Three Rivers Regional Library, Brunswick, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006

THREE RIVERS REGIONAL LIBRARY
BRUNSWICK, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2006
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

THREE RIVERS REGIONAL LIBRARY - TABLE OF CONTENTS -

FINANCIAL

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

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENTOFNETASSETS

1

B

STATEMENT OF ACTIVITIES

2

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

3

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

4

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

5

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

7

G

NOTES TO THE BASIC FINANCIAL STATEMENTS

8

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

19

SUPPLEMENTARY INFORMATION

SCHEDULES OF REVENUE

2

STATE

20

3

FEDERAL

21

4

LOCAL

22

5 SCHEDULE OF SALARIES AND TRAVEL

23

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
August 22, 2007

Honorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe Board ofRegents ofthe University System of Georgia
and Director and Members ofthe Three Rivers 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 each major fund (Exhibits A through G) ofthe Three Rivers Regional Library as ofand for the year ended June 30, 2006, which collectively comprise the Library's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Three Rivers 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 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe governmental activities and each major fund ofthe Three Rivers Regional Library, as of June 30, 2006, 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.

2006ARL-41

The Three Rivers 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 19 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 Three Rivers Regional Library's basic financial statements. The accompanying supplementary information which consist of Schedules 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,
~u).-lJ-..$:.
Russell W. Hinton, CPA, CGFM State Auditor
RWH:as 2006ARL-41

THREE RIVERS REGIONAL LIBRARY

THREE RIVERS REGIONAL LIBRARY STATEMENT OF NET ASSETS JUNE 30, 2006
ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Local Federal Government Other Capital Assets Equipment Library Collections Less: Accumulated Depreciation
Total Assets
LIABILITIES Accounts Payable Deposits and Deferred Revenues
Total Liabilities NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted for Capital Projects Unrestricted Total Net Assets
Total Liabilities and Net Assets

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

172,580

813,162

41,446 8,350 465

120,808 3,324,333 -2,460,022

$ ==~2,~02:.,,;1~1,~22;;,.

$

22,996

1 182

$

24178

$

985,119

14,299 997,526

$

1996944

$==~2,~02:.,,;1~1,~22;;,.

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

THREE RIVERS REGIONAL LIBRARY STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2006

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

$ 1,063,112 $ 92,840
474,587 105,033
2,008

23,753 $

813,370 $ 165,423

-225,989 -92,840
-474,587 60,390 -2 008

Total Governmental Activities

1,737,580 $

23 753 $

978 793 $ _ _ _--'-7-"3.C..:5,.c..034;;..;._

General Revenues Allotments from Participating Governments Investment Earnings Miscellaneous

$

569,265

30,871

59,832

Total General Revenues

$ _ _ _~6~5~9~96~8_

Change in Net Assets

$

-75,066

Net Assets - Beginning of Year (Restated)

2,072,010

Net Assets - End of Year

$ =====1=9=9=6=944===

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

THREE RIVERS REGIONAL LIBRARY BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2006

EXHIBIT"C"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Local Federal Government Other
Total Assets
LIABILITIES AND FUND BALANCES LIABILITIES
Accounts Payable Deposits and Deferred Revenue
Total Liabilities FUND BALANCES
Reserved for: Capital Projects
Unreserved Undesignated Reported in: General Fund Special Revenue Fund Total Fund Balances
Total Liabilities and Fund Balances

GENERAL FUND

SPECIAL REVENUE
FUND 1883 LIBRARY
FUND, INCORPORATED

CAPITAL PROJECTS
FUND

TOTAL

$

146,925 $

619,847

41,446 8,350 465

11,356 $ 193,315

14,299 $

172,580 813,162
41,446 8,350 465

$

817 033 $

204 671 $

14 299 $ 1,036,003

$

22,996

1 182

$

24178

$

22,996

1 182

$

24178

$

792,855

$

$

792,855 $

$

817 033 $

$
204 671
204 671 $

14,299 $

14,299

792,855 204 671
14 299 $ 1,011,825

204 671 $

14 299 $ 1,036,003

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

THREE RIVERS REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2006

EXHIBIT"D"

Total Fund Balances - Governmental Funds (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

$ 1,011,825

$

120,808

3,324,333

-2,460,022

985,119

Net Assets of Governmental Activities (Exhibit "A")

$ ====1.=99=6=,9=44=

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

THREE RIVERS REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006

EXHIBIT"E"

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 Facilities Acquisition and Construction
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Transfers In Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning (Restated)

