Sara Hightower Regional Library, Rome, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
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SARA HIGHTOWER REGIONAL LIBRARY
ROME, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Russell W. Hinton State Auditor

SARA HIGHTOWER REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT 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

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

16

2

FEDERAL

17

3

LOCAL

18

4 SCHEDULE OF SALARIES AND TRAVEL

19

SECTIONil FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RussELL W. HINTON
STATE AUDITOR
1404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 30, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board ofRegents of the University System of Georgia
and Director and Members of the Sara Hightower Regional Library Board
JNDEPENDENT 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 ofand for the year ended June 30, 2001, as listed in the table ofcontents. These general-purpose financial statements are the responsibility ofthe 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 auditing standards generally accepted in the United States ofAmerica. 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 referred to above present fairly, in all material respects, the financial position ofthe Sara Hightower Regional Library as ofJune 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States ofAmerica.

2001ARL-40

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 financial schedules (Schedules I through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements ofthe Sara Hightower Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:gp 2001ARL-40

State Auditor

SARA HIGHTOWER REGIONAL LIBRARY

SARA HIGHTOWER REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001

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

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 402,401.38

$

23,104.38

5,729.67 $

375.00

2,810.31

Total Assets

$ 408,131.05 $

375.00 $ ===--2-5,9_1_4_,.69_

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Compensated Absences
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Unreserved Undesignated
Total Fund Equity

$

$

11,878.69

$

11,878.69 $

375.00 375.00

$ 396,252.36 $ $ 3961252.36 $

0.00 $ 0.00 $

25,914.69 25,914.69

Total Liabilities and Fund Equity

$ 408,131.05 $

375.00 $-==__2_5,,_91_4_.6,_9

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

EXHIBIT"A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS {Memorandum Onl:i} JUNE 30, 2001 JUNE 30, 2000

$

425,505.76 $

485,437.87

8,914.98

6,844.78

$ 1,551,142.93 3,353,678.08

1,551,142.93 3,353,678.08

1,663,639.44 3,241,588.08

$

481262.16

48,262.16

45z718.09

$ 4,904,821.01 $

48,262.16 $ 5,3871503.91 $ 5,443,228.26

$

$

48,262.16

$

48.262.16 $

375.00 11,878.69 $ 48,262.16
60,515.85 $

31,183.65 45,718.09
76.901.74

$ 4,904,821.01 $ 4,904,821.01

$ 4,904,821.01 $ 4,905,227.52

422,167.05

461,099.00

$ 5,326,988.06 $ 5,366,326.52

$ 4,904,821.01 $

48,262.16 $ 5,387,503.91 $ 5,443,228.26

- 3-

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

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under} Expenditures
FUND BALANCE JULY 1
Residual Equity Transfer
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

$

511,124.89

$

1,494,767.88

108,408.88

$ 2,114,301.65 $

375.00 375.00

$ 1,378,548.07 $ 153,679.84 357,211.10 291,051.16

375.00

$ 2,180,490.17 $

$

-66,188.52 $

461,099.00

11341.88

375.00 0.00 0.00

$

396,252.36 $ ...._ ....0.....0....0...

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$

2,810.31 $ 513,935.20 $ 465,914.00

375.00

58,584.30

71,417.00 1,566,184.88

1,413,663.20

108,408.88

206,924.62

$ 74,227.31 $ 2,188,903.96 $ 2,145,086.12

$ 1,378,923.07 $ 1,240,161.81

153,679.84

160,624.42

357,211.10

348,778.34

291,051.16

261,210.62

$ 46,970.74

46,970.74

$ 46,970.74 $ 2,227,835.91 $ 2,010,775.19

$ 27,256.57 $ -38,931.95 $ 134,310.93

0.00

461,099.00

326,788.07

-1,341.88

$ 25,914.69 $ 422,167.05 $ 461,099.00

-5-

SARA HIGHTOWER REGIONAL LIBRARY COMBINEQ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL ANQ SPECIAL REVENUE FUNDS
YEAR ENQEQ JUNE 30, 2001

