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EAST CENTRAL GEORGIA REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHffiITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDmJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDmJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

CAPITAL PROJECTS FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

18

2

FEDERAL

19

3

LOCAL

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSEll. W. HINTON
STATE AUDITOR
(4041 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street. S W.. SUIte 214 Atlanta. Georgia 30334-8400
June 25, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
and Director and Members of the East Central Georgia Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON
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, 200 I, 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 perfonn 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 confonn to generally accepted accounting principles.
2001ARL-42

The aggregate effects on the general-purpose financial statements ofthis variance or omission have not been determined, but is 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, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the East Central Georgia Regional Library taken as a whole. The accompanying combining statements (Exhibits E and F) and the fmancial schedules (Schedules 1 through 4), as listed in the table ofcontents, are presented for purposes ofadditional analysis and are not a required part ofthe general-purpose financial statements ofthe 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 stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
RWH:as 2001ARL-42

EAST CENTRAL GEORGIA REGIONAL LmRARY

------ -

-

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

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

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

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

370,575.70 $ 15,621.56

101,253.58

145,814.36

$

617,643.64 $ 15,621.56

LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Deferred Revenue Compensated Absences
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund EqUity

$ 15,621.56 $ 15,621.56

$

617,643.64 $

0.00

$

617,64364 $

0.00

$

617,643.64 $ 15,621.56

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 3D, 2001 JUNE 30, 2000

$

8,428.03

$ 394,625.29 $ 1,578,082.34

101,253.58

125,751.06

145,814.36

161,291.30

$

82,906.49

82,906.49

100,715.67

$

8,428.03 $

82,906.49 $ 724,599.72 $ 1,965,840.37

$ 1,025,190.54

$

15,621.56

$

-=8:::,2,9L:=.;06::.:..4..:.,:9:_

82,906.49

100,715.67

$

82,906.49 $

98,528.05 $ 1,125,906.21

$_ _..:.81...0,4=28::.:..0=.:3:$_ _~8",",,4=28.=..;;.03;;....

$

8,428.03 $

$ 626,071.67 $ 839,934.16 $ 626,071.67 $ 839,934.16
82,906.49 $ 724,599.72 $ 1,965,840.37

-3-

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

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

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2001

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 (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

$ 1,062,934.65 $
1,891,018.19 224,392.66
$ 3,178,345.50 $

8,675.00 8,675.00

$ 2,240,704.43 670,725.97 437,066.67 37,266.68 $

8,675.00

$ 3,385,763.75 $ $ -207,418.25 $

8,675.00 0.00

$ -207,418.25 $

0.00

825,061.89

0.00

$ 617,643.64 $ ==--==O=,=OO=.

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

TOTALS
(Memorandum Only)
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 1,062,934.65 $ 1,126,118.56

$ 285,156.00

293,831.00

39,661.00

1,891,018.19

2,015,382.69

224,392.66

409,599.29

$ 285.156.00 $ 3.472.176.50 $ 3.590.761.54

$ 2,240,704.43 $ 2,110,949.42

670,725.97

786,165.64

437,066.67

268,766.95

45,941.68

84,790.84

$ 291.600.24

291.600.24

12.230.11

$ 291.600.24 $ 3.686.038.99 $ 3.262.902.96

$ -6.444.24 $ -213.862.49 $ 327.858.58

$

11,597.71

-11.597.71

$

0.00

$ -6,444.24 $ -213,862.49 $

14.872.27

839.934.16

327,858.58 512.075.58

$ 8,428.03 $ 626,071.67 $ 839,934.16

-5-

EAST CENTRAl GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES ANP CHANGES IN FUNp BAlANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2001

EXHIBIT C

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Support Services Maintenance and Operation Information Technology
Total expenditures
Excess of Revenues over (under) Expenditures
FUND BAlANCE JULY 1, 2000

GENERAL FUND

BUDGET

ACTUAL

$ 1,062,940.65 $ 1,062,934.65

1,757,447.65 142,045.60

1,891,018.19 224,392.66

$ 2,962,433.90 $ 3,178,345.50

$ 2.081,834.46 $ 2,240,704.43

677.616.65

670,725.97

514,032.82

437,066.67

35,555.00

37,266.68

$ 3,309,038.93 $ 3.385,763.75

$ -346.605.03 $ -207.418.25

825,061.89

825,06189

FUND BALANCE JUNE 30. 2001

$ 478,456.86 $ 617,643.64

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00

$ 8,675.00

$

0.00 $ 8,675.00

$

0.00 $ 8,675.00

$

0.00 $ 8,675.00

$

0.00 $

0.00

0.00

0.00

$

0.00 $ ==="O=,O=O=.

