Audit report, Southwest Georgia Regional Library, Bainbridge, Georgia, year ended June 30, 1994

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

AUDIT REPORT SOUTHWEST GEORGIA REGIONAL LIBRARY
BAINBRIDGE,GEORGIA YEAR ENDED JUNE 30, 1994

SOUTHWEST GEORGIA REGIONAL LIBRARY -TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

3 ACCOUNTS RECEIVABLE

SCHEDULE OF REVENUE

4

STATE

5

LOCAL AND OTHER

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

7 MEMBERSHIP OF LIBRARY BOARD

8 SCHEDULE OF SALARIES AND TRAVEL

Page
2
3 5 6
14 15
16 17 18 19 20 21
22
23

SOUTHWEST GEORGIA REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

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
January 20, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Southwest Georgia Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Southwest Georgia Regional Library, as ofand for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit
We conducted our audit in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 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.
In our opinion, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Southwest Georgia Regional Library as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Library completed a comprehensive inventory of its general fixed assets for inclusion in the general purpose financial statements. This change is in accordance with generally accepted accounting principles.
94ARL-41

Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Southwest Georgia Regional Library taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 8 which includes the Schedule of Federal Financial Assistance), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements ofthe Southwest 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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:jy 94ARL-41

~~...,.
Claude L. Vickers State Auditor

SOUTHWEST GEORGIA REGIONAL LIBRARY - 1-

SOUTHWEST GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1994

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents Accounts Receivable Amount to be Provided in Future Years
For Payment of ~ensated Absences General Fixed Assets
Land Buildings Equipment Inexhaustible Collections and Books

GOVERNMENTAL FUND TYPES

ACCOUNT GROUPS

--------------------------------- ------------------------
SPECIAL CAPITAL GENERAL GENERAL

TOTAL

GENERAL REVENUE PROJECTS FIXED LONG-TERM (Heroorandum

FUND

FUND

FUND

ASSETS

DEBT

Only)

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

$341,976.49

$115,193.26

$ 457,169.75

$3,572.11

3,572.11

$19,525.09 19,525.09

$ 41,822.00

41,822.00

2,511,006.00

2,511,006.00

733,482.00

733,482.00

2,282,666.00

2,282,666.00

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

Total Assets

$341,976.49$ 3,572.11 $115,193.26 $5,568,976.00$ 19,525.09 $6,049,242.95
====== ======== ========== =========== ======== ============

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Expired Grant Balances Payable Canpensated Absences
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$1,775.11 $ 37,404.54 1,797.00$ 3,335.34
95.53
$ 37,500.07 $ 3,572.11 $ 3,335.34

$ 1,775.11 42,536.88 95.53
$19,525.09 19,525.09
$19,525.09 $ 63,932.61

$5,568,976.00

$304,476.42 $

$111,857.92

0.00

0.00

"$304,476.42 $ 0.00 $111,857.92 $5,568,976.00

$5,568,976.00 111,857.92 304,476.42
$5,985,310.34

Total Liabilities and Fund Equity $341,976.49 $ 3,572.11 $115,193.26 $5,568,976.00$ 19,525.09 $6,049,242.95
======== ========= ========= ============ ========== ===========

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

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

EXHIBIT "B"

REVENUES

SPECIAL

CAPITAL

TOTAL

GENERAL

REVENUE

PROJECTS

(Memorandum

FUND

FUND

FUND

Only)

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

State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES

$ 277,749.51 $ 70,000.00 $ 95,499.00 $ 443,248.51

52,074.11

25,000.00

77,074.11

526,881.65

19,373.31

546,254.96

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

$ 804,631.16 $ 122,074.11 $ 139,872.31 $ 1,066,577.58
------------- ------------- ------------- -------------

Current Program Services Technical Services Circulation Administration Maintenance and Operations
Nonoperating Costs Capital Outlay

$ 291,067.63 $ 24,573.80 63,111.06 177,311.54 57,456.94

45,549.76 8,000.00
68,524.35

$ 336,617.39 32,573.80 63,111.06 245,835.89 57,456.94

$ 558,666.96

558,666.96

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

Total Expenditures

$ 613,520.97 $ 122,074.11 $ 558,666.96 $ 1,294,262.04
------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $ 191,110.19 $

