Audit report, Pine Mountain Regional Library, Manchester, Georgia, year ended June 30, 1997

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AUDIT REPORT PINE MOUNTAIN REGIONAL LIBRARY
MANCHESTER, GEORGIA YEAR ENDED JUNE 30, 1997 "----
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

PINE MOUNTAIN REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

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

SCHEDULE OF REVENUE

1

STATE

20

2

FEDERAL

21

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

22

4 SCHEDULE OF SALARIES AND TRAVEL

23

PINE MOUNTAIN REGIONAL LffiRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 10, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education
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 accompanying general-purpose financial statements of the Pine Mountain Regional Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Pine Mountain Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose fmancial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general-purpose financial statements of the Library did not contain a General Fixed Assets
Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general-purpose financial statements ofthis variance or omission have not been determined, but are believed to be material.

97ARL-42

In our opinion, except for the effects on the general-purpose fmancial statements of the matter referred to in the third paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Pine Mountain Regional Library as of June 30, 1997, and the results of its 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 performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Pine Mountain Regional Library taken as a whole. The accompanying combining statements (Exhibits G through J) and the financial scheduies (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit 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 of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.

CLV:ds 97ARL-42

Claude L. Vickers State Auditor

PINE MOUNTAIN REGIONAL LffiRARY

PINE MOUNTAIN REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1997

ASSETS Cash and Cash Equivalents Accounts Receivable

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 34,619,30 $

545.50 $ 57,086.55

7,500,00

106.16

Total Assets

$ 42,119.30 $

651.66 $ 57,086.55

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balances 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

$ 1,341.00 $ 20.82
$ 1,361.82 $

237.48 414.18
651.66

$ 40,757.48 $ $ 40,757.48 $

$ 0.00 0.00 $

57,086.55 0.00
57,086.55

Total Liabilities and Fund Equity

$ 42,119.30 $

651.66 $ 57,086.55

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

EXHIBIT "A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

TOTALS
(Memorandum Only)
JUNE 30,1997 JUNE 30,1996

$

3,337.94 $

95,589.29 $

186,698.79

7,606.16

162,012.50

$ ====3:f,3~3;,;.,7:.;,.94~ $

103,195.45 $

348,711.29

$

1,578.48 $

5,567.66

435.00

0.16

$

2,013.48 $ _ _...:5::.J.:,5~6;.;..7:.:::.8=-2

$

6,549.86

$

1,000.00 $

1,000.00

1,000.00

57,086.55

287,381.85

2,337.94

43,095.42

48,211.76

$

3,337.94 $

101,181.97 $

343,143.47

$====3=:,3=3..7...=9.4.. $

103,195.45 $

348,711.29

-3-

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

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "C"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE 30,1997

REVENUES
State Funds Federal Funds 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
Other Sources
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY L 1996
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 318,398,00 $ 271,969.94 282,939,00 303,785.48
$ 601,337,00 $ 575,755.42

$ 161,178.83 $ 136,536.55 65,788.40 64,649.26 172,822.99 177,382.42
201,655.01 146,842,14 33,354.77 59,307.49
$ 634,800.00 $ 584,717.86
$ -33,463.00 $ -8,962.44

15,100,00

3,747.52

$ -18,363.00 $ -5,214.92 45,972,56 45,972.40 12.84

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 6,985,82 $ 17,000,00 14,023,09
$ 17,000,00 $ 21,008,91

$ 23,549.86 $ 27,558.77

$ 23,549.86 $ 27,558.77 $ -6,549.86 $ -6,549.86

$ -6,549.86 $ -6,549.86

6,549.86

6,549.86

-888.07

FUND BALANCE JUNE 30,1997

$ 27,622.40 $ 40,757.48

$ -888.07 $ =====0=:.0=0

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

PINE MOUNTAIN REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1997

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded Operating Income
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1

HIGHTOWER MEMORIAL LIBRARY FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1997 JUNE 3D, 1996

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

98.58

98.58

95.92

$

98.58 $

98.58 $

95.92

3,239.36

3,239.36

3,143.44

FUND BALANCE JUNE 30

$

3,337.94 $

3,337.94 $ =-==3,=23=9=.36=

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

PINE MOUNTAIN REGIONAL LIBRARY STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30,1997

EXHIBIT"E"

Cash Flows from Operating Activities: None Recorded
Cash Flows from Investing Activities: Interest Received
Net Increase in Cash
Cash and Cash Equivalents - July 1

HIGHTOWER MEMORIAL LIBRARY FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1997 JUNE 30, 1996

$

0,00 $

0.00 $

0,00

98,58

98,58

95.92

$

98,58 $

98.58 $

95.92

3,239.36

3,239.36

3,143.44

Cash and Cash Equivalents - June 30

$ ===3=,3=3..7..=,9.4.... $

3,337.94 $ ===3~.2=3=9.=36=

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

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PINE MOUNTAIN REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Pine Mountain Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library.
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 of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. Based upon the application ofthe above criteria, the Pine Mountain Regional Library is determined to be a joint venture.
FUND ACCOUNTING
The Library uses funds to report on its fmancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial 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 confonn to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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:
-9-

PINE MOUNTAIN REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FUND - the fund used to account for all fmancial 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 ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction ofmajor capital facilities.
FIDUCIARY FUND 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. This fund includes:
NONEXPENDABLETRUSTFUND 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 fmancial 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 (Le., revenues and other financing sources) and decreases (Le., 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.
Nonexpendable trust funds are accounted for on a flow ofeconomic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation 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
- 10-

PINE MOUNTAIN REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 the nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The 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 of budget 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 Department of Technical and Adult Education as a part ofthe 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 of deposits in authorized fmancial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been 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.

- 11 -

PINE MOUNTAIN REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

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 of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated 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 of these financial statements.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers 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 fmancial analysis. Data in these columns do not present financial position, results ofoperations 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe I'ublic funds being secured after the deduction of the 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 anyone of or any combination of the following:
- 12 -

PINE MOUNTAIN REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1997

Note 2: DEPOSITS
(l) 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 of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State ofGeorgia, 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 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.
CATEGORIZAnON OF DEPOSITS At June 30, 1997, the bank balances were $111,784.26. The bank balances were entirely covered by Federal depository insurance.
Note 3: RISK MANAGEMENT
The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation.
The Library has obtained commercial insurance for risk of loss associated with torts, assets and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.
The Library has elected to self-insure for all losses related to natural disaster. In addition, the Library has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years.
- 13 -

PINE MOUNTAIN REGIONAL LmRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 3: RISK MANAGEMENT

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 expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

1996 1997

Beginning ofYear Liability

Claims and Changes in Estimates

$

0.00 $

0.00 $

$

0.00 $

1,232.00 $

Claims Paid

End ofYear Liability

0.00 $

0.00

1,232.00 $

0.00

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

Position Covered

Amount

All Employees

$ 50,000.00

Note 4: 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 fmancial position.

Note 5: 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 one year, and have given adequate notice ofresignation. See Note 1- Compensated Absences

Note 6: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION . Substantially all librarians and clerical personnel employed by regional and county libraries are covered by
the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defmed benefit

- 14-

PINE MOUNTAIN REGIONAL LffiRARY

EXlllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 6: RETIREMENT PLANS

pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 36,457.60 $ 36,020.31 $ 35,641.08

- 15 -

PINE MOUNTAIN REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

LOTTERY PROGRAM

FEDERAL PROGRAM

TOTALS JUNE 30,1997 JUNE 30,1996

$

414.18 $

131,32 $

545,50 $

1,877.57

106,16

106.16

4,800.00

$

414.18 $

237.48 $

651.66 $ _ _,;,:6,.-6.7.7...5..7

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balance Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

$

$

414.18

$

414.18 $

237.48 $ 237.48 $

237.48 $ 414.18
651.66 $

127.71 127.71

$

0.00 $

$

0.00 $

0.00 $ 0.00 $

$

414.18 $

237.48 $

$ 0.00 0.00 $

6,549.86 0.00
6,549.86

651.66 $ _ _,;,:6,.6..7...7...5..7..

See notes to the general purpose financial statements.

- 16-

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30, 1997

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

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30,1996

$ 6,985.82

$

$ 14,023.09

$ 6,985.82 $ 14,023.09 $

6,985.82 $ 14,023.09
21,008.91 $

10,000,00 17,000.00
27,000.00

$ 6,985.82 $ 20,572,95 $

$ 6,985.82 $ 20,572.95 $

$

0.00 $ -6,549.86 $

0.00

6,549.86

27,558.77 $
27,558,77 $ -6,549.86 $ 6,549.86

10,677,09 10,000.00
20,677.09
6,322.91
226.95

FUND BALANCE JUNE 30

$

0..0...0.. $ _ _......0....0..."'=0 $=======0...0..",=0 $=====6_,54=-9_.8.6...

See notes to the general purpose financial statements.

- 17 -

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Capital Outlay Projects
Unreserved Undesignated
Total Fund EqUity

PINE MOUNTAIN REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1997

EXHIBIT "I"

REYNOLDS PUBLIC LIBRARY

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS JUNE 30.1997 JUNE 30,1996

$

501.00 $

56,585.55 $

57.086.55 $

137,481.85

149.900.00

$

5_0_1._00~$

56,585.55 $

57,086.55 $ _ .....2..8_7..3._8.;,;1._85~

$

501.00 $

56,585.55 $

57.086.55 $

287.381.85

0.00

0.00

0.00

0.00

$

5,;,,01_.0;;,;0~$

5_6;,j,;;15_85_.5_5~$

57 p86.55 $ _-.:2;;,;8;,;.73.8.1';';',;;;85.

