Audit report, Piedmont Regional Library, Winder, Georgia, year ended June 30, 1998 [June 30, 1998]

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AUDIT REPORT PIEDMONT REGIONAL LffiRARY
WINDER, GEORGIA YEAR ENDED JUNE 30, 1998

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

PIEDMONT REGIONAL LIBRARY
-TABLE OF CONIENTS-

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

ALL GOVERNMENTAL FUND TYPES

4

c

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

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

ADDffiONAL FINANCIAL INFORMATION

COMBINING STATEMENT

G

FIDUCIARY FUND TYPE

COMBINING BALANCE SHEET

16

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

17

SCHEDULE OF REVENUE

2

STATE

18

3

FEDERAL

19

4

LOCAL

20

5 SCHEDULE OF SALARIES AND TRAVEL

21

FINANCIAL

RussELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND AccOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 21, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Technical and Adult Education
and Director and Members of the Piedmont 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 Piedmont Regional Library, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the Piedmont Regional Library's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Piedmont Regional Library as of June 30, 1998, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles.
The year 2000 supplementary information of Schedule 111 11 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally ofinquiries ofmanagement regarding the methods of measurement and presentation ofthe supplementary information. However we did not audit
the information and do not express an opinion on it. In addition, we do not provide assurance that Piedmont

98ARL-40

Regional Libraiy is or will become year 2000 compliant, that the Library's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Piedmont Regional Library does business are or will become year 2000 compliant.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements ofthe Piedmont Regional Library taken as a whole. The accompanying combining statement (Exhibit G) and the financial schedules (Schedules 2 through 5), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, is fairly presented in all material respects in relation to the general purpose fmancial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~-~ Russell W. Hinton State Auditor
RWH:jb 98ARL-40

PIEDMONT REGIONAL LffiRARY

PIEDMONT REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1998

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

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

15,523.34 $

0.00

63,662.44

4,884.35

$ 84,070.13 s_ _ _......o..o-.o

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable
FUNPEOUITY
Investment in General Fixed Assets Fund Balances
Reserved For Endowment Corpus
Unreserved Designated for Bookmobile Replacement Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

9,672.47

$

30,000.00

44,397.66 $

0.00

$

741397.66 $

0.00

$ 84,070.13 s_ _ __..o.o-.o

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 Onl~) JUNE 30, 1998 JUNE 30, 1997

$

78.47

$

15,601.81 $

16,766.32

2,200.00

65,862.44

65,347.09

4,884.35

2,116.34

$

709,708.33

709,708.33

705,682.56

0.00

0.00

0.00

$

2,278.47 $

709,708.33 $

796,056.93 $ _....;7~8,;,~9,;;.91,;,;;;2;;,;.3-.1

$

9,672.47 $ _ _--=.~6..:.;:154:....:..:....:.4~7

$

709,708.33 $

709,708.33 $

705,682.56

$

2,200.00

2,200.00

2,200.00

78.47

30,000.00 44,476.13

30,000.00 45,875.28

$

2.278.47 $

709.708.33 $

786.384.46 $

783.757.84

$

2,278.47 $

709,708.33 $

796,056.93 $_.....;7_8_9..9.1.iiiii2iiii.3-.1

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PIEDMONT REGIONAL LIBRARY

EXHIBIT "B"

COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30. 1998

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS {Memorandum Onl~}
YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues

$ 426,407.30 $
111,043.36 16,505.78
$ 553,956.44 $

$ 7,089.77
7,089.77 $

426,407.30 $ 7,089.77
111,043.36 _16,505.78
561,046.21 $

314,908.28 15,000.00 94,220.20 22,205.57
446,334.05

EXPENDITURES

Current Program Services

$ 555,250.22 $

Excess of Revenues over {under) Expenditures $ -1,293.78 $

7,089.77 $ 0.00 $

562,339.99 $ -1,293.78 $

449,183.44 -2,849.39

FUND BALANQ~ J!..!LY :1

75.691.44

0.00

75.691.44

78.540.83

F!.,!ND BALANQE J!.,!NE 30

$ 74,397.66 $

0.00 $ 74,397.66 s_.-.,75..,.6_9_1.44..

The notes to the general purpose financial statements are an Integral part of this statement.
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PIEDMONT REGIONAL LIBRARY

EXHIBIT "C"

COMBINED STATEMENT Of REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE 30. 1998

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State funds federal funds Local funds other funds

$ 328,333.30 $ 426,407.30

86,666.98 21,225.00

105,737.20 21,811.94

Total Revenues

$ 436,225.28 $ 553,956.44

EXPENDITURES

Current Program Services

$ 436,225.28 $ 555,250.22

Excess of Revenues over (under) Expenditures $

0.00 $ -1,293.78

FUND BALANCE JULY 1, 1997

778,226.91

75,691.44

FUND BALANCE JUNE 30. 1998

$ 778,226.91 $ 74,397.66

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00 $ 7,089.77

$

0.00 $ 7,089.77

$

0.00 $ 7,089.77

$

0.00 $

0.00

0.00

0.00

$

o.oo $ _ _..-o..o..o...

The notes to the general purpose financial statements are an integral part of this statement.
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PIEDMONT REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE- NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 1998

EXHIBIT "D"

OPERATING REVENUE None Recorded
OPERATING EXPENSES Current Ubrary Books and Materials Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Total Income (Loss)
FUND BALANCE JULY 1
FUNP BALANCE JUNE 30

LUCILLE NIX MEMORIAL
FUND

TED E. ROBERTS BOOK FUND

TOTALS
~Memorandum Onl~!
YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$

0.00 $

0.00 $

0.00 $

0.00

$

73.45 $

159.94 $

233.39 $

111.94

$

-73.45 $

-159.94 $

-233.39 $

-111.94

69.32

58.70

128.02

120.96

$

-4.13 $

-101.24 $

-105.37 $

9.02

1,282.60

1,101.24

2,383.84

21374.82

$

1,278.47 $

1,000.00 $

2,278.47 $ _ _2iiiiol.,3-8..,3..,84.,.

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. 1998

EXHIBIT"E"

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

ENDOWMENT FUNDS

LUCILLE NIX

TED E.

MEMORIAL

ROBERTS

FUND

BOOK FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$

-73.45 $

-159.94 $

___ -233.39 $

-..1..;.1.;..1..;..;.9.;;.4.,,;.,

$

69.32 $

58.70 $

128.02 $ _ _ _1:.=2.:.:0..::.;96;..

$

-4.13 $

-101.24 $

-105.37 $

9.02

82.60

101.24

183.84

174.82

Cash and Cash Equivalents - June 30

$

78.47 $

0.00 $

78.47 $ _ _ _1_8_3.,.8_4

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

PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOIES TO THE GENERAL Pl !RPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Piedmont Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. 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 11 members; 3 members appointed by the Banks County Library Board, 4 members appointed by the Barrow County Library Board and 4 members appointed by the Jackson County Library Board. The Library Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State ofGeorgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level ofoversight responsibility for the Library's operations. The Piedmont Regional Library is therefore determined to be a joint venture.
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 fmancial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. 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 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:
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.

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PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOIES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources 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.
FIDUCIARY FUND TYPE- the 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 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 ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes land, buildings, equipment and inexhaustible collections and books. The land and buildings that house the library are owned by Barrow County, Georgia.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources.
Liabilities which are expected 'to be financed from available spendable resources are reported as liabilities in the governmental funds.
Nonexpendable trust funds are accounted for on a flow ofeconomic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation 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:

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PIEDMONT REGIONAL LIBRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

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 ofthe transaction can be detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental 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 ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Both 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 val~. The Official Code of Georgia Annotated Section 36-83-4 authorizes the
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PIEDMONT REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 ofother political subdivisions ofthe State of Georgia

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

GENERAL FIXED ASSETS

General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. 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 of the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value ofthe assets or materially extend the useful lives ofthe assets is not capitalized. The values of inexhaustible collections and books at the Library are not readily determinable, therefore, the Library has not capitalized them.

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PIEDMONT REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
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 ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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 of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit 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 ofor any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,

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PIEDMONT REGIONAL LffiRARY

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 2: DEPOSITS

(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 of the State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $103,410.84. The bank balances were entirely covered by Federal depository insurance.

Note 3: GENERAL FIXED ASSETS

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

Equipment

Balance July 1, 1997

$ 705,682.56

Addition

5,428.77

Deductions

1.403.00

Balance June 30, 1998

$ 709.708,33

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 illness or injuries to employees; natural disaster; and unemployment compensation.

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

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PIEDMQNT REGIONAL LIBRARY

EXHIBIT "F"

NOIES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 4: RISK MANAQEW..ENT

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

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund 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 surety bonds to provide additional insurance coverage as follows:

Position Covered
Director All Other Employees
Note 5: CONTINGENT LIABILITIES

Amount
$ 10,000.00 $ 10,000.00

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)

IRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System ofGeorgia (IRS), which is a cost-sharing multiple employer defined benefit pension plan. IRS 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 ofAudits and Accounts.
IRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by IRS are required by State statute to contribute 5% oftheir gross earnings to IRS. The Library makes monthly employer contributions to IRS at rates adopted by the IRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate Is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

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PIEDMQNT REGIONAL LffiRARY

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 6: RETIREMENT PLANS
Fiscal Year 1998 1997 1996

Percentage Contributed
100% 100% 100%

Required Contribution
$ 26,930.81 $ 24,324.96 $ 23,391.37

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PIEDMONT REGIONAL LIBRARY COMBINING BALANCE SHEET
FIDUCIARY FUND TYPE JUNE 30. 1998

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments

NONEXPENDABLE TRUST FUNDS

LUCILLE NIX

TED E.

MEMORIAL

ROBERTS

FUND

BOOK FUND

TOTALS

JUNE 30, 1998

JUNE 30, 1997

$

78.47

$

78.47 $

183.84

1 200.00 $

1 000.00

21200.00

21200.00

Total Assets

$

1 278.47 $

1 000.00 $

2,278.47 $----2-,38-3..8..4.,

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

1,200.00 $ 78.47

1,000.00 $ 0.00

2,200.00 $ 78.47

2,200.00 183.84

Total Fund Equity

$

1 278.47 $

1 000.00 $

2,278.47 $ ----2-,38-3..,84-

See notes to the general purpose financial statements.

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PIEDMONT REGIONAL LffiRARY

SCHEDULE "1"

SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30, 1998

At June 30, 1998, the Piedmont Regional Library had no outstanding contractual commitments for the purpose of making computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is of primary concern for the Library's fmancial accounting system and the on-line automated computer system. The following stages have been identified as necessary to implement a year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000
lSSUe.
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
Validation!festing Stage- The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Library to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely
affected. As ofJune 30, 1998, the financial accounting system was determined to be at the Awareness Stage
and the on-line automated computer system was determined to be at the Assessment Stage.
The Library's fmancial accounting software (GENESIS) and hardware (Wang VS) is owned by the State
(Georgia Department ofEducation). These systems have been determined to be critical to the Library's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of
either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating
system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all libraries currently utilizing the GENESIS accounting software.

See notes to the general purpos~ financial statements.
- 17-

PIEDMONT REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 1998
AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Regular Governor's Reading Incentive Program Maintenance and Operation

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

230,591.30

52,566.00 95,284.00 47,966.00

$--------~4~26~,4~0~7-.3-0

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

PIEDMONT REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30. 1998
AGENCY/FUNDING GRANT Education, U.S. Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "3"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND

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

PIEDMONT REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30. 1998
LOCAL SOURCES
Boards of Commissioners Banks County Barrow County Jackson County
Boards of Education Banks County Barrow County City of Commerce Jackson County
City Governments Auburn Bethlehem Carl Commerce Homer
. Jefferson Pendergrass Maysville Nicholson Statham Winder
Jefferson Public Library Board

SCHEDULE "4"

GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND

$

2,363.93

50,817.36

1,474.10

. 2,210.72 17,064.60
750.00 5,285.40

800.00 1,700.00
800.00 532.40 2,363.93 656.16 850.00 728.60 850.00 950.00 15,540.00 5,306.16

$

111 ,043.36

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

NAME
ALBRITTON,DEBBIE BRASELTON,VICKIE H DUKE,PAGEE FORRESTER,JESSICA R HARPER,MENDALYN J HARRIS,HARRIET H HAYES,SHARON G HOLLIDAY,SANDRA R HOLMES,NANCY M HOOVER,ANNA R KREBS,JANE G POPER,TONY RAY,NANCYC SUGGS,AMANDA THOMPSON,ROSE S VILLANUEVA,KELL Y
Accruals June 30, 1997 June 30, 1998
Totals per Report

PIEDMONT REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 199~

SCHEDULE "5"

TITLE CATEGORY
Clerk Circulation Desk Aide Aide Aide Clerk Bookkeeper Cataloger Librarian Librarian Clerk Custodian Director Aide Secretary Custodian

SALARIES

$

2,584.66

14,332.56

1,976.81

2,655.95

2,440.72

5,332.42

6,831.61 $

41,462.40

48,280.40

48,280.40

2,773.14

1,093.47

53,599.90

2,546.14

17,211.66

4,138.15

$

255,540.39 $

TRAVEL
26.00 1,293.46
624.25 2,156.71
10.00 4,110.42

-64.25 85.75

$

255,540.39 $ _ _ _4..,,1_3_1.9..2-

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