0.00 $ -418,794.65 $ -227,684.46

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

OTHER FINANCING SOURCES (USES)
------------------------------

Operating Transfers In Operating Transfers Out

$ -10,000.00
-------------

$ 10,000.00 $ 10,000.00
-10,000.00
------------- -------------

Total Other Financing Sources (Uses)

$ -10,000.00
-------------

$ 10,000.00 $

0.00

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

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
-------------------

$ 181,110.19 $

0.00 $ -408,794.65 $ -227,684.46

123,366.23

0.00 520,652.57 644,018.80

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

FUND BALANCE JUNE 30

$ 304,476.42 $

0.00 $ 111,857.92 $ 416,334.34

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

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

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SOUTHWEST GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Nonoperating Costs Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1993
ADJUSTMENTS
Prior Year (Net)
FUND BALANCE JUNE 30, 1994

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 443,248.51 $ 376,209.80$ 67,038.71

77,074.11

44,000.00

33,074.11

546,254.96 261,716.91 284,538.05

$1,066,577.58$ 681,926.71 $ 384,650.87

$ 336,617.39 $ 228,149.90 $ -108,467.49

32,573.80

.31,246.00

-1,327.80

63,111.06

52,951.17 -10,159.89

245,835.89 168,371.17 -77,464.72

57,456.94

80,709.47

23,252.53

558,666.96

747,485.61

188,818.65

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

$1,294,262.04$ 1,308,913.32$ 14,651.28

$ -227,684.46 $ -626,986.61 $ 399,302.15

$ 10,000.00 $ 75,981.88 $ -65,981.88

-10,000.00 -75,981.88

65,981.88

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

$

0.00 $

0.00 $

0.00

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

$ -227,684.46 $ -626,986.61 $ 399,302.15 644,018.80 746,013.24 -101,994.44

0.00

5,353.35

-5,353.35

$ 416,334.34$ 124,379.98$ 291,954.36
============= ==--========= =============

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

SOUTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Southwest Georgia Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State ofGeorgia. The financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the Southwest Georgia Regional Library is determined to be a joint venture.
The Library Board consists of twelve members; six members appointed by Decatur County Library Board, three members appointed by Miller County Library Board, and three members appointed by Seminole 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.
The Southwest Georgia Regional Library is located in Bainbridge, Georgia, and serves Decatur, Miller and Seminole Counties.
FUND ACCOUNTING
The Library uses funds and account groups 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. An account group is a financial reporting device designed to provide accountability for certain assets _and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account groups presented in this report are as follows:
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SOUTHWEST GEORGIA REGIONAL LIBRARY

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities of GSFIC Project No. 6432-92-SB-002.
ACCOUNT GROUPS
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes land, buildings, equipment and inexhaustible collections and books.
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences not appropriately accounted for and recorded in other fund types.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
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 of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
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SOUTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Southwest Georgia Regional Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, the final budget is then submitted to the Georgia Department ofEducation, Division ofPublic Library Services, as a part ofthe Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including N.0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of grant reimbursements due from Federal or State grantors for expenditures made but not reimbursed. 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.
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value as ofthe date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets.

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SOUTHWEST GEORGIA REGIONAL LIBRARY

EXfllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon setvices already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than 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 ofinsurance, or by collateral in an amount of not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

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SOUTHWEST GEORGIA REGIONAL LIBRARY

EXIDBIT "DI'

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

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

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

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

(5) Bonds ofany 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,

(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 Banlc, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $506,436.85. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities

held by the Library or by the Library's agent in the Library's name.

Category 2 - Cash collateralized with securities held by the pledging financial institution's trust

department or agent in the Library's name.

_

Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with

securities held by the pledging financial institution, or by its trust department or agent but

not in the Library's name.)

