Audit report, Coastal Plain Regional Library, Tifton, Georgia, year ended June 30, 2001

."

. \
.'

...' ~ , ";

..' , "

I

I~. : '

, J ~_

. .:~ ';
-"

," I



. ........ . ~ .-
, . , ,~ ,',

I:.'6>,.,.' -.
,\

~ j

",

,",.:,

I.' ! .

-.,, ~ ,.

.. ,- , ',' I
''

.' .~:', .
II , "

. .' ' "", !( "

.\ , ~ " 1-' '1 "
...-..,. "

.. , I,:":, .....,.. , ,.....' ..~ ','

d,

,'"

I'

, .,'
'."

'.., .

. ~"

. ,, '

,~_

'.
' : ' ,\ ' .. ' ',.. -:, I

,

','

_.' \ '

.~~ ;-~ t

,...... 'l. L

...... "

' ~,
,,'

, ....

.... "
" I 1~

. ' . . .

10 1'

",

" .. ,~

.. . .... 'r ~ .,.

, ,I':..., 1 I

~ ~ \ . L

'O. I
, ..I .,
,'

.,'

"
,,
,:

po',

,

.r~,
..., ., ,~

r \ '

. ," ,

,.". >.'
".
,- ,

. . ~l '... ~

-..',," ....".....,: ~.~ .
, ('. :~ .......

. '.,
,' ..... ,

, - .;

~ { '<

I .' .,''::.

"

r.,

;

. -f,r

,. "

~
,

.. -'.... ',': \.' -

.. t' r
;1 )

'" ,'-

o.. ,~

,.'

"

,"
,,

,

,

" -~;. .J';.:.' ,: I

'0 " ~ ~,

.. ' .

'.

.' " ,

.. .: ~.J

' \.
'.

"'

I'

"'

~' '.:; ..
.. ' .
"
.),
\ ,I

.-". -
,: .,,'
.....

,.',;' , ,,,
,",
,.. J-'

. ','



I ,\1

,.'.-.. ,
,','.

i'

,'

',I.'"

, .-;"." .':\
.,'
. ,-.'

,'
': : -' '\
........
r' }J, , ',
0" ~ .

~.: ; \ " j
, I'r:
,I ",

J'
"

, t. r

",

0'

, :,

, ~ I' ::. 4, ...T r I

':;' '.,'-J ':.

'~ \ , ' \,1.

.',

.'

........ ~' ..

.., " ... .'.~ :,:1"

\
'~~~",:,~"':'.,:" ".r. '., \ ... ]~

' .... '
\.

J ~

~.,

"

,, :'

-;. ...... '~ , " :

7.

, t ,t " ' , "

~~! l. '
_"

.. ~)

~.

~ .1 -. o'
,..

'.""

"',~.~' It'''',~ -.'"I!"~I tt" _~ .. ,.,. \~;":.~.

~." ,,,.,. '0 '".,: l' ,., "'" ~--:~. ~'~/.,

.,

.. ~- '

,"
~:

..

I
.',

," ., "
-, ,
"
.:t'.', " ",
",~ ',"
-:. ,. '

,

,"

"'

,I

, " '.'

>,~.

.

,
,,

( , ,"

." , "

.. - -',
',.
\ ",

... ..: .... ':.-'

'~ :,,~,.; ',,:' :. ,",~ -. "COASTAL ~PLAIN REG~IONA'i::Ll8RA'RY ) ,,'- 1, ,~

!,
,. ''-~,,',.:, :,',TIFTON, GE'ORGIA ,'~':'~",' ,
, ,~ .... ;. I

..1
.-;- .....

~.

''.:.:!~:,~

.,_:.:1.
r ""/~ t"

",':

--


~ ~ ,l L'

"';-,

,

'._.

,

.' ~

,I

., ,J" "
... ;~'-~:_ .';' ':i :':,' ;,c' ,,<','::,:"/~:-':~~Pb~i d~:'~~~b~ ,,_~" ',".- ,.,:~: ,- ~ 1 ' .~

. .'~
I'
~ OF THE'-FINANCIAL'SrATEMENTS"", t" '"

.~ .... "-

" , "": :, . :: ',: r: ' . ',,: "

,. ' ~ t

" ': r " " ,

" , ' . \. '.'

t

... ' 1 ' , .

",.-

' . ' .,

. FOR THE FIS.' CA.L YEAR,EN-DED'JUNE'30'200J " .". . "
.. ., ...... . ~.
" I ' r ,

,. , .... : 'r
, "-', ,
. , l,T
" . '. ," ; .: .

'. ,,<:',~~ '., ':"R'us~~11 W." ~i~'tor( .. '
::state Auditor- . - .. , ,

, J

" .... .. J I: \ ~

' . I ~. , ,"

,

",

... r ,

;'

"

' ..-: r,'", "

I"





;. " _..

