Three Rivers Regional Library, Brunswick, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007

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

THREE RIVERS REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
January 26, 2009

Honorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe Board of Regents of the 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 ofthe governmental activities and the major funds (Exhibits A through G) of the Three Rivers Regional Library as of and for the year ended June 30, 2007, which collectively comprise the Library's basic financial statements as listed in the table of contents. These financial statements are the responsibility 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.
As discussed in Note 2 to the basic financial statements, management has recorded capital assets additions and deletions of its affiliated libraries in governmental activities even though the expenditures are not recorded on the Library's fund statements and, accordingly, has also improperly recorded current year depreciation expense on those capital assets. Accounting principles generally accepted in the United States of America require that capital assets be capitalized and depreciated for the reporting entity. The amount by which this departure would affect the assets, net assets, and expenses of the governmental activities was not reasonably determined.
2007ARL-41X

In our opinion, except for the effects of not properly recognizing capital assets and depreciation expense in the governmental activities as described in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities ofthe Three Rivers Regional Library, as ofJune 30, 2007, and the changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In addition, in our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe major funds ofthe Three Rivers Regional Library, as ofJune 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
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 ofSchedules 2 through 5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
~~(~~~~ State Auditor
RWH:as 2007ARL-41X

THREE RIVERS REGIONAL LIBRARY

THREE RIVERS REGIONAL LIBRARY STATEMENT OF NET ASSETS JUNE 30, 2007
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
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

$

518,984.25

817,896.56

33,329.09 4,400.00
60,328.77

147,098.00 3,413,423.32 -2,640,085.69

$ ===2,=35=5=,3=7=4.=30=

$ _ _ _6=-=3=,5=3=2-=93;:;..

$

920,435.63

4,481.91 1,366,923.83

$ _ _:.J2,=c29:..;1:.,;,8;.:4.:.;1.:;:.37.:..

$ ===2,=3=55:!i,3=7=4=.3=0

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, 2007

EXHIBIT"B"

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR

GRANTS AND

SERVICES

CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

GOVERNMENTAL ACTIVITIES

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

$ 1,181,710.51 $ 118,603.20 576,358.99 110,668.06 26 491.63

Total Governmental Activities

$ 2,013,832.39 $

General Revenues Allotments from Participating Governments Investment Earnings Miscellaneous

24,520.28 $

755,336.98 $ 105,430.67 90,333.01 167,282.00

====="==== 24,520.28 $

1,118,382.66 $

$

-401,853.25 -13,172.53
-486,025.98 56,613.94 -26 491.63
-870,929.45
921,679.60 42,388.63
201 756.83

Total General Revenues

$

1,165,825.06

Change in Net Assets

$

294,895.61

Net Assets - Beginning of Year

1 996 945.76

Net Assets - End of Year

$

2,291,841.37

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, 2007

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 Capital Projects 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

$ 238,792.55 $ 606,415.19
33,329.09 4,400.00
60,328.77

11,466.52 $ 268,725.18 $ 211,481.37

518,984.25 817,896.56

33,329.09 4,400.00
60,328.77

$ 943,265.60 $

222,947.89 $ 268,725.18 $ 1,434,938.67

$ 63,532.93 53,552.16
$ 117,085.09

$

63,532.93

53,552.16

$ 117 085.09

$ 826,180.51 $
$ 826,180.51 $

$ 4,481.91 $

4,481.91

222,947.89

264,243.27

826,180.51 264,243.27 222,947.89

222,947.89 $ 268,725.18 $ 1,317,853.58

$ 943,265.60 $

222,947.89 $ 268,725.18 $ 1,434,938.67

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 STATEMEN.T OF NET ASSETS JUNE 30, 2007

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
Some of the Library's Fines and Fees Revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures.