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

EAST CENIRAL GEORGIA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNlFICANT 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 13 members; 1 member elected by Burke County Library Board, 3 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 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 of its 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 NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHIBIT "D"

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 (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:

-9-

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

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHffiIT "0"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

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. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The 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 prohibjtion 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 on a basis other than 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 ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized
- 10-

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO TIiE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30.2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
cost. Both participating interest-earning contracts and moriey market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool admiIiistered 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 of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.

- 11 -

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
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 ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
- 12-

EAST CENTRAL GEORGIA REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

Note 2: DEPOSITS AND INVESTMENTS
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZAnON OF DEPOSITS At June 30, 2001, the bank balances were $61,443.26. The bank balances were entirely covered by Federal depository insurance.
CATEGORIZATION OF INVESTMENTS At June 30, 2001, the fair value of the Library's total investments was $100,371.45 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 Wor~ng 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 Augusta/Richmond County Commissioners are providing commercial insurance for risk of loss 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:

- 13 -

- - - - - - -----~---------------

EAST CENfRAL GEORGIA REGIONAL LmRARY

EXHIBIT "0"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 3: RISKMANAGEMENT

Position Covered

Amount

All Employees

$ 75,000.00

Note 4: GENERAL LONG-TERM DEBT

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

Compensated Absences

Balance July 1, 2000

$ 100,715.67

Deductions Annual Leave Earned and Utilized (Net)

-17,809.18

Balance June 30, 2001

$ 82.906.49

Note 5: ACCUMULATED EMPLOYEES' LEAVE

The Library's personnel earn annual leave based upon employment status and years ofemployment, up to a maximum of twenty-four days. Accumulated annual leave, up to a maximum oftwenty-six days, can be carried forward into the next calendar year. Employees who retire or otherwise terminate 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 of Audits and Accounts.

- 14-

EAST CENTRAL GEORGIA REGIONAL LmRARY

EXHmIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Nore6: RETmEMENTPLANS

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

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 165,999.19 $ 182,902.05 $ 176,998.43

- 15 -

- - - - - - - - - - - - - - - - - ---~_._---~----~------------

EAST CENTRAL GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

EXHIBIT wE"

ASSETS Cash and Cash Equivalents

REGULAR FEDERAL

TOTALS

PROJECTS PROJECTS JUNE 30, 2001 JUNE 30, 2000

$ 8.428.03 $

0.00 $

8,428.03 $

2_6~!9_2_1._38"=

LIABILITIES AND FUND EOUlJY
LIABILITIES
Accounts Payable
FUND EOUlJY
Fund Balances Unreserved Undesignated

$ 8.428.03 $

$

12,049.11

0.00 $ _ _8~.4~2:::::8:::::.03:::...

14,872.27

Total Liabilities and Fund Equity

$ 8,428,03 $

0.00 $

8.428.03 $ _ .....2.""6.,.9..2.1,;,;,..3.8...

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 FUND YEAR ENDED JUNE 3D, 2001

EXHIBIT "F"

REVENUES Federal Funds
EXPENDITURES Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES
Operating Transfers In Excess of Revenues and Other FInancing Sources
over (under) Expenditures FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR PROJECTS

FEDERAL PROJECTS

TOTALS YEAR ENDED JUNE 3D, 2001 JUNE 30, 2000

$

0,00 $ 285,156,00 $ 285,156.00 $

0,00

$ 6,444,24 $ 285,156.00 $

$ -6,444.24 $

0.00 $

291,600.24 $ -6,444.24 $

12,230,11 -12,230.11

$ -6,444.24 $ 14,872.27

11,597.71

0.00 $ 0.00

-6.444.24 $ 14.872.27

-632.40 15,504.67

$ 8,428.03 $

0.00 $

8,42803 $ ==1.4.,jj;.8=7=2.=2.7...

see notes to the general-purpose finanCial statements.

