Audit report, Southwest Georgia Regional Library, Bainbridge, Georgia, year ended June 30, 1996

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AUDIT REPORT SOUTIIWEST GEORGIA REGIONAL LIBRARY
BAINBRIDGE, GEORGIA YEAR ENDED JUNE 30, 1996

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

SOUTHWEST GEORGIA REGIONAL LIBRARY -TABLEOFCONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

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

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

1 CASHAND CASH EQUIVALENTS

18

2 ACCOUNTS RECEIVABLE

19

SCHEDULE OF REVENUE

3

STATE

20

4

FEDERAL

21

5

OTHER

22

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

23

7

LOTTERY PROGRAM

24

8 MEMBERSHIP OF LIBRARY BOARD

25

9 SCHEDULE OF SALARIES AND TRAVEL

26

SOUTHWEST GEORGIA REGIONAL LffiRARY - TABLE OF CONTENTS -
SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONID PERTINENT VIEWS OF RESPONSffiLE OFFICIALS PERTINENT VIEWS OF RESPONSffiLE 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
February 12, 1997

Honorable Zell Miller, Governor Members of the 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 SUPPLEMENTARY INFORMATION
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, 1996, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as 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, 1996, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Southwest Georgia Regional Library taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules I through 9), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Southwest GeorgiaRegionaI 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.
96ARL-40

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:gp 96ARL-40

Claude L. Vickers State Auditor

SOUTHWEST GEORGIA REGIONAL LIBRARY - 1-

SOUTHWEST GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,1996

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 256,718.24

$

0.00

8,972.96 $

2,139.65

Total Assets

$

265,691.20 $

2,139.65 $ -=_ _.....0...0...0...

Total LiabUities and Fund Equity

$ 265,691.20 $

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

2,139.65 $-==......._ _=0.,.0.0;,.0

EXHIBIT "A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

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

$ 256,718.24 $ 370,675.85

11,112.61

19,165.90

$

24,885.91

24,885.91

22,998.03

$

41,022.00

2,542,593.00

667,126.58

2,272,202.00

41,022.00 2,542,593.00
667,126.58 2,272,202.00

41,022.00 2,511,006.00
651,242.00 2,272,202.00

$

5,522,943.58 $

24,885.91 $ 5,815,660.34 $ 5,888,311.78

$

1,439.94 $

3,027.31

46,624.56

25,435.28

263.81

$

24,885.91

24,885.91

22,998.03

$

24,885.91 $

73,214.22 $

51,460.62

$

5,522,943.58

$

5,522,943.58

$ 5,522,943.58 $ 5,475,472.00

$

72,138.72

$

22,592.03

196,910.51

26,309.52 262,930.92

$ 219,502.54 $ 361,379.16

$ 5}42,446.12 $ 5,836,851.16

$

5,522,943.58 $

24,885.91 $ 5,815,660.34 $ 5,888,311.78

-3-

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

EXHIBIT-B-

FUND BALANCE JUNE 30

$ 219,502,54 $

0,00 $

0.00 $ 219,502,54 $ 361,379.16

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

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

EXHIBITC

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 298,719.84 $ 317,933.83

293,551.60 1,118.10
357,568.27

Total Revenues

$ 616,653.67 $ 652,237.97

EXPENDITURES

Current Program Services Technical Services Circulation Administration Maintenance and Operations
Facilities Acquisition and Construction

$ 424,078.01 $ 1,543.70
100,398.88 184,673.77 83,643.67
4,500.00

351,679.05 23,361.28 90,774.96 184,302.69 76,634.32 2,249.00

Total Expenditures

$ 798,838.03 $ 729,001.30

Excess of Revenues over (under) Expenditures

$ -182,184.36 $ -76,763.33

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 85,518.34 -85,519.19

Total Other Financing Sources (Uses)

$

-0.85

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses '$ -182,185,21 $

-76,763,33

FUND BALANCE JULY 1, 1995

286,585.75

289,240.44

Residual Equity Transfer

7,025.43

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 10,000,00 $ 10,000.00

21,811.54

15,682.30

$ 31,811.54 $ 25,682.30

$ 26,543.19 $ 25,682.30

$ 26,543.19 $ 25,682.30

$

5,268.35 $

0.00

$

5,268.35 $

0.00

-5,268.35

0.00

FUND BALANCE JUNE 30,1996

$ 104,400.54 $ 219,502.54

$

0.00 $ _ ___'0....0..0..

