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AUDIT REPORT MOUNTAIN REGIONAL LIDRARY
YOUNG HARRIS, GEORGIA YEAR ENDED JUNE 30, 1996

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

MOUNTAIN 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

A BALANCE SHEET

ALL FUND TYPES

2

B STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

SCHEDULES

1 CASH AND CASH EQUIVALENTS

12

2 ACCOUNTSRECENABLE

13

SCHEDULE OF REVENUE

3

STATE

14

4

FEDERAL

15

5

OTHER

16

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPE

17

7 MEMBERSHIP OF LIBRARY BOARD

18

8 SCHEDULE OF SALARIES AND TRAVEL

20

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

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
March 21, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the Mountain Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Mountain Regional Library, as of and for the year ended June 30, 1996, 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. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the general purpose financial
statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements 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 confonn 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.
96ARL-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 present fairly, in all material respects, the financial position of the Mountain Regional Library as ofJune 30, 1996, and the results ofits 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 Mountain Regional Library taken as a whole. The financial schedules (Schedules 1 through 8), 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 of the Mountain Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly 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 of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 96ARL-42

MOUNTAIN REGIONAL LffiRARY
- 1-

MOUNTAIN REGIONAL LIBRARY BALANCE SHEET ALL FUND TYPES JUNE 30. 1996

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
FUND EqUITY Fund Balances
Reserved For Purchase of Ubrary Books and Materials
Unreserved Undesignated
Total Fund Equity

GOVERNMENTAL FUND TYPE GENERAL FUND

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

$

101,811.51 $ 101,811.51 $

100,960.79

10.89

10.89

$

101,822.40 $ 101,822.40 $======1=0:::!0,=96=:0=.7==9

$

57,496.81 $

57,496.81 $

11,550.05

44,325.59

44,325.59

89,410.74

$

101 ,822.40 $ 101 ,822.40 $ ======1=0:::!O,=96=:0=.7==9

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

MOUNTAIN REGIONAL LIBRARY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1996

EXHIBIT "B"

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

GENERAL FUND

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

$

229,292.82 $

229,292.82 $

8,079.36

8,079.36

181,510.03

181,510.03

$

418,882.21 $

418,882.21 $

207,479.10 8,000.00
158,846.81
374,325.91

$

50,504.99 $

50,504.99 $

23,374.79

23,374.79

95,232.33

95,232.33

219,212.02

219,212.02

29,696.47

29,696.47

$

418,020.60 $

418,020.60 $

$

861.61 $

861.61 $

100,960.79

100,960.79

38,478.73 20,740.40 82,018.40 206,309.94 20,782.54
1,100.00
369,430.01
4,895.90
96,064.89

FUND BALANCE JUNE 30

$

101,822.40 $

101,822.40 $==1=0=0,=96=0=.7==9

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

MOUNTAIN REGIONAL LIBRARY

EXHIBIT "C"

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL FUND

YEAR ENDED JUNE 30, 1996

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

BUDGET

ACTUAL

$ 219,292.80 $ 8,000.00
171,161.62

229,292.82 8,079,36
181,510.03

$ 398,454.42 $ 418,882.21

$ 37,876.46 $ 23,817;81 97,345.28
215,219.84 24,195.03

50,504.99 23,374.79 95,232.33 219,212.02 29,696.47

$ 398,454.42 $ 418,020.60

$

0.00 $

861.61

127,855.46

100,960.79

FUND BALANCE JUNE 30,1996

$ 127,855.46 $ 101,822.40

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

MOUNTAIN REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

No"te 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Mountain Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library. The Governmental Accounting Standards Board (GASB) is the accepted 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 governmental unit for financial reporting purposes, management has considered
the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Mountain Regional Library is determined to be a joint venture.
The Library Board consists of 15 members; 7 members appointed by Fannin County Library Board, 4 members appointed by Towns County Library Board and 4 members appointed by Union County Library Board. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in 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 of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Mountain Regional Library is located in Young Harris, Georgia, and serves Fannin, Towns and Union Counties.
FUND ACCOUNTING
The Library uses a fund 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.

- 5-

MOUNTAm REGIONAL LffiRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1996

Note 1: SlTh1MARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To confonn to generally accepted accounting principles, a General Fixed
Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund
types.
The general purpose financial statements account for all State, Federal and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. The fund presented in this report is as follows:
GOVERNMENTAL FUND TYPE - used to account for all of the Library's general activities. The Governmental Fund Type includes:
GENERAL FUND - the fund used to account for all financial resources of the Library. These transactions
relate to resources obtained and used for services provided by a Library.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
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 ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Mountain 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

- 6-

MOUNTAIN REGIONAL LmRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part ofthe 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 (including certificates of deposit and savings accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
The receivable consists of a grant reimbursement due from a State grantor for expenditures made but not reimbursed. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
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.
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. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent of the public funds being

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MOUNTAIN REGIONAL LffiRARY

EXInBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS
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 ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia,
(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 ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates 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 Intennediate 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, 1996, the bank balances were $114,294.73. The bank balances were entirely covered by Federal depository insurance.
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 unemploym~nt compensation.

