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

AUDIT REPORT OHOOPEE REGIONAL LIBRARY
VIDALIA, GEORGIA YEAR ENDED JUNE 30, 1994

OHOOPEE REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

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

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN

FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

5

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

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

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

18

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

19

3 ACCOUNTS RECEIVABLE

20

SCHEDULE OF REVENUE

4

STATE

21

5

LOCAL AND OTHER

22

OHOOPEE REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

23

7 MEMBERSHIP OF LIBRARY BOARD

24

8 SCHEDULE OF SALARIES AND TRAVEL

25

SECTION IT
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

SECTION ID
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

OHOOPEE REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

~epa:rtmeut nf J\uhits
254 WASHINGTON STREET, S. W. ROOM 214
!'-tfonta, &>eor_ght 30334-8400
January 27, 1995

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

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Ohoopee Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Ohoopee Regional Library, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility ofthe 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 and the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 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 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.
94ARL-44

The effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material.
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 Ohoopee Regional Library as ofJune 30, 1994, 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 conducted for the purpose of forming an opinion on the general purpose financial statements of the Ohoopee Regional Library taken as a whole. The combining statements (Exhibits G and H) and the financial schedules (Schedules I through 8 which includes the Schedule ofFederal Financial Assistance), 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 Ohoopee Regional Library. Such information has been
subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
L-~
Claude L. Vickers State Auditor
CLV:cm 94ARL-44

OHOOPEE REGIONAL LIBRARY -I -

OHOOPEE REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 1994

EXHIBIT "A"

ASSETS Cash and Cash Equivalents

GOVERNMENTAL FUND TYPES

FIDUCIARY ACCOUNT GROUP

------------------------------------- FUND TYPE -------------

GENERAL

SPECIAL REVENUE

CAPITAL PROJECTS

-N-O-N-E-X-P-EN--D-A-B-L-E

GENERAL LONG-TERM

TOTAL (Memorandum

FUND

FUND

FUND

TRUST FUND

DEBT

Only)

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

$ 31,011.35$ 76,Bl0.15 $

0.00 $

400.43

$ 108,221.93

Accounts Receivable

2,751.30

2,751.30

Amount to be Provided in Future Years for Payment of Coq>ensated Absences

$ 14,957.24 14,957.24

Total Assets

$ 33,762.65$ 76,810.15$

0.00 $

400.43 $ 14,957.24 $125,930.47

========- . ======== ======== ========== =========== ===========

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Notes Payable Canpensated Absences Deferred Revenue

$ 16,489.71 $ 48,696.88 2,500.00 18,248.63

Total Liabilities

$ 18,989.71 $ 66,945.51

FUND EQUITY

Fund Balances Reserved For Endowment Corpus For Continuation of Federal Programs

$ 9,864.64

Unreserved Undesignated

$ 9,864.64

$ 14,772.94

0.00 $

Total Fund Equity

$ 14,772.94$ 9,864.64$

$
$
0.00 0.00 $

$ 65,186.59 2,500.00
$ 14,957.24 14,957.24 18,248.63
$ 14,957.24 $100,892.46

370.00
370.00 30.43 400.43

$ 370.00 9,864.64
$ 10,234.64 14,803.37
$ 25,038.01

Total Liabilities and Fund

Equity

$ 33,762.65$ 76,810.15$

0.00 $

400.43 $ 14,957.24 $125,930.47

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

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

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

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL (Memorandum
Only)

REVENUES

State Funds Federal Funds Local and Other Funds
Total Revenues

$ 213,474.48 $ 69,251.37

$ 282,725.85

44,950.00

44,950.00

168,110.66

$

118.81

168,229.47

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

$ 381,585.14 $ 114,201.37 $

118.81 $ 495,905.32

EXPENDITURES

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

$ 196,048.43 $ 26,666.36

$ 222,714.79

36,602.01

36,602.01

19,932.80.

