Audit report, East Central Regional Library, Augusta, Georgia, year ended June 30, 1996

GA
A<:t>oo
vR\
RLtb
c ~,
c;:..J...
ICicI5-Qt,
AUDIT REPORT EAST CENTRAL GEORGIA REGIONAL LffiRARY
AUGUSTA, GEORGIA YEAR ENDED JUNE 30, 1996
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

EAST CENTRAL GEORGIA REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

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 OOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

15

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

18

2 CASH AND CASH EQUIVALENTS

19

3

~ESTMENTS

20

4 ACCOUNTSRECENABLE

21

SCHEDULE OF REVENUE

5

STATE

22

6

OTHER

23 .

EAST CENTRAL GEORGIA REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

24

8

LOTTERY PROGRAM

25

9 MEMBERSHIP OF LffiRARY BOARD

26

10 SCHEDULE OF SALARIES AND TRAVEL

27

SECTIONll
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

EAST CENTRAL GEORGIA REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION V PERTINENT VIEWS OF RESPONSmLE OFFICIALS PERTINENT VIEWS OF RESPONSmLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 3, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe East Central Georgia Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the East Central Georgia Regional Library, as ofand for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility ofthe 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 and the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets
Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
96ARL-44

The aggregate effects on the general purpose financial statements ofthis variance or omission have not been determined, but are believed to be material.
In o"ur opinion, except for the effects on the general purpose financial statements of the matters referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe East Central Georgia Regional Library as ofJune 30, 1996, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 3, 1997, on our consideration ofthe Library's internal control structure and a report dated February 3, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe East Central Georgia Regional Library taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements of the East Central Georgia Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy 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 of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~,
Claude L. Vickers State Auditor
CLV:dt 96ARL-44

EAST CENTRAL GEORGIA REGIONAL LIBRARY
- 1-

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30.1996

EXHIBIT "A"

~ Cash and Cash Equivalents
Investments
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 Only) JUNE 30, 1996 JUNE 30,1995

$ 505,195.50 $ 3.379.07 $ 15,236.56

$ 523.811.13 $

392,46025

92,332.91

92,332.91

89,920.44

286.11

286.11

$

89,84624

89,846.24

90,503.50

Tolal Assets

$ 597,814.52 $ 3,379.07 $ 15.236.56 $

89,84624 $ 706.276.39 $

572,884.19

LlABILlDES AND FUND EQUITY
L!ABILIDES
Accounts Payable Salaries Payable Expired Grant Balances 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

$ 53,554.59
354.401.98
$ 407,956.57
$ $ $ 189.857.95 $ 189,857.95 $

$ $

3.379.07

3.379.07

0.00 $ 3,379.07 $

15,236.56 15,236.56

$

53.554.59 $

354.401.98

89.84624

89,846.24

89,846.24 $ . 497,802.81 $

450.54 336,241.33
117.14 90,503.50
427,312.51

$

3.379.07 $

1.496.72

55.526.85

$

3,379.07 $

57.023.57

205.094.51 $ 208.473.58 $

88,548.11 145,571.68

Total Liabilities and Fund Equity $ 597,814.52 $ 3,379.07 $ 15,236.56 $

89,846.24 $ 706,276.39 $

572,884.19

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

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1996

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1996 JUNE 30,1995

REVENUES

State Funds Federal Funds other Funds

$ 960,920,46 $ 619,46
1,858,236.52

10,000,00 $ 70,400,00

0,00 $

970,920,46 $ 71,019,46
1,858,236,52

1,097,014.44 52,982,82
1,756,174.86

Total Revenues

$ 2,819,n6,44 $

80,400,00 $

0.00 $ 2,900,176,44 $ 2,906,172,12

EXPENDITURES

Current
Program services Technical services
Circulation Administration Maintenance and Operations capital Outlay

