Audit report, Brunswick-Glynn County Regional Library, Brunswick, Georgia, year ended June 30, 1996

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AUDIT REPORT BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY
BRUNSWICK, GEORGIA YEAR ENDED JUNE 30, 1996
---------~ ------------------- ----------
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

BRUNSWICK-GLYNN COUNTY REGIONAL LIDRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

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

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPEND~S AND

CHANGES IN FUND BALANCES

15

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

16

2 CASH AND CASH EQUIVALENTS

17

3 ACCOUNTS RECEIVABLE

18

SCHEDULE OF REVENUE

4

STATE

19

5

OTHER

20

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

21

7

LOTTERY PROGRAM

22

8 MEMBERSHIP OF LIBRARY BOARD

23

9 SCHEDULE OF SALARIES AND TRAVEL

24

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members ofthe Brunswick-Glynn County Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Brunswick-Glynn County Regional Library, as ofand for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets
Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
96ARL-44

The aggregate effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements ofthe matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Brunswick-Glynn County Regional Library as ofJune 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 10, 1997, on our consideration ofthe Library's internal control structure and a report dated March 10, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements of the Brunswick-Glynn County Regional Library taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 9 which includes the Schedule ofFederal Financial Assistance), 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 ofthe Brunswick-Glynn County Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office 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,

CLV:cm 96ARL-44

Claude L. Vickers State Auditor

BRUNSWICK-GLYNN COUNTY REGIONAL LffiRARY - 1-

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30,1996

ASSETS Cash and Cash Equivalents Accounts Receivable

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

TOTALS (Memorandum Only) JUNE 30,1996 JUNE 30,1995

$ 443,655.70

$ 7,502.93 $

451 ,158.63 $

483,839.06

5,233.12 $ 8,885.92

14,119.04

29,939.99

Total Assets

$ 448,888.82 $ 8,885.92 $ 7,502.93 $

465,277.67 $

513,779.05

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Retainage Payable

$ $ 7,254.94

Total Liabilities

$ 7,254.94 $

FUND EqUITY

Fund Balances Reserved For State Capital Outlay Project Unreserved Undesignated

$ 441,633.88 $

Total Fund Equity

$ 441,633.88 $

8,885.92 8,885.92
$ 0.00 0.00 $

$ $
7,502.93 $ 0.00
7,502.93 $

8,885.92 $ 7,254.94 16,140.86 $
7,502.93 $ 441,633.88 449,136.81 $

4,230.83 5,037.76 20,448.00 29,716.59
76,584.99 407,477.47 484,062.46

Total Liabilities and Fund Equity $ 448,888.82 $ 8,885.92 $ 7,502.93 $

465,277.67 $

513,779.05

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

BRUNswiCK-GLYNN COUNTY REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1996

EXHIBIT-B-

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

THIS PAGE LEn BLANK

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1996

EXHIBITC

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expendnures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Uses
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1995

GENERAL FUND

BUDGET

ACTUAL

$ 789,612.00 $ 351,526.00

789,612.54 16,74
617,024.90

$ 1,141,138.00 $ 1,406,654.18

$ 627,680.00 $ 89,483.00 93,716.00
246,099.00 76,410.00

624,138,08 88,534.19
247,306.03 333,620.49
78,898,98

$ 1,133,388.00 $ 1.372,497.n

$

7,750.00 $

34,156.41

$

-7,750.00

$

0.00 $

34,156.41

415,316.40

407,4n.47

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

9,055,00

$ 26,000,00

33,086.30

959,52

$ 26,000.00 $ 43,100.82

$ 26,000.00 $ 43,100.82

$ 26,000.00 $ 43,100.82

$

0.00 $

0.00

$

0.00 $

0.00

0.00

0.00

FUND BALANCE JUNE 30.1996

$ 415,316.40 $ 441,633.88

$

0.00 $ _ _....0.-..00.-,

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

BRUNSWICK-GLYNN COUNTY REGIONAL LffiRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Brunswick-Glynn County Regional 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 ofthe 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 Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles.
The more significant of the Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the" criteria set forth in GASB Codification of Governmental Accounting and Financial"Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Brunswick-Glynn County Regional Library is determined to be a joint venture.
The Library Board consists of 15 members; 2 members appointed by Brantley County Library Board, 2 members appointed by the Camden County Library Board, 2 members appointed by the Charlton County Library Board, 3 members appointed by the Glynn County Library Board, 2 members appointed by the Long County Library Board, 2 members appointed by the McIntosh County Library Board and 2 members appointed by the Wayne County Library Board. The Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. M~mbership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Brunswick-Glynn County Regional Library is located in Brunswick, Georgia, and serves Brantley, Camden, Charlton, Glynn, Long, McIntosh and Wayne Counties.
FUND ACCOUNTING
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.

