Audit report, Pine Mountain Regional Library, Manchester, Georgia, year ended June 30, 1995

GA
A?Joo .RI
R4b
p3 1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT PINE MOUNTAIN REGIONAL LIBRARY
MANCHESTER. GEORGIA YEAR ENDED JUNE 30, 1995

PINE MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIIlBITS

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

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

4

D

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN

FUND BALANCES

FIDUCIARYFUNDTYPE-NONEXPENDABLETRUSTFUND

5

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

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

20

SCHEDULES

1 CASH AND CASH EQUNALENTS

22

SCHEDULE OF REVENUE

2

STATE

23

3

FEDERAL

24

PINE MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDffiONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

4

LOCAL AND OTHER

25

SCHEDULE OF EXPENDITURES BY OBJECT

5

GENERAL AND SPECIAL REVENUE FUNDS

26

6

.LOTTERY PROGRAMS

27

7 MEMBERSlilP AND TRAVEL OF LIBRARY BOARD

28

8 SCHEDULE OF SALARIES AND TRAVEL

29

SECTION IT 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
August 9, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Pine Mountain Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Pine Mountain Regional Library, as ofand for the year ended June 30, 1995, as listed in the table ofcontents. These financial statements are the responsibility ofthe Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial 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 descnbed in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effect on the general purpose financial statements of this variance or omission has not been determined, but is believed to be material.

95ARL-42

In our opinion, except for the effects on the general purpose financial statements ofthe matter 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 ofJune 30, 1995, and the results ofits operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Pine Mountain Regional Library taken as a whole. The combining statements (Exhibits G through J) and the financial schedules (Schedules I through 9), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements ofthe 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 ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:cm 95ARL-42

PINE MOUNTAIN REGIONAL LIBRARY - 1-

PINE MOUNTAIN REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND lYPES JUNE30 1995

MSm
C8sh and C8sh Equivalents Accounts Receivable
Total Assels

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

FIDUCIARY FUNOlYPE TRUST FUND

TOTALS
(Memorandum Onrtl
JUNE 30, 1995 JUNE 30, 1994

s

65,563.58 S

726.99 S 452,588.68 S

3,143.44 S

522,022.69 S

712,367.20

91,6TT.83

s

65,563.58 S

726.99 S 452,588.68 S

3143.44 S

522,022.69 S

804,045.03

LIMILIIIES ~I:! FUN!:! EQU!D'.

LIMILIIIES

Accounts Payable

s

Expired Grant Balances Payable

Contracts Payable

Retainages Payable

Deferred Rewnue

Total Liabilities

s

FUN[) EQU!D'.

Fund Balances Reserved For Continuation c:I Federal Programs For Endowment Colpus For Capital outlay Projects

Un1'81e1119d

Undesignated

s

Total Fund Equity

$

2,559.04 s
2,559.04 S
s s
63,004.54 63,004.54 S

s Total Liabilities and Fund Equity

65,563.58 S

500.04
s
500.04 S

11,155.85 11,155.85

226.95 $
226.95 S 0.00
226.95 S

s
441,432.83 441,432.83 S
0.00 441,432.83 S

726.99 $ 452,588.68 S

s

2,559.04 S

53,445.08

500.04

57,682.22

11,155.85

35,814.93

31,398.54

s

14214.93 $

178,340.TT

$ 1,000.00
1,000.00 $ 2143.44 3143.44 $

226.95 S 1,000.00 441,432.83
442,659.78 S
65,147.98
507,807.76 $

1,943.06 1,000.00 592,453.51
595,396.57
30,307.69
625,704.26

3143.44 $

522,022.69 $

804,045.03

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

PINE MOUNTAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

EXHIBITe

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS
(Memorandum On~ YEAR ENDED
JUNE 3011995 JUNE 3011994

REVENUES

State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay

$ 296,314.24 $ 2701560.75
$ 5661874.99 $

31,998.50 $ 18,860.36
501858.86 $

1,194,333.55 $ 101457.68
11204.791.23 $

1,522,646.29 $ 18,860.36
2811018.43
118221525.oa s

905,850.76 25,706.86
2831124.10
n 112141681.

