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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT PIEDMONT REGIONAL LIBRARY
WINDER, GEORGIA YEAR ENDED JUNE 30, 1994

PIEDMONT 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 AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN

FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

5

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

6

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

17

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

18

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

19

FIDUCIARY FUND TYPE

K

COMBINING BALANCE SHEET

20

PIEDMONT REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

I ANALYSIS OF CASH AND CASH EQUNALENTS

21

2 ACCOUNTSRECEIVABLE

22

SCHEDULE OF REVENUE

3

STATE

23

4

FEDERAL

24

5

LOCAL AND OTHER

25

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

26

7 MEMBERSHIP OF LIBRARY BOARD

27

8 SCHEDULE OF SALARIES AND TRAVEL

28

SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION Ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.eparfm.ettf nf J\uhits
254 WASHINGTON STREET, S. W. ROOM 214
l'-hmbl:, ~~orBitt 30334-8400
February 8, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Piedmont 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 Piedmont Regional Library, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perfonn 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.
In our opinion, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Piedmont Regional Library as of June 30, 1994, and the results ofits operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Library changed its method of accounting from a cash basis to a modified accrual basis. This change is in accordance with generally accepted accounting principles.

94ARL-43

Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Piedmont Regional Library taken as a whole. The combining statements (Exhibits G through K) and the financial schedules (Schedules 1 through 8), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Piedmont 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 of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:jy 94ARL-43

Claude L. Vickers State Auditor

PIEDMONT REGIONAL LIBRARY
-I-

PIEDMONT REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30. 1994

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents Accounts Receivable General Fixed Assets
Equipment Inexhaustible Collections and Books

ACCOUNT

GOVERNMENTAL FUND TYPES

FIDUCIARY

GROUP

------------------------------------- FUND TYPE -----------

GENERAL

SPECIAL REVENUE

CAPITAL PROJECTS

-N-O-N-E-X-P-EN--D-A-B-L-E

GENERAL FIXED

TOTAL (Menorandum

FUND

FUND

FUND

TRUST FUNDS ASSETS

Only)

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

$116,856.97 $133,265.08 $ 24,341.19 $ 1,787.47

$ 276,250.71

631.56

631.56

$ 629,029.45 629,029.45

0.00

0.00

Total Assets

$117,488.53 $133,265.08$ 24,341.19 $ 1,787.47 $ 629,029.45 $ 905,911.72
=========== ========== =========== ============ ========== ===========

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Deferred Revenue

$ 346.94

$ 2,000.00

$133,265.08

$ 2,346.94 133,265.08

Total Liabilities

$ 346.94 $133,265.08$ 2,000.00

$135,612.02

FUND EQUITY

Investment in General Fixed Assets
Fund Balances Reserved For Endowment Corpus For State Capital Outlay Projects

$629,029.45$ 629,029.45

$ $ 19,324.53

1,600.00

$ 1,600.00 19,324.53

Unreserved Designated for Bookmobile Replacement Undesignated

$ 22,034.84 95,106.75$

$ 19,324.53 $ 1,600.00

0.00 3,016.66

187.47

$ 20,924.53
22,034.84 98,310.88

Total Fund Balances

$ 117,141.59 $

0.00 $ 22,341.19 $ 1,787.47

$141,270.25

Total Fund Equity

$ 117,141.59 $

0.00 $ 22,341.19 $ 1,787.47 $ 629,029.45 $ 770,299.70

Total Liabilities and Fund Equity

$117,488.53 $133,265.08$ 24,341.19 $ 1,787.47 $629,029.45$ 905,911.72
=========== =====-=~==== =========== ============= =========== ===========

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

PIEDMONT REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "B"

SPECIAL

CAPITAL

TOTAL

GENERAL

REVENUE

PROJECTS

(Memorandum

FUND

FUND

FUND

Only)

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

REVENUES
--------

State Funds Federal Funds Local and Other Funds
Total Revenues

$ 275,195.70 $ 6,734.92 $ 2,000.00 $ 283,930.62

19,000.00

19,000.00

122,142.69

133.33 122,276.02

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

$ 397,338.39 $ 25,734.92 $ 2,133.33 $ 425,206.64
------------- ------------- ------------- -------------

EXPENDITURES
------------

Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay

$ 89,901.12 $ 11,000.00 $

489.79 $ 101,390.91

73,242.54

2,250.00

75,492.54

80,360.90

12,484.92

92,845.82

138,831.69

138,831.69

8,052.40

8,052.40

13,521.41

13,521.41

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

Total Expenditures

$ 390,388.65 $ 25,734.92 $ 14,011.20 $ 430,134.77
------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $ 6,949.74 $