$ 1,822,433,59 $ 578,34 91,40
687,085.05 193,041,66

78,517,65 $

$ 55,526,85

1,900,951.24 $ 578.34 91,40
687,085.05 193,041.66 55,526.85

2,154,433,12 1,498.11 7,095,47
617,791,86 209,718,35
28,275,16

TotalExpend~ures

$ 2,703,230,04 $

78,517,65 $

55,526,85 $ 2,837,274,54 $ 3,018,812,07

Excess of Revenues over (under) Expend~ures $

116,546,40 $

1,882,35 $ -55,526,85 $

62,901,90 $ -112,639,95

FUND BALANCE JULY 1. 1995

73,311.55

1.496,72

70,763.41

145,571,68

258,211.63

FUND BALANCE JUNE 30,1996

$ 189,857,95 $

3,379,07 $

15,236,56 $ 208,473,58 $

145,571,68

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

EAST CENTRAL GEORGIA REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1996

EXHIBITC

REVENUES
State Funds Federal Funcls Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1995

GENERAL FUND

BUDGET

ACTUAL

$ 9n,362,63 $ 1,599,569.00

960,920,46 619,46
1,858,236.52

$ 2,576,931,63 $ 2,819,n6.44

$ 1,799,620.44 $ 579.00
689,381.63 210,831.01

1,822,433,59 578.34 91.40
687,085.05 193,041.66

$ 2,700,412.08 $ 2,703,230.04

$ -123,480.45 $ 116,546.40

42,237.04

73,311.55

FUND BALANCE JUNE 30, 1996

$ -81,243.41 $ 189,857.95

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 10,000,00 $ 10,000.00

45,100.00

70,400.00

$ 55,100,00 $ 80,400.00

$ 56,596.72 $ 78,517,65

$ 56,596.72 $ 78,517.65

$

-1,496,72 $

1,882.35

1,496.72

$

-1,496.72 $

3;;;,:,,3;.;.79.;,;;,0.7.

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

EAST CENTRAL GEORGIA REGIONAL LmRARY

EXInBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The East Central Georgia 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 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 Governmental Accounting Standards Board (GASB) is the accepted standardsetting 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 governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the East Central Georgia Regional Library is determined to be a joint venture.
The Library Board consists of 12 members; 1 member elected by Burke County Library Board, 2 members elected by Columbia County Library Board, 1 member elected by Glascock County Library Board, 1 member elected by Lincoln County Library Board, 6 members elected by Richmond County Library Board and 1 member elected by Warren County Library Board. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in hbrary services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The East Central Georgia Regional Library is located in Augusta, Georgia, and serves Burke, Columbia, Glascock, Lincoln, Richmond, and Warren Counties.
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.

- 5-

EAST CENTRAL ,GEORGIA REGIONAL LffiRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1996

Note 1: 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 confonn 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 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 acqqisition or construction ofmajor capital facilities.

ACCOUNT GROUP

GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences.

BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is detennined 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 r e s o u r c e s . . .

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-Tenn Debt Account Group.

- 6-

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1996

Note 1: SUMf\1ARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when tJ;1ey become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The East Central Georgia Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure 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 savings 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library are stated at cost.

- 7-

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist of grant reimbursements due from a State grantor for expenditures made but not reimbursed. 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 type of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, cash flows 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 ofthis data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent of the public funds being
secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an off.i.cer
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:
- 8-

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS AND INVESTMENTS
(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 ofindebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the 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 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 ofindebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Centrat'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, 1996, the bank balances were $613,204.74. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)
The Library's deposits are classified by risk category at June 30, 1996, as follows:

- 9-

EAST CENTRAL GEORGIA REGIONAL LmRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, '1996

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 187,629.73

2

425,575.01

3

0.00

Total

$ 613.204.74

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Library or the Library's agent in the Library's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Library's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Library's name.

At June 30, 1996, the carrying amount ofthe Library's total investments was $92,332.91 and consisted entirely offunds in a Working Capital Management Account. This amount is not required to be categorized since the Library did not own any specific identifiable securities in the account. The investment policy ofthe Working Capital Management Account does not provide for investment in derivatives or similar investments.

Note 3: RISK MANAGEMENT

The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees and natural disaster.

