Audit report, Lake Blackshear Regional Library, Americus, Georgia, year ended June 30, 1994

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT LAKE BLACKSHEAR REGIONAL LIBRARY
AMERICUS, GEORGIA YEAR ENDED JUNE 30, 1994

LAKE BLACKSHEAR REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

15

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

16

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

17

3 ACCOUNTS RECEIVABLE

18

SCHEDULE OF REVENUE

4

STATE

19

5

LOCAL AND OTHER

20

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

21

7 MEMBERSHIP OF LIBRARY BOARD

22

8 SCHEDULE OF SALARIES AND TRAVEL

24

LAKE BLACKSHEAR REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members of the Lake Blackshear Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Lake Blackshear Regional Library, as ofand for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:

94ARL-44

* 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 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 matters referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial
position ofthe Lake Blackshear Regional Library as ofJune 30, 1994, and the results of its operations for the
year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Lake Blackshear Regional Library taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 8 which includes the Schedule ofFederal Financial Assistance), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Lake Blackshear Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~4
Claude L. Vickers State Auditor
CLV:jy 94ARL-44

LAKE BLACKSHEAR REGIONAL LIBRARY -I-

LAKE BLACKSHEAR REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1994

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Amount to be Provided in Future Years For Payment of: Capital Lease Agreements Canpensated Absences

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTAL (Memorandun
Only)

$ 133,379.53$

1,027.54$ 24,608.20

4,714.21

$ 139,121.28 24,608.20

$ 11,772.90 24,906.50

11,772.90 24,906.50

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Deferred Revenue Expired Grant Balance Payable Capital Lease Agreements Canpensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Local Adult Literacy Unreserved Undesignated
Total Fund Equity

$ 133,379.53 $ 25,635.74$ 4,714.21 $ 36,679.40$ 200,408.88
=======--.=== ========= ======.::-=== ========= ==========

$ 4,161.83 $ 22,360.74 3,275.00
2,983.01
------------- -------------
$ 7,144.84 $ 25,635.74
------------- -------------

$ 26,522.57

3,275.00

2,983.01

$ 11,772.90

11,772.90

24,906.50

24,906.50

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

$ 36,679.40$ 69,459.98
------------- -------------

$ 4,048.14 122,186.55$
$ 126,234.69 $

0.00 $ 4,714.21 0.00 $ 4,714.21

$ 4,048.14 126,900.76
$ 130,948.90

Total Liabilities and Fund Equity $ 133,379.53 $ 25,635.74 $ 4,714.21 $ 36,679.40$ 200,408.88
============= ============ ============ ============ ===========
The notes to the general purpose financial statenents are an integral part of this statement.
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LAKE BLACKSHEAR REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

SPECIAL

CAPITAL

TOTAL

GENERAL

REVENUE

PROJECTS

(Memorandum

FUND

FUND

FUND

Only)

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

REVENUES
--------

State Funds Federal Funds Local and Other Funds

$ 259,184.10 $ 21,725.00 $ 53,000.00 $ 333,909.1.0

51,538.20

16,200.00

67,738.20

299,663.58

2,443.81

302,107.39

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

Total Revenues

$ 558,847.68 $ 73,263.20 $ 71,643.81 $ 703,754.69
------------- ------------- ------------- -------------

EXPENDITURES
------------

Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay Debt Service
Principal Interest

$ 152,268.15 $ 57,568.47
119,124.65 174,144.79
55,800.92

49,285.96
21,725.00 4,000.00
$

$ 218,552.64

201,554.11 57,568.47
140,849.65 178,144.79
55,800.92 218,552.64

4,011.96

4,011.96

1,718.44

1,718.44

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

Total Expenditures

$ 564,637.38 $ 75,010.96 $ 218,552.64 $ 858,200.98
------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $ -5,789.70 $ -1,747.76 $ -146,908.83 $ -154,446.29

FUND BALANCE JULY 1
-------------------

132,024.39

1,747.76

151,623.04

285,395.19

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

FUND BALANCE JUNE 30

$ 126,234.69 $

0.00 $ 4,714.21 $ 130,948.90

============= ============= ============= =============

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

LAKE BLACKSHEAR REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "C"

REVENUES
--------
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1993
-------------------------
ADJUSTMENTS
-----------
Prior Year (Net)
FUND BALANCE JUNE 30, 1994

ACTUAL

VARIANCE

PER

FAVORABLE

EXHIBIT "B"

BUDGET

(UNFAVORABLE)

