Audit report, Sara Hightower Regional Library, Rome, Georgia, year ended June 30, 1997

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AUDIT REPORT SARA HIGHTOWER REGIONAL LIBRARY
ROME, GEORGIA YEAR ENDED JUNE 30, 1997

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

SARA IDGHTOWER REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

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 NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

15

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

16

2

FEDERAL

17

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

18

4 SCHEDULE OF SALARIES AND TRAVEL

19

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

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 11, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education
and Director and Members of the Sara Hightower 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 Sara Hightower Regional Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Sara Hightower 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 Sara Hightower Regional Library as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Sara Hightower Regional Library taken as a whole. The accompanying combining statements (Exhibits E and F) and the fmancial schedules (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose fmancial statements and in our opinion, is fairly presented in all material respects in relation to the generalpurpose financial statements taken as a whole.
97ARL-40

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.

CLV:ds 97ARL-40

Claude L. Vickers State Auditor

SARA IllGHTOWER REGIONAL LffiRARY

SARA HIGHTOWER REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1997

ASSETS
Cash and Cash Equivalents
Accounts Receivable
General Fixed Assets Equipment Inexhaustible Collections and Books
Amount to be Provided in Future Years For Payment of Compensated Absences

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 243,890,87 $

893.24

10,500,00

3,245.39

Total Assets

$ 254,390.87 $ ====4=,1=3.8.....6..3. =

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Compensated Absences
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For Continuation of Federal Program
Unreserved Undesignated
Total Fund Equity

$ 23,638.16 $ $ 23,638.16 $

471.02 471,02

$ $ 230,752.71 $ 230,752.71 $

3,667.61 0,00
3,667.61

Total Liabilities and Fund Equity

$ 254,390.87 $ ====4=,=13::;;8=,6==3

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

EXHIBIT"A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

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

$ 244,784.11 $ 180,099.83

13,745.39

33,534.85

$ 1,658,555.28 3,339,521.57

1,658,555.28 3,339,521.57

1,621,640.88 3,266,296.97

$

39,974.08

39,974.08

43,688.19

$ 4,998,076.85 $

39,974.08 $ 5,296,580.43 $ 5,145,260.72

$

$

39,974.08

$

39,974.08 $

$ 24,109.18 39,974.08
64,083.26 $

6,106.94 22,294.93 43,688.19
72,090.06

$ 4,998,076.85 $ 4,998,076.85

$ 4,998,076.85 $ 4,887,937.85

3,667.61

230,752.71

185,232.81

$ 5,232,497.17 $ 5,073,170.66

$ 4,998,076.85 $

39,974.08 $ 5,296,580.43 $ 5,145,260.72

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SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "B"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30,1997

FUND BALANCE JUNE 30

$ 230,752,71 $ 3,667,61 $

234.420,32 $ =====18=501::,2=3=2,=:8.1..

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

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "C"

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE 30,1997

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 410,996,64 $ 409,286.64 1,342,003.30 1,386,073.42

Total Revenues

$ 1,752,999.94 $ 1,795,360.06

EXPENDITURES

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

$ 819,174.67 $ 164,011.13 343,173,67 257,566.87 232,065,00

765,618.80 167,198.06 357,775.31 242,694.82 210,801.17
5,752.00

Total Expenditures

$ 1,815,991.34 $ 1,749,840.16

Excess of Revenues over (under) Expenditures $ -62,991.40 $

45,519.90

FUND BALANCE JULY 1,1996

184,986.30

185,232.81

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 8,700,00 $ 8,700.00 63,461,64 63,242.56
$ 72,161.64 $ 71,942.56

$ 72,161.64 $ 68,274.95

$ 72,161.64 $ 68,274.95

$

0.00 $ 3,667.61

0.00

0.00

FUND BALANCE JUNE 30,1997

$ 121,994.90 $ 230,752.71

$

0.00 $ 3,667.61

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

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Sara Hightower 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 present all fund types and account groups of the Library.
The Library Board consists of 16 members; 11 members appointed from the Floyd County Library Board and 5 members appointed from the Polk County Library Board. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
Although the Floyd County Library Board appoints a voting majority of the Sara Hightower Regional Library's governing board, the appointed board members have no continuing relationship with the entity. No single governmental agency has oversight responsibility or managerial control over the Library, nor is any of the participating governments responsible for funding a deficit of the Library. Accordingly, the Library's financial statements are not included in the financial statements of any other reporting entity. Therefore, the Sara Hightower Regional Library is determined to be a jointly governed organization.
FUND ACCOUNTING
The Library uses funds and account groups 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 of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and account groups 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:

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SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FUND - the fund used to account for all 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 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.
ACCOUNT GROUPS
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 Floyd County Board of Commissioners owns the land and buildings utilized in the operation of the Library.
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences not appropriately accounted for and recorded in other fund types.
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 of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be fmanced from available spendable resources, are reported in the General Long-Term Debt Account Group.
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.

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SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Sara Hightower Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of 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.
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 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 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 of the assets or materially extend the useful lives of the assets is not capitalized.

