Audit report, Ohoopee Regional Library, Vidalia, Georgia, year ended June 30, 1998

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AUDIT REPORT OHOOPEE REGIONAL LmRARY
VIDALIA, GEORGIA YEAR ENDED JUNE 30, 1998
#,,",f....._ _ ....'.................................._ _.............. /

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

OHOOPEE REGIONAL LmRARY - TABLE OF CONTENTS -

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 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

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF REQUlRED SUPPLEMENTARY INFORMATION

16

SCHEDULE OF REVENUE

2

STATE

17

3

FEDERAL

18

4

LOCAL

19

5 SCHEDULE OF SALARIES AND TRAVEL

20

FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
August 12, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Technical and Adult Education
and Director and Members ofthe 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, 1998, 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, 1998, 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.
The year 2000 supplementary information on Schedule "1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries ofmanagement regarding the methods ofmeasurement and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Ohoopee

98ARL-40

Regional Library is or will become year 2000 compliant, that the Library's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Ohoopee Regional Library does business are or will become year 2000 compliant.
Our audit was perfonned for the purpose of fonning an opinion on the general purpose financial statements of the Ohoopee Regional Library taken as a whole. The accompanying financial schedules (Schedules 2 through 5), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy of this report has been filed as a pennanent 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,
~",{lw.~ Russell W. Hinton State Auditor
RWH:jb 98ARL-40

OHOOPEE REGIONAL LmRARY

OHOOPEE REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1998

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
General Fixed Assets Land BUildings Equipment
Amount to be Provided in Future Years For Payment of Compensated Absences

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

59,763.65 $

0.00

6,466.39

10,975.75

Total Assets

$

77,205.79 $=====0.:=0=0

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

$

28,635.33

$

28,635.33

$

48,570.46 $

$

48,570.46 $

0.00 0.00

Total Liabilities and Fund Equity

$

77,205.79 $======0=,0:=:0

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

EXHIBIT"A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

$

1,087.89

902.22

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30,1998 JUNE 30,1997

$

60,851.54 $

47,771.78

7,368.61

10,975.75

4,044.20

$

85,000.00

853,258.00

323,461.00

_ _ _ _ _ _ $ _ _.:.;18:.r.;,8:;.:0;.;:2;.;:;.3.;.6

85,000.00 853,258.00 323,461.00
18,802.36

85,000.00 853,258.00 330,781.00
14,322.06

$

1,990.11 $

1,261,719.00 $

18,802.36 $ 1,359,717.26 $ 1,335,177.04

$

$ _ _1.;.:8:.r.:,8;.:;0=:2.;.=.36.=.,

$

18,802.36 $

28,635.33 $ 18,802.36

20,265.27 7,754.10
14,322.06

47,437.69 $ _ _...:4=.l2,~34.:..:1..;..;.4:.=..3

$

1,261,719.00

$

1,760.00

230.11

$

1,990.11 $

1,261,719.00

$ 1,261,719.00 $ 1,269,039.00

1,760.00

6,219.10 1,760.00

48,800.57

15,817.51

$ 1,312,279.57 $ 1,292,835.61

$

1,990.11 $

1,261,719.00 $

18,802.36 $ 1,359,717.26 $ 1,335,177.04

-3-

OHOOPEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30.1998

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,1998

JUNE 30,1997

REVENUES

State Funds Federal Funds Local Funds Other Funds

$

320,053.70

$

162,920.20

22.015.82

$
7,100.00

320,053.70 $
7,100.00 162,920.20 22.015.82

243,753.33 15,000.00
178,938.49

Total Revenues

$

504,989.72 $

7.100.00 $

512,089.72 $

437,691.82

EXPENDITURES

Current Program S~rvices Technical Services Circulation Administration Maintenance and Operations

$

263,874.45 $

46,563.02

18,423.16

138,913.25

4,232.78

3,351.42 $
9,967.68

267,225.87 $
56,530.70 18,423.16 138,913.25 4,232.78

223,152.30 34,511.39 17,431.79
156,294.14 4,129.18

Total Expenditures

$

472,006.66 $

13,319.10 $

485,325.76 $

435,518.80

Excess of Revenues over (under) Expenditures $

32,983.06 $

-6,219.10 $

26,763.96 $

2,173.02

FUND BALANCE JULY 1

15,587.40

6,219.10

21,806.50

19,633.48

FUND BALANCE JUNE 30

$

48,570.46 $

0.00 $

48,570.46 $

2. .1.,.8.0..6...5...0..

