Audit report, Okefenokee Regional Library, Waycross, Georgia, year ended June 30, 1994

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

AUDIT REPORT OKEFENOKEE REGIONAL LIBRARY
WAYCROSS, GEORGIA
YEAR ENDED JUNE 30, 1994

OKEFENOKEE REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN

FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE

K

COMBINING BALANCE SHEET

NONEXPENDABLE TRUST FUNDS

Page
2 3 4 5 6 7
16 17 18 19
20

OKEFENOKEE REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

3 ACCOUNTS RECEIVABLE

SCHEDULE OF REVENUE

4

STATE

5

LOCAL AND OTHER

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

7 MEMBERSHIP OF LIBRARY BOARD

8 SCHEDULEOFSALARIESANDTRAVEL

Page
21 22 23 24 25
26 27
28

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

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 30, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Okefenokee Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) ofthe Okefenokee Regional Library, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility ofthe Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office ofManagement and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:

94ARL-43

* The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements ofthis variance or omission have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Okefenokee Regional Library as ofJune 30, 1994, and the results ofits operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Okefenokee Regional Library taken as a whole. The combining statements (Exhibits G through K) and the financial schedules (Schedules I through 8 which includes the Schedule ofFederal Financial Assistance), as listed in the table ofcontents, are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements ofthe Okefenokee Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24.
Respectfully submitted,
L~
Claude L. Vickers State Auditor
CLV:jy
94ARL-43

OKEFENOKEE REGIONAL LIBRARY -I-

ASSETS
Cash and Cash Equivalents Accounts Receivable Amount to be Provided in Future Years
For Payment of Coq,ensated Absences

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

EXHIBIT "A"

ACCOUNT

GOVERNMENTAL FUND TYPES

FIDUCIARY GROUP

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

SPECIAL CAPITAL ------------- GENERAL

TOTAL

GENERAL REVENUE PROJECTS NONEXPENOABLE LONG-TERM (Memorancbn

FUND

FUND

FUND TRUST FUNDS DEBT

Only)

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

$128,492.00$ 79,482.71 $ 140.00 $ 11,311.97

$ 219,426.68

12,801.89

128.69

12,930.58

$14,960.72 14,960.72

Total Assets

$141,293.89$ 79,482.71 $ 140.00 $ 11,440.66$ 14,960.72$ 247,317.98

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Deferred Revenue Canpensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated
Total Fund Equity

$ 9,481.02$ 1,352.13 78,130.58
$ 9,481.02$ 79,482.71

$ 10,833.15 78,130.58
$14,960.72 14,960.72
$14,960.72$ 103,924.45

$131,812.87$

0.00 $

$ 140.00

8,943.02 2,497.64

$131,812.87 $ 0.00 $ 140.00 $ 11,440.66

$ 8,943.02 134,450.51
$143,393.53

Total Liabilities and Fund Equity $141,293.89$ 79,482.71 $ 140.00 $ 11,440.66$ 14,960.72$. 247,317.98

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

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

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL (Memorandum
Only)

REVENUES

State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES

$ 310,120.29 $ 26,869.42 $ 47,312.00 $ 384,301.71

28,016.26

28,016.26

211,122.03

1,250.00

1,045.08 213,417.11

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

$ 521,242.32 $ 56,135.68 $ 48,357.08 $ 625,735.08
------------- ------------- ------------- -------------

Current Program Services Administration Maintenance and Operations
Capital Outlay
Total Expenditures

$ 65,834.02$ 47,476.81

$ 113,310.83

384,447.37

5,890.24

390,337.61

54,663.63

2,768.63

57,432.26

$ 233,158.70

233,158.70

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

$ 504,945.02$ 56,135.68$ 233,158.70$ 794,239.40

Excess of Revenues over (under) Expenditures $ FUND BALANCE JULY 1

16,297.30$ 491.88

0.00 $ -184,801.62 $ -168,504.32 0.00 184,941.62 185,433.50

Adjustment For Centralization of Affiliated Libraries' Accounts

115,023.69

115,023.69

FUND BALANCE JUNE 30

$ 131,812.87$

0.00 $

140.00 $ 131,952.87

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

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

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

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1993
Adjustment For Centralization of Affiliated Library Accounts