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 Richmond County Commissioners are providing commercial insurance for risk ofloss associated with natural disaster and are providing through self insurance for the Library's risk of risk associated with errors or omissions and job related illnesses or injuries to employees.

- 10 -

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Compensated Absences

Balance July 1, 1995

$ 90,503.50

Deductions Annual Leave Earned and Utilized (Net)

657.26

Balance June 30, 1996

$ 89,846.24

Note 5: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 6: ACCUMULATED EMPLOYEES' LEAVB

The Library's personnel earn annual leave based upon employment status and years of employment, up to a maximum oftwenty-one (21) days. Accumulated annual leave, up to a maximum of twenty-six (26) days, can be carried forward into the next calendar year. Employees who retire or otherwise terminate employment are paid, at their current rate of pay, for accumulated unused annual leave up to the maximum allowed accumulation. 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 of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for

- 11 -

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 7: RETIREMENT PLANS

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, 1996, was $1,422,781.31; total payroll was $1,575,026.24.

TRS CONTRmUTIONS REQUIRED AND MADE Employees ofthe 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 Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1996, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.

Total contributions made during fiscal year 1996 amounted to $239,169.02, of which $168,030.45 was made by the Library and $71,138.57 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 re~ders 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.

"

- 12 -

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXlllBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 7: RETIREMENT PLANS

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. 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, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of$168,030.45 was actuarially determined and represented .0277% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 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. Richard G. Leach, is bonded in the amount of $50,000.00 with the Fidelity and Deposit Company of Maryland, Baltimore, Maryland, their Bond No. 9965321, on which premium is paid through January 1, 1997. .

- 13 -

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

EXHIBIT-E-

ASSETS Cash and Cash Equivalents

LOTIERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

TOTALS JUNE 30,1996 JUNE 30,1995

$

0.00 $

3,379.07 $

3,379.07 $ _ _.1.'.:.;;496-....72.-

FUND EgUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated
Total Fund Equity

$

$

-=O.:.;;;.OO~

$

0.00 $

3,379.07 $ 0.00

3,379.07 $ 0.00

1,496.72 0.00

3,379.07 $

3,379.07 $ _ _.1.'.:.;;496-....72.-

See notes to the general purpose financial statements.

-14 -

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1996

EXHIBIT "F"

REVENUES
State Funds Federal Funds
Total Revenues
EXPENDITURES
Current Program Services Administration
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1

LOTIERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

TOTALS YEAR ENDED JUNE 30.1996 JUNE 30. 1995

$

10.000.00

$

$

10,000.00 $

$ 70,400.00
70,400.00 $

10,000,00 $ 70,400.00
80.400.00 $

160,626.57 52,900.00
213,526.57

$

10,000.00 $

$

10.000,00 $

$

0.00 $

0.00

68,517.65 $
68.517.65 $ 1,882.35 $ 1.496.72

78.517.65 $
78.517.65 $ 1.882.35 $ 1,496.72

221.396.84 102.67
221.499.51 -7,972.94
9.469.66

FUND BALANCE JUNE 30

$

0,;,;;;,.00. $

3.379.07 $

3,379.07 $ _ _.,;,:1..4..9..6....7..2..

See notes to the general purpose financial statements.

- 15-

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE30 1996

ASSETS cash and cash EqUivalents

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 7212-92S-S8-003

TOTALS

JUNE 30,1996

JUNE 30,1995

$

15,236.56 $

0.00 $

15,236.56 $ _ _"",-."0..,7.63-.-.4.'.

FUNPEQUITY
Fund Balances Reserved For State capital Outlay Project Unreserved Undesignatecl
Total Fund Equity

$

15,236.56 $

$

15,236.56 $

$ 0.00 $ _ _--:.'::z5,:;236=.56::::..

55,526.85 15,236.56

0.00 $

15,236.56 $

7.0..,7.63-.-.4.' .

See notes to the general purpose financial statements.