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 30,1998

EXHIBIT"C"

REVENUES
State Funds Federal Funds Local 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, 1997
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 255,867,71 $
103,500,00 17,300,00
$ 376,667,71 $

320,053,70
162,920,20 22,015,82
504,989,72

$ 160,827,22 $ 46,588,55 24,997.82 141,196.20 3,592.92

263,874,45 46,563.02 18,423.16 138,913.25 4,232,78

$ 377,202.71 $ 472,006.66

$

-535.00 $ 32,983,06

$

7,100.00

-6,565.00

$

535,00

$

0,00 $

25,209,77

-7,615,02

32,983,06 15,587.40

FUND BALANCE JUNE 30, 1998

$ 17,594,75 $ 48,570,46

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0,00 $

7,100,00

$

0,00 $

7,100,00

$

0,00 $

3,351,42

9,967.68

$

0,00 $ 13,319.10

$

0.00 $ -6,219.10

$

0,00 $ -6,219,10

6,340,94

6,219.10

-121,84

$

6,219.10 $

0;,;;;,0.0.

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

EXHIBIT "0"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 1998

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Library Books and Materials Operating (Loss)
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1

OHOOPEE REGIONAL LIBRARY BOOK
FUND

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 30,1998 JUNE 30, 1997

$

0,00 $

0,00 $

0,00

$

79,33 $

79,33 $

0,00

$

-79,33 $

-79,33 $

0,00

79.33

79,33

74,70

$

0,00 $

0,00 $

74,70

1,990.11

1,990.11

1,915,41

FUND BALANCE JUNE 30

$

1,990,11 $

1,990,11 $ ======1=,9=9=0,=11=

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 30,1998

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Library Books
Cash Flows from Investing Activities: Cash Paid for Purchase of Investments Interest Received on Investments
Net Cash Provided (Used) by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

OHOOPEE REGIONAL LIBRARY BOOK
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1998 JUNE 3D, 1997

$

-79.33 $

-79.33 $

0.00

$

-902.22 $

-902.22

79.33

79.33 $

74.70

$

-822.89 $

-822.89 $

74.70

$

-902.22 $

-902.22 $

74.70

1.990.11

1,990.11

1.915.41

Cash and Cash Equivalents - June 30

$

1.087.89 $

1.087.89 $ _ _...1._.9.9...0..._11_

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

OHOOPEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note I: 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. With the exception of the departures from generally accepted accounting principles disclosed in these notes, the financial statements ofthe Library have been prepared in confonnity 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 11 members; 7 members appointed by the Toombs County Library Board, 2 members appointed by the Montgomery County Library Board and 2 members appointed by the Tattnall County Library Board. The Library Board is without authority to detennine the amount ofits 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 and other 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 ofthe 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 defined by the 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. 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, 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 groups 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:
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OHOOPEE REGIONAL LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 3D. 1998

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 ofproceeds received from 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 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.
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 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 (Le., 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.
All 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.
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OHOOPEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARy OF SIGNIFICANT ACCQUNTlNG 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 detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
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 ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget 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 ofthis 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 ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year, All unexpended budget authority lapses at fiscal year end.
~:
CASH AND CASH EQUIVALENTS
./
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Participating
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OHOOPEE REGIONAL LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions ofthe State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. 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 normal 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.
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OHOOPEE REGIONAL LffiRARY

EXHIBIT "F"

/ NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
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 of interfund transactions:
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.
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 ofoperations 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 ofmoney 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 ofsecurities pledged shall be equal to not less than 110 percent ofthe 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 anyone of or any combination ofthe following:
(1) Surety bond signed by a surety company dilly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

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QHOOPEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENLRAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1998

Note 2: DEPOSITS

(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 ofthe State of Georgia,

(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $101,169.38. The bank balances were entirely covered by Federal depository insurance or by collateral held by the Library or the Library's agent in the Library's name.

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, 1997 Additions Deductions Balance June 30,1998

Land

Buildings

Equipment

Total

$ 85,000.00 $ 853,258.00 $ 330,781.00 $ 1,269,039.00

9,356.00

9,356.00

16.676.00

16.676.00

85,000.00 $ 853,258.00 $ 323.461.00 $ 1.261.719.00

Note 4: RISK MANAGEMENT

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

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OHOOPEE REGIONAL LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 4: RISK MANAGEMENT

The Library has obtained commercial insurance for risk ofloss associated with torts, assets, 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 ofthe 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 ofthat 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

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:

Compensated Absences

Balance July 1, 1997

$ 14,322.06

Additions Leave Earned and Utilized (Net)

4.480.30

Balance June 30, 1998

$ 18,802.36

Note 6: CONTINGENT LIABILITIES

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

- 14-

QHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

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 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. 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 ofGeorgia (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.

