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

AUDIT REPORT SATILLA REGIONAL LIBRARY
DOUGLAS, GEORGIA YEAR ENDED JUNE 30, 1994

SA TILLA REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIIlBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

12

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

13

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

14

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

15

SCHEDULES

1 ANALYSIS OF CASH AND CASH EQUIVALENTS

16

2 ACCOUNTS RECENABLE

17

SCHEDULE OF REVENUE

3

STATE

18

4

FEDERAL

19

5

LOCAL AND OTHER

20

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

21

7 MEMBERSHIP OF LIBRARY BOARD

22

8 SCHEDULE OF SALARIES AND TRAVEL

23

SATILLA REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

~.epartm.eut of J\uhits
254 WASHINGTON STREET, SW ROOM 214
J\thmta, Oieorgia 30334-8400
January 10, 1995

FINANCIAL AUDl1S (404) 656-2180
PROGRAM AUDl1S (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Satilla Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Satilla Regional Library, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and 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.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The effects on the general purpose financial statements of this omission have not been determined, but are believed to be material.
94ARL-42

In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Satilla Regional Library as ofJune 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Satilla Regional Library taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 8), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Satilla Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-42

SATILLA REGIONAL LIBRARY - 1-

SATILLA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES JUNE 30. 1994

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents Accounts Receivable

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

TOTAL

GENERAL

REVENUE

PROJECTS

(Memorandum

FUND

FUND

FUND

Only)

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

$ 49,785.47 $ 11,722.89 $ 34,341.16 $ 95,849.52

10,500.00

10,500.00

Total Assets

$ 60,285.47 $ 11,722.89 $ 34,341.16$ 106,349.52
============= ============= ============= =============

LIABILITIES AND FUND EQUITY

LIABILITIES
Accounts Payable Unearned Revenue
Total Liabilities
FUND EQUITY

\
$ 2,963.23 $ 1,867.67 9,855.22
------------- -------------
$ 2,963.23 $ 11,722.89
------------- -------------

$

4,830.90

9,855.22

$ 14,686.12

Fund Balances Reserved For State Capital Outlay Projects Unreserved Designated for Purchase of Bookmobile Undesignated
Total Fund Equity

$ 34,341.16 $ 34,341.16

$ 15,000.00

15,000.00

42,322.24 $

0.00

0.00

42,322.24

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

$ 57,322.24 $

0.00 $ 34,341.16 $ 91,663.40

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

Total Liabilities and Fund Equity $ 60,285.47 $ 11,722.89 $ 34,341.16$ 106,349.52
============= ============= ============= =============

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

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

EXHIBIT "B"

SPECIAL

CAPITAL

TOTAL

GENERAL

REVENUE

PROJECTS

(Memorandum

FUND

FUND

FUND

Only)

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

REVENUES
--------

State Funds Federal Funds Local and Other Funds

$ 295,038.28 $ 100,644.78

$ 395,683.06

12,000.00

12,000.00

181,244.68

$

1,066.51

182,311.19

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

Total Revenues

$ 476,282.96 $ 112,644.78 $ 1,066.51 $ 589,994.25
------------- ----------~-- ------------- -------------

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

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

$ 204,545.18 $ 43,490.79

$ 248,035.97

46,973.88

3,836.92

50,810.80

38,385.68

64,798.99

103,184.67

102,645.37

518.08

103,163.45

45,826.52

45,826.52

$ 6,843.47

6,843.47

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

Total Expenditures

$ 438,376.63 $ 112,644.78 $ 6,843.47 $ 557,864.88
------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $ 37,906.33 $

0.00 $ -5,776.96 $ 32,129.37

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

19,415.91

0.00

40,118.12

59,534.03

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

FUND BALANCE JUNE 30

$ 57,322.24 $

0.00 $ 34,341.16 $ 91,663.40

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

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

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

EXHIBIT "C"

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

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 395,683.06 $ 220,330.21 $ 175,352.85

12,000.00

8,000.00

4,000.00

182,311.19 148,371.03

33,940.16

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

$ 589,994.25 $ 376,701.24 $ 213,293.01
------------- ------------- -------------

$ 248,035.97 $ 146,633.73 $ -101,402.24

50,810.80

44,346.81

-6,463.99

103,184.67

40,958.76 -62,225.91

103,163.45 104,754.45

1,591.00

45,826.52

49,083.00

3,256.48

6,843.47

42,423.06

35,579.59

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

$ 557,864.88 $ 428,199.81 $ -129,665.07
------------- ------------- -------------

