Ohoopee Regional Library, Vidalia, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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OHOOPEE REGIONAL LIBRARY -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDffiONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

2

FEDERAL

3

LOCAL

4 SCHEDULE OF SALARIES AND TRAVEL

Page
2 4 5 6 7 9
18 19 20 21

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

SECTION! .. FINANCIAL

Russi,:u. W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W., Suite 214 Atlanta, Georgia 30334-8400
July 11, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
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, 2001, as listed in the table ofcontents. These generalpurpose 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 auditing standards generally accepted in the United States of America. 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 ofthe Ohoopee Regional Library as ofJune 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

2001ARL-40

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 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Ohoopee Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
r1),..,,JD lll4~
~ssell W. Hinton State Auditor
RWH:gp 2001ARL-40

OHOOPEE REGIONAL LIBRARY

--------- ------
OHOOPEE REGlONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 2001

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

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE NON EXPENDABLE TRUST FUND

$

66,121.61 $

3,563.29 $

1,232 05

7,542.13

1,04492

17,14918

Total Assets

$

90,812 92 $

3,563 29 $-=====-=2=2=76=97=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balances Payable Deferred Revenue Compensated Absences
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For Endowment Corpus
Unreserved Undes1gnated
Total Fund Equity
Total L1abihbes and Fund Equity

$

4,456 60 $

1,345.21

115 78

2,218 08

$

4 572 38 $

3,563 29

$

86 240 54 $

$

86,240 54 $

$ 000 0 00 $

1,760 00 516.97
2 276 97

$

90,81292 $

3,563 29 $ =======-2.,2=7=6.-=97=

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

EXHIBIT"A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

{Memorandum Onl~}

JUNE 30, 2001

JUNE 30, 2000

$

70,916.95 $

94,362.75

8,587 05

8,104 78

17,14918

22,411.90

$

85,000 00

853,258.00

332,882 00

85,000.00 853,258.00 332,882.00

85,000 00 853,258.00 332,882 00

$

17,271.39

17 271 39

24,162 07

$ 1,271,14000 $

17 271 39 $ 1,385,064.57 $ 1,420,181 50

$

5,801.81

115 78 $

12 79

2,218.08

$

1727139

17,271.39

24,162 07

$

17,271.39 $

25,407.06 $

24,174 86

$ 1,271,140.00 $ 1,271 140 00

$ 1,271,140 00 $ 1,271,140 00

1,760 00

1,760 00

86 757 51

123,106 64

$ 1,359,657 51 $ 1,396,006 64

$ 1271,14000 $

s s 11.211 39

1,385,064 51

1i420,181 50

-3-

OHOOPEE REGIONAL LIBRARY

_

COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30. 2001

EXHIBIT "B"

REVENUES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

(Memorandum Onl}'.}

YEAR ENDED

JUNE 301 2001

JUNE 301 2000

State Funds Federal Funds Local Funds Other Funds

$

311,556.01

$

$ 6,755.54

177,882 94

41,190.75

311,556 01 $ 6,755 54
177,882 94 41190.75

293,049.11 9,950 00
166,092 77 96,766.13

Total Revenues EXPENDITURES

$

530,629 70 $ 6,755 54 $

537,385.24 $

565,858 01

Current Public Services Technical Services Support Services Maintenance and Operations

$

279,376 07 $ 5,293.19 $

59,013 12

197,601-56

1,462.35

31,039.97

284,669 26 $ 59,013 12
199,063.91 31,039 97

263,961 75 55,481.82
134,269.80 28 174 41

Total Expenditures

$

Excess of Revenues over (under) Expenditures $

FUND BALANCE JULY 1

567,030 72 $ -36,401.02 $ 122,641 56

6,755 54 $ 0 00 $ 0 00

573,786 26 $ -36,401 .02 $ 122,641 56

481,887.78 83,970.23 38,671 33

FUND BALANCE JUNE 30

$

86,240 54 $

0 00 $

86,240 54 $ ===12=2=,64=-=1=.5=6

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. 2001

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 2000

GENERAL FUND

BUDGET

ACTUAL

$ 293,984 10 $ 311,556 01

113,600.00 16,350 00

177,882 94 41 190 75

$ 423,934.10 $ 530,629 70

$ 215,295 78 $ 279,376 07

55,488 73

59,013.12

125,276 43

197,601 56

23,409 44

31,039 97

$ 419,470 38 $ 567,030 72

$ 4,463.72 $ -36,401.02

0.00 ,122,641.56

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0 00 $

6,755 54

$

0.00 $

6 755 54

$

000 $

5,293 19

1,462.35

$

0 00 $ 6,755 54

$

0 00 $

0 00

0 00

0 00

FUND BALANCE JUNE 30. 2001

$

4 463 72 $ 86,240 54

$

0 00 $====0=0=0

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, 2001

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Library Books and Matenals Operating Income
NONOPERATING REVENUES Interest Earned Total Income
FUND ~ALANCE JUL):'. 1
FUND BALANCE JUNE 30