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 ofTrustees 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

1998 1997 1996

100% 100% 100%

$ 29,106.43 $ 26,340.65 $ 25,070.80

- 15 -

OHOOPEE REGIONAL LffiRARY

SCHEDULE "1"

SCHEDULE OF REQUIRED suppLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDEP JUNE 30. 1998

At June 30, 1998, the Ohoopee Regional Library had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is of primary concern for the Library's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue.
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
ValidationfTesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Library to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30,1998, the financial accounting system was detennined to be at the Awareness Stage.
The Library's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been detennined to be critical to the Library's ability to successfully conduct operations. As ofJune 30,1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as ofDecember 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all libraries currently utilizing the GENESIS accounting software.

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1998
AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Regular Governor's Reading Incentive Program Maintenance and Operations

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

189,761,70

5,290,00

33,853,00 61,896.00 29,253.00

$

320,053.70

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1998
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 "3"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ =-=======7=1,0=0=.0:=0

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30.1998
LOCAL SOURCES City Governments , Lyons Vidalia County Government Board of Commissioners Toombs Public Libraries Glennville City Public Library (Tattnall County) Montgomery County Public Library Tattnall County Public Library

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

3,999.96

58,500.00

42,499.92
19,824.07 26,092.95 12,003.30

$

162,920.20

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30.1998

SCHEDULE "5"

NAME
Alexander, Braddy, Collins, Dalby, . Ervin, Fennell, Forsyth, Freeman, Garcia, Gres, Hartz, Holland, Jin, Moxley, Peeler, Pulliam, Sandford, Seago, Shoemaker, Suits, Sweat, Thompson, Trull, Velcoff, Wilson,

Julia B. Ruth S. HiidaE. LuciM. Barbara J. Debra Karen E. Jennifer Betty J. DustyS. Emilie K. Donnell Guojia BettyW.
Dana L.
HelenW.
India K.
CindyM. Elizabeth D. WilliamT. Joyce SallyJ. Melba F. Nancy I.
Patty R.

Accruals June 30,1997 June 30,1998

Totals per Report

TITLE CATEGORY
Substitute Clerk Branch Clerk Branch Manager Branch Manager Branch Clerk Branch Clerk Technical Services Librarian Branch Manager Custodian Director Branch Manager Administrative Clerk Technical Services Librarian Administrative Assistant Branch Manager Branch Clerk Branch Manager Branch Clerk Extension Services Librarian Page Branch Manager Circulation Supervisor Bookmobile Coordinator Branch Clerk Branch Clerk

SALARIES

TRAVEL

$

1,627.40

236.90

1,798.50

5,522.00

517.13

5,868.82

33,625.20 $

745.25

3,315.70

51,880.40

11,514.72

1,988.88

38,212.40

13,953.60

5,384.15

4,319.75

12,403.14

744.91

37,099.80

1,894.59

1,668.73

12,854.40

12,578.58

3,675.01

11,504.63

590.84
2,152.35
256.51 139.25
91.23 1,535.92
15.00 10.00

$

274,934.59 $

4,791.10
~~.~~
-730.51 1,091.82

$

274,934.59 $====5:i::!,=15=:2=.4=1

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

EXHIBIT"A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

$

1,087.89

902.22

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30,1998 JUNE 30,1997

$

60,851.54 $

47,771.78

7,368.61

10,975.75

4,044.20

$

85,000.00

853,258.00

323,461.00

_ _ _ _ _ _ $ _ _.:.;18:.r.;,8:;.:0;.;:2;.;:;.3.;.6

85,000.00 853,258.00 323,461.00
18,802.36

85,000.00 853,258.00 330,781.00
14,322.06

$

1,990.11 $

1,261,719.00 $

18,802.36 $ 1,359,717.26 $ 1,335,177.04

$

$ _ _1.;.:8:.r.:,8;.:;0=:2';.=.36.=.,

$

18,802.36 $

28,635.33 $ 18,802.36

20,265.27 7,754.10
14,322.06

47,437.69 $ _ _...:4=.l2,~34.:..:1..;..;.4:.=..3

$

1,261,719.00

$

1,760.00

230.11

$

1,990.11 $

1,261,719.00

$ 1,261,719.00 $ 1,269,039.00

1,760.00

6,219.10 1,760.00

48,800.57

15,817.51

$ 1,312,279.57 $ 1,292,835.61

$

1,990.11 $

1,261,719.00 $

18,802.36 $ 1,359,717.26 $ 1,335,177.04

-3-

OHOOPEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30.1998

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,1998

JUNE 30,1997

REVENUES

State Funds Federal Funds Local Funds Other Funds

$

320,053.70

$

162,920.20

22.015.82

$
7,100.00

320,053.70 $
7,100.00 162,920.20 22.015.82

243,753.33 15,000.00
178,938.49

Total Revenues

$

504,989.72 $

7.100.00 $

512,089.72 $

437,691.82

EXPENDITURES

Current Program S~rvices Technical Services Circulation Administration Maintenance and Operations