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

$ 333,909.10 $ 462,011.20 $ -128,102.10

67,738.20

75,129.00

-7,390.80

302,107.39

272,476.00

29,631.39

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

$ 703,754.69 $ 809,616.20$ -105,861.51
------------- ------------- -------------

$ 201,554.11 $ 231,862.40 $ 30,308.29

57,568.47

61,526.80

3,958.33

140,849.65 227,950.00

87,100.35

178,144.79 172,117.00

-6,027.79

55,800.92

46,500.00

-9,300.92

218,552.64

70,220.00 -148,332.64

5,730.40

0.00

-5,730.40

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

$ 858,200.98 $ 810,176.20 $ -48,024.78
------------- ------------- -------------

$ -154,446.29 $

-560.00 $ -153,886.29

285,395.19 404,469.68 -119,074.49

0.00

-130.34

130.34

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

$ 130,948.90$ 403,779.34$ -272,830.44
============= ============= =============

The notes to the general purpose financial statements are an integral part of this statement.
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LAKE BLACKSHEAR REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Lake Blackshear Regional Library operates pursuant to Official Code of Georgia Annotated Sections 205-40 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 the following paragraphs, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the Lake Blackshear Regional Library is determined to be a joint venture.
The Library Board consists of38 members; 9 members from Crisp County Library Board, 9 members from Dooly County Library Board, 8 members from Schley County Library Board and 12 members from Sumter County Library Board. The Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State ofGeorgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Lake Blackshear Regional Library is located in Americus, Georgia, and serves Crisp, Dooly, Schley and Sumter Counties.
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 financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

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LAKE BLACKSHEAR REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform 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, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally 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 ofGSFIC project no. 7292-92-SB-014.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences and material capital lease obligations not appropriately accounted for and recorded in other fund types.
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 decreases (i.e., expenditures) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources.

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LAKE BLACKSHEAR REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount 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.
BUDGET
Lake Blackshear Regional Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division of Public Library Services, as a part of the Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including a savings account) 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.
RECEIVABLES
Receivables consist of grant reimbursements due from Federal or State grantors for expenditures made but not reimbursed. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

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LAKE BLACKSHEAR REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position 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.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent ofthe public funds being secured after the deduction ofthe 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 any one of or any combination ofthe following:
(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
' (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
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LAKE BLACKSHEAR REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

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

(5) Bonds ofany 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 of development authorities created by the laws ofthe State of Georgia, and

(7) Bonds, bills, notes, certificates ofindebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the 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, 1994, the bank balances were $164,562.52. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

The Library's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category
1
2 3
Total
Note3: RISKMANAGEMENT

Bank Balance $ 134,409.27
0.00 30,153.25 $ 164,562.52

The Library has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based upon experience. During fiscal year 1994, no claims were paid.

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LAKE BLACKSHEAR REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 4: GENERALLONG-TERMDEBT

CAPITAL LEASES The Lake Blackshear Regional Library has entered into various lease agreements as lessee for copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date oftheir inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Balance July 1, 1993
Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits (*)
Deductions
Balance June 30, 1994

Capital Leases
$ 15,784.86

Compensated Absences
$ 22,233.37

903.18 1,769.95
4.011.96
so $ l 1.772 2Q $ 24.206

(*) Includes related fringe benefits applicable to compensated absences at July 1, 1993.

At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items, are:

Fiscal Year Ended June 30
1995 1996 1997
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments
Note 5: SIGNIFICANT CO:MMIT:MENTS

Capital Leases
$ 5,730.60 5,240.18 2,826.69
$ 13,797.47
2,024.57
$ 1L772.90

At June 30, 1994, the Library had encumbrances in the amount of $83,778.47 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. Lottery funds in the amount of$83,275.00 are available to fund these encumbrances. Encumbrances

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LAKE BLACKSHEAR REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 5: SIGNIFICANT COMMITMENTS

outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

Media Center and Library Equipment

$ 83,778 47

The amounts described in this note are not reflected in the general purpose financial statements.

Note 6: CONTINGENT LIABILITIES

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

Note 7: ACCUMULATED EMPLOYEES LEAVE

The Library's leave policy provides that employees will be paid, at the current pay rate, for accumulated personal leave up to a maximum of30 days upon retirement or termination. See Note 1 - Compensated Absences

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

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LAKE BLACKSHEAR REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 8: RETIRE:MENT PLANS

Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is

entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement,

whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had

the member retired on the date of death on either a service retirement allowance or a disability retirement

allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years

of service) and compensation up to the time of disability or death.



Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.

The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $278,150.45~ total payroll was $325,554.87.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6 of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was . 11.81. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $49,538.64, of which $32,849.55 was made by the Library and $16,689.09 was made by employees. These contributions represented 11.81% {Library) and 6 (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board {GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1993, was as follows:

Total pension benefit obligation

$ 13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090.292,000.00

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LAKE BLACKSHEAR REGIONAL LIBRARY

EXHIBIT D 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 8: RETIRE:MENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00.
The Library's contribution for the year ended June 30, 1994, of $32,849.55 was actuarially determined arid
represented .0063% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
Note 9: SURETY BONDS
The Library Director, Ms. Jane B. Hendrix, is bonded in the amount of $10.000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No.02-0170-11639-89-2, on which premium was paid through July 1, 1996.

- 13 -

LAKE BLACKSHEAR REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1994

EXHIBIT "E"

ASSETS
Cash and Cash Equivalents Accounts Receivable

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION ACT

TITLE I PUBLIC LIBRARY SERVICES

TITLE VI LIBRARY LITERACY PROGRAM

TOTAL

$ 25,000.00

$ 25,000.00

$ 13,632.00$ 10,976.20

24,608.20

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Deferred Revenue
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undesignated

$ 25,000.00 $ 13,632.00 $ 10,976.20$ 49,608.20
============= ============= ============= =============

$ 13,632.00$ 10,340.46 $ 23,972.46

$ 21,725.00

635.74

22,360.74

3,275.00

3,275.00

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

$ 25,000.00 $ 13,632.00 $ 10,976.20 $ 49,608.20

0.00

0.00

0.00

0.00

Total Liabilities and Fund Equity $ 25,000.00 $ 13,632.00$ 10,976.20$ 49,608.20
============= ============= ============= =============

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

LAKE BLACKSHEAR REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "F"

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION ACT

TITLE I PUBLIC LIBRARY SERVICES

TITLE VI LIBRARY LITERACY PROGRAM

TOTAL

REVENUES

State Funds Federal Funds
Total Revenues
EXPENDITURES

$ 21,725.00

$ 21,725.00

$ 17,632.00 $ 33,906.20

51,538.20

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

$ 21,725.00 $ 17,632.00 $ 33,906.20 $ 73,263.20
------------- ------------- ------------- -------------

Current Program Services Circulation Administration

$ 13,632.00 $ 35,653.96 $ 49,285.96

$ 21,725.00

21,725.00

4,000.00

4,000.00

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

Total Expenditures

$ 21,725.00 $ 17,632.00 $ 35,653.96 $ 75,010.96
------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $

0.00 $

0.00 $ -1,747.76 $ -1,747.76

FUND BALANCE JULY 1

0.00

0.00

1,747.76

1,747.76

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

0.00 $

0.00

============= ============= ============= =============

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

LAKE BLACKSHEAR REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
--------------
Education, U. S. Department of Direct Library Services and Construction Act Title VI - Library Literacy Program 1993 Grant 1994 Grant Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services 1992 Carry-Over 1993 Carry-Over Title II - Public Library Construction Project No. 92-11-91-3 Through Georgia Department of Technical and Adult Education Adult Literacy Program

CFDA NUMBER
B4.167 84.167
84.034 84.034 84.154 84.002

FEDERAL FUNDS

RECEIVED IN

FEDERAL

AWARDS

PERIOD (NET REVENUE EXPENDITURES

IN PERIOD OF REFUNDS) IN PERIOD

IN PERIOD

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

$ 2,930.00$ 2,930.00$ 4,677.76

$ 33,200.00

20,000.00

30,976.20

30,976.20

4,000.00 17,000.00

4,000.00 16,200.00

4,000.00 13,632.00
16,200.00

4,000.00 13,632.00
218,552.64(1)

14,973.00
------------- ------------- ------------- -------------

Total Federal Financial Assistance

$ 54,200.00$ 58,103.00$ 67,738.20$ 271,838.60
============ ============ k-========== ============

The Library had no major programs as defined by the Single Audit Act 1984.

(1) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.

