Screven-Jenkins Regional Library, Sylvania, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007

SCREVEN-JENKINS REGIONAL LIBRARY
SYLVANIA, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2007
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

SCREVEN-JENKINS 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

1

B

STATEMENT OF ACTIVITIES

2

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUND

3

D

RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

4

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE

GOVERNMENTAL FUND

5

F

RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCE TO THE STATEMENT OF ACTIVITIES

7

G

NOTES TO THE BASIC FINANCIAL STATEMENTS

8

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND

19

SUPPLEMENTARY INFORMATION

SCHEDULES OF REVENUE

2

STATE

20

3

FEDERAL

21

4

LOCAL

22

5 SCHEDULE OF SALARIES AND TRAVEL

23

SCREVEN-JENKINS REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION III FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS
SECTION IV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES

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
September 19, 2008

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 Screven-Jenkins 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 Screven-Jenkins Regional Library as of and for the year ended June 30, 2007, which collectively comprise the Library's basic financial statements as listed in the table ofcontents. These financial statements are the responsibility ofthe Screven-Jenkins 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 ofAmerica. 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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe Library's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 of the governmental activities and the major fund of the ScrevenJenkins Regional Library, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
2007ARL-41

The Screven-Jenkins 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 19 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 of measurement 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 Screven-Jenkins Regional Library's basic financial statements. The accompanying supplementary information which consist ofSchedules 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 of this 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,
~to~~p~ State Auditor
RWH:as 2007ARL-41

SCREVEN-JENKINS REGIONAL LIBRARY

SCREVEN-JENKINS REGIONAL LIBRARY STATEMENT OF NET ASSETS JUNE 30, 2007

EXHIBIT"A"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Local Government Other Less: Allowance for Doubtful Accounts Capital Assets Library Collections Less: Accumulated Depreciation
Total Assets
LIABILITIES
Accounts Payable Long-Term Liabilities
Due in More Than One Year
Total Liabilities NET ASSETS Invested in Capital Assets, Net of Related Debt Unrestricted Total Net Assets
Total Liabilities and Net Assets

GOVERNMENTAL ACTIVITIES

$

222,214.40

43,576.28

31,701.74 112,578.53 -89,105.91

937,553.91 -719,338.23

$ =======53=9=,1=8=0.=72=

$

3,926.08

15 043.07

$

18,969.15

$

218,215.68

301,995.89

$

520,211.57

$ ===5=39='=18=0=.7=2

The notes to the basic financial statements are an integral part of this statement. -1-

SCREVEN-JENKINS REGIONAL LIBRARY STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2007

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 Information Technology

$ 219,417.74 $ 26,975.78 311,863.77 55,141.12 15,565.96

42,087.72 $

251,155.95 $ 23,178.77

73,825.93 -26,975.78 -311,863. 77 -31,962.35 -15,565.96

Total Governmental Activities

$ 628,964.37 $

42,087.72 $

274,334.72 $ _ _ _-_3_12~,54_1_.9_3

General Revenues Allotments From Participating Governments Investment Earnings Miscellaneous Revenue

$

378,527.00

4,970.43

32741.91

Total General Revenues

$ _ _ _4_16_,2_3_9_.34_

Change in Net Assets

$

103,697.41

Net Assets - Beginning of Year

416 514.16

Net Assets - End of Year

$ ==--=s..,20.,.,2...1..,1..s...1..

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

SCREVEN-JENKINS REGIONAL LIBRARY BALANCE SHEET
GOVERNMENTAL FUND JUNE 30, 2007
ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Local Government Other Less: Allowance for Doubtful Accounts
Total Assets
LIABILITIES AND FUND BALANCE LIABILITIES
Accounts Payable Deposits and Deferred Revenue
Total Liabilities FUND BALANCE
Unreserved Undesignated Reported in: General Fund
Total Liabilities and Fund Balance

EXHIBIT "C"

GENERAL FUND

$

222,214.40

43,576.28

31,701.74 112,578.53 -89 105.91

$ ===3=20=,9=6=5.=04=

$

3,926.08

21,138.20

$

25,064.28

295,900.76 $ ====32=0=,9=6=5.=04=

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

SCREVEN-JENKINS REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30, 2007

EXHIBIT"D"

Total Fund Balance - Governmental Fund (Exhibit "C")

$ 295,900.76

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:

Library Collections Accumulated Depreciation
Total Capital Assets

$ 937,553.91 -719,338.23

218,215.68

Fines and Fees Revenues not collected within sixty days of fiscal year-end are reflected as deferred revenue on the Governmental Fund Balance Sheet.