- 6-

BRUNSWICK-GLYNN COUNTY REGIONAL LmRARY

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

'\;
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 confonn to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of GSFIC project number 6632-94-SB-008.
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.
Governmental funds are accounted for using the modified accrual basis of accounting under which:

- 7-

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.

Expenditures are generally recognized when the related fund liability is incurred.

BUDGET

The Brunswick-Glynn County 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 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 Georgia Department of Education, Division ofPublic Library Services as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

RECEIVABLES

Receivables consist ofgrant reimbursements due from State or other grantors 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.

"

- 8-

BRUNSWICK-GLYNN COUNTY REGIONAL LmRARY

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

No"te 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS
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 ofinsurance, 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 of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
- 9-

BRUNSWICK-GLYNN COUNTY REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or ofthe State of Georgia,

(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,

(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

(6) Industrial revenue bonds and bonds of development 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 and 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, 1996, the bank balances were $542,014.58. 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, 1996, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 107,502.93 434,511.65 0.00
$ 542014.58

- 10 -

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 3: RISK MANAGEMENT
The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees and natural disaster.
The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illnesses or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.
The Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to these risks in the past three years.
Note 4: 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 expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 5: ACCUMULATED EMPLOYEES' LEAVB
Full-time employees accrue vacation leave based on a formula established by the Library with a maximum accumulation ofthirty days, and a maximum earned in a calendar year of twenty-five days. Upon retirement or termination of employment employees are paid at the current rate of pay for their unused vacation leave up to twenty-five days. See Note 1 - Compensated Absences
Note 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time 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 public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
- 11 -

BRUNSWICK-GLYNN COUNTY REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 6: RETIREMENT PLANS

Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.

The Library's payroll for employees covered by TRS for the year ended June 30, 1996, was $796,971.45; total payroll was $845,441.05.

TRS CONTRmUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1996, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1996 amounted to $133,970.65, of which $94,122.10 was made by the Library and $39,848.55 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofPERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows:

Total pension benefit obligation Net assets available for benefits, at cost Unfunded pension benefit obligation

$ 17,442,607,000.00 15,857,066,000.00
$ 1.585,541.000.00

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BRUNSWICK-GLYNN COUNTY REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

>-
Note 6: RETIREMENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of $94,122. 10 was actuarially determined and represented .0155% oftotal contributions made by all participating employers.
Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
Note 7: SURETYBONDS
All employees of the Library are bonded in the amount of $30,000.00 with the United States Fidelity and Guarantee Company, Baltimore, Maryland, their Bond No. 2-0080-11314-94-8, on which premium was paid through November 1, 1996.
The Library Treasurer, Ms. Selma Bunkley, is bonded in the amount of $30,000.00 with the United States Fidelity and Guarantee Company, Baltimore, Maryland, their Bond No. 2-0170-11420-94-2, on which premium was paid through November 1, 1996.
The Library Assistant Treasurer, Ms. Marcella Duckworth, is bonded in the amount of$30,000.00 with the United States Fidelity and Guarantee Company, Baltimore, Maryland, their Bond No. 2-0170-11448-94-4, on which premium was paid through November 1, 1996.

