Cherokee Regional Library, Lafayette, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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,, STATE Of'GEORGIA.

''i:>EPARTMENT ,Qf AUDITS' AND ACCO'UNTS '

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CHERc;>~EE REGIONAL. U.BR~Rr-

.. LAfAYEJTE. GEORGIA - ,r

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REPORT ON.AUDIT. "

OF THE'FINANCIAL STATEMENTS .--

FOR THE FISCAL YEAR ENDED JUNE 30, 2002

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Russell'W..

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State Au.dltor

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CHl~ROKEE RLGIONAL LIBRARY - TABLE OF CONl FNTS -

SECTION I

FINANCIAL

INDEPENDEN I AUDITOR'S COMBINED REPORT ON GEN[RAL-PURPOSE FINANCIALS I ATEMENT~ AND SUPPLEMENTARY INFORMAl ION

CXHIRITS

GFNERAL-PURPOSI:. flNANCIAL STATEMEN rs

COMBINED STAl EMENTS -OVERVIEW

A

COMBINED BALAI\C[ SHEET

ALL FlJND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMLNT OF REVENUf.S, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNM[Nl AL FUND TYPES

4

C

COMBINED S l'ATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE Fl.JNDS

5

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL flNANCIAL INFORMATION

SCHl:.Dt..:LCS

SCHEDULE OF REVENUE

STATE

14

2

FEDERAL

15

3

LOCAL

16

4 SCHEDULE OF SALARIES AND TRAVEL

17

SECTION II FINDINGS AND QUESTIONED COSTS SCHEDUI E OF FINDINGS AND QUESTIONED COSTS

Sl:.CTION I ~INANCIAL

RV,M.I I \\', HIN ION
STATF AUDI TOH
(.i:,.SJ r,sc 217.c

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJ~hmgton Street 5 W Sullc 214 At!JnLJ Gcorg1.1 JO~ ~4-XJOO
Augm,t 7. 2003

Honorable Sonny Perdue, GoYemor Members of the General A,,embly Member- of the Board of Regents of the Umvers1ty Sy:,tcm of Georgia
and Director and Member:, of the Cherokee Regwnal L1 brary Board
INDCPF-,NDENT AUDITOR'S COMBINED RF-.PORT ON GENERA.L-PURPOSE FINANCIAL STA fl:MENTS AND SUPPLEMF:-.JTARY INFORMATION
Lad1e, and Gentlemen
We have audited the accompanying general-purpose financial ,tatements of the Cherokee Regional I Ibrary. a:, of and for the year ended June 30, 2002. as listed in the table of contents I"hese generalpurpose financial statements are the respons1b1lity of the Cherokee Regwnal L1hrary's management Our respons1h1hty 1s to express an opinion on these general-purpo,c financial statement, hased on our audit
We conducted our audll in accordance with auditing :,tandard:, generally accepted in the Umted States of l\menca Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpo,e financial Matements are free ofmatenal misstatement An audit mclude:, examining. on a test ha~1:,, evidence :,upporting the amounts and disclosures m the financial statements An audit also mclude, assessmg the aecountmg pnnc1ples used and ,igmlicant c:,t1mates made hy management. a:, well a, evaluating the overall financial statement pre,entallon \\'c believe that our audit provide:, a reasonable ba,1s for our opm1on
A, described m the notes to the gencral-purp(lSC financial statement:,, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion. vanes in some respect from generally accepted accounting pnnc1plc, Thi:, variance 1s descnhed as follows
The general-purpose financial statements ofthe Library did not contam a General hxcd Assets Account Group to account for property. cqmpment and ine,hau,tible collect10ns and books owned hy the Library which ,hould be mcluded to conform to generally accepted accounting pnnc1ples
2002ARL-42