0.00 $ -11,877.87 $ -4,928.13

FUND BALANCE JULY 1
-------------------

110,191.85

0.00

34,219.06 144,410.91

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

FUND BALANCE JUNE 30

$ 117,141.59$

0.00 $ 22,341.19 $ 139,482.78

============= ---========== ============= =============

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

PIEDMONT REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "C"

REVENUES
--------
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1993
-------------------------
FUND BALANCE JUNE 30, 1994

ACTUAL

VARIANCE

PER

FAVORABLE

EXHIBIT "B"

BUDGET

(UNFAVORABLE)

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

$ 283,930.62 $ 417,195.70 $ -133,265.08

19,000.00

19,000.00

0.00

122,276.02

76,773.57

45,502.45

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

$ 425,206.64 $ 512,969.27 $ -87,762.63
------------- ------------- -------------

$ 101,390.91 $ 100,901.12 $

-489.79

75,492.54

75,281.98

-210.56

92,845.82

231,759.93

138,914.11

138,831.69

96,973.84

-41,857.85

8,052.40

8,052.40

0.00

13,521.41

0.00

-13,521.41

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

$ 430,134.77 $ 512,969.27 $ 82,834.50
------------- ------------- -------------

$ -4,928.13 $

0.00 $ -4,928.13

144,410.91

111,985.23

32,425.68

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

$ 139,482.78$ 111,985.23 $ 27,497.55
============= ============= =============

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

PIEDMONT REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

OPERATING REVENUES
------------------
None Recorded
OPERATING EXPENSES
------------------
Current Library Books and Materials
Operating Income (Loss) NON OPERA TI NG REVENUES
---------------------
Interest Earned
Net Income (Loss) FUND BALANCE JULY 1
-------------------
FUND BALANCE JUNE 30

ENDOWMENT FUNDS

LUCILLE NIX MEMORIAL FUND

TED E. ROBERTS

TOTAL

BOOK

(Memorandum

FUND

Only)

$

0.00 $

0.00 $

0.00

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

$

76.00 $

0.00 $

76.00

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

$

-76.00 $

0.00 $

-76.00

43.82

14.37

58.19

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

$

-32.18 $

14.37 $

-17.81

1,287.61

517.67

1,805.28

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

$

1,255.43 $

532.04 $

1,787.47

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

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

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

EXHIBIT "E"

Cash Flows from Operating Activities: Cash Paid for Library Books and Materials Net Cash Provided (Used) by Operating Activities
Cash Flows from Investing Activities: Interest Received
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities

ENDOWMENT FUNDS

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

LUCILLE NIX TED E. ROBERTS

MEMORIAL

BOOK

FUND

FUND

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

TOTAL
(Memorandum
Only)
-------------

$

-76.00 $

0.00 $

-76.00

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

$

-76.00 $

0.00 $

-76.00

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

$

43.82 $

14.37 $

58.19

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

$

-32.18 $

14.37 $

-17.81

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

$

1,287.61 $

517.67 $

1,805.28

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

$

1,255.43 $

532.04 $ 1,787.47

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

$

-76.00 $

0.00 $

-76.00

$

-76.00 $

0.00 $

-76.00

~============ ============== =============

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

PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Piedmont Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. The financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Piedmont Regional Library is determined to be a joint venture.
The Library Board consists of 16 members; four members appointed by the Banlcs County Library Board, six members appointed by the Barrow County Library Board and six members appointed by the Jackson 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 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 Piedmont Regional Library is located in Winder, Georgia, and serves Banks, Barrow and Jackson Counties.
FUND ACCOUNTING
The Library uses funds and an account group 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. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
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 and the account group presented in this report are as follows:
- 7-

PIEDMONT REGIONAL LIBRARY

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: 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 traditionally provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources
(other than for major capital projects) that are legally restricted to expenditures for specified purposes. The
primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the trust funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUNDS Lucille Nix Memorial 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 purchase books.
Ted E. Roberts Book 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 purchase books.
ACCOUNT GROUP
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes equipment and inexhaustible collections and books. The land and buildings that house the Library are owned by Barrow County.
BASIS OF ACCOUNTING
Audit reports of the Piedmont Regional Library for prior years have reported all financial statements on the cash basis ofaccounting in which certain revenue and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred.
This report presents all statements on the modified accrual basis of accounting with the exception ofFiduciary
Fund Type - Nonexpendable Trust Funds which are reported under the accrual basis of accounting. This represents a change in the application of accounting principles.
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
- 8-

PIEDMONT REGIONAL LIBRARY

EXJilBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
Piedmont Regional Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, letters are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division of Public Library Services, as a part of the Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.