21,138.20

Compensated Absences, which are Long-Term Liabilities, are not due and payable in the current period and therefore are not reported as liabilities in the funds.

-15,043.07

Net Assets of Governmental Activities (Exhibit "A")

$ 520,211.57

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

SCREVEN-JENKINS REGIONAL LIBRARY

EXHIBIT "E"

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUND

YEAR ENDED JUNE 30, 2007

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 Information Technology
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending

GENERAL FUND
$ 378,527.00 266,291.96 8,042.76 20,949.52 4,970.43 32,741.91
$ 711,523.58

$ 232,304.28 26,975.78 311,863.77 55,141.12 15,565.96

$ 641,850.91

$

69,672.67

226,228.09

$ 295,900.76

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

(This page left intentionally blank)

SCREVEN-JENKINS REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007

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 Capital Outlay over Depreciation Expense
Fines and Fees Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the Governmental Funds.
Compensated absences decreases reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds.

$ 69,672.67

$ 36,718.61 -32,325.00

4,393.61 21,138.20

8,492.93

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

$ 103,697.41

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

SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "G"

Note 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY
REPORTING ENTITY
The Screven-Jenkins 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 membership consists offive members serving on member County Library Boards who are appointed to the Regional Library Board by each County Library as specified in the bylaws. The Library Board is without authority to determine the amount ofits funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal 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 oflocal and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Screven-Jenkins 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 ScrevenJenkins Regional Library.
Library-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe 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 of the Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients ofgoods 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.
-8-

SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of accounting 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, except for compensated absences, which are recognized as expenditures to the extent they have matured. 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.

-9-

SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

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. Official Code of Georgia Annotated Section 45-8-14 authorizes the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
The Library does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks.

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SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, fines and fees from patrons, 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 include amounts which 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 ofassets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the Library.

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

Capitalization Policy

Estimated Useful Life

Equipment Library Collections

$ 5,000.00 All

10 years 10 years

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

NET ASSETS

The Library's net assets in the Library-wide Statements are classified as follows:

Invested in capital assets, net of related debt - This represents the Library's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt.

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SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unrestricted net assets - Unrestricted net assets represent resources derived from grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the general operations of the Library, and may be used at the discretion of the Library to meet current expenses for those purposes.
Note 3: DEPOSITS AND INVESTMENTS
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 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. At June 30, $57,987.30 ofdeposits were not secured by surety bond, insurance or collateral as specified above. The Library is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the Library's deposits.
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 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.
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SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 3: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $327,878.07. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk:

Category 1 - Uncollateralized Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's
trust department or agent but not in the Library's name.

The Library's deposits are classified by custodial credit risk category at June 30, 2007, as follows:

Custodial Credit Risk Category

Bank Balance

1

$ 57,987.30

2

29,936.52

3

0.00

Total

$ 872923.82

CATEGORIZATION OF INVESTMENTS Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofthe failure ofthe counterparty to a transaction, the Library will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The Library does not have a formal policy for managing custodial credit risk.

At June 30, 2007, the fair value of the Library's total investments was $10,000.00 and this entire amount consisted of a U. S. Treasury Bill.

Interest Rate Risk Interest rate risk is the risk that changes in interest rates ofdebt investment will adversely affect the fair value of an investment. The Library does not have a formal policy for managing interest rate risk.

At June 30, 2007, the Library's investment consisted of a U. S. Treasury Bill which had an investment maturity of less than one year.

Note 4: CAPITAL ASSETS

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

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SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 4: CAPITAL ASSETS

Governmental Activities Capital Assets Being Depreciated
Library Collections
Less Accumulated Depreciation for: Library Collections
Governmental Activity Capital Assets - Net

Balances July 1, 2006

Increases

Decreases

Balances June 30, 2007

$ 909,371.30 $ 36,718.61 $

8,536.00 $ 937,553.91

695,549.23
$ 213 822 02 $

32,325.00
4,323.61 $

8,536.00

719,338.23

0.00 $ 218 215.68

Current year depreciation expense by function is as follows:

Public Services

$ 32,325.00

Note 5: RISK MANAGEMENT

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 of loss associated with torts, assets and errors or omissions. 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.