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

THIS PAIiI LEFT BLANK

SOUTHWEST GEORGIA REGIONAL LmRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

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 and the financial statements present all fund types and account groups of the Library. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the Southwest Georgia Regional Library is determined to be a joint venture.
The Library Board consists of 12 members; 6 members appointed by Decatur County Library Board, 3 members appointed by Miller County Library Board and 3 members appointed by Seminole County Library Board. The Board is without authority to determine the amount ofits funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The 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 and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units. Funds and account groups presented in this report are as follows:
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SOUTHWEST GEORGIA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

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 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 ofmajor 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 ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
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 availabte). "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.
- 8-

SOUTHWEST GEORGIA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Not"e 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Southwest 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 and submits a proposed aggregated budget for the Board's approval. After approval of proposed budget by the Board, the final budget is then submitted to the Georgia Department of Education, Division of Public Library Services as a part of the .Library's anhual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (mcluding N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist ofgrant reimbursements due from State or other grantors for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, ate 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. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend the useful lives of the assets is not capitalized.

- 9-

SOUTHWEST GEORGIA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following types ofinterfund 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.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers ofequity.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
FUND BALANCE ADJUSTMENT
GSFIC Project No. 6432-92-SB-002 was completed in the year under review, with unused local funds of SI0,000.00 being returned to the original grantor, Southwest Georgia Regional Library Foundation.
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. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an offic~r holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

- 10 -

SOUTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS
Acceptable security for deposits consists of anyone of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to ~ransact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State 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 ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates ofindebtedness, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $273,987.11. The amounts of the 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.)

- 11 -

SOUTHWEST GEORGIA REGIONAL LIBRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS

The Library's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

173,987.11

3

0.00

Total

$ 273,987.11

Note 3: GENERAL FIXED ASSETS

A summary of changes in the General Fixed Assets Account Group during the fiscal year are as follows:

Land

Buildings

Equipment

Inexhaustible Collections and Books

Total

Balance July 1. 1995 Additions Balancc June 30. 1996

$ 41.022.00 $ 2.511.006.00 $ 651,242.00 $ 2,272,202.00 $ 5,475,472.00

31.587.00

15,884.58

47.471.58

$ 4102200 $ 254259300 $ 667126.58 $ 227220200 $ 552294358

Note 4: RISK MANAGEMENT

The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation.

The Library has obtained commercial insurance for risk of loss associated with torts, assets, job related illnesses or injuries to employees and natural disaster with respect to contents located at the Decatur and Miller County Libraries. However, the policy does not cover structural losses caused by natural disaster at either location. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any ofthe past three years.

The Library has elected to self-insure for all losses related to errors or omissions, which includes, among other

risks, risks for sexual harassment and discrimination. In addition, the Library has elected to self-insure for

structural losses at the Decatur and Miller County Libraries and all losses at the Seminole County Library

related to natural disaster. The Library has not experienced any losses related to two risks in the past three

~~

'

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SOUTHWEST GEORGIA REGIONAL LffiRARY

EXlllBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1996

Note 4: RISK MANAGEMENT

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 ofthat loss can be reasonably estimated.

The Library has not experienced any unemployment compensation claims during the last two years.

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Compensated Absences

Balance July 1, 1995

$ 22,998.03

Additions Leave Earned and Utilized (Net)

1.887.88

Balance June 30, 1996

$ 2488591

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.

Note 7: ACCUMULATED EMPLOYEES' LEAVB

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 rate, up to their maximum accumulation, upon retirement or termination of employment. 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).

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SOUTHWEST GEORGIA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 8: RETIREMENT PLANS

TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years ofservice and attainment ofage 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% ofthe average ofthe member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is

entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement,

whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had

the member retired on the date of death on either a service retirement allowance or a disability retirement

allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years

of service) and compensation up to the time ofdisability or death.

.

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.

The Library's payroll for employees covered by TRS for the year ended June 30, 1996, was $279,646.51; total payroll was $326,342.24.

TRS CONTRmUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1996, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.

Total contributions made during fiscal year 1996 amounted to $47,008.34, of which $33,026.12 was made by the Library and $13,982.22 was made by employees. These contributions represented 11.81% (Library) and 5% (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 performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to

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SOUTHWEST GEORGIA REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 8: RETIREMENT PLANS

enable readers ofPERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066.000.00

Unfunded pension benefit obligation

$ L585,54LOOO.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. .Net assets available to pay pension benefits were valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of $33,026.12 was actuarially determined and represented .0054% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 9: SURETY BONDS

All employees ofthe Library are bonded under a blanket employee policy in the amount of $1 00,000.00 with the Cincinnati Insurance Company, Cincinnati, Ohio, their Bond No. CPP5017720AWR, on which premium was paid through July 1, 1997.