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

Bank Balance
$ 200,000.00 290,647.32 15,789.53
$ 506,436.85

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SOUTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 3: GENERAL FIXED ASSETS

The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year:

Land

Buildings

Equipment

Inexhaustible Collections and books

Total

Balance July 1, 1993

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

Retroactive Restatement ofPrior Year Balances

41,822.00 2.144.236.34

432,368.04

2.147.492.07 4,765,918.45

Balance July 1, 1993 Restated

$ 41,822.00 $2,144,236.34 $ 432,368.04 $ 2,147,492.07 $ 4,765,918.45

Additions

0.00

366,769.66

301.113.96

135,173.93

803.057.SS

Balance June 30, 1994

$ !11822!!!! s2 m !l!lfi!l!l $ :ZJJ !182 !l!l S 2 282 fififi !l!l S SSfi8 22fi !l!l

Note 4: RISK MANAGEMENT

The Library has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based upon experience. During fiscal year 1994, no claims were paid.

Note 5: GENERAL LONG-TERM DEBT

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

Balance July 1, 1993
Additions Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits (*)
Balance June 30, 1994

Compensated Absences
$ 17,252.72
884.85
1,387.52 $ 19,525.09

(*) Includes related fringe benefits applicable to compensated absences at July 1, 1993.

Note 6: CONTINGENT LIABILITIES

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

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SOUTHWEST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: ACCUMULATED EMPLOYEES LEAVE
The Library's full-time nonprofessional staff earn one and one-quarter days of annual leave per month. Professional staff members earn 22 days of annual leave per year. Annual leave may be accumulated and employees may be paid for their unused leave at the current pay rate, up to their maximum accumulation, upon retirement or termination. See Note 1 - Compensated Absences
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time 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, 1994, was $247,963.14; total payroll was $270,362.41.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
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SOUTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: RETIREMENT PLANS

Total contributions made during fiscal year 1994 amounted to $44,162.41, of which $29,284.60 was made by the Library and $14,877.81 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe 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 perfonned 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 of June 30, 1993, was as follows:

Total pension benefit obligation

$ 13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292.000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of $29,284.60 was actuarially determined and represented .0056% oftotal contributions made by all participating employers.

Ten year historical trend infonnation is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 9 : SURETY BONDS

All employees ofthe Library are bonded under a blanket employee policy in the amount of $100,000.00 with the Cincinnati Insurance Company, Cincinnati, Ohio, their Bond No. CPP0448050, on which premium was paid through January 9, 1995.

- 13 -

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

EXHIBIT "E"

ASSETS
Cash and Cash Equivalents Accounts Receivable

LOTTERY PROGRAMS

LIBRARY SERVICES AND CONSTRUCTION ACT

TITLE I PUBLIC LIBRARY SERVICES

TITLE VI LIBRARY LITERACY PROGRAM

TOTAL

$

899.10 $

0.00 $

$
3,572.11

899.10 3,572.11

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undesignated

899.10 $

0.00 $ 3,572.11 $ 4,471.21

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

$

899 .10

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

$

899 .10

$ 2,674.21 $ 2,674.21

897.90

1,797.00

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

$ 3,572.11 $ 4,471.21

0.00 $

0.00

0.00

0.00

Total Liabilities and Fund Equity $

899.10 $

0.00 $ 3,572.11 $ 4,471.21

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

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

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

EXHIBIT "F"

LOTTERY PROGRAMS

LIBRARY SERVICES AND CONSTRUCTION ACT

TITLE I PUBLIC LIBRARY SERVICES

TITLE VI LIBRARY
LITERACY PROGRAM

TOTAL

REVENUES

State Funds Federal Funds
Total Revenues
EXPENDITURES

$ 70,000.00

$ 70,000.00

$ 23,000.00 $ 29,074.11

52,074.11

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

$ 70,000.00 $ 23,000.00 $ 29,074.11 $ 122,074.11
------------- ------------- ------------- -------------

Current Program Services Technical Services Administration
Total Expenditures

$ 1,475.65 $ 15,000.00 $ 29,074.11 $ 45,549.76

B,000.00

8,000.00

68,524.35

68,524.35

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

$ 70,000.00 $ 23,000.00 $ 29,074.11 $ 122,074.11
------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $

0.00 $

0.00 $

0.00 $

0.00

FUND BALANCE JULY 1

0.00

0.00

0.00

0.00

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

0.00 $

0.00

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

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

SOUTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
--------------
Education, U. S. Department of Direct Library Services and Construction Act Title VI - Library Literacy Program 1993 Grant Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services 1992 Carry-Over 1993 Regular 1993 Carry-Over Title II - Public Library Construction Project No. 91-11-90-1 Project No. 91-11-91-2