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 384,301.71 $ 462,432.28 $ -78,130.57

28,016.26

28,120.19

-103.93

213,417.11 209,188.42

4,228.69

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

$ 625,735.08 $ 699,740.89 $ -74,005.81
------------- ------------- -------------

$ 113,310.83 $ 195,451.01 $ 82,140.18

390,337.61 395,410.15

5,072.54

57,432.26

59,421.68

1,989.42

233,158.70

48,912.00 -184,246.70

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

$ 794,239.40$ 699,194.84$ -95,044.56
------------- ------------- -------------

$ -168,504.32 $

546.05 $ -169,050.37

185,433.50 300,457.19 -115,023. 69

115,023.69

115,023.69

FUND BALANCE JUNE 30, 1994

$ 131,952.87$ 301,003.24$ -169,050.37

The notes to the general purpose financial statements are an integral part of this statement.
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OKEFENOKEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

OPERATING REVENUES None Recorded
NONOPERATING REVENUES Interest Earned
OPERATING EXPENSES Current Library Books and Materials Operating Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

BUNA T. FAIN MEMORIAL FUND

ENDOWMENT FUNDS

GEORGE UPFOLD GATES STUDENT AWARD TRUST
FUND

WAYCROSSWARE COUNTY
LIBRARY MEMORIAL TRUST FUND

TOTAL (Memorandum
Only)

$

0.00 $

0.00 $

0.00 $

0.00

$

7.56 $

514.73 $

81.66 $

603.95

$

0.00 $

298.56 $

0.00 $

298.56

$

7.56 $

216.17 $

81. 66 $

305.39

589.23

7,309.85

3,236.19

11,135.27

$

596.79 $ 7,526.02 $ 3,317.85$ 11,440.66

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

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

OKEFENOKEE REGIONAL LIBRARY COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 1994

EXHIBIT "E"

BUNA T. FAIN MEMORIAL FUND

ENDOWMENT FUNDS

GEORGE UPFOLD GATES STUDENT AWARD TRUST
FUND

WAYCROSSWARE COUNTY
LIBRARY MEMORIAL TRUST FUND

TOTAL (Memorandum
Only

Cash Flows from Operating Activities: Cash Paid for Library Books and Materials $

0.00 $

-298.56 $

0.00 $

-298.56

Net Cash Provided (Used) by Operating

Activities

$

0.00 $

-298.56 $

0.00 $

-298.56

Cash Flows from Investing Activities:

Interest Received

$

7.56 $

386.04 $

81. 66 $

475.26

Net Increase (Decrease) in Cash

$

7.56 $

87.48 $

81.66 $

176.70

Cash and Cash Equivalents - July 1

$

589.23 $ 7,309.85 $ 3,236.19$ 11,135.27

Cash and Cash Equivalents - June 30

$

596.79 $ 7,397.33$ 3,317.85$ 11,311.97

Reconciliation of Operating Income to Net Cash

Provided (Used) by Operating Activities:

Operating Income (Loss)

$

Cash Flows from Operating Activities

0.00 $ 0.00

0.00 $ -298.56

0.00 $ 0.00

o.oo
-298.56

Net Cash Provided (Used) by Operating Activities

$

0.00 $

-298.56 $

0.00 $

-298.56

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

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

EXIITBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Okefenokee Regional Library operates pursuant to Official Code ofGeorgia 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 ofGeorgia. With the exception ofthe departure from generally accepted accounting principles disclosed in the following paragraphs, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification ofGovernmental Accounting and Financial Reporting Standards, Section 2100, ''Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the Okefenokee Regional Library is determined to be a joint venture.
The Library Board consists offifteen members; three members appointed by Appling County Public Library Board, three members appointed by Alma/Bacon County Public Library Board, three members appointed by Clinch County Public Library Board, three members appointed by Pierce County Public Library Board and three members appointed by Waycross-Ware County Public Library Board. The Board is without authority to determine the amount ofits funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Okefenokee Regional Library is located in Waycross, Georgia, and serves Appling, Bacon, Clinch, Pierce and Ware Counties.
FUND ACCOUNTING
The Library uses funds and an account group 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.

