Audit report, Pine Mountain Regional Library, Manchester, Georgia, year ended June 30, 1994

GA ABOO .Rl
R'-Ho
P3
1993-q+
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT PINE MOUNTAIN REGIONAL LIBRARY
MANCHESTER,GEORGIA YEAR ENDED JUNE 30, 1994

PINE MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION!

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

2

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

4

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

5

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

6

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

18

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

19

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

20

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

21

3 ACCOUNTS RECEIVABLE

22

PINE MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION!

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

4

STATE

23

5

LOCAL AND OTHER

24

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

25

7 MEMBERSHIP OF LIBRARY BOARD

26

8 SCHEDULE OF SALARIES AND TRAVEL

27

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 SPECWIC 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

PINE MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

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
June 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Pine Mountain 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) of the Pine Mountain 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 of the 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 certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are 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.
94ARL-44

* The Library did not report compensated absences within the general purpose financial statements as
required by generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of these variances or omissions 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 Pine Mountain Regional Library as of June 30, 1994, 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 conducted for the purpose of forming an opinion on the general purpose financial statements of the Pine Mountain Regional Library taken as a whole. The combining statements (Exhibits G through J) and the financial schedules (Schedules 1 through 8 which includes the Schedule of Federal Financial Assistance), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Pine Mountain 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 of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~4
Claude L. Vickers State Auditor
CLV:gp 94ARL-44

PINE MOUNTAIN REGIONAL LIBRARY -1-

ASSETS
Cash and Cash Equivalents Accounts Receivable

PINE MOUNTAIN REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES JUNE 30 1994

EXHIBIT "A"

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

FIDUCIARY FUND TYPE
TRUST FUNDS

TOTAL (MemorandlJll
Only)

30,B92.10 $ 916.3B

72,091.19 $ 606,333.32 $ 90,761.45

3,050.59 $ 712,367.20 91,677.83

Total Assets

31,808.48 $ 72,091.19 $ 697,094.77 $ 3,050.59 $ B04,045.03

LIABILITIES AND FUND EQUITY
- - - - LIABILITIES
Accounts Payable Deferred Revenue Retai nages Payab1e Contracts Payable
Total Liabilities
FUND EQUITY
----
Fund Balances Reserved For Continuation of Federal Program For Endowment Corpus For Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

3,551.38 $

38,749.59 $ 31,398.54

11,144.11
35,814.93 57,682.22

3,551.38 $ 70,14B.13 $ 104,641.26

53,445.0B 31,398.54 35,814:93 57,682.22
178,340.77

1,943.06

592,453.51

1,000.00

1,943.06 1,000.00 592,453.51

28,257.10

1,943.06 $ 592,453.51 $

0.00

0.00

1,000.00 $ 595,396.57

2,050.59

30,307.69

2B,257.!0 $ 1,943.06 $ 592,453.51 $ 3,050.59 $ 625,704.26

Total Liabilities and Fund Equity

31,808.48 $ 72,091.19 $ 697,094.77 $ 3,050.59 $ 804,045.03

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

PINE MOUNTAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES EXPENDITURES ANO 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

277,888.85 $ 241,423.63

73,601.46 $
25,706.86

554,360.45 $ 41,700.47

905,850.76 25,706.86
2B3, 124 .10

Total Revenues

519,312.48

99,308.32

596,060.92 $1,214,681.72

EXPENDITURES

Current Program Services Technical Services Circulation Administration Maintenance and Opera ti on
Capital Outlay

148,097.73 51,299.09
133,800.84 l26,1B2.62
52,096.06 1,765.50

17,713.83
9,900.51 3,702.02
67,054.74

486,676.13

165,811.56 51,299.09
143,701.35 129,884.64
52,096.06 555,496.37

Total Expenditures

513,241.84 $

98,371.10 $ 486,676.13 $1,098,289.07

Excess of Revenues over ( under) Expenditures

6,070.64 $

937.22 $ 109,384.79

116,392.65

OTHER FI NANCI NG SOURCES (USES)

