Audit report, South Georgia Regional Library, Valdosta, Georgia, year ended June 30, 1996

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AUDIT REPORT SOUTH GEORGIA REGIONAL LIBRARY
VALDOSTA, GEORGIA YEAR ENDED JUNE 30, 1996

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET
ATLANTA, GEORGIA 30334-8400

SOUTH GEORGIA 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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

COMBINING BALANCE SHEET

12

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

13

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

14

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

15

SCHEDULES

1 CASH AND CASH EQUIVALENTS

16

2 ACCOUNTS RECEIVABLE

17

SCHEDULE OF REVENUE

3

STATE

18

4

FEDERAL

19

5

OTHER

20

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

21

7

LOTTERY PROGRAM

22

8 MEMBERSHIP AND TRAVEL OF LIBRARY BOARD

23

9 SCHEDULE OF SALARIES AND TRAVEL

24

SOUTH GEORGIA REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 28, 1997

Honorable ZeIl MiIler, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members of the South Georgia 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 South Georgia Regional Library, as of and for the year ended June 30, 1996, 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 weIl 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 coIlections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material.

96ARL-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 po~ition of the South Georgia Regional Library as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe South Georgia Regional Library taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 9), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the South Georgia Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the 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 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.

CLV:cm 96ARL-42

Claude L. Vickers State Auditor

SOUTH GEORGIA REGIONAL LIBRARY - 1-

SOUTH GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30 1996

ASSETS Cash and Cash Equivalents Accounts Receivable

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS (Memorandum Only) JUNE 30,1996 JUNE 30,1995

$ 59,717.48 $

2,609.00 $

0.00 $

62,326.48 $

82,309.27

8,045.64

8,045.64

4,592.10

Total Assets

$ 67,763.12 $

2,609.00 $

0.00 $

70,372.12 $

86,901.37

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balance Payable Contracts Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

175.42

380.80

$

$

556.22 $

$
$ 67,206.90 $ 67,206.90 $

50.00 50.00
2,559.00 0.00 $
2,559.00 $

$

175.42 $

8,537.16

380.80

50.00

1,100.00

7,819.78

$

606.22 $

17,456.94

$
0.00 0.00 $

2,559.00 $
67,206.90
69,765.90 $

21,648.17 47,796.26 69,444.43

Total Liabilities and Fund Equity

$ 67,763.12 $

2,609.00 $

0.00 $

70,372.12 $

86,901.37

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

SOUTH GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1996

EXHIBITMBM

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1996 JUNE 30,1995

REVENUES

State Funds Federal Funds Other Funds

$ 353,091.50 $ 7,692.25
526,257.n

7,150.00 15,000.00
$

$ 147.86

360,241.50 $ 22.692.25
526,405,63

536,080.76 17,791.75
501,0n.88

Total Revenues

$ 887,041.52 $ 22,150.00 $

147.86 $ 909,339,38 $ 1,054,950.39

EXPENDITURES

Current Program Services Circulation Administration
Capital Outlay

$ 85,751.62 $ 43,128.24
743,142.02

12,598.56
6,992.44 $

$ 17,405.03

98,350,18 $ 43,128.24 750,134.46 17,405.03

91,756.42 80,178.33 671,440.82 1,032,992.19

Total Expenditures

$ 872,021,88 $ 19,591.00 $ 17,405,03 $ 909,017.91 $ 1,856,367.76

Excess of Revenues over (under) Expenditures

$ 15,019.64 $ 2,559.00 $ -17,257.17 $

321.47 $ -801,417,37

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$

-609.00

$

609,00 $

609.00 -609.00

Total Other Financing Sources (Uses)

$

-609.00

$

809,00 $

0.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

14,410.64 $

2,559.00 $ -16,648.17 $

321.47 $ -801,417.37

FUND BALANCE JULY 1

47,796.26

0.00

21,648.17

69,444.43

870,861.80

Residual Equity Transfer

5,000.00

-5,000.00

FUND BALANCE JUNE 30

$ 67,206.90 $ 2,559.00 $

0.00 $

69,765.90 $ _ _;;;,;69;;0"444,;,.;,,;;.,;.4,;;;,3

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

SOUTH GEORGIA REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 353,620.00 $ 5,445.00
506,699.00

