Audit report, Satilla Regional Library, Douglas, Georgia, year ended June 30, 1995

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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, 1995

SATILLA 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 AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES -BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

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

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

1 CASH AND CASH EQUIVALENTS

18

SCHEDULE OF REVENUE

2

STATE

19

3

FEDERAL

20

4

LOCAL AND OTHER

21

5 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

22

6 MEMBERSHIP OF LIBRARY BOARD

23

7 SCHEDULE OF SALARIES AND TRAVEL

24

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 17, 1996

Honorable Zell Miller, Governor Members of the 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, 1995, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
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 aggregate effects on the general purpose financial statements of this omission have not been determined, but are believed to be material.
95ARL-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 of June 30, 1995, 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 I through 7), 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 ofthe general purpose financial statements and, in our opinion is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
tr~~
Claude L. Vickers State Auditor
CLV:dt 95ARL-42

SATILLA REGIONAL LIBRARY - 1-

ATI~ REGIONAi: blBRARY COMBINED ~LANCE SHEET ALL F!,.!ND lYPES ANQ ACCOUNT GROUP
J!,.!NE30 1995

EXHIBIT"A"

~ cash and cash Equivalents
Accounts Receivable
Amount to be Provided in Future Years For Payment of capital Lease Agreements

GOVERNMENTALFUNDlYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS !Memorandum On~) JUNE 30, 1995 JUNE 30, 1994

$ 92,578.83 $

4,074.13 $

0.00

$ 96,652.96 $ 95,849.52

10,500.00

$

3999.33

3999.33

Total Assets

$ 92,578.83 $

4 074.13 $

0.00 $

3,999.33 $ 100,652.29 $ 106,349.52

l,.IABll,.mfi;S AND FUNQ EQ!.!ITY
LIABILmE

Accounts Payable

$

Unearned Lottery Funds

capital Lease Agreements

Total Liabilities

$

FUNQEO!,.!ITY

Fund Balances

Reserwd

For Continuation of Federal Program

For State capital OUtlay Projects

UnreseNed

Designated for Purchase of Bookmobile

Undesignated

$

Total Fund Equity

$

4,077.05 4,077.05
$ 88,501.78 88,501.78 $

4,074.13
0.00 $ 4074.13 $

Total Liabilities and Fund Equity

$

921578.83 $

4 074.13 $

$

4,077.05 $

4,830.90

9,855.22

$

3,999.33

3999.33

$

3,999.33 $

8,076.38 $ 14,686.12

0.00 0.00
0.00 $

$

4,074.13

$ 34,341.16

88 501.78

15,000.00 42,322.24

$ 92 575.91 $ 91 663.40

3 999.33 $ 100,652.29 $ 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
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30 1995

EXHIBIT"B"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay Debt Service
Principal
Interest
Tolal Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Capital Lease
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Refund of Excess Local Funds to City of Pearson Refund of Excess Local Funds to City of Willacoochee

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 229,587.31 $

22,95522

$ 252,542.53 $ 395,683.06

15,000.00

15,000.00

12,000.00

209,047.14 _ _ _ _ _ $ _ _ _634~=2~5

209,681.39

182,311.19

$ 438,634.45 $

37,955.22 $

634.25 $ 477,223.92 $ 589,994.25

$ 159,276.70 $ 58,371.13 42,165.42 103,602.64 47,695.40

995.69 342.95

$ 412,449.93 $

$

26,184.52 $

2,735.36 31,119.86
25.87 $
33.881.09 $ 4,074.13 $

$
21,580.48 3,159.00
24,739.48 $ -24,105.23 $

162,012.06 $ 89,490.99 42,165.42
103,628.51 69,275.88
3,159.00
995.69 342.95
471,070.50 $
6,153.42 $

248,035.97 50,810.80
103,184.67 103,163.45 45,826.52
6,843.47
557,864.88
32,129.37

4,995.02

$

31,179.54 $

57,322.24

4,995.02

4,074.13 $ 0.00

-24,105.23 $
34,341.16
-8,690.00 -1.545.93

11,148.44 $
91,663.40
-8,690.00 -1,545.93

32,129.37 59,534.03

FUND BALANCE JUNE 30

$

88,501.78 $

4,074.13 $

0.00 $

92,575.91 $ =====9=1=,663===40=

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

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

EXHIBITc

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Debt Service
Principal Interest
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, 1994

