Audit report, Statesboro Regional Library, Statesboro, Georgia, year ended June 30, 1997

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AUDIT REPORT STATESBORO REGIONAL LmRARY
STATESBORO, GEORGIA YEAR ENDED JUNE 30, 1997

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

STATESBORO REGIONAL LmRARY - TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINlNG AND INDNIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINlNGBALANCESHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

15

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

16

H

COMBINlNG STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

18

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

19

2

FEDERAL

20

3 . SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

21

4 SCHEDULE OF SALARIES AND TRAVEL

22

STATESBORO REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 16, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education
and Director and Members of the Statesboro Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying general-purpose fmancial statements of the Statesboro Regional Library, as of and for the year ended June 30, 1997, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Statesboro Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general-purpose fmancial statements of the Library did not contain a General Fixed Assets
Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general-purpose financial statements ofthis omission have not been determined, but are believed to be material.

97ARL-42

In our opinion, except for the effects on the general-purpose fmancial statements of the matter referred to in the third paragraph, the general-purpose fmancial statements referred to above present fairly, in all material respects, the financial position of the Statesboro Regional Library as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Statesboro Regional Library taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 4), as listed in the table ofcontents, are presented for purposes ofadditional analysis and are not a required part ofthe general-purpose financial statements. 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 of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
ff~~
Claude L. Vickers State Auditor
CLV:ds 97ARL-42

STATESBORO REGIONAL LffiRARY

STATESBORO REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 1997

ASSETS Cash and Cash Equivalents Accounts Receivable Investments Held by Trustee
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

$ 307,367.00 $ 15,421.00 $ 764,498.51

6,390.86

$ 313,757.86 $ 15,421.00 $ 764,498.51

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Compensation Plan
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ .4,238.43 625.64
$ 4,864.07

$ 24,411.89 68,802.00 31,505.00
$ 124,718.89

$ 15,421.00 $ 623,732.65

$ 308,893.79

0.00

16,046.97

$ 308,893.79 $ 15,421.00 $ 639,779.62

$ 313,757.86 $ 15,421.00 $ 764,498.51

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

EXHIBIT "A"

FIDUCIARY FUND TYPE AGENCY FUND

TOTALS (Memorandum Only) JUNE 30. 1997 JUNE 30.1996

$ 1,087.286.51 $

821,053.84

6.390.86

1,030.646.37

$

642.91

642.91

$

642.91 $ 1,094.320.28 $ 1,851,700.21

$

28,650.32 $

5.704.44

625.64

68,802.00

152.974.25

31,505.00

80,158.17

$

642.91

642.91

$

642.91 $ 130,225.87 $ 238,836.86

$

15,421.00 $

9,244.36

623,732.65

1,337,924.79

265,694.20

$ 964,094.41 $ 1,612,863.35

$

642.91 $ 1,094,320.28 $ 1,851.700.21

-3-

STATESBORO REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30.1997

EXHIBIT"B"

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

STATESBORO REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1997

EXHIBIT "c"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
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, 1996

GENERAL FUND

BUDGET

ACTUAL

$ 466,397.10 $ 433,954.05 587,686.34 778,248.57
$ 1,054,083.44 $ 1,212,202.62

$ 396,773.06 $ 434,595.72 104,723.38 106,466.87 228,700.04 216,472.78 294,363.24 281,897.06 112,867.00 127,413.39
$ 1,137,426.72 $ 1,166,845.82
$ -83,343.28 $ 45,356.80

$ 245,210,22 -161,866.94 $
$ 83,343.28 $

-2,100.00 -2,100.00

$

0.00 $ 43,256.80

265,506.69 265,636.99

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 10,250.00

$ 22,000.00

22,000.00

$ 22,000.00 $. 32,250.00

$ 22,000.00 $ 26,073.36

$ 22,000.00 $ 26,073.36

$

0.00 $ 6,176.64

$

0.00 $

9,244.36

6,176.64 9,244.36

FUND BALANCE JUNE 30,1997

$ 265,506.69 $ 308,893.79

$ 9,244.36 $ 15,421.00

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

STATESBORO REGIONAL LffiRARY

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Statesboro Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departures from generally accepted accounting principles disclosed in these notes, the fmancial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the fmancial statements present all fund types and account groups of the Library.
The Library Board consists often members; two members appointed from Bryan County Library Board, two members appointed from Bulloch County Library Board, two members appointed from Candler County Library Board, two members appointed from Emanuel County Library Board and two members appointed from Evans County Library Board. The Library Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion ofeach participating governmental agency. The Library 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 Statesboro Regional Library is therefore determined to be a joint venture.
FUND ACCOUNTING
The Library uses funds to report on its fmancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
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STATESBORO REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the agency funds used to account for assets held by a government unit as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUNDS - the funds used to account for assets held for individuals.
BASIS OF ACCOUNTING
The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available).
"Measurable" means the amount ofthe transaction can be determined and "available" means collectible within
the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
-7-

