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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT DALTON REGIONAL LIBRARY
DALTON, GEORGIA YEAR ENDED JUNE 30, 1994

DALTON REGIONAL LIBRARY - TABLE OF CONTENTS -

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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

15

SCHEDULES

1 ANALYSIS OF CASH AND CASH EQUIVALENTS

16

2 INVESTMENTS

17

3 ACCOUNTS RECEIVABLE

18

SCHEDULE OF REVENUE

4

STATE

19

5

FEDERAL

20

6

LOCAL AND OTHER

21

7 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

22

8 MEMBERSHIP OF LIBRARY BOARD

23

9 SCHEDULE OF SALARIES AND TRAVEL

24

DALTON REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION ID PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.epartment of ~uhits
254 WASHINGTON STREET, S.W. ROOM 214
!-tlanbt, Oie.orgia 30334-8400
January 26, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Dalton Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Dalton Regional Library, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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 certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
* The Library did not report the deferred compensation plan assets and liabilities within the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be included in the general purpose financial statements.
94ARL-42

The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Dalton Regional Library as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements of the Dalton Regional Library taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 9), 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 Dalton Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose :financial statements and, in our opinion, except for the effects of the matters discussed in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
d'~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-42

DALTON REGIONAL LIBRARY - 1-

DALTON REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES JUNE 30 1 1994

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY
---------------------------
LIABILITIES
-----------
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabi 1ities
FUND EQUITY
-----------
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

----------------------------

SPECIAL

GENERAL

REVENUE

FUND

FUND

------------- -------------

TOTAL (Memorandum
Only)
-------------

$ 20,627.80 $ 83,411.67 $ 104,039.47

28,483.79

28,483.79

3,365.63

2,115.89

5,481.52

------------- ------------- -------------

$ 52,477.22 $ 85,527.56$ 138,004.78
============= ============= =============

$

598.54

$

598.54

2,924.00

2,924.00

2,246.49

2,246.49

$ 84,377.07

84,377.07

------------- ------------- -------------

$ 5,769.03 $ 84,377.07 $ 90,146.10
------------- ------------- -------------

$ 1,150.49 $ 1,150.49

$ 46,708.19

0.00

46,708.19

- ----------- ------------- -------------

$ 46,708.19 $ 1,150.49 $ 47,858.68
------------- ------------- -------------

$ 52,477.22 $ 85,527.56$ 138,004.78
============= ============= =============

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

DALTON REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1 1994

EXHIBIT "B"

REVENUES
--------
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
-------------------
FUND BALANCE JUNE 30

SPECIAL

TOTAL

GENERAL

REVENUE

(Memorandum

FUND

FUND

Only)

------------- ------------- -------------

$ 523,860.93 $ 28,122.93 $ 551,983.86

23,934.88

23,934.88

208,947.76

208,947.76

------------- ------------- -------------

$ 732,808.69 $ 52,057.81 $ 784,866.50
------------- ------------- -------------

$ 294,046.50 $ 47,326.06 $ 341,372.56

49,489.76

49,489.76

78,728.13

3,934.88

82,663.01

232,851.02

232,851.02

94,693.29

94,693.29

------------- ------------- -------------

$ 749,808.70 $ 51,260.94 $ 801,069.64
------------- ------------- -------------

$ -17,000.01 $

796.87 $ -16,203.14

63,708.20

353.62

64,061.82

------------- ------------- -------------

$ 46,708.19 $ 1,150.49 $ 47,858.68
============= ============= =============

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

DALTON REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Adminhtration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) ExpendHures OTHER FINANCING SOURCES
Other Sources
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1, 1993
Adjustments (Net)
FUND BALANCE JUNE 30, 1994

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 551,983.86 $ 527,967.00 $ 24,016.86

23,934.88

24,000.00

-65.12

208,947.76

357,560.17 -148,612.41

------------- ------------- -------------

$ 784,866.50 $ 909,527.17 $ -124,660.67
------------- ------------- -------------

$ 341,372.56 $ 311,751.50 $ -29,621.06

49,489.76

55,776.50

6,286.74

82,663.01

231,087.82

148,424.81

232,851.02 265,599.50

32,748.48

94,693.29

140,755.00

46,061.71

------------- ------------- -------------

$ 801,069.64 $ 1,004,970.32 $ 203,900.68
------------- ------------- -------------

