BARTRAM TRAIL REGIONAL LIBRARY
WASHINGTON, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2007
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

BARTRAM TRAIL REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

B

STATEMENT OF ACTIVITIES

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUND

D

RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE

GOVERNMENTAL FUND

F

RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCE TO THE STATEMENT OF ACTIVITIES

G

NOTES TO THE BASIC FINANCIAL STATEMENTS

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND

SUPPLEMENTARY INFORMATION

SCHEDULES OF REVENUE

2

STATE

3

FEDERAL

4

LOCAL

5 SCHEDULE OF SALARIES AND TRAVEL

Page
1 2 3 4 5 7 8
17
18 19
20
21

BARTRAM TRAIL REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS
SECTION III MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
September 26, 2008

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 Bartram Trail Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements of the governmental activities, and the major fund (Exhibits A through G) of the Bartram Trail Regional Library as of and for the year ended June 30, 2007, which collectively comprise the Library's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Bartram Trail Regional Library's management. Our responsibility is to express opinions on these financial statements based on our audit.
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 financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe Library's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe governmental activities and the major fund ofthe Bartram Trail Regional Library, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
2007ARL-41

The Bartram Trail Regional Library has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements.
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 17 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Bartram Trail Regional Library's basic financial statements. The accompanying supplementary information which consist ofSchedules 2 through 5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,

RWH:as 2007ARL-41

Ru sell W. Hinton, CPA, CGFM State Auditor

BARTRAM TRAIL REGIONAL LIBRARY

BARTRAM TRAIL REGIONAL LIBRARY STATEMENT OF NET ASSETS
JUNE 30, 2007
ASSETS Cash and Cash Equivalents Accounts Receivable
Federal Government Local Other Less: Allowance for Doubtful Accounts Capital Assets Equipment Library Collections Less: Accumulated Depreciation
Total Assets
LIABILITIES Accounts Payable
NET ASSETS Invested in Capital Assets, Net of Related Debt Unrestricted
Total Net Assets
Total Liabilities and Net Assets

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

320,525.14

1,078.00 46,379.03
3,943.65 -1,799.88

127,900.00 1,024,647.00 -958,554.00

$ ===5=6=4,.1.1.=8=.9=4

$ _ _ _-'-16'"'"'"'""12'-"3-'-"'.1-"-9

$

193,993.00

354,002.75

$ _ _--=5..:.47:..1.,9=..:9:.::5;.:.a7.-=-5

$ ===5=6==4,=11=8=.9=4

The notes to the basic financial statements are an integral part of this statement.
- 1-

BARTRAM TRAIL REGIONAL LIBRARY STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2007

EXHIBIT"B"

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR

GRANTS AND

SERVICES

CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

GOVERNMENTAL ACTIVITIES

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

$ 189,017.68 $ 83,922.85 250,735.40 95,479.03 17 365.34

13,593.23 $

310,855.37 $ 30,630.18

135,430.92 -83,922.85 -250,735.40 -64,848.85 -17 365.34

Total Governmental Activities

$ 636,520.30 $

13,593.23 $

341,485.55 $ _ _ _-..:.:2..c...81-',,4_4_1_.5_2

General Revenues Allotments from Participating Governments Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous

$

285,059.50

39,410.97 3,628.53 14 491.98

Total General Revenues

$ _ ___,::;34..:,:2,..,5:..;:9;.;:;0a,;;.9"'"'8

Change in Net Assets

$

61,149.46

Net Assets - Beginning of Year

486,846.29

Net Assets - End of Year

$ ======54==-7-=,9=9=5.,..7,..5

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

BARTRAM TRAIL REGIONAL LIBRARY BALANCE SHEET
GOVERNMENTAL FUND JUNE 30, 2007
ASSETS Cash and Cash Equivalents Accounts Receivable
Federal Government Local Other Less: Allowance for Doubtful Accounts
Total Assets
LIABILITIES AND FUND BALANCE LIABILITIES
Accounts Payable Deferred Revenue
Total Liabilities FUND BALANCE
Unreserved Undesignated Reported in: General Fund
Total Liabilities and Fund Balance

EXHIBIT "C"

GENERAL FUND

$

320,525.14

1,078.00 46,379.03
3,943.65 -1,799.88

$ ==3=70='=12=5=.9=4

$

16,123.19

678.59

$

16,801.78

353,324.16 $ ==3=70='=12=5=.9=4

The notes to the basic financial statements are an integral part of this statement. -3-

BARTRAM TRAIL REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30, 2007

EXHIBIT "D"

Total Fund Balance - Governmental Fund (Exhibit "C")

$

Amounts reported for Governmental Activities in the Statement of Net Assets are different because:

Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of:

Equipment Library Collections Accumulated Depreciation
Total Capital Assets

$ 127,900.00 1,024,647.00 -958,554.00

Fines and Fees Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the Governmental Funds.