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BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY COMBINING BALANCE SHEEI SPECIAL REVENUE FUND JUNE 30,1996

EXHIBIT"E"

ASSETS Accounts Receivable

LOTIERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

PROMOTION OF THE
HUMANITIES PROGRAM

TOTALS JUNE 3D, 1996 JUNE 30, 1995

$

0.00 $

8,485.92 $

400.00 $

8,885.92 $ _ _.4.,.-.23.0..-,8_3

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

FUND EQUITY

Fund Balances

Unreserved

Undesignated

$

Total Liabilities and Fund EqUity $

$
0.00 0.00 $

8,485.92 $

400,00 $

8,885.92 $

4,230,83

0,00

0.00

0.00

0.00

8,485.92 $

400.00 $

8,885.92 $ _ _.4.,.-.23_0.-.8.3..

See notes to the general purpose financial statements.

-14-

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1996

EXHIBIT -po

"

LIBRARY SERVICES

AND

CONSTRUCTION ACT

TITLE!

PROMOTION

PUBLIC

OF THE

TOTALS

LOTTERY

LIBRARY

HUMANITIES

YEAR ENDED

PROGRAM

SERVICES

PROGRAM JUNE 30,1996 JUNE 30,1995

REVENUES

State Funds Federal Funds Other Funds

$ 9,055,00 $

29,086.30 $

$ 4,000,00
959.52

9,055.00 $ 33,086,30
959,52

149,524.21 29,049,01

Total Revenues

$ 9,055.00 $

29,086.30 $

4,959,52 $

43,100,82 $ 178,573,22

EXPENPITURES

Current Program Services Administration

$ 9,055,00 $

29,086.30 $

4,959,52 $

43,100.82 $

175,359,45 5,558.18

Total Expenditures

$ 9,055.00 $

29,086,30 $

4,959.52 $

43,100.82 $ 180,917.63

Excess of Revenues over (under) Expenditures $

0.00 $

0.00 $

0,00 $

0.00 $

-2,344,41

FUND BALANCE JULY 1

0.00

0.00

0.00

0,00

2,344,41

FUND BALANCE JUNE 30

$

0.00 $

0,00 $

0,00 $

0.00 $

0,00

See notes to the general purpose financial statements.

-15-

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSiSTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U, S, Department of Through Georgia Department of Education Ubrary Services and Construction Act Title I - Public Ubrary Services 1994 Carry-Over 1995 Carry-Over Title III - Interlibrary Cooperation and Resource Sharing 1996 Contract
Total U, S. Department of Education
Humanities, National Endowment for the Georgia Humanities Council Through Emory University Promotion of the Humanities Program GHC-95-089-G

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.034 $ 84,034

3,900.38 $ 25,185.92

84,035 $

16,74 29,103.04 $

3,900.38 25,185.92
16,74 29,103.04

45.129 $

4,000,00 $

4,959.52 (1)

Total Federal Financial Assistance

$

33,103,04 $===34=,0=6:=2=:,5=:6

The Library had no major programs as defined by the Single Audit Act of 1984,
(1) Expenditures for this program include State, and/or Local and Other Funds, Expenditures are not maintained by fund source,

See notes to the general purpose financial statements, - 16-

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Coastal Bank, Brunswick, Georgia
N,O,W, Accounts (2,38%) Certificates of Deposit
No, 22110 (5,05%) No, 22136 (5.25%)
Southeastern Bank, Nahunta, Georgia
Money Market Account (Variable)
OTHER
Petty Cash

$ 167,485,85 167,238,93 100,000,00 $ 434,724.78
7,502,93
45,00
$ 442,272,71

See notes to the general purpose financial statements.

- 17 -

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY ACCOUNTS RECEIVABLE
JUNE 30, 1996

SCHEDULE "3"

Education, Georgia Department of Federal Program Ubrary Services and Construction Act Title I - Public Ubrary Services
Emory University Federal Program Promotion of the Humanities Program
Public Ubrary Ida Hilton Public Ubrary (Mcintosh County)
Reimbursement for Salaries Camden County Board of Commissioners Camden County Ubrary Charlton County Ubrary
Various Sources Interest Earned

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

8,485.92 $

8,485.92

$

3,673.30

300,43 233.23
40.84

985.32

400.00

400.00
3,673.30
300.43 233.23
40.84
985.32

$

5,233,12 $

8,885.92 $====14=,1=1:::::9.=04=

See notes to the general purpose financial statements.

