. ~ -'--"""""'-~~-_.~------~------~---~~-~~""""""'~~~~=~~- I I C';A I .11 300 ~ ~I R4ta C73~S" 11 '} b -~17 AUDIT REPORT OHOOPEE REGIONAL LIBRARY VIDALIA, GEORGIA YEAR ENDED JUNE 30, 1997 STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 RECEIVED OCT 192000 'I"'" .o,. __ ! Documents I .... - , OHOOPEE REGIONAL LffiRARY - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXIllBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS -OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS 5 D STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 6 E STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 7 F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 8 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND G COMBINING BALANCE SHEET 16 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 17 SCHEDULES SCHEDULE OF REVENUE 1 STATE 18 2 FEDERAL 19 3 SCHEDULE OF EXPENDITURES LOTTERY PROGRAM 20 4 SCHEDULE OF SALARIES AND TRAVEL 21 OHOOPEE REGIONAL LmRARY - TABLE OF CONTENTS - SECTIONn FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 9, 1998 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education and Director and Members of the Ohoopee Regional Library Board INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have audited the accompanying general-purpose financial statements of the Ohoopee Regional Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Ohoopee Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose 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. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Ohoopee Regional Library as of June 30, 1997, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles. As discussed in Note 1 to the general-purpose financial statements, during fiscal year 1997, the Library completed a comprehensive inventory of its general fixed assets for inclusion in the general-purpose financial statements. This change is in accordance with generally accepted accounting principles. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Ohoopee Regional Library taken as a whole. The accompanying combining statements (Exhibits G and H) and the financial schedules (Schedules 1 through 4), as listed in the table of contents, are presented 97ARL-43 for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion is fairly presented in all material respects in relation to the generalpurpose financial statements taken as a whole. A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:jb 97ARL-43 OHOOPEE REGIONAL LffiRARY OHOOPEE REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1997 ASSETS Cash and Cash Equivalents Accounts Receivable General Fixed Assets Land Buildings Equipment Inexhaustible Collections and Books Amount to be Provided in Future Years For Payment of Compensated Absences GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND $ 34,127.71 $ 11,653.96 4,044.20 Total Assets $ 38,171.91 $===11=,6=5=3=,9=6 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Expired Grant Balances Payable Compensated Absences Total Liabilities FUND EQUITY Investment in General Fixed Assets Fund Balances Reserved For Continuation of Federal Program For Endowment Corpus Unreserved Undesignated Total Fund Equity $ 14,952.25 $ 7,632.26 $ 22,584.51 $ 5,313.02 121.84 5,434.86 $ $ 15,587.40 $ 15,587.40 $ 6,219.10 0.00 6,219.10 Total Liabilities and Fund Equity $ 38,171.91 $ ===11=,6=5=3=.9==6 The notes to the general purpose financial statements are an integral part of this statement. -2- EXHIBIT "A" FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND $ 1,990.11 ACCOUNT GROUPS GENERAL GENERAL FIXED LONG-TERM ASSETS DEBT TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30, 1996 $ 47,771.78 $ 35,120.35 4,044.20 2,868.57 $ 85,000.00 853,258.00 330,781.00 0.00 85,000.00 853,258.00 330,781.00 0.00 85,000.00 853,258.00 329,516.92 0.00 $ 14,322.06 14,322.06 15,573.09 $ 1,990.11 $ 1,269,039.00 $ 14,322.06 $ 1,335,177.04 $ 1,321,336.93 $ $ _ _1...;..-4....:.;,3;;.;;;2~2.;..;;.06.;;.. $ 14,322.06 $ 20,265.27 $ 7,754.10 14,322.06 42,341.43 $ 16,290.28 149.75 15,573.09 32"':"..;...01_3_.1_2 $ 1,269,039.00 $ 1,760.00 230.11 $ 1,990.11 $ 1,269,039.00 $ 1,269,039.00 $ 1,267,774.92 6,219.10 1,760.00 3,490.77 1,760.00 15,817.51 16,298.12 $ 1,292,835.61 $ 1,289,323.81 $ 1,990.11 $ 1,269,039.00 $ 14,322.06 $ 1,335,177.04 $ 1,321,336.93 -3- OHOOPEE REGIONAL LIBRARY EXHIBIT "B" COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1997 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Program Services Technical Services Circulation Administration Maintenance and Operations Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 GENERAL FUND SPECIAL REVENUE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 1997 JUNE 30, 1996 $ 237,325.17 $ 178,938.49 $ 416,263.66 $ 6,428.16 $ 15,000.00 243,753.33 $ 15,000.00 178,938.49 238,057,93 15,000.00 174,269.36 21,428.16 $ 437,691.82 $ 427,327.29 $ 213,520.22 $ 34,511.39 17,431.79 147,226.39 4,129.18 $ 416,818.97 $ $ -555.31 $ 16,142.71 9,632.08 $ 9,067.75 223,152.30 $ 34,511.39 17,431.79 156,294.14 4,129.18 216,725.09 32,397.76 23,617.19 149,328.03 3,562.66 18,699.83 $ 435,518.80 $ 425,630.73 2,728.33 $ 2,173.02 $ 1,696.56 3,490.77 19,633.48 17,936.92 FUND BALANCE JUNE 30 $ 6,219.10 $ 21,806.50 $ 19,633.48 The notes to the general purpose financial statements are an integral part of this statement. -4- OHOOPEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1997 EXHIBIT "C" REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Program Services Technical Services Circulation Administration Maintenance and Operations Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Other Sources Other Uses Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1) 1996 Adjustments GENERAL FUND BUDGET ACTUAL $ 243,670.00 $ 237,325.17 117,300.00 178,938.49 $ 360,970.00 $ 416,263.66 $ 161,185.09 $ 213,520.22 37,548.42 34,511.39 24,997.82 17,431.79 134,180.75 147,226.39 3,592.92 4,129.18 $ 361,505.00 $ 416,818.97 $ -535.00 $ -555.31 $ 7,100.00 -6,565.00 $ 535.00 $ 0.00 $ 18,193.95 -135.83 -555.31 16,142.71 SPEC~LREVENUEFUND BUDGET ACTUAL $ 0.00 $ 6.428.16 15,000.00 $ 0.00 $ 21,428.16 $ 0.00 $ 9,632.08 9,067.75 $ 0.00 $ 18,699.83 $ 0.00 $ 2,728.33 $ 0.00 $ 2,728.33 3,504.69 3.490.77 -13.92 FUND BALANCE JUNE 30 1997 $ 18,058.12 $ 15,587.40 $ 3,490.77 $ 6,219.10 The notes to the general purpose financial statements are an integral part of this statement. -5- OHOOPEE REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1997 EXHIBIT"D" OPERATING REVENUES None Recorded OPERATING EXPENSES None Recorded Operating Income NONOPERATING REVENUES Interest Earned Total Income FUND BALANCE JULY 1 FUND BALANCE JUNE 30 OHOOPEE REGIONAL LIBRARY BOOK FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 1997 JUNE 30, 1996 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0,00 $ 0.00 74.70 74.70 76.29 $ 74.70 $ 74.70 $ 76.29 1,915.41 1,915.41 1,839.12 $ 1..,.9...,9..0.....1..._1 $ 1,990.11 $ ====__1..,.9..1.5._.4_1 The notes to the general purpose financial statements are an integral part of this statement. -6- OHOOPEE REGIONAL LIBRARY STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 3D, 1997 EXHIBIT"E" Cash Flows from Operating Activities: None Recorded Cash Flows from Investing Activities: Interest Received Net Increase in Cash Cash and Cash Equivalents - July 1 Cash and Cash Equivalents - June 30 OHOOPEE REGIONAL LIBRARY BOOK FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 3D, 1997 JUNE 3D, 1996 $ 0.00 $ 0,00 $ 0.00 $ 74.70 $ 74.70 $ 76.29 $ 74.70 $ 74.70 $ 76.29 1,915.41 1,915.41 1,839.12 $ 1_,.9.9...0.._.1_1 $ 1,990.11 $ _ _1..,.9_1_5_.4.1.. The notes to the general purpose financial statements are an integral part of this statement. -7- OHOOPEE REGIONAL LIBRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Ohoopee Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. The financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library. The Library Board consists of 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 Library Board is without authority to detennine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. 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 Library nor is there a financial benefit/burden relationship between the two boards as defmed by Governmental Accounting Standards Board. The Ohoopee Regional Library is therefore considered to be a related organization of the Toombs County Library Board. FUND ACCOUNTING The Library uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. The general purpose financial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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: - 8- OHOOPEE REGIONAL LIBRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources 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: NONEXPENDABLETRUSTFUND Ohoopee Regional Library Book 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 of library books. ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes land, buildings, equipment and inexhaustible collections and books. 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 fmancial 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 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 fmanced from available spendable resources, are reported in the General Long-Term Debt Account Group. Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. -9- OHOOPEE REGIONAL LIBRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. BUDGET The 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. The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from - 10- OHOOPEE REGIONAL LIBRARY EXHffiIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES infonnation 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. GENERAL FIXED ASSETS General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value as of the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of nonnal maintenance and repairs that do not add to the value of the assets or materially extend the useful lives of the assets is not capitalized. Infrastructure assets are not capitalized by the Library. The values of inexhaustible collections and books at the Library are not readily determinable, therefore, the Library has not capitalized them. During fiscal year 1997 the Library completed a comprehensive inventory of its general fixed assets for inclusion in the general purpose financial statements. 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 type of interfund transactions: Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/ expenses in the fund that is reimbursed. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial position, results of operations or cash flows in confonnity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to confonn to the current year classifications. - 11 - OHOOPEE REGIONAL LIBRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of anyone of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds 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, 1997, the bank balances were $52,528.81. The bank balances were entirely covered by Federal depository insurance. - 12- OHOOPEE REGIONAL LmRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Note 3: GENERAL FIXED ASSETS A summary of changes in the General Fixed Assets Account Group during the fiscal year are as follows: Balance July 1, 1996 Retroactive Restatement of Prior Year Balances Balance July 1, 1996 Restated Additions Balance June 30, 1997 Land Buildings Equipment Total $ 0.00 $ 0.00 $ 0.00 $ 0.00 85,000.00 853,258.00 329,516.92 1.267,774.92 $ 85,000.00 $ 853,258.00 $ 329,516.92 $ 1,267,774.92 1.264.08 1.264.08 S 8500000 $ 85325800 $ 330781 00 $ 1 26903900 Note 4: RISK MANAGEMENT The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation. The Library has obtained commercial insurance for risk of loss associated with torts, assets and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. The Library has elected to self-insure for all losses related to natural disaster. In addition, the Library has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years. The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years. The Library has purchased a surety bond to provide additional insurance coverage as follows: Position Covered Amount All Employees $ 10,000.00 - 13 - OHOOPEE REGIONAL LffiRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Note 5: GENERAL LONG-TERM DEBT The changes in General Long-Tenn Debt during the fiscal year ended June 30, 1997, were as follows: Compensated Absences Balance July 1, 1996 $ 15,573.09 Additions Leave Earned and Utilized (Net) -1,251.03 Balance June 30, 1997 $ 14.322.06 Note 6: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant tenns. The Library believes that such disallowances, if any, will be immaterial to its overall financial position. Note 7: 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 of 200 and 160 hours, respectively. Upon tennination of employment, employees are paid at their current rate of pay for all unused personal leave up to the maximum accumulation. See Note 1 Compensated Absences Note 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. - 14- OHOOPEE REGIONAL LIBRARY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Note 8: RETIREMENT PLANS TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81 % and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 1997 1996 1995 100% 100% 100% $ 26,340.65 $ 25,070.80 $ 23,791.35 - 15 - OHOOPEE REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1997 EXHIBIT"G" ASSETS Cash and Cash Equivalents LOTTERY PROGRAM FEDERAL PROGRAM TOTALS JUNE 30, 1997 JUNE 30, 1996 $ 3,645.03 $ 8,008.93 $ 11 ,653,96 $ ====..........4.