$ 169,225.42 $ 51,385.09 138,750.90 140,063.10 37,708.85

21,176.43

$

31,392.73 $ 113501811.91

190,401.85 $ 51,385.09 138,750.90 171,455.83 37,708.85
113501811.91

165,811.56 51,299.09 143,701.35 129,884.64 52,096.06 5551496.37

Total Expenditures

$ 5371133.36 $

521569.16 $ 113501811.91 $ 119401514.43 $ 110981289.07

Excess of Revenues over (under) Expenditures

$

29.741.63 $

-1.710.30 $ -1461020.68 $

-1171989.35 $

1161392.65

OTHER FINANCING SQURCES (USES)

Operating Transfers In Operating Transfers Out

$

5,005.81

$

-5.81 $

$ -51000.00

5,005.81 $ -51005.81

5.81 -5.81

Total Other Financing Sources

(Uses)

$

Excess of Revenues and Other Financing

Sources over (under) Expenditures

Other Fill!'ncing Uses

$

51005.81 $ 34,747.44 $

-5.81 $

-51000.00 $

0.00 $

-1,716.11 $ -151,020.68 $

-117,989.35 $

0.00 116,392.65

fUNQ BALANCE JULY 1

28,257.10

1,943.06

592,453.51

622,653.67

505,964.47

Residual Equity Transfer

296.55

FUND BALANCE JUNE 30

$

631004.54 $

226.95 $ 4411432.83 $

5041664.32 $

6221653.67

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

PINE MOUNTAIN REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBrrc

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994

GENERAL FUND

BUDGET

ACTUAL

$ 300,121.88 $ 296,314.24

2531518.12

270,560.75

$ 5531640.00 $ 5661874.99

$ 162,432.83 $ 51,734.36 153,934.60 158,322.39 27,475.78

$ 5531899.96 $

$

-259.96 $

169,225.42 51,385.09 138,750.90 140,063.10 37?08.85
5371133.36
29,741.63

$

5,005.81

$

5,005.81

$

-259.96 $ 34,747.44

28,262.91

28,257.10

FUND BALANCE JUNE 30. 1995

$ 28,002.95 $ 63,004.54

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 31,998.50

$ 19,378.93

18,860.36

$ 191378.93 $ 50,858.86

$ 43,120.91 $ 21,176.43

7,811.62 499.25

31,392.73

$ 51,431.78 $ $ -32,052.85 $

52,569.16 -1,710.30

$

-5.81

$

-5.81

$ -32,052.85 $ 33,335.79

-1,716.11 1,943.06

$

s_ _ _ 1,282.94

226i i ,i,i,i .95..,.

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

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "D"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 1995

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

ENDOWMENT FUND
HIGHTOWER MEMORIAL
LIBRARY FUND

TOTALS ~Memorandum Onl~}
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

$

92.85 $

92.85 $

92.39

3,050.59

3,050.59

3,254.75

-296.55

$

3,143.44 $

3, 143.44 $ = = =3,0=50.=59

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

PINE MOUNTAIN REGIONAL LIBRARY STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1995

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

ENDOWMENT FUND
HIGHTOWER MEMORIAL LIBRARY FUND

TOTALS {Memorandum Onli}
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

0.00 $

0.00

$

92.85 $

92.85 $

92.39

$

92.85 $

92.85 $

92.39

$

0.00 $

0.00 $

-296.55

$

3,050.59 $

3,050.59 $

3,254.75

Cash and Cash Equivalents - June 30

$

3,143.44 $

3,143.44 $ ======3=,0=5=0=.5=9=

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

PINE MOUNTAIN REGIONAL LIBRARY

EXlilBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Pine Mountain Regional Library operates pursuant to Official Code ofGeorgia 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 ofthe departures from generally accepted accounting principles disclosed in these notes, the :financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. 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 ofthe above criteria, the Pine Mountain Regional Library is determined to be a joint venture.
The Library Board consists ofseven 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 of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related.to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
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

EXlllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general purpose :financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 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 organiz.ations, other government units and/or other funds. This fund includes:
NONEXPENDABLE TRUST FUND . Hightower Memorial Library Fund - the fund used to account for an endowment of which the corpus
is to be invested and preserved intact with the resultant income to be used to provide 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 spendabl~ 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, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis ofaccounting 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 ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grantsand 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
I
The Pine Mountain Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part of the Library's annual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including certificates of deposit, savings and N.0.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

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
INTERFUND TRANSACTIONS
The Library has the following types ofinterfund 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.
Operating transfen are recorded for all interfund transactions other than 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 ofthis data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount 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.

- 10 -

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS
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 ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $544,448.87. The amounts of the total bank balances are classified into three categories of credit risk:
Category I - 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.)

- 11 -

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

The Library's deposits are classified by risk category at June 30, 1995, as follows:
Risk Category 1
2 3
Total
Note 3: RISK MANAGEMENT

Bank Balance $ 239,447.57
305,001.30 0.00
$ 544,448 87

The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.

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

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

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. During fiscal year 1994 and 1995, no claims were paid.

Note 4: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as ofJune 30, 1995, together with funding available:

Project 92-SB-005 94-SB-007

Unearned Executed Contracts $ 6,717.54 336,337.24 $ 343.054 78

Fundin Availabfe From State
$ 109,234.00 $ 109,234.00

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

- 12 -

PINE MOUNTAIN REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 ofannual 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 in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless ofage, or after 10 years of service and attainment ofage 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 ofyears ofcreditable 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, 1995

Note 7: RETIREMENT PLANS

The Library's payroll for employees covered by TRS for the year ended June 30, 1995, was $301,789.48; total payroll was $325,644.26.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $50,730.93, of which $35,641.08 was made by the Library and $15,089.85 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount ofthe 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, 1994, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058,958 000,00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. 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, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of$35,641.08 was actuarially determined and represented .0063% oftotal contributions made by all participating employers.

- 14 -

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TR.S'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, 1995.

- 15 -

PINE MOUNTAIN REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

LOTTERY PROGRAMS

LIBRARY SERVICES
AND
CONSTRUCTION ACT TITLEI PUBLIC
LIBRARY SERVICES

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

500.04 $

226.95 $

----- 726.99 $

72,091.19

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

Expired Grant Balances Payable

$

Deferred Revenue

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

Unreserved

Undesignated

$

Total Fund Equity

$

500.04 500.04
$ 0.00 0.00 $

$

38,749.59

$

500.04

31,398.54

$

500.04 $

70,148.13

226.95 $ 0.00
226.95 $

226.95 $ 0.00
226.95 $

1,943.06 0.00
1,943.06

Total Liabilities and Fund Equity

$

500.04 $

s_ _ _ s___ 226.95

1_2_6_.9_9

12_,0_9_1_.1_9

See notes to the general purpose financial statements.

-16-

PINE MOUNTAIN REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1995

EXHIBIT ~H"

REVENUES
S1ateFunds Federal Funds
Total Revenues
EXPENDITURES
Current Program Services Circulation Administration
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

LOTTERY PROGRAMS

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC
LIBRARY SERVICES

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 31,998.50 $
$ 31,998.50 $

$ 18,860.36
18,860.36 $

31,998.50 $ 18,860.36
50,858.86 $

73,601.46 25,706.86
99,308.32

$

599.96 $

31,392.73

$ 31,992.69 $

$

5.81 $

$

-5.81

$

-5.81

$

0.00 $

0.00

20,576.47 $
20,576.47 $ -1,716.11 $

21,176.43 $ 31,392.73
52,569.16 $ -1,710.30 $

17,713.83 9,900.51 3,702.02 67,054.74
98,371.10
937.22

$

5.81

$

-5.81

$

-5.81 $

5.81

-1,716.11 $ 1,943.06

-1,716.11 $ 1,943.06

943.03 1,000.03

FUND BALANCE JUNE 30

$

0.00 $

226.95 $

226.95 s_ _.....l1._9_43_.oe_

See notes to the general purpose financial statements.

