Audit report, Northeast Georgia Regional Library, Clarkesville, Georgia, year ended June 30, 1994

GA P.800 .Rl
R~<o NS \ 9q:s~cr4-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT NORTHEAST GEORGIA REGIONAL LIBRARY
CLARKESVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

NORTHEAST GEORGIA REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUNDTYPESANDACCOUNTGROUP

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

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

15

FIDUCIARY FUND TYPE

G

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

16

SCHEDULES

1 ANALYSIS OF CASH AND CASH EQUIVALENTS

17

2 ACCOUNTS RECEIVABLE

18

SCHEDULE OF REVENUE

3

STATE

19

4

FEDERAL

20

5

LOCAL AND OTHER

21

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

22

7 MEMBERSHIP OF LIBRARY BOARD

23

8 SCHEDULE OF SALARIES AND TRAVEL

24

NORTHEAST GEORGIA REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

:!0.epartm.ent nf J\uh-its
254 WASHINGTON STREET. S. W. ROOM 214
~thtubt, <1i.enrgia 30334-8400
January 13, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Northeast Georgia 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 Northeast Georgia 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. 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 conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material.
94ARL-42

In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Northeast Georgia Regional Library as of June 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 Northeast Georgia Regional Library taken as a whole. The combining and individual fund statements (Exhibits E through G) and the financial schedules (Schedules I through 8), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements ofthe Northeast Georgia Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly 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,
4f._,.~.,
Claude L. Vickers State Auditor
CLV:gp 94ARL-42

NORTHEAST GEORGIA REGIONAL LIBRARY - 1-

NORTHEAST GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1994

EXHIBIT "A"

ASSETS

GOVERNMENTAL FUND TYPES

ACCOUNT GROUP

---------------------------------------- FIDUCIARY -------------

SPECIAL

CAPITAL

FUND TYPE

GENERAL

TOTAL

GENERAL FUND

REVENUE FUND

PROJECTS ------------ LONG-TERM (Memorandi,n

FUND AGENCY FUND

DEBT

Only)

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

Cash and Cash Equivalents

$ 17,707.25

$ 19,315.18$

741. 71

$ 37,764.14

Accounts Receivable

36.63 $

28.53

65.16

Amount to be Provided in Future Years for Payment of Compensated Absences

$ 16,457.63

16,457.63

Total Assets

$ 17,743.88 $

28.53 $ 19,315.18$

741.71 $ 16,457.63 $ 54,286.93

=========== =========== ============ ============ ==========-= =========

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

$

Expired Grant Balances Payable

Funds Held for Others

Canpensated Absences

$ 1,391.60
0.36

Total Liabilities FUND EQUITY

$ 1,391.96$

Fund Balances Unreserved Undesignated

16,351.92

28.53 28.53

$

28.53

1,391.60

0.36

$

741.71

741.71

$ 16,457.63

16,457.63

$ 741.71 $ 16,457.63 $ 18,619.83

0.00 $ 19,315.18

0.00

35,667.10

Total Liabilities and

Fund Equity

$ 17,743.88 $

28.53 $ 19,315.18$

741. 71 $ 16,457.63 $ 54,286.93

=========== =========== ============ ============ ===========:r.= =--=======

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

NORTHEAST GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

REVENUES
--------

SPECIAL

CAPITAL

TOTAL

GENERAL

REVENUE

PROJECTS

(Memorandum

FUND

FUND

FUND

Only)

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

State Funds Federal Funds Local and Other Funds
Total Revenues

$ 312,967.16 $ 105,000.00

$ 417,967.16

36.63

16,781.53

16,818.16

118,102.20

$ 20,151.60

138,253.80

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

$ 431,105.99 $ 121,781.53 $ 20,151.60 $ 573,039.12
------------- ------------- ------------- -------------

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

Current Program Services Technical Services Circulation Administration Maintenance and Operation
Capital Outlay