$ -16,203.14 $ -95,443.15 $ 79,240.01

88,151.00 -88,151.00
------------- ------------- -------------

$ -16,203.14 $ -7,292.15 $ -8,910.99 64,061.82 176,988.89 -112,927 .07

-343.32

343.32

------------- ------------- -------------

47,858.68$ 169,353.42 $ -121,494.74
============= ============= =============

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

DALTON REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEJ\IBNTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Dalton Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exceptio~ of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the Dalton Regional Library is determined to be a joint venture.
The Library Board consists ofnine members; four members appointed by the Dalton-Whitfield County Library Board, two members appointed by the Catoosa County Library Board, two members appointed by the Gordon County Library Board, and one member appointed by the Murray County Library Board. The 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 funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Dalton Regional Library is located in Dalton, Georgia, and serves Catoosa, Gordon, Murray and Whitfield Counties.
FUND ACCOUNTING
The Library uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.

- 5-

DALTON REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all 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 traditionally 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 of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.

- 6-

DALTON REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Dalton Regional Library has a legally authorized nonappropriated budget which is fonnally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division of Public Library Services, as a part ofthe Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan ass<?ciations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Donated investments are stated at fair market value as ofthe date donated.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from infonnation 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.
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund transactions:

- 7-

DALTON REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. .OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of 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 ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 8-

DALTON REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds. bills. notes. certificates ofindebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Banlc, the Federal Home Loan Bank, the Federal Intermediate Credit Banlc, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $158,360.61. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Library's deposits are classified by risk category at June 30, 1994, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 101,782.28 56,578.33 0.00
$ 158 360.61

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount of the Library's total investments was $28,483.79 and this entire amount consisted ofCommon Stock which was registered, in the Library's name. The market value of these investments was $46,111.59.

Note 3: RISK MANAGEMENT

The Library has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based upon experience. During fiscal year 1994, no claims were paid.

- 9-

DALTON REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 4: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of $84,377.07 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. Lottery funds in the amount of $84,377.07 are available to fund encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Media Center and Library Equipment

$ 84,377.07

The amounts described in this note are not reflected in the general purpose financial statements.

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

Note 6: RELATED PARTY TRANSACTIONS

The Dalton Regional Library entered into a purchase agreement with Multiprise, Incorporated, a commercial and amateur radio business located in Orange Park, Florida. This agreement was for the purpose of purchasing equipment specified in the Library's purchase orders that were submitted to Multiprise. During the period May 26, 1994 through November 29, 1994, the Library purchased computer, radio and media equipment from Multiprise with State Lottery Program funds totaling $108,006.90. These purchases were handled for Multiprise by their principal agent, Mr. Laurin Cavender. Mr. Cavender is the son ofMrs. Eugenia Cavender, Director of Dalton Regional Library. During the period under review, other purchases in the amount of $4,405.41 were made by the Library for other computer equipment, software and supplies from Telesensor, which is also a business represented by Mr. Cavender. The nature ofthe relationship and business transactions disclosed above are considered to be related party transactions which are specifically disclosed as required by generally accepted accounting principles.

Refer to the Schedule ofFindings and Improper or Questioned Costs, Audit Control Number 7552-94-04, for further information.

Note 7: DEFERRED COMPENSATION PLAN

The Library offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Library employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

- 10 -

DALTON REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: DEFERRED COMPENSATION PLAN
All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Library (without being restricted to the provisions ofbenefits under the plan), subject only to the claims ofthe Library's general creditors. Participants' rights under the plan are equal to those ofgeneral creditors ofthe Library in an amount equal to the fair market value ofthe deferred account for each participant.
The Library has designated an independent plan administrator to operate and maintain the plan. The assets and liabilities of the plan are not reflected in these financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $350,194.00; total payroll was $374,864.22.
- 11 -

DALTON REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1994

Note 8: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $62,369.43, of which $41,358.03 was made by the Library and $21,011.40 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.

