Audit report, Ohoopee Regional Library, Vidalia, Georgia, year ended June 30, 1995

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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, 1995

OHOOPEE REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

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 CASH AND CASH EQUIVALENTS

18

2 ACCOUNTS RECEIVABLE

19

SCHEDULE OF REVENUE

3

STATE

20

4

FEDERAL

21

5

LOCAL AND OTHER

22

OHOOPEE REGIONAL LIBRARY - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

23

7

LOTTERY PROGRAMS

24

8 MEMBERSHIP OF LIBRARY BOARD

25

9 SCHEDULE OF SALARIES AND TRAVEL

26

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

SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Ohoopee Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Ohoopee Regional Library, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets
Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effect on the general purpose financial statements of this variance or omission have not been determined, but is believed to be material.

95ARL-42

In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Ohoopee Regional Library as of June 30, 1995, and the results ofits 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 9), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the 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 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.
R~~~

CLV:cm 95ARL-42

Claude L. Vickers State Auditor

OHOOPEE REGIONAL LIBRARY - 1-

OHOOPEE REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE30 1995

EXHIBIT"A"

ASSETS Cash and Cash Equivalents Accounts R-ivable Amount to be Prollided in Future Years
For Payment of Compensated Absences
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

$

26,986.83 $

2,211.30 $

1,839.12

9,159.48

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onll} JUNE 30, 1995 JUNE 30, 1994

$

31,037.25 $

108,221.93

9,159.48

2,751.30

$

12829.34

12829.34

14 957.24

s

36146.31 $

2211.30 S

1839.12 S

12829.34 S

53026.07 S

125 930.47

LIABILITIE ANQ FUND EQUITY

LIABILITIES

Accounts Payable

s

Expired Grant Balances Payable

Notes Payable

Deferred R-nue

Compensated Absences

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Endowment Corpus

Unreserwd

Undesignated

$

Tolal Fund Equity

s

18,122.71 S 86.68
18 209.39 $
17,936.92 $ 17,936.92 $

Total Liabilities and Fund Equity $

36146.31 S

2,211.30
2211.30
$ 0.00 0.00 S 21211.30 $

$ $
1,760.00 79.12
1 839.12 1839.12 S

$
12829.34 12829.34 S

20,334.01 S 86.68
12 829.34 33,250.03 $

65,186.59
2,500.00 18,248.63 14 957.24
100892.46

$
s
12 829.34 $

$ 1,760.00
18 016.04
19TT6.04 $

9,864.64 370.00
14803.37
25,038.01

53026.07 $

125930.47

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
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1995

EXHIBITB

REVENUES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

{Memorandum Onl~}

YEAR ENDED

JUNE 30, 1995

JUNE 301 1994

State Funds Federal Funds Local and Other Funds

$ 207,012.89 $ 172,128.99

19,348.63 $
15,000.00

226,361.52 $
15,000.00
172,128.99

282,725.85
44,950.00
168,229.47

Total Revenues

$ 379,141.88 $

34,348.63 $

413 490.51 $

495,905.32

EXPENDITURES

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

$ 190,121.06 $ 32,630.30 19,901.05 130,140.44 3,185.05

10,166.61 $ 34,046.66

200,287.67 $ 32,630.30 19,901.05 164,187.10 3,185.05

222,714.79 36,602.01 19,932.80
219,358.17
4,264.00
6 473.13

Total Expenditures Excess of Revenues over (under) Expenditures

$ 3751sn.so $

$

3163.98 $

44,213.27 $ -9,864.64 $

4201191.17 $ -6700.66 $

509,344.90 -13 439.58

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$

3,581.00

-3 581.00

Total Other Financing Sources (Uses)

$

0.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

3,163.98 $

-9,864.64 $

-6,700.66 $

-13,439.58

FUND BALANCE JULY 1

14,n2.94

9,864.64

24,637.58

381on.1s

FUND BALANCE JUNE 30

$

17,936.92 $

0.00 $

17,936.92 $ ___2_4..,,63_7._58_

The notes to the general purpose financial statements are an integral part of this statement.
-3-

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

EXHIBIT"C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994
ADJUSTMENTS
Prior Year (Net)

GENERAL FUND

BUDGET

ACTUAL

$ 213,474.48 $ 109,250.00
$ 322,724.48 $

207,012.89 172,128.99 379,141.88

$ 141,795.58 $ 33,469.94 20,009.20 125,069.58 3,436.93

$ 323,781.23 $

$

-1,056.75 $

190,121.06 32,630.30 19,901.05
130,140.44 3,185.05
375,977.90
3,163.98

$

6,800.00

-6,565.00

$

235.00

$

-821.75 $

14,772.94

3,163.98 14,772.94

13.00

FUND BALANCE JUNE 30, 1995

$ 13,964.19 $

17,936.92

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00 $

19,348.63

15,000.00

$

0.00 $ 34,348.63

$

6,916.55 $

10,166.61

21,196.72

34,046.66

$ 28,113.27 $ $ -28,113.27 $

44,213.27 -9,864.64

$ -28,113.27 $ 28,113.27

-9,864.64 9,864.64

-5,963.85

$ -5,963.85 $ ==~-o-.oo=

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, 1995

EXHIBIT"D"

