Audit report, Sequoyah Regional Library, Canton, Georgia, year ended June 30, 1994

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

AUDIT REPORT SEQUOYAH REGIONAL LIBRARY
CANTON, GEORGIA YEAR ENDED JUNE 30, 1994

SEOUOYAH REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED 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

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

1 ANALYSIS OF CASH AND CASH EQUIVALENTS

18

2 ACCOUNTS RECENABLE

19

SCHEDULE OF REVENUE

3

STATE

20

4

FEDERAL

21

5

LOCAL AND OTHER

22

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

23

7 MEMBERSHIP OF LIBRARY BOARD

24

8 SCHEDULE OF SALARIES AND TRAVEL

25

SEQUOYAH REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.epartm.eut .of J\.units
254 WASHINGTON STREET, S.W ROOM 214
~tlnuht, @cor_sin 30334-8400
January 13, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Sequoyah 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 Sequoyah 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 a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of this variance or omission has 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 Sequoyah Regional Library as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Sequoyah Regional Library taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules I through 8), as listed in the table of contents, are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements ofthe Sequoyah Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, is fairly 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 ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-42

SEQUOYAH REGIONAL LIBRARY - 1-

SEQUOYAH REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1994

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents Accounts Receivable Amount to be Provided in Future Years
for Payment of ~ensated Absences

GOVERNMENTAL FUND TYPES

ACCOUNT GROUP

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

SPECIAL

CAPITAL

GENERAL

TOTAL

GENERAL

REVENUE

PROJECTS

LONG-TERM (Memorandun

FUND

FUND

FUND

DEBT

Only)

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

$ 380,704.85$ 69,612.13 $ 56,173.50

$ 506,490.48

8,010.60

1,169.87

9,180.47

$ 37,843.59

37,843.59

Total Assets

$ 388,715.45$ 70,782.00$ 56,173.50$ 37,843.59 $ 553,514.54
============= =========== -============ s=======:c==== ===c-===-=-=

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Canpensated Absences

$ 33,337.13$ 70,782.00

$ 104,119.13

$ 37,843.59

37,843.59

Total Liabilities

$ 33,337.13 $ 70,782.00

$ 37,843.59 $ 141,962.72

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects Unreserved Designated for R. T. Jones Memorial Library Emergency Fund Undesignated

$ 31,578.71 323,799.61 $

Total Fund Equity

$ 355,378.32$

$ 56,173.50

0.00

0.00

0.00 $ 56,173.50

$ 56,173.50
31,578.71 323,799.61
-------------
$ 411,551.82
-------------

Total Liabilities and Fund Equity $ 388,715.45$ 70,782.00$ 56,173.50$ 37,843.59$ 553,514.54
=========== ========== ============ =========== =============

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

SEQUOYAH REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

TOTAL (Memorandum
Only)

REVENUES

State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES

$ 392,991.30 $ 95,369.87 $ 77,647.00 $ 566,008.17

516.02

22,000.00

22,516.02

1,217,659.06

59,743.84 1,277,402.90

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

$ 1,611,166.38 $ 117,369.87 $ 137,390.84 $ 1,865,927.09
------------- ------------- ------------- -------------

Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures

$ 513,689.54 $ 7,870.00

$ 521,559.54

87,096.09

3,163.00

90,259.09

349,345.99

349,345.99

390,607.25 105,398.90

496,006.15

272,326.26

937.97

273,264.23

$ 526,790.11

526,790.11

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

$1,613,065.13$ 117,369.87$ 526,790.11 $ 2,257,225.11

Excess of Revenues over (under) Expenditures $ -1,898.75 $

FUND BALANCE JULY 1

357,277.07

0.00 $ -389,399.27 $ -391,298.02 0.00 445,572.77 802,849.84

FUND BALANCE JUNE 30

$ 355,378.32 $

0.00 $ 56,173.50$ 411,551.82

============= ============= ============= =============

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

4

SEQUOYAH 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 Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING (USES)
Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1993
ADJUSTMENTS
Prior Year (Net)

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 566,008.17$ 2,113,751.00 $-1,547,742.83

