Audit report, Satilla Regional Library, Douglas, Georgia, year ended June 30, 1996

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AUDIT REPORT SATllLA REGIONAL LIBRARY
DOUGLAS, GEORGIA YEAR, ENDED JUNE 30, 1996

SATILLA REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENTOF 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

4

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

SCHEDULES

1 CASH AND CASH EQUIVALENTS

16

SCHEDULE OF REVENUE

2

STATE

17

3

FEDERAL

18

4

OTHER

19

SCHEDULE OF EXPENDITURES BY OBJECT

5

GOVERNMENTAL FUND TYPES

20

6

LOTTERY PROGRAM

21

7 MEMBERSHIP OF LIBRARY BOARD

22

8 SCHEDULE OF SALARIES AND TRAVEL

23

SATILLA REGIONAL LmRARY - TABLE OF CONTENTS -
SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION ill PERTINENT VIEWS OF RESPONSmLE OFFICIALS PERTINENT VIEWS OF RESPONSmLE 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, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the 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, 1996, 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.
96ARL-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, 1996, and the results of its 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 of the Satilla Regional Library taken as a whole. The combining statements (Exhibits E and F) 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 of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.

CLV:jy 96ARL-42

Claude L. Vickers State Auditor

SATILLA REGIONAL LIDRARY
- 1-

Cash and Cash Equivalents Amount to be Provided in Future Years
For Payment of Capital Lease Agreements
Total Assets

SATILLA REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUNp TYPES ANp ACCOUNT GROUP
JUNE 30 1996

EXHIBIT "A"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30, 1995

$ 90,832.69 $

0.00

$

90,832.69 $

96,652.96

_____ $

~2:...:,4~2:!.7~.2:!.6

2,427.26

3,999.33

$ 90,832.69 $

0.00 $

2,427.26 $

93,259.95 $ 100,652.29

LIABILITIES AND FUNP EQUITY
LIABILITIES
Accounts Payable Capital Lease Agreements
Total Liabilities
EUND EQUITY
Fund Balances Reserved For Continuation ot'Federal Program Unreserved Undesignated
Total Fund Equity

$

472.85

$

472.85

$ 90,359.84 $ $ 90,359.84 $

Total Liabilities and Fund Equity

$ 90,832.69 $

$ $
0.00 0.00 0.00 $

$ 2,427.26
2,427.26 $

472.85 $ 2,427.26
2,900.11 $

4,On.05 3,999.33
8,076.38

$

4,074.13

$

90,359.84

88,501.78

$

90,359.84 $

92,575.91

2,427.26 $

93,259.95 $ 100,652.29

The notes to the general purpose financial statements are an integral part of this statement.
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SATILLA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1996

EXHIBIT-B"

FUND BALANCE JUNE 30

$

90,359,84 $

0.00 $

90,359.84 $ _ _.9.2-.,.5.7.5.9..1..

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

SATllLA REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1996

EXHIBIT .C"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Debt Service Principal Interest
Total Expendijures
Excess of Revenues over (under) Expendijures
FUND BALANCE JULY 1, 1995

GENERAL FUND

BUDGET

ACTUAl

SPECIAL REVENUE FUND

BUDGET

ACTUAl

$ 261,821.30 $ 263,871.00

177,926,60

195,745.43

$ 439,747,90 $ 459,616,43

$ 10,000.00 $ 10,000.00 15,000.00
$ 10,000.00 $ 25,000,00

$ 236,525,31 $ 175,705,77

62,748,54

61,522.97

49,929,16

49,779,89

112,959,79

104,657.27

59,827,87

64,084,51

1,572,07 435.89

$ 521,990,67 $ 457,758,37

$ -82,242,77 $

1,858,06

92,011.79

88,501.78

$ 10,000.00 $ 10,089.00

4,074,13

4,074.13

13,826.84

33.55

1,050.61

$ 14,074,13 $ 29,074.13

$ -4,074,13 $ -4,074,13

4,074,12

4,074.13

FUND BALANCE JUNE 30, 1996

$

9,769,02 $ 90,359.84

$

-0.01 $ _ _...0...0...0.

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

SATILLA REGIONAL LffiRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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 ofthe departure from generally accepted accounting principles disclosed in these notes, the financial statements ofthe 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 ofthe Library. 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 governmental 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 JeffDavis County Library Board. The Board is without authority to determine the amount ofits 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 oflocal 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 ofits 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.

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SATll..LA REGIONAL LffiRARY

EXIllBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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

ExmBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

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 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.
BUDGET
The SatiIIa 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 was 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 aggregated budget for the Board's approval. The budget is then submitted to the Georgia Department ofEducation, Division ofPublic 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 type 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 LffiRARY

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

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. Interfund eliminations have not been made in the aggregation ofthis 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 ofthe 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 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 anyone of or any combination ofthe 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

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SATILLA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS

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

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $117,168.29. 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 se~urities 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, 1996, as follows:

Risk CategOIY

Bank Balance

1

$ 100,000.00

2

17,168.29

3

0.00

Total

$ 117.168.29

Note 3: RISKMANAGEMENT

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

The Library has obtained commercial insurance for risk of loss associated with torts, assets and job related illnesses 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.

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SATILLA REGIONAL LmRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 3: RISK MANAGEMENT

The Library has elected to self-insure for all losses related to natural disasters. In addition, 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 these risks in the past three years.

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

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995 1996

$

0.00 $

$ 3.510.00 $

3,510.00 $ 1.560.00 $

0.00 $ 5,070.00 $

3,510.00 0.00

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, have been recorded at the present value of the future minimum lease payments as ofthe date of its inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Capital Leases

Balance July 1, 1995

$ 3,999.33

Deductions Payments

1.572.07

Balance June 30, 1996

$ 2.427.26

At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items, are as follows:

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SATILLA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 4: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

1997

$ 2,007.96

1998

669.32

Total Principal and Interest

$ 2,677.28

Deduct: Imputed Interest

250.02

Net Present Value ofFuture Minimum Lease Payments

$ 2.427.26

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 Retiiement 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 ofage, 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 of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

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SATILLA REGIONAL LffiRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 6: RETIREMENT PLANS
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. Ifa 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, 1996, was $221,410.13~ total payroll was $248,554.62.
TRS CONTRmUTIONS 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 Board ofTrustees in accordance with State statute and as advised by their independent actuary.. At June 30, 1996, 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 1996 amounted to $37,219.04, of which $26,148.50 was made by the Library and $11,070.54 was made by employees. These contributions represented 11.81% (Library) . and 5% (employees) of covered payroll.
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 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.

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SATILLA REGIONAL LIDRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1996

Note 6: RETIRE:MENT PLANS

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.00000

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. 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, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of $26, 148.50 was actuarially determined and represented 00.0043% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 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 BOND

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 is paid through October 20, 1997.

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ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Reserved For Continuation of Federal Program
Unreserved Undesignated
Total Fund Equity

SATILLA REGIONAL LIBRARY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND JUNE 30, 1996

EXHIBIT-E-

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

O;,;;,O.O.. $

$ O_.OO~

$ O~,OO_

4,,.07.4-..1.3..

$

0.00 $

$

0;,;;,0.0.. $

0,00 $ 0.00 $

$
...;;O..;.;;'OO~

4,074.13 0.00

0...0...0. $

4,,.07.4-..1.3..

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 30,1996

EXHIBIT-P

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

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC
LIBRARY SERVICES

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30,1995

$

10,000,00

$

$

10,000,00 $

$ 15,000,00
15,000,00 $

10,000,00 $ 15,000,00
25,000,00 $

22,955,22 15,000,00
37,955.22

$

10,000,00 $

$

10,000,00 $

$

0.00 $

0.00

89,00 $ 4,074,13 13,826,84
33,55
1,050,61
19,074,13 $
-4,074.13 $
4,074,13

10,089,00 $ 4,074,13 13,826,84
33,55
1,050.61
29,074.13 $
-4,074,13 $
4,074.13

2,735,36 31,119,86
25,87
33,881.09 4,074,13 0.00

FUND BALANCE JUNE 30

$

0,00 $

0,00 $

0,00 $

4';':',;,;0.7.4...,1-.3

See notes to the general purpose financial statements.

-15-

INTEREST BEARING ACCOUNT
Nations Bank of Georgia, N. A, Douglas, Georgia
N.O,W. Account (1.35%)
OTHER
Petty Cash

SATILLA REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30,1996

SCHEDULE "1"
$ 90,762.69 70.00
$ 90,832.69

See notes to the general purpose financial statements.

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SATILLA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 1996

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Technology Installation
CONTRACT Community Affairs, Georgia Department of Through Coffee County Board of Commissioners Governor's Emergency Fund (1)

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 191,989.00
33,241.00 28,641.00
$

$ 191,989.00
33,241.00 28,641.00

10,000.00

10,000.00

10,000.00

10,000.00

$ 263,871.00 $

10,000.00 $ 273,871.00

(1) These funds are to assist in the upgrade of the security and circulation systems.

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

SATILLA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1996
AGENCY/FUNDING Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act nt/e I - Public Library Services

SCHEDULE "3"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$====15==,=00,===0=.0=0

See notes to the general purpose financial statements. - 18

SATILLA REGIONAL LIBRARY SCHEDULE OF OTHER REVENUE
YEAR ENDED JUNE 30. 1996

LOCAL SOURCES

County Boards of Education

Atkinson

.

Coffee

Jeff Davis

City Govemments

Ambrose

Broxton

Douglas

Hazlehurst

Nicholls

Pearson

Willacoochee

County Govemments

Boards of Commissioners

Atkinson'

Coffee

Jeff Davis

OTHER SOURCES Donations Fines and Fees Interest Eamed Lost and Damaged Books Sales and Services Genealogy Services Photocopies Library Equipment Sales Other

SCHEDULE "4"

GENERAL FUND

$

4,000.00

39,867.00

10,293.60

3,000.00 6,000.00 43,100.04 9,750.00 2,000.00 3,050.00 3,000.00

6,747.00 38,418.96
8,700.00

6,187.70 2,567.15 2,416.83
242.80
1,288.62 3,841.23
697.50 577.00

$ ==1=9=5==,7=4=5.=4=3

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

SATILLA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 248,554,62
67,169,06 6,805,59
3,420.86 $
20,647.67 4,848.83
47,372.72 40,344.85 13,315.97
1,174.95 286.29

$
4,107.68 747.22
4,817.37

248,554,62 67,169,06 6,805.59 7,528.54 21,394.89 9,666.20 47,372,72 40,344.85 13,315,97 1,174.95 286.29

2,007,96 1,809.00

19,401.86

2,007.96 21,210.86

Total Expenditures

$ 457.758.37 $

29,074.13 $ 486,832.50

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

SATILLA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAM YEAR ENDED JUNE 30,1996
EXPENDITURES Operating Costs Supplies NonOperating Costs Equipment
Total Expenditures

SCHEDULE "6"

TECHNOLOGY INSTALLATION

$

2,185.00

7,815.00

$ ======10=,0:=0:=0=,0::::.0

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

BOARD MEMBER ADDRESS
Dr. William R. Wills, Chairman (*) P. O. Box 32 Doug~s,~gia 31533
Mrs. Betty Carter (*) Route 4, Box 1030 Hazlehurst, Georgia 31539
Mrs. Shirley Enis
Route 2, Box 325
HazlehUrst, ~gia 31539
r) Mr. Robert Hurst, Jr.
P. O. Box 628 Doug~s, Georgia 31533
Mrs. Elise Leverette (*)
P.O. Box 29
Ambrose, Georgia 31512
Mr. Jim Mills (*)
P.O. Box 508
Willacoochee, Georgia 31650
Mr. Charles Moore (*) 623 Sellers Street Douglas, Georgia 31533
Mrs. Betty Simmons r) North Gill Street Hazlehurst, Georgia 31539
Mrs. Gwen Thomas 600 Tal~hassee Avenue Hazlehurst, Georgia 31539
Mrs. Ange~ White (*) P. O. Box 635 Pearson, Georgia 31642

SATILLA REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30. 1996

r) Denotes Board Members Serving as of June 30,1996

SCHEDULE '7"

See notes to the general purpose financial statements.

- 22 -

SATILLA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1996

SCHEDULE "8"

PERSONNEL

Cockfield,

Anthony

Cothran,

Edna P,

Dockery,

Norma K.

Gourley,

Winifred M.

Hand,

Louise J.

Hunt,

Shirley A.

Kibbey,

Joann V.

Lee,

Mary Lou

Miller,

Judyth M.

Paulk,

J. Sara

Sammons,

EleanorC.

Schild, Smith, Smith, Stark, Swain, Swain, Vickers, Zelenka,

Betty Emory Jimmie Lee Rondalea Barbara Etta M. Jacqueline Louis G., Jr.,

POSITION

SALARIES

TRAVEL

Page

$

93,50

Library Aide

4,497.47

Library Manager

3,664.53

Genealogist

12,705.36

Branch Manager

3,987.94 $

162.57

Library Assistant

6,161.64

Library Assistant

12,511.08

Library Manager

4,524.60

Branch Manager

5,642.92

271.38

Librarian

9,157.00

158.45

Technical Services Aide/ Bookmobile Librarian

12,511.08

Director

47,536.40

2,907.29

Technical Services Librarian

40,449.80

837.55

Branch Manager

4,524.60

Children's Librarian

21,496.79

700.29

Library Aide

871.25

Library Aide

3,020.98

Bookkeeper/Secretary

12,761.28

48.62

Reference Librarian

42,436.40

1,719.44

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

$ 248,554.62 $===6=,8=0.5..';.,,;;,5=9

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SATILLA REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
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, 1995, stated that the Satilla Regional 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 of the 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 various 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, 1995, noted that the Satilla Regional 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 Library 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 RESPONSffiLE OFFICIALS

SATILLA REGIONAL LmRARY PERTINENT VIEWS OF RESPONSmLE OFFICIALS
YEAR ENDED JUNE 30. 1996
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6342-93-03
We concur with this finding. At the present time budgetary constraints preclude hiring the personnel needed to fully meet this goal. With at least four staffmembers involved in the process, we feel we have provided the best separation of duties possible at this time.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6342-93-04
We concur with this recommendation. Insufficient finances to hire adequate staff continues to hinder us in the recording of General Fixed Assets.