OPERATING REVENUES Donations
OPERATING EXPENSES None Recorded Operating Income
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
OHOOPEE REGIONAL LIBRARY BOOK
FUND

TOTALS {Memorandum Onlt}
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

1,390.00 $

1,390.00 $

0.00

$

0.00 $

0.00 $

0.00

$

1,390.00 $

1,390.00 $

0.00

48.69

48.69

14.06

$

1,438.69 $

1,438.69 $

14.06

400.43

400.43

386.37

$

1,839.12 $

1,839.12 $ _ _ _ _4_oo_._43_

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, 1995

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Received from Donations
Cash Flows from Investing Activities: Interest Received
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUND
OHOOPEE REGIONAL LIBRARY BOOK
FUND

TOTALS {Memorandum Onll~
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

1,390.00 $

1,390.00 $

0.00

$

48.69 $

48.69 $

$

1,438.69 $

1,438.69 $

400.43

400.43

14.06 14.06 386.37

$

1,839.12 $

------ 1,839.12 $

400.43

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

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 of the departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in confonnity 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 of the Toombs County Library Board.
The Library Board consists of eleven 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 ofGeorgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
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.

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OHOOPEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\ffiNTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
-
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources 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.
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 Ohoopee Regional Library Book Endowment 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 used exclusively for the purchase oflibrary books.
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.

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OHOOPEE REGIONAL LIBRARY

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) 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 of this 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 recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
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.
BUDGET
The Ohoopee Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.

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OHOOPEE REGIONAL LIBRARY

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part of the Library's annual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist 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 general purpose 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.
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 of this data.

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OHOOPEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond
and the market value 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. 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 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 ofindebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $35,458.36. The bank balances were entirely covered by Federal depository insurance.

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OHOOPEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note3: RISKMANAGEMENT

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

The Library has obtained commercial insurance for risk of loss associated with torts, assets and job related illnesses or injuries. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

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

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The Library has experienced no unemployment compensation claims during the last two fiscal years.

Note 4: GENERAL LONG-TERM DEBT

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

Compensated Absences

Balance July 1, 1994

$ 14,957.24

Deductions

2,127.90

Balance June 30, 1995

$ 12,829.34

Note 5: CONTINGENT LIABILITIES

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

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OHOOPEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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. After five years of employment, professionals and nonprofessionals may accrue an additional 40 hours of incentive leave to a maximum accumulation of200 and 160 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).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years ofservice and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced-benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1995, was $201,450.93; total payroll was $237,314.36.

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OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 7: RETIRE:MENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $33,863.85, of which $23,791.35 was made by the Library and $10,072.50 was made by employees. These contributions represented 11.81% (Library) and 5% (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 of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1 058,958,000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $23,791.35 was actuarially determined and represented .0042% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

- 14 -

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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, 1995.

- 15 -

OHOOPEE REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30, 1995

EXHIBIT"G"

ASSETS Cash and Cash Equivalents
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

LOTTERY PROGRAMS

LIBRARY SERVICES AND CONSTRUCTION
ACT TITLE I PUBLIC LIBRARY SERVICES

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

2,211.30 $

-------- 2,211.30 $

76,810.15

$

2,211.30 $

2,211.30 $

48,696.88

18,248.63

$

2,211.30 $

2,211.30 $

66,945.51

$

0.00 $

$

0.00 $

0.00 $ 0.00 $

$ 0.00 0.00 $

9,864.64 0.00
9,864.64

Total Liabilities and Fund Equity

$

0.00 $

2,211.30 $

2,211.30 $ _ _ _1s_.a_1_0_.1_5

See notes to the general purpose financial statements.

- 16 -

OHOOPEE REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995

EXHIBIT "H"

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

LOTTERY PROGRAMS

LIBRARY SERVICES AND CONSTRUCTION .
ACT TITLEI PUBLIC LIBRARY SERVICES

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 19,348.63 $
$ 19,348.63 $

$ 15,000.00
15,000.00 $

19,348.63 $ 15,000.00
34,348.63 $

69,251.37 44,950.00
114,201.37

$
$ 19,348.63

$ 19,348.63 $

$

0.00 $

0.00

10,166.61 $ 14,698.03
24,864.64 $
-9,864.64 $ 9,864.64

10,166.61 $ 34,046.66
44,213.27 $
-9,864.64 $ 9,864.64

26,666.36 81,251.37 107,917.73
6,283.64 3,581.00

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

------- 0.00 $

9,864.64

See notes to the general purpose financial statements.