GENERAL FUND

SPECIAL REVENUE
FUND 1883 LIBRARY
FUND, INCORPORATED

CAPITAL PROJECTS
FUND

TOTAL

$ 569,265 976,008 2,785 23,753 20,494 $ 59,832
$ 1,652,137 $

4,269 $ 4269 $

$ 6,108 6108 $

569,265 976,008
2,785 23,753 30,871
59,832
1,662,514

$

995,735 $

92,840

474,587

105,033

2,008

$ 1,670,203 $

$

-18,066 $

$

497,000

$

497,000

$

478,934 $

313,921

0
$ 0 $ 4269 $

$
8 358 8,358 $ -2,250 $

995,735
92,840 474,587
105,033 2,008 8,358
1,678,561
-16 047

$ $ 4,269 $ 200,402

$ -497,000 -497,000 $ -499,250 $
513,549

497,000 -497,000
0 -16,047
1,027,872

Fund Balance - Ending

$

792,855 $

204 671 $

14,299 $ 1,011,825

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

(This page left intentionally blank)

THREE RIVERS REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006

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

$
$ 132,921 -191,940

-16,047 -59 019

Change in Net Assets of Governmental Activities (Exhibit "8")

$ ===-7=5=0=6=6

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

THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT "G"

Note 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY
REPORTING ENTITY
The Three Rivers 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 15 members which are also trustees ofthe member library which appointed them. The Library Board membership consists of2 members appointed from the Brantley County Public Library Board, 3 members appointed from the Brunswick-Glynn County Public Library Board, 2 members appointed from the Camden County Public Library Board, 2 members appointed from the Charlton Public Library Board, 2 members appointed from the Ida Hilton Public Library Board, 2 members appointed from the Long County Public Library Board and 2 members appointed from the Wayne County Public Library Board. The Library Board is without authority to determine the amount ofits funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State ofGeorgia for State and Federal 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 ofoversight responsibility for the Library's operations. The Three Rivers Regional Library is therefore determined to be a joint venture.
Blended Component Unit - 1883 Library Fund, Inc.
The 1883 Library Fund, Inc., (the "Corporation") was created by the Board ofTrustees ofthe Glynn County Library. The sole purpose ofthe Corporation is to invest funds to provide an annual source of income for the Glynn County Library. The Corporation consists of six members who are appointed by the Glynn County Library Board.
The 1883 Library Fund, Inc., is a component unit ofthe Three Rivers Regional Library and, as such the Corporation's financial activity has been blended with the Three Rivers Regional Library's basic financial statements as a Special Revenue Fund.
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 Three Rivers 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
-8-

THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions.
The Statement ofActivities 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.
Program revenues include (a) charges paid by the recipients ofgoods 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 funds:
General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library, except those resources required to be accounted for in another fund.
Special Revenue Fund - 1883 Library Fund, Incorporated for revenue sources legally restricted to expenditures for the Glynn County Library.
Capital Projects Fund accounts for financial resources including grants from Local sources to be used for the acquisition, construction or renovation of major capital facilities.
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.
-9-

THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
RESTATEMENT OF PRIOR YEAR NET ASSETS
For fiscal year 2006, the Library restated accumulated depreciation due to errors and omissions. The Library increased accumulated depreciation, $24,506. The result is a decrease in Net Assets at July 1, 2005, of$24,506. Additionally, the Library changed the presentation ofreporting its blended component unit (1883 Library Fund, Incorporated) general fund activity within the primary governments general fund to a special revenue fund in accordance with generally accepted accounting principles.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash 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. Georgia Laws OCGA 45-8-14 authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The
- 10 -

THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed 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 not include any 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 ofpurchase. 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 of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method.

- 11 -

THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings and Improvements Equipment Library Collections

Any Amount

$

5,000

$

5,000

$

5,000

Any Amount

NIA 80 years 25 to 80 years 5 to 15 years 10 years

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

Note 3: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate 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.

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,

- 12 -

THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 3: DEPOSITS AND INVESTMENTS

(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 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, 2006, the bank balances were $841,201. The amounts of the total bank balances are classified into four categories of custodial credit risk:

Category 1 - Cash that is insured (e.g., Federal Deposit 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 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.
Category 4 - Uncollateralized.

The Library's deposits are classified by custodial credit risk category at June 30, 2006, as follows:

Custodial Credit Risk Category

Bank Balance

1

$ 208,611

2

632,590

3

0

4

0

Total

$====8!a=a!4=.ll.!==20==1

CATEGORIZATION OF INVESTMENTS Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of a failure ofthe counterparty to a transaction, the Library will not be able to recover the value ofthe investment or collateral securities that are in the possession of an outside party. The Library does not have a formal policy for managing custodial credit risk.