-16-

EAST CENTRAL GEORGIA REGIONAL LIBRARy COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL pROJECTS FUNp YEAR ENDED JUNE 30,1996

EXHIBIT-H"

REVENUES None Recorded

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 7212-928-S8-003

TOTALS

YEAR ENDED

JUNE 30,1996

JUNE 30,1995

$

0,00 $

0,00 $

0,00 $

..;;O~,OO=_

EXPENDITURES

capital Outlay

BUilding and Building Improvements

$

EqUipment

Total Expenditures

$

Excess of Revenues over (under) Expenditures

$

FUND BALANCE JULY 1

Residual Equity Transfer

0,00 $
--=0=,0=0_ $ 0,00 $
15,236,56

43,956,99 $ 11,569,86
55,526,85 $
-55,526.85 $ 55,526,85

43,956,99 $ 11,569.86 55,526,85 $
-55,526.85 $ 70,763,41

1,730,11 26,545.05 28,275,16 -28,275,16 99,409.89
-371,32

FUND BALANCE JUNE 30

$

15,236,56 $

0.00 $

15,236.56 $ _ _....7.0..,,;,;763;,;;,;,;.4.1.

See notes to the general purpose financial statements.

-17-

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Through Georgia Department of Education Ubrary Services and Construction Act Title I - Public Ubrary Services 1994 Carry-Over 1995 Carry-Over Title III - Interlibrary Cooperation and Resource Sharing 1996 Contract

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.034 $ 84.034

3,100.00 $ 67,300.00

84.035

619.46

4,596.72 63,920.93
(1)

Total Federal Financial Assistance

$

71,019.46 $===68:=!:,5:=1=7:=.6=5

The Ubrary had no major programs as defined by the Single Audit Act of 1984. (1) Expenditures for this program were not maintained by fund source.

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

EAST CENTRAL GEORGIA REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30, 1996

SCHEDULE "2"

N0NINTEREST BEARING ACCOUNT
First Union National Bank of Georgia, Augusta, Georgia
INTEREST BEARING ACCOUNTS
First Union National Bank of Georgia, Augusta, Georgia
Commercial Interest Checking Account (1.24%)
Sun Trust Bank, Augusta, Georgia
Savings Account (Variable Rate)
OTHER
PetlyCash

$ 15,236.56
$ 450,351,40 57,893.17 508,244.57 330.00 $ 523,811.13

See notes to the general purpose financial statements.

- 19 -

EAST CENTRAL GEORGIA REGIONAL LIBRARY INVESTMENTS JUNE 30, 1996
GENERAL FUND
Merrill Lynch, Pierce, Fenner and Smith, Incorporated Augusta, Georgia
Working Capital Management Account

SCHEDULE "3" $ 92,332.91

Note: These funds including accumulated earnings were donated by the Young Men's Library Association.

See notes to the general purpose financial statements.

- 20 -

EAST CENTRAL GEORGIA REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1996
Education, Georgia Department of Federal Program Ubrary Services and Construction Act Title III - Interlibrary Cooperation and Resource Sharing

SCHEDULE "4"
GOVERNMENTAL FUND TYPE GENERAL FUND
$=======28:=6=:,1=1

See notes to the general purpose financial statements.

- 21 -

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

AGENCYIFUNDING
GRANTS . Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Talking Book Centers Maintenance and Operations Lottery Program Media Center and Library Equipment

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 507,870.46 187,490.00 85,670,00 179,890,00
----$

$ 507,870.46 187,490.00 85,670,00 179,890,00

10,000,00

10,000.00

$ 960,920.46 $ 10,000.00 $ 970,920,46

See notes to the general purpose financial statements.

- 22 -

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

LOCAL SOURCES Board of Education Glascock County County Government Board of Commissioners Columbia Lincoln Richmond Warren Public Libraries Burke County Columbia County
OTHER SOURCES Commissions Dividends Donations Fines and Fees Interest Earned Sales Photocopies Other

GOVERNMENTAL FUND TYPE GENERAL FUND

$

300.00

107,705.43 400.00
1,532,492,00 1,200.00
21,352.23 35,000,00

451,97 2,562.47 56,924.50 70,506.38 7,697.19
19,274.81 2,369.54

$==1=,8=5==:8,=23=6:=,5:=,2

See notes to the general purpose financial statements. - 23 -

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE '7"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Ubrary Books and Materials Utilities Communications and Insurance Dues and Fees cnherExpendhures
Nonoperating Costs Equipment
Total Expendhures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 1,575,026.24
389,071.73 7,140.11
15,371.95 $
145,532.61 35,462.96
346,584.14 126,836.21
34,197.91 3,314.50 2,769,51