EXHIBIT c

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Local Funds Other Funds

$ 511,724.84 $ 511,124.89

1,562,670.52 103,422.35

1,494,767.88 108,408.88

Total Revenues EXPENDITURES

$ 2,1n1a11.11 $ 2,114,301.65

Current Public Services Technical Services Support Services Maintenance and Operations

$ 1,424,384.73 $ 1,378,548.07

157,706.91

153,679.84

375,725.54

357,211.10

340,991.71

291,051.16

Total Expenditures

$ 2.298,808.89 $ 2,180,490.17

Excess of Revenues over (under) Expenditures $
FUND BALANCE JULY 1, 2QOO

-120,991.18 $ 461,099.00

-66,188.52 461,099.00

Residual Equity Transfer

1,341.88

FUND BALANCE JUNE 30, 2001

$ 340;107.82 $ 396,252.36

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00 $

375.00

$

0.00 $

375.00

$

0.00 $

375.00

$

0.00 $

375.00

$

0.00 $

0.00

0.00

$

0.00 $ _ _ _ _0..0...0..

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

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 unless otherwise disclosed in these notes, the financial statements 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 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 (?ther funds for continued operations and is the lowest level ofoversight responsibility for the Library's operations.
While the Floyd County Library Board appoints a majority ofthe Sara Hightower Regional Library's Board, the Floyd County Library Board is neither able to impose its will upon the Library nor is there a financial benefit/burden relationship between the two boards as defined by Governmental Accounting Standards Board. The Sara Hightower Regional Library is therefore considered to be a related organization of the Floyd County Library Board.
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 financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set ofaccounts. 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 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:
-8-

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type ofspecial revenue fund consists ofproceeds 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.
ACCOUNT GROUPS
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 Floyd County Board of Commissioners owns the land and buildings utilized in the operation of the Library.
GENERAL LONG-TERM DEBT ACCOUNT GROUP- A financial reporting device used to account for compensated absences obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers receivables collected within sixty days after year-end to be
-9-
.

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Sara Hightower Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates ofexpenditures 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 ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal yecrr end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand and demand deposits in authorized financial institutions. Georgia Laws aut.1"1orize the Library to deposit its funds in one or more solvent banks or insured Federal savings 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.

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. 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.
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 types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
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 or results ofoperations 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 ofmoney which has not
- 11 -

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS
been secured by surety bond, by guarantee of insurance, 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. Ifa depository elects the pooled method {OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11{b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
{1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
{2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
{3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
{4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
{5) Bonds of any public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
{6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Horne Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $600,553.95. The amounts ofthe 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.
- 12 -

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

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

Risk Category

Bank Balance

1

$ 100,000.00

2

0.00

3

500,553.95

Total

$ 600.553.95

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, 2000 Additions Deductions Balance June 30, 2001 Note 4: RISK MANAGEMENT

Equipment

Inexhaustible Collections and
Books

Total

$ 1,663,639.44 $ 3,241,588.08 $ 4,905,227.52

115,164.59

299,415.00

414,579.59

227,661.10

187,325.00

414,986.10

$ l,551,H2.23 $ 3.J~3.6Z8,28 $ :1.20:1.s21.01

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 unemploynientcompensation.

The Library has obtained commercial insurance for risk ofloss 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.