- 17 -

OHOOPEE REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30, 1995

SCHEDULE "1"

INTEREST BEARING ACCOUNTS
Darby Bank and Trust Company, Vidalia, Georgia
Certificate of Deposit No. 9147 (5.00%) N.O.W. Account (3.56%) Savings Account (3.60%)
Vidalia Federal Savings and Loan Association, Vidalia, Georgia
Certificate of Deposit No. 1821 (5.50%) Passbook Savings Account (4.00%)
OTHER
Petty Cash

$

781.38

23,480.51

1,057.74 $ 25,319.63

$

5,566.14

41.48

5,607.62

110.00

$ 31,037.25

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

OHOOPEE REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1995
Glennville Public Library (Tattnall County) Reimbursement for Expenses
Montgomery County Library Reimbursement for Expenses
Reidsville Public Library (Tattnall County) Reimbursement for Expenses

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

2,231.72

5,187.45

1,740.31

$ ============9=,1=5=9=.=4=8=

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "3"

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

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

144,642.89

33,485.00

28,885.00

$ 144,642.89 33,485.00 28,885.00

$

1,100.00

18,248.63

1,100.00 18,248.63

$

207,012.89 $

19,348.63 $ 226,361.52

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "4"

AGENCY/FUNDING
Education, U.S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services

GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ===========15=,o=o=o=o.=o

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

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

SCHEDULE "5"

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

GOVERNMENTAL FUND TYPE GENERAL FUND

$

3,999.96

54,825.00

38,500.00
25,214.71 13,001.95 18,669.89
3,527.04 4,567.22 2,350.61
401.85 7,020.76
50.00

$ =============1=72='=12=8=9. =9

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 237,314.36 52,715.24 2,786.04 $ 83.89 4,862.69
10,567.86 36,462.06 17,208.97 13,245.90
416.85 145.07 168.97

$
121.49 17,833.63
1,062.50 552.00
1,271.99 10,166.61
50.00

237,314.36 52,715.24 2,907.53 17,917.52 5,925.19 552.00 11,839.85 46,628.67 17,208.97 13,295.90 416.85 145.07 168.97

13,155.05

13,155.05

Total Expenditures

375,977.90 $

44,213.27 $ 420,191.17

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995

SCHEDULE "7"

EXPENDITURES
Operating Costs Professional and Technical Services Property Services Supplies Communications and Insurance

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

TOTAL

$

$

1,062.50

37.50

17,698.63 $
500.00 50.00

17,698.63 1,062.50 537.50 50.00

Total Expenditures

$

1,100.00 $

18,248.63 $ ===19=,3=4=8=.6=3

See notes to the general purpose financial statements. - 24 -

OHOOPEE REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30. 1995

BOARD MEMBER ADDRESS
Mr. Tom Hutcheson, Chairman(*) 306 VIOiet Street Vidalia, Georgia 30474
Dr. Jesse E. Bradley (*)
P. 0. Box624 Reidsville, Georgia 30453
Mrs. Valera Brinson (*) Route 1, Box 132 Uvalda, Georgia 30473
Mrs. Gladys Days (*)
P. 0. Box293 Mount Vernon, Georgia 30445
Mr. Mike Dennard
P. 0. Box 1132
Vidalia, Georgia 30474
Mr. Jay Martin (*) P. 0. Box55 Glennville, Georgia 30427
Mrs. Alice McDonald (*) P. 0. Box321
Lyons, Georgia 30436
Mr. Thomas Moore (*) P. 0. Box208 Vidalia, Georgia 30474
Mrs. Pennie Moses (*) P. 0. Box376 Uvalda, Georgia 30473
Mr. Logan Porter (*) 103 West Howard Street Glennville, Georgia 30427
Mrs. Carol Rice (*) 800 Center Place Vldalia, Georgia 30474
Mrs. Sheri Threlkeld (*) 1106 Lofton Lane Vidalia, Georgia 30474
Mrs. Pam Waters P. 0. Box218 Glennville, Georgia 30427
(*) Denotes Board Members Serving as of June 30, 1995
See notes to the general purpose financial statements.

