Okefenokee Regional Library, Waycross, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004

OKEFENOKEE REGIONAL LIBRARY
WAYCROSS, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

OKEFENOKEE REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

B

STATEMENT OF ACTIVITIES

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

G

NOTES TO THE BASIC FINANCIAL STATEMENTS

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND

SUPPLEMENTARY INFORMATION

SCHEDULES OF REVENUE

2

STATE

3

FEDERAL

4

LOCAL

5 SCHEDULE OF SALARIES AND TRAVEL

Page
3 4 5 6
7 8
9
19
20
21
22
23

OKEFENOKEE REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
August 8, 2005

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the Board of Regents ofthe University System of Georgia
and Director and Members of the Okefenokee Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements of the governmental activities, the major fund and the aggregate remaining fund information (Exhibits A through G) of the Okefenokee Regional Library as of and for the year ended June 30, 2004, which collectively comprise the Library's basic financial statements as listed in the table ofcontents. These financial statements are the responsibility of the Okefenokee Regional Library's management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the major fund and the aggregate remaining fund information of the Okefenokee Regional Library, as of June 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

2004ARL-41

The Okefenokee Regional Library has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements.
As discussed in Note 2 to the basic financial statements, during fiscal year 2004, the Library completed a comprehensive inventory of its capital assets for inclusion in the basic financial statements. This change is in accordance with generally accepted accounting principles.
As described in Note 2, the Okefenokee Regional Library has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004.
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 19 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Okefenokee Regional Library's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic 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 of Georgia Annotated section 506-24.
Respectfully submitted,
~Mo~ l-0.~.::k._
Russell W. Hinton State Auditor
RWH:as 2004ARL-41

OKEFENOKEE REGIONAL LIBRARY

OKEFENOKEE REGIONAL LIBRARY STATEMENT OF NET ASSETS JUNE 30, 2004
ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Federal Government Other Capital Assets Library Collections Less: Accumulated Depreciation
Total Assets
LIABILITIES Accounts Payable Deferred Revenue Long-Term Liabilities
Due in More Than One Year Total Liabilities NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted for
Permanent Funds Unrestricted
Total Net Assets
Total Liabilities and Net Assets

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

140,093

92,524

3,000 773

1,352,951 -1,027,309

$ ====5=62='=03=2=

$

462

412

23 521

$

24395

$

325,642

8,943 203,052

$

537 637

$ ====5=6=2,=0=32=

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

OKEFENOKEE REGIONAL LIBRARY STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30. 2004

EXHIBIT"B"

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR

GRANTSAND

SERVICES

CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

GOVERNMENTAL ACTIVITIES

Current Services Public Services Technical Services Support Services Maintenance and Operations Information Technology
Total Governmental Activities

$

631,669 $

70,200

161,574

75,335

20854

959,632 $

23,477 $ 23477 $

423,456 $ 53,539

-184,736 -70,200
-161,574 -21,796 -20 854

476 995 $ _ _ _ _-4;.;;5.;;;.9:...1.;.,;;;.60.c...

General Revenues Allotments from Participating Governments Investment Earnings Miscellaneous

$

371,458

4,396

25 691

Total General Revenues

$ _ _ _ _4.:.,:0:...:.1""54..:.,:5:.._

Change in Net Assets

$

-57,615

Net Assets - Beginning of Year (Restated)

595 252

Net Assets - End of Year

$ ===,.,.;;5;;;;3.;.,7~63~7:.,,

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

OKEFENOKEE REGIONAL LIBRARY BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30. 2004

EXHIBIT"C"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Federal Government Other
Total Assets
LIABILITIES AND FUND BALANCES LIABILITIES
Accounts Payable Deposits and Deferred Revenue
Total Liabilities FUND BALANCES
Reserved for: Permanent Funds
Unreserved Undesignated Reported in: General Fund Capital Projects Permanent Funds Total Fund Balances
Total Liabilities and Fund Balances

GENERAL FUND

NON-MAJOR FUNDS

TOTAL

$

139,550 $

80,000

3,000 773

543 $ 12,524

140,093 92,524
3,000 773

$

223,323 $

13 067 $ 236,390

$

462

412

$

874

$

462

412

$

874

$

$

222,449

$

222,449 $

8,943 $

8,943

120 4 004
13 067 $

222,449 120
4004
235,516

$

223,323 $

13 067 $ 236,390

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

OKEFENOKEE REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30. 2004

EXHIBIT"D"

Total Fund Balance - Governmental Fund (Exhibit "C")
Amounts reported for Governmental Activities in the Statement of Net Assets are different because:
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of:
Library Collections Accumulated Depreciation
Total Capital Assets
Long-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of:
Compensated Absences