,~,.. '

,<

.: . ,- I,' , 'I
, : ~,,"

::,:.: "
"

-

I r .... J j,

'

,

'.

'

l

,
.

:

~,
.

.,

. , ' , l,. : ' " r,

, '.

;1 :, ' .... \'.,,

'? ,,- '.1

'j'll, ",

...

/

,".

r.""

.'

r " ....~." "t..~

\

, -,'

'j

- . , ,.' (,

,:" ; ,

, .,'
....... J..

~ .. :-;-;"

l'~ ,r : :.,), ' ':'. ',1

,7 ~:. ~,' ',.~':J:"" -
"'

':

"

"
,,
,i

:

,,J.

': ,

'

-:.::. . .



~ I I'

~ ....

~ .....

",' " , :.. ,=" 'I' j

r. "

, '," -

" J .L

~ : I

P; ~..

_' ... "

'.

I

' ..... R,

"

'~

,"
" Il' '

'r f , '

"

'"

~ ' ... r ,

~ -""; ..
~ .'", ,:1 .'.," 1,'-;

,,

, ,

, '~1

'"

1 ' I"

~.

"~' ,~

, .'

,".

" ",

~~ , ,r

l'

~

I,

~.,~ "'.' ','

,t
,,

,,

.I '".
c,
. - ")' 0, ~-
t ..... ,' J : ..'
. ~.
",

"' "

, 10,

, .'.
1 , --;;)~~ ,

,','

~,

,~

.r ' .. I,. "
,,' '"

, ... ~ .

I -:

;,
':

'.

.-" " ,',. }

. , ,..,,,

"
,

'

, .' "

,,
,0

,'

" ~;

,I,

\ " ," " l', -

'4'

, ,J

..

, ...
"','

I",.

\ :!

"

,',

I, '

,,
'~',

>" ll' ,I ."

1 ~;

""

..-'

,'
"i

,~.::': .

... ","

' . ' . l'"
'

, ""
"

,"

"

I'

I' "

t,
. .~

.. L

,'-

'.,'

.. ,

, ;~ ".4

,, ,'

,; , ,'i,

",

I ~' ....~

~I
..,

0. I .' .,,~' t ...

r

'.,

..'

I" r

",' , .' ~ ";...,.. ,

,'

, , .' ,

,{

o

'
,

,' "
"

.r.. I"
.' ,, ,

I r .....

"

' .... r,

:'

,'.,;'

.,',

. ", ..-
-, I., ::,'

-I , ....

\

I

I,

"
"

,"
-,

1. ",~_.

.',

, 1 r. .. ,

",

... o
'.. ~\ ",1

.,
',"

",

,,' , /.

. .. ., :1

,'/1

, , ' t, ,"~.,

' ~~

"\, ',,~ ........,

." " '

I "~ I, ..I, ~ : r' I < " '.
" , r' '

"
,'~I

.' ,

",

. . ", , ",

'., '

~'

.. _.

-,'

" .. l

;,

.

,~

.. ',"(
,>
; .. '.' '"

,
.
','

,', I, "
.r ~, .:

....~ ,
:,

~ >.,', :~';'<' ~,:':"": .'

.... ;

,'

J

COASTAL PLAIN REGIONAL LffiWY
- TABLE OF coNrENrs -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

6

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

14

2

FEDERAL

15

3

LOCAL

16

4 SCHEDULE OF SALARIES AND TRAVEL

17

SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

JSSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Slreel. S.w., Suile 214 Allanla. Georgia 30334-H400
July 22, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board ofRegents of the University System of Georgia
and Director and Members of the Coastal Plain Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Coastal Plain Regional Library, as ofand for the year ended June 30, 200 I, as listed in the table ofcontents. These general-purpose financial statements are the responsibility of the Coastal Plain Regional Library's management. Our responsibility is to express an opinion on these general-purpose 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 general-purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general-purpose financial statements ofthe Library did not contain a General Fixed
Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
2001ARL-42

The aggregate effects on the general-purpose financial statements of this omission have not been detennined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matter referred to in the third paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Coastal Plain Regional Library as of June 30,2001, and the results of its operations for the year then ended, in confonnity with accounting principles generally accepted in the United States of America.
Our audit was perfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Coastal Plain Regional Library taken as a whole. The accompanying financial schedules (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Coastal Plain Regional Library. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section SO6-24.
Respectfully submitted,
~~.~..k
Ru ell W. Hinton State Auditor
RWH:as 2001ARL-42