$ 32,129.37 $ -51,498.57 $ 83,627.94
------------- ------------- -------------

$

0.00 $ 77,548.83 $ 77,548.83

-77,548.83

-77,548.83

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

$

0.00 $

0.00 $

0.00

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

$ 32,129.37 $ -51,498.57 $ 83,627.94

59,534.03

61,838.97

-2,304.94

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

$ 91,663.40 $ 10,340.40 $ 81,323.00
============= =============

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

SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Satilla Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in the following paragraphs, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Satilla Regional Library is determined to be a joint venture.
The Library Board consists of eight members; two members appointed by Atkinson County Library Board, four members appointed by Coffee County Library Board, and two members appointed by JeffDavis County Library Board. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Satilla Regional Library is located in Douglas, Georgia, and serves Atkinson, Coffee, and Jeff Davis Counties.
FUND ACCOUNTING
The Library uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 5-

SATILLA REGIONAL LIBRARY

EXlllBIT D 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds pre$ented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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.
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.

- 6-

SATILLA REGIONAL LIBRARY

ExmBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
Satilla Regional Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure ofthe aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division of Public Library Services, as a part ofthe Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF CASH DEPOSITS Cash consists of deposits (including N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of allotted funds from participating local governments. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund transactions:
Reimbursements of expenditures 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.
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 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.
- 7-

SATILLAREGIONALLIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1994

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten-days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount ofnot less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $144,535.65. 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.
- 8-

SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

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

The Library's deposits are classified by risk category at June 30, 1994, as follows:
Risk CategOiy 1 2 3 Total
Note 3: RISK MANAGEMENT

Bank Balance
$ 134,341.16 10,194.49 0.00
$ 144,535.65

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

Note 4: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of $21,855.22 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. The Georgia Department ofEducation has funding available to the Library in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Media Center and Library Equipment

$ 21,855.22

The amount described in this note is not reflected in the general purpose financial statements.

Note 5: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

- 9-

SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1994, was $191,396.88; total payroll was $215,404.09.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $34,087.89, of which $22,603.90 was made by the Library and $11,483.99 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.

- 10 -

SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 6: RETIREMENT PLANS

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090.292.000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of $22,603.90 was actuarially determined and represented .0043% of total contributions made by all participating employers.

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

Note 7: SURETY BONDS

The Library Director, Mrs. Betty Schild, is bonded in the amount of $20,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60330580, on which premium was paid through October 20, 1994.

- 11 -

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

EXHIBIT "E"

ASSETS Cash and Cash Equivalents
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Unearned Revenue
Total Liabilities FUND EQUITY
Fund Balances Unreserved
Total Liabilities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 11,722.89 $

0.00 $ 11,722.89

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

$

1,867.67

9,855.22

$ 11,722.89

$

1,867.67

9,855.22

$ 11,722.89

0.00 $

0.00

0.00

$ 11,722.89 $

0.00 $ 11,722.89

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

See notes to the general purpose financial statements. - 12 -

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

EXHIBIT "F"

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

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCT! ON ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 100,644.78

$ 100,644.78

$

12,000.00

12,000.00

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

$ 100,644.78 $

12,000.00 $ 112,644.78

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

$ 31,640.79 $

11,850.00 $ 43,490.79

3,720.00

116.92

3,836.92

64,798.99

64,798.99

485.00

33.08

518.08

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

$ 100,644.78 $

12,000.00 $ 112,644.78

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

$

0.00 $

0.00 $

0.00

0.00

0.00

0.00

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

$

0.00 $

0.00 $

0.00

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

See notes to the general purpose financial statements. - 13 -

SATILLA REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30, 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Reserved For State Capital Outlay Projects

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

6342-91-SB-015 6342-91-SB-016

TOTAL

$ 15,503.04 $ 18,838.12$ 34,341.16
============== :z-=------==-- ============

$ 15,503.04$ 18,838.12 $ 34,341.16
============== ============== =============

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

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

EXHIBIT "H"

REVENUES
--------
Local and Other Funds
EXPENDITURES
------------
Current Professional and Technical Services Supplies
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
-------------------
FUND BALANCE JUNE 30