The aggregate effect on the general-purpose financial statements ofth1s vanancc or om1ss10n has not been deterrmned. but 1s believed to be material
In our opm10n, except for the effects on the general-purpose financial statements of the matters referred to m the third paragraph, the general-purpo~e financial statements referred to above present fairly. in all material respects. the financial pos1t10n of the Cherokee Regional Library as of June 30. 2002, and the results of its operations for the year then ended, in conforrmty with accounting princtplcs generally accepted m the Umted States of America
Our audit wa~ performed for the purpose of form mg an opm10n on the general-purpo~ financial statements of the Cherokee Reg10nal Library taken as a whole The accompanying financial schedules (Schedules I through 4), as listed m the table of contents. arc presented for purpo~e\ of add1t10nal analysis and are not a rcqmred part of the general-purpose financial statements of the Cherokee Regional Library Such mformat1on ha~ been subJected to the auditing procedures apphed m the audit of the general-purpose financial statements and m our opinion, except for the effects of the matter discussed in the third paragraph, such information 1~ fairly stated.mall material respects, in rclatwn to the general-purpose financial statements taken a~ a whole
A copy ofth1s report has been filed as a permanent record m the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Sectwn 506-24

RWHas 2002ARL-42

State Auditor

CHEROKEE REGIONAL LIBRARY

CHEROKEE REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2002

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Amount to be Provided In Future Years
for Payment of Compensated Absences
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 186,470 18 $

000

59,436 29

2,342 83

$ 248,249 30 s~==_o_oo_

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Deferred Revenue Compensated Absences
Total Llab1lrt1es
FUND EQUITY
Fund Balances Unreserved Undes1gnated

$

33813

s

33813

241 911 11 $ _ _ _o=--=coo,_

Total L1ablht1es and Fund Equity

$ 2481249 30 $~~=0===00=

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

EXHIBIT "A"

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS (Memorandum Onl~l JUNE 30, 2002 JUNE 30, 2001

$

186,470 18 $ 164,194 21

59,436 29

49,156 45

2,342 83

$ 30,029 92

30,029 92

27,15612

$ 30,029 92 $

278,279 22 $ 240,506 78

$ $ 30,029 92 $ 30,029 92 $

338 13 $ 30,029 92 30,368 05 $

5,025 29 9,18655 27,15612
41,367 96

247,911 17

199,138 82

$ 30,02992 $

278,279 22 $ 240,506 78 -

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CHEROKEE REGIONAL LIBRARY

EXHIBIT "B"

COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30 2002

REVENUES
Stale Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Pubhc Ser.1ices Technical Services AdmmtStrallon Maintenance and Operebons lnforme~oo Technology
Total Expenditures
Excess of Revenues over (under) Expenchtures
FUND BALANCE JULY l

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS
!Memorandum On!),) YEAR ENDED
JUNE 30 2002 JUNE 30, 2001

$ 405,401 55 $
343 398 32 11577715

$ 80,257 55

$ 864 577 02 $ BO 257 55 $

405,401 55 $ BO 257 55
343 398 32 11577715
944,834 57 $

371,669 17 11,01345
352 449 50 79 526 44
814 658 56

s 472 72560 $
1 381 82 278 807 64
59 762 18 3 127 43

16 502 74 $ 23,820 81 39,934 00

$ 815,804 67 $ 80 257 55 $

$ 48 772 35 $

000 $

199,138 82

000

469,228 34 S
1,381 82 302,628 45
59,76218 43 061 43
896 062 22 $
48 772 35 $
199138 82

479 373 59 78911
273 655 05 56 645 64 51 788 36
862 251 75
--47 593 19
246 732 01

FUND BALANCE JUNE 30

$ 24791117$

000 $

247,911 17 $ _ _.1;;;99aa1..3=B.B._2

The notes to the general-purpose financial statements are an Integral part of this statement -4 -

CHEROKEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BURGET AND ACTUAL
GENERAL AND SPECIAL REVENUE FUNDS
JUNE 30 2002