Operating Transfers In Operating Transfers Out

-5.81

5.81

5.81 -5 .81

Total Other Financing Sources (Uses)

-5.81

5.81

0. 00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1993

6,064.83 21,895.72

943. 03 1,000.03

109,3B4.79 483,068.72

116,392.65 505,964 47

Residual Equity Transfer

296. 55

296 55

FUND BALANCE JUNE 30, 1994

28,257.10$

1,943.06

592,453.51 $ 622,653.67

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

PINE MOUNTAIN 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 Loca 1 and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operation
Capital Outlay
Tota 1 Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Tota 1 Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over ( under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1993
Residual Equity Transfer

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

905,850.76$ 2,137,501.70 $-1,231,650.94

25,706.86

21,781.50

3,925.36

283,124.10

239,848.30

43,275.80

$1,214,681.72 $ 2,399,131.50 $-1,184,449.78

165 ,81 I. 56 $ 169,356.35 $

3,544.79

51,299.09

52,735.73

1,436.64

143,701.35

143,288.79

-412. 56

129,884.64

148,621.42

18,736.78

52,096.06

26,559.38

-25,536.68

555,496.37 2,327,090.17 1,771,593.80

$1,098,289.07 $2,867,651.84$ 1,769,362.77

116,392.65 $ -468,520.34 $ 584,912.99

5. 81 $ -5.81
0 .00

0. 00 $ 0. 00
0. 00 $

5.81 -5. 81
0.00

116,392.65 $ -468,520.34 $ 584,912.99

505,964.47

509,219.22

-3,254.75

296.55

296. 55

FUND BALANCE JUNE 30, 1994

622,653.67 $

40,698.88 $ 581,954.79

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

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

- 4-

PINE MOUNTAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES EXPENSES ANO CHANGES IN FUNO BALANCES
FJOUCJARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 1994

EXHIBIT "D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded Operating Income
NONOPERATING REVENUES Interest Earned
FUND BALANCE JULY 1, 1993 Residual Equity Transfer
FUND BALANCE JUNE 30, 1994

ENDOWMENT FUNDS

HIGHTOWER MEMORIAL LIBRARY FUND

TOMMY THOMPSON
FUND

TOTAL (Memorandum
Only)

0. 00 $

0. 00

0. 00

0. 00 $ 0. 00 $

0. 00 $ 0. 00

0. 00 0. 00

90.10 $ 2,960.49

2. 29 $

92 .39

294. 26

3,254.75

-296.55

-296.55

3,050.59

0. 00 $

3,050.59

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

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

EXHIBIT "E"

Cash Flows from Operating Activities: None Recorded
Cash Flows from Investing Activities: Interest Received
Net Increase (Decrease) in Cash
Cash Flows from Noncapital Financing Activities: Residual Equity Transfer
Cash and Cash Equivalents - July 1, 1993
Cash and Cash Equivalents - June 30, 1994

ENDOWMENT FUNDS

HIGHTOWER MEMORIAL LIBRARY FUND

TOMMY THOMPSON
FUND

TOTAL (Memorandum
Only)

0. 00 $

0. 00 $

0.00

90. 10 $ 90.10

2. 29 2. 29

92 .39 92.39

0. 00 $ 2,960.49

-296. 55 $

-296. 55

294.26 $

3,254.75

3,050.59 $

0. 00 $

3,050.59

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

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Pine Mountain Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-540 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 dt;partures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the 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 of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Pine Mountain Regional Library is determined to be a joint venture.
The Library Board consists of seven members; three members appointed by Meriwether County Library Board, one member appointed by Talbot County Library Board, one member appointed by Taylor County Library Board and two members appointed by Upson County 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 ofGeorgia 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 Pine Mountain Regional Library is located in Manchester, Georgia, and serves Meriwether, Talbot, Taylor and Upson Counties.
FUND ACCOUNTING
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.
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.
- 7-

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general pwpose 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 presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
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 traditionally provided by a Library.
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 of major capital facilities.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUND Hightower Memorial Library 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 provide for maintenance or repairs ofthe Upson County Library building and property.
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 of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.

