Audit report, Desoto Trail Regional Library, Camilla, Georgia, year ended June 30, 1997

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AUDIT REPORT DESOTO TRAIL REGIONAL LIBRARY
CAMILLA, GEORGIA YEAR ENDED JUNE 30, 1997

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

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DESOTO TRAIL REGIONAL LffiRARY

-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, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

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

SCHEDULE OF REVENUE

1

STATE

16

2

FEDERAL

17

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

18

4 SCHEDULE OF SALARIES AND TRAVEL

19

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

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 15, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education
and Director and Members of the 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 accompanying general-purpose financial statements of the Desoto Trail Regional Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Desoto Trail 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 fmancial 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.

97ARL-42

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 referred to above present fairly, in all material respects, the financial position of the Desoto Trail Regional Library as of June 30, 1997, 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 ofthe Desoto Trail Regional Library taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 4), as listed in thetable 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 of the general-purpose fmancial statements and in our opinion is fairly presented in all material respects in relation to the generalpurpose 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,
~~
Claude L. Vickers State Auditor
CLV:ds 97ARL-42

DESOTO TRAIL REGIONAL LffiRARY

DESOTO TRAIL REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1997

ASSETS 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

$ 90,424.52 $

343.10 $

51,670.78

Total Assets

$ 90,424.52 $

343.10 $===51=,6...7.::::0=.7=8

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For State Capital Outlay Project Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

274.77

$

274.77

$
$ 90,149.75 $ 90,149.75 $

343.10 $
0.00
343.10 $

51,670.78 0.00
51,670.78

$ 90,424.52 $

343.10 $ =====51=,6=7=0=.7=8

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

EXHIBIT "A"

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30,1997 JUNE 30, 1996

$

142,438.40 $

144,405.42

23,023.33

$

60,861.79

60,861.79

52,090.67

$ ====6.::.l0,=86...1.=.7==9 $

203,300.19 $ =====2:=19:.l:,5==:1:=.9=.4=2

$

17,000.00

$

274.77

94.38

$

--::;;60~,8=..:6:..:1..:.:7..,,;:;.,9

60,861.79

52,090.67

$

--::;;60~,8=..:6:..:1..:.:..7,,;:;.,9 $

61,136.56 $ _ _...;;;.69.;...\".,;,.;18=5=.0~5

$

343.10

51,670.78 $

49,295.15

90,149.75

101,039.22

$

142,163.63 $ _---'1...;;;.50.;...\,,3.;;...;34~.3..;...7

$====6=0=,8=6:=1.:=79=$

203,300.19 $ =====2:=19=,=51:=.9=.4=2

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DESOTO TRAIL REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1997

EXHIBIT"B"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
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 Only)
YEAR ENDED JUNE 30,1997 JUNE 30,1996

$ 318,918.32 $ 162,299.13
$ 481,217.45 $

7,400,00 $ 17,000,00

468,000.00 $ 1,434.73

24,400.00 $ 469,434.73 $

794,318,32 $ 17,000,00
163,733.86
975,052,18 $

311,018,20 17,000,00
155,163.42
483,181,62

$ 346,140,63 $ 27,802,62 52,062.42 997,74 65,103,51
$ 492,106,92 $
$ -10,889.47 $

10,085,44

$

13,120,00

851.46 $ 467,059.10

24,056.90 $ 467,059,10 $

343,10 $

2,375,63 $

356,226,07 $ 40,922,62 52,062.42
997,74 65,954,97 467,059.10
983,222,92 $
-8,170,74 $

353,699.42 21,554,24 48,905,22 579,17 43,386,79 16,115,85
484,240,69
-1,059,07

$ -10,889.47 $ 101,039.22

$

7,131.79

-7,131.79

$

0.00

343,10 $ 0,00

2,375.63 $ 49,295.15

-8,170.74 $ 150,334,37

-1,059,07 151,393,44

FUND BALANCE JUNE 30

$ 90,149.75 $

343.10 $ 51,670.78 $

142,163.63 $

150,334,37

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

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "C"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE30, 1997

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 317,281.37 $ 318,918.32

183,550.12

162,299.13

Total Revenues

$ 500,831.49 $ 481,217.45

EXPENDITURES

Current Program Services Technical Services Circulation Administration Maintenance and Operations