-17 -

PINE MOUNTAIN REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1995

ASSETS Cash and Cash Equivalents Accounts Receivable

REYNOLDS PUBLIC LIBRARY

GEORGIA STATE FINANCING

PROJECT

PROJECT

92-SB-004

92-SB-005

$

501.00 $

14,529.56 $

6,333.40

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

501.00 $

14,529.56 $ =======6'=33=3=.4=0

$

501.00 $

14,529.56 $

6,333.40

0.00

0.00

0.00

$

501.00 $

14,529.56 $ _ _ _6_,_,3_3_3_.4_0

Total Liabilities and Fund Equity

$

501.00 $

14,529.56 $ ===6=,3=3=3=.4=0

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

EXHIBIT"!"

AND INVESTMENT COMMISSION

PROJECT

PROJECT

94-SB-007

95-SB-009

TOTALS JUNE 30, 1995 JUNE 30, 1994

$ 405,001.30 $

26,223.42 $

452,588.68 $

606,333.32

90,761.45

$ 405,001.30 $

26,223.42 $

452,588.68 $ =====6=9=7'=094==7=.=7

$ _---'1"""-1,._15.;..;5.;..;.8_5_ $ _ _1_1,,_15_5_.8..;...5

$

__ __ $

_1_1_.,155.85

11,144.11 57,682.22 35,814.93

$

- - - - - 11,155.85 $

104,641.26

$ 393,845.45 $ 0.00
$ 393,845.45 $

26,223.42 $ 0.00
26,223.42 $

441,432.83 $

592,453.51

0.00

0.00

441,432.83 $ _ _5_9....,2,_45_3_.5_1

$ 405,001.30 $

26,223.42 $

452,588.68 $ ===6=9=7':::::::09=4=.7=7

-19-

PINE MOUNTAIN REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1995

REVENUES
State Funds Local and Other Funds
Total Revenues
EXPENDITURES Capital Outlay Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Operating Transfers Out
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REYNOLDS PUBLIC LIBRARY

GEORGIA STATE FINANCING

PROJECT

PROJECT

92-SB-004

92-SB-005

$

0.00

$ 211,230.55

$

1,913.54

$

0.00 $

1,913.54 $ 211,230.55

$

0.00 $

118,760.83 $

218,097.57

85,201.44

$

0.00 $

203,962.27 $

218,097.57

$

0.00 $ -202,048.73 $

-6,867.02

$

0.00 $ -202,048.73 $

-6,867.02

501.00

216,578.29

13,200.42

FUND BALANCE JUNE 30

$

501.00 $

14,529.56 $===6=,3=3=3.=40=

See notes to the general purpose financial statements.

-20-

EXHIBIT"J"

AND INVESTMENT COMMISSION

PROJECT

PROJECT

94-SB-007

95-SB-009

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 983,103.00

$ 1,194,333.55 $

7,757.51 $ _ _ _78_ 6.6_3

10,457.68

554,360.45 41,700.47

$ 990,860.51 $

786.63 $ 1,204,791.23 $ _ _5_96_,_06_0_.9_2

$ 884,128.62 $ 41,648.45

$ 925,777.07 $

$

65,083.44 $

2,975.00 $
2,975.00 $ -2,188.37 $

1,223,962.02 $ 126,849.89

486,676.13

1,350,811.91 $ _ _4_8_6_.,6-'--7""""6_.1__3

-146,020.68 $

109,384.79

-5,000.00

-5,000.00

$

60,083.44 $

333,762.01

-2,188.37 $ 28,411.79

-151,020.68 $ 592,453.51

109,384.79 483,068.72

$ 393,845.45 $

26,223.42 $

441,432.83 $ ==5=9=2,==45=3=.5==1

- 21 -

PINE MOUNTAIN REGIONAL LIBRARY CASH AND CASH EQUIVALENTS JUNE 30, 1995

SCHEDULE "1"