- 8-

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the 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 of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Pine Mountain 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 of the 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 ofEducation, Division ofPublic 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 ofdeposits (including certificates of deposit, savings 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.

- 9-

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and allotted funds from participating local governments. 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.
However, the dollar value of accumulated compensated absences at June 30, which will be payable from futures resources is material to the general purpose financial statements and has not been recorded in the General Long-Term Debt Account Group. In order to comply with generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
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.

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PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

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 in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(!) 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 ofindebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State ofGeorgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, 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 $825,229.18. 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.
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PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS

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, 1994, as follows:

Risk Category
1 2 3
Total
Note 3: RISK MANAGEMENT

Bank Balance
$ 416,397.17 244,906.12 163 925.89
$ 825 229 18

The Library has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based upon experience. During fiscal year 1994, no claims were paid.

Note 4: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of$31,398.54 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with Lottery Programs. The Georgia Department ofEducation has funding available to the Library in an amount equal to these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

$ 3139854

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as of June 30, 1994, together with funding available:

6992-92S-005 6992-92S-004 6992-94-007

Unearned Executed Contracts
$ 253,979.81 238,636.52
I 296 559.69

Funding Available From State
$ 226,572.12
1092337.00

$ I 789 176 02 $ l 318 909 l 2

The amounts described in this note are not reflected in the general purpose financial statements.

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PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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 terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 6: ACCUMULATED EMPLOYEES' LEAVE
Professional and semi-professional employees earn 20 days of annual leave per year. Non-professional staff earn 12 to 20 days of annual leave per year based on length of employment. Annual leave may not be accumulated beyond one year. Employees who leave the Library's employment receive payment for any accrued annual leave, provided they have been employed at least a year, and have given adequate notice of resignation. 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 member's two consecutive highest paid years of service multiplied by the number of years 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.
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 of disability 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.
- 13 -

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: RETIREMENT PLANS

The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $282,008.62; total payroll was $299,876.20.

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 of Trustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $50,225.84, of which $33,305.30 was made by the Library and $16,920.54 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 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 of the pension benefit obligation was adopted by the GASB to enable readers of PERS 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 Unfunded pension benefit obligation

12 821 722 000.00
$ I 090 292 ooo 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 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 $33,305.30 was actuarially determined and represented .0064% of total contributions made by all participating employers.

- 14 -

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: RETIREMENT PLANS
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
All employees of the Library are bonded in the amount of $50,000.00 with the Auto-Owners Insurance Company, Lansing, Michigan, their Bond No. 937018, on which premium was paid through November 10, 1994.

- 15 -

PINE MOUNTAIN REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Deferred Revenue
Total liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesi gnated Total Fund Equity
Total Liabi1 ities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I
PUBLIC LIBRARY SERVICES

TOTAL

69,902.65 $

2,IBB.54 $

72,091.19

3B, 504. II 31, 39B. 54
69,902.65 $

245.48 $

38,749.59 31,398.54

245.48 $

70,148.13

0. 00

1,943.06$ 0.00

1,943.06 0. 00

0 .00 $

1,943.06 $

I, 943. 06

69,902.65 $

2,188.54 $

72,091.19

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

PINE MOUNTAIN REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994

EXHIBIT "H"

REVENUES
State Funds Federal Funds
Total Revenues
EXPENDITURES
Current Program Services Circulation Administration
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1, 1993
FUND BALANCE JUNE 30, 1994

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

73,601.46 $

25,706.86

73,601.46 25,706.86

73,601.46

25,706.86 $ 99,308.32

9,900.51 3,702.02 60,004.74

17,713.B3 7,050.00

17,713.B3 9,900.51 3,702.02
67,054.74

73,607.27 $ 24,763.B3 $ 98,371.10

-5.81 $

943.03 $

937. 22

5.81

5.81

0.00 $ 0.00

943.03 $ 1,000.03

943.03 1,000.03

0.00 $

1,943.06$

1,943.06

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

ASSETS
Cash and Cash Equivalents Accounts Recei vab1e

PINE MOUNTAIN REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1994

EXHIBIT "I"