$
10,000.00 26,538.22 41,534.96
444.47

1,575,026.24 389,071.73 7,140.11 25,371.95 145,532.61 62,001.18 388,119.10 126,836.21 34,197.91 3,314.50 3,213.98

21,922.17

21,922.17

$ 2,703,230.04 $

78,517.65 $ 2,781,747.69

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

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAM YEAR ENDED JUNE 30, 1996
EXPENDITURES Operating Costs Professional and Technical Services

SCHEDULE "8"
MEDIA CENTER AND LIBRARY EQUIPMENT
$ ===1:=0=,00==:0=,0=0

See notes to the general purpose financial statements. - 25 -

EAST CENTRAL GEORGIA REGIONAL LIBRARY
MEMBERSHiP OF LIBRARy BOARD YEAR ENDED JUNE 30 1996

BOARD MEMBER ADDRESS
Ma. GaO Underwood, Chairperson (*) Route 1, Box 14 . Mitchell, Georgia 30820
Mr. Bruce Beggs (*) P.O. Box 12 UncoInton, Georgia 30817
Ma. Juanita Burney (*) 2208 cadden Rd. Augusta, Georgia 30906
Mr. Benny cannady 303 Spring Valley Rd. Waynesboro, Georgia 30830
Mr. carl carswell (*) 416 Rosedale Rd. Waynesboro, Georgia 30830
Ms. Laura Ann Grady (*) 1210 Monte Sano Ave. Augusta, Georgia 30904
Ms. Margaret Hogue (*) 5238 Parham Rd. Evans, Georgia 30809
Mr. James Hudson (*) 2120 Gardner Street Augusta, Georgia 30904
Ms. Fran Hutcheson (*) 1390 Quaker Road, S. E. Warrenton, Georgia 30828
Mr. John Mullins (*) 3655 Bermuda Circle Augusta, Georgia 30909
Ms. Millie M. Parker (*) 1126 Turpin Street Augusta, Georgia 30901
Mr. Terry Pryor (*) 606 Birkdale Court Martinez, Georgia 30907
Mr. Emory Ru&&ell (Deceased) 3627 Na&&au Drive Augusta, Georgia 30909
Mr. Stephen Shepard 505 Courthouse Lane Augusta, Georgia 30901

(*) Denotes Board Members Serving as of June 30, 1996

There was one vacant position on the Library Board at June 30,1996.

See notes to the general purpose financial statements.

- 26 -

SCHEDULE V

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1996

SCHEDULE "10"

"
PERSONNEL

POSITION

SALARIES

TRAVEL

Allen, Anderson, Atkinson, Barron, Beachum, Beck, Becton, Bell, Bell. Bennett, Bess, Bolderson, Brown, Bush, Byers, Calhoun, Carter, Carter, Cato, Cobb, Cody, Coleman, Courtney, Crosson, Davis, Downs, Dunbar, Eaton, Elam, Ellis. Eugene, Evans, Fashion, Faulks, Ferrang, Fowler, Garnett, Goad. Golgart, Greene, Greene, Grijalva. Gross, Hardin,

Gloria J. Helen G. Partricia M. Deborah Mary Linda P. Gerlynn H. Audrey L. Darren Christine
Dorcas A
Myrtle Jermaine Tamara Shawn Wanda J. LaDonna J. Wanda Melissa Katrina Gay MillieM. Joanne B. Kathleen R. George Gregory Terri
Barbara A
Cathy Kenneth Marjorie Diane Mashell Y. Mildred L. Edward G. Clarice Brenda H. Teresa
Patricia K. Janet L.
Sandra G. Patrick Karen Charlie