- 9-

PIEDMONT REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF CASH DEPOSITS Cash consists of deposits (including certificates of deposit, savings accounts and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of allotted funds from participating local governments. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value as ofthe date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. Because the values of inexhaustible collections and books at the Library are not readily determinable, the Library has not capitalized them.
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund 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 fundand as reductions of expenditures/expenses in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 10 -

PIEDMONT REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the 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 of the 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 Ban1c, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $290,995.54. 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.
- 11 -

PIEDMONT REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

The Library's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category 1 2 3 Total
Note 3: GENERAL FIXED ASSETS

Bank Balance
$ 159,431.46 0.00
131,564.08
$ 290,995.54

The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year:

Equipment

Balance July 1, 1993

$ 629,394.80

Additions

7,011.95

Deletions

7,377.30

Balance June 30, 1994

$ 629,Q29.45

Note 4 : RISK MANAGEMENT

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

Note 5 : SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of$133,265.08 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. Lottery funds in the amount of $133,265.08 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

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PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 5 : SIGNIFICANT COMMITMENTS

Media Center and Library Equipment

$ 133,265.08

These amounts are not reflected in the general purpose financial statements.

Note 6: 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 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is
entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement,
whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.

The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $183,310.15; total payroll was $202,815.83.

- 13 -

PIEDMONT REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $32,647.57, of which $21,648.99 was made by the Library and $10,998.58 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe 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 of June 30, 1993, was as follows:

Total pension benefit obligation

$ 13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of $21,648.99 was actuarially determined and represented .0041% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 IRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

- 14 -

PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: SURETY BONDS
The Library Director, Mr. Ted E. Roberts, is bonded in the amount of $10,000.00 with the Utica Mutual Insurance Company, New Hartford, New York, their Bond No. SU1403344, on which premium was paid through September 1, 1994.

- 15 -

PIEDMONT REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30. 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents
LIABILITIES ANO FUND EQUITY LIABILITIES
Deferred Revenue FUND EQUITY
Fund Balances Unreserved Undesignated

LOTTERY PROGRAM

LIBRARY SERVICES
AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 133,265.08$

0.00 $ 133,265.08

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

$ 133,265.08

$ 133,265.08

0.00 $

0.00

0.00

Total Liabilities and Fund Equity

$ 133,265.08 $

0.00 $ 133,265.08

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

PIEDMONT REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "H"

REVENUES
--------
State Funds Federal Funds
Total Revenues
EXPENDITURES
------------
Current Program Services Technical Services Circulation
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
-------------------
FUND BALANCE JUNE 30

LOTTERY PROGRAM

LIBRARY SERVICES
AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$

6,734.92

$

6,734.92

$ 19,000.00

19,000.00

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

$

6,734.92 $ 19,000.00 $ 25,734.92

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

$ 11,000.00 $ 11,000.00

2,250.00

2,250.00

$

6,734.92

5,750.00

12,484.92

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

$

6,734.92 $ 19,000.00 $ 25,734.92

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

$

0.00 $

0.00 $

0.00

0.00

0.00

0.00

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

$

0.00 $

0.00 $

0.00

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

PIEDMONT REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30 1 1994

EXHIBIT "I"

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT 91-SB-010

PROJECT 91-SB-011

PROJECT 91-SB-012

GOVERNOR'S EMERGENCY
FUND

TOTAL

ASSETS

Cash and Cash Equivalents

$ 3,016.66$ 4,226.35$

909.17 $ 14,189.01 $ 2,000.00$ 24,341.19

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

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$ 4,226.35$ $ 3,016.66

Total Fund Equity $ 3,016.66$ 4,226.35$

$ 2,000.00$ 2,000.00

909.17 $

14,189.01 $

909.17 $ 14,189.01 $

$ 0.00

19,324.53 3,016.66

0.00 $ 22,341.19

Total Liabilities and

Fund Equity

$ 3,016.66$ 4,226.35$

909.17 $ 14,189.01 $ 2,000.00$ 24,341.19

=--========-- --===-------- -----=====--- ====-======= ============ =============

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

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

EXHIBIT "J"

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT 91-SB-010

PROJECT 91-SB-011

PROJECT 91-SB-012

GOVERNOR'S EMERGENCY FUND (1)

