East Central Regional Library, Augusta, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS

~ 1 7 7 6 00 000000 0
I
EAST CENTRAL GEORGIA REGIONAL LIBRARY
AUGUSTA, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

EAST CENTRAL GEORGIA REGIONAL LIDRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIDITS

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

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS

SCHEDULES

ADDmONAL FINANCIAL INFORMATION


SCHEDULE OF REVENUE

1

STATE

2

FEDERAL

3

LOCAL

4 SCHEDULE OF SALARIES AND TRAVEL

SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Page
2 4
7
8
16 17 18
19


SECTION I FINANCIAL

RUSSELL \\1. HINTON
STATE AUDITOR (4041 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Strcct. S.W.. Suitc 214 Atlanta. Gcor!.!ia 30334-X400
~
July 26,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents ofthe University System of Georgia
and Director and Members of the East Central Georgia Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe East Central Georgia
Regional Library, as ofand for the year ended June 30, 2000, as listed in the table ofcontents. These
general purpose financial statements are the responsibility of the East Central Georgia Regional Library's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with 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.
2000ARL-42A

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 ofthe East Central Georgia Regional Library as of June 30, 2000, 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 East Central Georgia 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 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 of the general purpose financial statements and in our opinion 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,

LO.
R sell W. Hinton State Auditor
RWH:jb 2000ARL-42A

EAST CENTRAL GEORGIA REGIONAL LIDRARY

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Amount to be Provided in Future Years
For Payment of Compensated Absences
Total Assets
LIABILITIES AND FUND EQUITY

LIABILITIES Accounts Payable Expired Grant Balances Payable Compensated Absences Total Liabilities
FUND EQUITY Fund Balances Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

1,551,160.96 $

0.00

125,751.06

161,291.30

$

1,838,203.32 $ =======O;;';"O~O~

$

1,013,141.43

$ _ _..:.J1,~O1~3:.z..,1:.::4~1.~43~

$

825,061.89 $

$

825,061.89 .$

---:O~.O~O:..._ :::.:O.~OO~

$

1,838,203.32 $ _ ......_ _.;;;.;0.0;;,00;",


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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

$

26.921.38

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only.l-)

_

JUNE 30, 2000 JUNE 30.1999

$ 1.578,082.34 $ 331.507.48

125.751.06

180.261.00

161.291.30

1,429.42

______ $

. .:. :01:;,.::0-,-,-.7. .;.1.:::.:5.-=-67:.-

100.715.67

88.554.66

$

26,921.38 $

100,715.67 $ 1.965.840.37 $ = .....6..0.;;.;1..7.=5;;;,;2.,;;;;56;;..

$

12.049.11

______ $

$

12,049.11 $

$ . . :.;10:;,.::0;.z. ;,7. .;.1.:::.:5.-=-67:.-

1.025.190.54 $
100,715.67

1,122.32 88,554.66

100.715.67 $ 1.125.906.21 $ _--.;8:;.;:9~.6;.;.7.:::.:6..:::.:98:;..

$ _ _...;1..;.4'1,.;;,8.;..;:72:.;.2;;.;7_ $ _ _-,1,-,-4,872.27

$

26,921.38 $

$

839,934.16 $ _--",-51=2=,O~7.:::.:5'.;;;.;58;....

$ 839,934.16 $ _--=-51..:.:2;.r.:,O;.;.7::.;5.::.;58::...

100.715.67 $ 1,965.840.37 $ 60..1..,.7==5.2....,56....

-3"

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Support Services Maintenance and Operation Information Technology
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USESl
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

$ 1,126,118.56
$
2,015,382.69 409,599.29

39,661.00

$ 3,551,100.54 $ 39,661.00

$ 2,110,949.42 786,165.64 268,766.95
45,129.84 $

39,661.00

$ 3,211,011.85 $ 39,661.00

$

340,088.69 $ _ _-...:O~.~OO::...