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

6342-91-SB-015 6342-91-SB-016

TOTAL

$

482.80 $

583.71 $ 1,066.51

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

$

263.07

$

263.07

981.83 $

525.43

1,507.26

2,100.00

2,100.00

978.14

978.14

1,995.00

1,995.00

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

$

1,244.90 $

5,598.57 $

6,843.47

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

$

-762.10 $ -5,014.86 $ -5, 776. 96

16,265.14

23,852.98

40,118.12

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

$ 15,503.04 $ 18,838.12 $ 34,341.16
============== ============== =============

See notes to the general purpose financial statements. - 15 -

SATILLA REGIONAL LIBRARY ANALYSIS OF CASH ANO CASH EQUIVALENTS
JUNE 30, 1994
INTEREST BEARING ACCOUNTS
Bank South, N.A., Douglas, Georgia
N.O.W. Account (2.00%) The Citizens Exchange Bank, Pearson, Georgia
N.O.W. Account (3.05%) The Peoples Bank, Willacoochee, Georgia
N.O.W. Account (3.15%) OTHER
Petty Cash

SCHEDULE "l"
$ 61,438.36 15,503.04 18,838.12 70.00
$ 95,849.52
---=--=--=---

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

SATILLA REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1994
City Government Douglas
Coffee County Board of Education Bookmobile Acquisition

SCHEDULE "2"
GOVERNMENTAL FUND TYPE GENERAL FUND
$ 2,500.00 8,000.00
$ 10,500.00
-----=---=-==

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

SATILLA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Media Center and Library Equipment
CONTRACT Community Affairs, Georgia Department of Through Coffee County Board of Education Bookmobile Acquisition

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 158,156.28 33,241.00 28,641.00

$ 158,156.28 33,241.00 28,641.00

$ 100,644.78 100,644.78

75,000.00

75,000.00

$ 295,038.28$ 100,644.78$ 395,683.06
============= ============= ----==-==----

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

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

SCHEDULE "4"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ 12,000.00

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

SATILLA REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1994

SCHEDULE "5"

LOCAL SOURCES County Boards of Education Atkinson Coffee Jeff Davis
City Governments Ambrose Broxton Douglas Hazlehurst Nicholls Pearson Willacoochee
County Governments Boards of Commissioners Atkinson Coffee Jeff Davis
OTHER SOURCES Donations Interest Earned Fines and Fees Sales and Services Books Genealogy Services Photocopies Other

GOVERNMENTAL FUND TYPES

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

CAPITAL

GENERAL

PROJECTS

FUND

FUND

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

TOTAL
-------------

$ 4,000.00 39,867.00 10,293.60
3,000.00 6,500.00 37,500.00 7,500.00 2,000.00 2,550.00 2,500.00

$

4,000.00

39,867.00

10,293.60

3,000.00 6,500.00 37,500.00 7,500.00 2,000.00 2,550.00 2,500.00

6,747.00 31,434.00 8,700.00

6,747.00 31,434.00 8,700.00

5,931.73 1,549.05 $ 3,459.23

1,066.51

5,931.73 2,615.56 3,459.23

1,302.60 1,639.54 4,088.87
682.06
-------------

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

1,302.60
1,639.54 4,088.87
682.06
-------------

$ 181,244.68 $ 1,066.51 $ 182,311.19

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

SATILLA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

SCHEDULE "6"

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

SPECIAL

GENERAL

REVENUE

FUND

FUND

TO.TAL

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

$ 215,404.09 58,274.55 4,523.13
$ 6,702.97 6,088.69 36,530.91 36,025.10 12,247.39 2,529.84

$
3,458.08 19,096.06 7,850.00 1,979.55

215,404.09 58,274.55 4,523.13 3,458.08
6,702.97 25,184.75 44,380.91 36,025.10 14,226.94 2,529.84

