Audit report, Okefenokee Regional Library, Waycross, Georgia, year ended June 30, 1999

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AUDIT REPORT OKEFENOKEE REGIONAL LffiRARY
WAYCROSS, GEORGIA YEAR ENDED JUNE 30, 1999 I
~-------------,-----j
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

OKEFENOKEE REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

5

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

6

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

I

FIDUCIARY FUND TYPE

COMBINING BALANCE SHEET

18

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

19

2

LOCAL

20

3 SCHEDULE OF SALARIES AND TRAVEL

21

OKEFENOKEE REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta, Georgia 30334-R400
July 13, 2000

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 Okefenokee 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 ofthe Okefenokee Regional Library, as of and for the year ended June 30; 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Okefenokee Regional Library's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets
Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of this omission have not been determined, but are believed to be material.
99ARL-42A

In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Okefenokee Regional Library as ofJune 30, 1999, and the results of its 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 performed for the purpose of forming an opinion on the general purpose financial statements of the Okefenokee Regional Library taken as a whole. The accompanying combining statements (Exhibits
n G through and the financial schedules (Schedules 1 through 3), 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. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects of the matter discussed in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.

RWH:jb 99ARL-42A

R sell W. Hinton State Auditor

OKEFENOKEE REGIONAL LffiRARY

OKEFENOKEE REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1999

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Amount to be Provided in Future Years
For Payment of Compensated Absences

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

$

102,461.08 $

12,858.07

99,442.76

604.17

Total Assets

$

202,508,01 $ =====12=-,8=5;,;8,;;.0,,;.,7

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Endowment Corpus For Expired Grant Balances/Questioned Costs For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

3,854.36

$

3,854.36

$

5,254.51

$

193,399.14

$

198,653.65 $

12,738.07 120.00
12,858.07

Total Liabilities and Fund Equity

$

202,508.01 $ =====12=-,8=5;,;8,;;.0,,;.,7

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

EXHIBIT "A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUNDS

$

1,010.84

11,108.10

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30,1999

JUNE 30, 1998

$

116,329.99 $

294,157.10

110,550.86

110,029.20

604.17

1,782.00

$

16,285.79

16,285.79

11,663.64

$

12,118.94 $

16,285.79 $

243,770.81 $==4=17=,=63=1=.9=4

$

8,459.63

$

3,854.36

3,094.31

1,174.92

88,294.55

$

16,285.79

16,285.79

11,663.64

$

16,285.79 $

20,140.15 $

112,687.05

$

8,943.02

3,175.92

$

12,118.94

$

8,943.02 $

8,943.02

5,254.51

5,254.51

12,738.07

157,252.74

196,695.06

133,494.62

$

223,630.66 $

304,944.89

$

12,118.94 $

16,285.79 $

243,770.81 $ ==4=1=7=,6=3=1.=94=

-3-

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "B"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30,1999

FUND BALANCE JUNE 30

$ 198.653.65 $

12.858.07 $

211.511.72 $

292.782.04

The notes to the general purpose financial statements are an integral part of this statement. -4-

OKEFENOKEE REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL FUND
YEAR ENDED JUNE 30, 1999

EXHIBIT"C"

REVENUES
State Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operation Information Technology
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1998
FUND BALANCE JUNE 30,1999

BUDGET

ACTUAL

$ 47,302.00 $ 288,156.88 15,250.00

433,411.41 305,161.88
27,226.16

$ 350,708.88 $ 765,799.45

$ 165,121.90 $ 437,835.14

8,147.77

79,661.81

132,070.65

89,525.17

69,321.50

3,400.00

55,180.04

1,350.00

$ 339,058.88 $ 702,555.10

$ 11,650.00 $ 63,244.35

-11,650.00

$

0.00 $ 63,244.35

135,409.30

135,409.30

$ 135,409.30 $ 198,653.65

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

OKEFENOKEE REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30,1999

EXHIBIT "D"

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

BUNAT, FAIN
MEMORIAL FUND

GEORGE UPFOLD GATES STUDENT
AWARD TRUST FUND

WAYCROSS WARE COUNTY
LIBRARY MEMORIAL TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1999 JUNE 30,1998

$

0,00 $

0,00 $

0,00 $

0,00 $

0,00

$

0,00 $

$

0,00 $

40,48

$

40.48 $

647.74

623,52 $ -623.52 $

0,00 $

623.52 $

0.00

0.00 $

-623.52 $

0.00

280.53 -342.99 $ 7.653.83

258.60 258.60 $ 3.861.28

579.61 -43.91 $ 12,162.85

436.26 436.26 11,726.59

FUND BALANCE JUNE 30

$

688.22 $

7.310.84 $

4,119.88 $

12.118.94 $ ==1,;,;;2;;l,.1;,;;6;,;;2.;;;;8=5

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

OKEFENOKEE REGIONAL LIBRARY COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 3D. 1999

EXHIBIT"E"