$ 465,099.00 $ 346,140.63

27,802.62

52,062.42

997.74

97,165.90

65,103.51

Total Expenditures

$ 562,264.90 $ 492,106.92

Excess of Revenues over (under) Expenditures $ -61,433.41 $ -10,889.47

FUND BALANCE JULY 1.1996

105,939.34

101,039.22

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

7,400.00 $

7,400.00

17,000.00

17,000.00

$ 24,400.00 $ 24,400.00

$

7,400.00 $ 10,085.44

13,120.00

17,000.00

$ 24,400.00 $

$

0.00 $

-16,647.28

851.46 24,056.90
343.10 0.00

FUND BALANCE JUNE 30,1997

$ 44,505.93 $ 90,149.75

$ -16,647.28 $===34==3.=10=

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

THIS PAGE LEFT BLANK

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Desoto Trail 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 22 members; 2 members appointed by the Baker County Board of Education, 1 member appointed by the Baker County Commissioners, 2 members appointed by the City of Camilla, 1 member appointed by the City of Pelham, 2 members appointed by the City of Blakely, 2 members appointed by the City of Sylvester, 2 members appointed by the Early County Board ofEducation, 2 members 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 the 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 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 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 therefore determined to be a joint venture.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set 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.

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DESOTO TRAIL REGIONAL LIBRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general purpose financial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 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 (Le., revenues and other financing sources) and decreases (Le., 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
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DESOTO TRAIL REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Department of Technical and Adult Education 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 of deposits in authorized fmancial 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.
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 accwnulating 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:

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DESOTO TRAIL REGIONAL LillRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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
COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum 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 ofsecurities 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 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 ofthe 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 ofthe State of Georgia,
(4) Bonds, bills, notes, certifIcates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, 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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DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

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 and 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, 1997, the bank balances were $169,432.47. 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 illness or injuries to employees; natural disaster; and unemployment compensation.
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 of the past three years.
The Library has elected to self-insure for all losses related to natural disaster. In addition, the Library has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years.
The Library 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 participates in the Association County Commissioners of Georgia-Self Insured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with Safety National Casualty Corporation to provide coverage for potential losses by the Fund in excess of $450,000.00 loss per occurrence, up to $2,000,000.00.
The Library has purchased surety bonds to provide additional insurance coverage as follows:

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DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 3: RISK MANAGEMENT

Position Covered

Amount

Director Bookkeeper

$ 10,000.00 $ 10,000.00

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Tenn Debt during the fiscal year ended June 30, 1997, were as follows:

Balance July I, 1996
Additions Leave Earned and Utilized (Net)
Balance June 30, 1997

Compensated Absences
$ 52,090.67
8,771.12 $ 60,861.79

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 tenns. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 6: ACCUMULATED EMPLOYEES' LEAVE

The employees ofthe Library may earn up to two and one-half days of annual leave each month, depending upon the length of employment, with a maximum accumulation of 75 days. Unused annual leave, up to the maximum accumulation, is paid to the employee upon retirement or tennination of employment at their current pay rate. See Note 1 - Compensated Absences

Note 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defmed 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.

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DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 7: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS 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 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 34,076.73 $ 31,981.07 $ 30,696.64

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DESOTO TRAIL REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 1997

EXHIBIT"E"

ASSETS Cash and Cash Equivalents Accounts Receivable

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS
JUNE 30.1997 JUNE 30,1996

$

0.00 $

343.10 $

343.10

_____$

17...,:..0_0_0_.0_0

Total Assets

$===0='0=0$

343.10 $ ===3=4=3=.1=0 $ ===17=,0=0=0='0=0

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Program

Unreserved

Undesignated

$

$
0....;..0_0

Total Fund Equity

$----..-;;.O;..;;,.O~O $

$

343.10 $

343.10

0.00 _ _ _ _0_.0..;..0 $

343.10 $

34~3;..;,.1~0 $

17-,-,0_0_0_.0_0
0_.0_0
--..-;;.O....;..O~O

Total Liabilities and Fund Equity $ =====0=,0=0 $

343.10 $

343.10 $

17,000.00

===== ======

See notes to the general purpose financial statements.
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DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "F"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPEC~LREVENUEFUND

YEAR ENDED JUNE 30,1997

REVENUES
State Funds Federal Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services 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

