GA
Aioo , RI
R4b P3:i.~
1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT PIEDMONT REGIONAL LIBRARY
WINDER, GEORGIA
YEAR ENDED JUNE 30, 1995

PIEDMONT REGIONAL LIBRARY - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

INDEPmIDENT 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

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN

FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

6

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

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

K

FIDUCIARY FUND TYPE

COMBINING BALANCE SHEET

20

SCHEDULES

1 CASH AND CASH EQUIVALENTS

21

2 ACCOUNTS RECEIVABLE

22

PIEDMONT REGIONAL LIBRARY - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

3

STATE

23

4

FEDERAL

24

5

LOCAL AND OTHER

25

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

26

7

LOTTERY PROGRAMS

27

8 MEMBERSHIP OF LIBRARY BOARD

28

9 SCHEDULE OF SALARIES AND TRAVEL

29

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the 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, 1995, 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 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.
In our opinion, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Piedmont Regional Library as ofJune 30, 1995, 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.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Piedmont Regional Library taken as a whole. The combining statements (Exhibits G through K) and the financial schedules (Schedules 1 through 9) , as listed in the table of contents, are presented for purposes ofadditional 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
95ARL-40

general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
t:J~~
Claude L. Vickers State Auditor
CLV:gp
95ARL-40

PIEDMONT REGIONAL LIBRARY - 1-

PIEDMONT REGIONAL LIBRARY
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30. 1995

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

87,241.18

$

3,147.09

10,970.63 $

188.97

Total Assets

$

98,211.81 $

188.97 $ ===3'=14=7=.0=9

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets
Fund Balances Reserved For Endowment Corpus For State Capital Outlay Projects
Unreserved Designated for Bookmobile Replacement Undesignated
Total Fund Balances
Total Fund Equity

$

$

7,930.25

$

7,930.25 $

188.97 188.97

$

30,000.00

60,281.56 $

$

90,281.56 $

$

90,281.56 $

0.00 $ 0.00 $ 0.00 $

31147.09 3,147.09 3,147.09

Total Liabilities and Fund Equity

$

98,211.81 $

188.97 $ ===--3=,1..,.4=7=.0=9

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

EXHIBIT "A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUNDS

ACCOUNT GROUP GENERAL FIXED ASSETS

TOTALS {Memorandum Only) JUNE 30, 1995 JUNE 30, 1994

$

1,805.55

$

92,193.82 $ 276,250.71

11,159.60

631.56

$

703,828.76

703,828.76

629,029.45

0.00

0.00

0.00

$

1,805.55 $

703,828.76 $ 807,182.18 $ 905,911.72

$

188.97

7,930.25 $

2,346.94

133,265.08

$

8,119.22 $ 135,612.02

$

703,828.76 $ 703,828.76 $ 629,029.45

$

1,600.00

$

1,600.00 $

1,600.00

19,324.53

$

1,600.00

$

1,600.00 $

20,924.53

205.55

30,000.00 63,634.20

22,034.84 98,310.88

$

1,805.55

$

95,234.20 $ 141,270.25

$

1,805.55 $

703,828.76 $ 799,062.96 $ 770,299.70

$

1,805.55 $

703,828.76 $ 807,182.18 $ 905,911.72

-3-

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

EXHIBIT "B"

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

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS {Memorandum On~
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 283,208.14 $ 134,268.12

15,000.00

126,134.70

$

$ 409,342.84 $ 149,268.12 $

$ 130.43 130.43 $

417,476.26 $ 15,000.00
126,265.13
558,741.39 $

283,930.62 19,000.00
122,276.02
425,206.64

$ 97,626.92 $ 26,684.38 $

78,215.53

106,540.35

121,539.75

130,739.34

1,043.99

23,080.73

$ 436,202.87 $ 149,268.12 $

9,866.08 $
9,458.45 19,324.53 $

134,1TT.38 $ 78,215.53 228,080.10 131,783.33 23,080.73 . 9,458.45
604,795.52 $

101,390.91 75,492.54 92,845.82 138,831.69
8,052.40 13,521.41
4301134.n

$ -26,860.03 $ 117,141.59

0.00 $ 0.00

-19,194.10 $ 22,341.19

-46,054.13 $ 139,482.78

-4,928.13 144,410.91

FUND BALANCE JUNE 30

$ 90,281.56 $

0.00 $

3,147.09 $ 93,428.65 $ 139,482.78

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

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

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Local and Other Funds

$ 283,208.14 $ 283,208.14

94,935.68

126,134.70

Total Revenues

$ 378,143.82 $ 409,342.84

EXPENDITURES

Current Program Services Technical Services Circulation Administration Maintenance and Operations

