Audit report, Northwest Georgia Regional Library, Dalton, Georgia, year ended June 30, 1999

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AUDIT REPORT NORTHWEST GEORGIA REGIONAL LIBRARY
DALTON, GEORGIA YEAR ENDED JUNE 30, 1999
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STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

NORTHWEST GEORGIA REGIONAL LIBRARY -TABLEOFCONTENTS-

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, EXPENDITIJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

14

2

LOCAL

15

3 SCHEDULE OF SALARIES AND TRAVEL

16

SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-R400
August 1, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
and Director and Members of the Northwest Georgia Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe Northwest Georgia Regional Library, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Northwest Georgia 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 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 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 aggregate effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material.
99ARL-42A

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 ofthe Northwest Georgia Regional Library as of June 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Northwest Georgia Regional Library taken as a whole. The accompanying financial schedules (Schedules 1 through 3), 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. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

RWH:gp 99ARL-42A

Ru sell W. Hinton State Auditor

NORTIIWEST GEORGIA REGIONAL LIBRARY

NORTHWEST GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1999

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Amount to be Provided in Future Years
For Payment of: Capital Lease Agreements Compensated Absences
Total Assets

GENERAL FUND

GOVERNMENTAL FUND SPECIAL REVENUE FUND

$

0.00

$

138,026.19

15,861.40

$

153,887.59 $ =====.;,O;,;;,.O~O

LIABILITIES AND FUND EQUITY .
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

13,113.58

22.06

100.00

2,622.57

$

15,858.21

$

138,029.38 $

0.00

$

138,029.38 $

0.00

Total Liabilities and Fund Equity

$

153.887.59 $======0,=0=0

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

$

189,555.95

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30,1999

JUNE 30,1998

$

189,555.95 $

823,611.26

138,026.19

38,919.28

15,861.40

$

3,124.37

3,124.37

9,600.57

27,542.96

27,542.96

21,452.37

$

189,555.95 $

30,667.33 $

374,110.87 $===8=93:J,;,5=8=3.=48==

$

50,000.00

$

$

50,000.00 $

$
3,124.37 27,542.96 30,667.33 $

13,113.58 22.06 100.00
2,622.57 $ 50,000.00
3,124.37 27,542.96
96,525.54 $

1.17 111,015.43 70,455.11
9,600.57 21,452.37
212,524.65

$

139,555.95

0.00

$ _ _---.:.1.=.:39::.!.,5:::,:5::.::5.:.::.9;.::.5

$

189,555.95 $

$

$

139,555.95

138,029.38

$

277,585.33 $

936.63 460,615.09
219,507.11
6;:;.;;8:;..;.1=,0~5..;;.;8.~83,,-

30,667.33 $

374,110.87 $ ===8=9=3,5,;;;,83;;;,;.4,,;,;8==

-3-

NORTHWEST GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1999

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 3D, 1999

JUNE 3D, 1998

REVENUES

State Funds Federal Funds Local Funds Other Funds

$ 668,688.63 $
393,625.65 148,411.21

0.00 $ 1,800,000.00 $ 17,806.41

2,468,688.63 $
393,625.65 166,217.62

871,025.90 8,600.00
1,592,533.55 93,779.43

Total Revenues

$ 1,210,725.49 $

0.00 $ 1,817,806.41 $ 3,028,531.90 $ 2,565,938.88

EXPENDITURES

Current Public Services Technical Services Circulation Support Services Maintenance and Operation Information Technology
Capital Outlay Debt Service
Principal Interest

$ 733,162.59 48,442.29
248,427.41 60,118.38 195,023.55 $
6,476.20 552.80

$
936.63 $ 2,138,865.55

733,162.59 $ 48,442.29
248,427.41 60,118.38 195,960.18
2,138,865.55
6,476.20 552.80

665,699.19 49,210.76 114,246.56 248,126.48 72,987.75
762,857.54
7,235.75 1,335.68

Total Expenditures

$ 1,292,203.22 $

936.63 $ 2,138,865.55 $ 3,432,005.40 $ 1,921,699.71

Excess of Revenues over (under)