EXHIBIT c

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical SeMces Admmtstrat1on Maintenance end Operahons Information Technology
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BAL.e,NCE JULY 1 2001
FUND BALANCE JUNE 30 2002

GENERAL FUND

BUDGET

ACTUAL

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 404,401 54 $ 405,401 55

342,582 25 75 526 76
s 822,510 55 $

343,398 32 11577715
864,577 02

$ 77 071 00 $ 80 257 55 $ 77 071 00 $ 80,257 55

$ 492 268 00 $ 2 470 00
303 070 52 65 360 93 12 786 91

472,725 60 1 381 82
278 807 64 59,762 18
3,127 43

$ 875 956 36 $ 81580467

$ -53 445 81 $ 48,772 35

152164 70

19913882

$ 9871889S 24791117

$ 14 604 00 $ 22 533 00

16,502 74 23,820 81

39 934 00

$ 77 071 00 S

s

0 00 S

0 00

39 934 00 80 257 55
000 000

$ ooo s____o_o~o

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

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CHEROKEE REGIONAL LIBRARY

EXHIBll "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS-

JUNE 30, 2002

Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
lbe Cherokee Reg10nal 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 With the exception ofthe departure from generally accepted accounting pnnc1ples disclosed in these notes. the financial statements of the Library have been prepared m conformity with generally accepted accounting principles as apphed to governmental units and unless otherwise disclosed m these notes. the financial ,tatements present all fund types and account groups of the Library
The Library Board consists of eight members. three members appomted from the Dade County Public Library Board and five members appointed from the LaFayette - Walker County Public Library Board The Library Board is without authonty to determme the amount of its fundmg. except by subm1ss10n of budget requests to local governmental units from wluch the Library receives support and to the State of Georgia for State and Federal fundmg Membership in the Library and part1c1pat1on in library services 1s at the discretion of each part1c1pating governmental agency. The Library Board has the power to designate management. the power to rctam unreserved fund balances of local and other funds for contmued operat10ns and is the lowest level of oversight respons1b1lity for the Library's operat10ns
While the LaFayette - Walker County Pubhc Library Board appomts a majority of the Cherokee Regional Library's Board, the LaFayette - Walker County Pubhc Library Board 1s neither able to impose its will upon the Library nor 1s there a financial benefit/burden relat10nsh1p between the two boards as defined by Governmental Accountmg Standards Board The Cherokee Reg10nal Library 1s therefore considered to be a related organization of the LaFayette - Walker County Public Library Board
FUND ACCOUNTING
The Library uses funds and an account group to repon on its financial pos!llon and the results of its operat10ns Fund accountmg 1s designed to demonstrate legal compliance and to aid financial management by segregating transacuons related to certain governmental funct10ns or actlv!lles
A fund 1s a separate accounting enl!ty with a self-balancmg set of accounts. An account group is a financial reponmg device designed to provide accountab1hty for ccnain assets and habihnes that are not recorded m the funds because they do not directly affect expendable available financial resources
General Fll,ed Assets, which mcludes the Library's mexhaustiblc collections and books, are recorded as expenditures m the vanous funds at the time of purchase. A General Fixed Assets Account Group 1s not presently maintamed by the Library To conform to generally accepted accountmg pnnc1ples,
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CHEROKEE REGIONAL LIDRARY

EXHIDIT "D"