Library Assistant II

$

Clerk Typist II

Library Assistant III

Librarian I

Chief of Extension

Pre-Professional Assistant

Library Assistant I

Pre-Professional Assistant

Custodian

Library Assistant III

Assistant Chief Public Service

Library Assistant I

Student Assistant

Student Assistant

Student Assistant

Director

Library Assistant I

Business Director

Mender

Student Assistant

Student Assistant

Library Assistant IV

Off-Set Equipment Operator

Library Assistant I

Custodian

Custodian

Library Assistant II

Chief Acquisitions

Student Assistant

Building/Grounds Maintenance

Student Assistant

Library Assistant I

Librarian I

Pre-Professional Assistant

Assistant Chief Extension Services

Library Assistant III

Library Assistant I

Student Assistant

Chief of Public Services

Pre-Professional Assistant

Library Assistant III

Student Assistant

Librarian III

Building and Grounds Service

19,106.39 21,102.27 25,680.54 26,884.90 41,233.25 $ 24,384.89 18,197.31 24,384.89 3,695.28 11.719.95 41,820.18 9,475.80 2,066.58 1,916.76 3,914.30 17,236.39 19,140.81 21,578.87 15,335.44
754.40 2,590.39 23,265.94 17,330.31 14,550.30 1,422.06 7,297.14 21,076.77 43,619.34 17,751.83 13,420.83
114.75 17,320.37 31,937.73 24,384.89 40,327.16 26,338.69 19,106.39
799.00 42,408.72 24,384.89 18,197.31
582.27 43,596.70
7,245.55

76.50 97.25 703.50
63.75
45.25 155.50 36.25 40.50 388.60 366.23 266.39

See notes to the general purpose financial statements.

- 27-

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1996

SCHEDULE "10"

PERSONNEL

POSITION

Harris, Harris, Hensley. Holmes. Holmes, Hood. Houston, Jenkins, Jennings, Johnson, Jones, Kirkendahl, Lairsey. Laughlin, Leach. Lewis, Lively, Maxwell, McCray, Meinhold, Memory, Moore, Morrison, Owens, Pierce, Pitts, Rakestraw, Reeves, Roberts, Samuels, Sandy, Scandrick, Shain, Simmons, Singh. Singley, Sinkler, Small, Smith, Souza, Stallings, Stau(cup. Swian, Swint,

Donna Toya Barandy. Brenda B. Zachary Tiffany Tiffany Betty Yvette Barbara Erika
Carol A
Dianne Tomesha Richard G. Obediah Linda J. Mary Annie M,
Janet R.
Candance Emily Nancy B. Tonia D. William Susan D. Rachel Keith Margaret Angela Marie Daphanie Lee Ann Sheila Ajay Helen Mackie Michael Valerie George Jennifer Ashley Brandon Charles G.

Library Assistant II Student Assistant Student Assistant Library Assistant II Student Assistant Student Assistant Student Assistant Librarian Assistant III Student Assistant Student Assistant Student Assistant Library Assistant II Student Assistant Student Assistant Director Student Assistant Library Assistant II Library Assistant I Secretary III Chief of Technical Services Student Assistant Student Assistant Branch Manager Library Assistant I Student Assistant Branch Manager Student Assistant Student Assistant Student Assistant Library Assistant II Library Assistant I Student Assistant Assistant Director Secretary Student Assistant Branch Manager Student Assistant Student Assistant Student Assistant Library Assistant II Student Assistant Student Assistant Student Assistant Chief of Audio Visual

See notes to the general purpose financial statements.

- 28-

SALARIES

TRAVEL

$

18,197.31

4,247.93

3,949.07

19,106.39 $

167.88

1,185.76

2,817.82

26,996.60

9.690.10

1.388.66

1,051.89

18,197,31

2.'124.28

3,142.94

59,479.15

388,88

22,724.33

5,754.92

23.875.90

43,619.34

2,010.30

4,094.04

28,262.92

19,584.00

820.26

14,647,09

3,046.25

2,896.42

3,758,10

18,197.31

18,197.31

259.25

19.149.13

17,330.31

4,847.23

25,605.06

3,270.41

9,712.99

3,225.78

17,751.83

3,393.69

221.00

1.921,02

43,619,34

218.50 37.09
2,856.69
1,108.14

,
PERSONNEL

Torres, Trenbeatt, Turner, Waldrop, Walker, Walker, Walker, Walthour, Ware, White, White, White, Wiedmeier, Wilder, Williams, Williams, Wilson, Zimmerman,

lolani Richard Vonda Claudia D. Alice D, Samantha Sandra Tyve Gregory David Lacelle Shannon Karen Roberta B. Betty D. Warren Virginina Valerie