-17

- ~--- -- - ---

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Public Libraries Salaries Travel Library Materials Maintenance and Operation Talking Book Centers

GOVERNMENTAL FUND TYPE GENERAl FUND

$

551,920.65

11,550,00

214,200.00

192,828,00

92,436.00

$

1,062,934,65

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

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING
SUB-GRANT Museum and Library SeNices, Institute of Through Board of Regents of the University System of Georgia Library SeNlces and Technology N;t State Library Program Title II - Public Library ConstructJon and Technology Enhancement

GOVERNMENTAL

FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

TOTAL

$ 8,675.00

$

8,675.00

_ _ _ _ $ 285,156.00

285,156.00

$ 8,675.00 $ 285,156.00 $ 293,831.00

see notes to the general-purpose financial statements.

-19-

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "3"

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

GOVERNMENTAL FUND TYPE GENERAL FUND

$

1,259.97

129,624.42 1,993.40
1,731,097.00 1,200.00
19,393.40 2,650.00 3,800.00

$

1,891,018.19

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

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

NAME

TITLE CATEGORY

Allen, Almond, Anderson, Atkinson, Balderson, Barron, Beachum, Beck, Bell, Bennett, Bess, Blackwell, Brisco, Broadwater, Brooks, Burnette, Carter, Cooks, Couch, Courtney, Crosson, Daniels, Dawson, Dearborn, Dickey, Downs, Dunbar, Eaton, Ellis, Evans, Fashion, Faulks, Fears, Ferrang, Fisher, Flowers, Gaines, Garman, Gamett, Gay, Gay, Gillerson, Gray, Greene, Griffin, Gross, Hardin, Harmon, Harris, Harris, Holmes,

Gloria J.
Tandra L.
Helen B PatriCIa M Myrtle E. Deborah Mary Linda P.
Audrey L.
Christina Dorcas A Roxanna M, Christopher S, EbonyA. WilllamJ. Angela M LaDonnaJ.
Katrina L.
MaryS Joanne B, Kathleen R. A1exandna M. Betty J. Wanda Brett W. Gregory Terri
Barbara A.
Kenneth Diane Mashell Y.
Mildred L. Joyce L.
EdwardG. Lee Ann Niclaudla TjuanaT. Sarah Brenda H, David J. June R. Barbara M, WilllamK. Janet L, Tiffany M. Karen Charlie Jennifer R. Donna Jacqueline V. Brenda B.

Library Assistant I Student Assistant Records Clerk I library Assistant I Records Clerk III Libranan II
Head of Extension Services
Admin. Assistant n
Admin. AssIstant II Librarian I
Head of Clrculabon SeMces
Student Assistant Custodian I Student AssIstant Custodian I Library Assistant II Library Assistant III Student Assistant library Assistant I Pnnt Shop Operator Library Assistant II Student Assistant library Assistant II Admin. Assistant III Student Assistant Library Assistant II Library Assistant I
Head of Technical Services
Custodian I Library Assistant I Librarian I Admin. Assistant II Community Services Libranan Asst, Collection Mgml Coord Assistant Director Student Assistant Administrative Asst II Student Assistant Library Assistant II Student Assistant Library Assistant I Library Assistant III Library AssIstant III Admin. Asslstant U Student AssIStant
Head of Children's SeMees
Custodlim I Student Assistant Library Assistant III Secretary III Library Assistant I

See notes to the general-purpose finanCIal statements.

- 21 -

SALARIES

TRAVEL

$

22,417,00

7,512,15

25,201.68

29,838,34 $

53.60

11,17666

30,842,72

63,989.51

1,818.71

26,227.92

75.68

28,489.74

316,00

32,312,93

56,719.94

91156

7,701,05

561,92

8,562.33

163.34

14,67908

23,732.52

4,956,29

9,592.28

20,803.38

16,96547

2,67674

17,796.27

24,668.30

431.79

4,317.54

19,n5.21

44.24

24,631.52

56,870.82

306.49

16,438,72

1,704,60

21,27890

14,67

5,286.74

27,144.04

10,915,00

37,09215

62,933,65

1,361.38

865.20

6,093.12

637.26

21,979,62

87808

17,566.69

15,171.23

17,951.02

23.52

28,22356

303,85

56,870.82

1,011.30

8,435.57

3,06541

21,891.90

4,546,54

23,47868

11542

EAST CENTRAL GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

NAME
Home, Howard, Jackson, Jackson, Jacobs, James, Jenkins, Joseph, Leach, Leonard, Lively, MathiS MaX'NeIl, Mccoy, Mccray, McKinney, MiOs, Mobley, Morgan, Morrison, Nipple, Owens, Poplin, Pryor, Ramsey, Rawls, Rhone, Roy, Samuels, Sandy, Sapp, Schultz, Sharpe, Singley, Stallings, Sweanngen, Swint, Waldrop, Walker, Wilder, Wilson, Wilson, Young,

