Desoto Trail Regional Library, Camilla, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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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

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

2

FEDERAL

3

LOCAL

4 SCHEDULE OF SALARIES AND TRAVEL

SECTIOND FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Page
2 4 5 6
14 15 16 17

SECTION I FINANCIAL


!ussELL W. H111omN
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, SW., Suite 214 Atlanta, Georgia 30334-8400
June 28, 2002

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 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 ofand for the year ended June 30, 2001, as listed in the table ofcontents. 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 auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general-purpose financial statements ofthe Library did not contain a General Fixed
Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
2001ARL-42

The aggregate effects on the general-purpose financial statements ofthis variance or omission have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matter
referred to in the third paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Desoto Trail Regional Library as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Desoto Trail Regional Library taken as a whole. The accompanying financial schedules (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Desoto Trail Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
RWH:gp 2001ARL-42

DESOTO TRAIL REGIONAL LIBRARY

DESOTO TRAIL REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items Amount to be Provided in Future Years
For Payment of Compensated Absences

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

$

53,620.96

40,000.00

10,106.14 $

14,442.83

250.00

Total Assets

$

103,727.10 $ _ _ _1=4==,6=9=2-=8=3

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Expired Grant Balances Payable Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Designated for Affiliates Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

$

2,646.31

193.57

$

2,839.88 $

3,963.27 3,963.27

$

$

9,655.04

91,232.18

$

100,887.22 $

10,729.56
0.00 10,729.56

$

103,72710 $===1=4='=,6=9=2=.8=3

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 Onl~l JUNE 301 2001 JUNE 301 2000

$ 53,620.96 $ 138,338.62

40,000.00

41,000.00

24,548.97

7,491.67

250.00

500.00

$

61,645.15

61,64515

56,092.01

$====6=1=,64=5==15= $ 180,065.08 $ 243,422.30

$

3,963.27

2,646.31 $ 57,256.46

193.57

$

61 645.15

61,645.15

56,092.01

$

61,645.15 $ 68,448.30 $ 113,348.47

$ 10,729.56 $ 15,682.95

9,655.04 91,232.18

12,934.21 101,456.67

$ 111,616.78 $ 130,073.83

s====-61_,64ii,,,i::,5=.1=5 s 1ao,os5.os $ 243,422.30

-3-

DESOTO TRAIL REGIONAL LIBRARY COMBJNED STATEMENT OF RE\/ENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TVPES
YEAR ENDED JUNE 30, 2001

EXHIBIT "B"

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES\
Operating Transfers In Operabng Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sourcei. over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum On~l
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 374,029.53 $ 27,000.00 $

3,959 50

178,101.89

31,465.03

41,442 83

$ 587,555.95 $ 68,442 83 $

401,029 53 $ 3,959.50
178,101 89 72,907.86
655,998.78 $

362,361 85
169,018 89 134,756 74
666,137 48

$ 547,079.63 1,372 39 13.23
30,837 27 21,705 17
$

$ 73,44814

$ 601,007.69 $ 73,44814 $

$ -13 451 74 $ -5,005 31 $

547,079 63 $ 1,372 39 13.23
30,837 27 21,705.17 73 44814
674,455.83 $
-18,457.05 $

533,432 57 111.27
10,452 60 29,967.76 57,088.22 12,405.02
643 457 44
22,680 04

$

51.92 $

$

-51 92

$

-51 92 $

51.92 $

51 92 -51.92
0 00

$ -13,503 66 $ -4,953.39 $

114,390 BB

15,682 95

-18,457 05 $ 130,073 83

22,680.04 107,393 79

FUND BALANCE JUNE 30

$ 100,887.22 $ 10,729 56 $ 111,616.78 $=--1=3=0=,0=73=8=3=n

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

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "C"

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL FUND

YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 2000
FUND BALANCE JUNE 30, 2001

BUDGET

ACTUAL

$ 352,541.22 $
168,102.23 50,187.00

374,029.53 3,959.50
178,101.89 31,465.03

$ 570.83045 $ 587,555.95

$ 505,719.24 $
39,870.21 25,241.00

547,079.63 1,372.39 13.23
30,837.27 21,705.17

$ 570,830.45 $ 601,007.69

$

0.00 $ -13,451.74

-51.92

$

0.00 $ -13,503.66

57,321.44

114,390.88

$ 57,321.44 $ 100,887.22

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

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO TI1E GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

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 ofGeorgia. With the exception ofthe departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library.
The Library Board consists of 21 members; 1 member appointed by the Baker County Board of Commissioners, 2 members appointed by the Early County Board of Commissioners, 2 members appointed by the Mitchell County Board of Commissioners, 2 members appointed by the Worth County Board ofCommissioners, 2 members appointed by the City ofBlakely, 2 members appointed by the City of Camilla, 2 members appointed by the City of Pelham, 2 members appointed by the City of Sylvester, 2 members appointed by the Early County Board of Education, 2 members appointed by the Mitchell County Board of Education and 2 members appointed by the Worth County Board of Education. The Library Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State 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 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 ofits 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 ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost ofassets acquired by governmental fund types.
-6-

r:..,.