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OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To confotnl to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost ofassets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Librmy's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Librmy except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a Librmy.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and.Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction ofmajor capital facilities.
FIDUCIARY FUND 1YPE - the trust funds used to account for assets held by a government unit in a trustee capacity for individuals, private organizations, other government units and/or other funds. This fund includes:
NONEXPENDABLE TRUST FUNDS Bona T. Fain Memorial 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 to purchase librmy books and materials for the Okefenokee Regional Librmy.
George Upfold Gates Student Award Trust Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarships on an annual basis.
Waycross-Ware County Library Memorial Trust 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 to support, improve and supplement librmy services.

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OKEFENOKEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences not appropriately accounted for and recorded in other fund types.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this .measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable 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 ofeconomic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese 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 of accounting under which:
Revenues are recogniz.ed when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting as required by generally accepted accounting principles is utilized by nonexpendable trust funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

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OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Okefenokee Regional Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure ofthe aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division of Public Library Services, as a part of the Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings accounts and N.O.W.
accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one
or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of 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.
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 ofinterfund transactions:

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OKEFENOKEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent 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 ofany one ofor any combination of the following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe 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 ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

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OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS

JUNE 30, 1994

Note 2: DEPOSITS

(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, 1994, the bank balances were $281,532.96. 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 LONG-TERM DEBT

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

Compensated Absences

Balance July 1, 1993

$

0.00

Retroactive Restatement ofPrior Year Balances

10,279.12

Balance July 1, 1993

Restated

.

$ 10,279.12

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

3,618.44 1,063.16

Balance June 30, 1994

$ 14,960.72

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

Note 4: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of $78,130.58 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. The Georgia Department ofEducation has funding available to the Library in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by the Lottery Program as follows:

Media Center and Library Equipment

$ 78 130,58

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OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 4: SIGNIFICANT COMMITMENTS
The amounts described in this note are not reflected in the general purpose financial statements.
Note 5: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by
grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant tenns. The Library believes that such disallowances, if any, will be
immaterial to its overall financial position.
The Library is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Library operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.
Note 6: ACCUMULATED EMPLOYEES LEAVE
The Library's regular employees earn vacation leave according to their length of service ranging from one and one quarter to one and three quarter days per month with a maximum accumulation of 15 to 21 days. All unused vacation leave up to the maximum accumulation is paid to employees at their current rate ofpay, upon retirement or termination ofemployment at their current pay rate. See Note 1 - Compensated Absences
Note 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the me~ber's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 13 -

OKEFENOKEE REGIONAL LIBRARY

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS

Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is

entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement,

whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had

the member retired on the date of death on either a service retirement allowance or a disability retirement

allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years

of service) and compensation up to the time ofdisability or death.

'

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.

The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $269,510.94; total payroll was $290,517.67.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $47,999.68, of which $31,829.17 was made by the Library and $16,170.51 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) ofcovered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. S ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers ofPERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

Total pension benefit obligation

$ 13,912,014,000.00

Net assets available for benefits, at cost

12,821. 722,000.00

Unfunded pension benefit obligation

$ 1,090,292.000.00

- 14 -

OKEFENOKEE REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00.
The Library's contribution for the year ended June 30, 1994, of $31,829.17 was actuarially determined arid represented .0061% oftotal contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
Note 8: SURETY BONDS
The Library Director, Ms. Susan Roberts, is bonded in the amount ofSI0,000.00 with the Ohio Casualty Insurance Company, Hamilton, Ohio, their Bond No. 3045455, on which premium was paid through January 10, 1995.