60,049.96

80,261.09

140,311.05

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

$ 438,376.63 $ 112,644.78$ 551,021.41
============= ============= ============

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

SATILLA REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30. 1994
BOARD MEMBER ADDRESS
Dr. Jim Cottingham, Chairman (*) 318 East Ward Street Douglas, Georgia 31533
Mrs. Mary Corbitt (*) P. 0. Box 153 Pearson, Georgia 31642
Mrs. Meg Edwards (*) 1904 Bo Jo Ella Drive Douglas, Georgia 31533
Mr. Michael Hill (*) P. 0 Box 836 Hazlehurst, Georgia 31539
Mrs. Elise Leverette(*) P. 0. Box 29 Ambrose, Georgia 31512
Mr. Jim Mills (*) P. 0. Box 508 Willacoochee, Georgia 31650
Mrs. Gwen Thomas(*) 600 Tallahassee Avenue Hazlehurst, Georgia 31539
Dr. William R. Wills(*) P. 0. Box 32 Douglas, Georgia 31533
(*) Denotes Board Members Serving as of June 30, 1994

SCHEDULE "7"

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

SATILLA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "8"

PERSONNEL
---------
Cothran, Dockery, Gourley, Hunt, Kibbey, Kinchen, Lee, Mercer, Paulk, Ricketson, Sammons,
Schild, Smith, Smith, Swain, Swain, Vickers,

Edna P. Norma K. Winifred M. Shirley A. Joann V. Weeda T. Mary Lou Peggy Sara J. Frances Eleanor C.
Betty Emory Jimmie Lee Barbara Etta M. Jacqueline

POSITION
--------
Library Aide Library Manager Genealogist Library Assistant Library Assistant Library Manager Library Manager Librarian Librarian Library Aide Technical Services Aide/ Bookmobile Librarian Director Technical Services Librarian Branch Manager Library Aide Library Aide Bookkeeper/Secretary

SALARIES

TRAVEL

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

$ 4,216.00

3,672.00

12,100.44

9,506.44

11,915.28

4,227.96

3,978.00

28,798.80 $

472.08

33,205.20

482 .18

131. 75

11,915.28

12.18

43,406.80

1,650.61

28,633.36

1,200.39

3,591.00

998.75

3,191.75

11,915.28

705.69

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

$ 215,404.09 $ 4,523.13
============= =============

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

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SATILLA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Improper Expenditures - Employee Bonuses Amount: $1,360.00 Audit Control Number 6342-93-01

The audit reports for the years ended June 30, 1989, and June 30, 1990, noted that payments of $1,010.00 and

$350.00, respectively, were made from the General Fund to various Library employees for Christmas, and/or

longevity bonuses. The practice of granting bonuses is in violation ofthe Constitution of Georgia Article 3,

Section 6, Paragraph 6. During the year under review, these questioned costs were not resolved. Appropriate

action should be taken by the Library to secure reimbursement of $1,360.00 for deposit to the Library's

General Fund.



AUDIT FOLLOW-UP/RESOLUTION Payroll Withholding Overpayments Amount $366.15 Audit Control Number 6342-93-02 Finding Deleted

The audit report for the year ended June 30, 1991, reported $366.15 in payroll withholding overpayments consisting of$52.89 for Federal Income Tax, $0.05 for Georgia Income Tax, $89.45 for Teachers' Retirement, $9.80 for Group Health Insurance and $213.96 for other Group Insurance. Payments should not be made to agencies in excess ofwithholdings or collections from employees.

During the year under review, audit tests revealed that payments made did not exceed amounts withheld.

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6342-93-03

The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, our audit noted no improvement regarding adequate separation of employee duties. Control procedures are established for the purposes of providing management with reasonable assurance that the objectives ofthe entity are achieved. Lack of these control procedures leaves the integrity of the accounting system in question. Management should periodically review employee duties in an attempt to improve internal control through the distribution of responsibilities among the present employees.

SATILLAREGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6342-93-04
The audit report for the year ended June 30, 1993, noted that the Library did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records. In the year under review, the Library failed to establish a General Fixed Assets Account Group within formal accounting records. Absence of the General Fixed Assets Account Group results in noncompliance with Generally Accepted Accounting Principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, equipment, and inexhaustible collections and books owned by the Library and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SATILLA REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditures - Employee Bonuses Amount: $1,360.00 Audit Control Number 6342-93-01
The Board of Trustees has decided that clearing this finding would not be cost effective. Steps have been taken to assure that such payments are not repeated.
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6342-93-03
We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6342-93-04
The Genesis system currently used for accounting does not provide for accounting of fixed assets. Staffand budgetary limitations prevent the development of a local accounting procedure to resolve this finding.
Note: The Satilla Regional Library has elected not to provide comments for inclusion in this report other than the above.