$ 153,899.15 $ 35,799.58 $

822.49 $ 190,521.22

46,056.01

35,528.77

81,584.78

27,511.34

27,511.34

188,488.91

1,510.18

13.93

190,013.02

12,353.69

500.00

12,853.69

48,861.00

48,861.00

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

Total Expenditures

$ 428,309.10 $ 122,199.53 $

836.42 $ 551,345.05

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

Excess of Revenues over (under) Expenditures $ 2,796.89 $

-418.00 $ 19,315.18 $ 21,694.07

FUND BALANCE JULY 1, 1993
-------------------------

13,555.03

418.00

0.00

13,973.03

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

FUND BALANCE JUNE 30, 1994

$ 16,351.92 $

0.00 $ 19,315.18$ 35,667.10

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

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

4

NORTHEAST GEORGIA 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 Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1993

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 417,967.16 $ 417,967.67 $

-0.51

16,818.16

21,000.00

-4,181.84

138,253.80 144,918.48

-6,664.68

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

$ 573,039.12 $ 583,886.15 $ -10,847.03
------------- ------------- -------------

$ 190,521.22 $ 222,755.23 $ 32,234.01

81,584.78

85,413.27

3,828.49

27,511.34

12,683.88 -14,827.46

190,013.02 209,424.71

19,411.69

12,853.69

33,606.40

20,752.71

48,861.00

20,000.00 -28,861.00

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

$ 551,345.05$ 583,883.49 $ 32,538.44
------------- ------------- -------------

$ 21,694.07 $

2.66 $ 21,691.41

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

$

0.00 $ 52,073.00 $ -52,073.00

0.00 -52,073.00

52,073.00

$

0.00 $

0.00 $

0.00

$ 21,694.07 $

2.66 $ 21,691.41

13,973.03

13,973.03

0.00

FUND BALANCE JUNE 30, 1994

$ 35,667.10 $ 13,975.69 $ 21,691.41
============= ============= =============

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

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
The Northeast Georgia 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 departures 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 of the above criteria, the Northeast Georgia Regional Library is determined to be a joint venture.
The Library Board consists of 16 members; 4 members appointed by Habersham County Library Board, 4 members appointed by Rabun County Library Board, 4 members appointed by Stephens County Library Board and 4 members appointed by White 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 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 of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Northeast Georgia Regional Library is located in Clarkesville, Georgia, and serves Habersham, Rabun, Stephens, and White 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.

- 6-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

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 of major capital facilities.
FIDUCIARY FUND TYPE - the agency fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the fund used to account for assets held for individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences 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.
- 7-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. Other liabilities which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results ofoperations.
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 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.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
Northeast Georgia 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 ofEducation, Division ofPublic Library Services, as a part ofthe 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 CASH DEPOSITS Cash consists of deposits (including N.O.W. 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.
- 8-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other 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.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund 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 of the 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.

- 9-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATErvffiNTS

JUNE 30, 1994

Note 2: DEPOSITS
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 of indebtedness or other direct obligations ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the 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 ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest 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 $51,161.49. The bank balances were entirely covered by Federal depository insurance.
Note 3: RISK MANAGErvffiNT
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, a total of $3,708.02 was paid in claims.
Note 4: GENERAL LONG-TERM DEBT
The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

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NORTHEAST GEORGIA REGIONAL LIBRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 4: GENERAL LONG-TERM DEBT

Compensated Absences

Balance July 1, 1993

$ 14,222.24

Additions Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits(*)

1,065.85 1,169.54

Balance June 30, 1994

$ 16,457.63

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

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: ACCUMULATED EMPLOYEES LEAVE

The Library's personnel earn up to twenty days of annual leave each year depending on years of service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave up to the maximum accumulation upon retirement or termination. See Note 1- Compensated Absences

Note 7: 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

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NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS
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, 1994, was $239,598.40; total payroll was $246,249.40.
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 $42,672.39, of which $28,296.46 was made by the Library and $14,375.93 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 Govemm~ntal 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.

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NORTHEAST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS

Total unfunded pension benefit obligation ofTRS as ofJune 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

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 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 $28,296.46 was actuarially determined and represented ..0055% 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 8: SURETY BONDS

The Library Director, Mr. G. Emerson Murphy, is bonded in the amount of $10,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 18231663, on which premium was paid through June 30, 1995.

