Satilla Regional Library, Douglas, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

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STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS

00 00000 0 0
1776

SATILLA REGIONAL LIBRARY
DOUGLAS, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton state Auditor

SATILLA REGIONAL LffiRARY

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-TABLEOFCONTENTS-

SECTION I

FINANCIAL

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

EXHffiITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

B

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

2

LOCAL

3 SCHEDULE OF SALARIES AND TRAVEL

SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Page
2
3 5 6
12 13 14


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SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174


DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta. Georgia 30334X400
May 31,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board ofRegents ofthe University System of Georgia
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 accompanying general purpose financial statements of the Satilla Regional Library, as ofand for the year ended June 30, 2000, as listed in the table ofcontents. These general purpose financial statements are the responsibility of the Satilla Regional Library's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. . We believe that our audit provides a reasonable basis for our opinion.
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 ofthe 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.
2000ARL-42A

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The aggregate effects on the general purpose financial statements of this omission have not been determined, but are believed to be material.

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 referred to above present fairly, in all material respects, the financial position of the Satilla Regional Library as of June 30, 2000, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Satilla Regional Library taken as a whole. The accompanying financial schedules (Schedules I through 3), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements ofthe 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 stated, in all material respects, in relation to the general purpose financial statements taken as a whole.

A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.

Respectfully submitted,

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RWH:jb 2000ARL-42A

Rus 11 W. Hinton State Auditor




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SATILLA REGIONAL LffiRARY


SATILLA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES JUNE 30, 2000

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Accounts Receivable

GOVERNMENTAL FUND TYPE GENERAL FUND

TOTALS

(Memorandum Only.L.)

_

JUNE 30, 2000 JUNE 30, 1999

$

200,040.00 $

200,040.00 $

134,947.61

4,500.00

4,500.00

3,500.00

Total Assets

$

204,540.00 $

204,540.00 $ =====1,;;;,38;;;,;,,.;,,44,,;,,;7..;,;.6;;,;1=

LIABILITIES AND FUND EqUITY

LIABILITIES

Accounts Payable

$

Expired Grant Balances Payable

Total Liabilities

$

FUND EqUITY

Fund Balances

Reserved

For Technology

$

Unreserved

Undesignated

Total Fund Equity

$

Total Liabilities and Fund Equity $

23,373.03 $
95.39
23,468.42 $

23,373.03 $
95.39
23,468.42 $

217.67 396.96
..:::.6.:..14:.:.:.6:.:3~

8,571.00 $
172,500.58
181,071.58 $

8,571.00
172,500.58 $ _--:..;13::.:,7..!.::,8:.::;32:..:.::.:98:181 ,071.58 $ _----:1.,::::37.:..J!~83~2:.:.:.9~8:....

204,540.00 $

204,540.00 $ ...........,.;1,;;;,38;;;,;,,.;,,44,;,,;7,,;,,;.6;;.;10=

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

SATILLA REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000

EXHIBIT "B"

REVENUES
State Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GENERAL FUND

TOTALS (Memorandum Only.)....._ _
YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

$

250.360.20 $ 250,360.20 $ 251.056.46

223,997.04

223,997.04

214,392.24

121,835.76

121,835.76

39,280.95

$

596,193.00 $

596,193.00 $ _--:5~0:z4,~72~9~.6~5:....

$

308.292.80 $ 308.292.80 $ 277.888.05

75.962.16

75.962.16

21,332.21

113.825.90

113,825.90

110,735.19

54,873.54

54,873.54

61.942.78

$

552.954.40 $ 552,954.40 $ _....;4:!.,!7..,!.1.tl::8!~.98:!.::.2~3:....

$

43.238.60 $

43.238.60 $

32,831.42

137.832.98

137,832.98

105.001.56

$

181,071.58 $

181.071.58 $ _ _1.:.;;3~7O;;:I8~32;,;;.9~8~

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

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL FUND

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YEAR ENDED JUNE 30, 2000

EXHIBIT C

REVENUES
State Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1999

BUDGET

ACTUAL

$ 248,858.60 $ 250,360.20

223,997.00

223,997.04

121,835.76

$ 472,855.60 $ 596,193.00

$ 247,107.87 $ 308,292.80

96,013.31

75,962.16

171,923.17

. 113,825.90

71,429.78

54,873.54

$ 586,474.13 $ 552,954.40

$ -113,618.53 $ 43,238.60

137,832.98

137,832.98

FUND BALANCE JUNE 30, 2000

$ 24,214.45 $ 181W1.58

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

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Satilla Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State ofGeorgia. With the exception ofthe departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types of the Library.

The Library Board consists ofeight 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 Library Board is without authority to determine the amount ofits funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances oflocal and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Satilla Regional Library is therefore determined to be a joint venture.

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 ofpurchase. 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 ofassets acquired by governmental fund types.

The general purpose fmancial statements account for all State, Local and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:

GOVERNMENTAL FUND TYPE - used to account for all of the Library's general activities. Governmental Fund Type includes:
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SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FUND - the fund used to account for all financial resources of the Library. These transactions relate to resources obtained and used for services provided by a Library.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. 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 aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.

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SATILLA REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

,"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist ofgrant reimbursements due on State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and otherreceivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.
OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the
requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of 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,

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SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

~.

Note 2: DEPOSITS

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

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

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

(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and

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

CATEGORIZAnON OF DEPOSITS At June 30, 2000, the bank balances were $219,698.67. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
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, 2000, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

119,698.67

3

0.00

Total

$ 219.(298,67

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SATILLA REGIONAL LIDRARY

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000



Note 3: RISK MANAGEMENT

The Library is exposed to various risksofloss 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 illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

The Library has elected to self-insure for all losses related to natural disaster. In addition, the Library has elected to self-insure for 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 General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1999 2000

Beginning
of Year
Liability_

Claims and Changes in Estimates

$

5,824.00 $

$

0.00 $

0.00 $ 0.00 $

Claims Paid

End of Year
Liability_

5,824.00 $ 0.00 $

-"0=.0=0 -"0=.0=0

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

Position Covered

Amount

Director

$ 20,000.00

Note 4: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and

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SATILLA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000



Note 4: RETIREMENT PLANS

survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 24,165.03 $. 25,219.70 $ 25,017.65

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SATILLA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2000
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AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Maintenance and Operation

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

180,232.20

4,200.00

35,264.00

30,664.00

$

250,360.20

See notes to the general purpose financial statements, 12 -

SATILLA REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30. 2000
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LOCAL SOURCES Boards of Education Atkinson County Coffee County Jeff Davis County City Governments Ambrose Broxton Douglas Nicholls Pearson Willacoochee County Governments Boards of Commissioners Atkinson Coffee Jeff Davis

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

4,000.00

50,000.00

15,000.00

3,000.00 7,200.00 50,000.00 2,000.00 3,050.00 3,000.00

6,747.00 50,000.04 30,000.00

$

223,997.04


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

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NAME

Cothran, Gourley, Hand, Johnson, Jordan, Kibbey, Lee, Litherland, Miller, Mitchell, Phillips, Richey, Sammons, Smith, Smith, Spell, Spell, Spivey, Stark, Swain, Vickers, Washington,

Edna P. Winifred Louise Lorrinda P. Regina S. Joann V. Mary Lou Rita J. Judyth M. WalterW. Linda G. Thomas O. Eleanor Emory Jimmie Lee Cindy L. Linda J. Alunza G. Rondalea Etta M. Jacqueline Leatha Mae

SATILLA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

TITLE CATEGORY
Part Time Clerk Part Time Genealogist Branch Manager Part Time Clerk/Bookkeeper Part Time Clerk Part Time Clerk Branch Manager Backup Bookkeeper Library Manager Technical Services Librarian Part Time Clerk Part Time Genealogist Bookmobile Librarian Director Branch Manager Part Time Clerk Part Time Clerk Part -:rime Genealogist Children's Librarian Part Time Clerk Administrative Assistant Branch Manager

SALARIES

$

4,923.13

4,906.20

13,499.20 $

5,392.75

5,040.30

3,236.10

5,707.23

3,442.35

13,936.00

49,699.30

901.25

339.20

16,640.00

58,426.84

5,938.98

3,902.13

4,167.13

3,872.82

44,157.96

5,291.02

17,680.00

3,560.31

TRAVEL
266.61 49.00
149.90 1,053.46
3,053.56
1,056.26 162.32

Totals per Report

$

274,660.20 $ _ _...;5;;.&,!7;.;;9_1;.;,.1~1

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

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SECTIONll FINDINGS AND QUESTIONED COSTS


SATll..LA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
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PIDORYEMVCURRENTYEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 6342-93-04 The audit report for the year ended June 30, 1999, noted that the Satilla Regional Library did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records. During 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 ofthe 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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, 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.
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