Audit report, Desoto Trail Regional Library, Camilla, Georgia, year ended June 30, 1995

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

AUDIT REPORT DESOTO TRAIL REGIONAL LIBRARY
CAMILLA, GEORGIA YEAR ENDED JUNE 30, 1995

DESOTO TRAIL 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 AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

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

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 CASH AND CASH EQUIVALENTS

16

2 ACCOUNTS RECEIVABLE

17

SCHEDULE OF REVENUE

3

STATE

18

4

FEDERAL

19

5

LOCAL AND OTHER

20

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

21

7

LOTTERY PROGRAMS

22

8 MEMBERSHIP OF LIBRARY BOARD

23

9 SCHEDULE OF SALARIES AND TRAVEL

24

DESOTO TRAIL REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 26, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Desoto Trail 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 Desoto Trail Regional Library, as of and for the year ended June 30, 1995, 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 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 omission have not been determined, but are believed to be material.
95ARL-42

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 present fairly, in all material respects, the financial position ofthe Desoto Trail Regional Library as ofJune 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Desoto Trail 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 Desoto Trail 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, 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 of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 95ARL-42

DESOTO TRAIL REGIONAL LIBRARY - 1-

l:2;;SOTO TRAIL Rl;GIONAL l,IBMBY
!;.OMBINED BALANCE SHEET
& FY~Q TYPES AND ACCOUNT !;?ROUP
JUNE30 1995

EXHIBIT"A"

~ Cash and Cash Equivalents
Accounts Receivable
Amount to be Provided in Future Years For Payment of Compensated Absences

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
!Memorandum OnM
JUNE 30, 1995 JUNE 30, 1994

$ 83,987.18

$ 63,495.75

$ 147,482.93 $ 110,784.44

4,000.00 $ 17,000.00

21,000.00

6,399.06

$

48,684.11

48,684.11

35,308.62

Total Assets

$ 87,987.18 $ 17,000.00 $ 63,495.75 $

48,684.11 $ 217,167.04 $ 152,492.12

Llael!.!IIES ~C! FU~Q EQUITY

!.!ABILITIES

Cash Overdraft

Accounts Payable

$

Deferred Revenue

Compensated Absences

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Fund Equity

$

$ 89.49 89.49 $
87,897.69 $ 87,897.69 $

7,000.00 10,000.00 17,000.00
$ 0.00 0.00 $

$ $
63,495.75 0.00
63,495.75

$
48,684.11 48684.11 $

7,000.00 89.49 $
10,000.00 48684.11
65,773.60 $

21,509.39 7,591.59
35,308.62
64,409.60

$ 63.495.75 87,897.69 $
$ 151,393.44 $

88,082.52 88,082.52

Total Liabilities and Fund Equity $ 87,987.18 $ 17,000.00 $ 63,495.75 $

48,684.11 $ 217,167.04 $ 152,492.12

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

DESOTO TRAIL REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995

EXHIBIT"B"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Tolal Expenditures
Excess of Revenues over (under) Expenditures
Oit!l;R FINANCING SOURCES (!JSES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum On!Y.}
YEAR ENDED JUNE 301 1995 JUNE 30, 1994

$ 287,298.32 $ 150,676.26
$ 437,974.58 $

8,691.59 20,200.94
$
28,892.53 $

$ 82,052.58 82,052.58 $

295,989.91 $ 20,200.94
232,728.84
548,919.69 $

392,184.29 17,799.06
157,175.20
567,158.55

$ 324,674.77 $ 17,925.19 44,734.86 548.86 45,721.19

$ 433,604.87 $

$

4,369.71 $

23,150.88 $
34.49 10,261.70
33,447.07 $ -4,554.54 $

$ 25.46
18,531.37 18,556.83 $ 63,495.75 $

347,825.65 $ 17,950.65 44,734.86 583.35 55,982.89 18,531.37
485,608.77 $
63,310.92 $