- 15 -

ASSETS Cash and Cash Equivalents

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

EXHIBIT "G"

LOTTERY
PROGRAM

LIBRARY
SERVICES AND CONSTRUCTION
ACT
TITLE I
PUBLIC LIBRARY
SERVICES

TOTAL

$ 78.130.58 $ 1.352.13 $ 79,482.71

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Deferred Revenue
FUND EQUITY
Fund Balances Unreserved Undesignated

$
$ 78.130.58

1,352.13$ 1,352.13 78,130.58

$ 78,130.58$ 1.352.13 $ 79,482.71

0.00

0.00

0.00

Total Liabilities and Fund Equity

$ 78,130.58$ 1,352.13$ 79,482.71
============= ============ ==========

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

OKEFENOKEE REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

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

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 26,869.42

$ 26,869.42

$ 28,016.26

28,016.26

1,250.00

1,250.00

$ 26,869.42$ 29,266.26$ 56,135.68

$ 26,869.42 $ 20,607.39 $ 47,476.81

5,890.24

5,890.24

2,768.63

2,768.63

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

$ 26,869.42 $ 29,266.26 $ 56,135.68
------------- ------------- -------------

$

0.00 $

0.00 $

0.00

0.00

0.00

0.00

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

0.00

-----=-===--- -=-=--------- -----=---=-=-

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

ASSETS
Cash and Cash Equ;valents
FUND EQUITY Fund Balances
Unreserved Undes;gnated

OKEFENOKEE REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1994

EXHIBIT "I"

APPLING COUNTY CONSTRUCTION
FUND
-------------

1986
CONSTRUCTION PROJECT
-------------
WARE COUNTY PUBLIC LIBRARY
-------------

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
--------------PROJECT 7942-92-SB-008
---------------

TOTAL
-------------

$

120.00 $

20.00 $

o.oo $

140.00

$

120.00 $

20.00 $

0.00 $

140.00

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

See notes to the general purpose f;nanc;al statements.
- 18 -

OKEFENOKEE REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "J"

REVENUES

APPLING COUNTY CONSTRUCTION
FUND
-------------

19B6 CONSTRUCTION
PROJECT
-------------
WARE COUNTY PUBLIC LIBRARY
-------------

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
--------------PROJECT 7942-92-SB-008
---------------

TOTAL
-------------

State Funds Local and Other Funds

$

0.00 $

0.00 $

47,312.00$ 47,312.00

1,045.08

1,045.08

Total Revenues

$

0.00 $

0.00 $

48,357.08$ 48,357.08

EXPENDITURES

Cap;tal Outlay

Bu;ld;ng and Bu;1d;ng Improvements

$

0.00 $

0.00 $ 233,158.70$ 233,158.70

Excess of Revenues over (under) Expend;ture $ FUND BALANCE JULY 1

0.00 $ 120.00

0.00 $ 20.00

-184,801.62 $ -184.801.62 184,801.62 184,941.62

FUND BALANCE JUNE 30

$

120.00 $

20.00 $

0.00 $

140.00

-r=~---=----- ~=----------- =---=--=--==--- ==-----------

See notes to the general purpose f;nancial statements. - 19 -

OKEFENOKEE REGIONAL LIBRARY COMBINING BALANCE SHEET
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1994

EXHIBIT "K"

ASSETS
Cash and Cash Equivalents Interest Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Endowment Corpus
Unreserved Undesignated
Total Fund Equity

ENDOWMENT FUNDS

-------------------------------------------
WAYCROSS-

BUNA T. GEORGE UPFOLD WARE COUNTY

FAIN

GATES STUDENT LIBRARY

MEMORIAL

AWARD TRUST MEMORIAL

FUND

FUND

TRUST FUND

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

TOTAL
-------------

$

596.79 $ 7,397.33 $ 3,317.85 $ 11,311.97

128.69

128.69

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

$

596.79 $ 7,526.02$ 3,317.85$ 11,440.66

$

250.00 $ 6,300.00$ 2,393.02$ 8,943.02

346.79

1,226.02

924.83

2,497.64

$

596.79 $ 7,526.02 $ 3,317.85$ 11,440.66

============= ==-------=--- ============= =============

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

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1994

SCHEDULE "l"