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SOUTHWEST GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE30 1996

EXHIBIT-E-

ASSETS Cash and Cash Equivalents Accounts Receivable

LOTTERY PROGRAM

$

0.00

$

LIBRARY SERVICES AND

CONSTRUCTION ACT

TITLE I

TITLE VI

PUBLIC

LIBRARY

LIBRARY

LITERACY

SERVICES

PROGRAM

TOTALS JUNE 30,1996 JUNE 30, 1995

$

0.00$

0.00 $

0.00

2,139.65

2,139.65

5,268.35

Total Assets

$

0.00 $

2,139.65 $

0.00 $

2,139.65 $

5,268.35

LIABILITIES AND FUND EQUITY

lIABllmES

Cash Overdraft Accounts Payable

Total Liabilities

FUNDEQUIIY

Fund Balances

Unreserved

Undesignated

$

Total liabilities and Fund Equity $

$

1,439.94

699.71

$

2,139.65

0.00 0.00 $

0.00 $ 2,139.65 $

$

1,439.94 $

3,027.31

699.71

2,241.04

$

2,139.65 $

5,268.35

0.00

0.00

0.00

0.00 $

2,139.65 $

5,268.35

See notes to the general purpose financial statements.

-16-



SOUTHWEST GEORGIA REGIONAL LIBRARY

COMBINING STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

yEAR ENDED JUNE 30.1996

EXHIBIT -P'

LOTTERY PROGRAM

REVENUES

State Funds Federal Funds

$

10,000.00

$

Total Revenues

$

10,000.00 $

exPENDITURES

Current Program Services Technical Services Circulation

$

10,000.00 $

Total Expenditures

$

10,000.00 $

Excess of Revenues over (under) Expenditures $

0.00 $

FUND BALANCE JULy 1

0.00

LIBRARY SERVICES AND

CONSTRUCTION ACT

TITLE I

TITLE VI

PUBLIC

LIBRARY

LIBRARY

LITERACY

SERVICES

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

11,465.97 $ 11,465.97 $

$ 4,216.33
4,216.33 $

10,000.00 $ 15,682.30
25,682.30 $

1,100.00 54,056.75
55,156.75

11,465.97 $
11,465.97 $ 0.00 $ 0.00

4,216.33 $
4,216.33 $ 0.00 $ 0.00

25,682.30 $
25,682.30 $ 0.00 $ 0.00

43,256.75 8,000.00 3,900.00
55,156.75
0.00
0.00

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

17

SOUTHWEST GEORGIA REGIONAL LIBRARY CASH AND CASH EQUIVALENTS
JUNE 30, 1996
INTEREST BEARING ACCOUNTS Bainbridge National Bank, Bainbridge, Georgia
N.O.W. Account (2.30%)
OTHER
Petty Cash

SCHEDULE -1-
$ 255,168.30 110.00
$ 255,278.30

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

SOUTHWEST GEORGIA REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30.1996

SCHEDULE "2"

Education, Georgia Department of Public Libraries Talking Books Centers Federal Program Library Services and Co'nstruction Act Title I - Public Library Services
Georgia Humanities Council Promotion of the Humanities - State Programs
Miller County Board of Education Local Support
Seminole County Board of Education Local Support

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

3,915.00

$

3,915.00

$

2,139.65

2,139.65

400.00

400.00

2,700.60

2,700.60

1,957.36

1,957.36

$

8,972.96 $

2,139.65 $===11=,1=1=:2.:=6=1

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

SOUTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1996

SCHEDULE "3"

AGENCYIFUNDING
GRANTS Education, Georgia Department of Public Ubraries Salaries and Travel Ubrary Materials Mainteriance and Operations Talking Book Centers Lottery Program Technology Installation
Georgia Humanities Council Promotion of the Humanities - State Program
OTHER Education, Georgia Department of Reimbursement - Georgia Online Database Transactions

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 186,432.65 27,846.00 23,246.00 54,854.00
$

$ 186,432.65 27,846.00 23,246.00 54,854.00

10,000.00

10,000.00

1,118.09

1,118.09

54.86

54.86

$ 293,551.60 $

10,000.00 $ 303,551.60

See notes to the general purpose financial statements.

- 20 -

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

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

Education, U. S. Department of Direct Ubrary Services and Construction Act Title VI - Ubrary Uteracy Program Through Georgia Department of Education Ubrary Services and Construction Act Title I - Public Ubrary Services

$

4,216.33 $

4,216.33

11,465.97

11,465.97

National Endowment for the Humanities Through Georgia Humanities Council National Foundation on the Arts and the Humanities Act Promotion of the Humanities

$

1,118.10

--...;.:.;~;.;.,;;,..