-13-

SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RJSK MANAGEMENT

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

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the 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, 2001, were as follows:

Compensated Absences

Balance July 1, 2000

$ 45,718.09

Additions Annual Leave Earned and Utilized (Net)

2,544.07

Balance June 30, 2001

$ 48,262.16

Note 6: ACCUMULATED EMPLOYEES' LEAVE

The Librarys professional personnel earn annual leave at a rate up to 30 days per year based upon the number of years employment and professional training. Annual leave is maintained on a calendar year 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 oftermination. See Note 1 - Compensated Absences

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SARA HIGHTOWER REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 7: 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% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001

100%

$ 117,588.11

2000

100%

$ 114,886.62

1999

100%

$ 119,596.08

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SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE 1

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

GRANTS

Board of Regents of the University System of Georgia

Public Libraries

Salaries

$

Travel

Library Materials

Talking Books Center

Maintenance and Operations

Major Repair and Renovation Grant Program

256,329.43 3,000.00
76,396.20 80,621.00 94,778.26
$

$ 21810.31

TOTAL
256,329.43 3,000.00
76,396.20 80,621.00 94,778.26
21810.31

$

511,124.89 $

s_ _ _ 2,810.31

s_13_.,9_3_s_.2.0.

See notes to the general-purpose financial statements.

-16-

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 2001
AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act Vacation Reading Program

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$=--==-==37=5=_0_0

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

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "3"

LOCAL SOURCES Boards of Education Floyd County Polk County Rome, City of City Governments Cave Spring Cedartown Rockmart Rome County Governments Boards of Commissioners Floyd Polk

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

8,000.00

8,000.00

8,000.00

33,261.00 12,874.00 39,474.34 512,712.54 $

781,530.00 90,916.00

$
26,417.00 45,000.00

8,000.00 8,000.00 8,000.00
33,261.00 12,874.00 39,474.34 539,129.54
826,530.00 901916.00

$

1,494,767.88 $

71,417.00 $ ===1==,5=66=='==18_4_.8=8

See notes to the general-purpose financial statements.

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE 4

NAME

TITLE CATEGORY

Amos, Barnes, Best, Bostwick, Bouchard, Bray, Bridges, Bright, Broome, Caldwell, Carlson, Cleveland, Cook, Cooley, Cornett, Craw, Cunningham, Davidson, Dillard, Dixon, Dollar, Doyle, Drummond, Drummond, Duden, Duncan, Early, Evans, Evans, Feld, Floyd, Frasier, Frasier, Gee, Gentry, Gibbons, Gilbert, Gillespie, Gorham, Grant, Hall, Hampton, Hardy, Harrison, Havens, Howard, Hunter, Hutchinson, Johnston, Kinzer, Kirkpatrick, Kwiatkowski, Lackey, Lowe, Mann, Martin, McKenzie, Mills,

Jeffrey A. Angela Thomas Alice Johnson Heather Shores Harvey Kelly Leann Janee. TommyR. Sandra J. MetanieE. SusanM. Sharon C. Jonathan Lee Susan Sexton Kimberly Beth Samuel Dooley Laura Owen Joann P. Krista Frasier Tiffany Samee Edward L. Jr. JamesD. Holly Krista Regina Ann Ruth Ann Martha S. JudyD. Barbara P. James David Jennifer Ann Linda A. Brenda Case Anna Michelle Margaret Elizabeth Teresa A. MaryB. AnneE. Jewel S. Lynn McMurrough Jeannie I. Jennifer Michelle DawnW. Tiffany Keren KimberlyD. Sarah Ashley Gia Natasha Wanda Kay Kelli Lynn Patricia A. Jacqueline D. Joan Margaret Karen F. OianeE. Judith 0. Jeanne Lynn Amanda Layne Brandy Brown OianaC.

Library Assistant Library Assistant Library Assistant Librarian Non Certified Branch Manager/Supervisor Library Assistant Library Aide Grounds Maintenance Librarian Non Certified Certified Librarian Branch Manager/Supervisor Library Assistant Library Assistant Director Library Assistant Library Assistant Library Assistant Branch Manager/Supervisor Library Assistant Library Assistant Branch Manager/Supervisor Certified Librarian Library Assistant Library Assistant Bookkeeper Library Assistant Library Assistant Branch Manager/Supervisor Librarian Non Certified Library Assistant Associate Director Librarian Non Certified Library Assistant Library Assistant Certified Librarian Library Aide Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Librarian Non Certified Library Assistant Library Assistant Library Assistant Branch Manager/Supervisor Librarian Non Certified Library Assistant Library Assistant Library Assistant Certified Librarian

See notes to the general-purpose financial statements.