CFDA NUMBER
84.167
84.034 84.034 84.034 84.154 84.154

FEDERAL FUNDS

RECEIVED IN FEDERAL

AWARDS

PERIOD (NET

REVENUE EXPENDITURES

IN PERIOD OF REFUNDS) IN PERIOD

IN PERIOD

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

$ 34,500.00$ 25,502.00$ 29,074.11 $ 29,074.11

4,000.00 11,000.00 8,000.00

4,000.00 11,000.00 8,000.00

4,000.00 11,000.00 8,000.00

4,000.00 11,000.00 8,000.00

10,000.00

10,000.00

(2)

15,000.00 15,000.00 558,666.96(1)

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

Total Federal Financial Assistance

$ 57,500.00$ 73,502.00$ 77,074.11 $ 610,741.07

The Library had no major programs as defined by the Single Audit Act 1984.
(1) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(2) Expenditures for Title II - Public Library Construction Project No. 91-11-90-1 were not maintained separately and are included in Project No. 91-11-91-2.

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

SOUTHWEST GEORGIA REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994
INTEREST BEARING ACCOUNTS
Bainbridge National Bank, Bainbridge, Georgia
N.O.W. Account (2.45%) First State Bank and Trust, Albany, Georgia
N.O.W. Account (2.65%) OTHER
Petty Cash

SCHEDULE "2"
$ 340,091.38 115,193.26 110.00
$ 455,394.64
=============

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

SOUTHWEST GEORGIA REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1994
Education, Georgia Department of Federal Program library Services and Construction Act Title VI - Library literacy Program

SCHEDULE "3"

GOVERNMENTAL FUND TYPE
SPECIAL REVENUE FUND

$

3,572.11

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

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

SOUTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1994

SCHEDULE "4"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

TOTAL

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

$ 175,722.51 27,846.00 23,246.00 50,935.00
$

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

70,000.00 $

$ 175,722.51 27,846.00 23,246.00 50,935.00
70,000.00

95,499.00

95,499.00

$ 277,749.51 $ 70,000.00$ 95,499.00$ 443,248.51
============= ============= ============= =============

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

SOUTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

GOVERNMENTAL FUND TYPES

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTAL

LOCAL SOURCES County Boards of Education Decatur Mi 11 er Seminole
City Governments Bainbridge Colquitt
County Government Board of Commissioners Mi 11 er
OTHER SOURCES Donations Bainbridge - Decatur County United Way, Incorporated Decatur County Friends of the Library First State Bank International Paper Company Thomas M. Kirbo and Irene B. Kirbo Charitable Trust Other Fines and Fees Interest Earned Lost and Damaged Books Sales and Services Books Facsimile Photocopying Other Assets Other

$ 157,189.93 10,322.79 83,293.47

$ 157,189.93 10,322.79 83,293.47

$ 10,833.96

10,000.00

10,000.00 10,833.96

13,981.92

13,981.92

4,825.61 16,178.00
5,000.00 3,000.00 200,000.00 6,867.83 2,346.25 4,971.50
150.54
425.59 196.37 2,335.54 3,485.65 1,476.70

9,373.31

4,825.61 16,178.00
5,000.00 3,000.00 200,000.00 6,867.83 2,346.25 14,344.81
150.54
425.59 196.37 2,335.54 3,485.65 1,476.70

$ 526,881.65 $ 19,373.31 $ 546,254.96
============= ============= =============

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

SOUTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

SCHEDULE "6"

EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communication and Insurance Other Expenditures
Nonoperating Costs Building and Building Improvements Equipment
Total Expenditures

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

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

$ 268,172.41 $ 74,916.41 5,949.15 2,025.14 22,176.61 38,770.13 109,134.06 39,371.16 13,588.45 2,323.65

2,190.00 364.92
1,489.77 300.00 $
11,091.31 26,039.87
5,090.11 464.82

$ 2,809.26
111.19

270,362.41 75,281.33
7,438.92 5,134.40 22,176.61 49,861.44 135,173.93 39,371.16 18,678.56 2,899.66