TOTAL

REVENUES

State Funds Local and Other Funds

$

$

133.33

0.00 $

0.00 $

0.00 $

2,000.00$

2,000.00 133.33

Total Revenues

$

133.33 $

0.00 $

0.00 $

0.00 $ 2,000.00 $ 2,133.33

EXPENDITURES

Current

Professional and Technical

Services

$

0.00 $

26.50 $

436.79 $

26.50

$

489.79

Capital Outlay

Building and Building

Improvements

2,204.04

5,518.72

954.04 $ 2,000.00

10,676.80

Equipment

642.68

1,685.39

516.54

2,844.61

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

Total Expenditures $

0.00 $ 2,873.22$ 7,640.90$ 1,497.08 $ 2,000.00$ 14,011.20

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

$

133.33 $ -2,873.22 $ -7,640.90 $ -1,497.08 $

0.00 $ -11,877 .87

2,883.33

7,099.57

8,550.07

15,686.09

0.00 34,219.06

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

FUND BALANCE JUNE 30

$ 3,016.66$ 4,226.35$

909.17 $ 14,189.01 $

0.00 $ 22,341.19

------------- --=-----====- ------=------ -============ ============= ===-----===--

(1) The purpose of these funds are to provide for Auburn Branch relocation expenses.

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

ASSETS
Cash and Cash Equivalents
FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated
Total Fund Equity

PIEDMONT REGIONAL LIBRARY COMBINING BALANCE SHEET
FIDUCIARY FUND TYPE JUNE 30, 1994

EXHIBIT "K"

NONEXPENDABLE TRUST FUNDS

LUCILLE NIX TED E. ROBERTS

MEMORIAL

BOOK

FUND

FUND

TOTAL

$ 1,255.43 $

532.04 $ 1,787.47

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

$ 1,200.00 $ 55.43

400.00 $ 132.04

1,600.00 187.47

$ 1,255.43 $

532.04 $ 1,787.47

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

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

PIEDMONT REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "l"

NONINTEREST BEARING ACCOUNTS
Bank of Banks, Homer, Georgia
First National Bank of Jackson County, Jefferson, Georgia
Peoples Bank, Winder, Georgia

INTEREST BEARING ACCOUNTS

Barrow Bank and Trust, Winder, Georgia
Certificates of Deposits No. 4145 (4 .. 50%) No. 4185 - (4.50%)
Braselton Banking Company, Braselton, Georgia
Certificates of Deposits No. 418 (3.25%) No. 419 (3.25%) No. 420 (3.25%) . No. 421 (3.25%) No. 570 (3.75%)

Peoples Bank, Winder, Georgia
Certificates of Deposits No. 12803 (5.02%) No. 18037 (4.50%) No. 18038 (4.50%) No. 18646 (4.50%)
N.O.W. Account (2.70%) Passbook Savings Account

(2.75%)

OTHER

Petty Cash

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

$

5,135.52

14,189.01

55.43
-------------
$ 19,379.96

$ 22,034.84 15,000.00

37,034.84

$

619.75

620.49

620.49

619.75

536 .18

3,016.66

$ 1,200.00 15,000.00 15,000.00 10,000.00
175,067.21 532.04

216,799.25

20.00 $ 276,250.71

PIEDMONT REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1994
Barrow County Board of Commissioners Local Government Allotment

SCHEDULE "2"

GOVERNMENTAL FUND TYPE
GENERAL FUND

$

631.56

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

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

PIEDMONT REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1994

SCHEDULE "3"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

GRANTS

Education, Georgia Department of

Public libraries

Salaries and Travel

$

library Materials

Maintenance and Operations

Other State Program

Indirect Costs (Governor's Emergency

Funds)

lottery Program

Media Center and library Equipment

181,665.70 49,065.00 44,465.00
$

$ 6,734.92

$ 181,665.70 49,065.00 44,465.00

2,000.00

2,000.00 6,734.92

$ 275,195.70$

6,734.92 $

2,000.00$ 283,930.62

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

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

PIEDMONT REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 1994
AGENCY/FUNDING Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "4"
GOVERNMENTAL FUND TYPE
SPECIAL REVENUE FUND
$ 19,000.00
=============

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

PIEDMONT REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

LOCAL SOURCES Boards of Education Banks County Barrow County Commerce, City of Jackson County
City Governments Auburn Bethlehem Carl Commerce Homer Jefferson Maysville Nicholson Pendergrass Statham Winder
County Governments Banks Barrow Jackson
OTHER FUNDS Donations Fines and Fees Interest Received Reimbursement for Lost or Damaged Books Other

GOVERNMENTAL FUND TYPES

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTAL

$

2,042.04

14,675.77

1,735.77

4,348.28

600.00 700.00 700.00 600.00 1,944.81 700.00 800.00 650.00 650.00 750.00 14,039.13

