Athens Regional Library, Athens, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003

ATHENS REGIONAL LIBRARY
ATHENS, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

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 FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

SCHEDULE OF REVENUE

l

STATE

18

2

FEDERAL

19

3

LOCAL

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

SECTION II 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
September 16, 2004

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 ofand for the year ended June 30, 2003, 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.
2003ARL-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 effect 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, 2003, 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 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 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, 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,
w~

RWH:gp 2003ARL-42

State Auditor

ATHENS REGIONAL LIBRARY

ATHENS REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 2003

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

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

342,778.94 $

37,853.88

209,650.55

20,396.80

84,679.49

50,623.93

14,223.41

Total Assets

$

637,108.98 $======12=3=,0=9=8.=02=

LIABILITIES AND FUND EQUITY
LIABILITIES
Salaries Payable Deferred Revenue Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories for Resale Unreserved Undesignated
Total Fund Equity

$

490.50

31,473.17

$

31,963.67

$

$

637,108.98

$

637,108.98 $

14,223.41 76,910.94 91,134.35

Total Liabilities and Fund Equity

$

637,108.98 $ ======12=3=,0=9=8.=02=

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:t} JUNE 30, 2003 JUNE 30, 2002

$

380,632.82 $

398,464.20

230,047.35

226,170.07

135,303.42

30,745.72

14,223.41

30,064.02

$

163,242.80

163,242.80

144,198.55

$

163,242.80 $

923,449.80 $ ==82=9=,6=42==56=

$

$ _ _ _ _1_6_3~,2_42_.8_0_

$

163,242.80 $

490.50 31,473.17 163,242.80 $ _ _1_44~,_19_8_.5_5_
195,206.47 $ _ _14_4..,_,1....;..9-'--8.-'-55'--

$

14,223.41 $

30,064.02

714,019.92

655,379.99

$

728,243.33 $ _ _68_5~,4_44_._01_

$

163,242.80 $

923,449.80 $ ==82=9=,6=42==56=

-3-

ATHENS REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2003

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 Facilities Acquisition and Construction
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Change in Inventory

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

{Memorandum OnlY}

YEAR ENDED

JUNE 30, 2003

JUNE 30, 2002

$ 975,043.33

$

33,060.98 $ 57,523.41

1,944,784.12

163,422.18

19,788.10

$ 3,116,310.61 $ 77,311.51 $

975,043.33 $ 90,584.39
1,944,784.12 183,210.28
3,193,622.12 $

926,038.70 136,166.32 1,924,059.36 220,362.26
3,206,626.64

$ 1,884,626.23 $ 19,649.45 $

218,933.55

549,186.20

24,385.58

157,217.84

244,667.22

21,089.83

15,226.29

$ 3,069,857.33 $ 65,124.86 $

$

46,453.28 $ 12,186.65 $

590,655.70

94,788.31

-15,840.61

1,904,275.68 $ 218,933.55 573,571.78 157,217.84 265,757.05 15,226.29
3,134,982.19 $
58,639.93 $
685,444.01
-15,840.61

1,914,382.77 228,832.37 636,903.41 141,917.09 228,894.63 14,111.58
3, 165,041.85
41,584.79
626,502.88
17,356.34

FUND BALANCE JUNE 30

$ 637,108.98 $ 91,134.35 $

728,243.33 $ ==6=8=5-=,4=44=.0=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 GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2003

EXHIBIT"C"

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology Facilities Acquisition and Construction
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1. 2002
Change in Inventory

GENERAL FUND

BUDGET

ACTUAL

$ 932,095.65 $
1,864,242.00 182,453.00

975,043.33 33,060.98
1,944,784.12 163,422.18

$ 2,978,790.65 $ 3,116,310.61

$ 1,876,353.96 $ 1,884,626.23

201,157.16

218,933.55

575,257.83

549,186.20

161,183.00

157,217.84

190,837.70

244,667.22

15,226.29

$ 3,004,789.65 $ 3,069,857.33

$

-25,999.00 $

46,453.28

0.00

590,655.70

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00 $

57,523.41

19,788.10

$

0.00 $

77,311.51

$

0.00 $ 19,649.45

24,385.58

21,089.83

$

0.00 $ 65,124.86

$

12,186.65

$

0.00

94,788.31

-15,840.61

FUND BALANCE JUNE 30. 2003

$

-25,999.00 $ ==63=7=1'=08=.9=8=

$

0.00 $ =====91..,,1=34==35=

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, 2003

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 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 ofoversight 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 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 LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2003

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 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 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 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, 2003

Note 1: 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 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 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 ofone 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 ofreturn shall be the
-9-

ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2003

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 a reservation of fund balance which indicates that this amount does 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
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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2003

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 ofoperations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
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 ofmoney which has not been secured by surety bond, by guarantee of insurance, 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. Ifa depository elects the pooled method (OCGA 45-8-13 .1) 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 ofoperating 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,

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2003

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 ofthe 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.

CATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $865,485.20. 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, 2003, as follows:

Risk Category

Bank Balance

1

$ 310,628.59

2

10,760.04

3

544,096.57

Total

$ 865A85.20

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2003

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS At June 30, 2003, the fair value of the Library's total investments was $2,549.06 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.

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

2002 2003

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

0.00 $

$

0.00 $

816.00 $

Claims Paid

EndofYear Liability

0.00 $

0.00

816.00 $

0.00

The Library has employee dishonesty insurance coverage as follows:

Position Covered

Amount

All Employees

$ 500,000.00

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2003

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 2003, were as follows:

Compensated Absences

Balance July 1, 2002

$ 144,198.55

Additions Annual Leave Earned and Utilized (Net)

19,044.25

Balance June 30, 2003

$ 163,242.80

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% 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:

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ATHENS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2003

Note 6: RETIREMENT PLANS
Fiscal Year 2003 2002 2001

Percentage Contributed
100% 100% 100%

Required Contribution
$ 155,476.37 $ 151,893.72 $ 173,134.34

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ATHENS REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30. 2003

EXHIBIT"E"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Salaries Payable Deferred Revenue
Total Liabilities FUND EQUITY
Fund Balances Reserved For Inventories for Resale Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

FEDERAL PROGRAM

OTHER PROGRAMS

TOTALS

JUNE 30, 2003

JUNE 30, 2002

$ 56,514.14 $

56,514.14 $

44,747.01

20,396.80

20,396.80

19,977.28

$ 50,623.93

50,623.93

10,362.35

14,223.41

14,223.41

30,064.02

$ 50,623.93 $ 91,134.35 $

141,758.28 $ ===10..,5,..1,=5=0..6.6.==

$ 18,660.26 490.50
31,473.17
$ 50,623.93

$

18,660.26 $

10,362.35

490.50

31,473.17

$

50,623.93 $

10,362.35

$ 14,223.41 $

14,223.41 $

30,064.02

$

0.00

76,910.94

76,910.94

64,724.29

$

0.00 $ 91,134.35 $

91,134.35 $

94,788.31

$ 50,623.93 $ 91,134.35 $

141,758.28 $==1=0=5=,1=50=.6=6=

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, 2003

EXHIBIT "F"

REVENUES
Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Support Services Information Technology
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Change in Inventory

FEDERAL PROGRAM

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2003

JUNE 30, 2002

$ 57,523.41 $
$ 57,523.41 $

$ 19,788.10
19,788.10 $

57,523.41 $ 19,788.10
77,311.51 $

136,166.32 9,546.52
145,712.84

$ 19,649.45 16,784.13 $ 21,089.83

$ 7,601.45

$ 57,523.41 $

7,601.45 $

$

0.00 $ 12,186.65 $

0.00

94,788.31

-15,840.61

19,649.45 $ 24,385.58 21,089.83
65,124.86 $
12,186.65 $
94,788.31
-15,840.61

98,048.81 17,906.63 27,918.01
143,873.45
1,839.39
75,592.58
17,356.34

FUND BALANCE JUNE 30

$

0.00 $ 91,134.35 $

91,134.35 $ ==~94,,;,l,,;,;78~8;;,;.3;;,;1=

See notes to the general-purpose financial statements.

-17 -

ATHENS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 2003
AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Materials Talking Books Center Maintenance and Operations SAMSON Project

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

533,761.11

54,016.89

73,240.47

138,874.92

159,863.94

15,286.00

$ ====9=75=,0=4=3=.3=3

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

ATHENS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30. 2003

SCHEDULE "2"

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 PINES GOLD

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

57,523.41 $ 57,523.41

$

32,658.98

32,658.98

402.00

402.00

$

33,060.98 $

57,523.41 $ 90,584.39

See notes to the general-purpose financial statements.