GENERAL FUND

BUDGET

ACTUAL

$ 239,058.68 $ 169,591.60
$ 408,650.28 $

229,587.31 209,047.14 438,634.45

$ 162,078.32 $ 57,062.63 39,756.40
111,480.92 52,927.01
$ 423,305.28 $ $ -14,655.00 $

159,276.70 58,371.13 42,165.42
103,602.64 47,695.40
995.69 342.95
412,449.93
26,184.52

$ 83,691.78 $ -83,691.78

$

0.00 $

4,995.02 4,995.02

$ -14,655.00 $ 57,688.39

31,179.54 57,322.24

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00 $ 22,955.22

15,000.00

$

0.00 $ 37,955.22

$

2,664.98 $

2,735.36

20,219.86

31,119.86

25.87

$ 22,884.84 $ $ -22,884.84 $

33,881.09 4,074.13

$

0.00 $

0.00

$

0.00 $

0.00

$ -22,884.84 $ 22,884.83

4,074.13 0.00

FUND BALANCE JUNE 30, 1995

$ 43,033.39 $

88,501.78

$

-0.01 $ ==-=4=,07=4=.1=3

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, 1995

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 departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in confonnity 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 ofthe 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 Jeff Davis 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 and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
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
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SATil.LA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources
(other than for major capital projects) that are legally restricted to expenditures for specified purposes. The
primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for capital lease obligations 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 financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

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SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Satilla 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 function level. The budget for governmental funds is prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration receives funding approval from all local funding agencies. The Library's administration prepares a tentative aggregate budget for the Board's approval. The budget is then submitted to the Georgia Department ofEducation, Division ofthe Public Library Services as a part ofthe Library's Annual Application for State Aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including 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.
INTERFUND TRANSACTIONS
The Library has the following types of interfund 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.

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SATILLA REGIONAL LIBRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\IBNTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. lnterfund 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 ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities 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 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 ofindebtedness 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 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.
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SATILLA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balance was $115,674.71. The amount of the total bank balance is 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 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, 1995, as follows:
Risk Category 1 2 3 Total
Note 3: RISK MANAGEMENT

Bank Balance
$ 100,000.00 15,674.71 0.00
$ 115 674.71

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

The Library has obtained commercial insurance for risk of loss associated with torts, assets, job related illnesses or injuries and natural disaster. 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 to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to errors or omissions in the past three years.

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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SATil.LA REGIONAL LIBRARY

EXI-llBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 3: RISK MANAGEMENT

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

1994 1995

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

$

0.00 $

0.00 $

0.00 $

0.00

$

0.00 $

3,510.00 $

0.00 $

3,510.00

Note 4: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Satilla Regional Library has entered into a lease agreement as lessee for a copier. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

Capital Leases

Balance July 1, 1994

$

0.00

Additions

4,995.02

Deductions

995.69

Balance June 30, 1995

$ 3.999,33

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items, are as follows:

Fiscal Year Ended June 30
1996 1997 1998
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Leases
$ 2,007.96 2,007.96 669.32
$ 4,685.24
685.91
$====3-9==9==9='.3==3

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SATILLA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years ofservice and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears 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, 1995, was $199,799.56; total payroll was $223,970.51.
IRS CONTRIBUTIONS REQUIRED AND MADE
Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS

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SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: RETIREMENT PLANS

Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $33,586.88, of which $23,596.65 was made by the Library and $9,990.23 was made by employees. These contributions represented 11.81 % (Library) and 5% (employees) of covered payroll.

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

Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058 958 000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $23,596.65 was actuarially determined and represented 00.0042% of total contributions made by all participating employers.

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

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SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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, 1995.