NONINTEREST BEARING ACCOUNT
Citizens State Bank, Butler, Georgia
Citizens State Bank, Reynolds, Georgia
INTEREST BEARING ACCOUNTS
Columbus Bank and Trust, Columbus, Georgia
Certificate of Deposit No. 69452 (5.07%) N.O.W. Account (3.55%)
Farmers and Merchants Bank, Manchester, Georgia
N.O.W. Account (2.55%)
Greenville Banking Company, Greenville, Georgia
N.O.W. Account (2.00%)
Talbot State Bank, Woodland, Georgia
N.O.W. Account (2.5.0%)
Thomaston Federal Savings Bank, Thomaston, Georgia
Passbook Savings Account (3.00%)
OTHER
Petty Cash

$ 6,333.40
501.00 $ 6,834.40

$ 6,634.64 59,530.93

405,001.30

14,529.56

26,223.42

3,143.44

515,063.29

125.00

$ 522,022.69

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Programs Distant Leaming Media Center and Library Equipment

$ 219,976.24 40,969.00 35,369.00
$

599.96 31,398.54

$ 219,976.24 40,969.00 35,369.00
599.96 31,398.54

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

- - - - - $ 1,205,489.40 1,205,489.40

$ 296,314.24 $ 31,998.50 $ 1,205,489.40 $ 1,533,802.14

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1995
AGENCY/FUNDING Through Georgia Department of Education Library Services and Construction Act Trtle 1 - Public Library Services

SCHEDULE "3"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ======1=8'=86=0=.3==6

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "4"

LOCAL SOURCES Boards of Education Meriwether County Talbot County Taylor County Upson County City Governments Butler Greenville Luthersville Manchester Reynolds Talbotton Thomaston Woodland County Governments Boards of Commissioners Meriwether Talbot Taylor Upson
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Sales and Services Book Sales Equipment Sales Photocopy Sales

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

6,420.00

3,300.00

4,826.86

12,000.00

8,600.00 15,000.00 12,000.00 32,700.00 8,000.00
1,200.00 26,312.79
1,000.00

$

6,420.00

3,300.00

4,826.86

12,000.00

8,600.00 15,000.00 12,000.00 32,700.00 8,000.00
1,200.00 26,312.79
1,000.00

35,878.50 9,000.00 8,000.00
69,312.06

35,878.50 9,000.00 8,000.00
69,312.06

9,334.68 3,630.54
1,966.74 $ 330.79
248.17 245.00 1,254.62

10,457.68

9,334.68 3,630.54 12,424.42
330.79
248.17 245.00 1,254.62

$ 270,560.75 $

10,457.68 $ 281,018.43

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE "5"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Travel of Board Members Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 325,644.26 78,674.48 6,022.48 $ 1,271.03 1,460.22 15,864.13 15,797.52 56,756.57 13,680.00 16,356.62 1,917.12 3,688.93

$ 12.81
10,912.45 7,329.69 8,514.21
1,137.00

325,644.26 78,674.48 6,035.29 1,271.03 1,460.22 26,776.58 23,127.21 65,270.78 13,680.00 16,356.62 1,917.12 4,825.93

24,663.00

24,663.00

Total Expenditures

$ 537,133.36 $

52,569.16 $ 589,702.52

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

EXPENDITURES
Operating Costs Supplies
Nonoperating Costs Equipment

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

TOTAL

$

599.96 $

6,729.73 $

7,329.69

24,663.00

24,663.00

Total Expenditures

$

599.96 $

31,392.73 $ ======31=,9=9=2=.6=9

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

PINE MOUNTAIN REGIONAL LIBRARY MEMBERSHIP AND TRAVEL OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1995
BOARD MEMBER ADDRESS
Mrs. Dora Terry, Chairperson(*) P. 0. Box572 Greenville, Georgia 30222
Mrs. Doris Hammock, Vice-Chairperson (*) P. 0. Box101 Thomaston, Georgia 30186
Mrs. Mary Hancock (*) Route 1, Box 400 Reynolds, Georgia 31076
Mrs. Thelma H. Jackson (*) 311 Seventh Avenue Manchester, Georgia 31816
Mrs. Barbara Kissell (*) 135 Loretta Lane Luthersville, Georgia 30251
Mrs. Mardene WIiiis (*) Route 1, Box 39 Talbotton, Georgia 31827
Mr. WIiiiam K Woodall (*) 324 West Main Street Thomaston, Georgia 30286
(*) Denotes Board Members Serving as of June 30, 1995

SCHEDULE...,..