- 18 -

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Ubraries Salaries and Travel Ubrary Materials Talking Book Centers Maintenance and Operations Lottery Program Technology Installation
Georgia State Financing and Investment Commission Reimbursement on Construction Project

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 504,291.54 102,041.00 89,839.00 93,441.00
$

9,055.00

$ 504,291,54 102,041.00 89,839.00 93,441.00
9,055.00

_ _ _ _ $ 50,528.00

50,528.00

$ 789,612.54 $ 9,055.00 $ 50,528.00 $ 849,195.54

See notes to the general purpose financial statements.

- 19 -

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

LOCAL SOURCES Boards of Education Brantley County Camden County Charlton County Glynn County Long County Mcintosh County Wayne County City Government Brunswick County Governments Boards of Commissioners Camden Charlton . Glynn Long Public Library Ida Hilton Public Library (Mcintosh County)
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Photocopying Recycling Income Rental Income Reimbursements For Salaries and Maintenance Costs Camden County Library Charlton County Library Glynn County Law Library Long County Library Mcintosh County Library Wayne County Library

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

2,425.92

4,627,92

1,632.96

2,300.00

816.96

943.92

7,293.00

18,000.00

7,969.00 686.00
251,404.35 713.00

1,362.00

15,985.68 $ 12,714.78 16,038.99
1,121.22 5,013.18
132.24 7,000.00

131,034.78 18,592.12 5,000.47 13,127.46 30,699.53 60,389.42

$

2,425,92

4,627,92

1,632,96

2,300.00

816.96

943.92

7,293.00

18,000.00

7,969.00 686.00
251,404.35 713.00

1,362.00

959.52 $

909.63

16,945.20 12,714.78 16,948.62
1,121.22 5,013.18
132.24 7,000.00

131,034.78 18,592.12 5,000.47 13,127.46 30,699.53 60,389.42

$ 617,024.90 $

959.52 $ _ _..;;9;.;;0;.;9.,;,63:;. $ 618,894.05

See notes to the general purpose financial statements.

- 20 -

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996

SCHEDULE w6w

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

EXPENDITURES

Operating Costs

Salaries

$ 822,595.06 $

22,845.99

$

Employee Benefits

221,639.87

6,200.06

Travel of Employees

7,134.39

Professional and Technical Services

7,990.85

9,079.77

Property Services

41,282.44

Shared Services

7,750,00

Supplies

24,296.85

675,00

Library Books and Materials

120,381.12

Utilities

78,997.89

Communications and Insurance

35,128.80

Dues and Fees

300.00

Nonoperating Costs Building and Building Improvements Equipment

5,000.50

$ 4,300.00

35,679.35 84,840.34

TOTAL
845,441.05 227,839.93
7,134.39 17,070.62 41,282.44 7,750.00 24,971.85 120,381.12 78,997.89 35,128.80
300.00
35,679.35 94,140.84

Total Expenditures

$ 1,372,497.77 $

43,100.82 $ 120,519.69 $ 1,536,118.28

See notes to the general purpose financial statements, - 21 -

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAM YEAR ENDED JUNE 30, 1996
EXPENDITURES Operating Costs Professional and Technical Services Supplies Nonoperating Costs Equipment
Total Expendroures

SCHEDULE '7"

TECHNOLOGY INSTALLATION

$

4,080,00

675,00

4;300.00

$ =======9=:,0=55=.0=0

See notes to the general purpose financial statements.
- 22 -

BRUNSWICKGLYNN COUNTY REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30.1996

SCHEDULE -8"

BOARD MEMBER ADl:>RESS
Ms. Virginia Ramsey (*) Acting Chairperson 393 Lake Circle Brunswick, Georgia 31521
Ms. Edna Armstrong (*) 1206 Badell Avenue Woodbine, Georgia 31569
Ms. Selma Bunkley (*) 313 Union Street Brunswick, Georgia 31520
Ms. Mary Chapman (*) P. O. Box 72 Ludowici, Georgia 31316
Mr. Tony Cheshire (*) P. O. Box 514 Nahunta, Georgia 31553
Ms. Marcella Duckworth (*) 3282 Lakeside Drive Brunswick, Georgia 31520
Ms. Pam Harper
P. o. Box 152
Waynesville, Georgia 31566
Ms. Glenna Hirvela (*) P. O. Box 74 Jesup, Georgia 31545
Ms. Ophelia Holloman (*) P. O. Box 30 Meridian, Georgia 31319
Ms. Lynn Jones (*) 109 Worth Street Jesup, Georgia 31545
Mr. Edward B. Liles P. O. Box 1496 Brunswick, Georgia 31521
Mr. Fred C. Marland (*) P. O. Box 636 Darien, Georgia 31305
Ms. Mary McQueen (*) 607 McQueen Street Folkston, Georgia 31537
(*) Denotes Board Members Serving as of June 30, 1996
See notes to the general purpose financial statements.