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

LAKE BLACKSHEAR REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30. 1994

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Citizens Bank of Americus, Americus, Georgia
Commercial Interest Checking (2.25%) Sumter Bank and Trust Company, Americus, Georgia
Money Market Accounts (Variable)
OTHER
Petty Cash

$ 104,467.01 34,409.27 $ 138,876.28
245.00
$ 139,121.28
=============

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

LAKE BLACKSHEAR REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30 1 1994
Education, U.S. Department of Library Services and Construction Act Title VI - Library Literacy Program
Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services

SCHEDULE "3"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ 10,976.20
13,632.00
$ 24,60B.20

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

LAKE BLACKSHEAR REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

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

$ 179,318.10 42,733.00 37,133.00
$

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

21,725.00 $

$ 179,318.10 42,733.00 37,133.00
21,725.00

53,000.00

53,000.00

$ 259,184.10 $ 21,725.00 $ 53,000.00$ 333,909.10
============= ============= ============= =============

See notes to the general purpose financial statements. - 19 -

LAKE BLACKSHEAR REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

LOCAL SOURCES City Governments Americus Byromville Cordele Ellavi 11 e Unadilla
County Governments Boards of Commissioners Crisp Dooly Schley Sumter
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Photocopy Sales Other

GOVERNMENTAL FUND TYPES

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

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

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

$ 78,875.00 1,541.46
29,010.00 4,456.00 6,800.64

$ 78,875.00 1,541.46
29,010.00 4,456.00 6,800.64

24,060.00 9,540.00 12,734.88 87,430.11

24,060.00 9,540.00 12,734.88 87,430.11

21,637.27

4,820.49

2,836.44 $

2,443.81

223.75

15,140.95

556.59

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

21,637.27 4,820.49 5,280.25
223.75 15,140.95
556.59
-------------

$ 299,663.58$

2,443.81 $ 302,107.39

============= ============= =============

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

LAKE BLACKSHEAR REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

SCHEDULE "6"

EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communication and Insurance Other Expenditures
Nonoperating Costs Debt Service Building and Building Improvements Equipment
Total Expenditures

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUNDS

TOTAL

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

$ 299,689.41 $ 82,624.31 4,950.21 1,711.53 25,452.82 11,516.80 58,078.06 38,425.62 14,642.14 1,793.99

25,865.46 4,768.23 1,791.18
359.03
2,299.2B 35,770.78
157.00

$ 325,554.B? 87,392.54 6,741.39 2,070.56 25,452.82 13,816.08 93,848.84 38,425.62 14,642.14 1,950.99

5,730.40

5,730.40

$ 35,209.54

35,209.54

20,022.09

4,000.00

183,343.10

207,365.19

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

$ 564,637.38$ 75,010.96$ 218,552.64 $ 858,200.98
=============

See notes to the general purpose financial statements. - 21 -

LAKE BLACKSHEAR REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30, 1994

SCHEDULE "7" Page 1

BOARD MEMBER ADDRESS
Mrs. Imogene Mclendon, Chairman(*) Route 2, Box 74 Ellaville, Georgia 31806
Mrs. Mary E. Bowens(*) 709 East Union Street Vienna, Georgia 31092
Mrs. Andrea Brooks(*) 105 West Patterson Street Americus, Georgia 31709
Mrs. Gwendolyn Butler(*) 323 East Forsyth Street Americus, Georgia 31709
Mr. Everett Byrd(*) 212 Lorraine Avenue Americus, Georgia 31709
Mr. Fred Causey(*) 500 Third Street Vienna, Georgia 31092
Mr. Charles Chambers(*) P. O. Box 27 Ellaville, Georgia 31806
Mr. Jeff Cobb(*) P. O. Box 279 Cordele, Georgia 31015
Mrs. Jacquelyn Cook(*) RFD Desoto, Georgia 31743
Mrs. Mary Ann Davis(*) P. 0. Box 397 Vienna, Georgia 31092
Mrs. Lillian Goff(*) 1990 Royal Road Cordele, Georgia 31015
Mr. George Greene(*) P.O. Box 753 Cordele, Georgia 31015
Mr. John Greene(*) Route 1, Box 179 E Ellaville, Georgia 31806
See notes to the general purpose financial statements.
- 22 -