353,091.50 7,692.25
526,257.77

Total Revenues

$ 865,764,00 $ 887,041.52

EXPENDITURES

Current Program Services Circulation Administration

$ 125,023.00 $ 749,973.00

85,751.62 43,128,24 743,142.02

Total Expenditures

$ 874,996.00 $ 872,021.88

Excess of Revenues over (under) Expenditures $

-9,232.00 $

15,019.64

OTHER FINANCING (USES)

Other Uses

-609.00

Excess of Revenues over (under) Expenditures

and Other Financing Uses

$

-9,232.00 $

14,410.64

FUND BALANCE JULY 1, 1995

0.00

47,796.26

Residual Equity Transfer

5,000.00

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 10,000.00 $

7,150.00

15,000.00

15,000.00

$ 25,000.00 $ 22,150.00

$ 25,000.00 $ 12,598.56

6,992.44

$ 25,000.00 $ 19,591.00

$

0.00 $

2,559,00

$

0.00 $

2,559.00

0,00

0.00

FUND BALANCE JUNE 30, 1996

$

-9,232.00 $ _ .....6...7..,=. 20=6...9...-,0

$

0,00 $_~2;,:",5_5=9_.0,;,.0

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

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The South Georgia Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-540 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library. 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 governmental 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 South Georgia Regional Library is determined to be a related organization.
The Library Board consists of 15 members; 3 members appointed by Echols County Library Board, 3 members appointed by Lanier County Library Board and 9 members appointed by Lowndes County Library Board. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
While the Lowndes County Library Board appoints a majority of the South Georgia Regional Library's Board, the County Library Board is neither able to impose its will upon the Library nor is there a financial benefit/burden relationship between the two boards as defined by GASB. The South Georgia Regional Library is therefore considered to be a related organization of the Lowndes County Library.
The South Georgia Regional Library is located in Valdosta, Georgia, and serves Echols, Lanier and Lowndes Counties.
FUND ACCOUNTING
The Library uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
- 5-

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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 principles, 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 and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND 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 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.
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.
Governmental funds are accounted for using the modified accrual basis of accounting under which:

- 6-

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Not"e 1: SillvfMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The South Georgia Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and savings 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 of 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.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
- 7-

SOUTH GEORGIA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reimbursements of expenditures 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.

Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the 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 anyone 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 ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

- 8-

SOUTH GEORGIA REGIONAL LIBRARY

EXIDBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest 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, 1996, the bank balances were $107,140.21. The bank balances were entirely covered by Federal depository insurance.
Note 3: RISK MANAGEMENT
The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation.
The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.
The Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to natural disaster in the past three years.
The Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years.
Note 4: CONTINGENT LIABILITIES
Amounts received or receivable principaIly 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.

- 9-

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 5: 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 in accordance
with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or
after 1 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 of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the 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 1 years of service) and compensation up to the time of disability 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, 1996, was $427,481.83; total payroll was $456,346.62.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 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. At June 30, 1996, 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 1996 amounted to $71,859.61, of which $50,485.44 was made by the Library and $21,374.17 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.

- 10 -

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: 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 the Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, 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, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. 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, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30,1996, of $50,485.44 was actuarially determined and represented .0083% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 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 6: SURETY BONDS

The Library Director, Mrs. Liza Newsome, is bonded in the amount of $1,000,000.00 with the Royal Insurance Company, Charlotte, North Carolina, their Bond No. RHP 605141, on which premium is paid through May 5, 1997.

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SOUTH GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 3D, 1996

EXHIBIT"E"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

LOTIERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

TOTALS JUNE 30, 1996 JUNE 30,1995

$

50.00 $

2,559.00 $

2,609.00 $

3,114.88

2.850.00

$

SO.OO $

2.559.00 $

2.609.00 $

5.9...6..4....8...8..

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

Expired Grant Balance Payable

$

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Program

Unreserved

Undesignated

$

Total Fund Equity

$

Total Liabilities and Fund Equity

$

50.00 50.00
$ 0.00 0.00 $
50.00 $

$

4,864.88

$

SO. 00

1,100.00

$

50.00 $

5.964.88

2,559.00 $

2.559.00

0.00

0.00 $

0.00

2,559.00 $

2,559.00 $

0.00

2.559.00 $

2,609.00 $

5...9_6",4;.;;;..8.8..