353,324.16
193,993.00 678.59

Net Assets of Governmental Activities (Exhibit "A")

$ 547,995.75

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

BARTRAM TRAIL REGIONAL LIBRARY

EXHIBIT "E"

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUND

YEAR ENDED JUNE 30, 2007

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending

GENERAL FUND
$ 285,059.50
324,483.39
17,002.16
15,393.11 3,628.53
51,424.48
$ 696,991.17
$ 204,623.68
83,922.85 250,735.40
95,479.03
17,365.34
$ 652,126.30
$ 44,864.87
308,459.29

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

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BARTRAM TRAIL REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007

EXHIBIT"F"

Total Net Change in Fund Balance - Governmental Fund (Exhibit "E")
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:
Capital Outlay Depreciation Expense
Excess of Depreciation Expense over Capital Outlay
Fines and Fees Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the Governmental Funds.
Change in Net Assets of Governmental Activities (Exhibit "B")

$

44,864.87

$ 45,101.00 -29,495.00

15,606.00

678.59

$ =====61,,.,=14=9=.4=6

The notes to the basic financial statements are an integral part of this statement. -7-

BARTRAM TRAIL REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "G"

Note 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY
REPORTING ENTITY
The Bartram Trail 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.
The Library Board is comprised of nine members which are also trustees of the member library which appointed them. The Library Board membership consists ofthree members appointed from the Mary Willis Library, three members appointed from the Taliaferro County Library and three members appointed from the Thomson-McDuffie County Library. 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 ofGeorgia for State and Federal flow through funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Bartram Trail Regional Library is therefore determined to be a joint venture.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Library's basic financial statements are collectively comprised of the Library-wide financial statements, fund financial statements and notes to the basic financial statements ofthe Bartram Trail Regional Library.
Library-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall Library. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Library's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the Library related to the administration and support ofthe Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs.

-8-

BARTRAM TRAIL REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the Library's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds.
The Library reports the following major governmental fund:
General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library.
BASIS OF ACCOUNTING
The basis ofaccounting determines when transactions are reported on the financial statements. The Library-wide governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The Library uses funds 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.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The Library considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Interest is considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds.
The Library funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Library's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
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BARTRAM TRAIL REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

RECEIVABLES

Receivables consist of amounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, fines and fees from patrons 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 basic financial statements do include amounts which would necessitate the need for an allowance for uncollectible receivables.

CAPITAL ASSETS

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the Library-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method.

Capitalization thresholds and estimated useful lives of capital assets reported in the Library-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Equipment Library Collections

$ 5,000.00 5 to 20 years

All

10 years

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.

NET ASSETS

The Library's net assets in the Library-wide Statements are classified as follows:

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BARTRAM TRAIL REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Invested in capital assets, net of related debt - This represents the Library's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt.
Unrestricted net assets - Unrestricted net assets represent resources derived from grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the general operations ofthe Library, and may be used at the discretion of the Library to meet current expenses for those purposes.
Note 3: DEPOSITS
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. At June 30, $72,766.97 ofdeposits were not secured by surety bond, insurance or collateral as specified above. The Library is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the Library's deposits.
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,
(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 of development authorities created by the laws of the State of Georgia, and

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BARTRAM TRAIL REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 3: DEPOSITS

(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, 2007, the bank balances were $357,511.74. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk:

Category 1 - Uncollateralized Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's
trust department or agent but not in the Library's name.