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

Total unfunded pension benefit obligation ofTRS as of June 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292 000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of $41,358.03 was actuarially determined and represented .0079% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

- 12 -

DALTON REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 9: SURETY BONDS
The Library Director, Mrs. Eugenia Cavender and all employees ofthe Library are covered under a blanket bond in the amount of$20,000.00 with the Ohio Casualty Insurance Company, Hamilton, Ohio, their Bond No. 3-061-628, on which premium was paid through February 16, 1995.
On November 1, 1994, the Dalton Regional Library Board decided unanimously to place Mrs. Eugenia Cavender on administrative leave as Library Director, and subsequently, Ms. Martha D. Hoole was appointed Acting Director ofDalton Regional Library.

- 13 -

DALTON REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30. 1994

EXHIBIT "E"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Deferred Revenue
Total Liabilities FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES
AND
CONSTRUCTION ACT
TITLE I PUBLIC LIBRARY
SERVICES

TOTAL

$ 84,377.07 $

$ 2,115.89

84,377.07 2,115.89

$ 84,377.07 $

2,115.89 $ 86,492.96

============= ================ =============

$

965.40 $

965.40

$ 84,377.07

84,377.07

------------- ---------------- -------------

$ 84,377.07 $

965.40 $ 85,342.47

------------- ---------------- -------------

$

1,150.49 $

1,150.49

$

0.00

0.00

0.00

------------- ---------------- -------------

$

0.00 $

1,150.49 $

1,150.49

------------- ---------------- -------------

$ 84,377.07 $

2,115.89 $ 86,492.96

============= ================ =============

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

DALTON REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES ANO CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "F"

REVENUES
--------
State Funds Federal Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Circulation
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY l
-------------------
FUND BALANCE JUNE 30

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCT! ON ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 28,122.93

$ 28,122.93

$

23,934.88

23,934.88

------------- ---------------- -------------

$ 28,122.93 $

23,934.88 $ 52,057.81

------------- ---------------- -------------

$ 28,122.93 $

19,203.13 $ 47,326.06

3,934.88

3,934.88

------------- ---------------- -------------

$ 28,122.93 $

23,138.01 $ 51,260.94

------------- ---------------- -------------

$

0.00 $

796.87 $

796.87

0.00

353.62

353.62

------------- ---------------- -------------

$

0.00 $

1,150.49 $ l, 150.49

============= ================ =============

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

DALTON REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994
NONINTEREST BEARING ACCOUNT
Wachovia Bank of Georgia, Dalton, Georgia INTEREST BEARING ACCOUNT
Wachovia Bank of Georgia, Dalton, Georgia
Certificate of Deposit No. 225999 (3.93%) OTHER
Petty Cash

SCHEDULE "l"
$ 102,163.19 1,782.28 94.00
$ 104,039.47
=============

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

DALTON REGIONAL LIBRARY INVESTMENTS
JUNE 30 1 1994
STOCK
Wachovia Corporation 1,392.0481 Shares of Common Stock (Market Value $46,111.59)

SCHEDULE "2" $ 28,483.79

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

DALTON REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "3"

Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services
Murray County Library Newsletter Fees
University Microfilms, Incorporated Reimbursement for Overpayment of Expenditures

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 2,115.89 $ 2,115.89

$

110.00

110.00

3,255.63

3,255.63

$ 3,365.63$ 2,115.89 $ 5,481.52
============= ============= =============

See notes to the general purpose financial statements. - 18 -

DALTON REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Media Center and Library Equipment

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 298,503.03
114,845.90
110,512.00
$

$ 298,503.03 114,845.90 110,512.00

28,122.93

28,122.93

$ 523,860.93 $ 28,122.93 $ 551,983.86
============= ============= =============

See notes to the general purpose financial statements. - 19 -

DALTON REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 1994
AGENCY/FUNDING
SUB-GRANTS Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "5"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ 23,934.88
=============

See notes to the general purpose financial statements. - 20 -

DALTON REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1994
LOCAL SOURCES Boards of Education Catoosa County Dalton, City of Murray County Whitfield County
City Government Dalton
County Governments Boards of Commissioners Catoosa Whitfield
Public Libraries Calhoun - Gordon County Catoosa County Murray County
OTHER SOURCES Dividends Donations Fines and Fees Interest Earned Lost and Damaged Books Photocopy Sales Other

SCHEDULE "6"
GOVERNMENTAL FUND TYPE GENERAL FUND
$ 3,000.00 1,200.00 1,200.00 1,320.00
64,999.92
500.00 70,100.00
15,791.02 2,330.68 3,410.30
1,592.68 25,958.55 13,507.13
629.08 1,343.81
982.76 1,081.83
$ 208,947.76