22,516.02

22,000.00

516.02

1,277,402.90 1,777,506.00 -500,103.10

$1,865,927.09 $ 3,913,257.00 $-2,047,329.91

$ 521,559.54 $ 460,610.31 $ -60,949.23

90,259.09

86,990.26

-3,268.83

349,345.99

331,093.98

-18,252.01

496,006.15 478,222.45 -17,783.70

273,264.23

243,193.00

-30,071.23

526,790.11 2,241,429.00 1,714,638.89

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

$ 2,257,225.11 $3,841,539.00$ 1,584,313.89

$ -391,298.02 $ 71,718.00$ -463,016.02

$ -125,808.00 $ 125,808.00

$ -391,298.02 $ -54,090.00 $ -337,208.02

802,849.84

907,728.24 -104,878.40

3,854.93

-3,854.93

FUND BALANCE JUNE 30, 1994

$ 411,551.82 $ 857,493.17 $ -445,941.35
============= ============= =============

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

SEOUOYAH REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Sequoyah Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception ofthe departure from generally accepted accounting principles disclosed in 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 of the 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 Sequoyah Regional Library is determined to be a joint venture.
The Library Board consists of eight members; four members appointed by Cherokee County Library Board, two members appointed by Gilmer County Library Board, and, two members appointed by Pickens County Library Board. The Board is without authority to determine the amount ofits funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level ofoversight responsibility for the Library's operations.
The Sequoyah Regional Library is located in Canton, Georgia, and serves Cherokee, Gilmer and Pickens Counties.
FUND ACCOUNTING
The Library uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set ofaccounts. An account group isa 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.

- 6-

SEOUOYAH REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting priciples, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal, 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 major capital facilities.
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.
- 7-

SEQUOYAH REGIONAL LIBRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recogniz.ed 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 ofthe 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
Sequoyah 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 ofthe 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 ofthe 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 CASH DEPOSITS Cash consists of deposits (including 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.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed, allotted funds from participating local governments, 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 general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

- 8-

SEOUOYAH REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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.
For fiscal year 1994, the Library began recording the dollar value of accumulated compensated absences at June 30 in the General Long-Term Debt Account Group.
INTERFIJND TRANSACTIONS
The Library has the following type ofinterfund transaction:
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 ofthis data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section45-8-12 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,

- 9-

SEOUOYAH REGIONAL LIBRARY

EXIilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

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

(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State ofGeorgia,

(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $529,455.02. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

The Library's deposits are classified by risk category at June 30, 1994, as follows: Risk Categmy 1 2 3 Total

Bank Balance $ 220,876.84
0.00 308,578.18 $ 529,455.02

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SEOUOYAH REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 3: GENERAL LONG-TERM DEBT

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

Balance July 1, 1993
Retroactive Restatement ofPrior Year Balances
Balance July 1, 1993 Restated
Additions Leave Earned and Utilized (Net)
Balance June 30, 1994

Compensated Absences

$

0.00

11,561.77

$ 11,561.77

26,281.82
$ 37,843.59

Note 4: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of$9,639.67 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. Lottery funds in the amount of$9,630.13 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year pecause these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Media Center and Library Equipment

$====9-,6..,,,3==9=".6==7

The amounts described in this note are not reflected in the general purpose financial statements.

Note 5: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 6: ACCUMULATED EMPLOYEES LEAVE

Full-time employees with up to ten years service shall accrue vacation leave of 1 1/4 days per month for each month worked. The Library Director and full-time employees with ten (10) years' service with the Sequoyah Regional Library will be granted twenty (20) days annually. In case oftermination of employment, payment, at the current rate of pay, shall be made up to the maximum accumulation of twenty (20) days for unused accrued annual vacation. See Note 1- Compensated Absences

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SEOUOYAH REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. 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 ofdisability or death.
Members become fully vested after ten years 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 by TRS for the year ended June 30, 1994, was $776,010.06; total payroll was $835,290.64.
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 ofTrustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $138,206.92, ofwhich $91,646.15 was made by the Library and $46,560.77 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.

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SEOUOYAH REGIONAL LIBRARY

EXIIlBIT D 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of~ 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 ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as ofJune 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

$ 1,090,292,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 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$91,646.15 was actuarially determined and represented 0.0175% of total 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 8: SURETY BONDS

The Library Director, Mrs. Joan H. Adam, is bonded in the amount of $150,000.00 with the All America Insurance Company, Vanwerk, Ohio, their Bond No. 7835163, on which premium was paid through March 29, 1995.