BUNAT. FAIN
MEMORIAL FUND

GEORGE UPFOLD GATES STUDENT
AWARD TRUST FUND

WAYCROSS WARE COUNTY
LIBRARY MEMORIAL TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30. 1999 JUNE 30, 1998

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

0.00 $

-623.52 $

0.00 $

-623.52 $

0.00

Cash Flows from Investing Activities: Interest Received on Investments Interest Added to Investments

$

40.48 $

-40.48

378.70 $

258.60 $ -258.60

677.78 $ -299.08

442.69 -35.17

$

0.00 $

378.70 $

0.00 $

378.70 $

407.52

Net Increase (Decrease) in Cash

$

0.00 $

-244.82 $

Cash and Cash Equivalents - July 1

0.00

1,255.66

0.00 $ 0.00

-244.82 $ 1,255.66

407.52 848.14

Cash and Cash Equivalents - June 30

$

0.00 $

.,1;,:,,0;;,1.,;0,;,.,8;;;4.;. $

0.00 $

1,010.84 $

1,255.66

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

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Okefenokee Regional Library (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 of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements ofthe 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 ofthe Library.
The Library Board consists of 15 members; 3 members appointed by AlmalBacon County Public Library Board, 3 members appointed by Appling County Public Library Board, 3 members appointed by Clinch County Public Library Board, 3 members appointed by Pierce County Public Library Board and 3 members appointed by Waycross/Ware County Public Library Board. The Library Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances oflocal and other funds for continued operations and is the lowest level ofoversight responsibility for the Library's operations. The Okefenokee Regional Library is therefore determined to be a joint venture.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity v.rith a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, 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 the account group presented in this report are as follows:
-8-

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - 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. These funds include:
NONEXPENDABLETRUSTFUNDS Buna T. Fain Memorial 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 purchase library books and materials for the Okefenokee Regional Library.
George Upfold Gates Student Award 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 purchase publications of general and more or less pennanent interest.
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 library services.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for 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 detennined 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 of available spendable resources.

- 9-

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT ttF"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 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 recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthetransaction can be determined and tlavailabletl means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Okefenokee Regional Libra,rys budget is a complete financial plan for the Libra,rys 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 Libra,rys administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Board of Regents of the University System of Georgia as a part of the Libra,rys 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.

- 10-

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF ~TVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Participating 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 State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been
- 11 -

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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 confonnity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
- 12-

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS

(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 of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

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

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest 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, 1999, the bank balances were $292,913.36. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or 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 30,1999, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 227,133.00 65,780.36 0.00
$ 292,913.36

- 13-

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1999

Note 3: RISK MANAGEMENT

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

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 ofthe past three years.

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

The Library has purchased a surety bond to provide additional insurance coverage as follows:

Position Covered

Amount

All Employees

$ 30,000.00

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Terin Debt during the fiscal year ended June 30, 1999, were as follows:

Compensated Absences

Balance July 1, 1998

. $ 11,663.64

Additions Annual Leave Earned and Utilized (Net)

4,622.15

Balance June 30, 1999

$ 16.285.79

Note 5: ACCUMULATED EMPLOYEES' LEAVE

The Library's regular employees earn vacation leave according to their length of service ranging from one to one and three-quarter days per month with a maximum accumulation of 12 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 of employment. See Note 1 - Compensated Absences

- 14-

OKEFENOKEE REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 6: 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 ofthe Library who are covered byTRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

100% 100% 100%

$ 44,879.55 $ 42,303.70 $ 44,063.13

- 15 -

ASSETS Cash and Cash Equivalents

OKEFENOKEE REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1999

EXHIBIT"G"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

JUNE 30, 1999

JUNE 30, 1998

$

120.00 $

12,738.07 $

12,858.07 $ ===2;;,4=6;.=,8=4=2=.2=1

Total Liabilities and Fund Equity

$

120.00 $

12,738.07 $

12,858.07 $ -==O....ci2;,;,4.6..,.=84=2;;;;;.2.1..

See notes to the general purpose financial statements.

-16-

OKEFENOKEE REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30,1999

EXHIBIT "H"

REVENUES
State Funds Other Funds
Total Revenues EXPENDITURES
Capital Outlay BUilding and Building Improvements
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$

0.00

$ 1,400,000,00

$

4,868.16 $

4,868.16

52,179.20

$

0,00 $

4,868.16 $

4,868.16 $ 1,452,179,20

$

0,00 $

149,382.83 $

149,382.83 $ 2,760,508,93

$

0,00 $

-144,514.67 $ -144,514.67 $ -1,308,329.73

120.00

/
157,252,74

157,372.74

1,465,702.47

FUND BALANCE JUNE 30

$

120,00 $

12,738.07 $

12,858.07 $ ===15=7~,3~72;;;,;.=74==

See notes to the general purpose financial statements.

- 17-

OKEFENOKEE REGIONAL LIBRARY COMBINING BALANCE SHEET FIDUCIARY FUND TYPE JUNE 30 1999

EXHIBIT "I"

Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

NONEXPENDABLE TRUST FUNDS

BUNA T.