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1996

SCHEDULE "10"

POSITION

SALARIES

TRAVEL

Student Assistant

$

Student Assistant

Library Assistant II

Librarian I

Librarian I

Student Assistant

Student Assistant

Student Assistant

Student Assistant

Student Assistant

Student Assistant

Student Assistant

Library Assistant II

Assistant Chief of Technical Services

Library Assistant III

Student Assistant

Student Assistant

Library Assistant I

3,442.22 637.50
18,651.21 31,957.37 34,414.29 $
74.38 9,728.25
933.04 1,202.27 3,197.11 3,353.33
546.13 23,790.48 39,873.33 26,338,69
573.34 17,751.83 15,335.44

156.50
517.30 6.17

$ 1,575,026.24 $-====-=7=,1=4.0.,.:.=11=

See notes to the general purpose financial statements.

- 29-

SECTIONll COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 3, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the East Central Georgia Regional Library Board
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the East Central Georgia Regional Library as of and for the year ended June 30, 1996, and have issued our report thereon dated February 3, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to East Central Georgia Regional Library is the responsibility of the Library's management. As part of obtaining reasonable assurance-about whether the general purpose financial statements are free of material misstatement, we perfonned tests of the Library's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-10

This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a m8$ter of public record.
Respectfully submitted,
tf~
Claude L. Vickers State Auditor
CLV:dt 96CRL-IO

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 3, 1997

Honorable Zell Miller, Governor .Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the East Central Georgia Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REOUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the East Central Georgia Regional Library as of and for the year ended June 3D, 1996, and have issued our report thereon dated February 3, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the East Central Georgia Regional Library's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 3D, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office ofManagement and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Library's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

96CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the East Central Georgia Regional Library had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 96CRL-50

CLAUDE L. VICKERS
STATE AUDITOR (404) 8562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 3, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the East Central Georgia Regional Library Board
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the East Central Georgia Regional Library as of and for the year ended June 30, 1996, and have issued our report thereon dated February 3, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
In connection with our audit ofthe fiscal year 1996 general purpose financial statements of the East Central Georgia Regional Library and with our consideration of the Library's control structure used to administer Federal financial assistance programs, as required by Qffice ofManagement and Budget (OMB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govemmg:
Types of Services Allowed or Unallowed
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the East Central Georgia Regional Library's compliance with these requirements. Accordingly, we do not express such an opinion.

96CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing calpe to our attention that caused us to believe that the East Central Georgia Regional Library had not complied, in all material respects, with those requirements.
This report is intended for the information of management: the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 96CRL-120

SECTIONID INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 3, 1997

.Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the East Central Georgia Regional Library Board
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the East Central Georgia Regional Library as of and for the year ended June 30, 1996, and have issued our report thereon dated February 3, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General ofthe United States. 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.
The management ofthe East Central Georgia Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

96ICL-3

In planning and perfonning our audit ofthe general purpose financial statements ofthe East Central Georgia Regional Library for the year ended June 30, 1996, we obtained an understanding of the internal control stQlcture. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by theAmerican Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(1) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more ofthe specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe East Central Georgia Regional Library's financial statements and this report does not affect our report thereon dated February 3, 1997.