366,769.66 366,769.66

37,093.80

75,043.31

188,976.85

301,113.96

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

$ 613,520.97 $ 122,074.11 $ 558,666.96$ 1,294,262.04
============= ============= ============= =============

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

SOUTHWEST GEORGIA REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30. 1994
BOARD MEMBER ADDRESS
Mr. Andy Porter, Chairman(*) P. 0. Box 1560 Bainbridge, Georgia 31717
Mrs. Beverly Barber(*) 2116 Turtle Pond Bainbridge, Georgia 31717
Mrs. Patsie Bevis(*) 202 Miller Street Colquitt, Georgia 31737
Mr. William R. Burke (*) 208 Woolfork Avenue Donalsonville, Georgia 31745
Mrs. Sissy Harrell (*) P. 0. Box 488 Donalsonville, Georgia 31745
Mrs. JoAnne Holland(*) South Cuthbert Street Colquitt, Georgia 31737
Mr. Dennis Lee(*) Route 2, Box 3345 Climax, Georgia 31734
Mr. Steele Malone(*) 1917 Lake Douglas Road Bainbridge, Georgia 31717
Mrs. Karen Myrick(*) 2501 Twin Lakes Drive Bainbridge, Georgia 31717
Mrs. Annie Reynolds(*) P. 0. Box 482 Donalsonville, Georgia 31745
Mrs. Barbara Smith(*) 2003 Lakewood Drive Bainbridge, Georgia 31717
Mrs. Rita Smith(*) Route 2 Box 423 Colquitt, Georgia 31737
(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements.
- 22 -

SCHEDULE "7"

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

SCHEDULE "8"

PERSONNEL
---------
Barber, Barineau, Bush, Dupree, Grice, Grimsley, Helms, Hutchins, Isler, King, Knight, Lewis, Lynn, Maggio, McGhee, Miller, Moore, Ralph, Reeves, Salter, Smith, Spooner, Stark, Swicegood, Thomas, Thomas, Trolinger, Ward, Whittle, Widner, Wi 11 is, Young, Zelenka,

Sally B. Charles Michele E. Tammy C. Denise A. Susan B. Amanda N. Kathy B. Pamela E. Carolyn Shawn P. Rebecca Reuben M. Theresa G. Vicki 0. Namiko A. Nell T. Susan M. Lisa J. Peggy M. Judy Deborah A. Rondalea Rosalyn P. Michelle D. Tania R.
Gai 1 s.
Margie W. Susan S. Kim G. Mack, Jr.
Loma A. Louis G.

POSITION
--------
Bookmobile Supervisor Security Assistant Secretary/Assistant Bookkeeper Talking Book Center Assistant Library Assistant Affiliate Library Supervisor Library Assistant Library Assistant Talking Book Center Assistant Library Assistant Page Library Assistant Circulation Assistant Reference Librarian Talking Book Center Assistant Affiliate Library Supervisor Library Assistant Librarian Talking Book Center Assistant Page Affiliate Library Supervisor Circulation Assistant Children's Librarian Bookkeeper Page Library Assisant Talking Book Center Assistant Bookkeeper Director Library Assistant Bookmobile Assistant Technical Processing Assistant Librarian

SALARIES

TRAVEL

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

$ 13,420.11 $

85.50

1,596.00

11,448.09

381.30

630.00

50.00

7,294.76

1,552.50

1,837.40

3,907.36

10,226.68

30.20

982.01

4,835.00

105.22

2,887.00

45.53

42,247.20

2,077.47

2,510.38

25.33

3,693.01

3,520.00

806.01

11. 76

10,382.14

1,303.23

163.63

11,370.00

10,399.92

89.97

26,354.40

713. 02

84.00

2,061.91

1,096.69

7,108.24

126.21

7,703.90

44,055.33

2,247.92

60.00

2,942.10

2,094.75

31,041.89

196.26

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

$ 270,362.41 $

7,438.92

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

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 20, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe"State Board ofEducation
and Director and Members ofthe Southwest Georgia Regional Library Board
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Southwest Georgia Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 20, 1995.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. 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.
Compliance with laws, regulations, contracts, and grants applicable to Southwest Georgia Regional Library is the responsibility of the Library's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Library's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Southwest Georgia Regional Library complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Library had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 94CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 20, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Southwest Georgia Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Southwest Georgia Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 20, 1995.