23

Ms. Marrion Mitcham (*) P. O. Box 307 Ludowici, Georgia 31316
Ms. Ruby Moody Route 2, Box 1176 Hortense, Georgia 31543
Ms. Donna Nance r)
Route 3, Box 1638 Folkston, Georgia 31537
Ms. Virginia Proctor (*) 31 Colesburg Road Woodbine, Georgia 31569

PERSONNEL

Addison. Alfultis. Barber. Bennett, Brown. Carney. Coleman Darby, Drawdy, Ellwoocl. Gibson, Hall. Harrington, Harris. Hildebrand, Hodges. Howard. Hudson, wey. Jackson. Jones. Kammerer. Keith. Kent. Knapp. Lagess. Lewis, Madden. Mainor. McKenzie. McKie. Miller, Moore. Moore. Mullis. Nettles. O'Quinn. Owens. Parker. Patch, Parrish. Perry, Peterson. Powell. Ransom, Schaffer. Sellers. Sharpe, Shinnick, Stafford. Suffoletto. Sullivan. Tench, Williamson. Wilson,

Bryan Susan Virginia Melony Angelia Martha Deborah Jim Mavis Cynthia Joseph Cynthia Robbyne Carol Jane Marcia Joanna Carol James Diane Tanisah James Shirley Candace Carolyn Michele Marian Cynthia Taneisha Betty Mary Victoria Jacqueline Roberta Melinda Cynthia Diane Bryan Barbara Margaret Dawn Cindy Vera Kathleen Betty Karen Mary Wanda Joseph Myra Connie Juanita Ray Edna Mary

BRUNSWICK-GLYNN COUNTY REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30 1996

SCHEDULE"&"

posmON
Clerical Circulation Assistant Secretary Clerical Children's Assistant Affiliate Manager Technical Services Assistant Director Library Assistant Clerical Custodian Clerical Technical Services Clerk Clerical Affiliate Coordinator Librarian Reference Librarian Bookmobile Assistant Clerical Talking Book Assistant Reference Assistant Clerical Regional Reference Librarian Clerical Assistant Director Adult Services Librarian Clerical Affiliate Manager Clerical Clerical Circulation Assistant Circulation Supervisor Children's Assistant Affiliate Janitor Library Assistant Affiliate Manager Affiliate Manager Bookkeeper/Secretary Clerical Clerical Circulation Assistant Clerical Clerical Affiliate Janitor Children's Librarian Talking Book Librarian Clerical Bookmobile Assistant Clerical Bookmobile Librarian Library Assistant Library Assistant Clerical Technical Services Librarian Library Assistant Clerical

SALARIES

$

n7.38

14.764.58

16,152.86 $

969.00

12.311.76

14,559.96

12.039.n

51.336.44

5.022.50

378.25

12,151.90

3.513.75

12.947.94

8,241.20

43.036.40

43.036.40

12.311.76

12.414.46

12.311.76

14.063.18

3,463.75

42.436.40

3.102.45

41.599.88

37,204.80

1.165.01

20,227.92

3,225.44

215.00

15.427.18

17.360.44

20.025.12

15.94

9.368.40

28,011.71

11.598.48

18.109.63

34.00

2.932.51

12.311.76

3.093.96

14.063.18

389.97

43.036.40

33,618.40

2.753.35

14.684.03

10.763.36

43,036.40

2.086.25

15.113.28

3,691.24

43,036.40

14.081.64

11,886.12

TRAVEL 20.00 109.00
3.661.42
344.22 674.86
309.50 373.00
29.88
12.75
159.98 626.47 282.50
21.75 509.06

See notes to the general purpose financial statements.