The Library's deposits are classified by custodial credit risk category at June 30, 2007, as follows:

Custodial Credit Risk Category

Bank Balance

1

$ 72,766.97

2

0.00

3

109,954.99

Total

$ 182,721.96

Note 4: CAPITAL ASSETS

The following is a summary of changes in the Capital Assets during the fiscal year:

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BARTRAM TRAIL REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 4: CAPITAL ASSETS

Governmental Activities Capital Assets Being Depreciated
Equipment Library Collections
Less Accumulated Depreciation for: Equipment Library Collections
Governmental Activity Capital Assets - Net

Balances Jul)'. 1, 2006

Increases

Decreases

Balances June 30, 2007

$ 127,900.00

$ 127,900.00

1,007,173.00 $ 45,101.00 $ 27,627.00 1,024,647.00

114,745.00 841,941.00
$ 178 387.00 $

3,167.00 26,328.00
15.606 00 $

27,627.00

117,912.00 840,642.00

000 $ 193 993 00

Current year depreciation expense by function is as follows:

Public Services

$ 29,495.00

Note 5: 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 expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.

The Library participates in the Association County Commissioners ofGeorgia-Selflnsured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with Safety National Casualty Corporation to provide coverage for potential losses by the Fund in excess of$1,000,000.00 loss per occurrence, up to $2,000,000.00.

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BARTRAM TRAIL REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 5: RISK MANAGEMENT

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

Position Covered

Amount

All Employees

$ 50,000.00

Note 6: OPERATING LEASES

Bartram Trail Regional Library has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2007, for governmental funds amounted to $3,240.00. Future minimum lease payments for these leases are as follows:

Year Ending

Governmental Funds

2008

$ 1,890.00

Note 7: SIGNIFICANT CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone 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 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

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BARTRAM TRAIL REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 8: RETIREMENT PLANS

Fiscal Year

Percentage Contributed

Required Contribution

2007 2006 2005

100% 100% 100%

$ 28,825.52 $ 26,593.00 $ 29,753.00

Note 9: AFFILIATED LIBRARIES DISCLOSURE

The Thomson-McDuffie County Library, Taliaferro County Library and Mary Willis Library are legally separate, tax exempt organizations who participate in shared activities with the Bartram Trail Regional Library. These affiliated libraries do not meet the criteria for reporting as either a component unit or related entity ofthe Bartram Trail Regional Library.

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BARTRAM TRAIL REGIONAL LIBRARY GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2007

SCHEDULE "1"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

$

272,524.00 $

265,560.00 $

285,059.50

314,405.00

314,405.00

324,483.39

17,002.16

23,691.00

23,691.00

15,393.11

2,455.00

2,455.00

3,628.53

7 165.00

37,165.00

51 424.48

$

620,240.00 $

643,276.00 $

696,991.17

$

211,423.00 $

212,099.00 $

204,623.68

84,078.00

84,078.00

83,922.85

247,241.00

246,693.00

250,735.40

71,526.00

65,224.00

95,479.03

5,972.00

35,182.00

17,365.34

$

620,240.00 $

643,276.00 $

652,126.30

$

0.00 $

0.00 $

44,864.87

0.00

0.00

308,459.29

Fund Balance - Ending

$

0.00 $

0.00 $ ===3=53=,3=2=4=.1==6

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

-17-

BARTRAM TRAIL REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007
AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Benefits Library Materials Maintenance and Operations

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

206,981.00

56,443.39

30,429.00

30,630.00

$ ======32=4='=,4=8=3=.3=9

See notes to the basic financial statements.

- 18 -

BARTRAM TRAIL REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2007
AGENCY/FUNDING GRANTS Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Family Literacy Program Accounting Alliance

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

13,002.16

4,000.00

$ ===1=7..i,;,0.,.0=2=.1=6

See notes to the basic financial statements.

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BARTRAM TRAIL REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2007
LOCAL SOURCES Boards of Education McDuffie County Taliaferro County Wilkes County City Governments Crawfordville Sharon Thomson Washington County Governments Boards of Commissioners McDuffie Taliaferro Wilkes

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

28,286.00

2,500.00

6,000.00

3,300.00 100.00
58,637.00 59,038.00

59,034.50 10,414.00 57,750.00

$ ===28=5=,0=5=9=.5=0

See notes to the basic financial statements.

