Audit report, Oconee Regional Library, Dublin, Georgia, year ended June 30, 1996

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AUDIT REPORT OCONEE REGIONAL LIBRARY
DUBLIN, GEORGIA YEAR ENDED JUNE 30, 1996

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

OCONEE 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

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

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

6

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

18

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

19

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

20

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

21

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

22

L

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

24

OCONEE REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 CASH AND CASH EQUIVALENTS

25

2 ACCOUNTS RECEIVABLE

26

SCHEDULE OF REVENUE

3

STATE

27

4

FEDERAL

28

5

OTHER

29

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

30

7

LOTTERY PROGRAM

31

8 MEMBERSHIP OF LffiRARY BOARD

32

9 SCHEDULE OF SALARIES AND TRAVEL

33

SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 15, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the Oconee 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 F) of the Oconee Regional Library, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respect 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.
96ARL-42

In our opinion, except for the effects on the general purpose financial statements ofthe matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Oconee Regional Library as of June 30, 1996, and the results of its operations and the cash flows ofits nonexpendable trust funds 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 Oconee Regional Library taken as a whole. The combining and individual fund statements (Exhibits G through L) and the financial schedules (Schedules 1 through 9), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Oconee 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 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,
L~
Claude L. Vickers State Auditor
CLV:dt 96ARL-42

OCONEE REGIONAL LffiRARY - 1-

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

OCONEE REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES JUNE 30, 1996

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

79,753.80 $

399.90 $ 1,252,899.78

287.55

$

80,041.35 $

399.90 $ 1,252,899.78

Total Liabilities and Fund Equity

$

80,041.35 $

399.90 $ 1,252,899.78

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

EXHIBIT"A"

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

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

$

14,509.12 $ 1,347,562.60 $

104,101.43

287.55

10,885.70

$

14,509.12 $ 1,347,850.15 $

114,987.13

$

$

5,695.36

91,807.34

33,459.30

$

130,962.00 $

5,554.68 8,280.05
1,308.04 1,302.53 16,445.30

$

396.74

$

12,228.24

12,228.24 $

17,789.81

1,127,633.14

4,945.32

$

12,228.24 $ 1,140,258.12 $

22,735.13

2,280.88

13,494.18 63,135.85

12,669.04 63,137.66

$

14,509.12 $ 1,216,888.15 $

98,541.83

$

14,509.12 $ 1,347,850.15 $

114,987.13

-3-

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

OCONEE REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

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 (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, 1995
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 478,904.44 $ 468,654,69
$ 947,559,13 $

468,904,44 316.93
495,589,59
964,810,96

$ 397,889,81 $ 106,857.83 103,346,14 271,650,38 85,932,58
$ 965,676,74 $
$ -18,117,61 $

377,676,34 106,422.74
97,615,73 259,652,89
72,167.63
913,535,33
51,275.63

$ 24,703.61 -6,586,00 $ -50,000,00
$ 18,117,61 $ -50,000.00

$

0,00 $

94,899.04

-50,000,00

1,275,63 73,073,52

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 10,000.00

$ 19,000,00

17,500.00

$ 19,000,00 $ 27,500,00

$ 19,000,00 $ 27,103.26

$ 19,000,00 $ 27,103.26

$

0,00 $

396.74

$

0,00 $

396,74

0.00

0.00

FUND BALANCE JUNE 30, 1996

$

44,899,04 $ =~7.;,:4',;,34;;;9,;,,;1',;;,5

$

0,00 $ =====39=6=,7,.;,,4

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

OCONEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1996

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded Operating Income
NONOPERATING REVENUES Interest Earned Total Income
OTHER FINANCING (USES) Operating Transfers Out
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1 Residual Equity Transfer

ENDOWMENT FUNDS

MAROYC,

SAM

JONES

WILSON

CONYERS

MEMORIAL MEMORIAL

FUND

FUND

FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1996 JUNE 3D, 1995

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0,00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

88.09

74.27

913.74

1,076.10

2,096,74

$

88.09 $

74.27 $

913.74 $

1,076.10 $

2,096.74

-648,67

-385.72

-1,034.39

$

-560.58 $

-311.45 $

913.74 $

3,758.67

3,168.94

13,595.38

-3,198.09

-2,857.49

41.71 $ 20,522.99 -6,055.58

2,096.74 18,426.25

FUND BALANCE JUNE 30

$

0.00 $

0.00 $ 14,509.12 $

14,509.12 $ =~2=O:o;,5~2=2=.9=9

The notes to the general purpose financial statements are an integral part of this statement. -6-