- 24-

$

845,441.05 $

7:.."1~34;,;;,;;:.3~9

SECTION II COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Brunswick-Glynn County Regional Library Board
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Brunswick-Glynn County Regional Library as ofand for the year ended June 30, 1996, and have issued our report thereon dated March 10, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Brunswick-Glynn County Regional Library is the responsibility of the Library's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the . Library's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-IO

This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
'"
Respectfully submitted,
t7~
Claude L. Vickers State Auditor
CLV:cm 96CRL-IO

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w" Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Brunswick-Glynn County Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Brunswick-Glynn County Regional Library as ofand for the year ended June 30, 1996, and have issued our report thereon dated March 10, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Brunswick-Glynn County Regional Library's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-UplResolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective ofwhich is the expression of an opinion on the Library's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

96CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that Brunswick-Glynn County Regional Library hact not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96CRL-40

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Brunswick-Glynn County Regional Library Board
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Brunswick-Glynn County Regional Library as ofand for the year ended June 30, 1996, and have issued our report thereon dated March 10, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
In connection with our audit of the fiscal year 1996 general purpose financial statements of the BrunswickGlynn County Regional Library and with our consideration ofthe Library's control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (OMB) Circular A-
128, "Audits of State and Local Gov~rnments", we selected certain transactions applicable to certain nonmajor
Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governmg:
Types of Services Allowed or Unallowed
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Brunswick-Glynn County Regional Libra.rYs compliance with these requirements. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Brunswick-Glynn County Regional Library had not complied, in all material respects, with those requirements.
96CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
"
Respectfully submitted,

CLV:cm 96CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members of the Brunswick-Glynn County Regional Library Board
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Brunswick-Glynn County Regional Library as ofand for the year ended June 30, 1996, and have issued our report thereon dated March 10, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management of the Brunswick-Glynn County Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the Brunswick-Glynn County Regional Library for the year ended June 30, 1996, we obtained an understanding of the internal
96ICL-3

control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters corning to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Accounting Controls (Overall)
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Brunswick-Glynn County Regional Library's financial statements and this report does not affect our report thereon dated March 10, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96ICL-3

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the Brunswick-Glynn County Regional Library Board
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Brunswick-Glynn County Regional Library as ofand for the year ended June 30, 1996, and have issued our report thereon dated March 10, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended June 30, 1996, we considered the Library's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Library's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requiremeIits applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 10, 1997.
The management of the Brunswick-Glynn County Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that
96ICL-15

transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regUlations. Because ofinherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(1) Political Activity (2) Civil Rights (3) Cash Management

(1) Types of Services Allowed or Unallowed
(2) Applicable Special Tests and Provisions

(4) Federal Financial Reports (5) Allowable Costs/Cost Principles

(3) Other Requirement Claims for Advances and Reimbursements

(6) Audit Follow-UplResolution

(7) Administrative Requirements

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1996, the Brunswick-Glynn County Regional Library had no major Federal financial assistance programs and expended 88% of its total Federal financial assistance under the following nonmajor Federal financial assistance program:

Library Services and Construction Act - Title I

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.

96ICL-15

We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute ofCertified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Library's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.

CLV:cm 96ICL-15

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

BRUNSWICK-GLYNN COUNTY REGIONAL LmRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 6632-93-04
The audit report for the year ended June 30, 1995, stated that a review of cash management procedures for the Library Services and Construction Act - Title I Program (CFDA 84.034) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report ofExpenditures and Estimated Requirements for Grant Funds," were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit tests of cash management procedures revealed no excessive cash balance accumulations by the Library.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6632-93-01
The audit report for the year ended June 30, 1995, stated that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, no improvement in adequate separation of employee duties was noted. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "I" of this report, are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6632-93-02
The audit report for the year ended June 30, 1995, noted that the management of the Brunswick-Glynn County 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.
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BRUNSWICK-GLYNN COUNTY REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30,1996
ProORYE~CmurnNTYEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6632-93-02 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 of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, 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 Fixe.d Assets Account Group.
Note: The Brunswick-Glynn County Regional Library was provided an opportunity to include pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusion in this report.
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