-8-

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
Reimbursements of expenditures initially made from a fund thatare properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe 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.
Acceptable security for deposits consists of anyone 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,

-9-

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws 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, 1997, the bank balances were $307,601.41. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging fmancial 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, 1997, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

207,601.41

3

0.00

Total

$ 307.601.41

- 10-

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

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, 1996 Additions Deductions Balance June 30, 1997

Equipment

Inexhaustible Collections and Books

Total

$ 1,621,640.88 $ 3,266,296.97 $ 4,887,937.85

58,873.60

193,178.60

252,052.20

21,959.20

119,954.00

141,913.20

$ 1.658,555.28 $ 3.339,521.57 $ 4.998,076.85

Note 4: RISK MANAGEMENT

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

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

The Library has elected to self-insure for all losses related natural disaster. The Library has not experienced any losses related to this risk in the past three years.

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditure 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 experienced any unemployment compensation claims during the last two years.

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

Position Covered

Amount

All Employees

$ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1997, were as follows:

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SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 5: GENERAL LONG-TERM DEBT

Compensated Absences

Balance July 1, 1996

$ 43,688.19

Additions Leave Earned and Utilized (Net)

-3,714.11

Balance June 30, 1997

$ 39,974.08

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: ACCUMULATED EMPLOYEES' LEAVE

The Library's professional personnel earn annual leave at a rate up to 30 days per year based upon the number ofyears employment and professional training. Annual leave is maintained on a calendar basis and all unused annual leave at December 31 each year is forfeited. Employees who terminate employment will be paid for accumulated unused annual leave in the year of termination. See Note 1 - Compensated Absences

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

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SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 8: RETIREMENT PLANS
Fiscal Year
1997 1996 1995

Percentage Contributed
100% 100% 100%

Required Contribution
$ 112,317.42 $ 107,332.46 $ 104,473.17

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ASSETS Cash and Cash EqUivalents Accounts Receivable
Total Assets

SARA HIGHTOWER REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1997

EXHIBIT"E"

LOTTERY

FEDERAL

TOTALS

PROGRAM PROGRAMS JUNE 30, 1997 JUNE 30, 1996

$

0,00 $

893,24 $

893,24

3,245.39

3,245.39 $ _ _..;:6;.l,.4,;,;:9.;:;,8:.;:,.3.:.,.4

$ ===="",0=.0.0... $

4,138.63 $

4,138.63 $ ===6..,.4.=9=8..3...=4

Total Liabilities and Fund Equity

$

0.00 $ 4,138.63 $

4,138.63 $ ===60:l0,4..9...8..=.34=,:

See notes to the general purpose financial statements. - 14-

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "F"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30,1997

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

LOTTERY PROGRAM

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996

$ 8,700,00

$

$ 63,242,56

$ 8,700,00 $ 63,242,56 $

8,700,00 $ 63,242,56
71,942.56 $

10,000,00 78,444,27
88,444.27

$ 8,700.00 $ 59,574.95 $

$ 8,700.00 $ 59,574.95 $

$

0.00 $

3,667.61 $

0.00

0.00

68,274.95 $
68,274.95 $ 3,667.61 $ 0,00

78,444.27 10,000.00 88,444.27
0.00
0.00

FUND BALANCE JUNE 30

$ _ .......~O.;,;;.OO;..$

3,667.61 $ =====3~,6;,;;6;,;.,7;,;;;.6=1 $ ====0..0...=0

See notes to the general purpose financial statements.

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SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1997

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Talking Book Centers Maintenance and Operation Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 197,881.64 70,491.00 74,023.00 66,891.00
----$

$ 197,881.64 70,491.00 74,023.00 66,891.00

8,700.00

8,700.00

$ 409,286.64 $

8,700.00 $ 417,986.64

See notes to the general purpose financial statements.

- 16-

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30,1997
AGENCY/FUNDING
GRANTS Education, U. S. Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services Through Georgia Department of Human Resources Technology Related Assistance for Individuals with Disabilities Act Title I - Technology Assistance Program Tools for Life

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND

$

16,000.00

47,242.56

$

63,242.56

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

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF EXPENDITURES LOTIERY PROGRAM YEAR ENDED JUNE 30, 1997
EXPENDITURES Program Services Supplies Equipment

SCHEDULE "3"

ASSISTIVE TECHNOLOGY

$

2,375,52

6,324.48

$

8,700.00

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

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Amos, Anderson, Billingsley, Bouchard, Bridges, Bright, Broome, Burton, Caldwell, Carlson, Childers, Clark, Cleveland, Collins, Cook, Cooley, Copeland, Davidson, Davis, Day, Dollar, Doyle, Drummond, Drummond, Duncan, Early, Evans, Evans, Fancher, Floyd, Forrister, Foster, Frasier, Garn, Gentry, Gibbons, Gilbert, Greeson, Hampton, Head, Hightower, Hume, Ismail, Jayasekar, Johnson,

Patricia Cook Susan F. Gwen M. Harvey Jane C. Tommy R. Sandra J. Patricia M. Melanie E. Susan M. Martha B. James M. Sharon Carruth Elizabeth A. Julie M. Susan Sexton Lana J. Joann P. Jennifer L. Stephanie Ann Edward Lee, Jr. James D. Holly Krista Regina Ann Martha S. Judy D. Barbara P. James David Janet Sue Linda A. Deborah Lynn Mary A. Krista Leigh Barbara L. Teresa A. Mary B. Anne E. VirginiaM. DawnW. Stephen R. Carolyn C. Dixie Ann Lizah Shalini AliceV.