$ _--..,;-1'-'-1,1,;:,5;.::.97':":'.:.,.71.:-
$ __...;1..;.1=,5,;;.,,97,-,-.7.;..1,-

$ 328,490.98 $

0.00

496,570.91

0.00

$ 825p61.89 $ .................;O~.O~O~

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only.J...)_ _
YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$

0.00 $ 1,126,118.56 $ 1,087,059.37

39,661.00

2,015,382.69

1,743,262.03

409,599.29

346,680.10

$

0.00 $ 3,590,761.54 $ 3,177.001.50

$ 2,110,949.42 $ 1,849,988.44

786,165.64

793,709.48

268,766.95

249,626.66

84,790.84

25,174.77

$ 12,230.11

12,230.11

1,537.89

$ 12,230.11 $ 3,262,902.96 $ 2,920,037.24.

$ -12,230.11 $ 327,858.58 $ 256,964.26

$ 11,597.71 $ 11,597.71 $
-11,597.71

$ 11.597.71 $

0.00 $

15,452.00 -15,452.00
-"O~.O~O~

$

-632.40 $ 327,858.58 $

15,504.67

512,075.58

256,964.26 255,111.32

$ 14,872.27 $ 839,934.16 $ __5~1:.:;2,075.58

-5-

EAST CENToRAL GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT C

REVENUES

GENERAL FUND

BUDGET

ACTUAL

SPECIAL REVENUE FUND

BUDGET

ACTUAL

State Funds Federal Funds Local Funds Other Funds

$ 1,151,151.00 $ 1,126,118.56

$

1,739,939.00 330,340.65

2,015,382.69 409,599.29

0.00
$

39,661.00

Total Revenues EXPENDITURES

$ 3,221,430.65 $ 3,551,100.54

$

0.00 $ _--.::3~9~,6~61.!.:..~00:!-

Current Public Services Support Services Maintenance and Operation Information Technology

$ 1,997,249.23 $ 2,110,949.42

789,715.24

786,165.64

401,915.83

268,766.95

36,000.00

45,129.84

$

39,661.00 $ _~3~9,~6~61.!.:..0~0:!-

Total Expenditures

$ 3,224,880.30 $ 3,211,011.85

$

39,661.00 $ _~39~,6~6..!.:.1.~00:!-



Excess of Revenues over (under) Expenditures $

-3,449.65 $ 340,088.69

$ -39,661.00 $

0.00

OTHER FINANCING USES

Other Uses

19,939.00

-11,597.71

Excess of Revenues over (under) Expenditures

and Other Financing Uses

$

16,489.35 $ 328,490.98

$ -39,661.00 $

0.00

FUND BALANCE JULY 1, 1999

105,591.41

496,570.91

698.00

0.00

FUND BALANCE JUNE 30, 2000

$ _ _12:;:;2,080.76 $_~82;,;:5,061.89

$

-38,963.00 $ ===~O.;;;;OO:;;..


The notes to the general purpose financial statements are an integral part of this statement. -7-

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The East Central Georgia Regional Library (Library) operates pursuant to Official Code ofGeorgia 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 12 members; 1 member elected by Burke County Library Board, 2 members elected by Columbia County Library Board, 1member 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 Library Board is without authority to determine the amount ofits 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 ofeach participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level ofoversight responsibility for the Library's operations. The East Central Georgia 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 fmancial 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.

- 8-

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: 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.
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 ofspecial revenue fund consists ofproceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - 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 (Le., 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 fmanced from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

-9-

EAST CENTRAL GEORGIA REGIONAL LIDRARY

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. 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 ofthe 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 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
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. 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

- 10-


EAST CENTRAL GEORGIA REGIONAL LIDRARY

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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:
(I) 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.
COMPENSATED ABSENCES
Compensated absences represent obligations ofthe Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following types ofinterfund transactions:
- 11 -

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

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 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 of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of anyone of or any combination ofthe following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds of any public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

- 12-

EAST CENTRAL GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO mE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS

(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, 2000, the bank balances were $71,498.47. The bank balances were entirely covered by Federal depository insurance.

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the fair value of the Library's total investments was $124,772.98 and this entire amount consisted 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 of the Working Capital Management Account does not provide for investments in derivatives or similar investments.

