Audit report, South Georgia Regional Library, Valdosta, Georgia, year ended June 30, 1999

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AUDIT REPORT SOUTH GEORGIA REGIONAL LIBRARY
VALDOSTA,GEORGIA YEAR ENDED JUNE 30, 1999

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

A BALANCE SHEET ALL FUND TYPES
B STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES
C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

2

LOCAL

3 SCHEDULE OF SALARIES AND TRAVEL

SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

2

3

4

~

5

12 13 14

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-R400
July 14, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia
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 accompanying general purpose financial statements of the South Georgia Regional Library, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the South Georgia Regional Library's management. Our responsibility is to express an opinion on these general purpose 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 have not been determined, but are believed to be material.
99ARL-42A

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 referred to above present fairly, in all material respects, the financial position of the South Georgia Regional Library as of June 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the South Georgia Regional Library taken as a whole. The accompanying financial schedules (Schedules 1 through 3), 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. 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 of this report has been filed as a permanent record in the office of the 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,
~~. C&~.~ Russell W. Hinton State Auditor
RWH:gp 99ARL-42A

SOUTII GEORGIA REGIONAL LIBRARY

SOUTH GEORGIA REGIONAL LIBRARY BALANCE SHEET ALL FUND TYPES JUNE 30, 1999

EXHIBIT"A"

ASSETS Cash and Cash Equivalents Investments
Total Assets

GENERAL FUND

TOTALS (Memorandum Only) JUNE 30,1999 JUNE 30,1998

$

52,643.43 $

52,643.43 $

43,355.32

10,245.09

10,245.09

10,245.09

$

62,888.52 $

62,888.52 $ ===53~,6=0=0=.4==1

LIABILITIES AND FUND EQUITY LIABILITIES
Expired Grant Balances Payable FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

$

355.31 $

355.31 $

2,356.00

62,533.21

62,533.21

51,244.41

$

62,888.52 $

62,888.52 $ ===5=3=,6=0..,0.4..,.,1

The notes to the general purpose financial statements are an integral part of this statement.
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SOUTH GEORGIA REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1999

EXHIBIT "B"

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Support Services Maintenance and Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

GENERAL FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$ 423,374.07 $
603,198.40 42,231.94
$ 1,068,804.41 $

423,374.07 $
603,198.40 42,231.94
1,068,804.41 $

513,368.59 20,296.43
576,350.00 36,387.57
1,146,402.59

$

112,648.60 $

914,618.52

30,248.49

$ 1,057,515.61 $

$

11,288.80 $

51,244.41

112,648.60 $ 914,618.52
30,248.49
1,057,515.61 $
11,288.80 $
51,244.41

219,529.96 911,074.86
48,358.37
1,178,963.19
-32,560.60
83,805.01

FUND BALANCE JUNE 30

$

62,533.21 $

62,533.21 $ =====51:f,2=4=4=.4:::i::1

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 FUND
YEAR ENDED JUNE 30, 1999

EXHIBIT"C"

REVENUES State Funds Local Funds Other Funds Total Revenues
EXPENDITURES Current Public Services Support Services Maintenance and Operation Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1.1998
FUND BALANCE JUNE 30, 1999

BUDGET

ACTUAL

$ 423,729.38 $
603,199.00 24,760.00

423.374.07 603.198.40
42.231.94

$ 1,051 ,688.38 $ 1,068.804.41

$ 106,754.00 $
902.914.38 42,020.00

112,648.60 914,618.52
30.248.49

$ 1.051,688.38 $ 1,057,515.61

$

0.00 $

11.288.80

0.00

51,244.41

$

0.00 $ =.....;6~2,=53=3..2..=1

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, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The South Georgia 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. 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 Library Board consists of nine members; one member appointed by Echols County Library Board, one member appointed by Lanier County Library Board and seven members appointed by Lowndes County Library Board. The Library Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal 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.
While the Lowndes County Library Board appoints a majority of the South Georgia Regional Library Board, the Lowndes 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 Governmental Accounting Standards Board. The South Georgia Regional Library is therefore considered to be a related organization of the Lowndes County Library.
FUND ACCOUNTING
The Library uses a fund 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.
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, Local 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. The fund presented in this report is as follows:
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SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPE - used to account for all of the Library's general activities. The Governmental Fund Type includes:
GENERAL FUND - the fund used to account for all financial resources of the Library. These transactions relate to resources obtained and used for services provided by a Library.
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 fmancing 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:
.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 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
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 ofbudget 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 Board of Regents of the University

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SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
System of Georgia 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 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) 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.

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SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Library has the following type of interfund transactions:
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.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee 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. OCGA Section 45-8-11 (b) 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 ofthe 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,

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SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $124,895.92. 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, 1999, as follows:

Risk Category

Bank Balance

1 2 3
Total

$ 109,895.89 15,000.03 0.00
$ 124,895.92

Note 3: 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; natural disaster; and unemployment compensation.

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SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 3: RISK MANAGEMENT

The Library participates in the Association County Commissioners of Georgia Interlock Risk Management Agency, a public entity risk pool organized in 1987 to provide an alternative source for members to acquire property and liability insurance coverage. The Agency's general objectives are to formulate, develop and administer a program of insurance on behalf of the members and to develop a comprehensive loss control program. The Agency reinsures amounts in excess of certain limits to protect itself from large losses. The payment of excess insurance for the Agency varies by line of coverage.

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.