1,944.81 52,664.10
2,425.50

40.00 14,063.28 4,948.40
992.72 128.08 $

$

2,042.04

14,675.77

1,735.77

4,348.28

600.00 700.00 700.00 600.00 1,944.81 700.00 800.00 650.00 650.00 750.00 14,039.13

1,944.81 52,664.10
2,425.50

133.33

40.00 14,063.28 4,948.40
992.72 261.41

$ 122,142.69 $

133.33 $ 122,276.02

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

PIEDMONT REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1 1994

SCHEDULE 611 11

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Supplies Library Books and Materials Repairs and Maintenance Utilities Communication and Insurance Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 198,815.83 $ 54,293.68 3,315.79 847.15 9,844.14 61,055.24 11,337.46 43,788.21 6,485.43 605.72

4,000.00 $
3,734.92 11,000.00

202,815.83 54,293.68 3,315.79
847.15 13,579.06 72,055.24 11,337.46 43,788.21 6,485.43
605.72

7,000.00

7,000.00

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

$ 390,388.65$ 25,734.92 $ 416,123.57
============= ============= =============

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

PIEDMONT REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30. 1994

SCHEDULE "7"

BOARD MEMBER ADDRESS
Mrs. Margaret Robinson, Chairperson (*) P. 0. Box E Winder, Georgia 30680
Mrs. Anne Rogers, Vice-Chairperson (*) 64 Park View Drive Commerce, Georgia 30529
Mrs. Jean Booth(*) 3354 Apple Valley Road Commerce, Georgia 30529
Mrs. Jennifer Evans(*) 216 Storey Street Jefferson, Georgia 30549
Mrs. Marianne Green(*) P. 0. Box 25 Bethlehem, Georgia 30620
Ms. Beverly Guthrie(*) 141 Hidden Lakes Trail Jefferson, Georgia 30549
Mr. Richard Kidder Rt. 4, Box 4052 Jefferson, Georgia 30549
Mrs. Jane Krebs (*) 299 First Street Statham, Georgia 30666
Mrs. Patricia Landress(*) 144 Buena Vista Winder, Georgia 30680
Mrs. Jean Mize(*) P. 0. Box 409 Homer, Georgia 30547
Mrs. Geneva Nix(*) 4761 U.S. Highway 441 South Nicholson, Georgia 30565
Mrs. Maud Payne(*) 7 Comer Street Maysville, Georgia 30558
(*) Denotes Board Members Serving as of June 30, 1994.
See notes to the general purpose financial statements.
- 27 -

Mrs. Mary Pool (*) 30 W. Stephens Street Winder, Georgia 30680
Mrs. Betty Smith(*) 61 East Avenue Winder, Georgia 30680
Mr. Melvin Tolbert (*) P. 0. Box 96 Pendergrass, Georgia 30567
Mrs. Deborah White(*) P. 0. Box 248 Homer, Georgia 30547
Mrs. Miriam Wood(*) P. 0. Box 13 Auburn, Georgia 30203

PIEDMONT REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1994

SCHEDULE "8"

PERSONNEL
---------
Albritton, Burchfield, Cape, Harris, Hayes, Holli day, Holmes, Hoover, Krebs, Lackey, Pike, Roberts, Thompson, Walker,

Debbie Amy
Mandi Harriet H. Sharon G. Sandra R. Nancy M. Anna R. Jane G. Elizabeth C. Tonya M.
Ted E. Rose S. Dedra L.

POSITION
--------
Clerk Aide Aide Clerk Bookkeeper Cataloger Librarian Librarian Clerk Aide Aide Director Secretary Aide

SALARIES

TRAVEL

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

$ 17,055.48

2,387.97

2,387.97

4,336.89

5,325.57 $

34.22

33,309.20

985.62

36,884.40

38,906.80

857.02

2,525.74

194.01

1,887.00

43,406.80

1,438.93

13,747.50

460.50
------------- -------------

$ 202,815.83 $ 3,315.79
============= =============

See notes to the general purpose financial statements. - 28 -

SECTION TI FINDINGS AND IMPROPER OR QUESTIONED COSTS

PIEDMONT REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6072-93-01
The audit report for the year ended June 30, 1993, stated that the Library had not provided for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, our audit noted no improvement regarding adequate separation of employee duties.
This deficiency was 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.

SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

PIEDMONT REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6072-93-01
We concur with this prior finding; however, the Board is unable to hire additional personnel due to current budgetary constraints. There just is not a large enough staff for this finding to be resolved yet.