Note 3: RISK MANAGEMENT

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

The Library has obtained commercial insurance for risk 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 AugustalRichmond County Commissioners are providing commercial insurance for risk ofloss associated with natural disaster and the Commissioners are providing through self-insurance for the Library's risk ofloss associated with errors or omissions, job related illness or injuries to employees and unemployment compensation.

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

Position Covered

Amount

All Employees

$ 75,000.00

- 13-

EAST CENTRAL GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Tenn Debt during the fiscal year ended June 30, 2000, were as follows:

Compensated Absences

Balance July 1, 1999

$ 88,554.66

Additions Annual Leave Earned and Utilized (Net)

12,161.01

Balance June 30, 2000
Note 5: ACCUMULATED EMPLOYEES' LEAVE

$ 100.715.67

The Library's personnel earn annual leave based upon employment status and years ofemployment, up to a maximum of twenty-one days. Accumulated annual leave, up to a maximum of twenty-six days, can be carried forward into the next calendar year. Employees who retire or otherwise tenninate employment are paid, at their current rate ofpay, for accumulated unused annual leave up to the maximum allowed accumulation. 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 ofAudits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe 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:

- 14-

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHffiIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: RETIREMENT PLANS
Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 182,902.05 $ 176,998.43 $ 169,948.46



- 15 -

EAST CENTR AL GEORGIA REGIONAL LIBRARY SCHEDU,=E OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Maintenance and Operation Talking Book Centers

GOVERNMENTAL FUND TYPE GENERAL FUND

$

635,553.56

11,550.00

200,434.00

192,834.00

85,747.00

$

1,126,118.56



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

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 2000

SCHEDULE "2"

AGENCY/FUNDING
SUB-GRANT Museum and Library Services, Institute of Through Georgia Department of Technical and Adult Education Library Services and Technology Act State Library Program

GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ======o;;3~9~,6;,;;6",;,;1.~00==

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

EAST CENTB8L GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

LOCAL SOURCES Board of Education Glascock County County Governments Boards of Commissioners Columbia Lincoln Richmond Warren County Libraries Burke Lincoln Warren

GOVERNMENTAL FUND TYPE GENERAL FUND

$

300.00

141,099.38 5,744.86
1,846,901.00 1,541.00
18,196.45 1,100.00 500.00

$

2,015,382.69

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

EAST CENTRAL GEQRGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

NAME

TITLE CATEGORY

Allen, Almond, Anderson, Atkinson, Balderson, Barron, Beachum, Beck, Bell, Bennett, Bess, Blackwell, Brantley, Brisco, Broadwater, Brooks, Burton, Carter, Cooks, Couch, Courtney, Crosson, Dawson, Dickey, Downs, Dunbar, Eaton, Ellis, Evans, Fashion, Faulks, Ferrang, Fisher, Fortune, Gaines, Garman, Garnett, Gay, Gillerson, Golgart, Gray, Greene, Gross, Hampton, Hardin, Harmon, Harris, Harris, Hodges, Holmes, Jackson, Jackson, Jackson,

Gloria J. Tandra L. Helen B. Patricia M. Myrtle E. Deborah Mary Linda P. Audrey L. Christina Dorcas A. Roxanna, M. Brandon J. Chistopher S. Ebony A. William J. Turkessa I. LaDonna J. Katrina L. Mary S. Joanne B. Kathleen R. Betty J. Brett W. Gregory Terri Barbara A. Kenneth Diane Mashell Y. Mildred L. Edward G. Lee Ann Latonya Tjuana T. Sarah Brenda H. June R. Barbara M. Patricia K. William K. Janet L. Karen Fallon A. Charlie Jennifer R. Donna Jacqueline V. Wanda Brenda B. Aaron T. Krystte D. Verneisa M.