313,156.35 32,242.44 36,497.99 377.47 184,823.67
567,097.92
60.63

$

$

-4,554.54

$

-4,554.54 $

$

-184.83 $

88,082.52

4,554.54 4,554.54
0.00 $ 0.00

$

4,554.54

-4,554.54

$

0.00

63,495.75 $ 0.00

63,310.92 $ 88,082.52

60.63 88,021.89

FUND BALANCE JUNE 30

$

87,897.69 $

0.00 $

63,495.75 $ 151,393.44 $

88,082.52

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

i
[J\O_.f\ <

DESOTO TRAIL REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

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
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994

.GENERAL FUND

BUDGET

ACTUAL

$ 287,298.32 $ 287,298.32

170,710.20

150,676.26

$ 458,008.52 $ 437,974.58

$ 419,487.62 $ 324,674.n

17,925.19

44,734.86

548.86

97,165.90

45,721.19

$ 516,653.52 $ 433,604.87

$ -58,645.00 $

4,369.71

$

0.00

$

-4,554.54

$

0.00 $

-4,554.54

$ -58,645.00 $ 71,214.58

-184.83 88,082.52

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

8,691.59

$ 17,000.00

20,200.94

$ 17,000.00 $ 28,892.53

$ 23,150.88

$ 17,000.00

34.49 10,261.70

$ 17,000.00 $ 33,447.07

$

0.00 $ -4,554.54

$

0.00 $

4,554.54

$

0.00 $

4,554.54

$

0.00 $

0.00

26,820.47

0.00

FUND BALANCE JUNE 30. 1995

$ 12,569.58 $ ===87,=89=7.6=9

$ 26,820.47 $ ====0.0=0

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

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Desoto Trail 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 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. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The more significant of the 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 of the above criteria, the Desoto Trail Regional Library is determined to be a joint venture.
The Library Board consists of 20 members; 2 members appointed by the Baker County Board ofEducation, 1 member appointed by the Baker County Commissioners, 2 members appointed by the City of Camilla, 1 member appointed by the City ofPelham, 2 members appointed by the City of Sylvester, 3 members appointed by the Early County Board ofEducation, 1 member appointed by the Early County Commissioners, 2 members appointed by the Mitchell County Board of Education, 2 members appointed by the Mitchell County Commissioners, 2 members appointed by th.e Worth County Board of Education, and 2 members appointed by the Worth County Commissioners. The 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 of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating government agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.

The Desoto Trail Regional Library is located in Camilla, Georgia, and serves Baker, Early, Mitchell, and

Worth Counties.



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 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.

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DESOTO TRAIT., REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 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 (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 ofmajor capital facilities, as funded by Georgia State Financing and Investment Commission Project No. 7012-955-SB-004.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences 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.

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DESOTO TRAIL REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of the 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.
BUDGET
The Desoto Trail 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 of the budget at any level. The budget for all governmental funds is prepared by fund, function, and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared 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 Georgia Department of Education, Division ofPublic Library Services 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 ofdeposits (including certificates of deposit, savings and N.O.W. accounts) 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.

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DESOTO TRAIL REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist of grant reimbursements due from Federal grantors for expenditures made but not reimbursed and allotted funds from participating local governments. 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 ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following types 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.
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 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
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. 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 of the public funds being

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DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:rvmNTS

JUNE 30, 1995

Note 2: DEPOSITS
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 of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the 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
(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 and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, 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, 1995, the bank balances were $157,956.23. The bank balances were entirely covered by Federal depository insurance.
Note 3: RISK MANAGEMENT
The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.

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DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 3: RISK MANAGEMENT

The Library has obtained commercial insurance for risk of loss associated with torts and assets. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any ofthe past three years.

The Library has elected to self-insure for all losses related to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to errors or omissions in the past three years.

The Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to natural disaster 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 expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonbly determined. The Library has not incurred any liabilities for unemployment compensation during the past two years.

The Library participates in the Association County Commissioners of Georgia-Group Self-Insurance Worker's Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement, and administer a program ofworkers' 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 Midwest Employers Casualty to provide coverage for potential losses sustained by the Fund in excess of $400,000.00 loss per occurrence, up to $2,000,000.00.