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30,1996

$ 7,400.00

$

$ 17,000,00

$ 7,400.00 $ 17,000.00 $

7,400.00 $ 17,000.00
24,400.00 $

10,000.00 17,000.00
27,000.00

$ 7,400.00 $

2,685.44 $

13,120,00

851.46

$ 7,400.00 $ 16,656.90 $

$

0.00 $

343,10 $

10,085.44 $ 13,120,00
851.46 24,056.90 $
343.10 $

31,208.26 2,577.04 11,18 335.31
34,131,79
-7,131.79

7,131.79

$

0.00 $

343.10 $

343.10 $

0.00

0,00

0,00

0.00

0.00

FUND BALANCE JUNE 30

$ ====0=.00=$ ===34===:3=.1=0$ =====3=4=3,==10=$ =======0==,0==0

See notes to the general purpose financial statements,

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DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1997

SCHEDULE "1"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

. CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS

Technical and Adult Education, Georgia Department of

Public Libraries

Salaries and Travel

$

Library Materials

Maintenance and Operation

Lottery Program

Assistive Technology

249,202.32 37,658.00 32,058.00
$

7,400.00

$ 249,202.32 37,658.00 32,058.00
7,400.00

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

_ _ _ _ $ 468,000.00

468,000.00

$ 318,918.32 $ 7,400.00 $ 468,000.00 $ 794,318.32

See notes to the general purpose financial statements.

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DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30,1997
AGENCY/FUNDING GRANT Education, U. S, Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ====:===~..;.17,;.;,,0=0_0_.0,;,.0

See notes to the general purpose financial statements.

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DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF EXPENDITURES LOTIERY PROGRAM YEAR ENDED JUNE 30, 1997
EXPENDITURES Technical Services Equipment

SCHEDULE "3"
ASSISTIVE TECHNOLOGY $ = = = = 7 ,.4.0.=0==:,0:.=0

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

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1997

SCHEDULE "4"

PERSONNEL

Crawford, Crosby, Grissom, Hatcher, Hill, Jackson, Keaton, Laird, Loveless, Martin, Mitchell, Mitchell, Parker, Puckett, Randall, Rigsby, Starr, Thomas, Varnadoe, Wall, Willis, Wynn, Young,

Barbara Joyce Jean Edith Martisha L. Joel AshleyT. Vivian Gloria Wynell G.R. Jane Mary Jane Virginia Leroy, Jr. Lisa Lacey Kelvin Kathy A. Brenda Nickalaus Nancy Vickie

POSITION
Extension Librarian Bookmobile Librarian Extension Librarian Librarian Page Audio-Video Specialist Page Librarian Extension Librarianrrreasurer Bookmobile Librarian Director Page Page Page Page Extension Librarian Page Page Page Librarian Page Librarian Librarian

SALARIES

TRAVEL

$

39,116.20

9,840.00

37,977.40

15,323.68

1,344.00

11,376.00

2,318.55

5,820.00

40,196.20

9,840.00

47,181.96 $ 3,424.81

4,869.60

5,400.00

1,784.00

365.40

40,565.60

203.74

2,616.00

995.00

960.00

14,496.00

1,022.25

7,304.40

15,323.68

$ 316,035.92 $ 3,628.55

See notes to the general purpose financial statements. - 19

SECTIONll FINDINGS AND QUESTIONED COSTS

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Separation of Duties Finding Resolved Finding Control Number 7012-93-01
The audit report for the year ended June 30, 1996, stated that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. For the year under review, the Library implemented changes in the separation of employee duties such that an improved level of internal controls were in effect.
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Separate Accountability Finding Resolved Finding Control Number 7012-94-01
The audit report for the year ended June 30, 1996, stated that the Library failed to maintain accounting records for the Library Services and Construction Act - Title I program on an individual project basis, as required. During the year under review, the Library adequately maintained segregated accounting records providing for the identification for the project's revenue and expenditures as required.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 7012-93-02
The audit report for the year ended June 30, 1996, noted that the management of the Desoto Trail Regional 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, the Desoto Trail Regional 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 of land, 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.
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DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 1997 CURRENT YEAR EMPLOYEE COMPENSATION Inadequate Personnel Records Finding Control Number 7012-97-01 A sample of five employees' personnel records was examined to test employee compensation. The results of this sample revealed that the personnel records did not include completed W-4 and G-4 withholding authorization forms. This condition was the result of management's failure to review employee personnel records for completeness. The Library should implement procedures to ensure that withholding forms are maintained for all personnel employed by the Library.
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