Audit report, Screven-Jenkins Regional Library, Sylvania, Georgia, year ended June 30, 1994

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

AUDIT REPORT SCREVEN-JENKINS REGIONAL LIBRARY
SYLVANIA, GEORGIA YEAR ENDED JUNE 30, 1994

SCREVEN-JENKINS REGIONAL LIBRARY -TABLE OF CONTENTS-

SECTION!

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 STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

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 ANALYSIS OF CASH AND CASH EQUIVALENTS

16

2 ACCOUNTS RECEIVABLE

17

SCHEDULE OF REVENUE

3

STATE

18

4

FEDERAL

19

5

LOCAL AND OTHER

20

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

21

7 MEMBERSHIP OF LIBRARY BOARD

22

8 SCHEDULE OF SALARJES AND TRAVEL

23

SCREVEN-JENKINS REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 27, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Screven-Jenkins 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 Screven-Jenkins Regional Library, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary 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 variance or omission have not been determined, but are believed to be material.
94ARL-42

In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Screven-Jenkins Regional Library as of June 30, 1994, 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 of forming an opinion on the general purpose financial statements ofthe Screven-Jenkins 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 ofadditional analysis and are not a required part of the general purpose financial statements of the ScrevenJenkins Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters discussed in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
k~
Claude L. Vickers State Auditor
CLV:gp 94ARL-42

SCREVEN-JENKINS REGIONAL LIBRARY -1-

SCREVEN-JENKINS REGIONAL LIBRARY COMBINED BALANCE SHEET
!LL FUND TYPES AND ACCQUNT GROUP JUNE 30 1994

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents Accounts Receivable Anount to be Provided in Future Years
for Payment of Compensated Absences

GOVERNMENTAL FUND TYPES

GENERAL FUNO

SPECIAL REVENUE
FUNO

CAPITAL PROJECTS
FUND

ACCOUNT GROUP

GENERAL LONG-TERM
DEBT

TOTAL (Me!OOrandllTI
Only)

75,971.51 $ 2,630.22

37,570.59 $

4.43

113,546.53 2,630.22

9,619.34

9,619.34

Total Assets

78,601.73 $
============

37,570.59 $

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balances Payable Canpensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs Unreserved Undesignated
Total Fund Equity

8,742.40 $ 22.48

36,740.86

8,764.88 $ 36,740.86

69,836.85 69,836.85 $

829.73 0.00 $
829.73 $

4.43 $ 9,619.34 $ 125,796.09

9,619.34

45,483.26 22.48
9,619.34

9,619.34 $ 55,125.08

4.43 4.43

829. 73 69,841.28 70,671.01

Total Liabilities and Fund Equity

78,601.73 $ 37,570.59 $

4.43 $ 9,619.34 $ 125,796.09

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

SCREVEN-JENKINS REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES EXPENOITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

EXHIBIT "8"

REVENUES
State Funds Federal Funds local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operat i ans
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY I

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL (Memorandum
Dnl y)

117,916.84 $ 216,694.75

35,000.00 18,350.80
$

15,439.13

152,916.84 18,350.80
232,133.88

334,611.59

53,350.80 $

15,439.13 $ 403,401.52

55,205.16$ 24,265.35 62,895.38 131,808.03 47,961.70

15,490.90
340. 65 35,689.78
4,000.00

196,897.53

70,696.06 24,265.35 63,236.03 167,497.81 51,961.70 196,897.53

322,135.62

55,521.33

196,897.53

574,554.48

12,475.97 57,360.88

-2,170.53 $ -181,458.40 $ -171,152.96

3,000.26

181,462.83

241,823.97

FUND BALANCE JUNE 30

69,836.85 $

829.73

4.43 $

70,671.01

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

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

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

EXHIBIT "C"

REVENUES
State Funds Federal Funds Loca 1 and Other Funds
Tota 1 Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over ( under) Expenditures FUND BALANCE JULY 1, 1993
ADJUSTMENTS
Prior Year (Net)
FUND BALANCE JUNE 30, 1994

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

152,916.84 $ 18,350.80
232,133.88

138,674.DO $ 0.00
197,268.00

14,242.84 18,350.80 34,865.88

403,401.52

335,942.00 $

67,459.52

70,696.06 $ 24,265.35 63,236.03 167,497.81 51,961.70 196,897.53

32,741.80$ 24,579.00 87,726.00 153,352.00 49,895.00
0. 00

-37 ,954.26 313. 65
24,489.97 -14,145.81
-2 ,066. 70 -196,897 .53

574,554.48 $ 348,293.80 $ -226,260.68

-171,152.96 $ -12,351.80 $ -158,801.16

241,823.97

243,658.42

-1, 834. 45

-362.15

362.15

70,671.01

230,944.47 $ -160,273.46

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

SCREVEN-JENKINS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\1ENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Screven-Jenkins Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-540 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 the following paragraphs, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Screven-Jenkins Regional Library is determined to be a joint venture.
The Library Board consists of five members serving on member County Library Boards who are appointed to the Regional Library Board by each County Library as specified in the by-laws. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Screven-Jenkins Library is located in Sylvania, Georgia, and serves Screven and Jenkins Counties.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed
- 6-

SCREVEN-JENKINS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of Georgia State Financing and Investment Commission Project No. 7242-92SB-01 l.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences 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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SCREVEN-JENKINS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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
Screven-Jenkins Regional Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division of Public Library Services, as a part of the Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings accounts and N. 0.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.
RECENABLES
Receivables consist of grant reimbursements due from State grantors for expenditures made but not reimbursed. 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.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting
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SCREVEN-JENKINS REGIONAL LIBRARY

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following types ofinterfund 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.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
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SCREVEN-JENKINS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS

(5) Bonds ofany public authority created by the laws ofthe 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 Jaws 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 and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Banlc, 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, 1994, the bank balances were $124,987.73. The bank balances were entirely covered by Federal depository insurance.

Note 3: RISK MANAGEMENT

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

Note 4: OPERATING LEASES

The Library has committed under various leases for copying machines. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1994, amounted to $2,676.00. Future minimum lease payments for these leases are as follows:

Year Ending

1995 1996

$ 2,676.00 2 572.00

Total

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

- 10 -

SCREVEN-JENKINS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30 1994

Notes: GENERALLONG-TERMDEBT

Compensated Absences

Balance July 1, 1993

$

0.00

Retroactive Restatement ofPrior Year Balances

6 266.14

Balance July 1, 1993 Restated

$ 6,266.14

Additions Leave Earned and Utilized (Net)

3 353.20

Balance June 30, 1994 Note 6: CONTINGENT LIABILITIES

$ 9 612 34

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: ACCUMULATED EMPLOYEES LEAVE

The Library's professional staff employees earn 20 days per year of vacation leave. The Library's full-time and part-time non-professional employees earn vacation leave according to their length of service. Full-time non-professional employees with less than 10 years service earn 10 days per year of vacation leave and with 10 or more years service earn 15 days per year ofvacation leave. Part-time employees earn vacation leave on a pro-rate basis according to the number of hours worked per week. Vacation leave may be accumulated up to the maximum number of days in the employee's annual allotment. All unused vacation leave is paid to employees at their current rate of pay, upon retirement or termination of employment. See Note 1 Compensated Absences

Note 8: RETIRE:MENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

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SCREVEN-JENKINS REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten year~ of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered byTRS for the year ended June 30, 1994, was $159,175.22; total payroll was $164,889.35.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $28,349.35, ofwhich $18,798.58 was made by the Library and $9,550.77 was made by employees. These contributions represented 11.81% (Library) and 6% (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,
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SCREVEN-JENKINS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS

assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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

Total pension benefit obligation

$ 13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ J 090 292 000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of $18,798.58 was actuarially determined and represented .0036% oftotal contributions made by all participating employers.

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

Note 9: SURETY BONDS

Ms. TerriL. Walker, Library Director through September 15, 1993, was bonded in the amount of$20,000.00 with the Ohio Casualty Insurance Company, Hamilton, Ohio, their Bond No. 2-911-569.

Mrs. Sandra L. Lively, Library Director, effective September 16, 1993, and all employees of the Library are covered by a Public Employee Dishonesty Coverage policy for the amount of $20,000.00 with the Ohio Casualty Insurance Company, Hamilton, Ohio, their Policy No. 2-911-569, on which premium is paid to October 22, 1994.

The Library Treasurer, Mrs. Emelyn Hunter, is bonded in the amount of$10,000.00 with the Ohio Casualty Insurance Company, Hamilton, Ohio, their Bond No. 3-127-576, on which premium was paid to April 1, 1995.

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SCREVEN-JENKINS REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

EXHIBIT "E"

ASSETS Cash and Cash Equivalents

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION ACT

TITLE I PUBLIC LIBRARY SERVICES

TITLE VI LIBRARY
LITERACY PROGRAM

32,589.71

4,980.88

0. 00

TOTAL 37,570.59

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable
FUND EQUITY
Fund Ba1ances Reserved For Continuation of Federal Programs Unreserved Undes i gnated
Total Fund Equity

32,589.71

4,151.15

0. 00 0. 00

829. 73 0. 00 $
829. 73

36,740.86

0. 00 0. 00 $

829. 73 0. 00
829. 73

Total Liabilities and Fund Equity

32,589.71 $

4,980.88 $

0. 00 $ 37,570.59

See notes to the genera 1 purpose financial statements. - 14

SCREVEN-JENKINS REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 3D 1994

EXHIBIT "F"

REVENUES
State Funds Federal Funds
Total Revenues
EXPENDITURES
Current Program 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

TITLE VI LIBRARY
LITERACY PROGRAM

TOTAL

35,000.00
$

10,000.00 $

8,350.BD

35,000.00 18,350.80

35,000.00 $

10,000.00 $

8,350.80 $

53,350.80

35,000.00

7,139.10$ 340. 65 689. 78
4,000.00

8,351.80 $

15,490.90 340. 65
35,689.78 4,000.00

35,000.00 $

12,169.53

8,351.80

55,521.33

D. 00 $ 0.00

-2, 169. 53 $ 2,999.26

-1. 00 $
1.00

-2, 170. 53 3,000.26

FUND BALANCE JUNE 30

0. 00 $

829. 73

0. 00 $

829. 73

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

SCREVEN-JENKINS REGIONAL LIBRARY ANALYSIS OF CASH ANO CASH EQUIVALENTS
JUNE 30 1994

SCHEDULE "l"

NON INTEREST BEARING ACCOUNTS
Bank of Mi 11 en, Millen, Georgia Farmers and Merchants Bank, Sylvania. Georgi a

INTEREST BEAR I NG ACCOUNTS

Bank of Mi 11 en, Mi 11 en, Georgi a
Passbook Savings Account

(2.53%)

Bank of Newington, Newington, Georgi a
Certificate of Deposit No. 38

(4.25%}

First Uni on Nati ona 1 Bank, Sylvania, Georgia
N.O.W. Account (2.0B%) N.O.W. Account (2.033%) Passbook Savings Account

(2 .25%)

Ogeechee Valley Bank, Millen, Georgia
N.O.W. Account (2.75%)

OTHER

Petty Cash

11,553.53 2,000.00
13,553.53

1,175.74

16,000.00

78,818.77 2,991.00 903. 06

4 .43

99,893.00

100. 00 113,546.53

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

SCREVEN-JENKINS REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30 1994
Education, Georgia Department of Public Libraries Salaries and Travel

SCHEDULE "2"
GOVERNMENTAL FUND TYPE GENERAL FUND
2,630.22

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

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE "3"

AGENCY /FUND! NG
GRANTS Education, Georgi a Department of Public Libraries Salaries and Travel Library Materials Maintenance and Ope rat i ens lottery Program Media Center and library Equipment
OTHER Administrative Services, Georgia Department of Reimbursement for Peachnet Travel

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

89,327.28 12,197.00 15,797. OD

35,000.00

89,327.28 12,197.00 15,797.00
35,000.00

595. 56

595. 56

117,916.84

35,000.00

152,916.84

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

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30 1994
AGENCY /FUND! NG
Education, U. S. Department of Direct library Services and Construction Act Title VI - Library Literacy Program Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "4"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
8,350.80 10,000.00
18,350.80

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

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF LOCAL ANO OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE "5"

LOCAL SOURCES Boards of Education Jenkins County Screven County
City Governments Mi 11 en Sylvania
County Governments Boards of Cammi ssioners Jenkins County Screven County
OTHER SOURCES Donati ans Fines Interest Earned lost and Damaged Books Sal es Books Fax Machine Laminating Photocopy United Way Other

GOVERNMENTAL FUND TYPES
-- -- ------ -- ---- -- -- ----- ---

CAPITAL

GENERAL

PROJECTS

FUND

FUND

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

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

7,000.00 16,000.00
9,500.00 51,000.00

7,000.00 16,000.00
9,500.00 51,000.00

46,628.00 $ 60,000.00

14,058.90

60,686.90 60,000.00

7 ,590-.80 7,215.19 1,843.20
465. 18

1,380.23

7,590.80 7,215.19 3,223.43
465. 18

104.55 114. 80 549 .35 1,543.59 5,179.00 1,961.09
-------------

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

104. 55 114. 80 549 .35 1,543.59 5,179.00 1,961.09
-------------

216,694.75$ 15,439.13 $ 232,133.88

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

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE "6"

EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Materials Supplies Library Books and Materi a1s Utilities Communication and Insurance Other Expenditures
Nonoperat i ng Costs Bui 1ding and Building Improvements Equipment
Total Expenditures

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

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

164,889.35 38,38B.00 3,892.47 $ 1,443.57 25,138.43 28,082.B9 13,476.40 66. 09 28,997.30 10,507.85 3,865.70

525. 00
705. 43 9,453.90

164,889.35 38,388.00 4,417.47 1,443.57 25,138.43 28,082.89 14,181.83 9,519.99 28,997.30 10,507.85 3,B65.70

196,897.53

196,897.53

3,387.57

44,837. oo

48,224.57

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

322,135.62

55,521.33

196,897.53

574,554.48

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

SCREVEN-JENKINS REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARO YEAR ENOEO JUNE 30 1994
BOARD MEMBER ADDRESS
Ms. Evelyn Hubbard, Chairman {*) P. 0. Box 1704 Sylvania. Georgi a 30467 Dr. Lynn Batten (*) 115 Barney Avenue Millen, Georgia 30442 Ms. Dorothy Cook (*) P. 0. Box 812 Mi 11 en, Georgi a 30442 Mrs. Emelyn Hunter (*) 1117 South Main Street Sylvania, Georgi a 30467 Hr. Edwin Lovett (*) Route 1, Box 99 Sylvania. Georgi a 30467
(*) Denotes Board Members Serving as of June 30, I 994

SCHEOULE "7"

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

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF SALARIES ANO TRAVEL YEAR ENOED JUNE 30 1994

SCHEDULE "8"

PERSONNEL
Bartley, Gainey, Gatterdam, Gi 1bert, Landrum, Lane, lively, Morris, Pfeiffer, Sims, Spiers, Walker, Waters, Waters, Wi 1kerson, Yearwood,

Regina T. Wilma T. Hans C. Barbara W. Susan A. Sonya A. Sandra L. Kenneth Mary Catherine Carmen Ruth Terri L.
Belinda s.
Debbie C. Debra B. Helen

Accrua 1s June 30, 1994

POSITION
Bookmobi 1e Ori ver Cl erk Cl erk Bookmobi 1e Ori ver-Cl erk Assistant Di rector Library Aide Di rector Courier Bookkeeper Librarian Branch Manager Di rector Clerk Bookkeeper Circulation Clerk L; brary Ai de

SALARIES

TRAVEL

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

12,012.00 3,402.16 8,736.00
13,540.56 8,886.20 420.76
32,140.42 48.88
4,905.49 26,954.40 13,365.84
8,937.42 13,184.40
5,286.69 12,420.00
648. 13
-------------

20. 50 50.40 123 .26 317. 88 2,039.61
1,044.79 699. 87 97 .85
-------------

164,889.35 $

4,394.16

23. 31
------------- -------------

164,889.35 $

4,417.47

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

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Finding Resolved Audit Control Number 7242-93-01
The audit report for the year ended June 30, 1992, noted that one employee was overpaid in the amount of $214.35. For the year under review, the Library received reimbursement for this overpayment through a payroll deduction.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7242-93-02
The audit report for the year ended June 30, 1993, noted that the management ofthe Screven-Jenkins Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not 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 ofland, buildings and equipment 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.
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Financial Statements Inadequate Separation ofDuties Audit Control Number 7242-94-01
Our audit disclosed that the Library had not provided for adequate separation of employee duties in the performance of accounting functions and related procedures.
This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Audit Control Number 7242-94-02
During the year ended June 30, 1994, the Library's accounting procedures were insufficient to provide for adequate internal control over the bank reconciliation process. The following deficiencies were noted:
(1) The monthly bank statements for the various bank accounts were not always reconciled to the general ledger. Audit adjustments were necessary to reconcile the accounting records with bank statements.
(2) Book errors disclosed through the bank reconciliation process were carried as reconciling items for extended periods of time.
(3) There was no administrative review to determine that bank reconciliations were correct and that all required adjustments had been made.
(4) For the month of January, check numbers recorded on the books for payroll checks did not agree with the actual check numbers issued.
These deficiencies were the result of inadequate training and supervision of accounting personnel. The management of the Library should establish internal controls to ensure that monthly bank statements are reconciled with the accounting records and that needed adjustments are recorded on a timely basis.

SECTION Ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7242-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff the Library has decided not to pursue the recording of general fixed assets on the financial statements.
ACCOUNTING CONTROLS (OVERALL) Financial Statements Inadequate Separation ofDuties Audit Control Number 7242-94-01
We concur with this finding, however due to current budgetary constraints, the Library is unable to hire the additional staff required to clear this finding. The Library feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved.
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Audit Control Number 7242-94-02
We concur with this finding. These deficiencies were the result of a new director and bookkeeper in the process of learning their jobs. Management has established internal controls to ensure that monthly bank statements are reconciled with the accounting records on a timely basis.