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

Balance July 1, 1994 Additions
Leave Earned and Utilized (Net) Balance June 30, 1995 Note 5: CONTINGENT LIABILITIES

Compensated Absences
$ 35,308.62
13,375.49 $ 48,684.11

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.

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DESOTO TRAIL REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: ACCUMULATED EMPLOYEES' LEAVE
The employees of the Library may earn up to two and one-half days of annual leave each month, depending upon the length ofemployment, with a maximum accumulation of 75 days. Unused annual leave is paid to the employee upon retirement or termination ofemployment at their current pay rate. See Note 1 - Compensated Absences.
Note 7: 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 in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years ofservice 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 of years 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, 1995, was $259,919.92; total payroll was $284,449.75.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS

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DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS

Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, the TRS Library employer contribu~ion rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $43,692.88, of which $30,696.64 was made by the Library and $12,996.24 was made by employees. These contributions represented 11.81% (Library) and 5% (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, 1994, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058,958,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. 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, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $30,696.64 was actuarially determined and represented .0054% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 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.

Note 8: SURETY BONDS

The Library Director, Mr. G. R. Mitchell and the Treasurer, Mrs. Gloria Loveless, are bonded in the amount of$10,000.00 each with the Western Surety Company, Sioux Falls, South Dakota, their Bond Nos. 60235379 and 60330642, respectively, on which premiums were paid through January I, 1996.
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DESOTO TRAIL REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE30 1995

EXHIBITE

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Deferred Revenue
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

LOTTERY PROGRAMS

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLEI PUBLIC LIBRARY
SERVICES

TOTALS JUNE 301 1995 JUNE 301 1994

$

10,000.00

$

10,000.00 $

29,015.93

_ _ _ _ _ $ _ _ _ _1_1..:,_.,000_.oo_

17,000.00

1,799.06

$

10,000.00 $

17000.00 $

s___ 21 000.00

30_._s1_4_.99_

1

$

$

10,000.00

$

10,000.00 $

17,000.00 $ 17,000.00 $

17,000.00 $ 10,000.00 27,000.00 $

1,799.06 21,424.34
7,591.59
30,814.99

0.00

$

10,000.00 $

0.00

0.00

0.00

17 000.00 $

s _ _ 21 000.00

30_,s_1_4_.99_

1

See notes to the general purpose financial statements.

-14 -

DESOTO TRAIL REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"F"

REVENUES State Funds Federal Funds Total Revenues
EXPENDITURES Current Program Seivices Administration Maintenance and Operations Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES
Operating Transfers In Excess of Revenues and Other Financing
Sources over (under) Expenditures FUND BALANCE JULY 1
FUND BALANCE JUNE 30

LOTTERY PROGRAMS

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLEI PUBLIC
LIBRARY SERVICES

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

8,691.59

$

$

8,691.59 $

$ 20,200.94
20,200.94 $

8,691.59 $ 20,200.94
28,892.53 $

114,908.41 17,799.06
132,707.47

$

$

8,691.59

$

8,691.59 $

$

0.00 $

$

0.00 $

0.00

$

0.00 $

23,150.88 $ 34.49
1,570.11
24,755.48 $
-4,554.54 $

23,150.88 $ 34.49
10,261.70
33,447.07 $
-4,554.54 $

12,267.94 120,439.53 132,707.47
0.00

4,554.54
0.00 $ 0.00

4,554.54
0.00 $ 0.00

0.00 0.00

0.00 $

o.oo s _____o_.oo_

See notes to the general purpose financial statements.