$

97,626.92 $

78,215.53

106,540.35

99,745.55

23,080.73

97,626.92 78,215.53 106,540.35 130,739.34 23,080.73

Total Expenditures

$ 405,209.08 $ 436,202.87

Excess of Revenues over (under) Expenditures $ -27,065.26 $

-26,860.03

FUND BALANCE JULY 1, 1994

42,342.28

117,141.59

FUND BALANCE JUNE 30, 1995

----- $

15,277.02 $

90,281.56

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

1,003.04 $ 134,268.12

15,000.00

15,000.00

$

16,003.04 $ 149,268.12

$

26,684.38 $

26,684.38

121,539.75 1,043.99

121,539.75 1,043.99

$ 149,268.12 $ 149,268.12

$ -133,265.08 $

0.00

133,265.08

0.00

$

o.oo $ ____o_.o_o

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

PIEDMONT REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 1995

EXHIBIT O"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Library Books and Materials Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Total Income (Loss)
FUND BALANCE J!,!LY 1
FUND BALANCE JUNE 30

ENDOWMENT FUNDS

LUCILLE NIX TED E. ROBERTS

MEMORIAL

BOOK

FUND

FUND

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

$

0.00 $

0.00 $

0.00 $

0.00

$

53.00 $

$

-53.00 $

56.32

$

3.32 $

1,255.43

s___1_.2__sa_._1_s s

0.00 $ 0.00 $

53.00 $ -53.00 $

76.00 -76.00

14.76 14.76 $ 532.04

71.08 18.08 $ 1,787.47

58.19 -17.81 1,805.28

546.80 $

1,805.55 s _ _ _1._1a_1_.4_1

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

PIEDMONT REGIONAL LIBRARY COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 1995

EXHIBITE

Cash Flows from Operating Activities: Cash Paid for Library Books and Materials
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUNDS

LUCILLE NIX TED E. ROBERTS

MEMORIAL

BOOK

FUND

FUND

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

$

-63.00 $

0.00 $

-63.00 $

-76.00

$

56.32 $

$

3.32 $

$

1,255.43 $

14.76 $ 14.76 $ 532.04 $

71.08 $ 18.08 $ 1,787.47 $

58.19 -17.81 1,805.28

$

1,258.75 $

546.80 $

----- 1,805.55 $

1,787.47

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

PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: 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; 4 members appointed by the Banks County Library Board, 6 members appointed by the Barrow County Library Board and 6 members appointed by the Jackson County Library Board. The Board is without authority to determine the amount ofits 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 oflocal 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. 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:
- 8-

PIEDMONT REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 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 1YPE - 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:
NONEXPENDABLE TRUST FUNDS Lucille Nix Memorial Fund And Ted E. Roberts Book Fund - the funds used to account for endowments 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 A~COUNT 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
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 decreases (i.e., expenditures) 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.

- 9-

PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis 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 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 Piedmont 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, letters are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part 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 ofdeposits (including certificates of deposit, savings and N.0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
- 10 -

PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist ofgrant reimbursements due from State or other grantors for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from infonnation 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.
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 ofinexhaustible collections and books at the Library are not readily determinable, the Library has not capitalized them.
INTERFUND TRANSACTIONS
The Library has the following type 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.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent of the public 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.
- 11 -

PIEDMONT REGIONAL LIBRARY

EXHIBIT "F" .

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

Acceptable security for deposits consists of any one of or any combination of the following:

{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 ofindebtedness or other direct obligations ofthe 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 ofthe bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Banlc, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $103,623~ 15. The bank balances were entirely covered by Federal depository insurance.