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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT"G"

Note 3: DEPOSITS AND INVESTMENTS

Investments are classified as to custodial credit risk by the categories described below:

Category 1 - Insured or registered, or securities held by the Library or the Library's agent in the Library's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Library's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent, but not in the Library's name.

At June 30, 2006, the carrying value ofthe Library's investments was $193,315 which is materially the same as fair value. Fair value is based on quoted market prices, unless otherwise noted. The investments are classified as to custodial credit risk categories as follows:

Ti12e oflnvestment

Risk Categories

2

3

Carrying Amount

Fair Value

Debt Securities U. S. Treasuries U.S. Agencies Corporate Debt

$

41,480 $

23,525

38 745

$ 103,ZSQ $

0 $ Q $

0 $ Q $

41,480 $ 23,525 38 745
103,750 $

41,480 23,525 38 745
103,750

Other Investments Equity Securities - Domestic
Total Investments

89,565

89,565

$ 123 315 $ 123,315

Interest Rate Risk Interest rate risk is the risk that changes in interest rates ofdebt investment will adversely affect the fair value of an investment. The Library does not have a formal policy for managing interest rate risk.

Investments are classified as to investment maturity as follows:

Investment Type

Fair Value

Investment Maturity

1- 5

6 - 10

Years

Years

Debt Securities U. S. Treasuries U. S. Agencies Corporate Debt

$

41,480 $

15,443 $

26,037

23,525

9,883

13,642

38,745

11 497

27,248

Totals by Maturity

$ 103,750 $

36,823 $

66,927

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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT "G"

Note 3: DEPOSITS AND INVESTMENTS

Credit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Library does not have a formal policy for managing credit quality risk.

Investments are classified as to quality ratings as follows:

Rated Debt Investments

Fair

Quali!X Ratings

Value

AAA

AA2

AA3

Al

U. S. Agencies Corporate Debt

$

23,525 $

23,525

38 745

2 892 $

2 974 $

8 963 $

5 965

Totals by Quality Ratings $

62 270 $

26.417 $

2 974 $

8 963 $

5 965

Rated Debt Investments
U. S. Agencies Corporate Debt
Totals by Quality Ratings

Quali!X Ratings

A2

A3

BAAi

BAA3

$

2 793 $

9 189 $

2 912 $

3 057

$

2.793 $

9 189 $

2.912 $

3.057

Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The Library does not have a formal policy for managing concentration of credit risk.

Note 4: CAPITAL ASSETS

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

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

Balances July 1, 2005 (Restated)

Increases

Balances Decreases June 30, 2006

$ 120,808 3,259,576 $

132,921 $

$ 120,808

68,164

3,324,333

60,097 2,276,149
$ 1,044.138 $

9,352 182,588
-52,019 $

68,164

69,449 2,390,573

0 $ 285,119

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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT "G"

Note 4: CAPITAL ASSETS

Current year depreciation expense by function is as follows:

Public Services Note 5: RESTRICTED ASSETS

$======1===91.....9==4==0

Contributions from local governments restricted for capital improvements are reported as restricted assets in the Statement of Net Assets because their use is limited by applicable contractual agreements or statutory provisions. Restricted assets at June 30, 2006, were as follows:

Capital Projects

Restricted Cash and Cash Equivalents: Capital Acquisitions

$

14,299

Note 6: INTERFUND TRANSFERS

Interfund transfers for the year ended June 30, 2006, consisted of the following:

Transfer to

Transfers From Capital Projects

General Fund

$======4===97-,0==0==0

Transfers are used to move excess local funding from the Capital Projects Fund back to the General Fund.

Note 7: 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 and acts of God.

The Library has obtained commercial insurance for risk of loss associated with torts, assets, job related illness or injuries to employees, windstorm and hail. 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 except for windstorm and hail. In addition, the Library has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years.

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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2006

EXHIBIT "G"

Note 7: RISK MANAGEMENT

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

Position Covered

Amount

Library Treasurer Library Assistant Treasurer All Employees

$

30,000

$

30,000

$

30,000

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 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2006 2005 2004

100% 100% 100%

$

91,423

$

92,688

$

91,251

Note 9: AFFILIATED LIBRARIES DISCLOSURE

The Brantley County Public Library, Brunswick-Glynn County Public Library, Camden County Public Library, Charlton Public Library, Ida Hilton Public Library, Long County Public Library, St. Mary's Public Library and Wayne County Public Library are legally separate, tax exempt organizations who participate in shared activities with the Three Rivers Regional Library. These affiliated libraries do not meet the criteria for reporting as either a component unit or related entity of the Three Rivers Regional Library.