- 8-

MOUNTAIN REGIONAL LmRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

No"te 3: RISK MANAGEMENT
The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illnesses or injuries to employees. However, the error or omissions policy excludes
coverage for sexual harassment and discrimination. The Library has neither significantly reduced coverage for
these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any ofthe past three years.
The Library has elected to self-insure for all losses related to natural disaster. 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 of that loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.
Note 4: ON-BEHALF PAYMENTS
The Library has recognized revenues and expenditures in the amount of$5,389.00 for salaries paid on the Library's behalf as follows:
City ofBlairsville For Salaries ofLibrary Personnel In the amount of $189.00
Union County Board of Commissioners For Salaries ofLibrary Personnel In the amount of $5,200.00
Note 5: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 6: 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).
- 9-

MOUNTAIN REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 6: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years ofservice 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 ofyears 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.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is
entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement,
whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1996, was $238,172.71; total payroll was $249,929.42.
TRS CONTRmUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1996, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $40,036.99, of which $28,128.18 was made by the Library and $11,908.81 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to
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MOUNTAIN REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

No"te 6: RETIREMENT PLANS

enable readers ofPERS financialstatements 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 ofJune 30, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585.541.00000

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of$28,128.18 was actiIarially determined and represented .0047% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 7: SURETY BONDS

All employees of the Library are bonded in the amount of $10,000.00 with the Utica National Insurance Group, New York, New York, their Bond No. CPP-1907014, on which premium was paid through August 15, 1996.

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MOUNTAIN REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30. 1996

SCHEDULE "1"

INTEREST BEARING ACCOUNTS
Bank of Hiawassee, Hiawassee, Georgia
Certificate of Deposit No. 9892 (4.96%)
Towns County Bank, Hiawassee, Georgia
Money Market Account (2.75%)
Union County Bank, Blairsville, Georgia
SCM Interest Account No. 1580 (2.50%)
Certificates of Deposit No. 22034 (5.25%) No. 22634 (5.25%) No. 900386 (5.15%)
OTHER
Petty Cash

$ 10,000.00 15,939.60

$

54,581.91

10,000.00 10,000.00
1,280.00

75,861.91 $ 101,801.51

10.00 $ 101,811.51

See notes to the general purpose financial statements.

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MOUNTAIN REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30,1996
Education, U. S. Department of Through Georgia Department of Education Trtlelll Interlibrary Cooperation and Resource Sharing

SCHEDULE "2"
GOVERNMENTAL FUND TYPE GENERAL FUND
$====1=0=.8:::9

See notes to the general purpose financial statements.

- 13 -

MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30,1996
AGENCYIFUNDING
GRANTS Education, Georgia Department of Public Ubraries Salaries and Travel Ubrary Materials Maintenance and Operations Lottery Program Technology Installation

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

171,596.82

26,148.00

21,548.00

10,000.00

$

229,292.82

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

MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1996
AGENCYIFUNDING Education, U. S. Department of Through Georgia Department of Education Ubrary Services and Construction Act Title I - Public Ubrary Services Title III - Interlibrary Cooperation and Resource Sharing

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

8,000.00

79.36

$

8,079.36

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

MOUNTAIN REGIONAL LIBRARY SCHEDULE OF OTHER REVENUE
YEAR ENDED JUNE 30. 1996
LOCAL SOURCES Boards of Education Fannin County Towns County Union County City Governments Blairsville Blue Ridge Hiawassee McCaysville Mineral Bluff Morganton Young Harris County Governments Boards of Commissioners Fannin Towns Union
OTHER SOURCES Donations Fines and Fees Interest Earned Photocopy Sales

SCHEDULE "5"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

37,275.82

17,320.10

29,288.30

189.00 500.00 150.00 100.00 100.00 100.00 200.00

34,369.00 17,320.10 34,488.30

4,201.26 820.79
3,797.36 1,290.00

$===18=1::::.,5=1=0.=03=

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

MOUNTAIN REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30, 1996
EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Ubrary Books and Materials Utilities Communications and Insurance Dues and Fees
Nonoperating Costs Equipment
Total Expenditures

SCHEDULE "6"
GENERAL FUND
$ 249,929.42
69,625.68 4,669.50 17.89
12,338.29 7,850.45
31,741.37 14,666.89 8,090.51
445.00
18,645.60
$ 418,020.60