$

1,460.22

$ ===1=,4=6=0.=22=

See notes to the general purpose financial statements.

- 28 -

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

PERSONNEL

Alexander, Bragg, Bulloch, Cannon, Cole, Cook, Crawford, Davis, Ellington, Gee, Gordon, Harris, Harvey, Higgins, Hollis, Holmes, Holmes, Ingram, Jenkins, Knight, Little, Lyle, Phipps, Rasbury, Rasmussen, Seigler, Strickland, Stringfellow, Thomas, Wimberly, Youles,

Juanita J. Vicki Goss Peggy$. BettyS. Kerrie D. Frances Estell Melvin L. Christine M. Charles 8. Victoria A. Johnnie P. Curtis Susan E. Seandra J. Geraldine 8. MaryH. Christine G. LavemeC. Carol D. Shirley J. Debbie A. EmilyJ. KayC. Mary Ann Michael E. Robbie H. Virginia T. Bonita J. Carol M. Kathryn E.

Total Cash Basis

Accruals June 30, 1994 June 30, 1995

POSITION
Library Assistant Library Assistant Administrative Assistant Technical Services Assistant Library Assistant Branch Manager Branch Manager Custodian Children's Associate Director Library Assistant Library Assistant Custodian Librarian Library Assistant Branch Manager Branch Manager Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Librarian Branch Manager Library Assistant Librarian Library Assistant Librarian

SALARIES

TRAVEL

$

2,352.90

5,958.40

19,219.80

7,825.63

8,977.53

14,256.00 $

1,705.20

6,161.28

230.56

39,475.00

158.78

4,674.62

2,390.10

34,466.50

247.95

16,760.16

9,325.20

11,346.48

1,629.08

7,419.50

2,638.30

2,744.87

3,539.16

1,368.96

6,336.50

37,295.20

6,838.00

17.40

31,198.80

156.60

38,929.80

118.44
2,944.98
723.50
20.66
26.46
1,894.17 46.62
203.07 318.59

$ 325,644.26 $

6,296.49

-297.32 36.12

See notes to the general purpose financial statements.

-29-

$

325,644.26 $ ====6=,0=35=.2=9

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION
Inadequate Inventory Records Finding Resolved Audit Control Number 6992-94-02
The audit report for the year ended June 30, 1994, disclosed that the 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 property management standards as set forth in Chapter 8 ofGeorgia Financial Accounting Handbook (GFAH). For the year under review, audit tests of the Library's inventory records indicated that an inventory system was implemented that provided for the identification of all equipment purchased as outlined in GFAH.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL)
Inadequate Separation ofDuties Audit Control Number 6992-93-01
The audit report for the year ended June 30, 1994, stated that the Library did not provide for adequate separation ofemployee duties in the perfonnance ofaccounting functions and related procedures. For the year under review, no improvement in adequate separation ofemployee duties was noted. This deficiency was a result of management's decision to limit the number ofadministrative staffmade responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.
GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group Audit Control Number 6992-93-02
The audit report for the year ended June 30, 1994, noted that the management of the Pine Mountain Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
-I-

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR CASH MANAGEMENT Excessive Cash Balances Audit Control Number 6992-94-0 I The audit report for the year ended June 30, 1994, stated that 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 ofExpenditures and Estimated Requirements for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit tests ofcash management procedures again revealed excessive cash balance accumulations by the Board. During fiscal year 1995, the program had an average cash balance of $1,389.78 with excessive ending monthly cash balances in seven months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs of the program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the Library.
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.
-2-