19,932.80

138,106.80 81,251.37

219,358.17

4,264.00

4,264.00

$

6,473.13

6,473.13

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

Total Expenditures

$ 394,954.04 $ 107,917.73 $ 6,473.13 $ 509,344.90
------------ ------------ ------------- -------------

Excess of Revenues over (under) Expenditures $ -13,368.90 $ 6,283.64 $ -6,354.32 $ -13,439.58
------------ ------------ ------------- -------------

OTHER FINANCING SOURCES (USES)
------------------------------

Operating Transfers In Operating Transfers Out

$ 3,581.00
$ -3 ,581. 00
----------- ------------

$

3,581.00

-3 ,581.00

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

Total Other Financing Sources (Uses) $ -3, 581. 00 $ 3,581.00
------------ ------------

$

0.00

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

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$ -16,949.90 $

9,864.64 $

-6,354.32 $ -13,439.58

FUND BALANCE JULY 1
-------------------

31,163.95

0.00

6,913.21

38,077.16

Residual Equity Transfer

558.89

-558.89

0.00

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

FUND BALANCE JUNE 30

$ 14,772.94 $ 9,864.64 $

0.00 $ 24,637.58

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

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

- 3-

OHOOPEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1993

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 282 , 72 5. 85 $ 222,917.00$

44,950.00

0.00

168,229.47

172,520.00

59,808.85 44,950.00 -4,290.53

$ 495,905.32 $ 395,437.00$ 100,468.32

$ 222,714.79 $ 212,282.38$ -10,432.41

36,602.01

46,151.28

9,549.27

19,932.80

21,199.12

1,266.32

219,358.17

117,027.98 -102,330.19

4,264.00

3,722.85

-541.15

6,473.13

6,913.21

440.08

$ 509,344.90$ 407,296.82 $ -102,048.08

$ -13,439.58 $ -11,859.82 $ -1,579.76

$

3,581.00 $ 13,365.00$ -9,784.00

-3,581. 00

-6,565.00

2,984.00

$

0.00 $ 6,800.00$ -6,800.00

$ -13,439.58 $ 38,077.16

-5,059.82 $ 63,365.48

-8,379.76 -25,288.32

FUND BALANCE JUNE 30, 1994

$ 24,637.58 $ 58,305.66$ -33,668.08
============= ============= =============

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

OHOOPEE REGIONAL LIBRARY STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

NON-OPERATING REVENUES Interest Earned
OPERATING EXPENSES None Recorded Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
VINCENT G. HOHE MEMORIAL
BOOK FUND

$

14.06

$

0.00

$

14.06

386.37

$

400.43

====a:========

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

OHOOPEE REGIONAL LIBRARY STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994
Cash Flows from Investing Activities: Interest Received
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities

EXHIBIT "E"

ENDOWMENT FUND
VINCENT G. HOHE MEMORIAL
BOOK FUND

$

14.06

$

14.06

$

386.37

$

400.43

$

0.00

$

0.00

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

OHOOPEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Ohoopee 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 ofthe departure from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the
Ohoopee Regional Library is determined to be a related organization.
The Library Board consists ofeleven members; seven members appointed by Toombs County Library Board, two members appointed by Montgomery County Library Board, and, two members appointed by Tattnall County Library Board. The Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the
State of Georgia for State and Federal funding. Membership in the Library and participation in library services
is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
While the Toombs County Library Board appoints a majority of the Ohoopee Regional Library's Board, the Toombs County Library Board is neither able to impose its will upon the Ohoopee Regional Library nor is there a financial benefit/burden relationship between the two boards, as defined by GASB. The Ohoopee Regional Library is therefore considered to be a related organization of the Toombs County Library Board.
The Ohoopee Regional Library is located in Vidalia, Georgia, and serves Montgomery, Tattnall, and Toombs Counties.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.

- 7-

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A fund is a separate accounting entity with a self-balancing set ofaccounts. 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 ofassets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for GSFIC Project No. 7932-87-SB-018.
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 organiz.ations, other government units and/or other funds. This fund includes:
NONEXPENDABLETRUSTFUND Vincent G. Bobe Memorial Book Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used exclusively for the purchase of library books.