Mrs. Endine Hart (*) P. 0. Box 44 Ellaville, Georgia 31806
Mr. Michael Hickerson(*) c/o Dooly County Board of Education Vienna, Georgia 31092
Mrs. Marjorie Hogood (*) Route 3 Americus, Georgia 31709
Mr. Mickey Holloway Route 1 Ellaville, Georgia 31806
Mrs. Grada Horne(*) P. 0. Box 97 Pinehurst, Georgia 31070
Mr. Floyd Hudgins(*) 132 Lakeview Circle Cordele, Georgia 31015
Mrs. Margaret Kennedy(*) 617 20th Avenue East Cordele, Georgia 31015
Mr. William B. King(*) 901 Moore Drive Americus, Georgia 31709
Mrs. Madelyn Laidler(*) Lilly, Georgia 31051
Mr. Lulean Laster(*) 508 North Mayo Street Americus, Georgia 31709
Mrs. Brenda Mansfield(*) 1219 LaFayette Street Americus, Georgia 31709
Mrs. Bettye Miller(*) P. 0. Box 73 Ellaville, Georgia 31806
Mrs. Dorothy Morgan(*) Arabi, Georgia 31712
Ms. Ida Rose Oliver(*) 614 17th Avenue West Cordele, Georgia 31015

LAKE BLACKSHEAR REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30 1 1994
BOARD MEMBER ADDRESS
Mrs. Marion Page(*) P. 0. Box 207 Byromville, Georgia 31007
Ms. Joyce A. Peavy(*) P. 0. Box 987 Unadilla, Georgia 31091
Mrs. Joan Perkins(*) P. 0. Box 179 Ellaville, Georgia 31806
Dr. Richard Reese (*) 103 Glenwood Road Americus, Georgia 31709
Mrs. Thelma Seay(*) 503 East Forsyth Street Americus, Georgia 31709
Mrs. Betty Snipes(*) P. 0. Box 433 Ellaville, Georgia 31806
Ms. Ginger Starlin(*) 1560 East Forsyth Street Americus, Georgia 31709
Mrs. Sarah Summers (*) 571 Cemetery Road Cordele, Georgia 31015
Mrs. Elaine Taylor(*) 302 Church Street Vienna, Georgia 31092
Mrs. Ellen Watson(*) RFD Briarwood Circle Americus, Georgia 31709
Mrs. Virginia Whaley(*) P. 0. Box 88 Ellaville, Georgia 31806
Mrs. Gladys Wright(*) 1101 12th Street South Cordele, Georgia 31015
(*) Denotes Board Members Serving as of June 30, 1994.
See notes to the general purpose financial statements.
- 23 -

SCHEDULE "7" Page 2

LAKE BLACKSHEAR REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "8"

PERSONNEL
---------
Bates, Becker, Brogdon, Bruce, Derise, Grace, Guttenberg, Harris, Hendrix, Hibberd, Hopkins, Hurd, Ingram, Johnson, Mathis, Medders, Michelli, Mil es, Mi 11 s, Morgan, Nelson, Rockwell , Tondee, Wishum, Wollam,

Harriet S. Lawrence T. Debra A. Jeanine S. Jean F. Harriett C. Kay C. Ella D. Jane B. Deidre D. Shirley J. David G. Mary A. Emma S. Dianne M. Diane Mary C. Judith Barbara G. Frances Brenda F.
Lois M. Sara W. Helen W. Kathleen L.

ACCRUALS June 30, 1993 June 30, 1994

POSITION
--------

SALARIES

TRAVEL

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

Assistant Director Librarian Clerk Clerk Bookmobile Manager Clerk Clerk Clerk Director Library Manager Clerk Literacy Evaluator Library Manager Administrative Literacy Assistant Clerk Technical Services Librarian Librarian Clerk Library Manager Literacy Clerk Librarian Literacy Instructor Library Manager Administrative Assistant Children's Librarian

$ 37,327.20 $

1,056.74

1,954.68

10,515.48

2,536.15

15,985.48

5,112.04

2,625.05

12,184.92

43,706.80

2,872.98

5,304.00

19,114.68

12,214.99

1,097.56

8,400.00

13.86

1,729.60

36,199.00

96.81

32,841.60

959.84

10,612.32

12,984.60

37.59

4,200.00

592.24

2,246.20

8,400.00

618.67

11,136.72

23,611.32

3,514.48

288.12

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

$ 325,554.87 $

6,536.85

-803.67
1,008.21
------------- -------------

$ 325,554.87 $ 6,741.39
============= =============

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Lake Blackshear Regional Library Board
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Lake Blackshear Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated Januuary 23, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Lake Blackshear Regional Library is the responsibility ofthe Library's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Library's
compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our
audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Lake Blackshear Regional Library complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Library had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t?~/4
Claude L. Vickers State Auditor
CLV:jy 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members ofthe Lake Blackshear Regional Library Board

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Lake Blackshear Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 23, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Lake Blackshear Regional Library's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(I) Political Activity