Library Assistant I Student Assistant Records Clerk I Library Assistant I Records Clerk III Librarian iI Extension Services Coord. Admin. Assistant II Admin. Assistant II Librarian I Circulation Services Coord. Student Assistant Student Assistant Custodian I Student Assistant Custodian I Library Assistant III Library Assistant III Student Assistant Library Assistant II Print Shop Operator Library Assistant II Library Assistant II Student Assistant Library Assistant II Library Assistant I Collection Management Coord. Custodian I Library Assistant I Librarian I Admin. Assistant II Asst. Collection Mgmt. Coord. Assistant Director Student Assistant Administrative Asst II Student Assistant Library Assistant II Library Aide Library Assistant III Public Services Coordinator Library Assistant III Admin. Assistant II Children's Services Coord. Student Assistant Custodian I Student Assistant Library Assistant II Seaetary III Admin. Assistant III Library Assistant I Student Assistant Student Assistant Library Assistant III

See notes to the general purpose financial statements.

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SALARIES

TRAVEL

$

22,182.71

2,549.29

24,840.16

29,870.29

11,146.78

30,709.00

63,151.60 $

324.47

28,066.74

28,203.07

1,054.00

32,195.13

55,770.46

4,179.29

1,905.82

9,026.49

191.50

5,057.26

10,048.08

346.31

648.55

23,523.42

5,789.14

11,408.64

20,395.47

17,056.44

8.62

15,474.58

4,314.79

19,462.26

134.00

24,432.02

56,428.75

16,152.82

519.75

20,124.63

36,655.90

32.37

27,215.42

55,736.00

568.42

58,396.90

1,170.77

1,115.00

12,134.22

3,989.45

21,898.99

68.50

9,668.16

17,386.15

7,151.59

17,680.65

28,062.42

56,428.75

1,231.20

3,074.60

8,509.79

39.75

314.15

21,495.51

10,347.68

24,616.55

23,313.76

136.20

396.57

1,210.27

17,386.15

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 2000

SCHEDULE "4"

NAME

Jenkins, Johnson, Joseph, Lamb, Lawson, Leach, Leonard, Lively, Maitland, Maxwell, Mccoy, Mccray, McKie, McKinney, Mills, Morgan, Morrison, Nipple, Owens, Poplin, Ramsey, Rawls, Rhone, Samuels, Sandy, Sapp, Sharpe, Simmons, Singley, Souza, Stallings, Sullivan, Swearingen, Swint, Taylor, Thomas, Towns, Waldrop, Walker, Wilder, Williams, Williams, Wilson, Wilson, Young, Zwanziger,

Betty Gary M. Cathy A. Mellonie J. Josie A. Richard G. Melissa Linda J. Kelly L. Mary Paul L. Annie M. Erin T. Brian C. Kia L. Laketa S. Nancy B. Venishia S. Tonia D. Annie J. Veda R. Maxine L.
Nigel K.
Angela Maria Vonda R.
Ava K.
Shawn R. Helen George A. Jennifer Peter G. Arnie E. Charles G. Eugenna A. Jeanine N. Kevin Claudia D. Alice D. Roberta B. Betty D. Toya L. Luricha A. Virginia Victoria E.
Amanda K.

Totals per Report

TITLE CATEGORY
Library Assistant I Student Assistant Library Assistant I Student Assistant Student Assistant Director Records Clerk III Library Assistant II Student Assistant Library Assistant IV Library Assistant IV Secretary I Student Assistant Student Assistant Student Assis. tant Student Assistant Admin. Assistant I Student Assistant Admin. Assistant II Library Assistant IV Student Assistant Library Assistant III Student Assistant Library Assistant II Library Assistant II Library Assistant II Student Assistant Student Assistant Admin. Assistant I Library Assistant II Student Assistant
Ass!. Ext. Services Coord.
Student Assistant Audio VisuallTalking Book Ctr Coord. Student Assistant Student Assistant Student Assistant Librarian II Librarian III Public Asst Chief of Tech Serv Library Assistant I Student Assistant Student Assistant Library Assistant I Library Assistant III Student Assistant