$ 1,317,853.58

$ 147,098.00 3,413,423.32 -2,640,085.69

920,435.63

53,552.16

Net Assets of Governmental Activities (Exhibit "A")

$ 2,291,841.37

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, 2007

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
Fund Balance - Ending

GENERAL FUND

SPECIAL REVENUE FUND
1883 LIBRARY
FUND, INCORPORATED

CAPITAL PROJECTS
FUND

TOTAL

$ 658,479.60 1,069,356.52 49,026.14 24,520.28 17,564.10 $ 148,204.67
$ 1,967,151.31 $

$ 23,276.42

263,200.00 $ 1,548.11

921,679.60 1,069,356.52
49,026.14 24,520.28 42,388.63 148,204.67

23 276.42 $ 264,748.11 $ 2,255,175.84

$ 1,106,705.69 $ 118,603.20 576,358.99 110,668.06 26,491.63
$ 1,938,827.57 $
$ 28,323.74 $

0.00 $

$ 10,321.88

1,106,705.69 118,603.20 576,358.99 110,668.06 26,491.63 10,321.88

0.00 $ 10,321.88 $ 1,949,149.45

23,276.42 $ 254,426.23 $ 306,026.39

$

5,000.00

$

$

5,000.00 $

$ 33,323.74 $

792,856.77

-5 000.00

$

5,000.00

-5,000.00

-5 000.00

$

0.00

18,276.42 $ 254,426.23 $ 306,026.39

204 671.47

14,298.95 1,011,827.19

$ 826,180.51 $

222 947.89 $ 268,725.18 $ 1,317,853.58

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, 2007

EXHIBIT"F"

Total Net Change in Fund Balances - Governmental Funds (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 Capital Outlay over Depreciation Expense
Fines and Fees Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the Governmental Funds.

$ 306,026.39

$ 124,712.91 -189,395.85

-64,682.94 53,552.16

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

$ 294,895.61

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, 2007

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 County 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 of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal flow through funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The 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 of Trustees 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 of the overall Library. Eliminations have been made to minimize the double counting of
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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

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 ofthe 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 ofwhen 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.
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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

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 management of Three Rivers Regional Library chooses not to include the affiliated libraries information in the audit report. However, the capital assets listing as presented for audit includes the library collection ofthe affiliated libraries. Management does not have a way to identify prior year depreciation amounts for the library collection ofthe Three Rivers Regional Library. To conform to generally accepted accounting principles, capital assets and depreciation expense of the affiliated libraries should not be included in the basic financial statements, unless the corresponding fund expenditure is included in the financial statements.
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.
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. Official Code ofGeorgia Annotated Section 45-8-14 authorizes the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
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 Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In
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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
The Library does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks.
RECEIVABLES
Receivables consist ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, fines and fees from patrons and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements cl,o include amounts which would necessitate the need for an allowance for uncollectible receivables.
CAPITAL ASSETS
Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time 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 ofthe assets is not capitalized. Depreciation is computed using the straight-line method.
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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

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 $ 5,000.00 $ 5,000.00 $ 5,000.00
Any Amount

NIA up to 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.

NET ASSETS

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

Invested in capital assets - This represents the Library's total investment in capital assets.

Restricted net assets - These represent resources for which the Library is legally or contractually obligated to spend resources for capital projects in accordance with restrictions imposed by external third parties.

Unrestricted net assets - Unrestricted net assets represent resources derived from grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the general operations ofthe Library, and may be used at the discretion ofthe Library to meet current expenses for those purposes.

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 ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. At June 30, $164,243.27 of deposits were not secured by surety bond, insurance or collateral as specified above. The Library is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the Library's deposits.

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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "G"

Note 3: DEPOSITS AND INVESTMENTS
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 ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(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 AtJune 30, 2007, the bank balances were $1,173,847.81. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk:
Category 1 - Uncollateralized Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's
trust department or agent but not in the Library's name.
The Library's deposits are classified by custodial credit risk category at June 30, 2007, as follows:

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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 3: DEPOSITS AND INVESTMENTS

Custodial Credit Risk Category

Bank Balance

1

$ 164,243.27

2

698,138.02

3

0.00

Total

$ 862,381.29

CATEGORIZATION OF INVESTMENTS The Library's investments as ofJune 30, 2007, are presented below. All investments are presented by investment type and debt securities are presented by maturity.

Investment Type

Fair Value

Investment Maturitv

1- 5

6-10

Years

Years

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

$ 37,103.87 $ 13,898.42 $ 23,205.45

21,617.73 28,352.94

9,822.30

21,617.73 18,530.64

$ 87,074.54 $ 23,720.72 $ 63,353.82

Other Investments Bond Mutual Funds Equity Securities - Domestic

16,404.04 108,002.79

Total Investments

$ 211A81.37

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

Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofthe failure ofthe counterparty to a transaction, the Library will not be able to recover the value of the 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.

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.