Note 3: GENERAL FIXED ASSETS

A summary of changes in the General Fixed Assets Account Group during the fiscal year are as follows:

Balance July 1, 1994 Additions Deletions Balance June 30, 1995

Equipment $ 629,029.45
93,553.25 18,753.94 $ 7Q3,82.16

- 12 -

PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: 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 illnesses or injuries to employees; natural disaster; and unemployment compensation.
The Library has obtained commercial insurance for risk of loss associated with torts, assets and job related illnesses or injury 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.
In addition, the Library has elected to self-insure for all losses related to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years.
The Library has elected to self-insure for all losses related to natural disaster.
The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The Library has not incurred any liabilities for unemployment compensation claims during the past two fiscal years.
Note 5: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years ofservice, regardless of age, or after IO years ofservice 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

- 13 -

PIEDMONT REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: RETIREMENT PLANS
number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the 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, 1995~ was $193,289.80; total payroll was $217,930.01.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1995 amounted to $32,492.29, of which $22,827.57 was made by the Library and $9,664.72 was made by employees. These contributions represented 11.81 % (Library) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension.benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

- 14 -

PIEDMONT REGIONAL LIBRARY

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: RETIREMENT PLANS

Total unfunded pension benefit obligation of TRS as ofJune 30, 1994, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058,958,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $22,827.57 was actuarially determined and represented .004% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 7: 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. SU 1403344, on which premium was paid through September 1, 1995.

- 15 -

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

LOTTERY PROGRAMS

LIBRARY SERVICES
AND CONSTRUCTION
ACT TITLEI PUBLIC LIBRARY SERVICES

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

0.00 $ 133,265.08

$- - - - - 188.97

188.97

$

188.97 $

o.oo $ _ _ _ _18_8_.9_7 $ 133,265.08

LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Deferred Revenue
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

$

188.97

$

188.97

$

188.97

$ 133,265.08

$

188.97 $ 133,265.08

0.00 $

0.00

0.00

0.00

$

------ ----- 188.97 $

0.00 $

188.97 $ 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, 1995

EXHIBIT H"

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

LOTTERY PROGRAMS

LIBRARY SERVICES
AND CONSTRUCTION
ACT TITLEI PUBLIC LIBRARY SERVICES

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 134,268.12 $
$ 134,268.12 $

$ 15,000.00
15,000.00 $

134,268.12 $ 15,000.00
149,268.12 $

6,734.92 19,000.00
25?34.92

$ 11,725.33 $

121,539.75 1,003.04

$ 134,268.12 $

$

0.00 $

0.00

$

0.00 $

14,959.05 $
40.95 15,000.00 $
0.00 $ 0.00

26,684.38 $ 121,539.75
1,043.99 149,268.12 $
0.00 $ 0.00

11,000.00 2,250.00 12,484.92
25,734.92 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, 1995

EXHIBIT"!"

ASSETS . Cash and Cash Equivalents

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION PROJECT PROJECT PROJECT 91-SB-010 91-SB-011 91-SB-012

TOTALS JUNE 30, 1995 JUNE 30, 1994

$ 3,147.09 $

0.00 $

0.00 $

0.00 $

3,147.09 $

24,341.19

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 3,147.09 $ $ 3,147.09 $

0.00 $ 0.00 $

$ _ _2...1..0_0_0_.o_o

0.00 $ 0.00 $

$

0.00 $ ----'3'""",1"--4_7_._0__9_

0.00 $

3,147.09 $

19,324.53 3,016.66
22,341.19

Total Liabilities and Fund Equity

$ 3,147.09 $

0.00 $

0.00 $

0.00 $

3,147.09 $

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. 1995

EXHIBIT .r

REVENUES

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION PROJECT PROJECT PROJECT 91-SB-010 91-SB-011 .91-SB-012

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 301 1994

State Funds Local and Other Funds

$ $ 130.43

0.00 $

0.00 $

0.00 $

$ 130.43

2,000.00 133.33

Total Revenues

$ 130.43 $

0.00 $

0.00 $

0.00 $

130.43 $

2,133.33

EXPENDITURES

Current

Professional and Technical

Services

$

Capital Outlay

Building and Building

Improvements

Equipment

0.00 $ 2,300.00 $

9.17 $ 7,556.91 $

9,866.08 $

489.79

1,926.35

900.00

1,020.00 5,612.10

1,920.00 7,538.45

10,676.80 2,844.61

Total Expenditures

$

0.00 $ 4,226.35 $ 909.17 $ 14,189.01 $

19,324.53 $

14,011.20

Excess of Revenues over (under)

Expenditures

$

130.43 $ -4,226.35 $ -909.17 $ -14,189.01 $

-19,194.10 $

-11,877.87

FUND BALANCE JULY 1

3,016.66 4,226.35

909.17

14,189.01

22,341.19

34,219.06

FUND BALANCE JUNE 30

$ 3,147.09 $

0.00 $

0.00 $

0.00 $

3,147.09 $

22,341.19

See notes to the general purpose financial statements.