Melissa M, Marcus J, AaronT, VemelsaM, JessICa Lynn SherryI Lynne Betty Cathy A. Richard G, MelISSa LJnda J. Akista M, Mary Paul L. AnnleM. BrianC. KiaL. Cheryl L, baketa S. Nancy B. Venishia S. Tonia D. Annie J, Keshia M Veda R. Maxine L. Nigel K. John P. Angela Mana Vonda R. KemiS. Ava K. Helen Jennifer AmIeE Charles G. Claudia D, AhceD, Roberta B, Luncha A. Virginia Victoria E,

TITLE CATEGORY
Student Assistant Student Assistant Student Assistant Library Assistant III Student Assistant LJbrarian II LJbrary Assistant I Library Assistant I Director Records Clerk III LJbrary Assistant II Student Assistant Library Assistant IV LJbrary Assistant IV Secretary I Student Assistant Student Assistant Student AssIstant Student Assistant Admin. Assistant I Student Assistant Admin. Assistant II Library Assistant IV Student Assistant Student Assistant Library Assistant III StUdent Assistant LJbrarian I LJbrary AssIstant II Library Assistant II LJbrary AssIstant II Student Assistant Student Assistant Admin, Assistant I Student Assistant library Assistant III Director Libranan II Head of Information Systems Systems Administrator Student Assistant Library Assistant I Library Assistant 10

Unidentified Vanance

Totals per Report See notes to the general-purpose finanaal statements.

-22

SALARIES

TRAVEL

$

4,111,06

30900

937.39

17,538 62

2,101,23

23,291,09

29,873,62 $

126.20

20,71547

13,597.84

19,086.56

26,297.24

2,407,67

6,101,91

8,645.89

2828

27,688 70

1,642.85

717.56

187.98

5,816.72

32,943,32

6,238.85

23,663.84

7,423.75

4,418.95

647,28

17,157.99

854,91

6,57990

7,626.72

21,488 82

22,600.88

1,158.n

4,872.n

1,nO.91

5,011.94

5,85215

67,18949

2,271.89

35,995.74

75,68

56,440.93

1,270.78

54,971.26

2,070.62

7,103,95

20,647,14

17,20358

$ 1,646,110.86 $ 13,28419

20747

$

1,646,318,33 $ _ _1.3,2.8.4..1..9... oliii

SECTIONll FINDINGS AND QUESTIONED COSTS

EAST CENTRAL GEORGIA REGIONAL LffiRARY SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
PRIOR YEAR
EMPLOYEE COMPENSATION Salary Overpayment Finding Resolved Finding Control Number: 7212-00-01
The audit report for the year ended June 30, 2000, stated that the East Central Georgia Regional Library overpaid an employee in the amount of $476.36. Subsequent to June 30, 2001, reimbursement in the amount of$476.36 was received and deposited into the Library's General Fund.
GENERAL LEDGER Failure to Provide Accounting Records Finding Resolved Finding Control Number: 7212-00-02
The audit report for the year ended June 30, 2000, stated that the East Central Georgia Regional Library failed to provide auditors with appropriate accounting records. For the year under review, appropriate accounting records were provided by the Lib~.
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, 2000, 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 of the Library chose not to establish a General Fixed Assets Account Group within its formal accounting records. This condition results in the general-purpose financial statements ofthe Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for the maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, equipment and inexhaustible collections and books owned by the Library. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
- 1-

- - - - - - - - - - - - --- ----- - - --- -------- ----- ----- - -
EAST CENTRAL GEORGIA REGIONAL LffiRARY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001
PRIOR YEAR/CURRENT YEAR CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: 7212-98-02 The audit report for the year ended June 30, 2000, 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 continued to exist: CASH AND CASH EQUIVALENTS:
The bank reconciliation function was not separated from the function of posting of the General Ledger and check preparation. REVENUES/RECEIVABLES/RECEIPTS: The cash receipts function was not separated from the function ofposting the General Ledger. In addition, 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 ofthe general ledgerjournal 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.
-2-