NOTES TO THE GENFRAL-PURPOSE FINANCIAL STATl:MENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a General F1xed Assets Account Group should be maintained for reporting the cost ofassets acqmred by governmental fund types
The general-purpose financial statements account for all State, Federal, Local and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental umts, unless othem1se disclosed in these notes Funds and the account group pre~ented in this report arc as follows
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general act1v1t1es Governmental Fund I ypes include.
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists ofproeeeds received from State and Federal sources to accomphsh specific obJecuves and are reqmred to be accounted for separately
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for compensated absences
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund 1s determined by its measurement focus All governmental funds are accounted for using a current financial resources measurement focus With this measurement focus, only current assets and current hab1ht1es are generally included on the balance sheet Operating statements of these funds present increases (1 e, revenues and other financing sources) and decreases (i e, expenditures and other financing u!-Cs) m net current assets Their reported fund balance 1s considered a measure of available spendable resources
L1ab1lit1es which are expected to be financed from available spendable resources are reported as liah11it1es in the governmental funds Other liab1lit1es, which are not t:xpected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group
Governmental funds are accounted for using the modified accrual basis ofaccounting under which
Revenues arc reco1,rn1zed when su~ccpt1blc to accrual (1 e, when they hccome both measurahle and available). "Measurable" means the amount of the transact10n can be determined and "available"
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CHEROKEE REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE rlNANCIAL STATEMENTS

JUNE 30, 2002

Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
means collectible w1thm the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers receivables collected w1thm sixty days after year-end to be available and therefore susceptible to accrual Nonexchange transact10ns, m winch the Library gives (or receives) value without d1rectly rece1vmg (or g1vmg) equal value m exchange, mclude intergovernmental grants and donations Revenue from grants and donat10ns 1s recogmzed m the fiscal year m which all ehgibility requirements have been satl~fied
Expenditures are generally recogmzed when the related fund hab1hty 1s mcurred
BUDGET
The Cherokee Reg10nal Library's budget 1s a complete financial plan for the Library's fiscal year and 1s based upon e~t1mates of expenditures together with probable fundmg sources There is no statutory proh1bmon regarding overexpend1ture of the budget at any level The budget for all governmental funds 1s prepared by fund. function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared m accordance with generally accepted accountmg principles
The budget process begms when the Library's adm1mstration prepares a tentative aggregated budget for the Board's approval After approval ofth1s tentative budget by the Board. copies are sent to all local fundmg agencies After fundmg approval 1s received from all local fundmg agencies, the Board makes rev1s10ns as necessary and adopt~ the budget The budget 1s then submitted to the Board of Regents of the University System of Georgia as a part of the Librnry's annual application for State aid The Board may mcrease or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofca~h on hand, demand deposits and short-term investments with origmal maturiues of three months or less from the date of acquisition m authorized financial msutuuons Georgia Laws authori7e the L1brnry to deposit its funds m one or more solvent banks or msured Federal savmg~ and loan assoc1a110~
INVESTMENTS
COMPOSITION OF INVESTMENTS Investment~ made by th.: Library m nonpart1c1patmg mtercst-eammg contracts (such~ certificates of deposit) and repurchase agreements are reported at cost. Paruc1patmg mterest-earmng contracts and money market mve~tments with a maturity at purchase of one year or less are reported at amortized cost. Both part1c1patmg mterest-earnmg contracts and money market mvestments with a matunty at
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Clll:.ROKEE REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL Sl ATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authonzes the Library to mvest its funds In selectmg among options for mvestment or among 1ru.tllutlonal bids for deposits. the highest rate of return shall be the ob1ecuvc. given eqmvalent cond1t10ns of safety and hqu1d1ty Funds may be mvested m the followmg
(I) Obhgallons issued by the State of Georgia or by other states.
(2) Obhgat10ns issued by the United States government.
(3) Obhgat10ns fully msured or guarnnteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool admm1stered by the State of Georgia. Office of Treasury and F1scal Services,
(7) Repurchase agreements, and
(8) Obligations of other poht1cal subd1v1s1ons of the State of Georgia
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expend!lures made but not reimbursed. allotted funds from partic1patmg local governments, and other receivables d1M:loscd from mformatlon available Receivables are recorded when either the asset or revenue recognition cntcna has been met Receivables recorded on the general-purpose linanc1al statements do not mclude any amounts which would necessitate the need for an allowance for uncollecllble receivables
COMPENSATED ABSENCES
Compensated absences represent obligatioru. of the Library relatmg to employees' rights to receive compensation for future absences based upon services already rendered This obligation relate, only to vcstmg accumulatmg leave m which payment 1s probable and can be reasonably estimated No hab1hty ha, been recorded m the md1v1dual fund, for the current port10n of this obhgat10n as this amount 1s deemed immaterial to the general-purpose financial statements.