-15-

DESOTO TRAIL REGIONAL LIBRARY CASH AND CASH EQUIVALENTS JUNE 30. 1995

NONINTEREST BEARING ACCOUNT
Pelham Banking Company, Pelham, Georgia

INTEREST BEARING ACCOUNTS

Family Federal Savings Bank, Pelham, Georgia
Money Market Account (Variable)

Pelham Banking Company, Pelham, Georgia
Money Market Account

(3.50%)

Planters and Citizens Bank,

Camilla, Georgia

N.O.W. Accounts

(2.75%)

SunTrust Bank, South Georgia, NA, Albany, Georgia
Certificates of Deposit No. 31466 (7.20%) No. 31467 (5.00%)

OTHER

Petty Cash

SCHEDULE 1

$

454.21

$

4,131.31

63,041.54

22,605.87

35,000.00 15,000.00

139,778.72

250.00 $ 140,482.93

See notes to the general purpose financial statements.

- 16 -

DESOTO TRAIL REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "2"

Early County Board of Education Local Support
Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 4,000.00

$

4,000.00

- - - - - $ 17,000.00

17,000.00

$

4,000.00 $ 17,000.00 $ 21,000.00

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

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE "3"

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

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 217,908.32 37,495.00 31,895.00
$

$
1,100.00 7,591.59

217,908.32 37,495.00 31,895.00
1,100.00 7,591.59

$

287,298.32 $

8,691.59 $ 295,989.91

See notes to the general purpose financial statements.

- 18 -

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1995
AGENCY/FUNDING Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "4"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ _......,_2_0_,2...,0_0._94_

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

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "5"

LOCAL SOURCES Boards of Education Early County Mitchell County Worth County
City Governments Blakely Camilla Pelham Sylvester
County Governments Boards of Commissioners Baker Early Mitchell Worth
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Rents Sales and Services Book Sales Photocopy Sales Miscellaneous

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

4,000.00

6,480.00

20,500.00

7,712.25 14,799.96 15,045.55 17,500.00

$

4,000.00

6,480.00

20,500.00

7,712.25 14,799.96 15,045.55 17,500.00

1,080.00 6,195.00 13,440.00 20,249.96

4,069.00 $ 8,501.68 2,742.07
143.25 60.00
1,432.61 6,655.46
69.47

80,683.01 1,369.57

1,080.00 6,195.00 13,440.00 20,249.96
84,752.01 8,501.68 4,111.64 143.25 60.00
1,432.61 6,655.46
69.47

$ 150,676.26 $ 82,052.58 $ 232,728.84

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

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

SCHEDULE "6''

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees other Expenditures
Nonoperating Costs Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

$ 265,232.47 $ 64,215.91 3,750.00
1,497.88 10,350.74 44,251.29 17,952.77 23,617.06
574.00 729.15

19,217.28 3,933.60
7,059.49 1,570.11
$

$ 25.46

284,449.75 68,149.51 3,750.00 7,059.49 3,067.99 10,376.20 44,251.29 17,952.77 23,617.06 574.00 729.15

1,433.60

11666.59

1,000.00 17,531.37

1,000.00 17,531.37
31100.19

Total Expenditures

$ 433,604.87 $

33,447.07 $

18,556.83 $ 485,608.77

See notes to the general purpose financial statements.

- 21 -

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995

SCHEDULE "7''

EXPENDITURES
Operating Costs Professional and Technical Services
Nonoperating Costs Equipment

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

TOTAL

$

$

1,100.00

7,025.00 $ 566.59

7,025.00 1,666.59

Total Expenditures

$

1,100.00 $

7,591.59 $ ====8=,6=91=.5=9

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

DESOTO TRAIL REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

BOARD MEMBER ADDRESS
Mr. Jimmy C. Davis, Chairman (*) 78 West Bennett Street Camilla, Georgia 31730
Mrs. Evelyn Balcomb (*) Route 1 Blakely, Georgia 31723
Mr. Dale Bryant (*) 120 Redbud Street Blakely, Georgia 31723
Mr. Grover Cleveland (*) 345 Azalea Drive Camilla, Georgia 31730
Mr. Richard Hall (*) Early County Board of Education Blakely, Georgia 31723
Mr. Ernest Harris (*) 407 Main Street Sylvester, Georgia 31791
Mr. Sid Jones (*) Route2 Blakely, Georgia 31723
Mr. Charles Lodge(*) 435 Dogwood Drive Pelham, Georgia 31779
Mrs. Sarah McCray (*) Worth County Board of Education Sylvester, Georgia 31791
Mrs. Grace Miller (*) Highway200 Newton, Georgia 31770
Mr. Scottie Morrell (*) Highway 112 Camilla, Georgia 31730
(*) Denotes Board Members Serving as of June 30, 1995