REYNOLDS PUBLIC LIBRARY

TALBOTTON PUBLIC LIBRARY

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

6992-92S-SB-005 6992-92S-SB-004 6992-94-SB-007

TOTAL

501.00 $ 2B,411. 79 $

13,200.42 $ 51,774.45

219,313.99 $ 3B,9B7 .00

344,906.12 $ .606,333.32 90,761.45

Teta1 Assets

501.00 $ 28,411.79 $

=

==========

64,974.87 $ 258,300.99 $ 344,906.12 $ 697,094.77

LIABILITIES AND FUND EQUITY
----
LIABILITIES

Accounts Payable Retainages Payable Contracts Payable

17,215.93 $ 34,558.52

$ 18,599.00 23,123.70

ll,144.11 $ 11,144.11 35,814.93 57,682.22

Total Liabilities

51,774.45 $

41,722.70 $ ll,144.11 $ 104,641.26

FUND EQUITY
----
Fund Balances Reserved For Capital Outlay Projects Unreserved Undesignated

501.00 $ 28,411.79 $

0.00

0.00

13,200.42 $ 0.00

216,578.29 $ 0.00

333,762.01 $ 592,453.51

0.00

0.00

Total Fund Equity

501.00 $ 28,411.79 $
----------- -----------

13,200.42 $ 216,578.29 $ 333,762.01 $ 592,453.51

Total liabilities and

Fund Equity

$

501.00 $ 28,411.79 $

64,974.87 $ 258,300.99 $ 344,906.12 $ 697,094.77

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

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

EXHIBIT "J"

REYNOLDS PUBLIC LIBRARY

TALBOTTON PUBLIC LIBRARY

GEORGIA STATE FINANCING ANO INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

6992-92S-SB-005 6992-92S-SB-004 6992-94-SB-007

TOTAL

REVENUES

State Funds local and Other Funds

0.00 $ 30,161.79

164,490.45 $

389,870.00 1,281.05 $

$ 554,360.45 10,257.63 41,700.47

Teta1 Revenues

0.00 $ 30,161.79 $

164,490.45 $

391,151.05 $

10,257.63 $ 596,060.92

EXPENDITURES

Capital Outlay Building and Building I~rovements

0.00 $ 1,750.00 $

201,454.80 $

213,725.50 $

69,745.83 $ 486,676.13

Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1993

0.00 $ 28,411.79 $ 0.00

-36,964.35 $ 50,164.77

177,425.55 $ 39,152.74

-59,4B8.20 $109,384.79 393,250.21 483,068.72

FUND BALANCE JUNE 30, 1994

501.00 $ 28,411.79 $

13,200.42 $ 216,578.29 $ 333,762.01 $ 592,453.51

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "I"

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 Basic A Carry-Over 1993 Basic A Carry-Over 1992 Basic B Carry-Over 1993 Basic B Carry-Over 1993 Con1Jetitive Carry-Over 1992 DevelolJllOntal Carry-Over 1993 DevelolJllOnta1 Carry-Over

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

B4 .034 B4.034 84.034 B4.034 B4.034 84.034 B4.034

12,000.00 $
5,000.00 4,349.00 4,000.00
825. 00

12,000.00 $ 780.00
3,896.07 4,274.00 4,000.00
756. 79

$ 12,000.00
780.00 3,896.07 4,274.00 4,000.00
756. 79

963.81 10,219.18
816.22 3,896.07 4,111.76 4,000.00
756. 79

Total Federal Financial Assistance

26,174.00 $ 25,706.86 $ 25,706.86 $ 24,763.83

The Library had no major programs as defined by the Single Audit Act of 1984.