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CHEROKEE REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Library has the followmg type of mterfund transactions
Reimbursements ofexpenditures m1tially made from a fund that are properly applicable to another fund arc recorded as expenditures m the re1mbursmg fund and as reductions of expenditures m the fund that 1s reimbursed
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements arc captioned "Memorandum Only" to md1cate that they are presented only to fac1htate financial analysis Data m these columns do not present financial pos1lion or results of operalions in conformity with generally accepted accountmg principles. nor 1s such data comparable to a consohdatwn Interfund ehmmatwns have not been made m the aggregation of this data
Note 2 DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any lime many depository for a lime longer than ten days a sum of money which has not been ~ecured by surety bond. by guarantee ofmsurance. or by collateral The aggregate of the face value of such surety bond and the market value of sccuritJes pledged shall be equal to not less than 110 percent of the pubhe funds bemg secured after the deducllon of the amount of deposit insurance. If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate ofthe market value ofthe securities pledged to secure a pool of public funds shall be not less than I IO percent ofthe daily pool balance OCGA SectJon 45-8-11 (b) provides an officer holdmg pubhc funds may, m his discret10n. waive the reqmrement for security in the case ofoperatmg funds placed m demand deposit checkmg account~
Acceptable security for deposits consists of any one of or any combmat1on of the followmg
(I) Surety bond signed by a surety company duly qualified and authorized to transact busmess wnhm the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporat10n.
(3) Bonds, bills. notes. certificates of mdebtednes~ or other direct obhgatJons of the Umted States or of the State of Georgia,
(4) Bonds, bills, notes. certificates of mdebtedness or other obhgat10ns of the counties or mumcipaht1es of the State of Georgia,
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CHEROKEE REGIONAL LIBRARY

EXHIBIT "D"

rs NOTES TO THE GENERAL-PURPOSE flNANCIAL STATEMEN

JUNE 30, 2002

Note 2 DEPOSITS

(5) Bond~ of any pubhc authonty created by the laws of the State of Georgia. providing that the statute that created the authority authonzed the use of the bonds for this purpose,

(6) lndustnal revenue bonds and bonds of development authontie~ created by the laws of the State of Georgia, and

(7) Bonds. bills. notes, certificates of indebtedness, or other obhgauons of a sub~1d1ary corporation of the Umted States government, which arc fully guaranteed by the Umted States government both as to pnnc1pal and interest or debt obhgat10ns 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 Assoc1allon. and the Federal National Mortgage A~soc1at1on

CATEGORIZATION OF DEPOSITS At June 30, 2002. the bank balances were $303,030 43 The amounts of the total bank balances are classified into three categories of credit ri~k

Category 1 - Cash that is insured (e g. Federal depository insurance) or collaterahzed with ~cuntles held by the Library or by the Library's agent in the Library's name
Category 2 - Cash collaterahzed with securities held by the pledging financial institution's trust department or agent in the Library's name
Category 3 - Uncollaterahzed deposits (This includes any bank balance that 1s collaterah7.ed with securities held by the pledging financial mstituuon, or by its tru~t department or agent but not in the Library's name.)