$

263,874.45 $

46,563.02

18,423.16

138,913.25

4,232.78

3,351.42 $
9,967.68

267,225.87 $
56,530.70 18,423.16 138,913.25 4,232.78

223,152.30 34,511.39 17,431.79
156,294.14 4,129.18

Total Expenditures

$

472,006.66 $

13,319.10 $

485,325.76 $

435,518.80

Excess of Revenues over (under) Expenditures $

32,983.06 $

-6,219.10 $

26,763.96 $

2,173.02

FUND BALANCE JULY 1

15,587.40

6,219.10

21,806.50

19,633.48

FUND BALANCE JUNE 30

$

48,570.46 $

0.00 $

48,570.46 $

2. .1.,.8.0..6...5...0..

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 30,1998

EXHIBIT"C"

REVENUES
State Funds Federal Funds Local 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, 1997
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 255,867,71 $
103,500,00 17,300,00
$ 376,667,71 $

320,053,70
162,920,20 22,015,82
504,989,72

$ 160,827,22 $ 263,874,45

46,588,55

46,563.02

24,997.82

18,423.16

141,196.20

138,913.25

3,592.92

4,232,78

$ 377,202.71 $ 472,006.66

$

-535.00 $ 32,983,06

$

7,100.00

-6,565.00

$

535,00

$

0,00 $

25,209,77

-7,615,02

32,983,06 15,587.40

FUND BALANCE JUNE 30, 1998

$ 17,594,75 $ 48,570,46

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0,00 $

7,100,00

$

0,00 $

7,100,00

$

0,00 $

3,351,42

9,967.68

$

0,00 $ 13,319.10

$

0.00 $ -6,219.10

$

0,00 $ -6,219,10

6,340,94

6,219.10

-121,84

$

6,219.10 $

0;,;;;,0.0.

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

OHOOPEE REGIONAL LIBRARY

EXHIBIT "0"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 1998

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Library Books and Materials Operating (Loss)
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1

OHOOPEE REGIONAL LIBRARY BOOK
FUND

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 30,1998 JUNE 30, 1997

$

0,00 $

0,00 $

0,00

$

79,33 $

79,33 $

0,00

$

-79,33 $

-79,33 $

0,00

79.33

79,33

74,70

$

0,00 $

0,00 $

74,70

1,990.11

1,990.11

1,915,41

FUND BALANCE JUNE 30

$

1,990,11 $

1,990,11 $ ========1=,9=9=0=,1=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 30,1998

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Library Books
Cash Flows from Investing Activities: Cash Paid for Purchase of Investments Interest Received on Investments
Net Cash Provided (Used) by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

OHOOPEE REGIONAL LIBRARY BOOK
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1998 JUNE 3D, 1997

$

-79.33 $

-79.33 $

0.00

$

-902.22 $

-902.22

79.33

79.33 $

74.70

$

-822.89 $

-822.89 $

74.70

$

-902.22 $

-902.22 $

74.70

1.990.11

1,990.11

1.915.41

Cash and Cash Equivalents - June 30

$

1.087.89 $

1.087.89 $ _ _...1._.9.9...0..._11_

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

OHOOPEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note I: 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. With the exception of the departures from generally accepted accounting principles disclosed in these notes, the financial statements ofthe Library have been prepared in confonnity 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 11 members; 7 members appointed by the Toombs County Library Board, 2 members appointed by the Montgomery County Library Board and 2 members appointed by the Tattnall County Library Board. The Library Board is without authority to detennine the amount ofits 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 and other 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 ofthe 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 defined by the 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. 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, 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 groups 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 LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 3D. 1998

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 ofproceeds received from 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 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.
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 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 (Le., 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.
All 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 LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARy OF SIGNIFICANT ACCQUNTlNG 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 detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
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 ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget 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 ofthis 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 ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year, All unexpended budget authority lapses at fiscal year end.
~:
CASH AND CASH EQUIVALENTS
./
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Participating
-10 -

OHOOPEE REGIONAL LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions ofthe State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. 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 normal 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.
- 11 -

OHOOPEE REGIONAL LffiRARY

EXHIBIT "F"

/ NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
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 of interfund transactions:
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.
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 ofoperations 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 ofmoney 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 ofsecurities pledged shall be equal to not less than 110 percent ofthe 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 anyone of or any combination ofthe following:
(1) Surety bond signed by a surety company dilly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

- 12-

QHOOPEE REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENLRAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1998

Note 2: DEPOSITS

(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 ofthe State of Georgia,

(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $101,169.38. The bank balances were entirely covered by Federal depository insurance or by collateral held by the Library or the Library's agent in the Library's name.