OHOOPEE REGIONAL LIBRARY BOOK FUND

TOTALS (Memorandum Onl:z:}
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$

000 $

000 $

0.00

$

000 $

000 $

000

$

0.00 $

000 $

000

51 89

51 89

151 43

$

51.89 $

51 89 $

151 43

2,225.08

2,225 08

2,07365

$

2,276 97 $

2 276 97 $===2=,2=2=5=.0==8

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, 2001

EXHIBIT"E"

Cash Flows from Operabng Acttvit1es Cash Paid for Library Books and Matenals
Cash Flows from Investing Activities. Cash Paid for Purchase of Investments Cash Received from the Sale of Investments Interest Received on Investments
Net lnaease 1n Cash
Cash and Cash Equivalents - July 1

OHOOPEE REGIONAL LIBRARY BOOK FUND

TOTALS

{Memorandum Onl:r:l YEAR ENDED

JUNE 30, 2001

JUNE 301 2000

$

000 $

0 00 $

000

$

-1,044 92 $

993.03

51 89

$

0.00 $

1,232 05

-1,044 92 $ 99303 51 89
0.00 $
123205

-993.03 948.34 151 43
106 74
1 125.31

Cash and Cash Equivalents - June 30

$

1,232.05 $

1 232 05 $====1;,;;,2=3=-2_0,;;;.5

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

OHOOPEE REGIONAL LIBRARY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHIBIT "F"

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 11 members; 7 members appointed by Toombs County Library Board, 2 members appointed by Montgomery County Library Board and 2 members appointed by Tattnall County Library Board. The Library Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances oflocal 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 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 defined 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 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 of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and account groups presented in this report are as follows:

-9-

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists ofproceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
FIDUCIARY FUND T'PE - 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 u~d 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 and buildings.
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for compensated absences.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
- 10 -

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust fund. Under the accrual basis ofaccounting, 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 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 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 Board of Regents of the University System of Georgia 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.

- 11 -

OHOOPEE REGIONAL LIBRARY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand and demand deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating 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 of return 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 of the 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
- 12 -

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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 ofthe 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 ofthe assets is not capitalized. The values of inexhaustible collections and books at the Library are not readily determinable, therefore, the Library has not capitalized them.
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 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 of this data.

- 13 -

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

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 of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates 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 ofdevelopment authorities created by the laws ofthe 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 or 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, 2001, the bank balances were $107,746.94. The amounts ofthe total bank balances are classified into three categories of credit risk:
- 14 -

OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 l

Note 2: DEPOSITS

Category 1 - Cash that is insured (e.g., Federal depository insurance) ~r collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

The Library's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 107,594.51

2

152.43

3

0.00

Total

$ 107.746,94

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, 2000 Additions Deductions Balance June 30, 200 l

Land

Buildings Equipment

Total

$ 85,000.00 $ 853,258.00 $ 332,882.00 $1,271,140.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

$ 85,000.00 $ 853,258.00 $ 332,882,Q_O $ 1,271,140.00

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.

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.

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

OHOOPEE REGIONAL LIBRARY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHIBIT "F"

Note 4: RISK MANAGEMENT

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

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount 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

$ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

Compensated Absences

Balance July 1, 2000

$ 24,162.07

Deductions Annual Leave Earned and Utilized (Net)

6.890.68

Balance June 30, 2001

$ 17,271.39

Note 6: ACCUMULATED EMPLOYEES' LEAVE

The Library's professional and nonprofessional employees working at least 10 hours per week earn vacation leave according to their regular work week schedule ranging from 3 to 13 hours per month. Professionals and nonprofessionals may accrue balances of 160 and 120 hours, respectively. After five years ofemployment, professionals and nonprofessionals may accrue an additional 40 hours of incentive leave to a maximum accumulation of200 and 160 hours, i::espectively. Upon termination ofemployment, employees are paid at their current rate ofpay for all unused personal leave up to the maximum accumulation. See Note 1 - Compensated Absences

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OHOOPEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer 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 of the Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 32,137.16 $ 30,506.50 $ 30,411.07

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- - - - - - - - - ----- --- -
OHOOPEE REGIONAL LIBRARY sc~HEDULE OF. STATE REVENUE
YEAR END.~D.'JUNE 30, 2001
AGENCY/FUNDING GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Materials Maintenance and Operations

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

242,409.92

3,000.00

36,434.20

29 711.89

$ ======-3=11==55=6.=01=

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2001
AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$==-====6=,7=5=5=.54_,

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30. 2001
LOCAL SOURCES City Governments Lyons Glennville Vidalia County Government Board of Commissioners Toombs Public Llbranes Glennville City Public Library (Tattnall County) Montgomery County Public Library Tattnall County Public Library