=7,_2.2.,_09== LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable $ Expired Grant Balances Payable Total Liabilities $ FUND EQUITY Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated $ Total Fund Equity $ 3,523.19 $ 121.84 3,645.03 $ $ 0.00 0.00 $ 1,789,83 $ 1,789.83 $ 5,313,02 $ 121.84 5,434.86 $ 1,217.40 13,92 1,231.32 6,219,10 $ 0.00 6,219.10 $ 6,219.10 $ 0.00 6,219.10 $ 3,490.77 0.00 3,490,77 Total Liabilities and Fund Equity $ 3,645.03 $ 8,008.93 $ 11,653,96 $ ==-_ _4..,7._2_2,_09== See notes to the general purpose financial statements. -16 - OHOOPEE REGIONAL LIBRARY EXHIBIT "H" COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1997 REVENUES State Funds Federal Funds Total Revenues EXPENDITURES Current Program Services Administration Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 FUND BALANCE JUNE 30 LOITERY PROGRAM FEDERAL PROGRAM TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996 $ 6.428.16 $ $ 15.000.00 6,428.16 $ 15.000.00 9.986,08 15,000,00 $ 6,428,16 $ 15,000.00 $ 21,428.16 $ 24.986.08 $ $ 6,428.16 $ 6,428.16 $ $ 0.00 $ 0.00 9.632,08 $ 2,639.59 12,271.67 $ 2,728,33 $ 3.490.77 9.632,08 $ 9.067.75 18.699.83 $ 2.728.33 $ 3,490,77 8,506,27 12,989,04 21,495.31 3.490.77 0.00 $ -=-======0...0...=0 $ 6,219.10 $ 6,219.10 $ ==-_..3.....4...9..0.....7..7_ See notes to the general purpose financial statements. - 17- OHOOPEE REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997 SCHEDULE "1" AGENCY/FUNDING GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operation Lottery Program Assistive Technology GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 174,679,17 33,623,00 29,023,00 ------$ $ 174,679.17 33,623.00 29,023.00 6,428.16 6,428.16 $ 237,325.17 $ 6,428.16 $ 243,753.33 See notes to the general purpose financial statements. - 18- OHOOPEE REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 1997 AGENCY/FUNDING GRANT Education, U, S. Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services SCHEDULE "2" GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND $ ===========15..,.0.0._0.,0..0. See notes to the general purpose financial statements. -19- EXPENDITURES Administration Supplies Equipment OHOOPEE REGIONAL LIBRARY SCHEDULE OF EXPENDITURES LOTTERY PROGRAM YEAR ENDED JUNE 30. 1997 SCHEDULE "3" ASSISTIVE TECHNOLOGY $ 2,928.16 3,500.00 $ 6,428.16 See notes to the general purpose financial statements. - 20- OHOOPEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1997 SCHEDULE "4" PERSONNEL Braddy, Collins, Dickerson, Ervin, Fennell, Forsyth, Garcia, Gore, Gres, Hartz, Jin, Medlock, Moxley, Nelms, Peeler, Poole, Sandford, Seago, Shoemaker, Soderberg, Thomas, Thompson, Trull, Velcoff, Walker, Wilson, Ruth S. Hilda E. Jeffrey L. Barbara J. Debra Karen E. Betty J. Patricia T. Dusty S. Emilie K. Guojia D. Karen Betty W. Margaret L. Dana L. AprilA. India K. Cindy M. Elizabeth D. Patricia J. Wayne L. Sal/yJ. Melba F. Nancy I. WillieB. Patty R. Total Cash Basis Accruals June 30, 1996 June 30, 1997 POSITION SALARIES Branch Clerk $ Branch Manager Page Branch Clerk Branch Clerk Technical Services Librarian Custodian Branch Manager Director Branch Manager Technical Services Librarian Branch Clerk Administrative Assistant Substitute Branch Clerk Branch Manager Page Branch Manager Branch Clerk Extension Services Librarian Children's Librarian Page Circulation Supervisor Bookmobile Coordinator Branch Clerk Custodian Branch Clerk 375.00 4,944.00 3,255.16 1,407.50 3,787.85 30,797.60 $ 2,657.43 12,699.04 49,182.00 11,481.60 101.09 229.50 13,953.60 380.38 8,063.57 1,070.85 12,181.44 2,625.38 33,653.80 31,544.28 368.87 12,854.40 12,542.40 1,682.50 552.42 5,203.91 $ 257,595.57 $ TRAVEL 911.46 743.10 25.00 51.25 20.00 1,199.00 339.43 90.00 36.25 3,415.49 -161.50 730.51 $ 257,595.57 $ ====3,=98=4.5=0 See notes to the general purpose financial statements. - 21 - SECTION II FINDINGS AND QUESTIONED COSTS OHOOPEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997 PRIOR YEAR AUDIT FOLLOW-UPIRESOLUTION Inadequate Separation of Duties Finding Resolved Finding Control Number 7932-93-01 The audit report for the year ended June 30, 1996, stated that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, the Library implemented procedures to provide for improved separation of employee duties. AUDIT FOLLOW-UPIRESOLUTION Failure to Maintain General Fixed Assets Account Group Finding Resolved Finding Control Number 7932-93-02 The audit report for the year ended June 30, 1996, 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, the Library established a General Fixed Assets Account Group within the formal accounting records. AUDIT FOLLOW-UPIRESOLUTION Excessive Cash Balances Further Action Not Warranted Finding Control Number 7932-94-01 The audit report for the year ended June 30, 1996, stated that a review of cash management procedures for the Library Services and Construction Act - Title I Program (CFDA 84.034) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures and Estimated Requirements for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. Further action concerning the prior year fmding is not warranted by the Library. However, procedures should be implemented to minimize the time elapsing between the transfer of funds from the State of Georgia and disbursement of such funds by the Library.