Audit report, Northeast Georgia Regional Library, Clarkesville, Georgia, year ended June 30, 1997

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AUDIT REPORT NORTHEAST GEORGIA REGIONAL LIBRARY
CLARKESVILLE, GEORGIA YEAR ENDED JUNE 30,1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

NORTHEAST GEORGIA REGIONAL LffiRARY - 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

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

15

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

16

2

FEDERAL

17

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

18

4 SCHEDULE OF SALARIES AND TRAVEL

19

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

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 10, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education
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 accompanying general-purpose financial statements of the Northeast Georgia Regional Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Northeast Georgia Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose fmancial 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 omission have not been determined, but are believed to be material.

97ARL-42

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

NORTHEAST GEORGIA REGIONAL LffiRARY

NORTHEAST GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1997

ASSETS Cash and Cash Equivalents Accounts Receivable Amount to be Provided in Future Years
For Payment of Compensated Absences
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

$ 67,347.42 $ 6,896,93 $ 453,453,32

$ 67,347.42 $ 6,896,93 $ 453,453,32

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retainages Payable Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 3,973,80 $ 1,239,14 $

95,99 61,900,79 34,714.95

$ 3,973.80 $ 1,239.14 $ 96,711.73

$
$ 63,373.62 $ 63,373.62 $

5,657.79 $
0.00
5,657.79 $

356,741.59 0.00
356,741.59

$ 67,347.42 $ 6,896.93 $ 453,453.32

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

EXHIBIT "A"

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$

527,697.67 $

527,793.03

97.02

$

21,628.18

21,628.18

19,467.34

$====21=,6=2=8=,1=8 $

549,325.85 $ =====54=7=,3=5=7=,3=9

$

5,308.93 $

1,529.27

61,900.79

87,781.96

34,714.95

41,259.07

$

21,628.18

21,628.18

19,467.34

$

21,628.18 $

123,552.85 $

150,037.64

$

5,657.79 $

356,741.59

63,373.62

$

425,773.00 $

1,558.64 345,872.18
49,888.93
397,319.75

$====21=,6=2=8=,1=8 $

549,325.85 $ =====54=7=,3=5=7=,3=9

-3-

NORTHEAST GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1997

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

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

REVENUES

State Funds Federal Funds Other Funds

$ 360,680.04 $ 123,004.33

7,400.00 $ 17,000.00

1,366,317.00 $ 70,212.68

1,734,397.04 $ 17,000.00
193,217.01

704,197.90 17,124.02
520,285.92

Total Revenues

$ 483,684.37 $ 24,400.00 $ 1,436,529.68 $ 1,944,614.05 $ 1,241,607.84

EXPENDITURES

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

$ 223,828.83 $ 52,740.44 26,692.51 157,519.90 9,418.00

20,300.85

$

$ 1,425,660.27

244,129.68 $ 52,740.44 26,692.51
157,519.90 9,418.00
1,425,660.27

208,745.03 54,129.24 18,783.25
162,014.06 20,750.48
472,821.67

Total Expenditures

$ 470,199.68 $ 20,300.85 $ 1,425,660.27 $ 1,916,160.80 $ 937,243.73

Excess of Revenues over (under) Expenditures $ 13,484.69 $ 4,099.15 $

10,869.41 $

28,453.25 $ 304,364.11

FUND BALANCE JULY 1

49,888.93

1,558.64

345,872.18

397,319.75

92,955.64

FUND BALANCE JUNE 30

$ 63,373.62 $ 5,657.79 $ 356,741.59 $ 425,773.00 $ 397,319.75

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

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "C"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE 30,1997

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
OTHER FINANCING SOURCES
Other Sources
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1, 1996

GENERAL FUND

BUDGET

ACTUAL

$ 360,679.92 $ 360,680.04

14,725,00

123,004.33

$ 375,404.92 $ 483,684,37

$ 214,315.41 $ 52,740.44 17,465.28 155,135.14 9,400.00

223,828.83 52,740.44 26,692.51 157,519.90 9,418.00

$ 449,056.27 $ 470,199.68

$ -73,651.35 $ 13,484.69

90,000.00

$ 16,348.65 $ 49,791.91

13,484.69 49,888.93

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 7,400,00 $ 17,000,00

7,400,00 17,000.00

$ 24,400.00 $ 24,400.00

$ 18,558.64 $ 7,400.00

20,300.85

$ 25,958.64 $ 20,300,85

$ -1,558.64 $

4,099.15

$ -1,558,64 $ 1,558,64

4,099.15 1,558.64

FUND BALANCE JUNE 30,1997

$ 66,140.56 $ 63,373.62

$ ====0=,0==0$

5,657.79

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

THIS PAGE LEFT BLANK

NORTHEAST GEORGIA REGIONAL LIDRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Northeast Georgia Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in 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 an account group of the Library.
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 Library 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 Library Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Northeast Georgia Regional Library is therefore determined to be ajoint venture.
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.
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 fmancial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:

-7-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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. Operating statements of these funds present increases (Le., revenues and other financing sources) and decreases (Le., 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.
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.
-8-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part 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 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 fmancial 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.