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THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "G"

Note 3: DEPOSITS AND INVESTMENTS

The investments subject to credit quality risk are reflected below:

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

Fair Value
$ 21,617.73 28,352.94
$ 422:ZQ6.:Z

AAA

AA2

Quality Ratings

AA3

Al

$ 21,617.73 3,056.37 $ 2,999.10 $ 9,054.36 $ 2,939.49

$ 2H:Z4 IQ $ 2 222 IQ $ 2 Q54 36 $ 2 232 42

A2

A3

$ 3,181.65 $ 7,121.97 $ 3 181 65 $ :Z 121 2:Z

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. More than 5% of the Library's investments are in Federal National Mortgage Association. This investment is 5% of the Library's total investments.

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, 2006

Increases

Decreases

Balances June 30, 2007

$ 120,808.00 $ 26,290.00

3,324,333.14

98,422.91 $

$ 147,098.00 9,332.73 3,413,423.32

69,449.18 2,390,573.39

8,951.50 180,444.35

$ 285,118.52 $ -64,682.94 $

78,400.68 9,332.73 2,561,685.01
0,00 $ 920,435.63

Current year depreciation expense by function is as follows:

Public Services

$ 189,395.85

Note 5: INTERFUND TRANSFERS

Interfund transfers for the year ended June 30, 2007, consisted of the following:

- 15 -

THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "G"

Note 5: INTERFUND TRANSFERS

Transfer to

Transfers From Special
Revenue Fund

General Fund

$ 5,000.00

Transfers are used to move funding from the Special Revenue Fund to the General Fund for the purchase of library books.

Note 6: 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 ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees, windstorm and hail. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. 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. The Library has not experienced any losses related to this risk iJ:?. the past three years.

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

Position Covered

Amount

Library Treasurer Library Assistant Treasurer All Employees

$ 30,000.00 $ 30,000.00 $ 30,000.00

Note 7: SIGNIFICANT CONTINGENT LIABILITIES

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

- 16 -

THREE RIVERS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2007 2006 2005

100% 100% 100%

$ 93,146.05 $ 91,423.00 $ 92,688.00

Note 9: AFFILIATED LIBRARIES DISCLOSURE

The Brantley County Public Library, Brunswick-Glynn County Public Library, Camden County Public Library, Charlton County 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.

- 17 -

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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, 2007

SCHEDULE "1"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology
Total Expenditures
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

$

637,191.00 $

637,191.00 $

658,479.60

1,062,264.00

1,062,264.00

1,069,356.52

49,026.14

30,000.00

30,000.00

24,520.28

15,000.00

15,000.00

17,564.10

63,000.00

63,000.00

148,204.67

$

1,807,455.00 $

1,807,455.00 $

1,967,151.31

$

1,031,296.75 $

1,031,296.75 $

1,106,705.69

110,448.78

110,448.78

118,603.20

536,732.15

536,732.15

576,358.99

103,059.22

103,059.22

110,668.06

25,918.10

25,918.10

26,491.63

$

1,807,455.00 $

1,807,455.00 $

1,938,827.57

$

0.00 $

0.00 $

28,323.74

5,000.00

$

0.00 $

0.00 $

33,323.74

792,856.77

792,856.77

792,856.77

Fund Balance - Ending

$

792,856.77 $

792,856.77 $ ===82=6='1=8=0.=5=1

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.

- 19 -

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

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

680,010.40

131,006.92

91,057.20

167,282.00

$ ==1=,0=6=9=,3=56=.5===2

See notes to the basic financial statements.

- 20 -

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2007
AGENCY/FUNDING GRANTS Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program Vacation Reading Program

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

44,626.14

4,400.00

$ ===4=9=0=2=6=.1=4

See notes to the basic financial statements.

- 21 -

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2007

SCHEDULE "4"

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 St. Simons Wayne

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

2,425.92

4,627.92

1,632.96

2,300.00

816.96

943.92

21,420.00

$

2,425.92

4,627.92

1,632.96

2,300.00

816.96

943.92

21,420.00

7,969.00 686.00 $
285,000.00 713.00
57,492.18 40,211.14 54,363.92 68,532.69 109 343.99

263,200.00

7,969.00 263,886.00 285,000.00
713.00
57,492.18 40,211.14 54,363.92 68,532.69 109,343.99

$

658,479.60 $

263,200.00 $ ===92=1=6=7=9.=60=

See notes to the basic financial statements.