-19-

PIEDMONT REGIONAL LIBRARY COMBINING BALANCE SHEET
FIDUCIARY FUND TYPE JUNE 30, 1995

EXHIBIT"K"

ASSETS Cash and Cash Equivalents

NONEXPENDABLE TRUST FUNDS

LUCILLE NIX TED E. ROBERTS

MEMORIAL

BOOK

FUND

FUND

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

1,258.75 $

546.80 $

1,805.55 $ ==1=,7==8==7==47=

FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated

$

1,200.00 $

58.75

400.00 $ 146.80

1,600.00 $ 205.55

1,600.00 187.47

Total Fund Equity

$

1,258.75 $

546.80 $

1,805.55 $ ==1=7=8=7.=47=

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

PIEDMONT REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30, 1995

SCHEDULE "1"

NONINTEREST BEARING ACCOUNT
Peoples Bank, Winder, Georgia
INTEREST BEARING ACCOUNTS
Barrow Bank and Trust, Winder, Georgia
Certificates of Deposit No.10 (7.05%) No. 20 (7.05%)
Braselton Banking Company, Braselton, Georgia
Certificates of Deposit No. 418 (3.75%) No. 419 (3.75%) No. 420 (3.75%) No. 421 (3.75%) No. 570 (4.00%)
Peoples Bank, Winder, Georgia
Certificates of Deposit No. 12803 (5.02%) No. 18037 (6.50%) No. 18038 (6.50%) No. 18646 (4.50%)
N.O.W. Account (2.73%) Passbook Savings Account (2.78%)
OTHER
Petty Cash

$

58.75

$ 15,000.00
15,000.00

30,000.00

$

646.49

647.27

647.27

646.49

559.57

3,147.09

$

1,200.00

15,000.00

15,000.00

10,000.00

17,032.21

546.80

58,779.01

20.00

$ 92,004.85

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

PIEDMONT REGIONAL LIBRARY ACCOUNTS RECEIVABLE
JUNE 30. 1995

SCHEDULE ''Z'

Banks County Board of Education Local Support
Barrow County Board of Commissioners Local Support
Barrow County Board of Education Local Support
Commerce, City of Local Support
Education, Georgia Department of Public Libraries Distant Learning
Jefferson, City of Local Support
Maysville, City of Local Support
Southern Trust Insurance Company Insurance Recovery Claim

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

1,700.00

$

1,700.00

691.25

691.25

2,456.84

2,456.84

2,000.00

2,000.00

$
1,800.00 1,700.00
622.54

188.97

188.97 1,800.00 1,700.00
622.54

$

10,970.63 $

188.97 $ ====1=1=,=15=9=.=60=

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

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

SCHEDULE "3"

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

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 189,678.14 49,065.00 44,465.00

$ 189,678.14 49,065.00 44,465.00

$

1,003.04

133,265.08

1,003.04 133,265.08

$ 283,208.14 $ 134,268.12 $ 417,476.26

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

PIEDMONT REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1995
AGENCY/FUNDING Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Trtle I - Public Library Services

SCHEDULE "4"
GOVERNMENTAL FUND TYPE
SPECIAL REVENUE
FUND
s=======1=s,=oo=o=.o=o

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

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

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 Boards of Commissioners Banks Barrow Jackson
OTHER SOURCES Donations Fines and Fees Insurance Recoveries Interest Earned Other

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

5,544.16

14,741.04

1,688.55

4,565.72

650.00 750.00 750.00 4,650.04 2,042.05 4,350.00 4,250.00 700.00 700.00 800.00 14,040.00

2,042.05 33,868.21
2,546.78

1,103.92 13,794.15
5,964.54 6,549.64 $
43.85

$

5,544.16

14,741.04

1,688.55

4,565.72

650.00 750.00 750.00 4,650.04 2,042.05 4,350.00 4,250.00 700.00 700.00 800.00 14,040.00

2,042.05 33,868.21
2,546.78

130.43

1,103.92 13,794.15
5,964.54 6,680.07
43.85

$ 126,134.70 $ -====1=3=0.4=3- $ 126,265.13

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

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

SCHEDULE s

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 217,930.01
57,845.07 2,793.99
307.72 $
17,828.57 64,781.61 33,495.43 25,513.52 12,810.98
100.00 619.47

$
855.02 35,162.97 26,684.38

217,930.01 57,845.07 2,793.99 1,162.74 52,991.54 91,465.99 33,495.43 25,513.52 12,810.98 100.00 619.47

2,176.50

86,565.75

88,742.25

Total Expenditures

$ 436,202.87 $ 149,268.12 $ 585,470.99

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

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

SCHEDULE "7"

EXPENDITURES
Operating Costs Professional and Technical Services Supplies
Nonoperating Costs Equipment

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

TOTAL

$

814.07

188.97 $

$ 46,699.33
86,565.75

814.07 46,888.30
86,565.75

Total Expenditures

$

1,003.04 $

133,265.08 $ ====1=34=,2=6==8==.1=2

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

PIEDMONT REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

BOARD MEMBER ADDRESS
Mrs. Jean Booth, Chairperson (*) 3354 Apple Valley Road Commerce, Georgia 30529
Mrs. Jean Mize, Vice-Chairperson (*)
P. 0. Box409
Homer, Georgia 30547
Mrs. Jennifer Evans (*) 216 Storey Street Jefferson, Georgia 30549
Mrs. Marianne Green
P. 0. Box25
Bethlehem, Georgia 30620
Ms. Beverly Guthrie (*) 141 Hidden Lakes Trail Jefferson, Georgia 30549
Mrs. Jane Krebs (*) 299 First Street Statham, Georgia 30666
Mrs. Patricia Landress (*) 144 Buena Vista Winder, Georgia 30680
Mrs. Geneva Nix (*) 4761 U. S. Highway 441 South Nicholson, Georgia 30565
Mrs. Maud Payne (*) 7 Comer Street Maysville, Georgia 30558
Mrs. Mary Pool (*) 30 West Stephens Street Winder, Georgia 30680
Mrs. Margaret Robinson (*)
P. 0. BoxE
Winder, Georgia 30680
Mrs. Anne Rogers (*) 64 Park View Drive Commerce, Georgia 30529

(*) Denotes Board Members Serving as of June 30, 1995

See notes to the general purpose financial statements.

- 28 -

Mrs. Betty Smith (*) 61 East Avenue Winder, Georgia 30680
Ms. Rachel Thompson (*) P.O.Box165 Bethlehem, Georgia 30620
Mr. MeMn Tolbert(*)
P. 0. Box 96
Pendergrass, Georgia 30567
Mrs. Deborah White (*)
P. 0. Box248
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, 1995

SCHEDULE "9"

PERSONNEL

Albritton, Blocker, Burchfield, Cape, Farr, Felando, Gilbert, Harris, Hayes, Holliday, Holmes, Hoover, Krebs, Mays, Morrow, Pike, Roberts, Rogers, Shultz, Silveus, Sullivan, Thompson,

Debbie John Lamar Amy Mandi Frank R. Kimberly M. Lewis E., Jr. Harriet H. Sharon G. Sandra R. NancyM. Anna R. Jane G. Amy Michelle Kenneth E. Tonya M. TedE. Joseph C. Kevin E. Eric T. Sabrina J. Rose S.

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

SALARIES

TRAVEL

$

18,209.10

540.00

2,986.25 $

1,085.76

570.00

1,645.82

295.00

5,146.89

5,373.90

34,866.60

38,396.40

40,697.60

2,673.01

1,293.07

30.00

495.13

46,397.60

430.00

30.00

390.00

1,655.38

14,722.50

46.62 51.24
34.86 365.57 356.58 786.11
1,153.01

$

217,930.01 $===2=:!':::::::79=3=.9=9

See notes to the general purpose financial statements.

-29 -

SECTIONU FINDINGS AND IMPROPER OR QUESTIONED COSTS

PIEDMONT REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL)
Inadequate Separation ofDuties Audit Control Number 6072-93-0 I
The audit report for the year ended June 30, 1994, 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 ofemployee 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 ofinternal control with existing staff.

SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

PIEDMONT REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6072-93-01
We concur with this finding, however due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved.