Audit report, Flint River Regional Library, Griffin, Georgia, year ended June 30, 1997

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AUDIT REPORT FLINT RIVER REGIONAL LIBRARY
GRIFFIN, GEORGIA YEAR ENDED JUNE 30, 1997

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

FLINT RIVER REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

12

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

13

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

14

2

FEDERAL

15

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

16

4 SCHEDULE OF SALARIES AND TRAVEL

17

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

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 5,1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the Flint River Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Flint River Regional Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Flint River Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose 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.
The aggregate effects on the general-purpose financial statements of this variance or omission have not been determined, but are believed to be material.

97ARL-42

In our opinion, except for the effects on the general-purpose financial statements ofthe matter referred to in the third paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Flint River Regional Library as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Flint River Regional Library taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose fmancial statements and in our opinion is fairly presented in all material respects in relation to the generalpurpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:cm 97ARL-42

FLINT RIVER REGIONAL LIBRARY

FLINT RIVER REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1997

EXHIBIT "A"

ASSETS Cash and Cash Equivalents

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS (Memorandum Only) JUNE 3D, 1997 JUNE 3D, 1996

$ 93,429.54 $

3,227.08 $ 502,286.98 $

598,943.60 $ 1,821,095.59

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Contracts Payable Retainages Payable

Total Liabilities

FUND EQUITY

Fund Balances Reserved For Continuation of Federal Program For State Capital Outlay Projects Unreserved Deficit Undesignated

$ $ 93,429.54

Total Fund Equity

$ 93,429.54 $

3,227.08

$

$ 502,286.98

0.00 3,227.08 $

0.00 502,286.98 $

$

17,210.36

406,589.99

139,370.00

$

563,170.35

3,227.08 $ 502,286.98
93,429.54 598,943.60 $

2,677.94 1,272,457.66
-17,210.36
1,257,925.24

Total Liabilities and Fund Equity $ 93,429.54 $

3,227.08 $ 502,286.98 $

598,943.60 $ 1,821,095.59

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

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

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

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

REVENUES

State Funds Federal Funds Other Funds

$ 703,468.94 $ 15,100.00 $ 199,904.00 $

40,000.00

541,894.41

50,455.72

918,472.94 $ 40,000.00 592,350.13

2,511,523.30 24,000.00
403,538.64

Total Revenues

$ 1,245,363.35 $ 55,100.00 $ 250,359.72 $ 1,550,823.07 $ 2,939,061.94

EXPENDITURES

Current Program Services Administration
Capital Outlay

$ 327,038.07 $ 10,146.40

$

337,184.47 $

279,339.06

807,685.38

44,404.46

852,089.84

881,696.09

$ 1,020,530.40

1,020,530.40

2,693,343.55

Total Expenditures

$ 1,134,723.45 $ 54,550.86 $ 1,020,530.40 $ 2,209,804.71 $ 3,854,378.70

Excess of Revenues over (under) Expenditures $ 110,639.90 $

549.14 $ -770,170.68 $ -658,981.64 $ -915,316.76

FUND BALANCE JULY 1

-17,210.36

2,677.94

1,272,457.66

1,257,925.24

2,173,242.00

FUND BALANCE JUNE 30

$

93,429.54 $

3,227.08 $ 502,286.98 $

598,943.60 $ 1,257,925.24

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

THIS PAGE LEn BLAHK

FLINT RIVER REGIONAL LIBRARY

EXHIBIT "C"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE 30, 1997

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 747,694,00 $ 703,468,94

581,788,00

541,894.41

Total Revenues

$ 1,329,482,00 $ 1,245,363,35

EXPENDITURES

Current Program Services Administration

$ 438,695,00 $ 898,787,00

327,038,07 807,685,38

Total Expenditures

$ 1,337,482,00 $ 1,134,723.45

Excess of Revenues over (under) Expenditures $

-8,000,00 $ 110,639,90

FUND BALANCE JULY 1,1996

20,662,80

-17,210,36

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

15,100,00

$ 40,000,00

40,000,00

$ 40,000,00 $ 55,100,00

$ 10,146.40

$ 32,000,00

44,404.46

$ 32,000,00 $ 54,550,86

$

8,000,00 $

549,14

2,677,94

2,677,94

FUND BALANCE JUNE 30,1997

$

12,662,80 $

93,429,54

$

10,677,94 $=~3;:,;,2;;;2;,;,7=,0=8

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

FLINT RIVER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Flint River 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 of the Library have been prepared in confonnity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types of the Library.
The Library Board consists of six members; one member appointed by Butts County Library Board, one member appointed by Fayette County Library Board, one member appointed by Griffin-Spalding County Library Board, one member appointed by Lamar County Library Board, one member appointed by Monroe County Library Board and one member appointed by Pike County Library Board. The Board is without authority to detennine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Board on the above criteria the Flint River Regional Library is detennined to be a joint venture.
FUND ACCOUNTING
The Library uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
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 of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:

- 6-

FLINT RIVER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 acquisition or construction of major capital facilities.
BASIS OF ACCOUNTING
The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (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.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within 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.

-7-

FLINT RIVER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Flint River Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized 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.
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 fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

-8-

FLINT RIVER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS
COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by
surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond
and the market value of securities pledged shall be equal to not less than 11 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination 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,
(5) Bonds of any public authority created by the laws of the 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 of development authorities created by the laws of the 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 and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZAnON OF DEPOSITS At June 30, 1997, the bank balances were $684,943.69. The bank balances were entirely covered by Federal depository insurance or by collateral held by the Library or the Library's agent in the Library's name.

-9-

FLINT RIVER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

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 of loss associated with torts and assets. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

The Library has elected to self-insure for all losses related to natural disaster. In addition, the Library has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years.

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.

The Library participates in the Association County Commissioners of Georgia-Self Insured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with Safety National Casualty Corporation to provide coverage for potential losses by the Fund in excess of $450,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Director Board Treasurer

$ 20,000.00 $ 20,000.00

Note 4: 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.

- 10-

FLINT RIVER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 5: 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.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 65,633.28 $ 66,748.70 $ 64,350.75

- 11 -

FLINT RIVER REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 3D, 1997

EXHIBIT IIE"

ASSETS Cash and Cash Equivalents

LOTIERY PROGRAM

$

0,00 $

FEDERAL PROGRAM

TOTALS JUNE 30, 1997 JUNE 30,1996

3,227.08 $

3,227.08 $ ===2,==67=7=,9.=4

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Program

Unreserved

Undesignated

$

$ ---'-0._00_

3,227.08 $ 0.00

3,227,08 $ 0,00

2,677.94 0,00

Total Fund Equity

$

0,00 $

3,227.08 $

3,227.08 $===2,==67=7=.9.=4

See notes to the general purpose financial statements.

- 12-

FLINT RIVER REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1997

EXHIBIT "F"

FUND BALANCE JUNE 30

$

0.00 $

3,227.08 $

3,227.08 $ ======2=,6=7=7.=94=

See notes to the general purpose financial statements.

-13-

FLINT RIVER REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30,1997

SCHEDULE "1"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS

Technical and Adult Education, Georgia Department of

Public Libraries

Salaries and Travel

$ 467,400,94

Library Materials

121,834,00

Maintenance and Operations

114,234,00

Lottery Program

Assistive Technology

$

15,100,00

$ 467,400,94 121,834,00 114,234,00
15,100.00

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

_ _ _ _ $ 199,904,00

199,904.00

$ 703,468,94 $ 15,100.00 $ 199,904.00 $ 918,472.94

See notes to the general purpose financial statements,

- 14 -

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

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ====4~0,==00==0=.0==0

See notes to the general purpose financial statements.