- 22 -

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2007

SCHEDULE "5"

NAME
Adams, Askew, Blanton, Brown, Bunch, Carlo, Chung, Clark, Cody, Coleman, Darby, Davis, Dubberly, Eastman, Estrada, George, Haven, Hersey, Hildebrand, Jackson, Johnson, Johnston, Kapper, Kent, King, Kirkland, Knapp, Lang, Lassen, Lee, Maney, McIntyre, McKeon, Miller, Montgomery, Moon, Morgan, Murray, O'Quinn, Parker, Palko, Petty, Ransom, Routsong, Sapp, Sharp, Shinnick, Smith, Smith, Street, Taylor, Vinson, Wayne, Wendt, Williamson, Wright, Wright,

Jody Melissa Carolyn Angelia Lisa Helen Donovan Brenda Sara Deborah Dewey Brenda Lisa Gary Cesar Lentoya Karen Maureen Jane Diane Shirley Richard Kathryn Symone Rosa Megan Carolyn Nellie Lori Katie Paulette Venus Debbie Laura Dorinda Robert Teena Allison Diane Barbara Kristen Melinda Betty Scott Windy Wanda Joseph Ceil Trina Faye Marian Patricia Virginia James Edna Rita Susan

Totals per Report See notes to the basic financial statements.

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

SALARIES

TRAVEL

$

3,343.42

520.00

18,587.88

16,329.03

701.25

1,753.84

4,003.73

666.00

57,817.08 $

60.80

17,730.96

6,784.56

406.87

14,584.94

17,730.96

14,294.80

22.00

5,255.68

56,205.24

29,266.70

65,062.32

764.29

3,690.80

15,628.11

3,799.77

14,889.00

23,677.26

363.77

18,433.37

5,016.00

61,362.66

1,052.32

6,792.89

17,468.05

1,407.00

12,531.75

15,444.03

3,531.00

7,803.90

15,587.89

30,470.07

11,960.52

48.02

839.46

33,570.06

1,076.43

9,183.36

11,060.00

798.56

61,073.42

45,054.88

802.38

15,628.11

11,563.68

76,633.80

1,833.98

48,988.74

111.76

9,417.00

13,786.80

3,781.63

6,916.00

14,309.43

61,362.66

210.31

28,546.73

9,009.06

17 730.96

$

t079,793.67 $ ==6='=34=6=.0=6

- 23 -

SECTION II FINDINGS AND QUESTIONED COSTS

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

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

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

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

Any identified deficiencies in internal controls that we did not consider to be significant deficiencies and/or material weaknesses have been communicated to management and those charged with governance within a separate management letter dated January 26, 2009. Internal control deficiencies identified during the course of this engagement that were considered to be significant deficiencies and/or material weaknesses are presented below:

EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-6632-07-01

Condition:

The accounting procedures of the Three Rivers Regional Library were insufficient to provide for adequate controls over expenditures.

Criteria:

The Regional Libraries' management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. Such internal controls would limit any one individual's access to both physical assets and the related accounting records.

Questioned Cost: NIA

- 1-

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-6632-07-01

Information:

Expenditures/Liabilities/Disbursements
Procedures were not in place to ensure that purchase orders were completed and approved in accordance with Library policy. A review ofsixty-eight expenditure vouchers revealed that thirty-seven vouchers contained no purchase order and no indication of administrative approval prior to payment.

There was also a lack of separation of duties involving key functions ofinternal control over book purchases, where the responsibilities of purchasing, receiving and cataloging of books were not adequately separated.

Cause:

The deficiencies occurred because of management's failure to implement adequate controls over expenditures, including adequate separation ofduties.

Effect:

Without satisfactory accounting controls and procedures in place, the Library could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls could impact reporting of its financial position and results of operation.

Recommendation:

The Library should review the accounting procedures in place and design and implement procedures relative to the above control categories to strengthen the internal controls over the accounting functions.

EMPLOYEE COMPENSATION Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-6632-07-02

Condition:

The Three Rivers Regional Library failed to implement procedures to ensure that salary payments were accurately calculated and that Board approval was documented.

Criteria:

The Library's management is responsible for designing and maintaining internal controls that provide reasonable assurance that all employees are paid according to approved salary schedules and that documentation is maintained to support the salary payments.