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

PINE MOUNTAIN REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Citizens State Bank, Butler, Georgia
Citizens State Bank, Reynolds, Georgi a

INTEREST BEARING ACCOUNTS

Columbus Bank and Trust, Columbus, Georgi a
Certificate of Deposit No. 69452 N.O.W. Account (2.65%)

(5.75%)

Farmers and Merchants Bank, Manchester, Georgi a
N.O.W. Account (2.55%)

Greenville Banking Company, Greenvi 11 e, Georgi a
N.O.W. Account (2.60%)

Talbot State Bank, Woodland, Georgia
N.O.W. Account (2.75%)

Thomaston Federal Savings Bank, Thomaston, Georgi a
Passbook Savings Account (3.00%)

OTHER Petty Cash

13,200.42 501. 00
13,701.42

6,358.54 96,514.75

344,906.12

219,313.99

28,411.79

3,050.59

698,555.78

110. 00 712,367.20

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

PINE MOUNTAIN REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

Georgi a State Financing and Investment Commission Reimbursement on Construction Projects
local Sources City Governments
Greenvi 11 e Thomaston

GOVERNMENTAL FUND TYPES

GENERAL FUND

CAP ITAL PROJECTS
FUND

TOTAL

90,761.45 $ 90,761.45

550. 00 366. 3B

550. 00 366.3B

916.3B $ 90,761.45 $ 91,677.83

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE "4"

AGENCY /FUND! NG
GRANTS Educ ati on, Georgi a Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Medi a Center and Library Equipment
Financing and Investment Commission. Georgi a State Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

201,550.85 40,969.00 35,369.00

73,601.46

201,550.85 40,969.00 35,369.00
73,601.46

554,360.45

554,360.45

277,888.85$ 73,601.46 $ 554,360.45

905,850.76

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL ANO OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE "5"

LOCAL SOURCES Boards of Education Meriwether County Talbot County Taylor County Upson County
City Governments Butler Green vi 11 e Manchester Reynalds Talbot ton
Thomaston Woodland
County Governments Boards of Cammi ssi oners Meri wet her Talbot Taylor Upson
OTHER SOURCES Book Sal es Donati ans Equipment Sal es Fines and Fees Interest Earned Lost and Damaged Books Photocopy Sal es

GOVERNMENTAL FUND TYPES
-------- ---- -- -- -- ------- ---

CAP ITAL

GENERAL

PROJECTS

FUND

FUND

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

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

6,420.00 3,000.00 4,378.00 12,042.00
6,500.00 13,000.00 32,700.00
7,000.00 1,200.00 44,636.50 1,000.00

6,420.00 3,000.00 4,378.00 12,042.00
6,500.00 13,000.00 32,700.00
7,000.00 1,200.00 44,636.50 1,000.00

32,750.00
7,500.00 $
6,000.00
44,636.52

10,000.00

32,750.00 17,500.00
6,000.00 44,636.52

1,148.33 6,848.41
440. 00 6,229.86 1,637.20
488. 03 1,868.78
-------------

20,873.39 10,827.08
-------------

1,148.33 27,721.80
440. 00 6,229.86 12,464.28
488. 03 1,868.78
-------------

241,423 63

41,700.47 $ 283,124.10

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

PINE MOUNTAIN 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 Supplies Library Books and Materials Utilities Communication and Insurance Other Expenditures
Nonoperating Costs Equipment
Tota 1 Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

299,876.20 75,073.09 4,201.54 725. 00 25,021.33 16,032.49 45,161.63 26,414.76 14,572.29 4,398.01

53 76
5,644.08 13,635.93 11,182.99
800. 00

299,876.20 75,073.09 4,255.30 725. 00 30,665.41 29,668.42 56,344.62 26,414.76 15,372.29 4,398.01