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

DALTON REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

SCHEDULE "7"

EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Energy Library Books and Materials Utilities Communications and Insurance Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

------------- ------------- -------------

$ 374,864.22 100,197.01 2,730.64 2,999.03 $ 64,861.78 12,852.37 30,561.38 119,623.27 242.76 29,653.77 11,222.47

$
801.38 1,242.61 7,308.83
100.43 300.00

374,864.22 100,197.01
2,730.64 3,800.41 64,861.78 14,094.98 30,561.38 126,932.10
242.76 29,754.20 11,522.47

41,507.69

41,507.69

------------- ------------- -------------

$ 749,808.70$ 51,260.94 $ 801,069.64
============= ============= ----=---=--=-

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

DALTON REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30. 1994
BOARD MEMBER ADDRESS
Ms. Dale Cook, Chairman(*) 1602 Beverly Drive Dalton, Georgia 30720 Ms. Louise Baxter(*) Route 10, Box 17 Ringgold, Georgia 30736 Ms. Joyce Brownlee(*) 135 Devonwood Drive Calhoun, Georgia 30701 Ms. Sylvia Brumbelow(*) 184 Dogwood Drive Calhoun, Georgia 30701 Ms. Edna Jo Butler(*) 1034 North Long Avenue Chatsworth, Georgia 30705 Ms. Karen Daniel (*) Route 6, East Sharon Circle Ringgold, Georgia 30736 Dr. Norma Gordon (*) 751 Nelson-Kyle Road Dalton, Georgia 30721 Ms. Anne Smith 705 Courtland Drive Dalton, Georgia 30720 Ms. Beverly Whitfield(*) 1903 Villa Way Dalton, Georgia 30720
(*) Denotes Board Members Serving as of June 30, 1994
Note: As of June 30, 1994, one position was vacant.
See notes to the general purpose financial statements.
- 23 -

SCHEDULE "8"

DALTON REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "9"

PERSONNEL
---------
Armstrong, Brewer, Cavender, Cochran, Cody, Cook, Davis, Duke, Dunn, Flood, Gledhill , Harmon, Hoole, Jones, Litton, Macon, McMahon, Osborn, Pearce, Roberts, Scott, Wi 11 i ngham,

Carolyn Kimberly Eugenia Phyllis T. Sara Elizabeth Mary Ann Wendy R. Betty Jean Dorothy Nancy Joan Sharon Julia K. Martha D. Charlie Linda Deborah P. Connie Elizabeth Sheila Dana Barbara J. Carla Ann

POSITION
--------
Librarian Bookkeeper Director Bookkeeper Extension Librarian Shelver Student Aide Processing Clerk Clerk Clerk Secretary Librarian Librarian Custodian Librarian Librarian Clerk Clerk Clerk Clerk Shelver Student Aide

Accruals June 30, 1994

SALARIES

TRAVEL

------------- -------------

$ 30,550.80 $

269.77

15,464.73

47,330.40

1,288.72

810.00

27,960.00

575.41

102.00

9.45

539.92

5,242.38

15,860.10

14,770.62

14,750.49

26,354.40

102.27

37,972.80

119.80

8,563.20

37,972.80

321.31

37,372.80

43.91

14,940.96

13,833.18

6,058.80

11,520.52

3,204.51

764.81

------------- -------------

$ 371,940.22 $ 2,730.64

2,924.00

0.00

------------- -------------

$ 374,864.22 $ 2,730.64
============= =============

See notes to the general purpose financial statements. - 24 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

DALTON REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Delinquent Program Reports Finding Resolved Audit Control Number 7552-93-02
The audit report for the year ended June 30, 1993, stated that the Library failed to file final completion reports by the required date for the Library Services and Construction Act (LSCA) - Title I - Public Library Services Program (CFDA 84.034), in accordance with regulations established by the Georgia Department ofEducation. For the year under review, the final completion report for the program was filed in a timely manner as required.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7552-93-01
The audit report for the year ended June 30, 1993, noted that the Library did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, no action was taken by the Library to establish this account group due to lack of guidance on this matter from the Georgia Department of Education. 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 implement and maintain a General Fixed Assets Account Group for inclusion in the accounting records. Subsidiary records should be established for land, buildings, equipment and inexhaustible collections and books owned by the Library. Detailed records should be maintained of all additions and deletions for each class offixed assets that comprise this group.
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7552-94-01
For the year under review, our audit disclosed that the Library had not provided for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. This deficiency was a result of management not assigning employee duties in a manner to adequately safeguard assets and/or promote efficiency and accuracy in key accounting functions. The management of the Library should formulate and implement changes in personnel to achieve an adequate system ofinternal control of key accounting functions.