- 8-

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences not appropriately accounted for and recorded in other fund types.
BASIS OF ACCOUNTING
The accounting and :financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current :financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other :financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be :financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
The nonexpendable trust fund is accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthis fund is 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 recogniz.ed 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 fund. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

- 9-

OHOOPEE REGIONAL LIBRARY

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
Ohoopee Regional Libnuy has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Libnuy administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division of Public Library Services, as a part of the Library's Annual Application for State Aid.
The Libnuy prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF CASH DEPOSITS Cash consists of deposits (including certificates of deposit, savings 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 amounts due from other libraries 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 financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose :financial statements.
INTERFUND TRANSACTIONS
The Library has the following types ofinterfund transactions:

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OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements ofexpenditures/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 transfen are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfen 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 data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State qf 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 ofindebtedness 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,
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OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

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 ofindebtedness, 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 Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $109,079.97. 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, 1994, as follows:
Risk Category 1 2
3
Total
Note 3: RISK MANAGEMENT

Bank Balance
$ 107,944.25 0.00
1,135.72
$ I 09.079.97

The Library has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based upon experience. During fiscal year 1994, no claims were paid.

- 12 -

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Compensated Absences

Balance July 1, 1993

$ 12,824.28

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

2,019.41 113.55

Balance June 30, 1994

$ H,2SZ.24

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

Note 5: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of$18,248.63 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. Lottery funds in the amount of $18,248.63 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Media Center and Library Equipment

$ 18 248.63

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

Note 6: ACCUMULATED EMPLOYEES LEAVE

The Library's professional and nonprofessional employees working at least 10 hours per week earn vacation leave according to their regular work week schedule ranging from 3 to 13 hours per month. Professionals and nonprofessionals may accrue balances of 160 and 120 hours, respectively. Upon termination of employment, employees are paid at their current rate of pay for all unused personal leave up to the maximum accumulation as identified above. See Note 1 - Compensated Absences

Note 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

- 13 -

OHOOPEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement
allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years
of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $202,463.88; total payroll was $240,269.79.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to.$36,058.80, of which $23,911.00 was made by the Library and $12,147.80 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe 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 ofthe pension benefit obligation was adopted by the GASB to enable

- 14 -

OHOOPEE REGIONAL LIBRARY

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS

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 ofJune 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292 000,00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of $23,911.00 was actuarially determined and represented .0045% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 8: SURETY BONDS

All employees of the Ohoopee Regional Library are covered under a Faithful Performance Blanket Bond in the amount of $10,000.00 with the Hartford Insurance Company of the Southeast, Maitland, Florida, their Bond Number PEB LT7407 on which premium was paid through July 1, 1994.

- 15 -

OHOOPEE REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 65,493.08 $ 11,317.07 $ 76,810.15
============= ============= =============

LIABILITIES AND FUND EQUITY
---------------------------
LIABILITIES
-----------
Accounts Payable Deferred Revenue
Total Liabilities
FUND EQUITY
-----------
Fund Balances Reserved For Continuation of Federal Programs Unreserved Undesignated
Total Fund Equity

$ 47,244.45 $ 1,452.43 $ 48,696.88

18,248.63

18,248.63

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

$ 65,493.08 $ 1,452.43 $ 66,945.51
------------- ------------- -------------

$ 9,864.64 $ 9,864.64

$

0.00

0.00

0.00

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

$

0.00 $ 9,864.64 $ 9,864.64

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

Total Liabilities and Fund Equity

$ 65,493.08 $ 11,317.07$ 76,810.15
============= =============

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

OHOOPEE REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES ANO CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1 1994

EXHIBIT H 11 11

REVENUES
--------
State Funds Federal Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Administration
Total Expenditures
Excess of Revenues over Expenditures OTHER FINANCING SOURCES
-----------------------
Operating Transfers ln
Excess of Revenues and Other Financing Sources over Expenditures
FUND BALANCE JULY 1
-------------------

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 69,251.37

$ 69,251.37

$ 44,950.00

44,950.00

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

$ 69,251.37 $ 44,950.00 $ 114,201.37
------------- ------------- -------------

$ 26,666.36 $ 26,666.36

$ 69,251.37

12,000.00

81,251.37

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

$ 69,251.37 $ 38,666.36 $ 107,917.73
------------- ------------- -------------

$

0.00 $ 6,283.64 $ 6,283.64

3,581.00

3,581.00

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

$

0.00 $ 9,864.64 $ 9,864.64

0.00

0.00

0.00

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

FUND BALANCE JUNE 30

$

0.00 $ 9,864.64$ 9,864.64

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

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1994

SCHEDULE "l"

FUNDING AGENCY PROGRAM/GRANT
--------------
Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services 1992 Carry-Over Grant 1993 Carry-Over Grant 1994 Grant