See notes to the general purpose financial statements.

-12-

SOUTH GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1996

EXHIBITMFM

REVENUES
State Funds Federal Funds
Total Revenues
EXPENDITURES
Current Program Services Circulation Administration
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC
LIBRARY SERVICES

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

7,150.00

$

$

7,150.00 $

$ 15,000.00
15,000.00 $

7,150.00 $ 15,000.00
22,150.00 $

20,535.12 15,000.00
35,535.12

$

7,150.00 $

$

7,150.00 $

$

0.00 $

0.00

5,448.56 $ 6,992.44 12,441.00 $ 2,559.00 $
0.00

12,598.56 $ 6,992.44 19,591.00 $ 2,559.00 $
0.00

15,000.00 17,313.45
3,221.67
35,535.12
0.00
0.00

FUND BALANCE JUNE 30

$

0,00 $

2,559.00 $

2,559.00 $

~O';";'O~O

See notes to the general purpose financial statements,

- 13 -

SOUTH GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1996

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6922-91-SB-014

6922-92-SB-013

TOTALS

JUNE 30,1996

JUNE 30,1995

$

0.00 $

0.00 $

0.00 $

29_,.4.6;,;7..9. 5_.

LIABILITIES AND FUND EQUITY

LIABILITIES

Contracts Payable

FUND EQUITY

Fund Balances

Reserved

For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Liabilities and Fund Equity

$

$

7,819.78

0.00 $ 0.00 $

0.00 $ 0.00 $

--=.0.:..=0.::...0

21,648.17 0.00

0.00 $

29;,0,,,;;46_.7,;;;.9_.5

See notes to the general purpose financial statements.

- 14-

SOUTH GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1996

EXHIBIT"H"

REVENUES State Funds Other Funds Total Revenues
EXPENDITURES Capital Outlay Building and BUilding Improvements
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES
Operating Transfers In Excess of Revenues and Other Financing Sources
over (under) Expenditures FUND BALANCE JULY 1
Residual Equity Transfer

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6922-91-SB-014

6922-92-SB-013

TOTALS

YEAR ENDED

JUNE 30,1996

JUNE 30,1995

$

0.00

$

0.00 $

175,134.00

$

147.86

147.86

14,481.79

$

0.00 $

147.86 $

147.86 $

189,615.79

$

0.00 $

17,405.03 $

17,405.03 $

1,032,992.19

$

0.00 $

-17,257.17 $

-17,257.17 $

-843,376.40

609,00

609.00

$

0.00 $

-16,648.17 $

-16,648.17 $

-843,376.40

5,000.00

16,648.17

21.,648.17

865,024.57

-5,000.00

-5,000.00

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

0.00 $ _ _".,.,:;2,;,011,;;.648,;,;;.;.;.1,;.7

See notes to the general purpose financial statements.

- 15-

SOUTH GEORGIA REGIONAL LIBRARY CASH AND CASH EQUIVALENTS JUNE 30,1996
INTEREST BEARING ACCOUNTS
First Federal Savings and Loan, Valdosta, Georgia
Certificates of Deposit No, 1862-51 (6.30%) No, 2529-51 (6,30%)
First Liberty Bank, Valdosta, Georgia
Commercial Checking Account (2.30%) Certificate of Deposit No. 100464 (6.53%)
First Union National Bank, Valdosta, Georgia
Money Market Account (3.44%)
OTHER
Petty Cash

SCHEDULE "1"
$ 14,964.28 3,000.00
12,814.66 3,427.53
28,020.01 100,00
$ 62,326.48

See notes to the general purpose financial statements.