DALTON REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
EXPENDITURES/LIABil.JTIES/DISBURSEMENTS Improper Expenditure Amount: $42.75 Audit Control Number 7552-94-02
For the year under review, an expenditure of$42.75 was made from the Library Services and Construction Act, Title I- Public Library Services Program (CFDA 84.034) for the payment of meals for a consultant and two Library employees. This disbursement does not appear to be a proper expenditure ofFederal financial
assistance funds in accordance with criteria as defined in the Office ofManagement and Budget Circular A-87.
This improper expenditure occurred because management claimed to not be aware ofthe specific limitations
imposed by 0MB Circular A-87. The Georgia Department of Education should review this matter to determine the allowability ofthis expenditure.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Voucher Sample Exceptions Amount: $190.57 Audit Control Number 7552-94-03
For the year under review, an examination of expenditure vouchers was performed to test the validity and accuracy ofthe expenditure transactions. The vouchers examined revealed that two vouchers totaling $190.57 did not contain supporting documentation. Internal controls should be implemented by the Library to ensure
that all expenditures are reviewed for accuracy and proper documentation prior to payment and recording in
the financial records.
PROCUREMENT
Inadequate Purchasing Procedures Audit Control Number 7552-94-04
For the year under review, the Dalton Regional Library was awarded a State Lottery Program grant of $122,500.00 to purchase computer and media equipment. As a prerequisite to the grant award, the Library developed a Technology Plan for the library system. The Library agreed to pre-conditioned assurances in implementing the Technology Plan which was subsequently approved by the Georgia Department of Education, Division of Library Services. During the course of this audit, an examination of the business transactions conducted by the Library involving Lottery Program funds revealed that prudent business practices were not followed. The questioned business practices of the Library are enumerated as follows:
I) The Library entered into an agreement with Multiprise, Incorporated, Orange Park, Florida, to purchase equipment according to their bid proposal. Mr. Laurin Cavender, represented Multiprise as their principal agent and conducted virtually all business transactions with the Library. Mr. Cavender is the son of Mrs. Eugenia Cavender, Director of the Dalton Regional Library.

DALTON REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
PROCUREMENT Inadequate Purchasing Procedures Audit Control Number 7552-94-04
a) The bidding procedures utilized by the Library in selecting Multiprise, Incorporated as the successful bidder did not reveal evidence or documentation that bids were received from multiple vendors. The Library's policy on bid procedures states, in part, as follows:
" ... It is the intent of the Library to award a contract to the lowest responsible bidder provided the bid has been submitted in accordance with the requirements ofthe bidding documents. Low bidder will be determined by considering the base bid and the facts that the equipment and/or other services meet or exceed the specifications in the invitation."
The Library should abide by their established purchasing policies to ensure that the requisite conditions of competitive free-market dealings exist so that the Library obtains the lowest competitive market price for equipment purchased.
b) A review of the purchase agreement between Multiprise, Incorporated, and the Library concerning payment of merchandise states, in part, as follows:
" ... You (Library) agree to abide by our printed terms and conditions, and you additionally agree to pay for the merchandise in two equal payments per item so as to cover security deposit. The first payment shall be made upon time of execution of the actual order of each item, as to be received by my office (Multiprise) or agent not later than that date. The second payment shall be received by my office or agent not later than the day of delivery~ upon the turnkey delivery of the merchandise to your specified location. In no event shall payment be received later than that date."
These conditions of payment violate the Library's procedures on terms of payment which states, in part, as follows:
" ... The Library will be invoiced as the equipment arrives and will make payment within thirty (30) days of the date on each invoice."
The Library should abide by their established purchasing procedures and not make payments to vendors prior to receipt of merchandise.
c) The accounting staff of the Library was instructed by Mr. Laurin Cavender that all checks made payable to Multiprise should be presented to him personally and with the Florida business address to be excluded from the face of the checks. Our examination revealed that thirty (30) checks totaling $108,006.90 were deposited in a local bank account in the name of Multiprise during the period May 26, 1994 through November 29, 1994.

DALTON REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
PROCUREMENT Inadequate Purchasing Procedures Audit Control Number 7552-94-04
The reason for this unusual request is not known.
d) As a part of this audit, a selected sample of significant items of equipment purchased from Multiprise was inspected to determine if prices paid by the Library were comparable to competitive market prices. The average competitive prices used in the analysis were based on specializ.ed knowledge and other pertinent infonnation obtained from prevailing markets at the time ofpurchase. The results ofthe analysis revealed that purchases made by the Library from Multiprise exceeded average competitive prices by 34 to 85 percent.
Internal controls should be implemented by the Library Board to ensure compliance with the Library's established policy on bidding procedures. The Board should monitor the bidding procedures to ensure that all reasonable efforts have been exhausted in obtaining the lowest price from a responsible bidder.
Il) During the course of this examination, an inquiry was sent to Multiprise, Incorporated, to confirm the equipment sales to the Library. This inquiry, as confirmed by Mr. John Cantrell, Vice President of Multiprise, indicated that only the two-way radios and related radio equipment were sold by his firm to the Library. Based on this confirmation, we can only conclude that all other equipment such
as personal computers, printers, terminals and related equipment were purchased from sources other
than Multiprise, Incorporated.
All equipment purchases should be made from reputable sources that will provide service and warranty for the equipment. The Library should inspect all equipment to ensure that relevant paperwork, manuals and warranties are included with each item of equipment.
ill) During the course of this examination it came to our attention that the Library has purchased computer equipment, software, and supplies from Telesensor, which is another business represented by Mr. Laurin Cavender.
a) Dupng the period under review, payments totaling $4,399.41 for computer equipment, software and various other supplies were made to Telesensor. Further review disclosed that additional purchases of $5,001.55 were made from Telesensor in prior fiscal years. Our examination revealed there was no record ofTelesensor being currently registered with the Georgia Secretary of State's office. A further review indicated there was no business license issued from the City ofDalton, Georgia in the name ofTelesensor.
The Library should conduct business with only licensed and reputable establishments.

DALTON REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
PROCUREMENT Inadequate Purchasing Procedures Audit Control Number 7552-94-04
b) Our audit also disclosed a payment by the Library of$2,465.00 to Wachovia Bank to purchase
a certified check in a like amount made payable to Telesensor. The Library negotiated this certified check to Telesensor for the purchase of computer equipment.
It is not known at this time the reason for this unusual method of payment.
IV) The Library purchased sixteen (16) two-way radios, one antenna tower and other related radio equipment as approved in the Technology Plan. However, the intent and purpose of this equipment is not specific in the Technology Plan as to the implementation and benefit to the Library system.
The Georgia Department ofEducation should review this matter to ensure that the radio equipment is capable of accomplishing the goals ofthe Library.
In summary, the Dalton Regional Library has violated numerous procedures contained within their established
policy on purchasing and has not utilized prudent business procedures in the use of State Lottery Program
funds. The Library Board ofDirectors should take appropriate action to strengthen internal controls to ensure that all policies of the Library are adhered to. In addition, procedures should be implemented to closely
monitor business transaction~ of the Library.

SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

DALTON REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7552-93-01
We concur with this finding and will consider recording the general fixed assets in our accounting records upon
receipt ofinstructions and guidance from the Georgia Department ofEducation on this matter.
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7552-94-01
We concur with finding. The Library will restructure employee duties in key accounting functions in order to achieve a higher degree of internal control to resolve this finding.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Amount: $42.75 Audit Control Number 7552-94-02
We concur with this finding. The Library will await review by the Georgia Department of Education to determine the allowability of this expenditure. We will resolve this finding upon their recommendation.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Voucher Sample Exceptions Amount: $190.57 Audit Control Number 7552-94-03
We concur with this finding. The Library will strengthen accounting controls to ensure that all vouchers have
appropriate documentation.
PROCUREMENT Inadequate Purchasing Procedures Audit Control Number 7552-94-04
We concur with this finding and the Library board will take appropriate action upon further evaluation ofthis matter.