South Georgia Regional Library, Valdosta, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

.- - t

. \

'! ....,... .,

. -.. t 11

I ~

i ',~ .., : ,

1

. ;

. _,

. , .

.;-.--I'"-..,-,-------,-> -----,- -. --\.. -' ---",'"_/"r"!."'' --.JI-----------. ----------"""'!----.- ..

,. .

., . f _.. ~. J '

'(,

I ,

,I '

1 "

,,

. ..,_'

....

..... '

I . . . .1,,

.I

i--

" I t ' .-

J.

' '

'
'

' . ,'- -..-,l I
!

'. ...

I

,",

, I I'

.._A,

..., I

.: ,.

'' ' l, . ''

.,-' -

. i'

r', I / ~J ~

~ l' '~

...

~- ,.. ( }
. ( _;
: , .. ,,.,,,~ - .,

. ',

...

. ,,.,.

,.. L ~ .
__.....
.' ,:.'.,.....
:

'J' l
_, -: "

..-: -...

.... ,

~ - ' ,,

,

,'-

, ,:,



I\

'

.,1;,~,: ~./... ,. :t ...... I : I \ :,: ''.':

~- .i:; I

: (~:

.) ' 'J - ,' ,' : r' ..

,.:' : ,. r

. >.. 'SOUTH .GEORGIA REGIONAL LIBRARY:-, -._:

. , ''/ :, ,' VALDOSTA, .GEOR'GIA:, : ' .',., . ',..-.-::

.. ,

~ ..

I

~ '

I

.1'

I

'

l , ~ ,

,I I

1 J: ...

' ,

, '

-,~ 1-.-. _ ., -:- : . ';: _:, ..,. _ >1{E~o~r.\_o_tf~uorr~. :.'l,--- ,

,. ,

:: ::- -.:: .'. ..-- '..... OF.THE FINANCIAL STA-TEMENTS -, ., . ._.

,," --L / ('-'. "FOR:THE-FISCAL.'YEAR ENDED')UNE 36)200{, ..

' ,: I . J

,

, c

l'

-'

-

,

'

t

, ,.

, ',

,-1

.....,.

....

.. .:',

'

, '

,

) ' ~

I

,, . ~ ,_', I"::.,

, ':
,,

. -

'.

' (

-:- ... '

',
,

'

~.

- .. ,..,, ' I

\ \ ~

' I

I

~'\

' .

...': . 1, ' \ ..... ~

. . ,:,,(

.
.

,,

~~

".

':''
I:
,..,'

'1.

, '.

.. '

."'

.

7 -:,.
,Rus~ell

W,.-

' . Hlnt~'n

_,: st.ate A(J~lt~r-':i

J'



.

~l'-. .:~

"\,.

I /

...: . ...

I I''

.,,,. ..... . '

:.
~ : J.

')

...

, ._... '

~ 1, ,'I

,. ,. -'- .. ,

,, ,',,'

.,',

, .....

.. '' .

' ' .. ,

,

, I ' .'

,, . ,

r

SOUTII 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

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

6

ADDITTONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

14

2

FEDERAL

15

3

LOCAL

16

4 SCHEDULE OF SALARIES AND TRAVEL

17

SECTIONil FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTIONI . FINANCIAL

w. \ISSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S. W., Suite 214 Atlanta, Georgia 30334-8400
June 24, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents ofthe 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-pwpose financial statements of the South Georgia Regional Library, as ofand for the year ended June 30, 2001, as listed in the table ofcontents. These general-purpose financial statements are the responsibility ofthe South Georgia Regional Library's management. Our responsibility is to express an opinion on these general-pwpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-pwpose 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 ofthe 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.
2001ARL-42

The aggregate effects on the general-purpose financial statements ofthis variance or omission have not been determined, but are believed to be material.
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, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
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 4), 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 ofthe general-purpose financial statements and in our opinion is fairly stated, 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 ofGeorgia Annotated Section 506-24.
Respectfully submitted,
~~~~ sell W. Hinton State Auditor
RWH:as 2001ARL-42

SOUTH GEORGIA REGIONAL LIBRARY

SOUTH GEORGIA REGIONAL LIBRARY
COMBINED BALANCE SHEET
ALL FUND TYPES
JUNE 30, 2001

EXHIBIT"A"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$ 153,998.32 $

10,12484 $

164,123 16 $

120,736 43

16,968.97

16,968.97

20,915 20

5 044 80

Total Assets

$ 170,967.29 $

10,124.84 $

181,092 13 $===1=46==696==4=3

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Deferred Revenue

$

143.07

$

Total Liabilities

$

143 07 $

FUND EQUITY

Fund Balances Reserved For Technology Unreserved Undes1gnated

$ 170,824 22 $

Total Fund Equity

$ 170,824 22 $

$ 10,124.84 10,124.84 $
0 00 $ 0.00 $

143.07 10 124 84 10,267.91
$ 170,824 22 170,824.22 $

15,494.28 131,202.15 146,69643

Total Llabihlles and Fund Equity

$ 170,967.29 $

10,124.84 $

181,092 13 $ =,,_a=1=46=6-9-=6=4=3

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, 2001

EXHIBIT "B"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

~Memorandum On~} YEAR ENDED

JUNE 30, 2001

JUNE 301 2000

$ 473,583 01

$

$ 11,525 16

815,333.80

41,018.08

$ 1,329,934.89 $ 11,525 16 $

473,583.01 $ 11,52516
815,333.80 41,018 08
1,341,460 05 $

447,006.62 35,767.84
705,783 68 110,822.90
1,299,381.04

$ 183,492.00 $ 1,058,496 44 63,818.66

4,659.97 $ 6,865.19

$ 1,305,807 10 $ 11,52516 $

$

24,127.79 $

0.00 $

146,696 43

0 00

188,151.97 $ 1,065,361.63
63,818.66
1,317,332.26 $ 24,127.79 $ 146,696.43

154,960 46 929,753.08 95,70644 34 797.84
1,215,217.82
84,163 22
62,533 21

FUND BALANCE JUNE 30

$ 170,824.22 $

0.00 $

170,824 22 $-===1-46=,6=9=6-4.3..

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

SOUTH GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local Funds Other Funds
Total Revenues
EXPENDITURES
Current Public Services Support Services Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 2000

GENERAL FUND

BUDGET

ACTUAL

$ 473,583.21 $ 473,583.01

815,335.00 29,350.00

815,333 BO 41,018.08

$ 1,318,268.21 $ 1,329,934 89

$ 179,333.00 $ 183,492.00

1,099,930 38

1,058,496.44

55,650.00

63,81866

$ 1,334,913.38 $ 1,305,807.10

$ -16,645.17 $

24,127 79

147,285.77

146,69643

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

0.00 $ 11,52516

$

0 00 $ 11,525.16

$

000 $ 4,659.97

6,86519

$

0.00 $ 11,52516

$

0.00 $

000

000

0 00

FUND BALANCE JUNE 30, 2001

$ 130,640 60 $ 170,824.22

$

ooo s-==-====o=.o=o

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

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 ofGeorgia. With the exception ofthe 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 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 ofeach participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest levef 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 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 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.
General Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time ofpurchase. 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 ofassets acquired by governmental fund types.

-6-

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ruNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general-purpose financial statements account for all State, Federal, 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. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all 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 that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists ofproceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
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 ofthese 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 ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the 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. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
- 7-

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthis 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 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
COMPOSmON OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSmON OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone 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,

-8-

SOUTII GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(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.
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 ofoperations 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 ofmoney 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 ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

-9-

----------

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS
Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $215,654.41. The amounts of the total bank balances are classified into three categories of credit risk:

- 10 -

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

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, 2001, as follows:

Risk Category

Bank Balance

1

$ 172,137.26

2

0.00

3

43,517.15

Total

$ 215,654.41

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.

The Library participates in the Association County Commissioners of Georgia Interlocal 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 ofcertain 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.

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

- 11 -

SOUTH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30,2001

Note 3: RISK MANAGEMENT

2000 2001

Beginning of Year Liability

Claims and Changes in Esnmates

$

0.00 $

0.00 $

$

0.00 $

1,712.00 $

Claims Paid

End ofYear Liability

0.00 $

0.00

1,712.00 $

0.00

The Library participates in the Association County Commissioners ofGeorgia-SelfInsured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with County Reinsurance Limited 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

$ 500,000.00 $ 500,000.00 $ 50,000.00

Note 4: CONTINGENT LIABILITIES

Amounts received 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 5: 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.

- 12 -

SOlITH GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees.in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 69,076.88 $ 58,029.88 $ 59,047.72

t>

- 13 -

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salanes Travel Library Materials Talking Books Center Maintenance and Operations

GOVERNMENTAL FUND TYPE GENERAL FUND

$

286,088.07

3,000.00

63,300.40

66,408.00

54 786.54

$ = = =....4_7_3=5..,8...,3.=01=

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

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2001
AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program

SCHEDULE 2
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ====1=1==,5=2=5.=16=

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

------------------------ -----
SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30. 2001
LOCAL SOURCES Boards of Education Echols County Lanier County Lowndes County City Government Lakeland County Governments Boards of Commissioners Echols Lanier Lowndes

SCHEDULE N3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

3,000.00

11,880.00

5,000.00

10,000.00

14,575.00 9,878.76
761,000.04

$-=====s....1_s,_,3_,3.3...=so,.,.

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

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

NAME
Altobello, Belflower, Black, Bradford, Breidenstein, Brinson, Browning, Campiglia, Carter, Castor, Copeland, Cressey, Culpepper, Deas, Ellenberg, Elliott, Frei, Gaines, Golden, Gollihar, Hall, Hatcher, Hudson, Jernigan, Johnson, Johnston, Love, McKenzie, Moran, Morrison, Newsom, Peeples, Peters, Poirier, Powell, Prout, Register, Revell, Roberson, Roberts, Rodgers, Sanders, Seaman, Sedgwick, Studstill, Taylor, Thompson, Tudor,

Deborah John Karen L. Betty B. Janice L. Erline Candace L. Paul Deborah Margaret B. Betty Debra Jackie R. Angela M. Sharolyn C. Sara Robert A. Elizabeth J. Johanna Judith T. Melinda R. Carmen A. Sue B. Diane B. Nancy P. Trisha A. Phyllis Sharon C. Corrie Dorothy Liza David H. Beverly S. Pam A. Charles A. Theresa Janet L. Tomika R. Todd Linda L. M. Britton .Beverly M. Gladys June H. HildaN. Geneva Natascha N. WilliamJ. IV

TITLE CATEGORY
Library Aide Technical Services Branch Manager Library Aide Library Aide Circulation Supervisor Administrative Assistant Library Aide Technical Services Branch Manager Library Aide Library Aide Branch Manager Library Aide Administrative Assistant Extension Manager Janitor Library Aide Library Aide Business Manager Library Aide Public Relations Library Aide LBPH Senior Clerk Library Aide Library Aide Assistant Director Reference Librarian Library Aide Library Aide Director Systems Administrator LBPH Librarian Library Aide Library Aide Administrative Assistant Branch Manager Library Aide Technical Services Library Aide Library Aide Branch Manager Children's Librarian Bookkeeper Library Aide Library Aide Library Aide Library Aide
-17-

SALARIES

TRAVEL

$

6,857.55 $

20,092.80

1,708.86

17,446.80

967.40

20,092.80

8,807.73

731.90

18,321.36

13,957.37

7,904.04

10,619.58

12,480.00

3,993.50

936.71

18,033.60

7,470.05

10,382.31

761.60

18,803 04

5,485.20

4,340.35

1,301.13

21,132 84

3,270.78

2,791.85

56,114.01

41,574.96

1,346.33

7,155.05

67,564.40

23,358.36

54,992.80

5,040.70

612.50

1,433.47

21,132.84

63.00

12,901.20

5,737.20

16,562.88

21,652.80

54,992.80

697.12

4,678.38

9,224.76

6,924.75

789.25

8.96 78.29 185.73
105.95 3.75
37.24 269.33 214.92
39.76 82.66 15.00 780.18 418.47 40.84
130.12 9.52
2,504.69 176.12
11.48
178.92 1,240.08
15.12

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

Vigerstol, White,

Patricia A. Joys.

TITLE CATEGORY
Technical Services Administrative Assistant

SALARIES

TRAVEL

$

14,681.40 $

3,088.80

1,193.40 39.20

Totals per Report

$ 671,010.91 $=-==7=7=79=.7=3=

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

SECTION Il - FINDINGS AND QUESTIONED COSTS

SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 6922-93-01
The audit report for the year ended June 30, 2000, noted that the management ofthe 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 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 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.
CASH AND CASH EQUNALENTS Inadequate Accounting Procedures Finding Control Number: 6922-99-01
The audit report for the year ended June 30, 2000 disclosed that the Library employed accounting procedures that were insufficient to provide for adequate internal control over the bank reconciliation process. In the year under review, the monthly bank statements for the general operating account again were not reconciled to the General Ledger. This deficiency was a result of management's failure to adequately review bank reconciliations. The Library should establish internal controls to ensure that monthly bank statements are reconciled with the accounting records.
GENERAL LEDGER Lack of Documentation for Journal Entries Finding Control Number: 6922-99-02
The audit report for the year ended June 30, 2000, disclosed the Library's accounting procedures were insufficient to provide for adequate internal control over the journal entry process. In the year under review, this deficiency continued to exist. The following internal control weaknesses were noted:
- 1-

- --------- -------------------
SOUTH GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
PRIOR YEAR/CURRENT YEAR GENERAL LEDGER Lack of Documentation for Journal Entries Finding Control Number: 6922-99-02
(1) The Master Journal Entry Book provided contained inconsistencies with actual entries to the Library's General Ledger. These inconsistencies included some account numbers on the journal entry form differed from the account numbers posted in the General Ledger, some approved journal entry forms contained in the journal entry book were never posted in the General Ledger, and some unapproved journal entries posted in the General Ledger were never included in the Master Journal Entry Book.
(2) Inappropriate journal entries were approved and posted in the General Ledger. These conditions were a result ofmanagement's failure to properly review journal entries before they were posted in the General Ledger. The Library should implement procedures to ensure that proper review is retained for all journal entries, and that all journal entries contain adequate documentation and approval prior to posting in the Library's General Ledger.
-2-