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

BOARD MEMBER ADDRESS
Mr. Roy Hyink, Chairman (*) 1440 Cochran Road Hiawasse, Georgia 30546
Ms. Doris Abernathy (*) P. 0, Box 124 McCaysville, Georgia 30555
Ms. Gail Bailey (*) 1025 Bailey Drive Young Harris, Georgia 30582
Mr, Jim Dobson (*) P. O. Box 925 Blairsville, Georgia 30512
Ms. Elma Ettman (*) P. 0, Box 1 Blue Ridge, Georgia 30513
Mr. C. D. Fisher (*) P.O.Box277 Blairsville, Georgia 30512
Ms. Rhetta Grey (*) P. O. Box 1140 Hiawassee, Georgia 30546
Mr. Jack Hall (*) P. O. Box 1348 Blue Ridge, Georgia 30513
Ms. Joyce Holmes (*) 1136 Friendship Road Hiawassee, Georgia 30546
Ms. Elizabeth Lashley C*) 667 Miller Street Young Harris, Georgia 30582
Mr. John Nichols C*) P. O. Box 243 Blue Ridge, Georgia 30513
Mr. William Nichols C*) 2290 East First Street Blue Ridge, Georgia 30513
Ms. Betty Jane Sedgwick (*) 7839 Russell Scenic Highway Blairsville, Georgia 30512
Ms. Barbara Stephens C*) P. O. Box 91 Morganton, Georgia 30560
Ms. Louise Stiles C*) P. O. Box 653 Blue Ridge, Georgia 30513

MOUNTAIN REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30,1996
- 18 -

SCHEDULE '7"

EXOFFICIO MEMBERS
Mr. Ronnie Anderson r)
P.O. Box 157 Morganton, Georgia 30560
r) Mr. Morgan Arp
2290 East First Street Blue Ridge, Georgia 30513
Ms. Doris Colwell r)
P.O. Box 307 Blairsville, Georgia 30512
Mr. Jack Dayton r) 48 River.Street, Suite B Hiawassee, Georgia 30546
Mr. Donnie Dockery C*) P. O. Box 6 McCaysville, Georgia 30555
Mr. Glen Gooch C*) 114 Courthouse Street, Box 1 Blairsville, Georgia 30512
Mr. Robert Greene C*) P. O. Box 2349 Blue Ridge, Georgia 30513
Mr. James Kimsey C*) 67 Lakeview Circle, Suite C Hiawassee, Georgia 30546
Ms. Barbara Mathis C*) P.O. Box 549 Hiawassee, Georgia 30546
Ms. Leslie Queen C*) P. O. Box 289 Mineral Bluff, Georgia 30559
Mr. Carless Sampson C*) P. O. Box 122 Young Harris, Georgia 30582
Mr. Tommy Stephens C*) 10 Hughes Street Blairsville, Georgia 30512
Mr. Richard Vollrath C*) P. O. Box 487 Blue Ridge, Georgia 30513

MOUNTAIN REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30.1996

C*) Denotes Board Members Serving as of June 30,1996 See notes to the general purpose financial statements.

- 19 -

SCHEDULE '7"

MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1996

SCHEDULE "8"

PERSONNEL

Ash, Barnes, Burchardt, Clark, Collis, Cowgill, Fatora, Foster, Haymore, Howell, Hunnicutt, Keys, Lynch, Mcilrath, Nelson, Pendergrass, Phillips, Sutphin, Weaver, Williams,

WilmaB. Constance M. Sandra L. TeddyP. SueC. Ellen Elaine K. Linda M. Teresa P. DonnaW. CarolynA. PeggyA. Joann C. Rhonda J. Edna E. Marlene C. Deborah C. Dorothea J. Nannette M. GaryO.

POSITION

SALARIES

TRAVEL

Librarian

$

Children's Service Coordinator

Library Assistant

Processing Clerk

Library Assistant

Library Assistant

Circulation Clerk

Children's Service Coordinator

Director

Assistant Director

Processing Clerk

Bookmobile Driver

Library Assistant

Bookmobile Assistant

Library Assistant

Bookmobile Driver

Branch Manager

Librarian

Library Assistant

Library Assistant

36,903.60 $ 1,050.50 378.00 6,434.00
12,425.40 5,487.50
14,040.00 4,033.32 38,603.20 33,618.40 10,332.30 1,840.00 10,400.00 1,081.25 5,460.00 11,373.96 9,530.40 30,824.00 10,580.09 5,533.50

49.00 34.02
329.75 2,279.79 1,394.20
9.00
12.00 561.74

$

249,929.42 $===4=,6=:6=9=:,5=0

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

SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS

MOUNTAIN REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
.,.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7392-93-01
The audit report for the year ended June 30, 1995, stated that the Library did not provide for adequate separation ofemployee duties in the perfonnance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement in regarding adequate separation of employee duties. This deficiency was a result ofmanagement's decision to limit the number of administrative staffmade 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.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7392-93-02
The audit report for the year ended June 30, 1995, noted that the management of the Mountain Regional Library has 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 proceduresto 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 ofall additions and deletions to the General Fixed Assets Account Group.
Note: The Mountain Regional Library was provided an opportunity to include pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusion in this report.