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

(J
u,

OCONEE REGIONAL LffiRARY

- TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIDBITS

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

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

18

2

FEDERAL

19

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

OCONEE REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 19, 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 Oconee 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 fmancial statements of the Oconee 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 Oconee 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 fmancial 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 present fairly, in all material respects, the financial position of the Oconee Regional Library as of June 30, 1997, and the results of its operations and the cash flows of its nonexpendable trust fund 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 Oconee Regional Library taken as a whole. The accompanying combining statements (Exhibits G and H) 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 ofthe general-purpose fmancial 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.
CLV:jb 97ARL-42

OCONEE REGIONAL LmRARY

OCONEE REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES . JUNE 30, 1997

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 131,647,09

$

988,826.84

_____ $

1:. .:. 7. !. :,6;. : .5.;:,:0...:;,,00::-

$ 131,647,09 $

17,650.00 $ ===98=8=,8=2=6.=84=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For Endowment Corpus For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

$

34,984,08

$

34,984.08 $

17,650.00 $
17,650,00 $

119,918.70 315,905,58
435,824.28

$

14,244.70

82,418,31 $

$

96,663.01 $

$

553,002.56

0.00 0.00 $

0,00 553,002.56

$ 131,647,09 $

17,650,00 $===98=8=,8:=2=6.=84==

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

EXHIBIT "A"

FIDUCIARY FUND TYPE
TRUST FUND

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

$

15,689.77 $ 1,136,163.70 $ 1,347,562.60

17,650.00

287.55

$

15,689.77 $ 1,153,813.70 $ 1,347,850.15

$

17,650.00

34,984.08 $

119,918.70

315,905.58

5,695.36 91,807.34 33,459.30

$

488,458.36 $

130,962.00

$

396.74

$

12,818.24 $

12,818.24

12,228.24

553,002.56

1,127,633.14

2,871.53

14,244.70 85,289.84

13,494.18 63,135.85

$

15,689.77 $

665,355.34 $ 1,216,888.15

$

15,689.77 $ 1,153,813.70 $ 1,347,850.15

-3-

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

OCONEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1997

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 510,571.65 $ 500,933.57

500,773,00

517,611.26

Total Revenues

$ 1,011,344.65 $ 1,018,544.83

EXPENDITURES

Current Program Services Technical Services Circulation Administration Maintenance and Operations

$ 462,563.80 $ 452,706.06

112,607,25

112,410.83

71,204.00

97,692,26

268,435,25

274,628.06

89,948,35

58,793.76

Total Expenditures

$ 1,004,758.65 $ 996,230.97

Excess of Revenues over (under) Expenditures $

6,586.00 $

22,313.86

OTHER FINANCING USES

Other Uses

$

-6,586,00

Excess of Revenues over (under) Expenditures

and Other Financing Uses

$

0.00 $

22,313,86

FUND BALANCE JULY 1, 1996

88,858.27

74,349.15

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

9,250,00

$ 20,500.00

20,386,85

$ 20,500.00 $ 29,636.85

$ 20,896.74 $ 30,033.59

$ 20,896.74 $ 30,033.59

$

-396.74 $

-396.74

$

-396.74 $

-396.74

396.74

396,74

FUND BALANCE JUNE 30,1997

$

88,858.27 $==9=6~,6~6;:;;3',;;,01"=

$

0.00 $===0='0=0=

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

OCONEE REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30,1997

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
FUND BALANCE JUNE 30

WILSON MEMORIAL
FUND

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

$

0.00 $

0.00 $

0.00

$

0,00 $

0.00 $

0,00

$

0,00 $

0,00 $

0,00

1,180,65

1,180.65

1,076,10

$

1,180,65 $

1,180,65 $

1,076,10

-1,034.39

$

1,180,65 $

1,180,65 $

41.71

14,509.12

14,509.12

20,522.99

-6,055.58

$

15,689,77 $

15,689,77 $ _ _.._14_.,.5.0..9..'''.1._2

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

OCONEE REGIONAL LIBRARY STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 3D. 1997

EXHIBIT"E"

Cash Flows from Operating Activities:

No Operating Activities Recorded

$

Cash Flows from Investing Activities:

Interest Received on Investments

$

Cash Flows from Noncapital Financing Activities

Operating Transfers Out

$

Residual Equity Transfer

Total Cash Flows from Noncapital Financing Activities $

Net Increase (Decrease) in Cash

$

Cash and Cash Equivalents - July 1

Cash and Cash Equivalents - June 30

$

WILSON MEMORIAL
FUND

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

0.00 $

0.-0'-0'- $

0.00

1,180.65 $ _ _~1:;,.1.;8.;0.;;..6.:5;.. $

1,076.10

0.00 $ 0.00 $ 1,180.65 $ 14,509.12
15,689.77 $

0.00 $

-1,034.39 -6,055.58

~.0..:0;0.. $

-7,089.97

1,180.65 $

-6,013.87

14,509.12

20,522.99

---_ 15,689.77 $....... 14,509.1.2...

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

THIS PAGE LEn BLAHK

OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Oconee Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departures from generally accepted accounting principles disclosed in 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 account groups of the Library.
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 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 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 Oconee Regional Library is therefore determined to be a joint venture.
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 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:
- 9-

OCONEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 TYPE - the trust 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:
NONEXPENDABLE TRUST FUND Wilson Memorial Fund - the fund used to account for an endowment of which the corpus is 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.
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.
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.
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 of the transaction can be determined and "available" means
- 10-

OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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.
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.
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 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.
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.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. 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.

- 11 -

OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS
COLLATERALIZAnON 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 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,
- 12-

OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS

(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 ofa 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, 1997, the bank balances were $1,195,482.91. 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, 1997, as follows:

Risk Category

Bank Balance

1

$ 229,934.47

2

0.00

3

965,548.44

Total

$ 1.195.482.91

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 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.

- 13 -

OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 3: RISK MANAGEMENT

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 expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.

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.

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

Position Covered

Amount

Employee Blanket Bond

$ 100,000.00

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, 1997, amounted to $5,272.42. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

1998 1999

$ 2,349.00 1,780.00

Total

$ 4,129.00

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:

- 14-

OCONEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 5: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

Funding Available From State

95S-SB-007 95S-SB-008

$ 6,308.06 $ 193,873.00

123,573.44

121,236.20

$ 129,881.50 $ 315,109.20

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.

Note 7: 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% 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. 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%

$ 62,513.40 $ 56,305.99 $ 52,441.72

- 15 -

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

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

EXHIBIT"G"

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS JUNE 30, 1997 JUNE 30,1996

$

399.90

$

9,250.00 $

8,400.00 $

17...,.6_5....;;.0.;....0_0

$

9,250.00 $

8,400.00 $

17,650.00 $===3=9=9;;:.9.=0

Total Liabilities and Fund Equity

$

9,250.00 $

8,400.00 $

17,650.00 $ ======3=9=9.==90,=

See notes to the general purpose financial statements.

- 16-

OCONEE REGIONAL LIBRARY

EXHIBIT "H"

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 Administration
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30, 1996

$

9,250.00

$

$

9,250.00 $

$ 20,386.85
20,386.85 $

9,250.00 $ 20,386.85
29,636.85 $

10,000.00 17,500.00
27,500.00

$

9,250.00 $

$

0.00 $

0.00

20,783.59 $ -396.74 $ 396.74

30,033.59 $ -396.74 $ 396.74

27,103.26 396.74 0.00

FUND BALANCE JUNE 30

$ ====O.=OO~$ ======O.=OO~$ ===O=.=OO~$ ===3~9==6.==74==

See notes to the general purpose financial statements.

- 17-

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

SCHEDULE "1"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

GRANTS Community Affairs, Department of Local Assistance Grant

$

45,000.00 $

Technical and Adult Education, Georgia Department of

Public Libraries

Salaries and Travel

$

Library Materials

Maintenance and Operation

Lottery Program

Assistive Technology

341,499.57 113,246.00
46,188.00
$

9,250.00

Georgia State Financing and Investment Commission Reimbursement for Construction Projects

2,254.360.80

TOTAL
45,000.00
341,499.57 113,246.00 46,188.00
9,250.00
2,254,360.80

$ 500,933.57 $

9,250.00 $ 2,299,360.80 $===:!2,=80=9,.,;,5;.;4=4.=37=

See notes to the general purpose financial statements.

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OCONEE 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
$===;;;;20;:;,;;,3;;,;;8;,;;6.;,;;85=

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

EXPENDITURES
Administration Equipment

OCONEE REGIONAL LIBRARY SCHEDULE OF EXPENDITURES
LOTTERY PROGRAM YEAR ENDED JUNE 30,1997

SCHEDULE "3"
ASSISTIVE TECHNOLOGY $ ====9,=25==:0==:.0:=,0

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

OCONEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1997

SCHEDULE "4"

PERSONNEL

Akins, Coleman, Dillard, Gryzenia, Hall, Hall, Hilburn, Hilliard, Hogan, Jolley, Mack, Northrop, O'Neal, Schrader, Snellgrove, Southwood, Thomas, Walker, Warren, Whatley-Wilcox, White, Wiggins, Williams, Williams, Williams, Woodburn,

Harold T. Donna Abbie Melanie S. Lugine Shirley A. Connie R. Patricia Virginia C. Ellen B. Beverly A. Julia S. Lenton F. Luticia L. Blondell R. Judy M. Gail R. Linda C. Joy S. Christian GladineW. Mattie K. Erica N. Linda R. Susan S. Chris C.

POSITION
Librarian Technical Services Librarian Head of Reference Children's Assistant Custodian/Security Business Manager Circulation Clerk LBPH Librarian Branch Services Librarian Librarian Circulation Desk Manager Reference Assistant Circulation Clerk Children's Librarian Circulation Clerk Library Clerk for the Blind Reference Librarian Library Assistant Assistant Bookkeeper Librarian Circulation Clerk Circulation Clerk Children's Assistant Clerk Director Automation Specialist

SALARIES

$

1,152.00

37,470.80

36,397.40

114.00

24,206.74 $

22,495.20

2,909.38

41,765.00

45,582.00

34,253.80

17,694.12

9,552.91

4,579.23

27,311.16

3,440.36

5,710.50

32,321.20

16,654.90

19,493.52

389.25

3,098.10

16,429.30

185.25

16,538.16

56,366.52

44,058.32

TRAVEL
720.00 27.50
109.84 81.00 67.00 10.50 6.50
213.83 605.07 284.65

$

520,169.12 $===2=,=12=:5=.8==9

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

SECTION II FINDINGS AND QUESTIONED COSTS

OCONEE REGIONAL LffiRARY SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Separation of Duties Finding Resolved Finding Control Number 6872-93-01
The audit report for the year ended June 30, 1996, stated that the Library did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Library implemented changes in the separation of employee duties such that an improved level of internal controls were in effect.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6872-93-02
The audit report for the year ended June 30, 1996, noted that management ofthe 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 systemwide General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements ofthe Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should by 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 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.
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Finding Control Number 6872-97-01
As of June 30, 1997, the Library failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this Code section... The aggregate of the face value of such surety bond, the market value of securities 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".
- 1-

OCONEE REGIONAL LffiRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997 CURRENT YEAR CASH AND CASH EQUIVALENTS Uncollateralized Deposits Finding Control Number 6872-97-01 This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Library should implement adequate procedures to monitor the collateralization of bank balances to ensure compliance at all times with State Laws governing deposits and investments.
-2-