- 13 -

SATILLA REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30. 1995

EXHIBIT"E"

~ Cash and Cash Equivalents
LIABILmEs AND FUND EQUITY LIABILmEs
Accounts Payable Unearned Lottery Funds
Total Liabilities FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Unclesignated Total Fund Equity

LOTTERY PROGRAMS

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLEI PUBLIC LIBRARY
SERVICES

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

4074.13 $

4 014.13 s _ _ _1_1_1_2_2._89_
1

$

1,867.67

9,855.22

$ ___1_1_,_7_2_2._89_

$
s_ _ ___,;;,o.;.;;..oo~

$

0.00 $

4,074.13 $ 0.00
4,074.13 $

4,074.13 o.oo s _ _ _ _.;.o."'"oo"""
4,074.13 s _ _ _ _.;;.o."'"oo"--

Total Liabilities and Fund Equity

$

0.00 $

4074.13 $

4 074.13 s _ _ _1_1,...n_2._89_

See notes to the general purpose financial statements.

-14 -

SATILLA REGIONAL LIBRARY
COMBINING STATEMENT Of REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"P

REVENUES
State Funds
Federal Funds
Tolal Revenues
EXPENPJIURES Current
Program Services Technical Services
Circulation Administration
Tolal Expenditures
Excess r:A Revenues over (under) Expenditures
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

LOTTERY PROGRAMS

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLEI PUBLIC
LIBRARY SERVICES

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

22,95522

$

$

22,955.22 $

$ 15,000.00
15,000.00 $

22,955.22 $ 15,000.00
37,955.22 $

100,644.78 12,000.00
112,644.78

$

2,735.36

20,219.86 $

$

22,955.22 $

$

0.00 $

0.00

$

0.00 $

$ 10,900.00
25.87 10,925.87 $
4,074.13 $ 0.00

2,735.36 $ 31,119.86
25.87 33,881.09 $
4,074.13 $ 0.00

43,490.79 3,836.92
64,798.99 518.08
112,644.78
0.00
0.00

4074.13 $

4,074.13 s___...,.o_.oo_

See notes to the general purpose financial statements.

-15-

ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Reserved For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

SATILLA REGIONAL LIBRARY COMBINING BALANCE SHEET
CAPITAL PROJECTS FUND JUNE 30, 1995

EXHIBIT"G"

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

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

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

0.00 $

0.00 $

34,341.16

========

$

34,341.16

$

0.00 $

o.oo s____o_._oo_

0.00

$

0.00 $

0.00 $

0.00 $ ===34=,34=1=.1=6

See notes to the general purpose financial statements.

-16-

SATILLA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 1995

EXHIBIT"H"

REVENUES
Local and Other Funds
EXPENDITURES
Current Maintenance and Operations 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
Refund of Excess Local Funds to City of Pearson Refund of Excess Local Funds to City of Willacoochee

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6342-94-SB-015 6342-91-SB-016

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

250.30 $

383.95 $

634.25 $

1,066.51

$

112.00

$

112.00 $

6,951.34 $

14,517.14

21,468.48

3,159.00

3,159.00

$

7,063.34 $

17,676.14 $

24,739.48 $

$

-6,813.04 $

-17,292.19 $

-24,105.23 $

15,503.04

18,838.12

34,341.16

-8,690.00

-1,545.93

-8,690.00 -1,545.93

263.07 1,507.26
2,100.00 978.14
1,995.00
6,843.47
-5,776.96
40,118.12

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

s_ _ _ o.oo

34.....,,.3.4..1.._1s_

See notes to the general purpose financial statements.

-17-

SATILLA REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30, 1995
INTEREST BEARING ACCOUNT Bank South, N.A, Douglas, Georgia N.O.W. Account (2.53%)
OTHER Petty Cash

SCHEDULE "1"
$ 96,582.96 70.00
$ 96,652.96

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

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

SCHEDULE "2"

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

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 167,705.31 33,241.00 28,641.00
$

$ 167,705.31 33,241.00 28,641.00

1,100.00 21,855.22

1,100.00 21,855.22

$ 229,587.31 $ 22,955.22 $ 252,542.53

See notes to the general purpose financial statements.

- 19 -

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

SCHEDULE "3"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
s ===1=s=,ooo===.=oo=

See notes to the general purpose financial statements.

- 20 -

SATILLA REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1995

SCHEDULE "4"

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 Fines and Fees Interest Earned Sales and Services Books Genealogy Services Photocopies Library Equipment Sales other

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

4,000.00

39,867.00

10,293.60

3,000.00 6,000.00 43,099.92 8,100.00 2,000.00 11,740.00 4,545.93

$

4,000.00

39,867.00

10,293.60

3,000.00 6,000.00 43,099.92 8,100.00 2,000.00 11,740.00 4,545.93

6,747.00 37,426.50
8,700.00
9,187.53 3,566.94 2,381.79 $
308.40 2,245.38 3,993.51 1,200.00
643.64

634.25

6,747.00 37,426.50 8,700.00
9,187.53 3,566.94 3,016.04
308.40 2,245.38 3,993.51 1,200.00
643.64

$ 209,047.14 $

634.25 $ 209,681.39

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

SATILLA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

SCHEDULE "5"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 223,970.51
62,915.67 3,982.00
701.24 $
7,869.67 5,002.54 35,430.42 36,039.03 12,176.80
988.48 1,874.84

$
28,630.87 2,860.85

223,970.51 62,915.67 3,982.00 29,332.11 7,869.67 7,863.39 35,430.42 36,039.03 12,176.80 988.48 1,874.84

1,338.64 20,160.09

1,100.00 1,289.37

1,338.64 1,100.00 21,449.46

Total Expenditures

$ 412,449.93 $

33,881.09 $ 446,331.02

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

SATILLA REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1995
BOARD MEMBER ADDRESS
Mr. Michael Hill, Chairman (*)
P. 0. Box836
Hazlehurst, Georgia 31539
Mrs. Mary Corbitt (*) P. 0. Box 153 Pearson, Georgia 31642
Dr. Jim Cottingham (*) 318 East Ward Street Douglas, Georgia 31533
Mrs. Meg Edwards (*) 1904 Bo Jo Ella Drive Douglas, Georgia 31533
Mrs. Elise Leverette (*)
P. 0. Box29
Ambrose, Georgia 31512
Mr. Jim Mills (*)
P. 0. Box508
Willacoochee, Georgia 31650
Mrs. Gwen Thomas (*) 600 Tallahassee Avenue Hazlehurst, Georgia 31539
Dr. William R. Wills (*)
P. 0. Box32
Douglas, Georgia 31533
(*) Denotes Board Members Serving as of June 30, 1995

SCHEDULE "6"

See notes to the general purpose financial statements.

- 23 -

SATILLA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE '7"

PERSONNEL

Cothran,

Edna P.

Dockery,

Norma K.

Gourley,

Winifred M.

Hunt,

Shirley A

Kibbey,

Joann V.

Kinchen,

WeedaT.

Lee,

Mary Lou

Mercer,

Peggy

Miller,

Judyth M.

Paulk,

Sara J.

Sammons,

Eleanore.

Schild, Smith, Smith, Swain, Swain, Vickers,

Betty Emory Jimmie Lee Barbara Etta M. Jacqueline

POSITION

SALARIES

Library Aide

$

4,199.00

Library Manager

3,672.00

Genealogist

12,402.90

Library Assistant

9,678.75

Library Assistant

12,0TT.79

Library Manager

3,798.08

Library Manager

4,251.30

Librarian

23,336.70 $

Branch Manager

294.67

Librarian

34,588.20

Technical Services Aide/ Bookmobile Librarian

12,213.18

Director

45,197.60

Technical Services Librarian

37,796.40

Branch Manager

4,416.90

Library Aide

9TT.48

Library Aide

2,558.52

Bookkeeper/Secretary

12,511.04

TRAVEL
231.09 665.03
35.28 1,087.95 1,526.21
436.44

$

223,970.51 s ======3=,9=8=2=.o=o

See notes to the general purpose financial statements.

- 24-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SATILLA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditures - Employee Bonuses Amount: $1,360.00 Audit Control Number 6342-93-01 Finding Deleted
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. Reference to these questioned costs will not be repeated in future audit reports, however, this does not relieve the Library of its responsibility to secure reimbursement of these funds.
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, 1994 , 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 purpose 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.
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, 1994, 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 the formal accounting records. This condition results in the general purpose financial statements of the L_ibrary being incomplete and not in accordance 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 III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SATILLA REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
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. Staff and budgetary limitations prevent the development of a local accounting procedure to resolve this finding.