- 16 -

SOUTH GEORGIA REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1996
City of Lakeland Local Support
Education, Georgia Department of Talking Book Centers
Other Vendor Refund

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

6,580.00

932.00

533.64

$ ====8::!:::,0:::4:=5=.6::::::4

See notes to the general purpose financial statements,

- 17 -

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Talking Book Centers Lottery Program Technology Installation

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

200,726.50

55,526.00

50,926.00

45,913.00

------$

$ 200,726.50 55,526.00 50,926.00 45,913.00

7,150.00

7,150.00

$

353,091.50 $

7,150.00 $ 360,241.50

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

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "4"

AGENCY/FUNDING
SUBGRANTS Education, Georgia Department of Library Services and Construction Act Title I - Public Library Services
Human Resources, Georgia Department of Vocational Rehabilitation Title II - Public Library Construction

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

15,000.00 $ 15,000.00

$ _ _---'-'7,c6:...9;;..;;;2=.2:..;..5

7,692.25

$

7,692.25 $

15,000.00 $ 22,692.25

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

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30,1996

SCHEDULE "5"

LOCAL SOURCES Boards of Education Echols County Lanier County City Governments Hahira Lakeland Valdosta County Governments Boards of Commissioners Echols Lanier Lowndes
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Sales and Services Book Sales Photocopy Sales Other

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

2,125.00

8,998.33

4,494.80 8,580.00 186,018.96

9,000.00 8,140.00 270,200.00

969.00 9,961.78 3,732.22 $
649.93
381.95 11,278.09
1,727.71

$

2,125.00

8,998.33

4,494.80 8,580.00 186,018.96

9,000.00 8,140.00 270,200.00

147.86

969.00 9,961.78 3,880.08
649.93
381.95 11,278.09
1,727.71

$

526,257.77 $===1,;",4=7,;,;.8==6 $ 526,405.63

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

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Travel of Board Members Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 456,346.62
121,354.61 5,727.98 602.80 121.00
34,172.16 19,758.38 85,751.62 $ 100,247.52 32,989.91 2,412.13
3,913.92

$
5,448.56

456,346.62 121,354.61
5,727.98 602.80 121.00
34,172.16 19,758.38 91,200.18 100,247.52 32,989.91 2,412.13 3,913.92

8,623.23

14,142.44

22,765.67

Total Expenditures

$ 872,021.88 $

19,591.00 $ 891,612.88

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

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTIERY PROGRAM YEAR ENDED JUNE 30, 1996
EXPENDITURES Nonoperating Costs Equipment

SCHEDULE '7"
TECHNOLOGY INSTALLATION
$ ====7:1::'1=5~O.;,;,OO;;"

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

BOARD MEMBER ADDRESS
"
Ms. Sally Kurrie, Chairman (*) 909 Moss Way Valdosta, Georgia 31602
Ms. Jeannette Davis, Vice-Chairman (*) Route 1, Box 830 Lake Park, Georgia 31636
Ms. Rose Adams (*) 611 Hodges Street Hahira, Georgia 31632
Ms. Patti Bass (*) P.O. Box 295 Statenville, Georgia 31648
Ms. Beverly Richardson Blake (*) 421 Thornwood Way Valdosta, Georgia 31602
Mr. Jackie Carter (*) P. O. Box 131 Statenville, Georgia 31648
Ms. Wyleen Corbett (*) Route 1 Lakeland, Georgia 31635
Ms. Shirley Corbitt (*) Route 1, Box 153 Lakeland, Georgia 31635
Dr. Craig Dowling (*) 502 West Alden Valdosta, Georgia 31602
Ms. Beulah Hennly (*) 1308 West Park Valdosta, Georgia 31602
Ms. Diane Howard (*) 202 Sunnymeade Valdosta, Georgia 31602
Ms. Mildred Hunter (*) 4557 Highway 84 East Naylor, Georgia 31641
Ms. Debbie Langdale (*) 2106 Old 41 Highway Lake Park, Georgia 31636
Ms. Betty Rogers (*) 619 North Troup Street Valdosta, Georgia 31601
Mr. Collie Williams (*) Route 1, Box 632 A Naylor, Georgia 31641

SOUTH GEORGIA REGIONAl LIBRARY MEMBERSHIP AND TRAVEL OF LIBRARY BOARD
YEAR ENDED JUNE 30 1996

n Denotes Board Members Serving as of June 30, 1996
See notes to the general purpose financial statements.

- 23 -

SCHEDULE '8"

$

121.00

$

12 ..00

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30.1996

SCHEDULE "9"

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SOUTH GEORGIA REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30,1996
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6922-93-01
The audit report for the year ended June 30, 1995, noted that the management of the South Georgia Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Lil?rary did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Note: The South Georgia Regional Library was provided an opportunity to includ,e pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusion in this report.