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NAME
Baily, Abby Brooke, Amanda Crowe, Lillie Denard, Judy H. Dowda, Margaret L Dubois, Sharon M. Freeman-Moss, Sonya Frick, Dorothy W. Gheesling, Lynda Harber, Patty S. Harris, Suzan R. Haughey, Courtney Haughey, Katie Holbert, Steve Holder, Tracy Howard, Jan H. Leaphart, Angela Montomery, Jo Poss Moore, James Moss, Brittany Palmer, Debbie Pennywell, Natalie Russell, Delaney Shoemaker, Jessie W. Stover, Celeste A. Welch, Cynthia Wolfe, Dianne Wolter, Barbara
Totals per Report

BARTRAM TRAIL REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2007

SCHEDULE "5"

TITLE CATEGORY
Student Assistant Student Assistant Director Circulation Assistant Student Assistant Branch Manager Student Assistant Library Assistant Library Assistant Tech. Svcs. Librarian Branch Librarian Student Assistant Student Assistant Student Assistant Circulation Assistant Administrative Assistant Public Service Coordinator Administrative Assistant Tech/Circulation Assistant Student Assistant Janitor Student Assistant Student Assistant Tech/Circulation Assistant Director Administrative Assistant Bookmobile Assistant Branch Manager

SALARIES

TRAVEL

$

749.33

265.23

54,153.47 $

1,484.80

22,044.00

79.22

814.01

4,066.88

98.02

20.60

2,180.00

5,676.91

64,462.32

242.08

56,653.44

1,470.33

12.00

1,491.40

2,155.28

25.22

10,766.50

195.07

27,919.32

117.48

32,347.11

17,691.74

813.60

2,684.47

2,883.98

5,408.00

1,104.68

23,512.08

1,078.48

2,650.02

2,328.34

4,008.44

3,912.01

44.50

$

352,775.16 $ ==4=,8=3=5=.2=0

See notes to the basic financial statements.

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SECTION II FINDINGS AND QUESTIONED COSTS

BARTRAM TRAIL REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

COMMUNICATION OF INTERNAL CONTROL DEFICIENCIES

The auditor is required to communicate to management and those charged with governance control deficiencies identified during the course of the financial statement audit that, in the auditor's judgment, constitute significant deficiencies or material weakness.

A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Bartram Trail Regional Library's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Bartram Trail Regional Library's financial statements that is more than inconsequential will not be prevented or detected by the Bartram Trail Regional Library's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Bartram Trail Regional Library's internal control.

Any identified deficiencies in internal controls that we did not consider to be significant deficiencies and/or material weaknesses have been communicated to management and those charged with governance within a separate management letter dated September 26, 2008. Internal control deficiencies identified during the course of this engagement that were considered to be significant deficiencies and/or material weaknesses are presented below:

FINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7572-07-01

Condition:

The Library did not have adequate controls in place over the financial statement preparation process.

Criteria:

Management is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures.

Questioned Cost: NIA

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BARTRAM TRAIL REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

FINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7572-07-01

Information:

The Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the Library's financial statements. During the audit, numerous correcting entries were proposed by the auditor and accepted by the client to properly present the entity's fund level and entity-wide level financial statements.

Cause:

The Library did not implement an adequate system of internal control over the financial statement process.

Effect:

The Library did not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles.

Recommendation:

The Library should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit.

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SECTION III MANAGEMENT'S RESPONSES

BARTRAM TRAIL REGIONAL LIBRARY SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2007
Bartram Trail Regional Library's responses to the findings described below were not audited and accordingly, we express no opinion on it.
Finding Control Number: FS-7572-07-01
The Bartram Trail Regional Library Board approved the Blackbaud Financial System in October 2006, and joined the Blackbaud Library Alliance immediately. The Library System patiently waited for other State Library Systems to transfer into the Blackbaud Financial System.
The Library System began the transfer process in April of 2008, and bought completely into the Blackbaud System in May of 2008.
The Regional Library Board realized the importance ofpreparing financial statements but the shift from the Funware Financial System to the Blackbaud Financial System was a time consuming process, which was out of the control of the Bartram Trail Regional Library System.
We have been unable to effectively complete the financial statements due to the inadequate financial system, but please understand this problem has been corrected as of April 2008.
Contact Person: Lillie Crowe, Director Phone: (706) 678-7736 E-mail: lillie@btrl.net