1,765.50

67,054.34

68,819.84

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

513,241.84 $

98,371.10

611,612.94

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

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

PINE MOUNTAIN REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30 1994
BOARD MEMBER ADDRESS
Mrs. Ann Warrior, Chairperson (*) 901 Atlantic Street Manchester. Georgi a 31816
Mrs. Meg Bailey, Vice-Chairperson (*) 673 Pine Glen Drive Thomaston, Georgi a 30286
Mrs. Wynel 1 Cosey (*) P. 0. Box 550 Butler, Georgia 31006-0550
Hrs. Carolyn Kilby (*) Route 2, Box 53 Woodbury, Georgi a 30293
Mrs. Doris Hammock (*) P. 0. Box 101 Thomaston, Georgi a 30286
Mrs. Dora Terry (*) P. 0. Box 572 Green vi 11 e, Georgi a 30222 Mrs. Mardene Willis (*) Route 1, Box 39 Talbotton, Georgia 31827
(*) Denotes Board Heinbers Serving as of June 30, 1994

SCHEDULE "7"

See notes to the general purpose fi nanc i a1 statements. - 26 -

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30 1994

SCHEDULE "8"

PERSONNEL
A1exander, Bragg, Bulloch, Cannon, Cole, Cook, Davis, El 1i ngton, Gee, Gordon, Grace, Harris, Harvey, Higgins, Holmes, Holmes, Ingram, Knight, Li pscamb, Mclane, Phipps, Rasbury. Rasmussen. Rasmussen, Seigler, Strickland, Strickland, Thomas, Wimberly, Youl es,

Juanita J. Vicki Goss Peggy S. Betty S. Kerrie D. Frances Melvin L. Christine M. Charles B. Victoria A. Barbara E. Johnnie P. Curtis Susan E. Geraldine B. Mary G. Christine G. Carol 0. Kervin B. Ann T. Emily J. Kay C. Caryn 0. Mary Ann Michael E. Robbie H. Saundra L. Boni ta J. Carol M. Kathryn E.

POSITION
Library Assist ant Library Assist ant Administrative Assistant Technical Services Assistant Library Assist ant Branch Manager Custodian Children's Associate Di rector Library Assistant Library Assistant Library Assist ant Custodian Librarian Branch Manager Branch Manager Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assist ant Librarian Branch Manager Library Assistant Librarian Library Assistant Librarian

SALARIES

TRAVEL

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

2,018.23 2,257.65 18,66D.OO 7,472.81 8,733.06 13,200.0D 6,086.32 2,747.03 37,933.56
76.14 274.05 4,309.42 2,340.69 27,090.90 16,272.00 8,681.58 11,016.DO 7,219.26 3,927.75 663. 84 3,429.54 1,360.68
87 .00 6,110.56 34,801.20 6,618.03
195.50 28,798.80
121.80 37,372.80
-------------

!DO. 62 135. 79
35. 28 2,019.34
17 43 362 74
29 .95
1,119.01 8.82
227. 78 198 .54
-------------

299,876.20 $ =============

4,255.30

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

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
June 28, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Pine Mountain 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 of the Pine Mountain Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated June 28, 1995. This report was qualified for various departures 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 of the United States. Those standards require that we plan and perfom1 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 Pine Mountain 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 perfom1ed tests of the Library's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our 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 Pine Mountain 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,
L~
Claude L. Vickers State Auditor
CLV:gp 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Pine Mountain 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 of the Pine Mountain Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated June 28, 1995. This report was qualified for various departures 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 its Federal financial assistance program, which is listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

( 1) Political Activity

(4) Federal Financial Reports

(2) Civil Rights

(5) Audit Follow-Up/Resolution

(3) Cash Management

(6) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office of Management 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 of an opinion on the 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 program. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule of Findings and Improper or Questioned Costs.
We considered this material instance of noncompliance in forming our opinion on whether the Pine Mountain Regional Library 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 June 28, 1995, on those financial statements.
Except as described above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the Pine Mountain 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 of our procedures disclosed an immaterial instance of noncompliance 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.

CLV:gp 94CRL-70

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
June 28, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the Pine Mountain 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 of the Pine Mountain Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated June 28, 1995. This report was qualified for various departures 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 of the Pine Mountain Regional Library and with our consideration of the Library's internal control structure used to administer its Federal financial assistance program, as required by Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to the nonmajor Federal financial assistance program 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 governing:
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 Library's compliance with these requirements. Accordingly, we do not express such an opinion.
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 Pine Mountain Regional Library had not complied, in all material respects, with those requirements.
94CRL-120

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,
tt~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-120

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR {404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Pine Mountain 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 of the Pine Mountain Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated June 28, 1995. This report was qualified for various departures 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 of the United States. 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.
In planning and performing our audit of the general purpose financial statements of the Pine Mountain Regional Library for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Pine Mountain 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 ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3

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 of the design and operation of policies 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:

(1) 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 of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk.