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

CFDA
NIJ4BER

FEDERAL FUNDS

RECEIVED IN FEDERAL

AWARDS

PERIOD (NET REVENUE EXPENDITURES

IN PERIOD OF REFUNDS) IN PERIOD IN PERIOD

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

84.034
84.034 84.034 84.034

$ 2,969.77 $ 2,969.77$ 2,969.77

$ 4,000.00

4,000.00

4,000.00

4,000.00

19,000.00

16,046.49

16,046.49

16,046.49

5,000.00

5,000.00

5,000.00

6,250.00(1)

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

Total Federal Financial Assistance

$ 28,000.00$ 28,016.26$ 28,016.26$ 29,266.26
======--=== ============= ============ ============

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

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

OKEFENOKEE REGIONAL LIBRARY ANALYSIS OF CASH ANO CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS

Peoples State Bank and Trust, Baxley, Georgia
Waycross Bank and Trust, Waycross, Georgia

INTEREST BEARING ACCOUNTS

Bank South, Waycross, Georgia
N.O.W. Accounts (2.25%) Certificate of Deposit No. 21321

(8.00%)

Blackshear Bank, Blackshear, Georgia
Certificate of Deposit No. 8497 (8.50%)
First Georgia Bank, Blackshear, Georgia
Certificate of Deposit No. 805-4505623 (5.10%)
First Georgia Bank, Brunswick, Georgia
Certificates of Deposit No. 11086 (6.00%) No. 11089 (6.00%)

First Union National Bank of Georgia, Atlanta, Georgia
N.O.W. Account (2.08%)
Peoples Bank, Blackshear, Georgia
Checking with Interest (Variable) Certificates of Deposit
No. 8396 (5.00%) No. 8651 (4.75%) No. 8713 (4.75%) No. 8792 (4.65%)

OTHER

Petty Cash

$

120.00

20.00 $

140.00

$

3,625.94

6,300.00$ 9,925.94

20,000.00 1,000.00

$ 50,000.00 5,000.00

55,000.00

93,948.83

$ 6,331.91
10,000.00 3,000.00 10,000.00 10,000.00

39,331.91 219,206.68

80.00

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

$ 219,426.68
=-------=-==-

Local Sources Board of Education Bacon County
City Governments Blackshear Homerville
County Governments Boards of Commissioners Appling Clinch Pierce
Various Sources Donations Fines and Fees Interest Earned Photocopy Fees Rents Vendor Refunds

OKEFENOKEE REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30 1 1994

SCHEDULE "3"

GOVERNMENTAL FUND TYPE
-------------GENERAL FUND
--------------

FIDUCIARY FUND TYPE
-------------
NONEXPENDABLE TRUST FUNDS
-------------

TOTAL
-------------

$

2,539.18

2,212.50 1,625.00

$ 2,539.1'8
2,212.50 1,625.00

2,800.00 541.66 604.17

2,800.00 541.66 604.17

6.99

315.19

754.97 $

128.69

190.65

115.63

1,095.95

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

6.99 315.19
883.66
190.65 115.63 1,095.95
-------------

$ 12,801.89 $

128.69 $ 12,930.58

s==--------s-- --==-==------ =---------=--

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

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

SCHEDULE "4"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

TOTAL

GRANTS

Education, Georgia Department of

Public Libraries

Salaries and Travel

$

Library Materials

Maintenance and Operations

Lottery Program

Media Center and Library Equipment

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

210,828.29 52,946.00 46,346.00
$

26,869.42 $

$ 210,828.29 52,946.00 46,346.00
26,869.42

47,312.00

47,312.00

$ 310,120.29$ 26,869.42 $ 47,312.00$ 384,301.71
============= =----=-----=- =======c===== =============