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

2006 2007

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

$

0.00 $

2,111.00 $

2,111.00 $

0.00

$

0.00 $

119.84 $

119.84 $

0.00

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SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note5: RISKMANAGEMENT

The Library participates in the Association County Commissioners ofGeorgia-Selflnsured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with Safety National Casualty Corporation to provide coverage for potential losses by the Fund in excess of$1,000,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Each Library Bond Treasurer All Other Employees

$ 10,000.00 $ 200,000.00

Note 6: OPERATING LEASES

Screven-Jenkins Regional Library has entered into various leases as lessee for copying machines. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2007, for governmental funds amounted to $6,464.10. Future minimum lease payments for these leases are as follows:

Year Ending

Governmental Funds

2008

$==1,.,.,.9==45===.5==6

Note 7: LONG-TERM DEBT

COMPENSATED ABSENCES Compensated absences represent obligations ofthe Library relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The Library uses the vesting method to compute compensated absences.

The changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows:

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SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 7: LONG-TERM DEBT

Governmental Funds
Compensated Absences (1)

Balance July 1, 2006

$ 23,536.00

Additions Annual Leave Earned

27,268.55

Deductions Annual Leave Utilized

35,761.48

Balance June 30, 2007

$ 15,043.07

(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements.

Note 8: 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 costs which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 9: 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 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

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SCREVEN-JENKINS REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT"G"

Note 9: RETIREMENT PLANS
Fiscal Year 2007 2006 2005

Percentage Contributed
100% 100% 100%

Required Contribution
$ 29,502.81 $ 28,265.00 $ 25,380.00

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SCREVEN-JENKINS REGIONAL LIBRARY GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2007

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 Information Technology
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

$

378,527.00 $

378,527.00 $

378,527.00

259,333.38

266,291.96

266,291.96

800.00

800.00

8,042.76

12,263.00

12,263.00

20,949.52

3,900.00

3,900.00

4,970.43

70.00

70.00

32 741.91

$

654,893.38 $

661,851.96 $

711,523.58

$

226,236.31 $

226,236.31 $

232,304.28

29,078.00

29,078.00

26,975.78

319,780.88

319,780.88

311,863.77

70,947.69

77,906.27

55,141.12

8,850.50

8,850.50

15,565.96

$

654,893.38 $

661,851.96 $

641,850.91

$

0.00 $

0.00 $

69,672.67

0.00

0.00

226,228.09

Fund Balance - Ending

$

0.00 $

0.00 $ ===2=95=,9=00=.7=6

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 of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007
AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Benefits Library Materials Maintenance and Operations

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

153,120.78

68,684.10

21,308.31

23 178.77

$ ===26=6=,2=9=1=9=6

See notes to the basic financial statements.

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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 2007
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
$ ======8=04=2=.7=6

See notes to the basic financial statements.

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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2007
LOCAL SOURCES Boards of Education Jenkins County Screven County County Governments Boards of Commissioners Jenkins Screven

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

19,629.00

26,000.00

100,378.00 232,520.00

$ ===3=7=8,=52..7.=.o=o

See notes to the basic financial statements.

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NAME

Bartley, Blank, Boyton, Bryan, Bynes, Chance, Gainey, Gilbert, Joiner, Kelly, Parker, Reddick, Schwenke, Wade, Wade, Ward, Waters, Watson, Weaver, Weinberger, Williams, Young, Youles,

Regina T. Sharon Genesis Debra Jeremy JoanneR. WilmaT. Barbara W. A. J. Ebony Lionel Callie Patricia Brandon Constance Rebecca C. Belinda S. Pauline 8. Colby Wendy Lillian Phillip Kathryn E.