COASTAL PLAIN REGIONAL LffiRARY

COASTAL PLAIN REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

ASSETS Cash and Cash EqUivalents Investments Accounts Receivable Amount to be PrOVided In Future Years
For Payment of Compensated Absences
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Compensated Absences
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undeslgnated
Total liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

27,225,68 $

0,00

26,835.30

$

54,060,98 $ """",==-=-===0:==00=

$

11,417.87

$

11,417.87

42.64311 $

--=0.:.::,0:..::..0

$

54,060.98 $ -========0,;;;0,"",0

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 Only)

JUNE 30, 2001

JUNE 30, 2000

$

27,225.68 $

51,889.64

26,835.30

25,635.30

3,83016

$

13,780.08

13.78008

15,314.10

$

13,780.08 $

67,841.06 $ .....=:::::iiri96:i:!::,.6..6.i::::9=.20i::0

$ $ _ _1.:..:3~7..;;;8.;;.:0.~08~

$

13,780.08 $

11,417.87 $ 13,780.08
25,197.95 $

40,882.05 15,314.10
56,196.15

42,643.11

40.473.05

$

13,78008 $

67,841.06 $====-==9.6..=,6.6.9.....2...0...

-3-

COASTAL PLAIN REGIONAL LIBRARY
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDEp JUNE 30, 2001

EXHIBIT"B"

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public SeIVlC8s TectvlIcsl SelVlceS Support Services MaIntenance and Operabons tnformabon Technology
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operabng Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources (over) under Expendlll.res and Other Financing Us!oS
FUND BALANCE JULY 1

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 466,32297 $
71,86366 68,41668
$ 606,60331 $

$ 1,553 00
1,55300 $

466,32297 $ 1,55300
71,863.66 68,416.68
608,156.31 $

457,60181
25,5n.46
67,83874
69,404 33
620.422,34

$

61,00270 $

843,94

468,440,67

13,471 02

59,398.36

$ 603,15669 $

$

3,44662 $

1,375.00 $ 1,454 56
2,82956 $ -1,276,56 $

62,3n 70 $
843.94 469,89523
13,471.02 59,39836
605,98625 $
2,17006 $

57,204 96 800,14
474,497.53 13,455.14 78,162.27
624,12004
-3,697,70

$

1,276.56 $

$

-1,276,56

$

-1,276.56 $

1,27656 $

$

2,17006 $

40,473,05

000 $ 000

1,276.56 -1,276.56
000
2,170,06 $ 40,47305

-3,697,70 44,170.75

FUND BALANCE JUNE 30

$

42,643.11 $

0.00 $

42,643 11 $ =_",,4..0.,.4..7..3.._05=

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

COASTAL PLAIN REGIONAL LIBRARY COMBINER STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT"C"

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technlcal5eMces Support SeMceS Maintenance and OperalJons InforrnalJon Technology
Total expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
OperalJng Transfers In OperalJng Transfers Out
Total Other Flnanang Sources (Uses)
Excess of Revenues and Other Flnanang Sources (over) under expenditures and Other Financing Uses
FUND BALANCE JULY 1. 2000

GENERAL FUND

BUDGET

ACTUAL

$ 488,704.00 $ 466,322.97

73,884.00 11,400 00

71,863.66 68,41668

$ 573,988.00 $ 606,603,31

$ 57,723.00 $ 61,00270

1,40000

843.94

497,31500

468,440,67

12,55000

13,471.02

5,000 00

59,398.36

$ 573,988.00 $ 603,156.69

$

000 $

3,44662

$

-1,276.56

$

-1,276.56

S

0.00 $

2,17006

40,47305

40,47305

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00

$ 1,553.00

$

000 $ 1,55300

$

0.00 $ 1,37500

1,454.56

$

0.00 $ 2,829.56

$

000 $ -1,276.56

$ 1,276.56

$ 1,27656

$

000 $

000

000

000

FUND BALANCE JUNE 30. 2001

$ 40.473.05 $ 42,64311

$

0.00 $ =~-=O.=-OO...

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

COASTAL PLAIN REGIONAL LIBRARY

EXHIBIT "0"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Coastal Plain 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 ofGeorgia. With the exception ofthe departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library.
The Library Board consists ofeight members; one member appointed by Victoria Evans Memorial Library Board, one member appointed by Carrie Dorsey Perry Memorial Library Board, one member appointed by Cook County Library Board, one member appointed by Irwin County Library Board and four members appointed by Tifton-Tift County Library Board. The Library Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State ofGeorgia for State and Federal 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 Coastal Plain Regional Library is therefore determined to be a joint venture.
FUND ACCOUNTING
The Library uses funds and an account group 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 ofaccounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost ofassets acquired by governmental fund types.