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THREE RIVERS REGIONAL LIBRARY GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2006

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 Facilities Acquisitions and Construction
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Other Sources
Net Change in Fund Balance
Fund Balance - Beginning

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

$

542,109 $

337,191 $

569,265

946,390

976,007

976,008

8,350

2,785

27,050

24,050

23,753

7,000

7,000

20,494

35,000

32150

59,832

$

1,557,549 $

1,384,748 $

1,652,137

$

975,418 $

998,218 $

995,735

90,946

112,141

92,840

464,903

275,580

474,587

102,890

141,314

105,033

1,967

7,750

2,008

8187

$

1644311 $

1,535,003 $

1,670,203

$

-86,762 $

-150,255 $

-18,066

497 000

$

-86,762 $

-150,255 $

478,934

514,323

514,323

313,921

Fund Balance - Ending

$

427 561 $

364,068 $ ===7=9=2=,8=55.,.

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.

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THREE RIVERS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006
AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Library Materials Talking Book Centers Maintenance and Operations

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

591,353

126,076

93,156

165,423

$ =======97=6=,0=0=8

See notes to the basic financial statements.

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THREE RIVERS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2006
AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Vacation Reading Program

SCHEDULE "3"
GOVERNMENTAL FUND TYPE GENERAL FUND
$=====2:!:7=8=5

See notes to the basic financial statements.

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THREE RIVERS REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2006
LOCAL SOURCES Boards of Education Brantley County Camden County Charlton County Glynn County Long County McIntosh County City Government Brunswick County Governments Boards of Commissioners Camden Charlton Glynn Long County Libraries Charlton Long McIntosh Wayne

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

2,426

4,628

1,633

2,300

817

944

21,420

7,969 686
285,000 713
53,887 33,596 55,198 98 048

$ ========56=9=,2=6=5

See notes to the basic financial statements.

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THREE RIVERS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2006

SCHEDULE "5"

NAME
Blanton, Brooks, Brown, Carlo, Cody, Coleman, Darby, Dela-Espriella, Douglas, Eastman, Estrada, Fernandez, Gibson, Goodloe, Griffis, Harris, Haven, Hildebrand, Johnson, Kent, King, Kirkland, Knapp, Lang, Lasson, Lee, Legett, Leonard, Maney, McIntyre, McKenzie, Miller, Montgomery, Moon, Morgan, O'Quinn, Parker, Ransom, Routsong, Sapp, Scott, Sellers, Sharp, Shinnick, Smith, Spivey, Taylor, Thompson, Vinson, Wayne, Wendt, Williams, Williamson, Wright,

Carolyn Christina Angelia Helen Sara Deborah Jim Salina Paul Gary Cesar Agustin Joseph Wylie Angela Lateesia Karen Jane Shirley Symone Rosa Megan Carolyn Nellie Vivian Katie Marvin Lisa Paulette Venus Betty Laura Dorinda Robert Teena Diane Barbara Betty Scott Windy Karla Mary Wanda Joseph Ceil Krista Marian Brittney Patricia Virginia James Shannen Edna Susan

Accruals June 30, 2005

Totals per Report

See notes to the basic financial statements.

TITLE CATEGORY
Clerical Clerical Children's Assistant Clerical Reference Librarian Technical Services Assistant Director Clerical Clerical Clerical Clerical Clerical Custodian Clerical Clerical Clerical Technical Services Librarian Affiliate Coordinator Librarian Bookmobile Assistant Clerical Clerical Clerical Adult Services Librarian Clerical Clerical Clerical Affiliate Manager Affiliate Manager Clerical Clerical Circulation Assistant Clerical Library Assistant Clerical Library Assistant Bookkeeper Affiliate Manager Talking Book Librarian Children's Librarian Clerical Clerical Bookmobile Assistant Clerical Assistant Director Circulation Assistant Clerical Library Assistant Clerical Clerical Clerical Regional Reference Librarian Clerical Affiliate Manager Clerical

SALARIES

TRAVEL

$

17,000

21,769

14,855

16,958

61,064

16,958

18,533

621

2,217

16,958

16,664

7,168

5,695

12,587

1,674

2,112

54,321

63,179 $

63

14,855

22,880

327

13,728

418

59,304

1,649

6,820

14,855

520

10,382

1,931

11,291

15,000

6,206

5,884

15,267

28,204

11,243

32,783

894

9,092

57,869

51,121

924

14,855

1,286

6,191

11,333

70,879

1,560

45,836

450

3,120

3,783

618

6,293

14,855

59,304

1,257

3,832

28,476

16 958

$

1,027,605 $

7,124

-188

$

1027417 $

7124

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