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

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1994

SCHEDULE "5"

LOCAL SOURCES County Boards of Education Appling Bacon Clinch Pierce Ware
City Governments Alma Blackshear Homerville Waycross
County Governments Boards of Commissioners Appl;ng Bacon Clinch Pierce Ware
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Photocopy Fees Rents

GOVERNMENTAL FUND TYPES

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

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

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

$ 4,5DO.OO 9,052.24 6,500.00 3,750.00 8,000.00
9,624.25 8,850.00 6,500.00 35,999.96

$ 4,500.80 9,052.24. 6,500.00 3,750.00 8,000.00
9,624.25 8,850.00 6,500.00 35,999.96

33,6DO.OO 5,752.24 6,296.90 7,854.21
35,000.04

33,600.00 5,752.24 6,296.90 7,854.21
35,000.04

2,963.20 $ 1,250.00

7,312.96

11,191.24

$ 1,045.08

539.75

7,372.53

462.51

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

4,213.20 7,312.96 12,236.32
539.75 7,372.53
462.51
-------------

$ 211,122.03 $ 1,250.00$ 1,045.08$ 213,417.11
============= ============= ============= =============

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

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

SCHEDULE "6"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supp H e s Library Books and Materials Utilities Communications and Insurance Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 284,984.16$ 75,478.39 2,643.96 8,882.92 18,196.89 10,356.59 54,928.75 33,886.85 13,191.22 878.81

5,533.51 $ 4,329.94
35.35 2,076.13 3,272.90 8,261.77
29.89 1,205.95

290,517.67 79,808.33
2,643.96 8,918.27 20,273.02 13,629.49 63,190.52 33,916.74 14,397.17
878.81

1,516.48

31,390.24

32,906.72

$ 504,945.02$ 56,135.68$ 561,080.70
============= ============= =============

See notes to the general purpose financial statements. - 26 -

BOARD MEMBER ADDRESS
Mr. Bill Vest, Chairman(*) 303 Wiregrass Street Homerville, Georgia 31634
Ms. Dianne Bennett Route 3, Box 263 Alma, Georgia 31510
Ms. Peg Blitch P. 0. Box 335 Homerville, Georgia 31634
Ms. Sarah Carter Route 1, Box 237 Alma, Georgia 31510
Ms. Leola Griner(*) P. 0. Box 264 Patterson, Georgia 31557
Ms. Elizabeth Gruver(*) P.O. Box 266 Homerville, Georgia 31634
Ms. Patricia Hereford(*) 1620 City Blvd. Waycross, Georgia 31501
Ms. Dana Hutto(*) 215 West 4th Street Alma, Georgia 31510
Ms. Miriam Johnson(*) 401 Patterson Street Baxley, Georgia 31513
Ms. Linda Jordan P. 0. Box 99 Waycross, Georgia 31502

OKEFENOKEE REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30 1 1994

SCHEDULE "7"

Ms. Angie Moyer(*) 512 West Pine Street Homerville, Georgia 31634
Mr. Larry Nesmith(*) 309 Phillips Street Baxley, Georgia 31513
Ms. Rachel Settle (*) 1015 Cherokee Drive Waycross, Georgia 31501
Mr. Danny Stanaland(*) Route 1 Alma, Georgia 31510
Mr. Charles Stuckey P. 0. Box 270 Baxley, Georgia 31513
Mr. Lonnie Sweat, Jr. (*) 209 Gilmore Street Blackshear, Georgia 31516
Mr. J.M. Vaughn(*) Route 3, Box 820 Baxley, Georgia 31513
Ms. Jackie B. Welch(*) 205 North Baker Alma, Georgia 31510
Ms. Bunny Winge(*) P. 0. Box 212 Waycross, Georgia 31502
Ms. Johnnie Youmans(*) Route 1, Box 37 Patterson, Georgia 31557

(*) Indicates Board Members serving as of June 30~ 1994.