Totals per Report

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2007

SCHEDULE "5"

TITLE CATEGORY
Technical Services Assistant Resource Librarian Library Assistant Library Assistant Library Assistant Library Assistant Branch Manager Extension Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Assistant Branch Manager Business Manager Children's Program Coordinator Circulation Manager Library Assistant Director Library Assistant Library Assistant Assistant Director/Operations Manager

SALARIES

TRAVEL

$ 18,700.28 $ 44,344.56 102.00 768.00 3,007.86 5,168.67 17,790.96 19,724.00 1,219.28 4,784.45 1,405.96 1,955.74 1,540.50 854.93 11,426.64 13,123.26 22,584.78 22,040.54 1,565.62 71,078.73 4,076.73 11,057.63 66,046.91

188.53 162.00
631.79 77.08
65.54 148.14 236.84 1,784.47

$ 344,368.03 $ ====3=,2=9=4=39=

See notes to the basic financial statements.

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SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SCREVEN-JENKINS REGIONAL LIBRARY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER

AUDITEE'S RESPONSE/STATUS

SEE AUDITOR'S COMMENTS

FS-7242-06-01 FS-7242-06-02

Further Action Not Warranted

( 1)

Partially Resolved - See Corrective Action/Responses

AUDITOR'S COMMENTS
(1) Findings/internal control deficiencies of this nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112, will be communicated in a management letter in subsequent periods.

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls Procedures Finding Control Number: FS-7242-06-02

Procedures have been implemented to strengthen internal controls in fiscal year 2008.

SECTION III FINDINGS AND QUESTIONED COSTS

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

COMMUNICATION OF INTERNAL CONTROL DEFICIENCIES

The auditor is required to communicate to management and those charged with governance control deficiencies identified during the course of the financial statement audit that, in the auditor's judgment, constitute significant deficiencies or material weakness.

A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Screven-Jenkins Regional Library's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Screven-Jenkins Regional Library's financial statements that is more than inconsequential will not be prevented or detected by the Screven-Jenkins Regional Library's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Screven-Jenkins Regional Library's internal control.

Any identified deficiencies in internal controls that we did not consider to be significant deficiencies and/or material weaknesses have been communicated to management and those charged with governance within a separate management letter dated September 19, 2008. Internal control deficiencies identified during the course of this engagement that were considered to be significant deficiencies and/or material weaknesses are presented below:

ACCOUNTING CONTROLS (OVERALL) Inadequate Accounting Procedures Significant Deficiency Finding Control Number: FS-7242-07-01

Condition:

The accounting procedures of the Library were insufficient to provide adequate controls over fiscal year-end closing procedures.

Criteria:

The Library's management is responsible for designing and maintaining controls that provide reasonable assurance that transactions are processed according to established procedures.

Questioned Cost: NIA

Information:

While gaining an understanding of the Fundware Accounting Software utilized by the Library for financial reporting, it was noted that the financial software does not force the Library to establish and adhere to a final closing date for prior fiscal periods.

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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

ACCOUNTING CONTROLS (OVERALL) Inadequate Accounting Procedures Significant Deficiency Finding Control Number: FS-7242-07-01

Cause:

The Library failed to implement controls to ensure that financial statement activity was posted to the current fiscal year. Specifically it was noted that journal entries for the period under review were posted to the previous fiscal year.

Effect:

Errors and/or irregularities may not be detected in a timely manner.

Recommendation:

The Library should establish and implement appropriate procedures to adhere to a final closing for each fiscal year-end in order to maintain the integrity of their data processed with the Fundware Accounting Software.

CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Control Procedures Material Weakness Finding Control Number: FS-7242-07-02

Condition:

This is a repeat finding (FS-7242-06-02) from the year ended June 30, 2006. The accounting procedures of the Library were insufficient to provide for adequate internal controls.

Criteria:

The Library's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are properly approved, documented, processed and reported.

Questioned Cost: NIA

Information:

Cash and Cash Equivalents The bank reconciliation function was not separated from the record keeping and check preparation functions. The bank reconciliations were not reviewed by an administrator not directly connected with cash operations. Five of the eight bank accounts were not reconciled to the general ledger at June 30, 2007. 1) Audit procedures identified an unidentified variance of $7,145.89 for the operating bank account.