- 19 -

ATHENS REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30, 2003
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 Commissioners Clarke Franklin Madison Oconee Oglethorpe

SCHEDULE 311 11

GOVERNMENTAL FUND TYPE GENERAL FUND

$

24,000.00

33,075.00

15,000.00

100.00 15,000.00
1,200.00 1,500.00
500.00 8,000.00
500.00 200.00 15,500.00 1,500.00 8,000.00 10,100.52

1,385, 125.08 23,250.00
148,576.50 208,000.00
45,657.02

$ ===1=,9=44====7,=8=4.=1=2

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

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2003

SCHEDULE "4"

NAME
Adams, Laureen A. Alexander, Gayle B. Alke, Rosalyn Perkin Ames, Kathryn S. Anderson, Raymond V. II Archibald, Wrenford N. Arnold, Sarah Hay Atwood, Judy J. Auwater, Clare Babb, Laura Parrott Baird, Brenan Bak, Todd Edward Ball, Erin A. Basinger, Philip E. Best, Glenda S. Bettini, Alice E. Billings, Jessica L. Blake, Phyllis M.
Blumenthal, Caroline A.
Bowden, Holly L. Boyer, Carlie M. Bragg, Doris Marie Bragg, Jamie M. Brooks, Phyllis M. Burns, Paige K.
Burroughs, Janet A.
Bush, Evan Michael Carter, Benjamin G. Carter, Danielle M. Carter, Laura W. Carter, Sara S. Chandler, Stacey L. Chitwood, Rosemary D. Cochran, H. Ernestine Daniel, Dorothy D. Deal, Marcus Gregory DeGrasse, Suzanne M. Dempsey, Theodora M.
Detter, Melissa A.
Dietz, Christine H. Dingler, Nancy F. Dowson, Candice A. Driver, Mary Anne Droz, Gary C. Elsner, Daniel S. Elsner, Jacqueline C. Faust, Twanna B. Ferrelle, Stacey 0. Firestone, Gail C. Fleming, Alfreda W. Floyd, Robin D. Gentry, Melissa D.

TITLE CATEGORY
Reference Assistant Library Clerk Library Clerk Director Security Computer Operations Asst. Library Clerk Materials Services Coordinator Information & Learning Coord. Library Clerk Security Library Clerk Library Clerk Security Library Clerk Library Clerk Library Clerk Administrative Assistant Library Clerk Technology Librarian Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Branch Manager Library Clerk Library Clerk Library Clerk Heritage Room Specialist Library Clerk Library Clerk Branch Manager Library Clerk Bookmobile Assistant Computer Operations Asst. Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Children's Librarian Library Clerk Public Relations Manager Access Coordinator Library Clerk Security Library Clerk
- 21 -

SALARIES

$

21,630.00

7,094.66 $

8,571.06

84,667.14

4,959.00

32,016.74

1,737.00

66,895.14

66,895.14

13,694.31

4,491.00

5,938.80

1,752.00

5,269.50

1,456.00

13,800.15

446.88

28,360.33

661.30

38,651.45

359.93

8,048.06

5,432.04

8,468.55

5,675.80

24,896.70

8,838.48

20,625.05

214.50

49,418.69

23,844.66

22,185.42

14,619.96

530.04

21,023.60

32,790.07

27,215.22

6,833.72

1,130.52

8,062.77

4,640.04

5,715.60

46,198.34

5,114.13

3,291.08

58,665.94

24,285.28

33,053.45

52,723.46

26,454.14

7,146.00

1,177.14

TRAVEL 191.70
4,536.39
1,039.92 407.26
6.72
61.04 155.12
451.60 3,336.61
75.88 495.88
78.96
41.08
11.76 955.92 113.72
91.52