See notes to the general purpose financial statements. - 27 -

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1994

SCHEDULE "8"

PERSONNEL
---------
Altman, Anderson, Bagley,
Barlow, Barnard, Britton, Bryson, Bush, Coleman, Eames, Fariss, Hutchinson, Johns, Lightfoot, Morris, Paquette, Roberts, Schafer, Seaman, Slack, Stock, Summerlin, Suttlemyre, Taylor, Thatcher, Thomas, Wi 11 s, Yerty, Young,

Vivian Patricia Elizabeth Elizabeth Cheryl
James, III Juanita Wynell Alice Charles Deborah Kimberly Jacquelyn Linda Annette Julie Susan Donald Joanna Clementina Maxine
Glenda Vivian Freda Ann Sandra Mary Helen Irene Lynda

-P-O-S-IT-I-O-N-
Branch Manger Substitute Librarian Branch Manager Substitute Librarian Processing Clerk Branch Manager Assistant Branch Manager Librarian Substitute Clerk Substitute Librarian Substitute Librarian Director Clerk Children's Clerk Substitute Librarian Purchasing Clerk Assistant Branch Manager Branch Manager Office Manager Circulation Clerk Substitute Substitute Clerk

SALARIES

TRAVEL

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

$ 11,793.60

114. 75

5,748.11 $

40.74

7,372.50

259.25

12,963.70

69.00

11,720.66

13.01

12,454.92

57.33

6,364.06

18.90

38,306.80

456.05

59.50

2,446.21

841.50

27,960.00

360.80

136.00

12,256.99

137.22

37,184.40

1,296.26

5,554.76

6,197.52

1,282.50

36,884.40

9,945.47

171.36

4,913.44

9.24

12,426.96

13.99

11,892.00

9,220.72

546.13

854.27

2,816.55

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

$ 290,517.67 $ 2,643.96
============= =============

See notes to the general purpose financial statements. - 28 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 30, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Okefenokee Regional Library Board
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Okefenokee Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 30, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and peiform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Okefenokee Regional Library is the responsibility of the Library's management. As part of obtaining reasonable assurance about whether the general purpose :financial statements are free of material misstatement, we performed tests of the Library's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective ofour audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Okefenokee Regional Library complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Library had not complied, in all material respects, with those provisions.
94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 94CRL-I0

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 30, 1995

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

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

Ladies and Gentlemen:

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

We have applied procedures to test the Library's compliance with the following requirements applicable to each of its Federal :financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-70

Material instances of noncompliance consist offailures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule ofFindings and Improper or Questioned Costs.
We considered this material instance of noncompliance in forming our opinion on whether the Okefenokee Regional Library's general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated January 30, 1995, on those financial statements.
Except as descnbed above, the results ofour procedures to determine compliance indicate that, with resp~ to the items tested, the Okefenokee Regional Library complied, in all material respects, with the requirements listed in the second paragraph of this report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Library had not complied, in all material respects with those requirements. Additionally, the results ofour procedures disclosed an immaterial instance ofnoncompliance with those requirements which is also described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted, .
~~
Claude L. Vickers State Auditor
CLV:jy 94CRL-70

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 30, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the Okefenokee Regional Library Board
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Okefenokee Regional Library as ofand for the year ended June 30, 1994, and have issued our report thereon dated January 30, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
In connection with our audit ofthe fiscal year 1994 general purpose financial statements ofthe Okefenokee Regional Library and with our consideration of the Library's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (O:MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:
Types of Services Allowed or Unallowed
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Okefenokee Regional Library's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing
came to our attention that caused us to believe that the Okefenokee Regional Library had not complied, in all
material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94CRL-120

SECTION ID INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 30, 1995

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

ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation ofpolicies and procedures may deteriorate.