(6) Allowable Costs/Cost Principles

(2) Davis-Bacon Act

(7) Drug-Free Workplace Act

(3) Civil Rights

(8) Audit Follow-Up/Resolution

(4) Cash Management

(9) Administrative Requirements

(5) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits ofState and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which

94CRL-50

is the expression of an opinion on the Library's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Library had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and oth~r Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Lake Blackshear Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Lake Blackshear Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 23, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1994 general purpose financial statements of the Lake Blackshear Regional Library and with our consideration of the Library's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Lake Blackshear Regional Library's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Lake Blackshear Regional Library had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
c?~~
Claude L. Vickers State Auditor
CLV:jy 94CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 23, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Lake Blackshear Regional Library Board
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Lake Blackshear Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 23, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the Lake Blackshear Regional Library for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Lake Blackshear Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because
94ICL-3

ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(I) Cash and Cash Equivalents

(5) Employee Compensation

(2) Revenue/Receivables/Receipts

(6) General Ledger

(3) Procurement

(7) General Fixed Assets

(4) Expenditures/Liabilities/ Disbursements

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

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

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

(I) Accounting Controls (Overall)

(2) General Fixed Assets

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

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

94ICL-3

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Lake Blackshear Regional Library's financial statements and this report does not affect our report thereon dated January 23, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 94ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Lake Blackshear Regional Library Board
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Lake Blackshear Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 23, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Lake Blackshear Regional Library complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Library's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Library's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated January 23, 1995.

94ICL-15

The management of the Lake Blackshear Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(1) Political Activity (2) Davis-Bacon Act (3) Civil Rights (4) Cash Management (5) Federal Financial Reports (6) Allowable Costs/Cost Principles

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Reporting
(4) Other Requirement Claims for Advances and Reimbursements

(7) Drug-Free Workplace Act

(8) Audit Follow-Up/Resolution

(9) Administrative Requirements

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

During the year ended June 30, 1994, the Lake Blackshear Regional Library had no major Federal financial assistance programs and expended 51% of its total Federal financial assistance under the following nonmajor Federal financial assistance program:

94ICL-15

Library Services and Construction Act Title VI - Library Literacy Program
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements, and specific requirements, as described above that are applicable to the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be :a a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Liabrary's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

LAKE BLACKSHEAR REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7292-93-01
The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "l" ofthis report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition -Material Weakness Audit Control Number 7292-93-02
The audit report for the year ended June 30, 1993, noted that the management of the Lake Blackshear 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 purposes 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 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 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.

LAKE BLACKSHEAR REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
CIVIL RIGHTS Failure to Establish and Implement Grievance Procedures Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7292-94-01
The Lake Blackshear Regional Library failed to establish and implement grievance procedures that provide due process standards for prompt and equitable resolution of civil rights complaints as required by 34 CFR 104.7(b). This condition occurred because management was not aware of the grievance procedure requirements of Civil Right Law. Appropriate action should be taken by the Library to establish and implement such procedures.
DRUG-FREE WORKPLACE ACT Inadequate Drug-Free Workplace Program Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7292-94-02
According to provisions of P. L. 100-690, all grantees that have been approved or awarded a Federal grant are required to establish a drug-free workplace program containing certain information. In the year under review, the Library's drug-free awareness program did not include notifying employees of available drug rehabilitation and employee assistance programs. The condition occurred because management was not aware of the requirement that they notify employees of available drug rehabilitation and employee assistance programs. The Library should provide all employees with information pertaining to available drug rehabilitation and employee assistance programs.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

LAKE BLACKSHEAR REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7292-93-01
We concur with this finding. However, due to current budgetary constraints, the Library is unable to hire the additional staff required to clear this finding. The Library feels it has provided for the most appropriate assignment ofduties with the personnel available to perform the accounting functions. With staff limitations, this finding cannot be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7292-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Library has decided not to pursue the recording of general fixed assets on the financial statements.
CIVIL RIGHTS Failure to Establish and Implement Grievance Procedures Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7292-94-01
We concur with this finding. This finding will be resolved before June 30, 1995 by having a Civil Rights Grievance Procedure Policy approved by the Lake Blackshear Regional Library Board at its regular May 1995 meeting.
DRUG-FREE WORKPLACE ACT Inadequate Drug-Free Workplace Program Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7292-94-02
We concur with this finding. We are now complying with the provisions of P. L. 100-690 requiring the notification of employees of available drug rehabilitation and employee assistance programs.