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SEQUOYAH REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 1994

EXHIBIT "E"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES
AND
CONSTRUCTION ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 69,612.13 $ 1,169.87

0.00 $

69,612.13 1,169.87

$ 70,782.00$

o.oo $ 70,782.00

$ 70,782.00

$ 70,782.00

$

0.00 $

0.00 $

0.00

$ 70,782.00 $

0.00 $ 70,782.00

============= ================ =============

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

SEQUOYAH REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "F"

REVENUES
State Funds Federal Funds
Total Revenues
EXPENDITURES
Current Program Serv;ces Techn;cal Services Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
FUND BALANCE JUNE 30

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 95,369.87

$ 95,369.87

$

22,000.00

22,000.00

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

$ 95,369.87 $

22,000.00 $ 117,369.87

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

$

7,870.00

$

7,870.00

3,163.00

3,163.00

83,398.90 $

22,000.00

105,398.90

937.97

937.97

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

$ 95,369.87 $

22,000.00 $ 117,369.87

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

$

0.00 $

0.00 $

0.00

0.00

0.00

0.00

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

$

0.00 $

0.00 $

0.00

============= ================ =============

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

SEQUOYAH REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30, 1994

EXHIBIT "G"

ASSETS
Cash and Cash Equivalents
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

6282-92-SB-007 6282-94S-SB-003

TOTAL

$

28,129.94$

28,043.56$ 56,173.50

$

28,129.94 $

0.00

28,043.56$ 0.00

56,173.50 0.00

$

28,129.94 $

28,043.56$ 56,173.50

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

SEQUOYAH REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

REVENUES
State Funds Local and Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Building and Building Improvements Equipment
Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

6282-92-SB-007 6282-94S-SB-003

TOTAL

$

77,647.00

$ 77,647.00

5,264.23 $

54,479.61

59,743.84

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

$

82,911.23 $

54,479.61 $ 137,390.84

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

$ 356,379.15$ 143,974.91
$ 500,354.06$
$ -417,442.83 $ 445,572.77

26,436.05$ 382,815.20 143,974.91
26,436.05$ 526,790.11
28,043.56$ -389,399.27 0.00 445,572.77

$

28,129.94 $

28,043.56 $ 56,173.50

=============== ================ =============

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

SEQUOYAH REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1 1994
INTEREST BEARING ACCOUNTS
Bank of Canton, Canton, Georgia
N.O.W. Account (2.90%)
Bank of Ellijay, Ellijay, Georgia
N.O.W. Account (2.80%)
Bank of North Georgia, Canton, Georgia
Convnercial Checking Account (Variable)
Citizens Bank, Ball Ground, Georgia
Convnercial Checking Account (Variable)
Jasper Banking Company, Jasper, Georgia
Commercial Checking Account (Variable)

SCHEDULE "l"
$ 390,765.25 8,580.83
31,578.71 28,129.94 47,435.75 $ 506,490.48

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

SEQUOYAH REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "2"

Canton, City of Library Membership Fees
Education, Georgia Department of Lottery Program - Media Center and Library Equipment Title Ill - Georgia On-Line Database Reimbursement
Gilmer County Board of Education Library Membership Fees
Pickens County Library Reimbursement for Payroll
Woodstock, City of Library Membership Fees
Various Sources Fines Photocopies

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$

500.00

$

500.00

$ 259.74

1,169.87

1,169.87 259.74

50.00

50.00

5,151.61

5,151.61

1,250.00

1,250.00

632.30

632.30

166.95

166.95

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

$ 8,010.60 $ 1,169.87 $ 9,180.47

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

SEQUOYAH REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

TOTAL

GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Media Center and Library Equipment

$ 224,483.30 86,554.00 81,954.00
$

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

95,369.87 $

$ 224,483.30 86,554.00 81,954.00
95,369.87

77,647.00

77,647.00

$ 392,991.30 $ 95,369.87 $ 77,647.00$ 566,008.17

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

SEQUOYAH REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services Title III - Georgia On-Line Database Reimbursement $

$ 516.02

22,000.00$

22,000.00 516.02

$

516.02 $ 22,000.00$ 22,516.02

============= ============= =============

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

SEQUOYAH REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1994

SCHEDULE "5"

LOCAL SOURCES Boards of Education Cherokee County Gilmer County Pickens County
City Governments Canton East Ellijay Elli jay Jasper Woodstock
County Governments Boards of Commissioners Cherokee Gilmer Pickens
OTHER SOURCES Book Sales Donations Fines/Fees/Dues Interest Earned Lost and Damaged Books Photocopy Sales Other