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general-purpose financial statements account for all State, Federal, Local and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
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 - A financial reporting device used to account for compensated absences.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange trai;isactions, in which the Library gives

-7-

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The 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 ofbudget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSIDON OF DEPOSITS Cash and cash equivalents consist of cash on hand and demand deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
-8-

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

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 Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 2001, are recorded as prepaid items.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.

-9-

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofoperations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
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 ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of 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,
- 10-

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $109,053.90. The bank balances were entirely covered by Federal depository insurance or by collateral held by the Library or the Library's agent in the Library's name.
Note 3: RISK MANAGEMENT
The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees and natural disaster.
The Library has obtained commercial insurance for risk ofloss associated with torts and assets. The Library has neither significantly reduced coverage for 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 participates in the Association County Commissioners ofGeorgia-SelfInsured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with County Reinsurance Limited to provide coverage for potential losses by the Fund in excess of$450,000.00 loss per occurrence, up to $2,000,000.00.
- 11 -

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

DESOTO TRAIL REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 3: RISK MANAGEMENT

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

Position Covered

Amount

Director Bookkeeper/Librarian Assistant Director/Librarian

$ 10,000.00 $ 10,000.00 $ 10,000.00

Note 4: GENERAL LONG-TERM DEBT

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

Compensated Absences

Balance July 1, 2000

$ 56,092.01

Additions Annual Leave Earned and Utilized (Net)

5,553.14

Balance June 30, 2001

$ 61,645.15

Note 5: 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 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 termination of employment at their current pay rate. 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.

- 12 -

DESOTO TRAil., REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 6: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 37,847.76 $ 37,640.76 $ 38,655.22

- 13 -

DESOT:O TRAIL REGIONAL LIBRARY SCHEDU[E.OF STATE REVENUE YEAR ENti"ED JUNE 30, 2001

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office-of Public Library Services Salaries Travel Library Materials Maintenance and Operations
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$ 297,568.36 3,582.41
40,399.32 32,479.44

$ 297,568.36 3,582.41
40,399.32 32,479.44

_ _ _ _ _ $ _ ___,.;;2;;.;.1.,o;..;:;o.;:;.o;.:.o-=-0

27,000.00

$ 374,029.53 $

27,000.00 $ 401,029.53

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

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2001
AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program

SCHEDULE "2"
GOVERNMENTAL FUND TYPE GENERAL FUND
$ -====3::!:,9=5=9=.5=0

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

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

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

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

GOVERNMENTAL FUND TYPE GENERAL FUND

$

5,200.00

12,480.00

27,500.00

7,818.96 20,799.96 18,887.85 27,500.04

1,080.00 12,895.04 16,440.00 27,500.04

$-======11=a='=,1=0.1..=a=g

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

QESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001
.

SCHEDULE "4"

NAME
Crawford, Crosby, Cross, Fischer, Jackson, Klein, Lane, Martin, McNeely, Mitchell, Parker, Randall, Rhoads, Rigsby, Segers, Tum, Varnadoe, Wall, White, Wiggins, Willis, Wynn, Young,

Barbara Joyce Deanna Faye Susan J. Joel Teresa William Brunson Wynell Gary G.R. Mary Jane Leroy Jr. Sharon Lisa MollyK. Jean 0. Kathy A. Brenda Rosie M. Whitney Brooke Nick Nancy Vickie

Accruals June 30, 2000 June 30, 2001

TITLE CATEGORY
Extension Librarian Bookmobile Librarian Support Clerk Certified Librarian Audio-Video Specialist Page Page Bookmobile Librarian Librarian Director Librarian Page Clerical Support Extension Librarian Circulation Libranan Bookkeeper Page Librarian C1rculat1on Librarian Page Page Librarian Libranan

SALARIES

TRAVEL

$ 47,298.34 $ 10,316.70 921.01 25,863.48 11,376.00 11,040.70 3,096.00 10,276.20 38,358.86 56,592.76 12,105.96 661.10 12,500.04 51,870.86 2,860.00 19,085.84 13,279.92 16,896.00 1,136.00 39913 4,694.40 9,017.40 24,999.96

114.28 240.61
90.79 1,838.32
877.89 746.02

$ 384,646.66 $

3,907.91

-367.50 42.00

Totals per Report

$ 384,646.66 $ ==3=,5=8=2=.4=1

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

SECTION II FINDINGS AND QUESTIONED COSTS

DESOTO TRAIL REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7012-93-02
The audit report for the year ended June 30, 2000, 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 Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general-purpose financial statements ofthe Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory 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.
EMPLOYEE COMPENSATION Failure to Maintain Adequate Supporting Documentation Finding Control Number: 7012-00-01
The audit report for the year ended June 30, 2000, noted that the Library could not provide supporting documentation for the leave balances reported on the Library's leave balance system. This condition continued during the year under review and occurred because appropriate leave records were not retained for audit. The Library should establish policies to ensure that subsidiary employee leave records are retained for audit.
CURRENT YEAR
GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: 7012-01-01
For the year under review, accounting procedures for the Desoto Trail Regional Library were found to be insufficient to provide for adequate internal control over the journal entry process. Documentation ofjournal entries entered into the accounting system for fiscal year 2001 was not adequate to document propriety of the adjustments made. This condition was a result of management's failure to adequately monitor and maintain journal entries. The Library should establish appropriate procedures to ensure that journal entries are properly documented and adequately reviewed prior to posting to the general ledger.