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 of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the 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 statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(1) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more of the 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 all of the reportable conditions disclosed above are also considered to be material weaknesses.

94ICL-3

These conditions were considered in detennining the nature, timing, and extent of the procedures to be performed in our audit ofthe Pine Mountain Regional Library's financial statements and this report does not affect our report thereon dated June 28, 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,
{:7~
Claude L. Vickers State Auditor
CLV:gp 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
June 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Pine Mountain 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 of the Pine Mountain Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated June 28, 1995. This report was qualified for various departures 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 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 and about whether the Pine Mountain Regional Library complied with Jaws 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 Library'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 of internal 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 of the general purpose financial statements in a separate report dated June 28, 1995.

94ICL-16

The management of the Pine Mountain 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 of any 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 of the design and operation of policies 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

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

(1) Types of Services Allowed or Unallowed
(2) Applicable Special Tests and Provisions

(4) Federal Financial Reports (5) Audit Follow-Up/Resolution

(3) Other Requirement Claims for Advances and Reimbursements

(6) Administrative Requirements

For all of the internal control structure categories listed above, we obtained an understanding of the 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 Pine Mountain Regional Library had no major Federal financial assistance programs and expended 100%, ofits total Federal financial assistance under the following nonmajor Federal financial assistance program:

Library Services and Construction Act, Title I

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 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.

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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 of Certified 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 described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
( 1) Cash Management
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the 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 of performing 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 of Findings and Improper or Questioned Costs, the following control category includes reportable conditions that are also considered to be material weaknesses:
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 of public record.
Respectfully submitted,
t?~~
Claude L. Vickers State Auditor
CLV:gp 94ICL-16

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

PINE MOUNTA1N REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statements Finding Resolved Audit Control Number 6992-93-03
The audit report for the year ended June 30, 1993, disclosed that the Pine Mountain Regional Library did not have its bank balances fully collateralized as required by the Official Code of Georgia Annotated Section 45-812. For the year under review, audit tests of the Library's bank balances indicated that the Library complied with the State laws governing collateralization of cash deposits.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6992-93-01
The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, no improvements in separation of employee duties were noted. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: The Federal financial assistance program listed in the Schedule of Federal Financial Assistance, Schedule "1" of this report is affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Materi;tl Weakness Audit Control Number 6992-93-02
The audit report for the year ended June 30, 1993, noted that the Library had chosen not to maintain a systemwide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the management of the Pine Mountain Regional 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 implement and maintain a General Fixed Assets Account

PINE MOUNTAIN 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 6992-93-02
Group for inclusion in the accounting records. Subsidiary records should be established for land, buildings, equipment and inexhaustible collections and books owned by the Library Board. Detailed records should be maintained of all additions and deletions for each class of fixed assets that comprise this group.
CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 6992-94-01
A review of cash management procedures for the Library Services and Construction Act - Title I Program (CFDA 84.034) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1994, the program had an average cash balance of$3,820.24 with excessive ending monthly cash balances in nine months. The excessive cash balances are a result ofmanagement's failure to adequately forecast the cash needs of this program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6992-94-02
Property management records maintained by the Library for the Library Services and Construction Act - Title I Program (CFDA 84.034) were incomplete and failed to meet the property management standards as outlined in 7 CFR 3015.169. This condition occurred because management disregarded the provisions of GFAH. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in 7 CFR 3015.169. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical

PINE MOUNTA1N 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 6992-94-02
inventory counts should be made and reconciled to the property records to ensure the accuracy of inventory records.
Note: The Pine Mountain Regional Library was provided an opportunity to include pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusion in this report.