-19-

SALARIES

$

865.87

20,137.62

6,159.49 $

16,822.33

20,098.61

3,110.63

27,211.55

7,518.00

29,551.53

37,444.49

28,838.05

24,787.74

609.77

59,418.26

2,782.85

1,475.79

2,449.96

26,295.90

1,670.44

698.39

33,207.97

55,292.80

1,897.10

15,485.24

35,640.11

15,229.16

19,137.63

37,444.49

33,137.81

3,870.95

55,504.31

2,332.77

4,711.16

294.07

35,411.69

25,869.61

20,686.92

12,947.23

4,174.08

15,555.72

14,445.00

19,763.56

5,211.05

1,852.93

3,886.72

5,469.18

4,166.58

553.78

12,634.29

3,635.80

2,247.70

25.41

31,557.08

18,637.02

18,385.11

3,329.57

2,275.47

46,153.86

TRAVEL
102.55 139.63 458.84 435.97 157.50 174.00 663.56 4,255.28
298.24 29.48
565.59 41.29 361.34 823.80
102.56 374.41
6.00 108.93
6.00
94.50
75.00

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE 4

NAME
Morris, Penn, Price, Reid, Rummel, Russell, Ruth, Savage, Schulz, Simpkins, Stephens. Sutton, Thornbury, Treadaway, Wallace, Wheeler, Whelchel, Wilkerson, Wilkerson, Woodard,

Linda Plumley Zina A. Mary Catherine James Phil Shira Breann Lucie Savannah J. Virginia M. Barbara F. Karen Grace Michael JerryC. Courtney Brenda Joy Deana M. Mary Ann KimberlyJ. Carolyn D. Sandra F. Frances

Totals per Report

TITLE CATEGORY
Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Librarian Non Certified Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Librarian Non Certified Library Assistant Librarian Non Certified Library Assistant

SALARIES

1,115.70

$

23,260.44

3,277.48

18,938.88

819.78

20,257.61

4,101.55

544.92

18,822.33

335.61

20,257.61

3,062.32

1,602.07

12,391.97

9,092.85

19,710.30 $

17,072.37

1,702.69

25,977.60

4,272.02

TRAVEL
342.78 315.28

$ 1,148,624.50 $ ,_......,...9.=,9=3_2.=53.,..

See notes to the general-purpose financial statements.

-20-

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE 4

NAME
Morris, Penn, Price, Reid, Rummel, Russell, Ruth, Savage, Schulz, Simpkins, Stephens. Sutton, Thornbury, Treadaway, Wallace, Wheeler, Whelchel, Wilkerson, Wilkerson, Woodard,

Linda Plumley Zina A. Mary Catherine James Phil Shira Breann Lucie Savannah J. Virginia M. Barbara F. Karen Grace Michael JerryC. Courtney Brenda Joy Deana M. Mary Ann KimberlyJ. Carolyn D. Sandra F. Frances

Totals per Report

TITLE CATEGORY
Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Librarian Non Certified Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Librarian Non Certified Library Assistant Librarian Non Certified Library Assistant

SALARIES

1,115.70

$

23,260.44

3,277.48

18,938.88

819.78

20,257.61

4,101.55

544.92

18,822.33

335.61

20,257.61

3,062.32

1,602.07

12,391.97

9,092.85

19,710.30 $

17,072.37

1,702.69

25,977.60

4,272.02

TRAVEL
342.78 315.28

$ 1,148,624.50 $ ,_......,...9.=,9=3_2.=53.,..

See notes to the general-purpose financial statements.

-20-

SECTION IT FINDINGS AND QUESTIONED COSTS

SARA HIGHTOWER REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Repeated From Prior Year Finding Control Number: 6572-00-01
As of June 30, 2001, the Sara Hightower Regional Library failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section... 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."
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.