Expenditures

$

-81,477.73 $

-936.63 $ -321,059.14 $

-403,473.50 $

644,239.17

FUND BALANCE JULY 1

219,507.11

936.63

460,615.09

681,058.83

36,819.66

FUND BALANCE JUNE 30

$ 138,029.38 $

0.00 $ 139,555.95 $

277,585.33 $ ===6=81,;,;,,0=5;,;;8=.8;:;,3

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

NORTHWEST GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1999

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Local Funds Other Funds

$

641,808.00 $ 668,688,63

379,930.00

393,625.65

38,920.00

148,411.21

Total Revenues

$ 1,060,658.00 $ 1,210,725.49

EXPENDITURES

Current Public Services Technical Services Support Services Maintenance and Operation Information Technology
Debt Service Principal Interest

$ 644,284.00 $ 733,162.59

43,400.00

48,442,29

249,219.00

248,427.41

80,822.00

60,118.38

110,008.00

195,023.55

6,476.20 552.80

Total Expenditures

$ 1,127,733,00 $ 1,292,203.22

Excess of Revenues over (under) Expenditures $

-67,075.00 $ -81,477.73

FUND BALANCE JULY 1,1998

219,507.11

219,507.11

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00 $

0.00

$

0.00 $

0.00

$

918.00 $

936.63

$

918.00 $

$

-918,00 $

936.63

936.63 -936.63 936,63

FUND BALANCE JUNE 30, 1999

$ 152,432.11 $ 138,029.38

$

18.63 $======0.=00;;,

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

NORTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Northwest Georgia Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements ofthe 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 of nine members; four members appointed by Whitfield County Library Board, two members appointed by Catoosa County Library Board, two members appointed by Gordon County Library Board and one member appointed by Murray County Library Board. The Library Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal 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 oflocal and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Northwest Georgia Regional Library is therefore determined to be a jointly governed organization.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the resufts 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. 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 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, 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:

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NORTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 (other than for major capital projects) 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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for compensated absences and capital lease obligations not appropriately accounted for and recorded in other fund types.
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. 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 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.
Expenditures are generally recognized when the related fund liability is incurred.
-7-

NORTHWEST GEORGIA REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the Library's deferred compensation plan, created in accordance with Internal Revenue Code Section 457, was reported as an agency fund. This agency fund had a fund balance of$70,681.58 at June 30, 1998. For fiscal year 1999, the Library converted this plan to a trust in accordance with Federal law enacted on August 20, 1996. Since the Library does not have fiduciary accountability for the Section 457 plan, the assets of this plan will no longer be reported within the Library's financial statements.
BUDGET
The Northwest Georgia Regional Library's budget is a complete financial 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 ofthe 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 of this 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 EQillVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building 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. Donated investments are stated at fair market value. 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 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 ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
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NORTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on 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.
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
Reimbursements of expenditures 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.
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NORTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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 time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 (b) 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 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 ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

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NORTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS

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

CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $419,644.98. The amounts ofthe total bank ~alances 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, 1999, as follows:

Risk Category

Bank Balance

1

$ 300,000.00

2

81,618.79

3

38,026.19

Total

$ 419,644.98

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; natural disaster; and unemployment compensation.

The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the error or omissions policy excludes coverage for sexual harassment and discrimination. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of
the past three years.

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NORTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 3: RISK MANAGEMENT

The Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to this risk in the past three years.

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.

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

Position Covered Director

Amount $ 1.000,000.00

Note 4: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Northwest Georgia Regional Library has entered into various lease agreements as lessee for office equipment. These lease agreements qualify as capital leases for accounting pmposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows:

Capital Leases

Compensated Absences

Balance July 1, 1998

$ 10,849.72 $ 21,452.37

Retroactive Restatement ofPrior Year Balances

-1.249.15

Balance July 1, 1998 - Restated

$ 9,600.57 $ 21,452.37

Additions Annual Leave Earned and Utilized (Net)

6,090.59

Deductions Payments
Balance June 30, 1999

6.476.20 $ 3,124.37 $ 27,542.96

At June 30, 1999, payments due, by fiscal year which includes principal and interest for these items, are as follows:

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NORTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT ltD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 4: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30
2000
Deduct: Imputed Interest
Net Present Value of Future Minimum Lease Payments

Capital Leases $ 3,195.02
70.65
$ 3,124.37

Note 5: ACCUMULATED EMPLOYEES' LEAVE

Employees of the Library earn leave at a rate determined by the length of employment with the Library up to 20 days per year. No more than 10 days may be carried over to the next calendar year. Employees will be paid, at their current rate ofpay, up to the maximum accumulation for all accumulated leave upon retirement or termination of employment. See Note 1 - Compensated Absences

Note 6: 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 byTRS are required by State statute to contribute 5% oftheir 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 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

100% 100% 100%

$ 57,726,79 $ 52,543.06 $ 46,436.17

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NORTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1999

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Maintenance and Operation
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

$

423,300.42

$

10,300.21

120,344.00

114,744.00

_ _ _ _ _ $ _---:..1~,8~00~,O:::.::0~0~.0~0

TOTAL
423,300.42 10,300.21
120,344.00 114,744.00
1,800,000.00

$ 668,688.63 $ 1,800,000.00 $ =====2:1..4=6=8,;:;,6=8=:8.=63=

See notes to the general purpose financial statements.

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NORTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30,1999
LOCAL SOURCES Boards of Education City of Dalton Murray County City Government Dalton County Governments Boards of Commissioners Catoosa Whitfield Local Libraries Calhoun-Gordon County Murray County

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

1,200.00

1,200.00

115,252.46

9,250.00 255,611.79
10,361.40 750.00

$

393,625.65

See notes to the general purpose financial statements.

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NORTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1999

SCHEDULE "3"

NAME
Ausec, Baker, Barthel, Baxter, Bomar, Capps, Chadwyche, Cody, Cox, Crocker, Decker, Forsee, Giberson, Green, Jones Lance, Lewis, Linker, Litton, Macon, McMahon, McPhearson, Moncus, Powell, Reed, Saenz, Smith, Spearman, Spencer, Swanson, Thompson, Whitley, Williams,

Karen J. Ginger Ruth Charles W. Amy Elizabeth Melinda Denise Geoffrey Sara Elizabeth Julie Katherine J. Jennifer L. Joe B. Barbara L. Connie Melinda Charlie, Jr. Dana E. Erik Rita S. Linda Marie Deborah P. Connie Diana John L. Yvette A. Colleen Rebecca Ann Carol Hackney Cynthia A. Stephanie L. Kirklin E. Linda M. Teresa D. Deborah D. Kimberly Renee

Accrual June 30, 1999

Totals per Report

TITLE CATEGORY
Public Services Clerk Public Services Clerk Public Services Clerk Public Services Clerk Public Services Clerk Public Services Clerk Public Services Clerk Public Services Librarian Public Services Clerk Public Services Clerk Children's Assistant Librarian Director Children's Librarian Public Services Clerk Maintenance/Custodian Bookmobile Clerk Electronic Services Librarian Assistant Director Reference Librarian Public Services Librarian Bookmobile Clerk Audio-Visual Librarian Spanish Interpretor Technical Services Clerk Public Services Clerk Public Services Clerk Technical Services Coordinator Electronic Services Clerk Electronic Services Librarian Regional Secretary Public Services Clerk Public Services Clerk Bookkeeper

SALARIES

TRAVEL

$

976.20

971.66

246.00

264.00

3,989.44

61.80

3,297.92

10,588.32

1,114.03

8,819.99

4,560.00

63,444.10 $

43,599.60

3,168.00

17,867.20

14,313.48

19,725.69

52,344.10

51,144.10

50,406.93

17,556.12

50,544.10

714.00

12,015.24

1,746.50

379.50

17,946.72

7,782.66

13,563.78

17,064.84

350.20

4,464.00

20,864.52

5,389.00 1,037.24
204.00 519.50
64.25
42.50 617.05 148.00
291.00

$

515,894.74 $

8,312.54

100.00

$

515,994.74 $===8=,3=1=2=.5=4

See notes to the general purpose financial statements.

- 16-

SECTION II FINDINGS AND QUESTIONED COSTS

NORTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 1999
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7552-93-01
The audit report for the year ended June 30, 1998 noted tr.at the management of the Northwest Georgia Regional Library had chosen not to 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, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the 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 of all additions and deletions to the General Fixed Assets Account Group.
CASH AND CASH EQUNALENTS Uncollateralized Deposits Finding Control Number: 7552-98-01
The audit report for the year ended June 30, 1998, noted that the Northwest Georgia Regional Library failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any time in depository for a time longer than ten days a sum of money belonging to the public body when such depository has
not given bond to the public body as set forth in this code section...The aggregate of the face value of
such surety bond, and the market value of securities pledged, shall be equal to not less than 11 percent of the public funds being secured after the deduction of the amount of deposit insurance."
In the year under review, the Library again failed to have its bank balances fully collateralized.
This noncompliance occurred because ofmanagement's failure to adequately monitor the collateralization of balances at individual banks. The library should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.