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

Respectfully submitted,
~~
Claude L. Vickers State Auditor

CLV:dt 96ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 3, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Director and Members ofthe East Central Georgia Regional Library Board
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the East Central Georgia Regional Library as of and for the year ended June 30, 1996, and have issued our report thereon dated February 3, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended June 30, 1996, we considered the Library's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Library's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 3, 1997.
The management ofthe East Central Georgia Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute,
96ICL-15

assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of geQ.eral purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliapce may nevertheless occur and not be detected. Also, projection ofany evaluation ofthe structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REOUIREMENTS

SPECIFIC REOUIREMENTS

(1) Political Activity (2) Civil Rights (3) Cash Management

(1) Types of Services Allowed or Unallowed
(2) Applicable Special Tests and Provisions

(4) Federal Financial Reports (5) Allowable Costs/Cost Principles

(3) Other Requirement Claims for Advances and Reimbursements

(6) Audit Follow-Up/Resolution

(7) Administrative Requirements

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1996, the East Central Georgia Regional Library had no major Federal financial assistance programs and expended 99% of its total Federal financial assistance under the following nonmajor Federal financial assistance program:

Library Services and Construction Act Title I - Public Library Services

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor Federal financial assistance program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.

961CL-15

We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Library's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. 'However, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended solely for the use ofmanagement, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 96ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

EAST CENTRAL GEORGIA REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Failure to Perform Inventory ofEquipment Federal Financial Assistance Finding Resolved Audit Control Number 7212-94-02
The audit report for the year ended June 30, 1995, reported that a review ofthe equipment inventory records for the Library Services and Construction Act, Title I - Public Library Services (CFDA 84.034) found no evidence that a physical inventory of equipment had been taken in the past two years. For the year under review, the Library performed a physical inventory of equipment and reconciled with equipment inventory records as required for this program.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7212-93-01
The audit report for the year ended June 30, 1995, stated that the Library did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was a result of management'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
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" ofthis report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7212-93-02
The audit report for the year ended June 30, 1995, noted that the Library did not maintain a system-wide General Fixed Assets Account Group within the forinal accounting records as required by generally accepted accounting principles. In the year under review, the management ofthe East Central Georgia Regional Library chose not to establish a General Fixed Assets Account Group. This condition results in the 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
- 1-

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7212-93-02
to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustIble collections of books owned by the Library. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7212-94-01
The audit report for the year ended June 30, 1995, noted that a review of cash management procedures for the Library Services and Construction Act, Title I - Public Library Services Program (CFDA 84.034) disclosed that cash draws utilizing DE Form 0147 "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in an excessive cash balance. For the year under review, audit tests of these cash management procedures again revealed excessive cash balance accumulations by the Library. During the fiscal year 1996, the program had an average cash balance of $6,551.90 and had excessive ending monthly cash balances for 8 months. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department ofEducation and disbursement of such funds by the Library.
CURRENT YEAR
FEDERAL FINANCIAL REPORTS Delinquent Completion Report Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7212-96-01
Our audit disclosed that the Library failed to file a final completion report by the required date for the Library Services and Construction Act, Title I - Public Library Services Program (CFDA 84.034) in accordance with regulations established by the Georgia Department of Education. This condition occurred as a resul! of management's failure to monitor requirements for submitting completion reports. Procedures should be implemented to ensure that final completion reports are filed in a timely manner as required.
- 2-

SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

EAST CENTRAL GEORGIA REGIONAL LffiRARY PERTINENT VIEWS OF RESPONSffiLE OFFICIALS
YEAR ENDED JUNE 30. 1996
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7212-93-01
We concur in this finding. However, the small size of our operation and budgetary constraints do not allow for the addition of staffto our Business Office. As much separation of duties as possible with a limited staff is in place.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7212-93-02
We concur with this recommendation, but have chosen at this time not to record general fixed assets on financial statements due to budgetary constraints and staff limitations which preclude doing so.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7212-94-01
We concur with this finding. While every effort is made to make accurate quarterly projections of expenditures, these projections are subject to changes in staff schedules and priorities which alter spending patterns. We have taken steps to improve on this and will continue to monitor the situation.
FEDERAL FINANCIAL REPORTS Delinquent Completion Report Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7212-96-01
We concur with this finding. This was a project we were asked to take over very late in the year, and was not an original proposal of ours. Being out of the normal loop, the final completion report got overlooked. This is an exception to the norm, and should not reoccur.