant - 22 - SALARIES TRAVEL $ 7,201.30 43,680 00 $ 4,447.17 2,257.50 56,708.86 84.50 22,542.00 10.30 31,000 08 2,857 35 50,984 64 25,518 48 7,821.00 68.75 17,305 68 1,158.50 6,324.24 6,580 00 570.40 16,295.88 25,756.68 3,713 80 19,803 60 2,773 34 45,446.64 1,092 00 4,025.73 25,000.08 50,384.64 21,112 92 16,000 10 370.22 21,735 00 2,605.75 192.00 68484 5,949 84 1,120.69 22,713.60 5,547.36 24,752.04 3,719 26 5,584.92 156.25 20,096.16 14,054.22 753.75 58.80 507.34 427.08 753.48 500 392 50 45 92 216.72 22314 ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 2002 SCHEDULE "4" NAME Lester, Frances D. Lester, Mary Lou Linnemann, Mary Palmer Lowery, Margaret H Markov, Claudia L Martinie, Derek C Mathews, Elizabeth L Mccaffery, Robert J Mccallister, Elizabeth Milford, Sarah Mize, John Harold Monk, Jonathan D Moore, Beverly Jean Moore, V1ck1 C Murphy, Janet H. Navarre, Heatherle1gh Neely, Dawn D Nickels, Robert R Noble, Carole B Oliver, Kimberly B Parrott, Rebecca Jean Plaksin, Sueanne M. Poulsen, Ida Brinch Reeber, Patricia R Reeves, Amber M Register, Ellen L Reuter, Hannah E Roberts, Matthew Ryan Root. LeNetta Payne Rouse, Kelly Loraine Rowland, Charles S. Sandoval, Natasha C. Saxon, Susan Diane Scott, Nancy Lynn Scott, Timothy D. Seigler, Phillip E. Shirley, Kimberly F. Simonds, Mamie F Sims, Annette E Slaboda, Donna Delores Smith, Jams Nicole Song, L1bang Sparks, Jonathan Mathew Tate, William Jefferson Thomas, Ten Charlene Thompson, Shannon E. Thrasher, Deborah Sims TITLE CATEGORY Branch Clerk Branch Manger Branch Manager Branch Clerk Library Assistant Library Assistant Library Assistant Library Clerk Library Clerk Branch Assistant Acquisitions Clerk Computer Operations Asst Clerical Branch Clerk Branch Assistant Library Store Manager Library Assistant Technical Services Asst Branch Clerk Library Assistant Library Assistant Reference Librarian Library Assistant Library Assistant Library Assistant Branch Assistant Branch Assistant Library Assistant Library Assistant Branch Assistant Computer Asst - Branch Library Assistant Library Assistant Library Assistant Security Circulation Supervisor Branch Assistant Business Manager Library Clerk Library Assistant Library Clerk Accounting Clerk Library Assistant Reference Librarian Branch Assistant Library Assistant Branch Manager - 23 - SALARIES TRAVEL $ 20.60 12,925.20 2,302 00 425 00 21,999.96 19,814.55 1,532.25 6,04810 2,868 75 65625 20,800.08 27,000 00 $ 7,812 77 7,354 68 13,330.66 27,500 04 2,979.00 17,680 08 125.00 144.00 12,12930 22,077.66 579 70 19,000.08 1,021.50 210.00 1,960 75 6,626 75 328 95 390.00 19,245 66 2,310.76 3,996 00 6,094 60 8,037.00 21,644 64 77.00 40,500.00 4,782.50 28560 4,980.50 91460 1,672.32 34,320 00 18 75 3,565.25 36,83940 442.68 724.82 11 48 101.36 4910 55.44 22.40 ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2002 SCHEDULE "4" NAME Tumen, Karina J. Tumen, Virginia I Turner, Heather A. Walker, Julie W. Watkins, Mildred C. Weaver, Lauren A. Wiley, Elisabeth Dark Williams, Cynthia G. Williams, Diane T. WIiiiams, Jennifer S. Williamson, Emily Bryce Wimberly, Anne Marie Wnght, Janet Yates, Rebecca A Totals per Report TITLE CATEGORY Library Assistant Library Assistant Library Assistant Assistant Director Library Assistant Clerical Library Assistant Accounting Clerk Reference Librarian Library Clerk Library Assistant Branch Assistant Library Assistant Reference Librarian SALARIES TRAVEL $ 6,219 54 2,201 88 619.50 73,458 86 $ 5,065.83 9,797.09 695 76 2,052 21 27,040.08 406.00 884.82 3,086.00 75920 202.50 3,921.00 $ 1,902,623.59 $ ==2=1=,3=7=1=1=5 See notes to the general-purpose financial statements - 24 - SECTION II FINDINGS AND QUESTIONED COSTS ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 PRIOR YEAR/CURRENT 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, 2001, 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. I I I I I