We have applied procedures to test the Southwest Georgia Regional Library's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(6) Allowable Costs/Cost Principles

(2) Davis-Bacon Act

(7) Drug-Free Workplace Act

(3) Civil Rights

(8) Audit Follow-Up/Resolution

(4) Cash Management

(9) Administrative Requirements

(5) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits ofState and Local Governments" and other additional procedures as deemed necessary_ Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Library's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Southwest Georgia Regional Library had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 94CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 20, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Southwest Georgia Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Southwest Georgia Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 20, 1995.

In connection with our audit of the fiscal year 1994 general purpose financial statements of the Southwest Georgia Regional Library and with our consideration of the Library's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(3) Applicable Special Tests and Provisions

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Southwest Georgia Regional Libbary's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Southwest Georgia Regional Library had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94CRL-120

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 20, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members of the Southwest Georgia Regional Library Board
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Southwest Georgia Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 20, 1995.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General ofthe United States. 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.
In planning and performing our audit ofthe financial statements of the Southwest Georgia Regional Library for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Southwest Georgia Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because

94ICL-l

ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(1) Cash and Cash Equivalents

(5) Employee Compensation

(2) Revenue/Receivables/Receipts

(6) General Ledger

(3) Procurement

(7) General Fixed Assets

(4) Expenditures/Liabilities/ Disbursements

For all ofthe internal control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation ofone or more ofthe specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

Respectfully submitted,
L~
Claude L. Vickers State Auditor

CLV:jy 94ICL-l

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

DEPARTMENT OF AUDITS
254 Washington Street, S_W., Suite 214 Atlanta, Georgia 30334-8400
January 20, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Southwest Georgia Regional Library Board
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Southwest Georgia Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated January 20, 1995_
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Southwest Georgia Regional Library complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Library's internal control structure in order to determine our auditing procedures for the purpose ofexpressing our opinion on the Library's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128_ This report addresses our consideration ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated January 20, 1995.
The management of the Southwest Georgia Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures.
94ICL-14

The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss :from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal :financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because ofchanges in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(I) Political Activity (2) Davis-Bacon Act (3) Civil Rights (4) Cash Management

(I) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level ofEffort, and/or Earmarking

(5) Federal Financial Reports

(4) Reporting

(6) Allowable Costs/Cost Principles (7) Drug-Free Workplace Act (8) Audit Follow-Up/Resolution (9) Administrative Requirements

(5) Applicable Special Tests and Provisions
(6) Other Requirement Claims for Advances and Reimbursements

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1994, the Southwest Georgia Regional Library had no major Federal financial assistance programs and expended 67% ofits total Federal financial assistance under the following nonmajor Federal financial assistance programs:

Library Services and Construction Act Title I - Public Library Services Title VI - Library Literary Program

94ICL-14

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements, and specific requirements, as described above that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Library's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Cash Management
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable condition described above is not a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94ICL-14

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

SOUTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statement Finding Resolved Audit Control Number 6432-93-01
The audit report for the year ended June 30, 1993, disclosed that the Southwest Georgia Regional Library did not have its bank balances fully collateralized as required by the Official Code of Georgia Annotated Section 45-8-12. For the year under review, audit tests of the Library's bank balances indicated that the Library complied with the State laws governing collateralization of cash deposits.
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain General Fixed Assets Account Group Financial Statements Finding Resolved Audit Control Number 6432-93-02
The audit report for the year ended June 30, 1993, noted that the Library did not 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 established a General Fixed Assets Account Group within the formal accounting records.
CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 6432-94-01
A review of cash management procedures for the Library Services and Construction Act - Title I Program (CFDA 84.034) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1994, the program had an average cash balance of$4,799.55 with excessive ending monthly cash balances in ten months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs of this program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SOUTHWEST GEORGIA REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 6432-94-01
We concur with this finding. This finding will be resolved by implementing a purchase order system. A purchase order must be on file and books, materials, etc. ordered before the actual draw down is made using the DE 0147 "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds".