Pine Mountain Regional Library, Manchester, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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PINE MOUNTA1N REGIONAL LIBRARY -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

2

LOCAL

3 SCHEDULE OF SALARIES AND TRAVEL

Page
2 4 5 6 7 8
16 17
18
19 20

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

SECTION I FINANCIAL

w. USSl,;1.L

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S W., Suite 214 Atlanta, Georgia 30334-8400
July 15, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
and Director and Members of the 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 ofand for the year ended June 30, 2001, as listed in the table ofcontents. These general-purpose financial statements are the responsibility ofthe 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 described in the notes to the general-purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general-purpose financial statements ofthe 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.
2001ARL-42

The aggregate effects on the general-purpose financial statements ofthis variance or omission 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 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, 2001, and the results ofits operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
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 and H) and the financial schedules (Schedules 1 through 3), as listed in the table ofcontents, are presented for purposes ofadditional 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 such information is fairly stated, 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 506-24.
Respectfully submitted,
RWH:gp 2001ARL-42

PINE MOUNTAIN REGIONAL LIBRARY

PINE MOUNTAIN REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

$

84,475.08

9,029.92 $

549.79

4 350.00

251847.20

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Endowment Corpus For Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

97,855.00 $===2=6=,3=9=6=99=

$

15,099.81

$

3,228.43

10,747.39

802.89

$

4 031.32 $

251847.20

$

$

931823.68

$

931823 68 $

549.79 0.00
549 79

Total L1ab1lit1es and Fund Equity

$

97,855.00 $ =======2=6=13.9..6==99=

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

EXHIBIT "A"

FIDUCIARY FUND TYPE NON EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

3,239.90 $

87,714.98 $

156,003.77

9,579.71

9,097.74

30,197.20

16,200 00

$

3,239.90 $

127,491.89 $ ====18=1=,30=1=.51=

$

15,099.81

13,975.82 $

2,696.62

802.89

116.43

70,416.00

$

29,878.52 $

73,229.05

$

1,000.00 $

1,000.00 $

1000.00

549.79

525.35

2,239.90

96,063.58

106,547.11

$

3,239.90 $

97,613.37 $ _ _-'-10c.;;8;.i.;,0;..;.7=2....;.4.;;..6

$

3,239.90 $

127,491 .89 $ ==-==18=1=,3=0.1..._,5..,.1

-3-

PINE MOUNTAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2001

EXHIBIT"B"

REVENUES

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTALS

{Memorandum Onl:il YEAR ENDED

JUNE 301 2001

JUNE 30, 2000

State Funds Local Funds other Funds

$

387,979.30 $ 25,847.20 $

371,309.08

89,103 08

24 44

413,826.50 $ 371,309 08 89,127 52

354,699.79 325,990.84
57,507.45

Total Revenues

$

848,391 46 $ 25,871 64 $

874,263 10 $

738,198 08

EXPENDITURES

Current Public Services Technical Services Support SeMces Maintenance and Operations lnfonnatlon Technology

$

433,739.00

$

85,619 09

231,657 53

81,266.94 $ 51.694 39

35999

433,739 00 $ 85,619 09
231,657.53 132,961 33
35999

327,059.79 81,300.38 216,448 57 76,163.54

Total Expenditures

$

832,642.55 $ 51,694.39 $

884,336.94 $

700,972.28

Excess of Revenues over (under) Expenditures

$

15 748 91 $ -25,822 75 $

-10 073 84 $

37,225.80

OTHER FINANCING SOURCES (USES}

Operating Transfers In Operating Transfers Out

$ 25,84719 $

$

-25,847 19

25.847.19 -25 847 19

Total Other Financing Sources (Uses)

$

-25 847 19 $ 25,847 19 $

000

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Finanang

Uses

$

-10,098.28 $

2444 $

-10,073.84 $

37,225.80

FUND BALANCE JULY 1

103,921 96

525.35

104 447 31

67 221 51

FUND BALANCE JUNE 30

$

549 79 $

94 373 47 $--===10i=4=1c44,,,_7_3_1

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

PINE MOUNTAIN REGIONAL LIBRARY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL FUND
YEAR ENDED JUNE 30. 2001

EXHIBIT "C"

REVENUES
State Funds Local Funds Other Funds
Total Revenues EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 2000
Adjustments
FUND BALANCE JUNE 30. 2001

BUDGET

ACTUAL

$ 396,535.92 $ 387,979.30

381,124.81

371,309.08

46,064.95

89,103.08

$ 823,725 68 $ 848,391.46

$ 420,930.32 $ 433,739.00

87,538.94

85,619.09

259,938.32

231,657.53

92,608.10

81,266.94

33,126 00

359.99

$ 894,141.68 $ 832,642.55

$ -70,416.00 $

15,748.91

-25,847.19

$ -70,416.00 $ -10,098.28

0.00

103,921.96

70,416.00

$

0.00 $==9=3=,8=2=3=6=8

The notes to the general-purpose financial statements are an integral part of thrs 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, 2001

EXHIBIT"D"

OPERATING REVENUES Donations
OPERATING EXPENSES Maintenance and Operations Operating Income (Loss}
NONOPERATING REVENUES Interest Earned Total Income (Loss}
FUND BALANQE JULY 1
FUND BALANCE JUNE 30

HIGHTOWER MEMORIAL LIBRARY FUND

TOTALS

{Memorandum Onl:t'.l

YEAR ENDED

JUNE 301 2001

JUNE 301 2000

$

2 497.82 $

2 497 82 $

000

$

3 000 00 $

3 000 00 $

$

-502.18 $

-502.18 $

0.00 000

116 93

116 93

89.71

$

-385 25 $

-385 25 $

89.71

3 62515

3 625 15

3 53544

$

3 239 90 $

3,239.90 $====3=,6=2=5=1=5

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 lYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30. 2001

EXHIBIT"E"

Cash Flows from Operating Acilvibes: Cash Received from Donations Cash Paid for Maintenance and Operabons
Net Cash Used by Operabng Activities
Cash Flows from lnvesbng Acbv1bes Interest Received
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

HIGHTOWER MEMORIAL
LIBRARY FUND

TOTALS

{Memorandum Onl~}

YEAR ENDED

JUNE 30, 2001

JUNE 301 2000

$

2,497.82 $

2,497.82

-3,000.00

-3 000 00 $

000

$

-502 18 $

-502.18 $

000

116.93

116 93

89.71

$

-385 25 $

-385 25 $

89 71

3 625 15

3 625 15

3 535 44

Cash and Cash Equivalents - June 30

$

323990 $=-===3=,6=2=5=15=

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

PINE MOUNTAlN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 ofGeorgia. With the exception ofthe departure from generally accepted accounting principles disclosed in these notes, the financial statements of the 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, two members appointed by Upson County Library Board, one member appointed by Talbot County Library Board and one member appointed by Taylor County Library Board. The Library Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unieserved fund balances of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Pine Mountain Regional Library is therefore determined to be a joint venture.
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 ofpurchase. 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 ofassets acquired by governmental fund types.
The general-purpose financial statements account for all State, Local and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:

-8-

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the trust 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 ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide for maintenance or repair of the Hightower Memorial 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 ofthese 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.
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 and expendable trust funds are accounted for using the modified accrual basis of accounting under which:

-9-

PINE MOUNTAIN REGIONAL LIBRARY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the 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. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis ofaccounting, 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 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 Board of Regents of the University System of Georgia 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 of cash on hand and demand deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

- 10-

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been 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 LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations ofthe 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 ofthese 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.
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 financial 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 of this 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 11 Opercent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool

- 12 -

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS
balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
( 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 of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment 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 or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Fann Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $136,606.50. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)
- 13 -

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS

The Library's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Banlc Balance

1

$ 105,255.54

2

0.00

3

31.350.96

Total

$ 136,606.50

Note 3: RISK MANAGEMENT

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

The Library has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the error or omissions policy excludes coverage for sexual harassment and discrimination. 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. The Library has not experienced any losses related to this risk 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 expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.

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

Position Covered

Amount

All Employees

$ 50,000.00

Note 4: ACCUMULATED EMPLOYEES' LEAVE

Professional and semi-professional employees earn 20 days of annual leave per year. Nonprofessional staff earn 12 to 20 days of annual leave per year based on length of employment.

- 14 -

PINE MOUNTAIN REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: ACCUMULATED EMPLOYEES' LEAVE

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 oftermination. See Note 1 - Compensated Absences

Note 5: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 43,932.37 $ 42,003.62 $ 44,044.58

- 15 -

PINE MOUNTAIN REGIONAL LIBRARY
cbf.fBINING BAL;ANCE SHEET
CAPITA( PRo:JECTS FUND
juNE 30. 2001

EXHIBIT"G"

ASSETS Investments Accounts Receivable
Total Assets

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

54979

$

549 79 $

525 35

$

25,847.20

25,847 20

$

549 79 $

25"847"20 $

26 396 99 $

525 35

LIABILITIES AND,FUNP ECUIJY
LIABILITIES
Cash Overdraft Accounts Payable
Total Llablht1es
FUND EQUITY
Fund Balances Reserved For Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ $

$

549 79

000 $

$

549 79 $

Total L1ab1lit1es and Fund Equity

$

549 79 $

15,099.81 $ 10 747.39
25,847.20 $

15,099.81 10 747 39
25,847 20

$ 000 000 $

54979 $ 000
549 79 $

525.35 000
52535

25 847 20 $

26,396 99 $ _ _ _ _5_2_5_3_5_

See notes to the general-purpose financ:al statements

16 -

PINE MOUNTAIN REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2001

EXHIBIT"H"