- 6-

COASTAL PLAIN REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 I

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists ofproceeds received from State and Federal sources to accomplish specific objectives and are required 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 is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected 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 are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of

-7-

COASTAL PLAIN REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the current period. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related' fund liability is incurred.
BUDGET
The Coastal Plain Regional Library's budget is a complete fmancial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist 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 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 of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone 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 are reported at fair value. The Official Code of Georgia Annotated
-8-

,'! ~

COASTAL PLAIN REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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:
(I) 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
Statesgovernmentagenc~
(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.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.

- 9-

COASTAL PLAIN REGIONAL LmRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofth~ 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. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(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,
- 10-

COASTAL PLAIN REGIONAL LmRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ruNE 30. 2001

Note 2: DEPOSITS
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment 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 Fann Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 200 1, the bank balances were $107,263.43. The bank balances were entirely covered by Federal depository insurance or by collateral held by the Library or the Library's agent in the Library's name.
Note 3: 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 natural disaster.
The Library has obtained commercial insurance for risk ofloss associated with torts and assets. The Library has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.
The Library has elected to self-insure for all losses related to natural disaster. 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.
The Library participates in the Association County Commissioners ofGeorgia-SelfInsured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with County Reinsurance Limited to provide coverage for potential losses by the Fund in excess of$450,000.00 loss per occurrence, up to $2,000,000.00.
- 11 -

COASTAL PLAIN REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENfS

ruNE 30.2001

Note 3: RISK MANAGEMENT

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

Position Covered

Amount

Library Director Bookkeeper

$ 100,000.00 $ 50,000.00

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Tenn Debt during the fiscal year ended June 30, 2001, were as follows:

Compensated Absences

Balance July 1, 2000

$ 15,314.10

Deductions Annual Leave Earned and Utilized (Net)

-1,534.02

Balance June 30, 2001

$ 13.780.08

Note 5: 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 reimbursements to the grantor agency for any expenditures which are disallowed under grant tenns. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 6: ACCUMULATED EMPLOYEES' LEAVE

Regular full-time employees earn annual leave ranging from .84 to 1.25 days each month depending upon the employee's length ofcontinuous Library service with a maximum accumulation of fifteen days. Employees are paid at their daily rate of pay for unused accumulated annual leave up to the maximum of fifteen days upon retirement or termination of employment. See Note 1 Compensated Absences

- 12-

COASTAL PLAIN REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 7: 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 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 61,279.73 $ 58,224.80 $ 59,604.07

- 13 -

COASTAL PLAINeREGIONAL ~IBRARY , SCHE-DlJLE,(jF.~S;tA.TE REVENUE
,YEAR.fer' ,jC)Eo'jUN-E 30,' 2001
AGENCYIFUNDING GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Materials Maintenance and Operations

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

356,577.73

4,500.00

57,623.40,

47,621.84

$

466,322.97

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

COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30. 2001
AGENCYIFUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ =-==-===-1,=55=:3:=,0:;;;0...

See notes to the general-purpose financial statements. -15-

COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2001
LOCAL SOURCES Affiliate Libranes Carrie Dorsey Perry Memorial Cook County Irwin County Tifton-Tift County Victoria Evans Memorial Boards of Education Cook County Tift County

SCHEDULE "3ft

GOVERNMENTAL FUND TYPE GENERAL FUND

$

12,369.80

11,980.92

7,047.00

29,303.94

7,752.00

2,210.00 1,200.00

$

71,863.66

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

COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE -4"

NAME
Britt, Cooper, Frizzell, Griffis, Harrington, Lawley, McMillian, Newberry, Paulk, Tyson,

Christie M. Dena Yvonne Gary F. Kathy E. Donna C. Jennifer AnnisM. JoanW. Sara Janice

TITLE CATEGORY
Secretary Collections Management Librarian Director Youth Service Librarian Technical Services Librarian Technical Services Librarian Technical Services Assistant Special Services Librarian Public Services Libranan Bookmobile Driver

SALARIES

$

19,695.96

50,377.14

58,292.80 $

55,992.76

6,883.82

16,792.90

20,997.96

45,192.32

55,992.76

5,950.94

TRAVEL
2,282.22 1,160.91
91.56 93.24 580.64

Totals per Report

$ 336,169.36 $=-==-===4=,2.0..8.....5=7=

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

SECTION II FINDINGS AND QUESTIONED COSTS

COASTAL PLAIN REGIONAL LmRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-737293-02
The audit report for the year ended June 30, 2000, noted that the Coastal Plain Regional Library did not maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records. During the year under review, the Library failed to establish a General Fixed Assets Account Group within the fonnal accounting records. This condition results in the general-purpose financial statements ofthe Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained for all additions and deletions to the General Fixed Assets Account Group.