SALARIES

TRAVEL

$

30,190.09 $

8.17

2,140.48

21,757.68

937.33

1,060.91

78,577.74

3,142.00

18,828.64

26,115.24

105.50

1,542.83

4,523.59

10,488.57

27,521.69

1,228.28

3,687.46

4,831.53

5,332.66

32,663.84

29.38

3,673.25

23,500.88

7,527.24

4,478.27

10,287.32

1,839.60

22,283.62

3.27

21,256.21

16.92

22,426.92

3,314.09

1,696.93

26,796.56

4,446.44

4,626.62

44,025.34

136.25

4,350.50

, 56,428.75

1,180.08

92.70

2,139.00

927.01

36,063.67

50,797.11

491.48

54,775.83

2,380.94

18,476.38

211.15

2,887.90

20,742.91

59.53

646.73



2,870.28

$ 1,783,316.08 $ 13,379.38

See notes to the general purpose financial statements.

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SECTIONll FINDINGS AND QUESTIONED COSTS

EAST CENTRAL GEORGIA REGIONAL LIDRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
PRIOR YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Finding Resolved Finding Control Number: 7212-98-01
The audit report for the year ended June 30, 1999, stated that the East Central Georgia Regional Library failed to have its deposits fully collateralized as provided for by the Official Code ofGeorgia Annotated Section 50-17-59. In the year under review, the Library's bank balances were fully collateralized.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7212-93-02
The audit report for the year ended June 30, 1999, noted that the East Central Georgia 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 management ofthe Library chose not to establish a General Fixed Assets Account Group within its formal financial 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 the maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CASH AND CASH EQUIVALENTS REVENUES/RECENABLES/RECEIPTS GENERAL LEDGER Inadequate-Internal Control Procedures Finding Control Number: 7212-98-02
The audit report for the year ended June 30,1999, stated that a review of the Library's internal control policies and procedures noted deficiencies in providing for adequate internal control. For the year under review, the following deficiencies were still noted:
CASH AND CASH EQUIVALENTS: The bank reconciliation function was not separated from the General Ledger Posting and check preparation functions.
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EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
pmORYE~CURRENTYEAR
CASH AND CASH EQUIVALENTS REVENUESIRECEIVABLESIRECEIPTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: 7212-98-02
REVENUESIRECEIVABLESIRECEIPTS: The cash receipts function was not separated from the General Ledger Posting function. Cash receipts were not maintained by receipt number and did not include adequate documentation.
GENERAL LEDGER: A journal entries ledger or other supporting documentation for journal entries could not be provided by the Library. In addition, the Library could not provide evidence that journal entries were reviewed and approved by someone independent of the general ledger journal entry function.
These conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions and their failure to institute proper controls over these areas. The Library should review the accounting procedures in place, design procedures which would enhance proper internal controls relative to the above control categories and implement those procedures to strengthen the internal control over the accounting functions.
CURRENT YEAR
EMPLOYEE COMPENSATION Salary Overpayment Amount: $476.36 Finding Control Number: 7212-00-01
During the year under review, the East Central Georgia Regional Library overpaid an employee in the amount of$476.36. This overpayment was the result ofthe Library using an incorrect base pay rate in calculating the employee's salary. Appropriate action should be taken by the Library to ensure that all professional personnel are paid in accordance with the contracted salaries. Reimbursement of $476.36 should be secured from the employee involved and deposited into the Library's General Fund.
GENERAL LEDGER Failure to Provide Accounting Records Finding Control Number: 7212-00-02
For the year under review, the East Central Georgia Regional Library failed to provide auditors with the following subsidiary accounting reports:
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EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
CURRENT YEAR GENERAL LEDGER Failure to Provide Accounting Records Finding Control Number: 7212-00-02
Cash Journal By Bank and By Fund for June 2000 Open Accounts Receivable Report as of June 30, 2000 Open Accounts Payable Report as of June 30, 2000 Revenue Journal Detail for June 2000 Year-to-Date General Ledger Report for the fiscal year ended June 30, 2000 July and August 2000 General Ledger Reports This condition resulted from management's claim to have lost the accounting records during the renovation ofthe Library. Extensive audit procedures were necessary to obtain year to date financial data. The Library should implement internal controls to ensure that all appropriate general ledgers and subsidiary records are maintained for audit.
-3-