The Library participates in the Association County Commissioners of Georgia-Self Insured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement and administer a program ofworkers' 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 $450,000.00 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

Director Board of Directors All Other Employees

$ 75,000.00 $ 25,000.00 $ 50,000.00

Note 4: 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% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS

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SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 4: RETIREMENT PLANS

Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

100% 100% 100%

$ 59,047.72 $ 58,794.06 $ 54,528.57

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SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1999
AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Talking Books Center Maintenance and Operation
CONTRACT Technical and Adult Education, Georgia Department of Summer Reading Club Kick-Off

SCHEDULE "1"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

256,017.59

5,922.48

58,604.00

47,176.00

54,004.00

1,650.00

$ ====4:=23=,3==:7=4.:.0==7

See notes to the general purpose financial statements.

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SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 1999
LOCAL SOURCES Boards of Education Echols County Lanier County City Governments Hahira Lakeland Valdosta County Governments Boards of Commissioners Echols Lanier Lowndes

SCHEDULE "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

2,500.00

9,880.00

5,500.00 8,500.00 227,909.00

14,575.00 9,879.36
324,455.04

$

603,198.40

See notes to the general purpose financial statements.

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SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30.1999

SCHEDULE "3"

NAME
Anderson, Arnold, Belflower, Bernstein, Bradford, Bradley, Brinson, Brunson, Campiglia, Carter, Carter, Carter, Copeland, Culpepper, Davis, Deas, Dukes, Ellenberg, Elliott, Fox, Furlong, Gollihar, Halstead, Holloway, Horton, Iturralde, Jemigan, Johnson, Johnson, Jones, Love, Merritt, Miller, Naylor, Newsom, Peeples, Peters, Register, Sanders, . Scott, Seaman, SedgWick, Sims, Taylor, Tyson, Vigerstol, Zapf, Zeigler,

Marcia Diane John Sharon Betty Belinda E Erline Kathryn E PaulA Deborah Lotasha V Ora Mae Betty Jackie Vema Angela M Janice Sherolyn Sara Maurice Cynthia Judith Mary Kay Nina Katrina Juan Diane B Benjamin P Nancy Vonda B Phyllis S Whitley Essie Lydia Liza David BeverlyS Janet Beverly Teretha Lee Gladys June H Marie S Geneva Malcolm Patricia G Shannon Elizabeth B

TITLE CATEGORY
Bookkeeper Voc Rehab Student Part Time Clerk 2 Reference Librarian Branch Manager 1 Voc Rehab Student Part Time Clerk 2 Library Aide Temp- Summer Reading Club Clerk 1 Circulation Aide Circulation Aide Library Assistant Branch Manager 1 Voc Rehab Student Part Time Aide Aide Administrative Assistant Clerk 1 Janitor Voc Rehab Student Part Time Aide! Clerk Accounting Aide Aide Voc Rehab Student Part Time Library Assistant LBPH Clerk 2 Temp Help Library Assistant Aide Assistant Director LBPH Assistant Branch Manager Temp Help Director Systems Administrator LBPH Librarian Branch Manager Branch Manager Aide Extension Librarian Bookkeeper Aide Clerk 1 Library Assistant Clerk 1 Clerk 2 Branch Manager

Totals per Report See notes to the general purpose financial statements.

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SALARIES

$

1,211.00

690.10

17,508.00 $

37,260.00

16,308.00

1,606.80

17,472.00

285.39

587.25

16,426.50

507.36

3,144.00

7,620.00

11,437.94

247.20

362.40

5,137.00

19,536.00

15,648.00

7,023.03

772.50

244.62

4,522.52

6,027.34

359.22

321.00

18,396.00

75.96

6,199.92

164.59

50,549.30

4,980.91

18,072.36

119.29

62,682.60

20,328.00

51,144.10

18,396.00

19,536.00

4,002.16

51,144.10

7,045.00

3,155.92

8,112.00

1,780.00

6,728.00

16,080.00

944.31

TRAVEL
204.50 248.06 202.70
11.00 12.50
10.70 55.50
201.99 51.00
494.25
447.25 29.29
318.25 2,760.98
342.13 982.75
76.50 1,562.00
38.25 42.50 491.00

$

561,901.69 $===8..,.5=8=3=.1==0

SECTIONll FINDINGS AND QUESTIONED COSTS

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 1999
P~ORYEMVCURRENTYEAR
Failure to Maintain General Fixed Assets Account Group Finding Control Number: 6922-93-01
The audit report for the year ended June 30, 1998, 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 Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, 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.
CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Finding Control Number: 6922-99-01
The South Georgia Regional Library employed accounting procedures that were insufficient to provide for adequate internal control over the bank reconciliation and voided check processes. Deficiencies were noted as follows:
(1) A review of the bank reconciliation process revealed that the monthly bank statements were not reconciled to the general ledger.
(2) A review ofthe voided check process indicated that numerous checks had been voided in the year under review. Further review ofthe voided check files indicated that the majority of the voided checks had not been marked as void on the face of the check.
These deficiencies were discussed with the library director. The library should implement proper accounting procedures which include the prompt reconciliation ofbank accounts and monthly administrative reviews of all bank reconciliations.
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SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 1999
CURRENT YEAR GENERAL LEDGER Lack of Documentation for Journal Entries Finding Control Number: 6922-99-02 The South Georgia Regional Library was not able to provide its Master Journal Entry Book to the audit staff for the year under review. Additionally, no other supporting evidential matter could be obtained to support journal entries to the general ledger. This situation resulted in all journal entries for the year under review not being supported by adequate documentation, description or proper authorization by management. This condition was a result ofmanagement's failure to retain documentation for alljoumal entries posted to the general ledger accounts. The deficiency in record retention was discussed with the library director. The Library should implement procedures to ensure that adequate documentation is retained for all financial transactions of the Library.
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