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

(I) Cash and Cash Equivalents

(5) Employee Compensation

(2) Revenue/Receivables/Receipts

(6) General Ledger

(3) Procurement

(7) General Fixed Assets

(4) Expenditures/Liabilities/ Disbursements

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

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

As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:

General Fixed Assets

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

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

94ICL-3

This condition was considered in detennining the nature, timing, and extent ofthe procedures to be perfonned
in our audit of the Okefenokee Regional Library's financial statements and this report does not affect our report thereon dated January 30, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94ICL-3

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 30, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Okefenokee Regional Library Board
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Okefenokee Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 30, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Okefenokee Regional Library complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Library's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Libracy's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit ofthe general purpose financial statements in a separate report dated January 30, 1995.
94ICL-16

The management ofthe Okefenokee Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation ofpolicies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(I) Political Activity (2) Civil Rights (3) Cash Management

(I) Types of Services Allowed or Unallowed
(2) Matching Level ofEffort, and/or Earmarking

(4) Federal Financial Reports (5) Allowable Costs/Cost Principles (6) Audit Follow-Up/Resolution (7) Administrative Requirements

(3) Applicable Special Tests and Provisions
(4) Other Requirement Claims for Advances and Reimbursements

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

During the year ended June 30, 1994, the Okefenokee Regional Library had no major Federal :financial assistance programs and expended I00% ofits total Federal financial assistance under the following nonmajor Federal financial assistance program:

Library Services and Construction Act - Title I Program

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements, and specific requirements, as

94ICL-16

described above that are applicable to the aforementioned nonmajor Federal financial assistance program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute ofCertified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Library's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As descnoed in the Schedule ofFmdings and Improper or Questioned Costs, reportable conditions were note.cf in the following control categories:
(I) Cash Management
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule ofFindings and Improper or Questioned Costs, we noted a reportable condition that we believe to be a material weakness in the following control category:
Administrative Requirements
This report is intended solely for the use ofmanagement, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94ICL-16

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7942-93-01
The audit report for the year ended June 30, 1993, noted that the management ofthe Okefenokee Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions to and deletions from the General Fixed Assets Account Group.
CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 7942-94-01
A review of cash management procedures for the Library Services and Construction Act (LSCA) - Title I Program (CFDA 84.034) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 1994, the program had an average cash balance of$4,387.60, with excessive ending monthly cash balances in 10 months. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department ofEducation and disbursement of such funds by the Library.

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7942-94-02
Property management records maintained by the Library for the Library Services and Construction Act - Title I (CFDA 84.034) failed to meet the property management standards as set forth in 34 CFR 80.32. The inventory records as presented for audit should contain a description ofthe property, a manufacturer's serial number or other identifying number, acquisition cost and date, percentage ofFederal participation in the cost, location and disposition, or condition ofproperty. This condition was a result ofthe Library failing to maintain a copy ofthe inventory records for audit purposes. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in 34 CFR 80.32. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be made and reconciled to the property records to ensure the accuracy ofinventory records. Copies ofall pertinent inventory records should be retained and made available to auditors.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

OKEFENOKEE REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7942-93-01
There are two conditions which must be acknowledged concerning this on-going finding:
(1) The Okefenokee Regional Library complies with Georgia Department ofEducation accounting procedures using Georgia Department ofEducation hardware and software. The Genesis System does not support the inclusion of General Fixed Assets Account Groups.
(2) The Library's staff is too small to accomplish any stand along accounting functions.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 7942-94-01
There are two facts which must be realized about this finding:
(1) Through fiscal year 1995 Georgia Department ofEducation has issued first quarter funds in one single payment rather than monthly payments. Therefore an excess ofcash was unavoidable.
(2) The FICA on the state paid employee associated with this project has always been posted by journal entry twice a year - - in September for Fund 210 and in June for Fund 211. This was per instruction from Patty Alligood. Beginning in February 1995, this is being posted monthly.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7942-94-02
This finding is a result of stafffailing to retain a copy of inventory cards when reports (including inventory cards) have been submitted to Division of Public Library Services. As soon as staff and time permit, a permanent database for all equipment purchased with Federal funds will be developed and will be compared against physical inventory annually. This will be completed by June 30, 1995.