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

3,999.96

1,508.30

63,499.98

46,498.35
25,516.30 12,658.21 24 201.84

$ -=====--====1=77='=88=2=9.4===

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

OHOOPEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

NAME
BUCKBEE, DAVIS, DOUGHERTY, ELDER, ERVIN, FENNELL, GARCIA, GRES, HARDEN, HARTZ, HIGDON, HOLLAND, JIN, JONES, MOXLEY, NIMMONS, PEELER, SANDFORD, SHOEMAKER, SMITH, THOMPSON, THOMPSON, TRULL, VELCOFF, WILSON,

BRENDAG MITZIES CYNTHIAM HEIDI BARBARAJ DEBRA BETTY J DUSTY MONICAK EMILIE K ALDAW DONNELL GUOJIA WILLIAM M BETTYW NANCY J DANAL INDIAK ELIZABETH D TANEKAM CAROLYN M SALLY J MELBA F NANCY! PATTYR

Totals per Report

TITLE CATEGORY
BRANCH CLERK ADMINISTRATIVE CLERK CIRCULATION CLERK PAGE SUBSTITUTE BRANCH CLERK BRANCH MANAGER CUSTODIAN DIRECTOR SUBSTITUTE BRANCH CLERK BRANCH MANAGER SUBSTITUTE BRANCH CLERK ADMINISTRATIVE CLERK TECHNICAL SERVICES LIBRARIAN SUBSTITUTE BRANCH CLERK ADMINISTRATIVE ASSISTANT SUBSTITUTE BRANCH CLERK PUBLIC SERVICES LIBRARIAN BRANCH MANAGER EXTENSION SERVICES LIBRARIAN BRANCH CLERK BRANCH MANAGER CIRCULATION SUPERVISOR BOOKMOBILE COORDINATOR BRANCH CLERK BRANCH MANAGER

SALARIES

TRAVEL

$

2,991.73

36887

4,52540

2,085 02

899.00

8,142.75

3,565 67

58,691.80 $ 2,321.29

924.00

12,164 76

2,158 60

2240

1,334.25

4340

46,920 14

334.24

169 94

14,913 60

109.34

2,067.21

43,592 36

1,434.35

13,855 41

109 20

46,920 14

1,991.62

5,055 66

5,043.50

14.00

13,561 68

13,445 47

557 36

1,170 35

12,855.09

$ 317,422 40 $ ===-====6=9=, 37==-.2-=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. 2001

CURRENT YEAR

CASH AND CASH EQUNALENT REVENUES/RECENABLES/RECEIPTS Inadequate Separation ofDuties Finding Control Number: FS-7932-01-01

Our examination of the internal accounting control procedures revealed that the Library did not provide for adequate separation ofduties in the performance of the following accounting functions and related procedures:

1) Cash custody and receipting functions were not separated from general ledger functions.

2) Deposit preparation functions were not separated from cash receipting functions.

These conditions were the result ofmanagement's failure to ensure that procedures are in place and

operational to adequately safeguard assets and/or promote efficiency and accuracy in key accounting

functions. Management should review the accounting procedures and implement procedures to

enhance segregation of duties relative to the above contr<?l categories and to strengthen the internal

control over the accounting functions.



GENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-7932-01-02

Our examination and testing for the year under review revealed the following deficiencies in accounting procedures:

1) Numerous cash receipts and manually issued checks were not recorded on the accounting records for ninety or more days after the transaction date.

2) Monthly cash reconciliations were not performed in a timely manner. Eleven months of cash reconciliations were performed in June, 2001.

3) Testing of thirty-two expenditure vouchers revealed that two vouchers were paid from credit card statements without supporting documentation, three travel reimbursement reports were incomplete and fifteen vouchers did not include documentation ofreceipt of goods.

4) Fiscal year-end closing of the accounting records was not performed until eleven months after the fiscal year ended.

- 1-

OHOOPEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
CURRENT YEAR GENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-7932-01-02 These deficiencies occurred because of management's failure to have adequate accounting policies and procedures in place and to have an understanding of the computerized accounting system. Management should review current accounting policies and procedures, identify weaknesses and implement policies to ensure that accounting records are monitored, transactions are recorded in a timely manner, voucher payments are adequately documented and bank reconciliations and fiscal year-end general ledger closings are performed in a timely manner. In addition, management should ensure that accounting personnel have a complete understanding of the computerized accounting system. GENERAL FIXED ASSETS Failure to Maintain Accurate Subsidiary Records Finding Control Number: FS-7932-01-03 The Library failed to maintain accurate subsidiary records for equipment inventory. The subsidiary records presented for audit failed to include current year and prior years additions and deletions. The inaccurate subsidiary equipment inventory records were the result ofmanagement's failure to record additions and deletions to the original subsidiary records. The Library should maintain accurate records of the additions and deletions for the General Fixed Assets Account Group.
-2-