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, 1997 Additions Deductions Balance June 30,1998

Land

Buildings

Equipment

Total

$ 85,000.00 $ 853,258.00 $ 330,781.00 $ 1,269,039.00

9,356.00

9,356.00

16.676.00

16.676.00

85,000.00 $ 853,258.00 $ 323.461.00 $ 1.261.719.00

Note 4: RISK MANAGEMENT

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

-13 -

OHOOPEE REGIONAL LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 4: RISK MANAGEMENT

The Library has obtained commercial insurance for risk ofloss associated with torts, assets, 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 ofthat 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

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:

Compensated Absences

Balance July 1, 1997

$ 14,322.06

Additions Leave Earned and Utilized (Net)

4.480.30

Balance June 30, 1998

$ 18,802.36

Note 6: CONTINGENT LIABILITIES

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

- 14-

QHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

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 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. 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 ofGeorgia (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.

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 ofTrustees 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

1998 1997 1996

100% 100% 100%

$ 29,106.43 $ 26,340.65 $ 25,070.80

- 15 -

OHOOPEE REGIONAL LffiRARY

SCHEDULE "1"

SCHEDULE OF REQUIRED suppLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDEP JUNE 30. 1998

At June 30, 1998, the Ohoopee Regional Library had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is of primary concern for the Library's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue.
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
ValidationfTesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Library to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30,1998, the financial accounting system was detennined to be at the Awareness Stage.
The Library's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been detennined to be critical to the Library's ability to successfully conduct operations. As ofJune 30,1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as ofDecember 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all libraries currently utilizing the GENESIS accounting software.

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1998
AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Regular Governor's Reading Incentive Program Maintenance and Operations

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

189,761,70

5,290,00

33,853,00 61,896.00 29,253.00

$

320,053.70

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1998
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 "3"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ =-=======7=1,0=0=.0:=0

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30.1998
LOCAL SOURCES City Governments , Lyons Vidalia County Government Board of Commissioners Toombs Public Libraries Glennville City Public Library (Tattnall County) Montgomery County Public Library Tattnall County Public Library

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

3,999.96

58,500.00

42,499.92
19,824.07 26,092.95 12,003.30

$

162,920.20

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30.1998

SCHEDULE "5"

NAME
Alexander, Braddy, Collins, Dalby, Ervin, Fennell, Forsyth, Freeman, Garcia, Gres, Hartz, Holland, Jin, Moxley, Peeler, Pulliam, Sandford, Seago, Shoemaker, Suits, Sweat, Thompson, Trull, Velcoff, Wilson,

Julia B. Ruth S. HiidaE. LuciM. Barbara J. Debra Karen E. Jennifer Betty J. DustyS. Emilie K. Donnell Guojia BettyW. Dana L. HelenW.
India K.
CindyM. Elizabeth D. WilliamT. Joyce SallyJ. Melba F. Nancy I. Patty R.

Accruals June 30,1997 June 30,1998

Totals per Report

TITLE CATEGORY
Substitute Clerk Branch Clerk Branch Manager Branch Manager Branch Clerk Branch Clerk Technical Services Librarian Branch Manager Custodian Director Branch Manager Administrative Clerk Technical Services Librarian Administrative Assistant Branch Manager Branch Clerk Branch Manager Branch Clerk Extension Services Librarian Page Branch Manager Circulation Supervisor Bookmobile Coordinator Branch Clerk Branch Clerk

SALARIES

TRAVEL

$

1,627.40

236.90

1,798.50

5,522.00

517.13

5,868.82

33,625.20 $

745.25

3,315.70

51,880.40

11,514.72

1,988.88

38,212.40

13,953.60

5,384.15

4,319.75

12,403.14

744.91

37,099.80

1,894.59

1,668.73

12,854.40

12,578.58

3,675.01

11,504.63

590.84
2,152.35
256.51 139.25
91.23 1,535.92
15.00 10.00

$

274,934.59 $

4,791.10
~~.~~
-730.51 1,091.82

$

274,934.59 $====5:i::!,=15=:2=.4=1

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