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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007
CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Control Procedures Material Weakness Finding Control Number: FS-7242-07-02
2) Three bank accounts failed to record interest revenue for the last six months of the fiscal year.
3) For a fifth bank account, audit procedures revealed that two fiscal year 2005 checks were erroneously voided after the checks had cleared the bank in fiscal year 2006. The Library failed to make the necessary adjustments for these items.
Two of the other bank accounts' June 2007 bank statements were not reconciled to the general ledger timely.
One certificate of deposit was overstated on the general ledger by $241.58.
Three checks cleared the bank even though they were not signed by the Library Director or any other authorized individual.
One check that cleared the bank was signed by the bookkeeper who is not authorized to sign checks.
Revenues/Receivables/Receipts The deposit preparation function was not separated from the record keeping and cash custody functions. Based on a review of twenty receipts, four receipts recorded on the general ledger did not have adequate documentation. Two June 2007 cash receipts totaling $31,701.74 were not deposited in the bank nor recorded on the books until July 19, 2007. An audit adjustment was proposed and made to record this revenue in fiscal year 2007. An invalid Accounts Receivable of $2,300.00 was recorded on the general ledger at June 30, 2007. An audit adjustment was proposed and made to remove this invalid receivable. The Library failed to record Accounts Receivable for the PINES System in the amount of $23,472.62 (net of Allowance for Doubtful Accounts). An audit adjustment was proposed and made to record these receivables.
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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007
CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Control Procedures Material Weakness Finding Control Number: FS-7242-07-02
Expenditures/Liabilities/Disbursements The record keeping function was not separated from the check writing and electronic transfer functions. Based on a review oftwenty vouchers the following deficiencies were noted: 1) Six vouchers packages lacked purchase orders. 2) Seven voucher packages were not properly approved or were incomplete. 3) One invoice did not support the amount paid. 4) One voucher package could not be located. Late fees were charged on the operating lease for seven ofthe monthly payments for a total of $344.94. An invalid Accounts Payable of$3,258.54 was recorded on the general ledger at June 30, 2007. No documentation could be provided to support this accounts payable. An audit adjustment was proposed and made to remove this invalid payable. Invoices totaling $3,926.08 were dated in fiscal year 2007, but not expensed until fiscal year 2008. An audit adjustment was proposed and made to record these payables.
General Ledger Dates on the journal entries were not in chronological order according to the automated transaction numerical sequence. Based on a review of twenty manually prepared and approved journal entries, the following deficiencies were noted: 1) Sixteenjournal entries lacked supporting documentation. 2) Two journal entry numbers could not be traced to the fiscal year 2007 general ledger. Audit procedures revealed that they had been posted to a prior fiscal year. 3) Two separate journal entries had the same journal entry number but different dates. Audit procedures revealed that one of the journal entries was never posted to the system.
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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Control Procedures Material Weakness Finding Control Number: FS-7242-07-02

Cause:

These deficiencies were the result of management's decision to limit the number ofadministrative staffmade responsible for accounting functions and management's failure to ensure that internal controls were established, implemented and functioning.

Effect:

Errors and/or irregularities may not be detected in a timely manner.

Recommendation:

Management should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight for these incompatible activities. In addition, management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures.

CAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-7242-07-03

Condition:

The accounting procedures of the Library were insufficient to provide for adequate control over Capital Assets.

Criteria:

The Library's management is responsible for designing, implementing and monitoring internal controls that provide reasonable assurance that Capital Assets records are maintained in accordance with the Library's capitalization policies and generally accepted accounting principles.

Questioned Cost: NIA

Information:

Capitalized collection additions of $36,718.61 and deletions of $8,536.00 were not recorded on the financial statement. Audit adjustments were proposed and made to correct the Capital Assets presentation for audit. In addition, the Library failed to provide documentation to support these additions and deletions.

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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

CAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-7242-07-03

Cause:

The Library's management failed to implement satisfactory controls and procedures necessary to record and maintain accurate Capital Assets records.

Effect:

Without proper accounting controls and procedures in place, capital acquisitions, capital deletions, and depreciation expense could be inaccurately reported.

Recommendation:

The Library should review the accounting controls and procedures currently in place, identify weaknesses and design and implement procedures necessary to strengthen controls over Capital Assets. Additionally, the Library should review its Capital Assets records and make appropriate adjustments to ensure that the subsidiary records properly support activity reported on the general ledger.

FINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7242-07-04

Condition:

The Library did not have adequate controls in place over the financial statement reporting process.

Criteria:

Management is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures.

Questioned Cost: NIA

Information:

The Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the Library's financial statements. During the audit, numerous correcting entries were proposed by the auditor and accepted by the client to properly present the entity's fund level and entity-wide level financial statements.

Cause:

The Library did not implement an adequate system of internal control over the financial statement reporting process.