GEORGE UPFOLD

WAYCROSS WARE COUNTY

FAIN MEMORIAL

GATES STUDENT AWARD TRUST

LIBRARY MEMORIAL

FUND

FUND

TRUST FUND

TOTALS

JUNE 30, 1999

JUNE 30, 1998

$

1,010.84

$

1.010.84 $

1,255.66

$

688.22

6,300.00 $

4,119.88

11,108.10

10,809.02

98.17

$

688.22 $

7,310.84 $

4,119.88 $

12,118.94 $

12,162.85

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

250.00 $ 438.22
688.22 $

6,300.00 $ 1,010.84
7,310.84 $

2,393.02 $ 1,726.86

8,943.02 $ 3,175.92

8,943.02 3,219.83

4,119.88 $

12,118.94 $

12,162.85

See notes to the general purpose financial statements.

-18 -

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1999
AGENCY/FUNDING GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Maintenance and Operation

SCHEDULE "1"

GOVERNMENTAL FUND TYPE
GENERAL FUND

$

327,061.77

5,145.64

53,902.00

47,302.00

$

433,411.41

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

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30,1999
LOCAL SOURCES Boards of Education Appling County Bacon County Clinch County Pierce County Ware County City Governments Alma Blackshear Homerville Waycross County Governments Boards of Commissioners Appling Bacon Clinch Pierce Ware

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

5,675.00

11,933.00

8,850.00

3,750.00

10,000.00

10,712.16 8,850.00 8,850.00
80,000.00

37,699.92 5,736.72 9,100.00 7,250.04
96,755.04

$

305,161.88

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

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,1999

SCHEDULE "3"

NAME
Anderson, Bessonette, Britton, Brown, Bryson, Coleman, Eames, Farmer, Harris, Hathaway, Holloway, Huddleston, Lightfoot, Mathis, Osborne, Pittman, Reese, Schafer, Schild, Smith, Steedley, Stock, Summerlin, Suttlemyre, Taylor, Thatcher, Thomas, Vaughn, Welch, Williams, Wills, Womble, Yearty,

Cheryl Theressa Sarah B. James C., III Betty Juanita E. AliceC. Charles B. Willia Christine Edith Melisa Melissa Linda Kay Eric Annette Doris F. Dianna J. Donald E. Betty Katherine Lisa Maxine P. Glenda L. Vivian S. Freda Ann Sandra E. MaryW. Edna Jane S. Elizabeth D. Helen M. John Irene D.

TITLE CATEGORY

SALARIES

TRAVEL

Branch Manager

$

Substitute

Librarian

Substitute

Branch Manager

Assistant Clerk

Librarian

Library Clerk

Library Clerk

Assistant Clerk

Library Clerk

Substitute

Librarian

Librarian

Branch Manager

Library Clerk

Branch Manager

Library Clerk

Director

Publicity and Volunteer Coordinator

Substitute

Librarian

Library Clerk

Assistant Clerk

Branch Manager

Payroll Clerk

Office Manager

Substitute

Branch Manager

Library Clerk

Substitute

Library Clerk

Substitute

4,678.78 731.30
43,599.60 $ 151.93
14,040.00 7,443.82
50,694.10 1,648.00 6,418.06 234.33 1,665.38 1,385.36
43,599.60 35,642.60
5,696.78 12,912.35
3,090.00 9,878.26 43,521.70 13,662.60
95.28 51,144.10
1,807.06 1,344.16 8,412.07 14,504.04 13,229.84
190.55 11,325.60 8,183.88
1,412.39 5,438.84
857.48

826.75 37.50
247.93 36.51
802.72 699.00
2,569.24
221.32
25.00

Totals per Report

$ 418,639.84 $ = = 5..,.4=6=5=.9=7

See notes to the general purpose financial statements.

- 21 -

SECTION II FINDINGS AND QUESTIONED COSTS

OKEFENOKEE REGIONAL LIBRARY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
PRIOR YEAR
EXPENDITURESILIABILITIESIDISBURSEMENTS Lack of Documentation for Expenditures Amount: $5,254.51 Finding Control Number: 7942-97-01
The audit report for the year ended June 30, 1997, noted that seven journal entries were made which reclassified $5,254.51 of expenditures from the General Fund to the Special Revenue Fund - Library Service and Construction Act - Title I - Public Library Services (CFDA 84.034) without supporting documentation. In the year under review, the Library did not obtain documentation to determine if these were allowable expenditures for this grant. This condition occurred because management failed to adhere to proper accounting treatment for Federal grants, and charged expenditures to the program that has not been documented to be for program purposes. The Board ofRegents of the University System of Georgia should review this matter to determine if the Library should refund unexpended grant funds.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7942-93-01
The audit report for the year ended June 30, 1998, 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 collection of 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 for all additions to and deletions from the General Fixed Assets Account Group.