Satilla Regional Library, Douglas, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005

SATILLA REGIONAL LIBRARY
DOUGLAS, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2005
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

SATILLA REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

3

B

STATEMENT OF ACTIVITIES

4

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUND

5

D

RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

6

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE

GOVERNMENTAL FUND

7

F

RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCE TO THE STATEMENT OF ACTIVITIES

8

G

NOTES TO THE BASIC FINANCIAL STATEMENTS

9

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND

17

SUPPLEMENTARY INFORMATION

SCHEDULES OF REVENUE

2

STATE

18

3

FEDERAL

19

4

LOCAL

20

5 SCHEDULE OF SALARIES AND TRAVEL

21

SATILLA REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS
SECTION III MANAGEMENT'S RESPONSE

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
October 20, 2005

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
and Director and Members of the Satilla Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements ofthe governmental activities and the major fund (Exhibits A through G) of the Satilla Regional Library as of and for the year ended June 30, 2005, which collectively comprise the Library's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Satilla Regional Library's management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe governmental activities and the major fund ofthe Satilla Regional Library, as ofJune 30, 2005, and the respective changes in financial position thereoffor the year then ended in conformity with accounting principles generally accepted in the United States ofAmerica.

2005ARL-41

The Satilla Regional Library has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements.
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 17 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Satilla Regional Library's basic financial statements. The accompanying supplementary information which consists of Schedules 2 through 5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24.
Respectfully submitted,

RWH:as 2005ARL-41

State Auditor

SATILLA REGIONAL LIBRARY

SATILLA REGIONAL LIBRARY STATEMENT OF NET ASSETS
JUNE 30. 2005
ASSETS Cash and Cash Equivalents Accounts Receivable. Net
Local Capital Assets
Land Buildings and Improvements Equipment Library Collections Less: Accumulated Depreciation
Total Assets
NET ASSETS Invested in Capital Assets, Net of Related Debt Unrestricted
Total Net Assets

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

318,546

1,800

15,310 1,375,000
247,584 1,572,621 -2 197 723

$ ======1=3=3=3=1=38=

$

1,012,792

320 346

$ ===1=3=3=3=1=38=

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

SATILLA REGIONAL LIBRARY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30. 2005

EXHIBIT"B"

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR

GRANTS AND

SERVICES

CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

GOVERNMENTAL ACTIVITIES

Current Services Public Services Technical Services Support Services Maintenance and Operations

$

297,816 $

1,524

169.880

136 914

31,082 $

172,648 $ 141 859

-94,086 -1,524
-169,880 4945

Total Governmental Activities

$=====60=6=1=3=4= $

General Revenues Allotments from Participating Governments Investment Earnings Miscellaneous

31 082 $

314 507 $ _ _ _.....;-2::.:6:..:.0,..::;,5-"45:....

$

272,629

3,789

14 589

Total General Revenues

$ _ _ _.....;2::9:...:.1,=0,:.07,_

Change in Net Assets

$

30,462

Net Assets - Beginning of Year

1302676

Net Assets - End of Year

$ ===1,..3..3.;,,;;3;,,;1=3.8..

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

SATILLA REGIONAL LIBRARY BALANCE SHEET
GOVERNMENTAL FUND JUNE 30. 2005
ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Local Government
Total Assets
FUND BALANCE Unreserved
Undesignated Reported in: General Fund

EXHIBIT "C"

GENERAL FUND

$

318,546

1 800

$ ===3=20='=34=6=

$ ===3=20::!'=:34=6=

The notes to the basic financial statements are an integral part of this statement. -5-

SATILLA REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30. 2005

EXHIBIT"D"

Total Fund Balance - Governmental Fund (Exhibit "C")
Amounts reported for Governmental Activities in the Statement of Net Assets are different because:
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of:
Land Buildings Equipment Library Collections Accumulated Depreciation
Total Capital Assets

$

320.346

$

15.310

1.375.000

247.584

1.572.621

-2,197,723

1,012,792

Net Assets of Governmental Activities (Exhibit "A")

$ =====1,=33=3=1' =3=8

The notes to the basic financial statements are an integral part of this statement. -6-

SATILLA REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND YEAR ENDED JUNE 30, 2005

EXHIBIT "E"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning

GENERAL FUND

$

272,629

312,276

2,231

31,082

3,789

14,589

$

636,596

$

305,201

1,524

169,880

67,425

$

544,030

$

92,566

227,780

Fund Balance - Ending

$ ======3=2=0'-=,34=6=

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

SATILLA REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF
REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES JUNE 30. 2005

EXHIBIT"F"

Total Net Change in Fund Balance - Governmental Fund (Exhibit "E")
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:
Capital Outlay Depreciation Expense
Excess of Depreciation Expense over Capital Outlay

$

$

48,663

-110 767

92,566 -62 104

Change in Net Assets of Governmental Activities (Exhibit "B")

$ ===3=0=,4=6=2

The notes to the basic financial statements are an integral part of this statement. -8-

SATILLA REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2005

EXHIBIT"G"

Note 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY
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 of Georgia.
The Library Board is comprised of eight members which are also trustees of the member library which appointed them. The Library Board membership consists oftwo members appointed from the Atkinson County Library Board, four members appointed from the Coffee County Library Board and two members appointed from the 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 flow through funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and 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.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Library's basic financial statements are collectively comprised of the Library-wide financial statements, fund financial statements and notes to the basic financial statements of the Satilla Regional Library.
Library-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities of the overall Library. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Library's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the Library related to the administration and support ofthe Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs.

-9-

SATILLA REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2005

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the Library's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds.
The Library reports the following major governmental fund:
General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library, except those resources required to be accounted for in another fund.
BASIS OF ACCOUNTING
The basis ofaccounting determines when transactions are reported on the financial statements. The Library-wide governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The Library considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Interest is considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds.
The Library funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Library's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
- 10 -

SATILLA REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2005

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

RECEIVABLES

Receivables consist ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

CAPITAL ASSETS

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the Library-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method.

Capitalization thresholds and estimated useful lives of capital assets reported in the Library-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land Buildings and Improvements Equipment Library Collections

All

$

5,000

$

5,000

All

NIA 30 years 5 to 7 years 10 years

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.

- 11 -

SATILLA REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30. 2005

EXHIBIT"G"

Note 3: 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 of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws 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 of development authorities created by the laws of the 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.
CATEGORIZATION OF DEPOSITS At June 30, 2005, the bank balances were $349,100. The amounts of the total bank balances are classified into three categories of credit risk:

- 12 -

SATILLA REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2005

EXHIBIT"G"

Note 3: DEPOSITS

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, 2005, as follows:

Risk Category

Bank Balance

1

$ 100,000

2

249,100

3

0

Total

$==3==49==,l==O==O

Note 4: CAPITAL ASSETS

The following is a summary of changes in the Capital Assets during the fiscal year:

Balances July 1, 2004

Increases

Balances Decreases June 30, 2005

Governmental Activities Capital Assets, Not Being Depreciated:
Land

$

15,310

$

15,310

Capital Assets Being Depreciated Buildings and Improvements Equipment Library Collections

$ 1,375,000 247,584
1,609,199 $

48,663 $

$ 85,241

1,375,000 247,584
1,572,621

Less Accumulated Depreciation for: Buildings and Improvements Equipment Library Collections

630,208 147,934 1,394,055

45,833 24,655 40,279

85,241

676,041 172,589 1,349,093

Total Capital Assets, Being Depreciated, Net $ 1,059,586 $

-62,104 $

0 $ 997,482

Governmental Activity Capital Assets - Net $ 1,014,826 $

-62,104 $

0 $ 1,012,792

- 13 -

SATILLA REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2005

EXHIBIT"G"

Note 4: CAPITAL ASSETS

Current year depreciation expense by function is as follows:

Public Services Maintenance and Operations

$

41,278

69 489

Note 5: RISK MANAGEMENT

$====1===10=,7===6==7

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

The Library has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

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

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.

The Library has purchased commercial insurance to provide additional insurance coverage as follows:

Position Covered

Amount

Director Chairperson Co-Chairperson Secretary of Board Bookkeeper Assistant Bookkeeper

$ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000

Note 6: SIGNIFICANT CONTINGENT LIABILITIES

The Library is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Library operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements.

- 14 -

SATILLA REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2005

EXHIBIT"G"

Note 6: SIGNIFICANT 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 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two_ fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2005 2004 2003

100% 100% 100%

$

21,913

$

20,376

$

23,256

- 15 -

SATILLA REGIONAL LIBRARY GENERAL FUND
SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL
YEAR ENDED JUNE 30. 2005

SCHEDULE "1"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

$

272,629 $

272,629 $

272,629

196,850

196,850

312,276

2,231

31,082

3,789

14 589

$

469 479 $

469 479 $

636,596

$

317,774 $

317,774 $

305,201

9,888

9,888

1,524

207,984

207,984

169,880

101 670

101 670

67 425

$

637 316 $

637 316 $

544 030

$

-167 837 $

-167 837 $

92,566

$

103,248 $

103,248

-103,248

-103 248

$

0 $

0

$

-167,837 $

-167,837 $

92,566

227,780

227,780

227,780

Fund Balance - Ending

$

59 943 $

59943 $===3=2=0=,3=46=

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis used in the presentation of the fund financial statements.

See notes to the basic financial statements.

-17-

SATILLA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 2005
AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Materials Maintenance and Operations

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

144,118

1,500

24,799

141 859

$ ====3=1=2=2=76=

See notes to the basic financial statements.

- 18 -

SATILLA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2005
AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program

SCHEDULE "3"
GOVERNMENTAL FUND TYPE GENERAL FUND
$ =====2=,2=3=1

See notes to the basic financial statements.

-19-

SATILLA REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE
YEAR ENDED JUNE 30, 2005
LOCAL SOURCES City Governments Ambrose Broxton Douglas Nicholls Pearson Willacoochee County Boards of Education Atkinson Coffee Jeff Davis County Governments Boards of Commissioners Atkinson Coffee Jeff Davis

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

3,000

7,200

60,200

2,000

4,050

4,000

6,200 60,000 20,832

7,747 60,200 37 200

$ ====2=7=2,=6=29=

See notes to the basic financial statements.

- 20-

NAME

Bell, Burton, Cothran, Deen, Johnson, Jordan, Luke, McCook, Miller, Minix, Pridgen, Smith, Smith, Smith, Soar, Spell, Spell, Spell, Stone, Swain, Tierney, Vickers, Washmund, Wilcox,

Virginia R.
Samantha L.
Edna P. Rose Edna Lorrinda P. Regina S. Christine H. Melody Judyth M. Shirley F. ArlyC. Emory Jimmie Lee Kathryn R. Stephen E. Cindy Linda M. TammyG. RikiJ. Etta M. Cathleen E. Jacqueline Brenda J.
Marilyn L.

Totals per Report

SATILLA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2005

SCHEDULE "5"

TITLE CATEGORY

SALARIES

TRAVEL

Part Time Clerk

$

Part Time Clerk

Part Time Clerk

Part Time Clerk

Bookmobile Librarian/Backup Bookkeeper

Part Time Clerk

Part Time Clerk

Part Time Clerk

Branch Manager

Part Time Clerk

Part Time Clerk

Director

Branch Manager

Part Time Clerk

Part Time Clerk

Assistant Director/Children's Librarian

Assistant Director/Reference Librarian

Part Time Clerk

Part Time Clerk

Part Time Clerk

Part Time Clerk

Administrative Assistant

Part Time Clerk

Part Time Clerk

4,535 4,441 5,983 5,589 18,824 $ 5,770 5,532 8,754 19,656 4,515 1,020 70,367
562 5,054 1,877 20,893 59,311 5,444 4,567 6,292 4,316 41,600 5,962 4 369

31
2,333 411
1,144

$

315,233 $======3=9=1=9

See notes to the basic financial statements.

- 21 -

SECTION II FINDINGS AND QUESTIONED COSTS

SATILLA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2005
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Failure to Include all Bank Accounts in Accounting Records Reportable Condition - Material Weakness Finding Control Number: FS-6342-05-01
NCGA Statement 1, paragraph 2, as amended by GASB Statement 34, paragraph 6 prescribes a governmental accounting system must make it possible both (1) to present fairly and with full disclosure the funds and activities of the governmental unit in conformity with generally accepted accounting principles, and (2) to determine and demonstrate compliance with finance-related legal and contractual provisions. The Satilla Regional Library failed to record the financial activity and the ending cash balance from the sale ofcandy within the Library's formal accounting records. The activity detail was not available and therefore, could not be verified.
This condition occurred because of management's failure to incorporate the sale of candy and its related financial activity in the Library's accounting records. Corrective action should be taken by the Library to ensure that all the Library's financial records and activities are included in the formal accounting records. The Library is currently under investigation by the Georgia Bureau of Investigation related to this and other matters.

SECTION III MANAGEMENT'S RESPONSE

SATILLA REGIONAL LIBRARY SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2005
Finding Control Number: FS-6342-05-01
We concur with this finding. Corrective action has been taken. Effective September 1, 2005, the Board discontinued the sale of candy and terminated the Library Director, who was managing the sale of candy without incorporating its related financial activity in the Library's formal accounting records. The activity detail from candy sales and expenses is still unavailable because the investigation by the Georgia Bureau of Investigation related to this and other matters has not been completed. The Board anticipates the completion ofthe investigation by the end offiscal year 2006.
Contact Person: Jacqueline Vickers, Interim Administrator Phone: (912) 384-4667 Fax Number: (912) 389-4365 E-mail Address: vickersj@srlsys.org