CFDA NlMBER

FEDERAL FUNDS

RECEIVED IN

FEDERAL

AWARDS

PERIOD (NET REVENUE EXPENDITURES

IN PERIOD OF REFUNDS) IN PERIOD

IN PERIOD

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

84.034 84.034 84.034

$ 4,000.00$ 4,000.00$ 4,000.00$ 4,000.00

32,200.00 32,200.00 32,200.00 33,944.12(1)

8,750.00

8,750.00

8,750.00

722.24

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

Total Federal Financial Assistance

$ 44,950.00$ 44,950.00$ 44,950.00$ 38,666.36
============ ========== =========== =====--=--======

The Library had no major programs as defined by the Single Audit Act 1984.
(1) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.

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

OHOOPEE REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1 1994

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Darby Bank and Trust Company, Vidalia, Georgia
N.O.W. Accounts (3.50%) Passbook Savings Account (3.20%)
Vidalia Federal Savings and Loan, Vidalia, Georgia
Certificate of Deposit No. 1821 (3.75%) Passbook Savings Account (4.00%)
OTHER
Petty Cash

$ 99,801.82 400.43 $ 100,202.25

$

39.90

7,869.78

7,909.68

110. 00 $ 108,221.93

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

OHOOPEE REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30 1 1994
Glennville Public Library (Tattnall County) Reimbursement for Salaries
Montgomery County Library Reimbursement for Salaries
Reidsville Public Library (Tattnall County) Reimbursement for Salaries
Various Sources Donations

SCHEDULE "3"

GOVERNMENTAL FUND TYPE
GENERAL FUND

$

252.97

1,312.13

310.81

875.39

$ 2,751.30
=============

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

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

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Media Center and Library Equipment

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$ 151,104.4B 33,4B5.00
2a,,aas. oo
$

$ 151,104.48 33,485.00 28,885.00

69,251.37

69,251.37

$ 213,474.48$ 69,251.37$ 282,725.85
============= ============= =============

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

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

SCHEDULE "5"

LOCAL SOURCES City Governments Lyons Vidalia
County Government Board of Commissioners Toombs
Public Libraries Glennville Public Library (Tattnall County) Montgomery County Reidsville Public Library (Tattnall County)
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Photocopy Sales Sale of School Assets Other

GOVERNMENTAL FUND TYPES

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTAL

$ 3,999.96 52,650.00

$

3,999.96

52,650.00

38,500.00

38,500.00

25,328.92 11,859.49
14,539.95
8,590.54 3,707.22 2,150.31 $
635.31 5,113.81 1,028.75
6.40

118.81

25,328.92 11,859.49
14,539.95
8,590.54 3,707.22 2,269.12
635.31 5,113.81 1,028.75
6.40

$ 168,110.66 $

118.81 $ 168,229.47

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

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 240,269.79 53,486.27 3,520.01 3,009.72 $ 9,257.20 43,856.37 19,225.27 13,159.79 1,142.17

$
12,946.33 4,673.35 2,583.45
2,551.35

240,269.79 53,486.27 3,520.01 15,956.05 13,930.55 46,439.82 19,225.27 15,711.14 1,142.17

8,027.45

85,163.25

93,190.70

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

$ 394,954.04$ 107,917.73 $ 502,871.77
============= ============= =============

See notes to the general purpose financial statements. - 23 -

OHOOPEE REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1994
BOARD MEMBER ADDRESS
Mr. Tom Hutcheson, Chairman (*) 306 Violet Street Vidalia, Georgia 30474 Mrs. Valera Brinson(*) Route 1, Box 132 Uvalda, Georgia 30473 Mrs. Gladys Days(*) P. 0. Box 293 Mount Vernon, Georgia 30445 Mr. Mike Dennard(*) P. 0. Box 1132 Vidalia, Georgia 30474 Mr. Jay Martin (*) P. 0. Box 55 Glennville, Georgia 30427 Mrs. Alice McDonald(*) P. 0. Box 321 Vidalia, Georgia 30474 Mrs. Rose McRae P. 0. Box 176 Mt. Vernon, Georgia 30445 Mr. Thomas Moore(*) P. 0. Box 208 Vidalia, Georgia 30474 Mrs. Pennie Moses(*) P. 0. Box 376 Uvalda, Georgia 30473 Mrs. Carol Rice(*) 800 Center Place Vidalia, Georgia 30474 Mrs. Sherri Threlkeld(*) 1106 Lofton Lane Vidalia, Georgia 30474 Mrs. Sherri Wallace BPC Box 2096 Mt. Vernon, Georgia 30445 Mrs. Pam Waters (*) P. 0. Box 218 Glennville, Georgia 30427
(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements. - 24 -