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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

FINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7242-07-04

Effect:

The Library did not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles.

Recommendation:

The Library should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financial statement presented for audit.

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SECTION IV MANAGEMENT'S RESPONSES

SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2007
Screven-Jenkins Regional Library's responses to the findings described below were not audited and accordingly, we express no opinion on it.
Finding Control Number: FS-7242-07-01
We concur with this finding. The bookkeeper has been instructed to ensure that final closing for prior fiscal periods is done. Final closing of a fiscal year period will ensure that journal entries are not posted to a previous fiscal year.
Finding Control Number: FS-7242-07-02
We concur with this finding. The bookkeeper and the Director have implemented a new procedure for the bank reconciliation function. All reconciliations are now done in a timely manner. After performing the reconciliation, the bookkeeper gives the bank statements to the Director for review and she will initial each statement reflecting her review. The bank statements have now been reconciled to the general ledger per the auditor's instructions. Each outstanding check list now has the numbers of the checks on the list. All future statements will be reconciled per auditor's instructions. The variance of $7,145.89 in the Queensborough was caused by a two journal entry done incorrectly and have been corrected so that the account is balanced to the general ledger.
All bank accounts are now reconciled to the general ledger, all fees and interest posted. The two checks from fiscal year 2005 voided erroneously have been corrected through a journal entry given to the bookkeeper by Auditor Caroline James.
The CD that was overstated was an error made by the bookkeeper in recording the interest because she posted the interest through August 2007, rather than through June 2007.
All deposits are now made on a daily basis and entered into the financial accounting system (Fundware) in a timely manner. Each receipt number is recorded in numerical sequence. Three individuals are involved in the cash deposit process. One employee balances the cash drawer, prepares the deposit slip, and gives the cash to the Director.
The Director verifies the amount of deposit and she, or another employee that she designates, takes the deposit to the bank. The deposit information is given to the bookkeeper to record in Fundware. This corrective action for handling deposits was implemented immediately.
The $2,300.00 was an adjustment that the bookkeeper made per the auditor for fiscal year 2006; however, the bookkeeper debited the wrong account in posting the journal entry. Auditor Caroline James gave the bookkeeper the necessary journal entry to correct this matter.
The $23,472.62 for the Pines System was not entered as a receivable because the bookkeeper was not aware that the outstanding fines in the Pines Systems should be written up as a receivable.
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SCREVEN-JENKINS REGIONAL LIBRARY SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2007
Finding Control Number: FS-7242-07-02
Expenditure vouchers packets will include sequential purchase order, packing slip, invoice and a copy of the check. This procedure was implemented July 2007.
Late fees to the operating lease on the copiers were due to a contractual problem with the Vendor. The problem was corrected and there will not be late fees again.
The invalid accounts payable of$3,258.54 is a payroll problem from fiscal year 2006. The auditor gave a Journal Entry to the bookkeeper to correct this issue.
The Director ensures that there will not be any future electronic payments to Vendors, with the exception of payment to the Teachers' Retirement Plan.
New journal entry procedures have been implemented to ensure proper documentation, proper descriptions, and the Director will assign all journal entry numbers and will review and sign each journal entry before the bookkeeper can manually enter them into the Fundware system. No journal entries will be allowed to be entered on prior fiscal years, and that will ensure no change in beginning fund balances. The corrective action for journal entries began immediately.
Finding Control Number: FS-7242-07-03
We concur with this finding. The bookkeeper was not given the information to record the capitalized collections to the general ledger. The bookkeeper has been given this information and has been instructed to record collection mlditions of $36,718.61 and $8,356.00 of deletions. The Assistant Director had documentation but not adequate according to the auditor. We are implementing a new procedure to make sure there is adequate documentation for fiscal year 2008.
Finding Control Number: FS-7242-07-04
We concur with this finding. The Director and bookkeeper attended one day training for the financial reporting. The bookkeeper did complete as much as she could ofthe financial reporting. The auditor concluded that the financial report was not complete, and had to finish completing the report. This was the bookkeepers' first year at attempting the financial reporting. The Director will hire a CPA to complete the financial report for the next audit.
Contact Person: Wendy Weinberger, Director Phone: (912) 564-7526 Fax: (912) 564-7580 E-mail: wendyweinberger@sjrls.org
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