Questioned Cost: NIA

-2 -

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

EMPLOYEE COMPENSATION Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-6632-07-02

Information:

Employee Compensation During salary testing, documentation of Board approval was unavailable for fifteen of the thirty employees tested. The Library Board appeared to review salaries as a whole, but not each individual employee. Therefore, the Library was unable to provide the auditor with a Board approved salary scale for employees that were paid with local funds.

Testing also revealed that four employees were incorrectly paid. The four employees' salaries were understated in total by $987.18.

Cause:

The deficiencies were a result ofmanagement's failure to adequately monitor and implement procedures to ensure payments made to employees were based on an approved rate of pay that was adequately documented in the employee's personnel file.

Effect:

Errors and/or irregularities may occur and not be detected in a timely manner.

Recommendation:

The Library should implement internal controls to ensure that Board approved salary schedules and pay rates are documented and on file at the Library. The Library should also implement controls to ensure that all employees are paid correctly.

CAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-6632-07-03

Condition:

The Library failed to adequately maintain and report Three Rivers Regional Library's capital assets records separate from those ofthe affiliate Libraries.

Criteria:

The Library's management is responsible for designing, implementing and monitoring internal controls to ensure that capital assets are properly recorded, maintained, and documented in accordance with generally accepted accounting principles

Questioned Cost: NIA

-3-

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

CAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-6632-07-03

Information:

A review of the Library's Capital Assets policies and procedures and the related Capital Assets records disclosed the following deficiencies:
The capital assets report obtained from the PINES System was used to compare the fiscal year 2007 beginning Library collections balance to the capital assets listing provided for audit. This comparison revealed that the library collections at July 1, 2006, were misstated. The affiliate Libraries collections had been included in beginning capital assets amount which caused a misstatement to the financial statements. Accumulated depreciation on the affiliate libraries collections was also included in the listing provided for audit.

The Library also had 693 items purchased during the year with donated money that were not given a value when added to the Library collections in the PINES System.

Cause:

The Library's management failed to implement satisfactory controls to record and maintain its capital assets records from those of the affiliate libraries.

Effect:

Without satisfactory accounting controls and procedures in place, the Library could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls could impact the reporting ofits financial position and results of operations.

Recommendation:

The Library should review its capital assets records and make appropriate adjustments to ensure that the capital assets records conform to generally accepted accounting principles. The Library should implement appropriate controls to ensure the amounts recorded on the general ledger are accurate, sufficiently documented and contain balances only for the Three Rivers Regional Library.

FINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-6632-07-04

Condition:

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

-4 -

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

FINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-6632-07-04

Criteria:

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

Questioned Cost: NIA

Information:

The Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the Library's financial statements. Due to a lack of adequate controls over the financial statement preparation and reporting process, the auditors had to prepare the appropriate fund level and entitywide level financial statements from the Library's general ledger.

Cause:

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

Effect:

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

Recommendation:

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

-5-

SECTION III MANAGEMENT'S RESPONSES

THREE RIVERS REGIONAL LIBRARY SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2007
Three Rivers Regional Library's responses to the findings described below were not audited and accordingly, we express no opinion on them.
Finding Control Number: FS-6632-07-01
We concur with this finding. Procedures will be developed that specify when purchase orders must be used. Procedures for payment ofinvoices will be revised to require approval ofall invoices by the Director prior to payment by the Business Manager. We plan to have the Technical Services Department receive books ordered rather than the ordering librarian to help segregate duties.
Finding Control Number: FS-6632-07-02
We concur with this finding. A salary schedule with steps will be developed by job title. Employees will be assigned to a step depending on length of time in the position. Board will approve salary schedule. Annually, a letter will be placed in each employee's personnel file indicating approved rate of pay.
Finding Control Number: FS-6632-07-03
We concur with this finding. We will estimate the holdings of affiliate libraries and reduce the capital asset balance by this amount. In the future, affiliate holdings will not be included in capital asset balances. In the future, donated assets will be added to the Library's collection at the fair market value at the time of donation.
Finding Control Number: FS-6632-07-04
We concur with this finding. When GASB 34 statements are required in the future, we will produce the statements from our new accounting software which has this capability.
Contact Person: Leslie Jones, Director Phone: (912) 267-1212 Fax: (912) 267-9597 E-mail Address: ljones@trrl.org

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