Audit report, Northeast Georgia Regional Library, Clarkesville, Georgia, year ended June 30, 1995

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19Ct4- 95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT NORTHEAST GEORGIA REGIONAL LIBRARY
CLARKESVILLE, GEORGIA YEAR ENDED JUNE 30, 1995

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

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDMDUAL FUND STATEMENTS

CAPITAL PROJECTS 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 CASH AND CASH EQUIVALENTS

17

SCHEDULE OF REVENUE

2

STATE

18

3

FEDERAL

19

4

LOCAL AND OTHER

20

5 SCHEDULE OF EXPENDITURES BY OBJECT

GENERAL AND SPECIAL REVENUE FUNDS

21

6 MEMBERSHIP OF LIBRARY BOARD

22

7 SCHEDULE OF SALARIES AND TRAVEL

23

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 21, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the 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 of and for the year ended June 30, 1995, 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 has not been determined, but is believed to be material.

95ARL-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 ofthe Northeast Georgia Regional Library as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming 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 1 through 7), 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 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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
R~~~

CLV:dt 95ARL-42

Claude L. Vickers State Auditor

NORTHEAST GEORGIA REGIONAL LIBRARY - 1-

NORTHEAST GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1995

ASSETS Cash and Cash Equivalents Accounts Receivable Amount to be Provided in Future Years
For Payment of Compensated Absences
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Expired Grant Balances Payable Funds Held for Others Compensated Absences
Total Liabilities FUND EQUITY
Fund Balances Reserved For State Capital Outlay Project Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

35,873.39 $

0.00 $

60,304.91

$

35,873.39 $

----- 0.00 $

60,304.91

$

3,222.66

$ _ _...;3;.,;,2=2=2=.6.;;_6

$

42,855.95

$

32,650.73 $ _ _ _ _o._o_o

17.448.96

$

32,650.73 $

0.00 $ _ _6_0_,_3_0_4._9_1

$

35,873.39 $

0.00 $ ===6=0,3=04=.91=

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

EXHIBIT"A"

FIDUCIARY FUND TYPE AGENCY FUND

$

0.00

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum On!}'.} JUNE 3011995 JUNE 3011994

$

96,178.30 $

37,764.14

65.16

$

181123.67

18,123.67

16 457.63

$

0.00 $

18,123.67 $ 114,301.97 $

54,286.93

$

28.53

$

3,222.66

1,391.60

0.36

741.71

$

181123.67

181123.67

16,457.63

$

18,123.67 $

21,346.33 $

18,619.83

$ _____o_.o_o $ _____o._o__o_

$

0.00 $

$

42,855.95

501099.69 $ _ _3_5..,.6.._6_7._1_0

$

92,955.64 $ _ _3;..;;5..:.,.,6_6_7._10_

18,123.67 $

114,301.97 $ ===5=4=,28=6=.9=3

-3-

NORTHEAST GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995

EXHIBITe

REVENUES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS
{Memorandum On~} YEAR ENDED
JUNE 3011995 JUNE 3011994

State Funds Federal Funds Local and Other Funds
Total Revenues

$ 324.624.88 22.50 $
1021137.32
$ 426z784.70 $

21,218.47 $
211218.47 $

$ n731.10
ni731.10 s

324,624.88 $ 21,240.97
1791875.02
525z740.87 $

417,967.16 16,818.16
1381253.80
5731039.12

EXPENDITURES

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

$ 175,593.16 $ 52,034.05 24,235.54
147,112.16 11,510.98

4,218.47 17,000.00
$

$ 36747.97

179,811.63 $ 69,034.05 24,235.54
147,112.16 11,510.98 36747.97

190,521.22 81,584.78 27,511.34 190,013.02 12,853.69 481861.00

Total Expenditures

$ 4101485.89 $

211218.47 $

36747.97 $ 4681452.33 $ 5511345.05

Excess of Revenues over (under) Expenditures $

16,298.81 $

0.00 $

40,989.73 $

57,288.54 $

21,694.07

FUND BALANCE JULY 1

161351.92

0.00

191315.18

351667.10

131973.03

FUND BALANCE JUNE 30

$

32,650.73 $

0.00 $

60 304.91 $

92,955.64 $

351667.10

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

NORTHEAST GEORGIA REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1994
FUND BALANCE JUNE 30, 1995

GENERAL FUND

BUDGET

ACTUAL

$ 324,625.00 $ 324,624.88

22.50

101,751.00

102,137.32

$ 426,376.00 $ 426,784.70

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 21,247.00 $ 21,218.47 $ 21,247.00 $ 21,218.47

$ 172,404.36 $ 175,593.16

52,044.30

52,034.05

26,291.46

24,235.54

150,784.38

147,112.16

18,300.00

11,510.98

$ 419,824.50 $ 410,485.89

$

6,551.50 $

16,298.81

16,351.92

16,351.92

$

22,903.42 $

32,650.73

$

4,218.47 $

4,218.47

17,000.00

17,000.00

$ 21,218.47 $ 21,218.47

$

28.53 $

0.00

0.00

0.00

$

28.53 s____o_.oo=

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

NORTHEAST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY 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 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. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the 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 sixteen members; four members appointed by Habersham County Library Board, four members appointed by Rabun County Library Board, four members appointed by Stephens County Library Board and four 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 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 oflocal 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

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 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 special revenue fund consists of proceeds received from Federal sources to accomplish the objectives of the Library Services and Construction Act - Title 1, Public Library Services program. These funds 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.
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.
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NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 of operations.
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.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Northeast Georgia Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Library at the aggregate level. The budget for governmental funds is 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 of the Library's annual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.

- 8-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and 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.
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 of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results 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 ofthis 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. 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 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.
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NORTHEAST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS
Acceptable security for deposits consists of any one 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 ofthe United States or of the State ofGeorgia,
(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 of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $113,288.83. The bank balances were entirely covered by Federal depository insurance.
Note 3: RISK MANAGEMENT
The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.
The Library has obtained commercial insurance for risk of loss associated with torts, assets, job related illnesses or injuries to employees and natural disaster. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

- 10 -

NORTHEAST GEORGIA REGIONAL LIBRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 3: RISK MANAGEMENT

The Library has elected to self-insure for all losses related to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to errors or omissions 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 expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

1994 1995

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

3,708.02 $

$

0.00 $

20.00 $

Claims Paid

EndofYear Liability

3,708.02 $

0.00

20.00 $

0.00

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

Compensated Absences

Balance July 1, 1994

16,457.63

Additions Leave Earned and Utilized (Net)

1,666.04

Balance June 30, 1995

$ 18.123.67

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 the 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

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NORTHEAST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 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 of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the 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'~ 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, 1995, was $229,565.00; total payroll was $236,285.00.
TRS CONTRIBUTIONS 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, 1995, 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 1995 amounted to $40,744.86, of which $27,111.54 was made by the Library and $13,633.32 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.

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NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS

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, 1994, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058.958,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. 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, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $27,111.54 was actuarially determined and represented .0048% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 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 is paid through June 30, 1996.

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NORTHEAST GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1995

EXHIBIT"E"

ASSETS Cash and Cash Equivalents
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Project Unreserved Undesignated

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 6682-95S-SB-006

TOTALS JUNE 301 1995 JUNE 301 1994

$

17,448.96 $

42,855.95 $

60,304.91 $ _ _1_9.,3..1. 5._1..,8 1111111

$
$ _ _1_7_.._,4~4_8_._9_6__

42,855.95 $ 0.00

42,855.95 17 448.96 $ _ _ _19...,.3.;;..;1..;;.5_.1_8

Total Fund Equity

$

17,448.96 $

42,855.95 $

60,304.91 $ -=====1=9=,3=1==5.==1=8

See notes to the general purpose financial statements.

- 14 -

NORTHEAST GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 1995

EXHIBIT p

REVENUES
Local and Other Funds
EXPENDITURES
Current Program Services Professional and Technical Services Administration Supplies
Capital Outlay Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 6682-95S-SB-006

TOTALS YEAR ENDED JUNE 301 1995 JUNE 30, 1994

$

27,276.03 $

50 461.67 $

77,737.70 $

20,151.60

$

9,827.07 $

$

9,827.07 $

$

17,448.96 $

0.00

$

26,920.90 $ 26,920.90 $ 23,540.77 $ 19,315.18

36,747.97 36,747.97 $ 40,989.73 $ 19,315.18

822.49 13.93
836.42 19,315.18
0.00

FUND BALANCE JUNE 30

$

17,448.96 $

42,855.95 $

60,304.91 $ --=-=-1=9=,3=1=5.=1=8

See notes to the general purpose financial statements.

-15 -

NORTHEAST GEORGIA REGIONAL LIBRARY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE -AGENCY FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"G"

ACTIVITY FUND
ASSETS Cash and Cash Equivalents

BALANCE JULY 1, 1994

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1995

$

741.71 $

159.67 $

901.38 $ _ _ _ _o_.o_o

LIABILITIES Funds Held for Others

$

741.71 $

159.67 $

901.38 $ _ __,..............,0..0..0...

See notes to the general purpose financial statements.

- 16 -

NORTHEAST GEORGIA REGIONAL LIBRARY CASH AND CASH EQUIVALENTS JUNE 30, 1995

SCHEDULE "1"

INTEREST BEARING ACCOUNTS
Community Bank and Trust, Cornelia, Georgia
N.O.W. Account (3.04%)
First National Bank of Habersham, Cornelia, Georgia
N.O.W. Account (2.50%)
Rabun County Bank, Clayton, Georgia
Certificate of Deposit No. 014 (5.00%) N.O.W. Account (3.35%)
OTHER
Petty Cash

$ 42,855.95

35,TT3.39

10,000.00 7,448.96 $

96,078.30

100.00

$ 96,178.30

See notes to the general purpose financial statements.