$

235.516

$ 1.352,951 -1,027,309

325,642

-23,521

Net Assets of Governmental Activities (Exhibit "A")

$ ===53=7=,6=37=

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

OKEFENOKEE REGIONAL LIBRARY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004

EXHIBIT"E"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning (Restated)
Fund Balance - Ending

GENERAL FUND

NON-MAJOR FUNDS

TOTAL

$

371,458

473,995

3,000

23,477

4,012 $

25,691

$

901,633 $

$ 384

371,458 473,995
3,000 23,477
4,396 25,691

384 $ 902,017

$

603,998 $

70,200

159,796

75,335

20,854

$

930,183 $

$

-28,550 $

250,999

315 $

604,313 70,200
159,796 75,335 20,854

315 $ 930,498

69 $ -28,481

12 998

263,997

$

222,449 $ ===1=3=0=6=7 $ 235,516

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

OKEFENOKEE REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2004

EXHIBIT"F"

Total Net Change in Fund Balance - Governmental Fund (Exhibit "E")
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:
Capital Outlay Depreciation Expense
Excess of Depreciation Expense over Capital Outlay
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of:
Increase in Compensated Absences

$

-28,481

$ 43,351 -70 707

-27,356

-1 778

Change in Net Assets of Governmental Activities (Exhibit "B")

$ ===-=5=7=6=15=

The notes to the basic financial statements are an integral part of this statement. -8 -

OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "G"

Note 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY
REPORTING ENTITY
The Okefenokee Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia.
The Library Board is comprised of fifteen members which are also trustees of the member library which appointed them. The Library Board membership consists ofthree members appointed from the Alma/Bacon County Library Board, three members appointed from the Appling County Library Board, three members appointed from the Clinch County Library Board, three members appointed from the Pierce County Library Board and three members appointed from the Waycross/Ware County 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 of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Okefenokee Regional Library is therefore determined to be a joint venture.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Library's basic financial statements are collectively comprised of the Library-wide financial statements, fund financial statements and notes to the basic financial statements ofthe Okefenokee Regional Library.
Library-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities of the overall Library. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Library's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the Library related to the administration and support ofthe Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs.

-9-

OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the Library's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds. All remaining governmental funds are aggregated and reported as nonmajor funds.
The Library reports the following major governmental fund:
General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library, except those resources required to be accounted for in another fund.
BASIS OF ACCOUNTING
The basis ofaccounting determines when transactions are reported on the financial statements. The Library-wide governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The Library uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The Library considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Interest is considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds.

OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Library funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Library's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.

CHANGES IN ACCOUNTING PRINCIPLES

The Okefenokee Regional Library has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004.

The provisions of GASB Statement No. 34 require the inclusion ofa Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following:

General Fund July 1, 2003 Capital Projects Fund Permanent Funds

$ 250,999 120
12,878

Governmental Funds (Restated) July 1, 2003 Capital Assets Accumulated Depreciation Compensated Absences

$ 263,997 1,337,533 -984,535 -21,743

Net Assets Beginning (See Exhibit "B")

$ 595,252

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a

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OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
CAPITAL ASSETS
Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the Library-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method.

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OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Capitalization thresholds and estimated useful lives of capital assets reported in the Library-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Library Collections

All

10 years

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.

Note 3: DEPOSITS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of any one of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe 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

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OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"G"

Note 3: 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 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, 2004, the bank balances were $306,385. The amounts of the 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, 2004, as follows:

Risk Category

Bank Balance

1

$ 198,442

2

0

3

107,943

Total Note 4: CAPITAL ASSETS

$=====3=06=,3=8=5

The following is a summary of changes in the Capital Assets during the fiscal year:

Capital Assets Being Depreciated Library Collections
Less Accumulated Depreciation for: Library Collections
Governmental Activity Capital Assets - Net

Balances July I, 2003

Increases

Decreases

Balances June 30. 2004

$ 1,337,533 $

43,351 $

27,933 $ 1,352,951

984,535 $ 352,928 $

70 707 -27,356 $

27.933

1,027.309

0 $ 325,642

- 14 -

OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"G"

Note 4: CAPITAL ASSETS

Current year depreciation expense by function is as follows:

Public Services Note 5: RESTRICTED ASSETS

$====70='=7===0==7

Corpus of the Buna T. Fain Memorial Fund, George Upfold Gates Student Award Trust Fund and Waycross-Ware County Library Memorial Trust Fund are reported as restricted assets in the Statement of Net Assets because their use is limited by applicable contractual agreements. Restricted assets at June 30, 2004, were as follows:

Permanent Funds

Restricted Investments Corpus
Note 6: RISK MANAGEMENT

$=====8='=9"='4==3

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

The Library has obtained commercial insurance for risk ofloss associated with torts, assets and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

The Library has elected to self-insure for all losses related to acts of God. 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

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OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30. 2004

EXHIBIT"G"

Note 7: LONG-TERM DEBT

COMPENSATED ABSENCES Compensated absences represent obligations ofthe Library relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. The Library uses the vesting method to compute compensated absences.

The changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows:

Governmental Funds
Compensated Absences (1)

Balance July 1, 2003

$

21,743

Additions Annual Leave Earned

38,388

Deductions Annual Leave Utilized

36,610

Balance June 30, 2004

(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements.

Note 8: SIGNIFICANT CONTINGENT LIABILITIES

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

Note 9: 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

- 16 -

OKEFENOKEE REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"G"

Note 9: RETIREMENT PLANS

survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2004 2003 2002

100% 100% 100%

$

49,467

$

46,947

$

46,881

- 17 -

OKEFENOKEE REGIONAL LIBRARY

SCHEDULE "1"

GENERAL FUND

SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

YEAR ENDED JUNE 30. 2004

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

$

371,458 $

371,458 $

371,458

492,435

492,435

473,995

3,000

22,400

22,400

23,477

4,450

4,450

4,012

25 691

$

890 743 $

890 743 $

901,633

$

649,427 $

649,427 $

603,998

70,631

70,631

70,200

146,008

146,008

159,796

88,754

88,754

75,335

21 270

21 270

20854

$

976 090 $

976,090 $

930,183

$

-85,347 $

-85,347 $

-28,550

250,999

250,999

250,999

Fund Balance - Ending

$

165,652 $

165,652 $ ==::::;2~2;;;;,2=,;.4.;,;49~

Notes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

-19-

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2004
AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Materials Maintenance and Operations

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

397,176

2,638

20,642

53 539

$

473 995

See notes to the basic financial statements.

- 20 -

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2004
AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program

SCHEDULE "3"
GOVERNMENTAL FUND TYPE GENERAL FUND
$ =====3:!:0=0=0

See notes to the basic financial statements.

- 21 -

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30. 2004
LOCAL SOURCES City Governments Alma Blackshear Homerville County Boards of Education Appling Bacon Clinch Pierce Ware County Governments Boards of Commissioners Appling Bacon Clinch Pierce Ware

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

11,783

9,350

9,350

5,675 11,933 10,500
5,000 10,000

33,900 5,737 9,650 11,000
237 580

$ ========37=1==4=5=8

See notes to the basic financial statements.

- 22 -

NAME
Anderson, Theressa Bessonette, Sarah Britton, James C Ill Bunkley, Anita Coleman, Alice Connerat, Helen Demarest, John Farmer, Willia D Galentine-Steis, Midge Greer, Michelle Grigg, Pamela Harris, Christine W Lightfoot, Linda Kay McCarty, Janet Moore, Barbara Moore, Rosanne Osborne, Annette Page, Lois Pittman, Doris F Simmons, Janice Smith, Katherine Stock, Maxine P Summerlin, Glenda L Taylor, Freda Ann Thatcher, Sandra E Thomas, Mary W Titcher, Jackie Ward, Lena Watson, Patricia Welch, Jane S West, Bertha White, Betty 0 Williams, Elizabeth D
Totals per Report

OKEFENOKEE REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2004

SCHEDULE "5"

TITLE CATEGORY
Branch Manager Substitute Reference Services Librarian Branch Manager Circulation Clerk Circulation Clerk Maintenance Circulation Clerk Director Substitute Extension Services Librarian Circulation Clerk Extension/Technical Services Librarian Maintenance Substitute Extension Services Librarian Branch Manager Support/Clerical Clerk Assistant Payroll Clerk Circulation Clerk Circulation Clerk Children's Services Librarian Office Assistant Substitute Payroll Clerk/Technical Services Clerk Office Manager Circulation Clerk Circulation Clerk Maintenance Branch Manager Substitute Circulation Clerk Circulation Clerk

SALARIES

TRAVEL

$

15,467 $

46

474

55,590

204

13,737

8,189

13,393

7,900

143

16,172

62,358

157

36

36,295

1,367

4,670

53,971

333

252

1,542

57,258

232

14,110

53

12,941

144

17,789

2,319

16,335

59,575

230

7,497

639

22,993

24,797

1,392

1,776

8,666

2,016

15

14,487

71

482

15,094

10447

$

579,267 $ ======4=3=8=7

See notes to the basic financial statements.

-23-

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

OKEFENOKEE REGIONAL LIBRARY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7942-93-01

Previously Reported Corrective Action Implemented