REVENUES State Funds Other Funds Total Revenues
EXPENDITURES
Current Maintenance and Operations
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

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 301 2000

$

$

2444

$

2444 $

25,847.20 $ 25,847 20 $

25,847.20 2444 $
25,871 64 $

24.35 24 35

$

0.00 $

$

2444 $

5169439 $ -25,847 19 $

51,694 39 $ -25,822.75 $

$

2444 $

525 35

25 84719
0.00 $ 000

25 847 19
2444 s
525.35

000 2435
2435 501.00

FUND BALANCE JUNE 30

$

54979 $

0.00 $

549 79 $ ==-==~-=5,_,2,..5=35=

See notes to the general-purpose financial statements

-17-

- - - - - - - - - - - - - - - - - - - - - - - - - -- --------------- - -- -
PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Board of Regents of the Universrty System of Georgia Office of Public Library Services Salanes Travel Library Materials Maintenance and Operations
Community Affairs, Georgia Department of Local Assistance Grant
Georgia State Financing and Investing Comm1ss1on Reimbursement on Repair and Renovation Pro,ects

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTALS

$

286.621.30

3,750.00

45,432.00

37,176 00

15,000.00

$ 286,621.30 3,75000
45,432 00 37,176.00
15,000 00

$

25,847.20

25,847 20

$

387,979 30 $

25,847 20 $ 413,826 50

See notes to the general-purpose financial statements

- 18 -

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2001
LOCAL SOURCES Boards of Education Meriwether County Talbot County Taylor County Thomaston-Upson County City Governments Butler Geneva Greenville Junction City Manchester Reynolds Talbotton Woodland County Governments Boards of Commissioners Meriwether Talbot Taylor Upson

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

13,416.00

20,950.00

6,838.00

16,224.00

18,683 00 600.00
20,250.00 600.00
36,200.00 12,756.00
5,000.00 1,200.00

62,500.00 20,000.00 22,790 00 113,302.08

$ ====37=1=,3,..0=9=.0~8

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

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

NAME
Alford, Blackston Blount, Brown, Bulloch Cherry Ch1tuck Cole, Copeland, Curry, Fineran, Floyd, Gamer, Gee, Greathouse, Hagler, Hamler, Hams, Holmes, Holmes, Ingram, Jackson, Jones, Jones, Kilby, Knight, Louder, McCloud, McGee Ogburn, Parker, Phipps, Rakhsham, Rasbury, Smalley, Thomas, Weeks, WIiiiams, Young,

Kenneth Anna F. Brenda G Sheree M Peggy S JohnnyW Tresa Diana KemeD Sarah A. Daisy L. Charlene E. Dorothy J Sara A Charles B Loraine Willie Angela D Johnnie P Geraldine B MaryG Christine G Rita A Norma T Paul A Cynthia S Carol D Shirley M. AliceJ Robyn Katne1a R. Dorothy A Em1lyJ Carla Diane Kaye Lorraine Bomia J. RachaelR DamelC Virginia P.

Accrual June 30, 2000

Totals per Report

TITLE CATEGORY
Custodian Assistant Branch Manager C1rculat1on Clerk C1rculat1on Clerk Admin1strabve Assistant Custodian Circulation Clerk Assistant Branch Manager Custodian Circulation Clerk Circulation Clerk C1rculabon Clerk Custodian Director Branch Manager C1rculat1on Clerk Technical Services Assistant Branch Manager Branch Manager Branch Manager Assistant Branch Manager Circulation Clerk Circulabon Clerk Branch Manager Extension Coordinator Circulation Clerk Assistant Branch Manager Youth Services Coordinator Page Custodian C1rculabon Clerk Page Bookmobile Driver I Circulabon Clerk Library Technology Coordinator Technical Services Coordinator Circulation Clerk Library Technology Coordinator Branch Manager

SALARIES

TRAVEL

$

1,776 75

1,238.21

10,300 00

5,169 29

24,847.92 $

20064

295.74

4,461 21

12,015 98

6,890 00

1,155 40

9,918 95

1568

695.25

1,614 00

59,739 76

1,670 73

15,623 76

5446

2,476 14

11,606 40

8,077 86

20,416 80

6,790 02

47.04

15,061 56

10 36

1,333.60

3,391 30

7,319 60

44,122 62

271 46

9,151 20

4,094.02

42,534 78

1,002.74

1,315 86

350.20

1,202 53

4,578 60

12,417 60

33.32

1,608 95

6,237.16

282.24

48,927.36

199 21

2,155 28

32,539 68

675.68

4 955 97

75 88

$ 448,407.31 $ 4,539 44

16362

$ 448 407 31 $~-===4-=7=03=0=6=

See notes to the general-purpose finane1al statements

- 20-

SECTION II _. FINDINGS AND QUESTIONED COSTS

PINE MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 6992-93-02
The audit report for year ended June 30, 2000, noted that the management of the Pine Mountain Regional Library failed 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 ofthe 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 of land, 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.