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, 1997

EXHIBIT "J"

FUND BALANCE JUNE 30

$

501,00 $

5.6..,5.8..5.,5..5.. $

57,086.55 $ _~2;,;8_7_,3_81,;,;,.8_5...

See notes to the general purpose financial statements,

-19-

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operation Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 349,768.00 $ 349,768.00

$ 193,195,94 42,187,00 36,587,00
_ _ _ _ _ $_-.:6~19~8:::::5:.:::,8::..2

193,195,94 42,187,00 36,587,00

$ 271,969,94 $

6,985.82 $ 349,768,00 $ 628,723.76

See notes to the general purpose financial statements,

- 20-

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30,1997
AGENCY/FUNDING GRANT Education, U, S, Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ====:;:;..14=,0...2.=3,=.0,;,,9

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

EXPENDITURES
Program Services Supplies

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF EXPENDITURES LOTIERY PROGRAM YEAR ENDED JUNE 3D, 1997

SCHEDULE "3"
ASSISTIVE TECHNOLOGY $=====6::l::i,9=85=,8=:,2

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,1997

SCHEDULE "4"

PERSONNEL

Alexander, Blackston, Brown, Bulloch, Cannon, Cherry, Chituck, Cole, Crawford, Dillingham, Fuller, Gee, Greathouse, Hagler, Hamler, Hardnett, Harris, Harvey, Holmes, Holmes, Ingram, Jones, Kilby, Kilby, Knight, LOUder, Lyle, Palmore, Perrone, Phipps, Railey, Rakhshani, Rasbury, Roquemore, Short, Thomas, Tucker, Wimberly, Youles, Young,

J. Juanita Anna F. Tramine Demorris PeggyS. Betty S, Johnny Wayne Tresa Diana Kerrie D. Estell Lillie O. Brenda J. Charles B. Loraine WillieC. Angela D, Tara Y. Johnnie P. Curtis Geraldine B. MaryG. Christine G. Paul A. Cynthia S. Kenneth Gill Carol D. Shirley M. Debbie A. Kathryn A. Linda F. EmilyJ. David L. Carla Diane KayC. Dynecia J. Stephanie Maria Bonita J. Erika Carol M. Kathryn E. Virginia P.

Total Cash Basis

Accruals June 30,1996 June 30, 1997

POSITION
Library Assistant Library Assistant Custodian Administrative Assistant Technical Services Assistant Custodian Library Assistant Library Assistant Branch Manager Library Assistant Technical Services Assistant Director Branch Manager Library Assistant Library Assistant Library Assistant Library Assistant Custodian Branch Manager Branch Manager Library Assistant Branch Manager Librarian Library Assistant Library Assistant Library Assistant Library Assistant Librarian Youth Coordinator Custodian Library Assistant Custodian Library Assistant Library Assistant Branch Manager Librarian Librarian Library Assistant Library Assistant Librarian Branch Manager

SALARIES

TRAVEL

$

46.11

548.62

1,912.50

22,272.00

10,104.00

484.50

83.13

10,914.14 $

1,293.88

1,362.50

3,448.61

46,767.52

12,837.00

877.50

1,355.00

3,651.35

7,225.48

2,008.23

18,300.00

10,833.46

13,500.00

6,380.00

30,797.60

9,040.11

7,928.18

3,587.01

6,812.28

10,674.40

123.76

4,546.50

3,016.27

6,280.00

1,506.96

3,927.50

9,353.23

38,271.40

4,956.00

240.00

25,399,86

1,018.36

27.00 8.00
2,477.28 40.00 8.00 38.00
819.81
14.00 225.00
16.00
494.75 256.25 188.75

$ 343,684.95 $

4,612.84

-542.50 8.00

See notes to the general purpose financial statements.

- 23-

$ 343,684.95 $==4=,O=7=8,;,;;.3;,=:4

SECTIONll FINDINGS AND QUESTIONED COSTS

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Further Action Not Warranted Finding Control Number 6992-94-01
The audit report for the year ended June 30, 1996, stated that a review of cash management procedures for the Library Services and Construction Act - Title I Prograni (CFDA 84.034) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures and Estimated Requirements for Grant Funds" were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. Further action is not warranted by the Library. However, procedures should be implemented to minimize the time elapsing between the transfer of funds from the State of Georgia and disbursement of such funds by the Library.
PRIOR YEARJCURRENT YEAR
CASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIESIDISBURSEMENTS Inadequate Separation of Duties Finding Control Number 6992-93-01
The audit report for the year ended June 30, 1996, noted that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. For the year under review, the Library made some improvements regarding separation of employee's duties but still did not achieve an adequate degree of separation of duties in the following area:
The bank reconciliation function was not separated from the check preparation and check distribution functions; and the check preparation function was not separated from recording of cash disbursements on the accounting records.
These conditions were a result of management'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.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6992-93-02
The audit report for the year ended June 30, 1996, 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
- 1-

PINE MOUNTAIN REGIONAL LffiRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
ProORYE~CURRENTYEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6992-93-02 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.
-2-