OCONEE REGIONAL LIBRARY COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30,1996

EXHIBIT"E"

ENDOWMENT FUNDS

MAROYC,

SAM

JONES

WILSON

CONYERS MEMORIAL MEMORIAL

FUND

FUND

FUND

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

Cash Flows from Operating Activities: No Operating Activities Recorded

$

0,00 $

0.00 $

0.00 $

0.00 $

0,00

Cash Flows from Investing Activities: Interest Received on Investments

$

88.09 $

74,27 $

913.74 $

1,076.10 $

2,096.74

Cash Flows from Noncapital Financing Activities

, Operating Transfers Out

$ -648.67 $

-385.72 $

0.00 $

-1,034.39 $

0.00

Residual Equity Transfer

-3,198.09

-2,857.49

-6,055.58

Total Cash Flows from Noncapital Financing $ -3,846.76 $ -3,243.21 $

0.00 $

-7,089.97 $

0.00

Activities

Net Increase (Decrease) in Cash

$ -3,758.67 $ -3,168.94 $

913.74 $

-6,013.87 $

2,096.74

Cash and Cash Equivalents - July 1

3,758.67

3,168.94

13,595.38

20,522.99

18,426.25

Cash and Cash Equivalents - June 30

$

0.00 $

0.00 $ 14,509.12 $

14,509.12 $===20...,.5=2;;;2=.9=9

The notes to the general purpose financial statements are an integral part of this statement. -7-

THJS PAGE LEFT BLANK

OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Oconee Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Oconee Regional Library is determined to be a joint venture.
The Library Board consists of 16 members; 4 members appointed by Laurens County Library Board, 3 members appointed by Johnson County Library Board, 3 members appointed by Treutlen County Library Board, 3 members appointed by Washington County Library Board and, 3 members appointed by Wheeler County Library Board. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Oconee Regional Library is located in Dublin, Georgia, and serves Johnson, Laurens, Treutlen, Washington and Wheeler Counties.
FUND ACCOUNTING
The Library uses funds 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.
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
-9-

OCONEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 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 TYPES - the trust and agency funds 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. These funds include:
NONEXPENDABLETRUSTFUNDS Wilson Memorial Fund - the fund used to account for the principal of an endowment to be invested and preserved intact with the resultant income to be evenly split between an addition to principal and a transfer to the General Fund.
AGENCY FUND - the funds used to account for assets held for other funds, governments, or individuals.
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 (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.
- 10-

OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
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 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.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the risk financing activities for the Board's unemployment compensation liabilities were reported as an Expendable Trust fund. This fund had a balance of$12,669.04 at June 30, 1995. For fiscal year 1996, this fund has been reported as a part of the General Fund. The fund balance at July 1, 1995 has been restated as appropriate.
BUDGET
The Oconee 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.
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OCONEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of Public Library Services as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and 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.
RECEIVABLES
Receivables consist of grant reimbursements due from State grantors for expenditures made but not reimbursed. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
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, results of operations or cash flows in conformity with generally accepted accounting principles, nor is such
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OCONEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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 of securities pledged shall be equal to not less than 110 percent ofthe 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.
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 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.

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OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS

CATEGORIZAnON OF DEPOSITS At June 30, 1996, the bank balances were $1,413,941.23. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Library's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category

Bank Balance

1

$ 133,624.82

2

0.00

3

1,280,316.41

Total

$ 1.413,941.23

Note 3: RISK MANAGEMENT

The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The Library has obtained commercial insurance for risk of loss associated with torts and assets. 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 all losses related to natural disaster. In addition, 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.

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 of that loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.

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OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 3: RISKMANAGEMENT

The Library participates in the Association County Commissioners of Georgia-Self Insured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with Safety National Casualty Corporation to provide coverage for potential losses by the Fund in excess of $450,000.00 loss per occurrence, up to $2,000,000.00.

Note 4: OPERATING LEASES

The Library has committed under various leases for copiers and a postage meter. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1996, amounted to $5,598.10. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

1997 1998

$ 4,916.42 213.00

Total

$ 5,129.42

Note 5: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as of June 30, 1996, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

95S-SB-007

$ 1,687,879.91 $ 1.357,113.00

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

Note 6: CONTINGENT LIABILITIES

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

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OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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 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 ofyears 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's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1996, was $476,762.97; total payroll was $495,077.21.
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 of Trustees in accordance with State statute and as advised by their independent actuary. At June 30, 1996, the TRS Library employer contribution rate was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $80,144.57, of which $56,305.99 was made by the Library and $23,838.58 was made by employees. These contributions represented 11.81 % (LibraI)') and 5% (employees) of covered payroll.

- 16 -

OCONEE REGIONAL LIBRARY

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of$56,305.99 was actuarially determined and represented .0093% of total contributions made by all participating employers.

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

Note 8: SURETY BONDS

The Library Director, Ms. Susan S. Williams, is bonded in the amount of $100,000.00 with the Old Republic Surety Company, Atlanta, Georgia, their Bond No. XBSI133607, on which premium was paid through November 7, 1996.

- 17 -

OCONEE REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30. 1996

EXHIBfT"G"

ASSETS Cash and Cash Equivalents

LOTIERY PROGRAMS

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

TOTALS JUNE 30,1996 JUNE 30,1995

$

0.00 $

399.90 $

399.90 $====0=.0=,=0

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Program

$

$ 0.00 $

3.16 $

3.16 $

0.00

396.74 $

396.74 $

0.00

Total Liabilities and Fund Equity

$

0.00 $

399.90 $

399.90 $====0=.0=,=0

See notes to the general purpose financial statements.

-18-

OCONEE REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1996

EXHIBIT "H"

LOTTERY PROGRAMS

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30, 1995

REVENUES

State Funds Federal Funds

$ 10,000,00 $

$ 17,500,00

10,000,00 $ 17,500,00

18,917,87 19,000,00

Total Revenues

$ 10,000,00 $

17,500,00 $

27,500,00 $

37,917.87

EXPENDITURES

Current Program Services Administration

$ 10,000.00 $

17,103.26 $

$ 27,103.26

18,921.48 18,996.39

Total Expenditures

$ 10,000.00 $

17,103,26 $

27,103,26 $

37,917.87

Excess of Revenues over (under) Expenditures $

0,00 $

396.74 $

396.74 $

0.00

FUND BALANCE JULY 1

0,00

0.00

0.00

0.00

FUND BALANCE JUNE 30

$

0.00 $

396.74 $

396.74 $===~O,;,,;;'O~O

See notes to the general purpose financial statements.

- 19-

OCONEE REGIONAL LIBRARY COMBINING BALANCE SHEET
CAPITAL PROJECTS FUND JUNE 30,1996

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

95S-SB-007

95S-SB-008

TOTALS JUNE 30, 1996 JUNE 30, 1995

$ 1,248,501.24 $

4,398.54 $ 1,252,899.78 $

1,741.35

0.00

10,500.00

$ 1,248,501.24 $

4,398.54 $ 1,252,899.78 $===12=,2=4..1....3.=5

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects

$

91,807.34

33,459.30

$

125,266.64

$

$

91,807.34

33A59.30

$ 125,266.64 $

7,296.03 7,296.03

$ 1,123,234.60 $

4,398.54 $ 1,127,633.14 $

4,945.32

Total Liabilities and Fund Equity

$ 1,248,501.24 $

4,398.54 $ 1,252,899.78 $===12=,2=4==1==.3=5

See notes to the general purpose financial statements.

-20 -

OCONEE REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30,1996

EXHIBIT "J"

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

95S-SB-007

95S-SB-008

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30, 1995

FUND BALANCE JUNE 30

$ 1,123,234.60 $

4,398.54 $ 1,127,633.14 $===4,;0;,9=4=5;,;.3=2

See notes to the general purpose financial statements.

- 21 -

OCONEE REGIONAL LIBRARY COMBINING BALANCE SHEET
FIDUCIARY FUND TYPES JUNE 30. 1996

ASSETS Cash and Cash Equivalents

NONEXPENDABLE TRUST FUNDS

MAROYC.

SAM

JONES

WILSON

CONYERS

MEMORIAL

MEMORIAL

FUND

FUND

FUND

$

0.00 $

0.00 $ ===14=,5=0=9':.;,12=

LIABILITIES AND FUND EQUITY
LIABILITIES
Funds Held for Others
FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated
Total Fund Equity

$

12,228.24

$

0.00 $

--=.0:..:::.0.:..0

2,280.88

$

0.00 $

0.00 $. _ _.:..14.:.:.;,5=.;:0:..:::9.:..:.1=2

Total Liabilities and Fund Equity

$

0.00 $

0.00 $ ==1=4=,5=0.9...=12=

See notes to the general purpose financial statements.

- 22-

EXHIBIT"K"

AGENCY FUND

TOTALS

JUNE 30, 1996

JUNE 30, 1995

$

0.00 $

14,509.12 $====21=,8=2..5..=:.5:=:2

$

1,302.53

$

12,228.24 $

17,789.81

$

--=.0.:..::.0.=...0

2,280.88

2,733.18

$

0.00 $

14,509.12 $ _ _---=-20::.l.,5=.::2==2~.9.::..9

$

0.00 $

14,509.12 $ ====21=,8=2..5.=.:.5:=:2

- 23-

OCONEE REGIONAL LIBRARY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30,1996

EXHIBIT"L"

FRIENDS OF LIBRARY ACCOUNT
ASSETS Cash and Cash Equivalents

BALANCE JULY 1,1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1996

$

1,302.53 $

30.52 $

1,333.05 $

0.00

LIABILITIES Funds Held for Others

$

1,302.53 $

30.52 $

1,333.05 $====0;;,;.00.=0

See notes to the general purpose financial statements.

- 24-

OCONEE REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30.1996
INTEREST BEARING ACCOUNTS
Bank of Dudley, Dudley, Georgia
N.O.w. Accounts (Variable)
Farmers and Merchants Bank, Dublin, Georgia
Certificate of Deposit No. 21871 (5.45%)
First National Bank and Trust, Louisville, Georgia
N.O.w. Account (2.00%)
South Trust Bank of Georgia, DUblin, Georgia
Certificate of Deposit No. 4106025 (6.54%)
OTHER
Petty Cash

SCHEDULE "1"
$ 1,315,060.76 13,494.18 4,398.54 14,509.12 100.00
$ 1,347.562.60

See notes to the general purpose financial statements.

- 25 -

OCONEE REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1996
Technical and Adult Education, Georgia Department of Public Libraries Maintenance and Operations

SCHEDULE "2"
GOVERNMENTAL FUND TYPE GENERAL FUND
$=======2=8=7:=,5=5

See notes to the general purpose financial statements.

- 26 -

OCONEE REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30,1996

SCHEDULE "3"

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 314,646,44 52,743,00 55,372,00 45,855.45
$

10,000,00

$ 314,646.44 52,743,00 55,372,00 45,855.45
10,000,00

$ 581,620,00

581,620,00

287,55

287,55

$ 468,904.44 $

10,000,00 $ 581,620,00 $ 1,060,524,44

See notes to the general purpose financial statements.

- 27 -

OCONEE REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30. 1996

SCHEDULE "4"

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 III - Interlibrary Cooperative and Resource Sharing

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ $ _ _--.::...31:.::6~.9:.::..3

17,500.00 $

17,500.00 316.93

$

316.93 $

17,500.00 $ 17,816.93

See notes to the general purpose financial statements. - 28 -

OCONEE REGIONAL LIBRARY SCHEDULE OF OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

LOCAL SOURCES Boards of Education City of Dublin Johnson County Treutlen County City Government Dublin County Government Boards of Commissioners Laurens County Wheeler County Washington County Public Libraries Laurens County Washington County
OTHER SOURCES Donations Friends of the Library Other Fines and Fees Interest Earned Photocopy Sales Sale of Surplus Materials Other

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

2,000.00

1,266.48

1,013.23

$

2,000.00

1,266.48

1,013.23

165,951.00 $ 397,183.50

563,134.50

289,078.08 759.96
6,585.96 3,039.68

397,183.50 42,000.00

686,261.58 759.96
42,000.00
6,585.96 3,039.68

2,040.70 12,558.43
3,957.79 4,532.04 2,290.98
515.26

1,333.05 61,096.80
18,507.27
9,967.00

1,333.05 63,137.50 12,558.43 22,465.06
4,532.04 12,257.98
515.26

$

495,589.59 $ 927,271.12 $ 1,422,860.71

See notes to the general purpose financial statements. - 29 -

OCONEE REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1996

SCHEDULE "6"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 495,077.21
137,945.39 3,924.75
2,033.56 $
54,147.91 29,953.64 122,744.59 18,833.31 21,804.57
5,234.37 770.77

$
5,423.31 761.18
12,623.12
4,437.65

495,077.21 137,945.39
3,924.75 7,456.87 54,909.09 42,576.76 122,744.59 18,833.31 26,242.22 5,234.37
770.77

21,065.26

3,858.00

24,923.26

$ 913,535.33 $

27,103.26 $ 940,638.59

See notes to the general purpose financial statements. - 30 -

OCONEE REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAM YEAR ENDED JUNE 30. 1996
EXPENDITURES Operating Costs Professional and Technical Services Property Services Nonoperating Costs Equipment
Total Expenditures

SCHEDULE '7"

TECHNOLOGY INSTALLATION

$

5,380.82

761.18

3,858.00

$==~10;;;;,1,',;;;00;;,;;0=.0==0

See notes to the general purpose financial statements. - 31 -

OCONEE REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30.1996

SCHEDULE "8"

BOARD MEMBER ADDRESS
Mr. Duggan Weaver, Chairman (*) P.O. Box 5 Dudley, Georgia 31022
Mr. E. Tarver Averett, Jr. (*)
P.O. Box 716 Sandersville, Georgia 31082
Ms. Elaine Burleson (*) P.O. Box 446 Alamo, Georgia 30411
Mrs. Gina Dixon (*) Route 2, Box 16 Alamo, Georgia 30411
Mr. Jack Ellington (*) Route 3 Soperton, Georgia 30457
Mrs. Rebecca Hodges (*) P.O. Box 56 Oconee, Georgia 31067
Mr. Nick Holton (*) Route 1 Wrightsville, Georgia 31096
Ms. Martha Hooks (*) P.O. Box 4366 Dublin, Georgia 31040
Mrs. Louise Jackson (*) Lakeview Drive Wrightsville, Georgia 31096
Mrs. Jean Joiner (*) 287 West Adam Street Tennille, Georgia 31089
Mrs. Virginia Jones (*) 219 North Elm Street DUblin, Georgia 31021
(*) Denotes Board Members Serving as of June 30, 1996

Mr. Thomas Kellam (*) P.O. Box 477 Dublin, Georgia 31040
Mrs. Hayes Lawton (*) 601 Main Street Soperton, Georgia 30457
Mr. Sandy Morrison (*) P.O. Box 278 Glenwood, Georgia 30428
Mrs. Mary Ann Norris (*) 340 West Elm Street Wrightsville, Georgia 31096
Mr. Will Peterson (*) 506 La Avenue Soperton, Georgia 30457

See notes to the general purpose financial statements.

- 32 -

OCONEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30.1996

SCHEDULE "9"

PERSONNEL

Bracewell, Coleman, Dillard, Hall, Hall, Hilliard, Hogan, Jessup, Josey, Mack, Northrop, O'Neal, Putkowski, Schrader, Snellgrove, Thomas, Walker, Warren, White, Wiggins, Williams, Williams, Woodburn,

Elizabeth Donna Abbie Lugine Shirley Patricia Virginia C. Marjorie B. Virginia Beverly A. Julia S. Lenton F. Susan P. Luticia L.
Blondell R. Gail R.
Linda C. JoyS. GladineW.
Mattie K. Linda R.
Susan S. Chris C.

POSITION

SALARIES

TRAVEL

Reference Librarian

$

Technical Services Librarian

Head of Reference

Custodian/Security

Business Manager

LBPH Librarian

Branch Services Librarian

Circulation Assistant

Circulation Assistant

Circulation Desk Manager

Reference Assistant

Circulation Clerk

Night Circulation Desk Manager

Children's Librarian

Circulation Clerk

Reference Librarian

Library Assistant

Assistant Bookkeeper

Circulation Clerk

Circulation Clerk

Clerk

Director

Automation Specialist

31,424.00 $ 35,385.40 34,336.40 24,012.11 21,423.96 39,434.80 43,036.40
3,063.72 448.00
17,327.40 16,603.56
4,357.97 80.54
26,515.68 4,870.94
29,305.00 14,186.79 18,424.68 11,293.34 15,862.80 15,553.80 51,991.32 36,138.60

331.96 324.57 110.25
34.90 632.01 573.77
11.31 6.50
149.00
555.30
112.00
39.50 10.95 304.23 728.50

$

495,077.21 $ ===3=,=92=4=.7==5

See notes to the general purpose financial statements. - 33-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

OCONEE REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FQLLOW-UP/RESOLUTION Inadequate Inventory Records Finding Resolved Audit Control Number 6872-94-03
The audit report for the year ended June 30, 1995, noted that the Library did not have a policy of taking a periodic physical inventory count of equipment and reconciling the count to the property records for the Library Services and Construction Act - Title I (CFDA 84.034) Program. For the year under review, a physical inventory county was performed for all equipment items and the count was reconciled to the property records.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties Audit Control Number 6872-93-01
The audit report for the year ended June 30, 1995, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Library made some improvements regarding separation of duties, but still did not achieve an adequate degree of internal control. This condition 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 6872-93-02
The audit report for the year ended June 30, 1995, noted that the management of the 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 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.
Note: The Oconee Regional Library was provided an opportunity to include pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusions in this report.