- 25 -

SCHEDULE "8"

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

SCHEDULE"9"

PERSONNEL

Braddy, Brock, Coe, Cole, Collins, Davis, Currence, Fennell, Gay, Gore, Gray, Gres, Hartz, Hemphill, Knight, Kratfel, Mann, McMillan, Meadows, Medlock, Mitchell, Moxley, Nelms, Poole, Rolen, Sandford, Shoemaker, Smith, Soderberg, Swindell, Thompson, Trull, Velcoff, Walker, Wells, Williams,. Williams,

LoriM. Heather L. Jamie M. Teresa D. Hilda E. Elizabeth C. Gwinnette Debra Leslie N. Patricia T. Natalie M. Dusty S. Emilie K Madelyn D. Angela J. Hilda A. Elena L. Anita C. Carolyn M. D. Karen Casandra R. BettyW. Margaret Lillian April A. Joanne E. India K Elizabeth D. Sonya L. Patricia J. Elak SallyJ. Melba F. Nancy I. WillieB. Cindy S. Betty F. James L.

Total Cash Basis

Accruals June 30, 1994 June 30, 1995

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

See notes to the general purpose financial statements.

-26-

SALARIES

TRAVEL

$

900.33

26,783.66 $

828.50

5,393.95

5,022.38

402.52

5,053.79

2,485.40

320.12

13,466.82

5,811.90

43,997.60

11,273.60

190.00

426.91

1,936.17

290.71

455.00

2,345.75

2,979.27

499.55

13,353.60

544.02

354.67

321.31

8,930.26

28,276.20

3,887.58

16,195.80

990.00

12,646.40

12,334.40

3,150.00

2,306.68

3,033.64

60.00

65.87

155.33
1,078.46
5.24 1,339.49
51.37 427.79

$

237,314.36 $

3,057.68

0.00 0.00

-264.18 114.03

------ $

237,314.36 $

2,907.53

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7932-93-01
The audit report for the year ended June 30, 1994, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Library made some improvements regarding separation of employee's duties, but still did not achieve an adequate degree ofintemal control. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7932-93-02
The audit report for the year ended June 30, 1994, noted that the management of the Ohoopee Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in-the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions for each class of fixed assets that comprise this group.
CASH MANAGEMENT Excessive Cash Balances Audit Control Number 7932-94-01
The audit report for the year ended June 30, 1994, stated that 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 ofExpenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures again revealed excessive cash balance accumulations by the Library. During fiscal year 1995, the program had an average cash balance of $6,542.77 with excessive ending monthly cash balances in 11 months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Library.

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
REVENUE/RECEIVABLES/RECEIPTS Inadequate Accounting Procedures Audit Control Number 7932-95-01
For the year under review, the Library's accounting procedures did not provide for adequate internal control over cash receipts. An examination of the fines and fees revenue account revealed that some cash receipts were never deposited to the bank account and were used instead for cash expenditures. Management claims that this condition occurred because the Library did not have adequate petty cash available for expenditures. Procedures should be implemented to ensure that all cash received is deposited intact on a timely basis to the Library's bank account.
GENERAL LEDGER Outstanding Loan Audit Control Number 7932-95-02
On December 31, 1994, the General Fund had an unpaid loan outstanding in the amount of $2,500.00. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia provides, in part, as follows:
"The governing authority of any county, municipality or other political subdivision ofthis state may incur debt by obtaining temporary loans in each year to pay expenses. . . Such loans shall be payable on or before December 31 of the calendar year in which such loan is made. . .".
This condition occurred because the Library did not have adequate cash available to repay the loan on December 31, 1994. Repayment of loans should be made in conformity with constitutional requirements.

SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

OHOOPEE REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7932-93-01
Employee duties have been reassigned as possible given staffing limitations.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7932-93-02
The Library has contracted with a company to begin arriving at a General Fixed Assets Control Account Group.
CASH MANAGEMENT Excessive Cash Balances Audit Control Number 7932-94-01
As previously discussed, funds must be requested in order to be available for payment of invoices when submitted. Due to vendor error, materials were not received as ordered on the date due. It is impossible to control dates and times ofnot yet published materials. The Library must have adequate cash reserves to meet invoices when the material becomes available.
REVENUE/RECEIVABLES/RECEIPTS Inadequate Accounting Procedures Audit Control Number 7932-95-01
The Library feels that this finding is over-stated. All funds were controlled; cash receipts were reimbursed from petty cash; and the necessity for the action was understood by the financial comptroller for the Board of Trustees. To prevent this finding from reoccurring the Library has increased petty cash amounts.
The Library feels that this can cause significant other problems, including employee personal safety, and believes that these concerns should be noted.
GENERAL LEDGER Outstanding Loan Audit Control Number 7932-95-02
This finding is incorrectly stated. Collateral on the loan was a Library Certificate ofDeposit. This would be used to pay the loan by reducing the amount of the CD. This was done immediately upon the completion of the certificates term and before redepositing the remaining amount.