SCHEDULE "7"

OHOOPEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "8"

PERSONNEL
Brady, Brock, Cole, Collins, Durrence, Fennel 1, Fortenberry, Gore, Gray, Gres, Hartz, Hartz, Kratfel, Mitchell, Moore, Moxley, Rolen, Sanford, Shoemaker, Swindell, Thompson, Trull , Walker, Walker, Wells, Wells,

Lori M. Heather L. Teresa D. Hilda E. Gwinnette Debra Joyce W. Patricia T. Natalie M. Dusty S. Emilie K. Fred Hilda A. Casandra Tammy A. Betty W. Joanne India K. Elizabeth D. Elak Sally J. Melba F. Charles H. Willie B. Cindy S. Elanor

POSITION
Branch Clerk Technical Services Librarian Children's Librarian Clerk Clerk Branch Clerk Extension Services Librarian Branch Manager Administrative Clerk Director Branch Manager Technical Services Librarian Clerk Page Circulation Clerk Administrative Assistant Page Branch Manager Extension Services Librarian Clerk Circulation Clerk Bookmobile Custodian Custodian Branch Manager Branch Clerk

SALARIES

TRAVEL

$

843.63

14,523.47

27,145.20$

4,956.03

5,336.65

2,482.00

22,621.00

13,336.80

10,400.03

41,272.80

11,169.72

15,852.20

3,726.90

2,219.80

1,200.01

13,241.01

1,393.92

6,916.25

4,524.20

1,312.50

12,533.85

12,221.85

1,103.91

1,412.70

5,599.00

2,924.36

392.37
1,286.95 244.59
1,291.34 20.58
264.18 20.00

$ 240,269.79 $ 3,520.01

See notes to the general purpose financial statements. - 25 -

SECTION II COMPLIANCE

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

:!B.epartm.eut nf J\uhits
254 WASHINGTON STREET. S.W. ROOM 214
J\thmta, Qi')nrBia 30334-8400
January 27, 1995

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

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members ofthe Ohoopee Regional Library Board
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Ohoopee Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 27, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. 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.
Compliance with laws, regulations, contracts, and grants applicable to Ohoopee Regional Library is the responsibility of the Library's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Library's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Ohoopee Regional Library complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Library had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
d--~-
Claude L. Vickers State Auditor
CLV:cm 94CRL-10

CLAUDE L. VICKERS STATE AUDl10R (404) 656-2174
TAX RATIO (404) 656-0494

~epa:rtmeut nf ~uhits
254 WASHING10N STREET, S.W. ROOM 214
J\thmta, ~enrgia: 30334-8400
January 27, 1995

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

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members of the Ohoopee Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Ohoopee Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 27, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Ohoopee Regional Library's compliance with the following requirements applicable to its Federal financial assistance program, which is listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office ofManagement and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Library's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Ohoopee Regional Library had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which is described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully. submitted,
#4-6--~
Claude L. Vickers State Auditor
CLV:cm 94CRL-50

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

~epartment nf cRuh-its
254 WASHINGTON STREET, SW ROOM 214
J\t!auht, &;enr.sh1 30334-8400
January 27, 1995

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

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Ohoopee Regional Library Board
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Ohoopee Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 27, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
In connection with our audit of the fiscal year 1994 general purpose financial statements of the Ohoopee Regional Library and with our consideration of the Library's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to the nonmajor Federal financial assistance program for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:
Types of Services Allowed or Unallowed
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Ohoopee Regional Library's compliance with these requirements. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing
came to our attention that caused us to believe that the Ohoopee Regional Library had not complied, in all material respects, with those requirements.
94CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION Ill INTERNAL CONTROL

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

~cpa:rfmcnf nf l\uhits
254 WASHINGTON STREET, S. W ROOM 214
J\tlnubt, ~eorgia 30334-8400
January 27, 1995

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

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Ohoopee Regional Library Board
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Ohoopee Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 27, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement.
In planning and performing our audit of the general purpose financial statements of the Ohoopee Regional Library for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Ohoopee Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(1) Cash and Cash Equivalents

(5) Employee Compensation

(2) Revenue/Receivables/Receipts

(6) General Ledger

(3) Procurement

(7) General Fixed Assets

(4) Expenditures/Liabilities/ Disbursements

For all ofthe internal control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk.