NAME
Gerson, Tamra Fried Gibbs, Shannon Berge Gilmour, Nathan Giminski, Janice J. Goldberg, Deborah Goodwin, Scott Allen Gordon, Mable Laverne Gottschalk, William Graham, Theresa L. Grainger, Farley B. Greene, Latoya R. Gregory, Katherine H. Gunn, Jennifer L. Hallow, Patricia L. Hanneman, Winifred T. Hardy, Sarah L. Harrison, Holly Dean Hartel, Mary Jean Hawkes, Monica R. Hayek, Matthew W. Hayes, Elizabeth M. Haynes, Gloria K. Henzel, Joanna G. Henzel, Judy Hulsey Higton, Janet H. Humphries, Carol Jan Hunter, Sarah N. Jackel-Routh, Nicole Jameson, Cynthia C. Jewell, April C. Jewell, Prentice L. Jones, Emma L. Kirkham, Janice Ann Knauft, Evelyn A. LaFlamme, Katherine Lawrence, Tina Marie Lecroy, Emma L. Leffert, Kimberly B. Lester, Deborah Fay Lester, Mary Lou Linnemann, Mary P. Lowery, Margaret H. Luchtan, Michael John Markov, Claudia L. McCaffery, Robert J. Mccallister, Elizabeth Miller, Amy Leigh Miller, Leigh A. Mize, John Harold Monk, Jonathan D. Moore, Beverly Jean Moore, Vicki C.

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2003

SCHEDULE "4"

TITLE CATEGORY
Library Clerk Library Clerk Library Clerk Library Clerk Library Assistant Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Systems Administrator Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Young Adult Librarian Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Custodian Library Clerk Library Clerk Custodian Custodian Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Branch Manager Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Computer Operations Asst. Clerical Library Clerk
- 22 -

SALARIES

$

17,940.27

983.25

3,309.38

5,424.38

6,492.45

20,689.76

26,701.14

4,614.05

20,529.71

2,794.51

21,424.08

28,552.11

634.40

351.00

4,343.58

26,833.45

538.44

53,687.70 $

21,746.40

16,586.71

153.70

22,531.95

2,182.92

831.60

481.00

631.25

6,681.06

1,277.50

23,395.08

4,965.53

25,659.65

2,706.76

1,764.00

5,162.14

10,947.12

1,143.30

14,619.96

18,005.79

7,313.09

13,313.04

6,361.59

75.00

3,985.91

22,806.59

5,553.80

806.63

16,489.86

1,103.30

21,562.71

26,483.40

8,268.66

6,537.72

TRAVEL
247.19
196.84 57.04 23.24
193.62 304.92

NAME
Navarre, Heatherleigh Newton, Emily A. Nickels, Robert R. Padgett, Daniel C. Parrott, Rebecca Jean Plaskin, Sueanne M. Poulsen, Ida Brinch Putnam, Julie E. Rabun, Jennifer A. Rackley, April Nicole Reeber, Patricia R. Register, Ellen L. Roberts, Matthew Ryan Root, Lenetta Payne Rouse, Kelly Loraine Rowland, Charles S. Sandoval, Natasha C. Scott, Nancy Lynn Scott, Timothy D. Seigler, Phillip E. Simonds, Mamie Fike Sims, Annette E. Slaboda, Donna D. Smith, Janis Nicole Sparks, Jonathan M. Stadler, Stephanie L. Tate, William J. Thompson, Kathleen H. Thrasher, Deborah S. Tooley, Tiffany M. Tumen, Karina J. Tumen, Virginia I. Turner, Heather A. Walker, Julie W. Watkins, Mildred C. Webber, George F. Weddle, Erin Anne Williams, Cynthia G. Williams, Diane T. Williams, Jennifer S. Wright, Janet Wright, Laskisha Y. Wyrtzen, Jaime S.
Accruals June 30, 2003
Totals per Report

ATHENS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2003

SCHEDULE "4"

TITLE CATEGORY
Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Reference Librarian Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Security Library Clerk Business Manager Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Branch Manager Library Clerk Library Clerk Library Clerk Library Clerk Assistant Director Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk Library Clerk
- 23-

SALARIES

$

12,051.91 $

3,360.00

18,328.31

5,287.00

4,068.50

35,236.38

2,962.17

564.45

1,807.32

408.00

20,613.45

426.90

6,139.00

1,764.58

539.01

21,445.62

52.00

1,278.00

8,325.00

22,438.29

42,901.74

4,711.68

4,051.53

3,133.57

592.80

1,201.57

36,495.14

2,010.13

37,944.60

223.44

6,404.23

3,096.15

2,131.60

57,984.61

5,152.83

17,598.16

980.00

1,412.46

28,719.01

130.20

1,043.75

9,965.57

4,940.01

$ 1,975,565.03 $

490.50

TRAVEL 123.08
202.68 4.48
802.28 14,206.45

$ 1,976,055.53 $ ===1=4:!:,2=0=6=.4=5

SECTION II FINDINGS AND QUESTIONED COSTS

ATHENS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2003
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, 2002, 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.