1,118.10

$

1,118.10 $

15,682.30 $ 16,800.40

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

SOUTHWEST GEORGIA REGiONAL LIBRARY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

LOCAL SOURCES Boards of Education Decatur County Miller County Seminole County County Government Board of Commissioners Miller
OTHER SOURCES Donations Bainbridge - Decatur County United Way, Incorporated Decatur County Friends of the Library First State Bank International Paper Company Other Fines and Fees Interest Earned Lost and Damaged Books Sales and Services Book Sales Photocopy Sales Library Assets Other

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

185,589.48

44,395,35

90,226.41

240,00

$ 185,589.48 44,395.35 90,226.41
240.00

3,560,00 4,090.10 5,000,00 4,800.00 3,073,61 2,477.28 6,312.99 $
305.10
511.10 6,382.19
262.60 342,06

680.51

3,560.00 4,090.10 5,000.00 4,800.00 3,073.61 2,477.28 6,993,50
305.10
511.10 6,382.19
262.60 342.06

$

357,568.27 $==,.,.;6;.;;8;,;;;,0;;;,.5.;.,1 $ 358,248.78

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

SOUTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$ 323,380.43 $

2,961.81

$

86,686.29

293.65

8,409.44

870.65

2,961.63

100.00

25,420.58

49,598.13

1,491.71

134,055.46

7,131.02

47,641.82

39,956.30

1,255.57

316.46

2,249.00 7,386.65

$
12,517.00

29,338.00 26,455.80

TOTAL
326,342.24 86,979.94 9,280.09 3,061.63 25,420.58 51,089.84
141,186.48 47,641.82 39,956.30
1,255.57 316.46
31,587.00 46,359.45

Total Expenditures

$ 729,001.30 $

25,682.30 $

55,793.80 $ 810,477.40

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

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

SCHEDULE '7"
TECHNOLOGY INSTALLATiON
$====1=0.=;'O=00=:,O:=.0

See notes to the general purpose financial statements.
- 24 -

SOUTHWEST GEORGIA REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1996

BOARD MEMBER ADDRESS

Ms. JoAnne Holland, Chairperson (*)
P. 0, Box 102 Colquitt, Georgia 31737

Ms. Beverly Barber (*)
2116 Turtle Pond Road Bainbridge, Georgia 31717

Ms. Sally Bates (*) 1805 Lake Circle Drive Bainbridge, Georgia 31717

Ms. Patsie Bevis (*) 202 Miller Street Colquitt, Georgia 31737

Ms, Thea Burke (*)
1906 Legette Drive Bainbridge, Georgia 31717

Ms. Sissy Harrell (*) P. O. Box 488 Donalsonville, Georgia 31745

Mr. Steele Malone (*) 1808 Woodridge Drive Bainbridge, Georgia 31717

Ms, Ann Mosely (*) P. O. Box 524 Donalsonville, Georgia 31745

Ms. Karen Myrick (*) 2501 Twin Lakes Drive Bainbridge, Georgia 31717

Ms. Annie Reynolds (*)
P. O. Box 482 Donalsonville, Georgia 31745

Mr. Charles Rozier (*)
P. O. Box 526 Bainbridge, Georgia 31717

Ms. Maxine Summers (*) Route 2, Box 166 Colquitt, Georgia 31737
(*) Denotes Board Members Serving as of June 30, 1996

See notes to the general purpose financial statements.

- 25 -

SCHEDULE "8"

SOUTHWEST GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1996

SCHEDULE "9"

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SOUTHWEST GEORGIA REGIONAL LffiRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PR"IOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Improper Appointment ofBoard Members Finding Resolved Audit Control Number 6432-95-01
The audit report for the year ended June 30, 1995, stated that Mr. Charles Rozier was appointed by the Bainbridge City Council to serve on the Board ofTrustees of the Southwest Georgia Regional Library. The Bainbridge City Council did not provide financial support to the Southwest Georgia Regional Library during the fiscal year ended June 30, 1995. According to Official Code of Georgia Annotated Section 20-5-42 and an Opinion ofthe Attorney General dated January 26, 1988, only governmental agencies providing financial support to a regional library system are given the authority to appoint trustees.
For the year under review, appointments to serve on the Board ofTrustees of the Southwest Georgia Regional Library were made only by governmental agencies providing financial support as required. The Bainbridge City Council approved a motion to provide financial support to the Southwest Georgia Regional Library on a continual basis.
PRIOR YEAR/CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Audit Control Number 6432-94-01
The audit report for the year ended June 30, 1995, stated that a review of cash management procedures for the Library Services Act - Title I Program (CFDA 84.034) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report ofExpenditures and Estimated Requirements for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test ofcash management procedures again revealed excessive cash balance accumulations by the Library. . During fiscal y~ 1996, the program had an average cash balance of$359.31 with excessive ending monthly cash balances in six months. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department ofEducation and disbursement of such funds by the Library.

SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SOUTHWEST GEORGIA REGIONAL LmRARY PERTINENT VIEWS OF RESPONSmLE OFFICIALS
YEAR ENDED JUNE 30. 1996
CASH MANAGEMENT Excessive Cash Balances Audit Control Number 6432-94-01
We concur with this finding. This finding will be resolved by requesting grant money after the expenditures are on the books instead oftrying to estimate what our expenditures will be.