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(1) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more ofthe specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that both ofthe reportable conditions disclosed above are also considered to be material weaknesses.

94ICL-3

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Ohoopee Regional Library's financial statements and this report does not affect our report thereon dated January 27, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-3

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

~:epnrtm:eut of J\uhits
254 WASHINGTON STREET, S. W. ROOM 214
~thmht, &;eor_gia 30334-8400
January 27, 1995

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

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Ohoopee Regional Library Board
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Ohoopee Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 27, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Ohoopee Regional Library complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Library's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Library's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated January 27, 1995.
The management ofthe Ohoopee Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The
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objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(I) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports

(I) Types of Services Allowed or Unallowed
(2) Reporting
(3) Applicable Special Tests and Provisions

(5) Allowable Costs/Cost Principles (6) Audit Follow-Up/Resolution

(4) Other Requirement Claims for Advances and Reimbursements

(7) Administrative Requirements

For all of the internal control structure categories listed above, we obtained an understanding ofthe design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1994, the Ohoopee Regional Library had no major Federal financial assistance programs and expended all of its total Federal financial assistance under the following nonmajor Federal financial assistance program:

Library Services and Construction Act Title I - Public Library Services

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements, and specific requirements, as described above that are applicable to the aforementioned nonmajor program. Our procedures were less in
scope than would be necessary to render an opinion on these internal control structure policies and procedures.
Accordingly, we do not express such an opinion.

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We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Library's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(I) Cash Management

(2) Administrative Requirements

A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule ofFindings and Improper or Questioned Costs, we noted a reportable condition that we believe to be a material weakness in the following control category:

Administrative Requirements

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
a-.Respectfully submitted,

Claude L. Vickers State Auditor

CLV:cm 94ICL-16

SECTIONN FINDINGS AND IMPROPER ORQUESTIONED COSTS

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Segregation ofDuties Reportable Condition - Material Weakness Audit Control Number 7932-93-01
The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation of duties in the performance of accounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties for all funds.
This deficiency is the result of the budgetary constraints which limit management's ability to hire additional staff required to clear this finding. 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.
Note: The Federal financial program affected by this finding is as follows:
Library Services and Construction Act - Title I (CFDA 84.034)
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7932-93-02
The audit report for the year ended June 30, 1993, noted that the Library did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, no action was taken by the Library to establish this account group due to staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff. Appropriate action should be taken by the Library to establish accounting controls and procedures to implement and maintain a General Fixed Assets Account Group for inclusion in the accounting records. Subsidiary records should be established for land, buildings, equipment and inexhaustible collections
and books owned by the Library. Detailed records should be maintained of all additions and deletions for each
class of fixed assets that comprise this group.

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balance Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 7932-94-01
A review of cash management procedures for the Library Services and Construction Act, Title I - Public Library Services Program (CFDA 84.034) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1994, the program had an average cash balance of$12,151.43 with excessive ending monthly cash balances in 9 months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs of this program. Procedures should be implemented to minimiz.e the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the Library.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

OHOOPEE REGIONAL LIBRARY SYSTEM PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 7932-93-01
We concur with this finding. Due to current budgetary constraints, the Library is unable to hire the additional staff required to clear this finding. The Library feels it has provided for the most appropriate assignment of duties with the number ofpersonnel available to perform the accounting functions. With stafflimitations, this finding can not be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7932-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Library has decided not to pursue the recording ofgeneral fixed assets on the financial statements.
The Library staff is currently compiling and maintaining a separate fixed asset inventory list for all new equipment purchases.
CASH MANAGEMENT Excessive Cash Balance Federal Financial Assistance Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7932-94-01
We concur with this finding. The Library had several LSCA Title I grants which provided for purchases of items which were expensive. In two instances anticipated delivery of the materials was delayed, resulting in expenditures not being made on schedule. No other programs of this type are currently planned.