- 9-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present fmancial 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 of insurance, 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 ofthe public funds being
secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws 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

- 10-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 2: DEPOSITS

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 AtJune 30, 1997, the bank balances were $538,095.01. The amounts ofthe total bank balances are classified into three categories of credit risk:

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

The Library's deposits are classified by risk category at June 30, 1997, as follows:

Risk Category

Bank Balance

1

$ 261,824.45

2

276,270.56

3

0.00

Total

$ 538.095.01

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 illness or injuries to employees; natural disaster; and unemployment compensation.

The Library has obtained commercial insurance for risk ofloss associated with torts, assets, job related illness 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.

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

- 11 -

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 3: RISK MANAGEMENT

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.

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

Position Covered

Amount

All Employees

$ 10,000.00

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1997, were as follows:

Compensated Absences

Balance July 1, 1996

$ 19,467.34

Additions Leave Earned and Utilized (Net)

2,160.84

Balance June 30, 1997

$ 21.628.18

Note 5: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as of June 30, 1997, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

GSFIC 6682-95S-SB006 GSFIC 6682-96S-SB003

$ 2,634.08 272,507.05 $ 60,035.00

$ 275,141.13 $ 60.035.00

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

- 12-

NORTHEAST GEORGIA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 6: CONTINGENT LIABILITIES

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

Note 7: ACCUMULATED EMPLOYEES' LEAVE

The Library's 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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defmed benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

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

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 32,065.94 $ 29,512.74 $ 27,111.54

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NORTHEAST GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1997

EXHIBIT"E"

ASSETS Cash and Cash Equivalents

LOTTERY PROGRAM

FEDERAL PROGRAM

TOTALS JUNE 30,1997 JUNE 30,1996

$ _ _....;0;,;,;.0;.;;.,0 $

6.896.93 $ ~===....;6;;,:,;.8;;;;9;,;;;,6';.;,9;;;.3 $ ~=-=1_.5==58_.64===

LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated Total Fund Equity
Total liabilities and Fund Equity

$ 1.239.14 $

1.239.14

$ 5.657.79 $

5.657.79 $

1,558.64

$

0.00

0.00

0.00

0,00

$

0.00 $ 5.657.79 $

5,657.79 $

1.558.64

$ _ _...,;,0.;,;,00,;.$ 6.896.93 $ _ _...6. .,8.9..6.';,;,93;,.$

1...5_5_8_.64..,

See notes to the general purpose financial statements.

- 14-

NORTHEAST GEORGIA REGIONAL LIBRARY

EXHIBIT "F"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30.1997

REVENUES State Funds Federal Funds Total Revenues
EXPENDITURES Current Program Services
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
FUND BALANCE JUNE 30

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30,1996

$

7,400,00

$

7,400,00 $

10,000,00

$ 17,000,00

17,000,00

17,000,00

$

7,400,00 $ 17,000,00 $

24,400.00 $

27,000,00

$

7,400,00 $ 12,900,85 $

20,300.85 $

25,441.36

$

0.00 $ 4,099,15 $

4,099,15 $

1,558,64

0,00

1,558.64

1,558,64

0,00

$==~O=.o==o $

5,657.79 $

5,657.79 $====1,=55=8=.64=

See notes to the general purpose financial statements.

-15-

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Assistive Technology
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 260,182.04
53,049,00 47,449.00
$

7,400.00

$ 260,182,04
53,049,00 47,449.00
7,400,00

_ _ _ _ $ 1,366,317,00 1,366,317,00

$ 360,680.04 $ 7,400,00 $ 1,366,317.00 $ 1,734,397,04

See notes to the general purpose financial statements.

-16 -

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

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ===...;,17d'=00~0=.0==0

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

EXPENDITURES
Technical Services Equipment

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES LOTIERY PROGRAM YEAR ENDED JUNE 30. 1997

SCHEDULE "3"
ASSISTIVE TECHNOLOGY

$ ====7;..;..4.;,,;0;,,;0,;,;.0.;;,.0

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

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Black,

Frances

Brown,

WilliamM.

Greer,

Dorothy

Head,

Elizabeth Ann

Kilpatrick,

Lynn

Murphy,

G. Emerson

Patton,

SybilG.

Porterfield,

Lila

Richmond,

Danielle

Shinkle,

John L.

Vickery,

Sarah E.

Wall,

HollyN.

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

SALARIES

TRAVEL

$

4,346.50

16,032.00

672.00

19,536.00

45,582.00 $

90.35

48,065.00

3,549.49

4,544.00

41,165.00

23.48

309.00

44,982.00

1,399.00

37,977.40

13,632.00

Total Cash Basis

$ 276,842.90 $ 5,062.32

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

SECTIOND FINDINGS AND QUESTIONED COSTS

NORTHEAST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Separation of Duties Finding Resolved Finding Control Number 6682-93-01
The audit report for the year ended June 30, 1996, stated that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. During the year under review, the Library implemented changes in the separation of employee duties such that improved internal controls were in effect.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6682-93-02
The management of the Northeast Georgia 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. As a result, the general purpose fmancial statements ofthe Library are incomplete and are 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 of land, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Management's Response:
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.