The Library's deposits are classified by nsk category at June 30, 2002, as follows

Risk Category

Bank Balance

1

$ 169.721 12

2

000

3

133,309 31

Total Note 3 RISK MANAGEMENT

$ 303,030.43

The Library 1s exposed to vanous nsks ofloss related to torts. theft of. damage to. and de~1rucllon of assets, errors or om1ss10ns, Job related illness or mJunes to employees and acts of God

The L1brary has obtained commercial msurance for nsk ofloss associated with torts. assets, errors or om1ss10ns and Job related illness or mJuries to employees However, the error or om1ss1ons pohcy

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CHEROKEE REGIONAL LIBRARY

EXHIBIT "D"

NOl ES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 3. RISK MANAGEMENT

excludes coverage for sexual harassment and discnmmat10n. The Library has neither ,1gnificantly reduced coverage for these nsks nor mcurred losses (settlements) which exceeded the Library's msunmce coverage m any of the past three years

The Library has elected to self-msure for all losses related to acts of God The Library has not experienced any losses related to this nsk m the past three years

The Library has purcha,ed surety bonds to provide add1t1onal insurance coverage as follows

Position Covered

Amount

Director Board Chairperson Board Treasurer Bookkeeper Library Mangers

$ 10,000.00 $ 10,000 00 $ 10,000 00 $ 10,000 00 $ 1,000 00

Note 4 GENERAL LONG-TERM DEBT

The changes m General Long-Tenn Debt dunng the fiscal year ended June 30, 2002. were as follows

Compensated Absences

Balance July I. 200 I

$ 27.156 12

Add1llons Annual Leave Earned and Utilized (Net)

2,873 80

Balance June 30, 2002

$ 30,029.92

Note 5 ACCUMULATED EMPLOYEES' U:AVE

Full lime noncert1fied employees cam 8 to I4 hours of annual leave per month dcpendmg on the employees' length of contmuous ,crv1ce and full lime certified employees earn 14 to 16 hours of annual leave per month dependmg on length of continuous service Annual leave may be accumulated to a maximum of 150% an md1v1duals annual allotment Upon rellremcnt or tennmauon of employment, employees are paid at the current rate of pay for any accrued leave up to the maximum accumulat10n. See Note I - Compensated Absences

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CHEROKEE REGIONAL LIBRARY

EXHIBIT "D"

NOTES ro THE GENERAL-PURPOSE flNANCIAL STATEMENTS

JUNE 30. 2002

Note 6 RE1 JREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substanllally all libranans and clerical personnel employed by regional and county hbrancs are covered by the I eachcr., Rctucment System of Georgia (TRS), which 1s a cost-sharing multiple employer defined benefit pension plan TRS provide~ ~erv1ce retirement. d1sab1hty rellrement and survivors benefit.~ for its members in accordance with State statute The Teachers Rellrement 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 of the Library who are covered by TRS are requued by State statute to contnbute 5% of theu gro~~ earnings to TRS. The Library makes monthly employer contnbutions 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 contnbullons for the current fiscal year and the preceding two fiscal years are as follows

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 40,507 94 $ 48,679.82 $ 46,783.76

- 13 -

CHEROKEE REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30 2002
AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Public l.Jbranes Salanes Travel Library Matenals Talking Book Centers Maintenance and Opera110ns

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

206,88942

4,350 00

49,091 13

100,378 00

44,693 00

$-==4=0~5;,;.4~0.:.1~55;;.

See notes to the general-purpose financial statements - 14 -

CHEROKEE REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30. 2002
AGENCY/FUNDING GRANT Museum and Library Services. Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Art State Library Program

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
s _ _~e"-0_.2_5_1_5_5

See notes to the genera~purpose financial statements - 15 -

CHEROKEE REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30. 2002
LOCAL SOURCES Boards of Educabon Dade County Walker County City of Chickamauga City Governments Chickamauga LaFayette Rossville Trenton County Government Boards of Commissioners Dade Walker

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

28,113 96

38,139 96

1,293 00

6,900 00 49,000 00 37,181 25 1291100

42,859 14 127 000 01

$ =~.,;34_3_._39..8...3.=-2

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

CHEROKEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2002

SCHEDULE "4"

NAME
Abernathy, Bailey, Barrett, Bradford, Brewer, Brooks, Burnette Clari<, Coffee Delong, Dennison, Denton, Eubanks, Foster, Goodson, Holder, Johnson, McKeehan, Oliver, Par1<, Reed, Roach, Smith, Stephens, Stubblefield, Tinker, Tope, Ward Wheeler, Whrtm1II, Winans.