Mr. Benton Odom (*) Route 2, Box 5 Newton, Georgia 31770
Mrs. Frances Park(*) 602 Isabella Street Sylvester, Georgia 31791
Mrs. Miriam Powell(*) 342 Curry Street Pelham, Georgia 31779
Mr. Tommy Rogers(*) Baker County Board of Education Newton, Georgia 31770
Mrs. Ethel Strangward (*) Green Shutters Lane Sylvester, Georgia 31791
Mrs. Marian Sumner (*) 103 East Kelly Street Sylvester, Georgia 31791
Mr. Bobby Tabb(*) 28 Stephens Street Camilla, Georgia 31730
Mr. Frank Twitty(*) P. 0. Box385 Camilla, Georgia 31730
Mr. Lamar Whittle (*) Scooterville Road Sylvester, Georgia 31791

See notes to the general purpose financial statements.

- 23 -

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "9"

PERSONNEL

Caesar, Crawford, Crosby, Grissom, Hatcher, Jackson, Laird, Loveless, Martin, Mitchell, Mitchell, Parker, Puckett, Rhoads, Rigsby, Starr, Tompkins, Wall, Willis, Wynn, Young,

Monica L. Barbara Joyce Jean Edith Joel Vivian Gloria Wynell G.R. Jane Mary Jane Virginia Catharine Lisa Lacey Ben Brenda Nickalaus Nancy Vickie

POSITION
Page Extension Librarian Bookmobile Librarian Extension Librarian Librarian Audio-Video Specialist Librarian Extension Librarian/Treasurer Bookmobile Librarian Director Page Page Page Page Extension Librarian Page Page Librarian Page Librarian Librarian

SALARIES

$

739.50

33,851.20

9,608.64

32,865.40 $

13,336.68

11,085.12

5,646.00

35,946.60

9,608.64

42,297.56

2,434.80

5,400.00

1,764.00

1,488.00

35,188.20

2,146.00

816.00

13,056.00

4,095.53

9,739.20

13,336.68

TRAVEL 129.99
3,559.53 60.48

$

284,449.75 $===3=,7=5==o=.o=o

See notes to the general purpose financial statements.

- 24 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

DESOTO TRAIT., REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROL (OVERALL) Inadequate Separation ofDuties Audit Control Number 7012-93-01
The audit report for the year ended June 30, 1994, stated that the Library did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7012-93-02
The audit report for the year ended June 30, 1994, noted that the management of the Desoto Trail Regional Library had chose 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 of a 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.
GENERAL LEDGER Failure to Maintain Separate Accountability Audit Control Number 7012-94-01
The audit report for the year ended June 30, 1994, noted that the accounting records of the Library Services and Construction Act - Title I were not maintained on an individual project basis. For the year under review, the Library made some improvements, but still did not adequately maintain the accounting records on an individual project basis. This condition occurred because the Library maintained the salaries and related benefits ofthe Library Services and Construction Act - Title I programs within the accounting records of the General Fund. Each project in this program requires a separate budget and project completion report. Accounting records should be adequately segregated to ensure identification of revenues and expenditures by specific project.

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
GENERAL LEDGER Failure to Maintain Separate Accountability Audit Control Number 7012-95-01
During the year under review, the Library again failed to maintain expenditures for the Lottery Programs on a project-by-project basis, as required.
This deficiency occurred because the Library failed to maintain revenues and expenditures as directed by the Georgia Department of Education. Accounting records should be adequately segregated to ensure identification of revenues and expenditures by individual project.