POSITION
PIT Reference Library Specialist Literacy Library Assistant Special Collections Assistant Video Technician Circulation Library Assistant Maintenance Assistant Library Aide Library Aide Adult Services Library Specialist Library Specialist I Audio Visual Assistant Library Aide Children's Department Assistant Director Library Aide Director Library Aide Branch Manager Library Aide Library Aide Building Superintendent Reference Librarian Library Aide Library Aide Technical Services Assistant Circulation Assistant Children's Library Specialist Reference Specialist Library Aide Data Maintenance Librarian Library Assistant Circulation Assistant Library Aide Circulation Library Assistant Children's Library Assistant Video Assistant Bookmobile Supervisor PIT Office Assistant Library Assistant Library Aide Talking Book Assistant Video Library Assistant Library Assistant Library Aide Library Assistant
- 19-

SALARIES

TRAVEL

$

5,081.07

5,577.25 $

241.22

14,764.41

67.00

17,027.40

21,348.72

2,758.84

21,609.90

12.50

1,606.74

31,680.84

79.50

22,168.74

16,747.32

991.38

17,595.18

261.16

8,751.60

169.81

46,902.40

3,422.45

2,702.21

21,483.72

359.44

1,811.54

173.62

24,440.88

45,882.00

896.83

1,926.73

21,934.98

14,927.94

30,111.42

243.76

28,084.32

12,778.98

43,140.60

1,606.83

12,728.33

4,700.48

3,504.81

16,623.93

31,209.50

93.00

20,585.40

270.72

17,475.28

45.41

116.30

12,495.40

249.20

17,809.68

262.69

10,615.61

805.93

18,980.70

99.22

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Johnston, Jones, Kinzer, Kwiatkowski Lackey, Lindsey, Lockley, Machan, Mann, McKinzie, Mills, Moore, Morris, Munro, Osborn, Parham, Penn, Reeber, Reid, Ridgeway, Russell, Shiflett, Skeen, Stephens, Thomas, Thrasher, Wallace, Wheeler, Wilkerson, Wilkins, Wiliams, Woodard, Wright,

Patricia A. Jennifer M. Jacqueline D, Karen F. Diane E. Marsha Leigh Millie Sandra J. Jeanne Lynn Brandy Brown Diana C. Brent Burlene H. Amelia Slaton Holly Laura Cathy Yevette ZinaA.
Patricia R.
James Phil Jeannie I. Lucie Janie Beth Joyce A. Michael Angela Lee Deborah S. Deana M. Mary Ann Sandra F. Kathy Lessie B. Frances Katherine Michelle

Total Cash Basis

Accruals June 30, 1996 June 3D, 1997

POSITION
Branch Manager Library Aide Special Collections Specialist Circulation Assistant Audio Visual Supervisor Library Aide Reference Specialist Branch Manager Audio Visual Library Assistant Library Assistant Administrative Assistant Library Aide Talking Book Specialist Library Aide Library Aide Library Aide Technical Services Assistant Library Aide Library Assistant Branch Library Assistant Library Assistant Library Aide Bookkeeper Library Assistant Library Aide Children's Library Assistant Library Assistant Library Assistant Library Assistant Library Aide Library Aide Library Aide Library Aide

SALARIES

TRAVEL

$

10,674.36 $

100.58

2,179.79

19,578.72

16,921.50

26,011.32

12.00

3,092.71

22,757.16

622.46

22,182.42

377.00

12,626.94

1,904.82

31,508.02

152.95

530.81

5,090.19

99.47

3,945.93

619.31

18,753.18

171.24

16,319.70

12,778.98

1,199.95

1,520.62

30,429.42

8,051.43

4,109.76

16,921.50

238.41

23,160.00

1,090.14

16,097.82

206.00

21,341.61

638.84

959.37

1,071.98

915.96

$ 1,007,405.44 $ 9,601.75

-74.63 1,017.03

See notes to the general purpose financial statements.

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$ 1,007,405.44 $ 10,544.15

SECTIONll FINDINGS AND QUESTIONED COSTS

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS EXPENDITURESILIABILITIESIDISBURSEMENTS Inadequate Separation of Duties Finding Control Number 6572-93-01
The audit report for the year ended June 30, 1996, noted that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. For the year under review, an examination ofthe internal control procedures revealed that the Library did not provide adequate separation of duties in the performance of the following accounting functions and related procedures:
Bank reconciliation function was not separated from the check preparation and check distribution functions; cash receipts function not separated from the deposit preparation and the recording of cash receipts on the accounting records; and the check preparation function not separated from the recording of cash disbursements on the accounting records.
These conditions were a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.