GOVERNMENTAL FUND TYPES

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

CAPITAL

GENERAL

PROJECTS

FUND

FUND

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

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

$ 125,000.00 5,600.00 18,000.00
6,000.00 1,000.00 3,000.00
900.00 15,000.00

$ 125,000.00 5,600.00
18,000.00
6,000.00 1,000.00 3,000.00
900.00 15,000.00

780,880.92 71,160.42 38,565.78 $

54,143.00

780,880.92 71,160.42
92,708.78

4,691.63 51,463.29 53,552.57 12,324.65 5,349.62
21,151.06 4,019.12
-------------

5,600.84
-------------

4,691.63 51,463.29 53,552.57
17,925.49 5,349.62 21,151.06 4,019.12
-------------

$1,217,659.06 $ 59,743.84 $1,277,402.90
============= ============= -------==--=-

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

SEQUOYAH 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 Supplies Library Books and Materials Utilities Communication and Insurance Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$ 835,290.64 232,634.74 3,259.50 1,474.97$ 145,975.07 235,659.98
80,529.02 59,104.61 8,706.11

$
3,163.00 18,032.00 7,870.00
937.97

835,290.64 232,634.74
3,259.50 4,637.97 145,975.07 253,691.98 7,870.00 80,529.02 60,042.58 8,706.11

10,430.49

87,366.90

97,797.39

$1,613,065.13 $ 117,369.87 $1,730,435.00

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

SEQUOYAH REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1994
BOARD MEMBER ADDRESS
Mr. Jack Whitmire, Chairman(*) P.O. Box 786 Canton, Georgia 30114 Mr. Dan Westmoreland, Vice-Chairman(*) 26 Logan Street Ellijay, Georgia 30540 Mr. Lawton Baggs(*) Route 3, Box 138 Jasper, Georgia 31043 Mrs. Rachel Chandler(*) P.O. Box 395 Woodstock, Georgia 30188 Mrs. Ruth Hamrick(*) 62 River Street Ellijay, Georgia 30540 Mr. Ralph Hitt 160 Cove Road Jasper, Georgia 30143 Mr. Glenn Hubbard(*) P.O. Box 193 Woodstock, Georgia 30188 Mr. Joel Langford(*) P.O. Box 158 Waleska, Georgia 30183 Mrs. Hettie Young(*) 290 Indian Forest Road Jasper, Georgia 30143
(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements.
- 24 - .

SCHEDULE "7"

SEQUOYAH REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30 1 1994

SCHEDULE 811 11

-PE-R-S-O-N--N-E-L
Adam, Austin, Biehl, Blackwell, Bowman, Bricker, Brooks, Bryan, Burleson, Clark, Clayton, Cox, Crawford, Crook, Cunningham, Erickson, Fassett, Fer~uson, Gabe, Gailey, Garland, Gazaway, Gingles, Hammond, Hawkins, Hitt, Holliman, Hudnall, Hughes, Ingle, Jackson, Johnson, Johnson, Jones, Jones, Kelley, Kicker, Kosins, Lathem, Lindsey, Lively, MMi er1eer,r, Miller, Muq1hy, Nations, O'Hare, 01 iver, Pankey, Phillipone, Poor, Richardson, Roach, Roach, Roberts, Rooks, SSmima fhsoenr,s, Smith, SSfaannocsd, Stephens, Summers, Tanner, Van Note, Warren, Warren, Watkins, Watson, White, Zuger,

Joan H. Dana C. Brenda E. CPae~~yy WA.. Melissa Debra B. Anne Helen D. Barbara Shirley J. Amy Lois T. Shelley L. Wilma J. Linda G. Margaret A. Donna Anita R. Janice L. Glenda S. Vicki M. Martha Gai 1 K. Lorna P. Carol p. Sherry J. Katherine R. Juanita S. Emma L. Heather L. Kenneth Mary Ellen Natalie B. Rosa Mae B. CNaatnhel teR. B. Cheryl S. Margaret S. Susan W. Karen Elaine J. David A. Miriam E. Mariene E. Mis y R. Judith P. James W. Shandel Suzanne Marie H. Maurine L. Mary Ann Mary Ann Lawana H. Diana B. Jody Sanora R. Patricia Mary B. Janice M. Sue M. Anita D. Carmen M. AMnanreil ~n. Karen L. Kelly C. Wanda D. Susan E. Nancy M.

-PO--S-IT-I-O-N-
Director Children's Assistant Bookmobile Assistant Reference Assistant Circulation Assistant Page Technical Processes Assistant Children's Assistant Children's Assistant Children's Assistant Branch Manager RPeaeerence Coordinator Page CPah9ieldren's Assistant Circulation Assistant Com~uter Coordinator Tee nical Processes Assistant Branch Manager Reference Assistant Circulation Manager Page Circulation Assistant Children's Coordinator Page Circulation Assistant Page Branch Manager Reference Assistant Page Custodian Reference Librarian Programmer-Public Relations Page Circulation Manager Children's Librarian Reference Coordinator Assistant Director Reference Coordinator Pa9e Children's Coordinator Reference Coordinator Page Circulation Manager Page Page Circulation Manager Page Page Circulation Manager Pa9e Children's Coordinator Children's Assistant Page Circulation Manager Circulation Assistant Page Bookmobile Manager Receptionist Branch Manager Bookkeeper Librarian-Mana9er Children's Assistant RPeaeerence Assistant Circulation Manager Page Page Technical Processes Librarian Page

---SA--L-A-R-I-E-S ---

TRAVEL
-------------

$ 46,101.24 $

1,351.28

4,540.50

32.50

10,400.00

10,727.62

9,427.56

400.00

14,074.74

2,080.00

15.12

10,976.00

103.32

1,237.50

18,459.99

921.25

15,009.35

4,314.75

1,337.50

12,133.30

41.11

13,520.04

19,413.32

320.27

14,559.96

18,720.00

114. 44

14,559.96

89.78

15,470.01

4,965.00

13,520.04

10,536.14

3,020.00

12,496.00

3,270.00

20,799.96

114. 44

15,340.02

7.77

4,165.00

19,760.04

38,306.80

114.45

22,360.02

1,792.50

14,950.02

38,306.80

155.45

14,559.96

33,279.96

365.42

14,719.98

25.20

3,233.50

14,299.98

26.00

8,972.81

3,062.50

11,677.98

210.00

3,413.50

14,559.96

1,731.50

387.50

15,080.04

662.50

9,013.36

1,126.67

1,605.00

1,500.33

7,301.50

1,733.75

14,429.97

13,767.55

17,510.00

11.50

24,960.00

6.00

34,405.20

134.20

10,053.32

26.00

1,062.50

13,779.96

14,040.00

1,766.88

3,440.75

38,306.80

205.25

-----3--,6-6--2-.5--0 -------------

$====8=3=5=,=2=9=0=.6==4

$

3,259.50
=====:::;=======

See notes to the general purpose financial statements. - 25 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SEOUOYAH REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Finding Resolved Audit Control Number 6282-93..;02
The audit report for the year ended June 30, 1993, disclosed that the Library did not have its bank balances fully collateraliz.ed as required by the Official Code ofGeorgia Annotated Section 45-8-12. For the year under review, audit tests of the Library's bank balances indicated that the Library complied with the State laws governing collateralization of cash deposits.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6282-93-01
The audit report for the year ended June 30, 1993, noted that the management of the Sequoyah 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, no action was taken by the Library to establish this account group. This condition results in the general purpose financial statements ofthe Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to implement and maintain a General Fixed Assets Account Group for inclusion in the accounting records. Subsidiary records should be established for land, buildings, equipment and inexhaustible collections and books owned by the Library. Detailed records should be maintained of all additions and deletions for each class of fixed assets that comprise this group.

SECTION ID PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SEOUOYAH REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6282-94-01
Libraries do not have established procedures to follow to maintain general fixed assets. Quote from memo 93-1, dated January 12, 1993, to Library Directors from DPLS reference general fixed assets:
"An inquiry was made to the GASB in an effort to obtain further guidance related to this topic. Representatives from the GASB indicated that this issue is presently under deliberation and that guidance will be forthcoming. For this reason, I would recommend to all Libraries currently considering including collections in a General Fixed Assets Account Group to postpone this decision until this new guidance is available."
Auditor's Note: The above referenced quote concerns only the topic of including "Inexhaustible collections and books" within the General Fixed Assets Account Group. Generally accepted accounting principles and the Governmental Accounting Standards Board clearly require the reporting of a General Fixed Assets Account Group which would include but may not be limited to all land, buildings and equipment owned by the Library.