- 15 -

EXPENDITURES
Technical Services Equipment

FLINT RIVER REGIONAL LIBRARY SCHEDULE OF EXPENDITURES
LOTIERY PROGRAM YEAR ENDED JUNE 30, 1997

SCHEDULE "3"
ASSISTIVE TECHNOLOGY
$ ===15=,=10:=0:.=,0=,=0

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

FLINT RIVER REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Barker, Brooks, Dupree, Farris, Hunton, Marshall, Millican, Murphy, Parham, Pryor, Rivers, Snell, Terrell, Tingen, White, Wooten, Worley, Young,

Lynette P. Yvonne N. Ann C. Jeanne J. Brenda L. VickieW, E. Evans Walter H. M. Marsha Patricia B, Michele Lee Christeen Kathleen M, James D. Belinda Norris Joanne Benjamin J.

POSITION

SALARIES

TRAVEL

Data Entry Operator

$

Data Processing Assistant

Public Services Librarian

Head Cataloger

Secretary

Public Services Librarian

Public Services Librarian

Director

Children's Librarian

Secretary

Library Page

Branch Manager

Administrative Assistant/Courier

Coordinator, Public Services

Public Services Assistant

Public Services Librarian

Public Services Assistant

Library Page

18,974.76 20,113,68 37,671.40 $ 48,374,16
1,843.00 39,965,60 34,999.40 93,987,08 42,400,00 16,131,79
1,253.75 46,213.80 31,213.76 43,672,00 16,587.84 44,982.00 16,587.84
1,136.00

116.61
140,94 49.56 165.86 90.01
94.21 19.25

$

556,107.86 $===6;,;7==6==:,44=

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

SECTION II FINDINGS AND QUESTIONED COSTS

FLINT RIVER REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Deficit Fund Balance Financial Statements Finding Resolved Finding Control Number 7262-96-01
The audit report for the year ended June 30, 1996, stated that the Flint River Regional Library - General Fund had a deficit balance of$17,210.36. During the year under review, the Library eliminated this deficit.
AUDIT FOLLOW-UPIRESOLUTION Allowable Costs/Costs Principles Federal Financial Assistance Amount: $19,499.00 Finding Control Number 7262-96-03
The audit report for the year ended June 30, 1996, stated that the Flint River Regional Library received a federal grant of $32,000.00 for a Computerized Learning Laboratory Project funded under the Library Services and Construction Act - Title I - Public Library Services Program (CFDA 84.034). Audit tests performed on this grant revealed $19,499.00 was expended for the purpose of replacing an existing delivery van.
Even though this expenditure was approved in advance by the Grantor (Division of Library Services, Georgia Department of Education), the expenditure does not appear to be a proper expenditure of Federal financial assistance funds in accordance with allowable cost criteria defmed in Office of Management Budget Circular A-87, which states, in part:
"Costs must be necessary and reasonable for proper and efficient administration of the grant programs, be allocable thereto under these principles, and except as specifically provided herein, not be a general expense required to carry out the overall responsibilities of State, local or federallyrecognized Indian tribal governments."
In addition, 34 CFR 770.10 requires Title I funds to be used for projects with objectives that are to plan, establish, extend or improve public library services. The use of Title I funds to replace an existing van constitutes a maintenance expenditure and does not meet the stated objectives for projects funded under Public Library Services grants.
The Division of Public Library Services of the Georgia Department of Technical and Adult Education should make a further determination as to the allowability of this expenditure based on grant regulations and appropriate OMB cost principles. Any portion of the cost deemed allowable should be prorated to the grant on a usage basis. The portion of this expenditure unrelated to the grant should be refunded to the Division of Public Library Services.
- 1-

FLINT RIVER REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Allowable Costs/Costs Principles Federal Financial Assistance Amount: $19,499.00 Finding Control Number 7262-96-03
Note: On July 1, 1996, the Division of Public Library Services was transferred from the Georgia Department of Education to the Georgia Department of Technical and Adult Education.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 7262-93-01
The audit report for the year ended June 30, 1996, noted that the management of the Flint River Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CASH MANAGEMENT Excessive Cash Balances Finding Control Number 7262-96-02
The audit report for the year ended June 30, 1996, stated 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 of Expenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit tests of cash management procedures again revealed excessive cash balance accumulations by the Library. During fiscal year 1997, the program had an average cash balance of$4,089.87 with excessive ending monthly cash balances in seven months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Technical and Adult Education and disbursement of such funds by the Library.
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