- 17 -

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995
AGENCY/FUNDING GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

227,598.88

51,313.00

45,713.00

$ ===3=2=4'=62=4=.8=8

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

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 1995

SCHEDULE "3"

AGENCY/FUNDING
SUB-GRANTS Education, U. S. Department of Through Georgia Department of Education
Library Services and Construction Act Title I - Public Library Services Title Ill - Interlibrary Cooperation and
Resource Sharing

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$
$ _ _ _ _ _22_._50_

21,218.47 $

21,218.47 22.50

$

22.50 $

21,218.47 $ _ _2_1_,2_40_._97_

See notes to the general purpose financial statements.

- 19 -

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "4"

LOCAL SOURCES Boards of Education Habersham County Stephens County White County
City Government Clarkesville
County Government Board of Commissioners Habersham
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

66,951.00 $ 50,000.00

116,951.00

2,400.00

27,000.00

29,400.00

5,958.19 4,207.75 1,886.44
408.14 1,925.80

737.70

5,958.19 4,207.75 2,624.14
408.14 1,925.80

$ 102,137.32 $ 77,737.70 $ 179,875.02

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

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE 5

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 232,715.00 $ 72,542.65 4,342.14 129.79 341.87 8,188.19 3,979.11 55,714.85 19,805.12 10,120.20 944.00

3,570.00 $ 172.81
13,500.00
475.66

236,285.00 72,715.46 4,342.14 13,629.79 341.87 8,188.19 3,979.11 56,190.51 19,805.12 10,120.20 944.00

1,662.97

3,500.00

5,162.97

Total Expenditures

$ 410,485.89 $

21,218.47 $ 431,704.36

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

NORTHEAST GEORGIA REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

BOARD MEMBER
ADDRESS
Ms. Connie Worley, Chairperson(*) 132 Addington Drive Toccoa, Georgia 30577
Ms. Elena Shirley, Vice-Chairperson(*) Route 2, Box 2341 Clayton, Georgia 30525
Mr. Edward AriaH (*) P. 0. Box 154 Clarkesville, Georgia 30523
Mr. Don Bell r)
Route 1 Tiger, Georgia 30576
Ms. Sue Blalock (*) P. 0. Box597 Cleveland, Georgia 30528
Mr. Thad Bynum(*) P. 0. Box 1853 Clayton, Georgia 30525
Ms. Vanita Croom P.O. Box 1 Clayton, Georgia 30525
Ms. Mary Garrison (*) P. 0. Box229 Cornelia, Georgia 30531
Mr. Carey Highsmith(*) Route 7, Box 7013 Cleveland, Georgia 30528
Ms. Betty Lawson (*) Route 5, Box 68 Toccoa, Georgia 30577
Ms. Rowena Lovell (*) P. 0. Box805 Clarkesville, Georgia 30523
(*) Denotes Board Members Serving as of June 30, 1995
See notes to the general purpose financial statements.
- 22 -

Mr. Bill Loyd 103 Grandview Circle Cornelia, Georgia 30531
Ms. Katheryne Lunsford P. 0. Box518 Clarkesville, Georgia 30523
Ms. Loris Mam (*) P. 0. Box91 Helen, Georgia 30545
Ms. Ola Masters (*) P. 0. Box257 Helen, Georgia 30545
Ms. Martha Rumsey (*) P. 0. Box422 Clayton, Georgia 30525
Ms. Lida Sims (*) 803 East Doyle Street Toccoa, Georgia 30577
Mr. Jack Stovall Mize Road Toccoa, Georgia 30577
Mr. Lou Tatum(*) Route 5, Box 5006 Clarkesville, Georgia 30523
Ms. Sandra Wood Route 1, Box 2747 Tiger, Georgia 30576
Ms. Olivia Wright (*) 102 Oak Creek Circle Toccoa, Georgia 30577

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1995

SCHEDULE"?"

PERSONNEL

Brown,

WilliamM.

Greer,

DorothyW.

Head,

Elizabeth Ann

Kilpatrick,

Lynn

Murphy,

G. Emerson

Porterfield,

Lila

Skinkle,

John

Vickery,

Sarah

Wall,

Holly

POSITION Bookmobile Regional Bookkeeper Technical Services Clerk Circulation/Reference Librarian Director Technical Services Librarian Librarian/Extension Services Youth Services Librarian Circulation Clerk

SALARIES

TRAVEL

$

14,280.00 $

13.02

6,720.00

14,280.00

40,697.60

467.37

41,326.20

2,548.14

35,626.20

40.09

40,097.60

1,273.52

32,865.40

10,392.00

$

236,285.00 $ _ _ _4_,,,34;;,,.;;;;2_.1_4

See notes to the general purpose financial statements.

- 23-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6682-93-01
The audit report for the year ended June 30, 1994, stated that the Library had not provided for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. 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 of internal control with existing staff.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6682-93-02
The audit report for the year ended June 30, 1994, noted that management of the Northeast Georgia Regional Library chose not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance 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.

SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

NORTHEAST GEORGIA REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation 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 ofduties with the number of 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 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.