Bobbie J JoyT Carmen Debra C Gayla C Sarah Cathryn Carmella Cynthia S June M Kathy Joy Lecia Tnlla Deborah Holly Betty Martha Vahnda Smrth Brenda Rita C Michael Bndget D Kimberly Charles H Apnl Loraine Dma Ray Angela Brenda K Robin Glenda

TITLE CATEGORY
Library Assistant Library Assistant Library Assistant Library Assistant Branch Services Library Assistant Business Manager Library Assistant Library Assistant TBC Assistant Library Assistant Library Assistant Assistant Director Library Ass,stant Library Assistant Library Assistant Library Assistant Library Assistant Library Manager Business Manager Library Assistant Library Manager Library Assistant Library Assistant TBC Manager Page Director Library Assistant Library Assistant Library Assistant Library Manager

Unidentified Variance

Totals per Report

SALARIES

TRAVEL

$

8,476 08

127 20

8,255 12

11,837 03 $

54,053 54

2,533 08

10,595 61

17,638 44

7,11045

8,623 51

7,664 16

10,942 36

50,056 38

5,449 30

10,798 75

714 78

15,589 56

9,314 02

25,729 56

12,756 75

3,965 97

28,669 92

18,047 13

2,805 83

28,412 76

4,544 42

79,777 08

5,396 38

158 88

2,325 62

18,858 70

3752 771 80 471 97
2828 153 56
87465
20800 14 84 51 52 4300 2744
43340 3,82360

$ 471,228 37 $

6,93958

1,000 86

-~=====~ $ 472,229 23 $

6,939 58

See notes to the general-purpose financial statements - 17 -

SECTION II FINDINGS AND QUESTIONED COSTS

CHEROKEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 7462-93-02
The audit report for the year ended June 30, 200 I, noted that the management of the Cherokee Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as reqmrcd by generally accepted accountmg pnnc1ples In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records Tlus cond11Ion results in the general-purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropnate acl!on should be taken by the Library to establish accountmg controls and procedures to provide for maintenance ofa General F1xed Assets Account Group These subs1d1ary records should include an inventory ofland. buildings. eqmpment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired. acqu1s1tlon co~t. estimated replacement cost, location and descnptlon Detailed records should be maintained of all add1t10ns and delel!ons to the General Fixed Assets Account Group.
CURRENT YEAR
GENERAL LEDGER Detailed Listing of Salanes Not Reconciled Finding Control Number 7462-02-01
The detailed listing of salary payments made to employees provided to the Georgia Department of Audits and Accounts was not reconciled with the general ledger as presented for audit The detailed hsting ofsalane~ payments had net "umdenl!fied vanances" of$1,000 86, which 1s reflected in the Schedule of Salanes and Travel.
1b1s cond1t10n occurred because management did not reconcile amounts submitted to the Georgia Depanment of Audits and Accounts to the Library's general ledger Procedures should be established by the Library to ensure that the detailed listing of salary 1s reconciled to the accounting records
-I -

CHEROKEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR I:NDED JUNE 30, 2002
CURRENT YEAR CASH AND CASH EQUIVALENTS Inadequate Accountmg Procedures Fmding Control Number 7462-02-02 Dunng the year under review the Cherokee Regional Library's accountmg procedures were msuffic1ent to provide for adequate mtemal control over the bank reconc1hat1on process The followmg deficiencies were noted:
(I) The monthly bank statements for the general operatmg account were not reconciled to the general ledger
(2) There was no admmistrattve review to ensure that bank reconcihat10ns were correct and that the reqmred adjustments had been made ttmely
Internal controls should be established to ensure that monthly bank statements are reconciled with the accountmg records. an admmistrative review ofthe reconciliation is performed and that needed adjustments are recorded on a llmely basts
-2-