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NORTHEAST GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1994

EXHIBIT "E"

ASSETS Accounts Receivable
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$

0.00 $

28.53 $

28.53

============= ============= c========c===

$

28.53 $

28.53

$

0.00

0.00

0.00

$

0.00 $

28.53 $

28.53

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

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

NORTHEAST GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES ANO CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "F"

REVENUES
--------
State Funds Federal Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Technical Services Administration Maintenance and Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1993
-------------------------
FUND BALANCE JUNE 30, 1994

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 105,000.00

$ 105,000.00

$ 16,781.53

16,781.53

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

$ 105,000.00 $ 16,781.53 $ 121,781.53
------------- ------------- -------------

$ 23,100.05 $ 12,699.53 $ 35,799.58

35,528.77

35,528.77

1,510.18

1,510.18

500.00

500.00

44,861.00

4,000.00

48,861.00

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

$ 105,000.00 $ 17,199.53 $ 122,199.53
------------- ------------- -------------

$

0.00 $

-418.00 $

-418.00

0.00

418.00

418.00

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

$

0.00 $

0.00 $

0.00

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

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

NORTHEAST GEORGIA REGIONAL LIBRARY STATEMENT OF CHANGES IN ASSETS ANO LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "G"

ACTIVITY FUND
ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 1993

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1994

$

3B4.29 $ 1,007.80 $

650.38 $

741. 71

============= ============= =========c=== =============

$

384.29 $ 1,007.80$

650.38 $

741. 71

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

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

NORTHEAST GEORGIA REGIONAL LIBRARY ANALYSIS OF CASH ANO CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "1"

NONINTEREST BEARING ACCOUNTS
First National Bank of Habersham, Cornelia, Georgia
INTEREST BEARING ACCOUNTS
Community Bank and Trust, Cornelia, Georgia
N.O.W. Account (3.00%) First National Bank of Habersham, Cornelia, Georgia
N.O.W. Account (2.50%) Habersham Bank Cornelia, Georgia
N.O.W. Account (2.75%)
OTHER
Petty Cash

$

741. 71

$ 19,315.18

16,516.34

1,062.38

36,893.90

100.00
$ 37,735.61
=============

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

NORTHEAST GEORGIA REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "2"

Education, Georgia Department of Federal Programs Library Services and Construction Act Title I - Public Library Services Title III - Interlibrary Cooperation and Award Process

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$

28.53 $

28.53

$

36.63

36.63

$

36.63 $

28.53 $

65.16

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

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

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1994

SCHEDULE "3"

AGENCY/FUNDING
GRANTS
Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Other State Programs Teachers' Retirement Teachers' Health Insurance Lottery Program Media Center and Library Equipment

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$ 179,886.40 51,313.00 45,713.00

$ 179,886.40 51,313.00 45,713.00

20,801.66 15,253.10

20,801.66 15,253.10

$ 105,000.00

105,000.00

$ 312,967.16$ 105,000.00$ 417,967.16
============= ============= =============

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

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

AGENCY/FUNDING
Education, U.S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services Title III - Interlibrary Cooperation and Award Process

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$ 16,781.53 $ 16,781.53

$

36.63

36.63

$

36.63 $ 16,781.53 $ 16,818.16

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

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

LOCAL SOURCES Boards of Education Habersham County Stephens County White County
City Government
Clarkesville
County Government Board of Commissioners Habersham County
Public Library Rabun County
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Photocopy Sales

GOVERNMENTAL FUND TYPES

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

CAPITAL

GENERAL

PROJECTS

FUND

FUND

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

TOTAL
-------------

$

4,500.00

4,500.00

2,400.00

7,000.00

$

4,500.00

4,500.00

2,400.00

7,000.00

52,073.00 $ 20,000.00

72,073.00

32,187.90

32,187.90

6,983.01 5,158.57 1,452.87
7.00
1,839.85
-------------

151. 60
-------------

6,983.01 5,158.57
1,604.47 7.00
1,839.85
-------------

$ 118,102.20 $ 20,151.60$ 138,253.80
============= ============= =============

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

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1 1994

SCHEDULE "6"

EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer, and Cleaning Services Property Services Supplies Library Books and Materials Utilities Communication and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

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

$ 236,264.40 $ 76,068.35 6,000.03 37.49 482.08 5,819.36 18,524.96 53,102.74 11,531.48 9,645.13 $35.90 10.30

9,985.00 2,690.19
34,833.77 $
500.00 25,329.57

$ 822.49
13.93

246,249.40 78,758.54 6,000.03 35,693.75
482.08 6,319.36 43,868.46 53,102.74 11,531.48 9,645.13
935.90 10.30

9,886.88

48,861.00

58,747.88

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

$ 428,309.10$ 122,199.53 $

836.42 $ 551,345.05

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

See notes to the general purpose financial statements. - 22 -

NORTHEAST GEORGIA REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30. 1994
BOARD MEMBER ADDRESS
Mrs. Sandra Wood, Chairperson(*) Route 1, Box 2747 Tiger, Georgia 30576
Mrs. Connie Worley, Vice-Chairperson(*) 132 Addington Drive Toccoa, Georgia 30577
Mr. Don Bell (*) Route 1 Tiger, Georgia 30576
Mrs. Sue Blalock(*) P. 0. Box 597 Cleveland, Georgia 30528
Mrs. Vanita Croom(*) P. 0. Box 1 Clayton, Georgia 30525
Mrs. Mary Garrison(*) P. 0. Box 229 Cornelia, Georgia 30531
Mr. Car~y Highsmith(*) Route 7, Box 7013 Cleveland, Georgia 30528
Mrs. Rowena Lovell (*) P. 0. Box 805 Clarkesville, Georgia 30523
Mr. William S. Loyd(*) 103 Grandview Circle Cornelia, Georgia 30531
Mrs. Katheryne Lunsford(*) P. 0. Box 518 Clarkesville, Georgia 30523
Mrs. Loris Mann(*) P. 0. Box 91 Helen, Georgia 30545
Mrs. Ola Masters (*) P. 0. Box 257 Helen, Georgia 30545
Mrs. Elena Shirley(*) Route 2, Box 2341 Clayton, Georgia 30525
Mrs. Lida Sims(*) 803 East Doyle Street Toccoa, Georgia 30577
Mr. Jack Stovall (*) Mize Road Toccoa, Georgia 30577
Mrs. Olivia Wright(*) 102 Oak Creek Circle Toccoa, Georgia 30577
(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements.
- 23 -

SCHEDULE "7"

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1994

SCHEDULE "8"

PERSONNEL
---------
Brown,
Eller, Greer, Head, Kendrick, Kilpatrick, Murphy, Skinkle, Teasley, Vickery, Wall,

Wi 11 i am M. Jewel Dorothy W. Ann Mary Margaret Lynn G. Emerson John Lil a Sarah Holly

POSITION
--------
Bookmobile

SALARIES

TRAVEL

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

$ 12,756.00

Branch Head

23,250.00

Regional Bookkeeper

6,280.00

Technical Services Clerk

12,756.00

Custodian

371. 00

Circulation/Reference Librarian

38,906.80 $

523.51

Director

39,901.20

3,684.34

Librarian/Extension Services

37,372.80

1,129.97

Technical Service Librarian

33,205.20

584.68

Youth Service Librarian

31,550.40

77 .53

Circulation Clerk

9,900.00
------------- -------------

$ 246,249.40$ 6,000.03
============= =============

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

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Segregation ofDuties Audit Control Number 6682-93-01
The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation of duties in the performance of accounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Audit Control Number 6682-93-02
The audit report for the year ended June 30, 1993, noted that the Library did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. 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 of land, buildings and equipment 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.

SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

NORTHEAST GEORGlA REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
ACCOUNTING CONTROLS (OVERALL) Inadequate Segregation ofDuties Audit Control Number 6682-93-0 I
We concur with this finding; however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perforrn the accounting functions. With staff limitations, this finding can not be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Audit Control Number 6682-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.