STATESBORO REGIONAL LffiRARY

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Statesboro Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS HELD BY TRUSTEE
Investments held by trustee consist of contributions from employees who have elected to participate in the Library's deferred compensation plan. See Note 7 - Deferred Compensation Plan
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants 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.
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
-8-

STATESBORO REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
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 AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent 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 anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
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STATESBORO REGIONAL LffiRARY

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS

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

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

(5) Bonds 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 of the State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 1997, the bank balances were $1,178,453.92. 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 fmancial 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, 1997, as follows:

Risk Category

Bank Balance

1

$ 547,044.55

2

480,239.30

3

151,170.07

Total

$ 1.178.453.92

- 10-

STATESBORO REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS At June 30, 1997, the carrying amount of the Library's total investments was $642.91 and this entire amount is categorized as Unclassified - Deferred Compensation Plan Pooled investments. The market value of these investments was $642.91.

Note 3: RISK MANAGEMENT

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

The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years.

The Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to this risk in the past three years.

The Library has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

All Employees All Board Members

$ 10,000.00 $1,000,000.00

Note 4: OPERATING LEASES

The Library has committed under various leases for copiers and buildings. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1997, amounted to $18,495.60. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

1998 1999 2000 2001

$ 6,345.60 4,581.60 2,502.60 1,668.40

Total

$ 15.098.20

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STATESBORO REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 5: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as of June 30, 1997, together with funding available:

Project
6162-95S-SBOll 6162-96S-SB008 Bryan County Library ExpansionlRenovation

Unearned Executed Contracts

Funding Available From State

$ 21,178.97 460,070.26 $ 593,412.00 24,760.00

$ 506.009.23 $ 593.412.00

The amounts described in this note are not reflected in the general purpose financial statements.

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 fmancial position.

Note 7: DEFERRED COMPENSAnON PLAN

The Library offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Library employees, permits them to defer a portion oftheir salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights ofthe Library (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Library's general creditors. Participants' rights under the plan are equal to those of general creditors of the Library in an amount equal to the fair market value of the deferred account for each participant.

It is the opinion ofthe Library that the Library has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Library believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.

Investments are managed by the plan's trustee, ITT Hartford Insurance Group. Under this plan, participants select from an investment option or combination of investment options.

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STATESBORO REGIONAL LIBRARY

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 7: DEFERRED COMPENSATION PLAN

On August 20, 1996, Federal laws governing Internal Revenue Code Section 457 plans were changed to require all assets and income of the plan to be held in trust for the exclusive benefit of the participants and their beneficiaries. The Library is required to comply with this requirement by January 1, 1999.

Note 8: ACCUMULATED EMPLOYEES' LEAVE

The Library's full-time employees earn vacation leave according to their position and length ofservice ranging from five to twenty days per calendar year and are allowed to carry over five days of annual leave into the next year with a maximum accumulation oftwenty-five days. All unused vacation leave is paid to employees upon retirement or termination of employment at their current rate of pay. See Note 1 - Compensated Absences

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone [mancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 77,089.39 $ 76,463.92 $ 69,702.00

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STATESBORO REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30,1997

EXHIBIT "E"

ASSETS Cash and Cash Equivalents

LOTTERY PROGRAM

FEDERAL

TOTALS

PROGRAM JUNE 3D, 1997 JUNE 30. 1996

$ _ _....0....0..0.. $ 15,421.00 $

15.421.00 $ ......._ _9.2..4..4...3...6...

FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program Unreserved Undesignated
Total Fund Equity

$ $ _ _--=.o;.;;.O~O

15,421.00 $ 0.00

15.421.00 $ 0.00

9,244.36 0.00

$ _ _....0.0..0.. $ 15.421.00 $

15.421.00 $

9.2..4...4....3..6..

See notes to the general purpose financial statements.

-14 -

STATESBORO REGIONAL LIBRARY

EXHIBIT "F"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30.1997

REVENUES State Funds Federal Funds Total Revenues
EXPENDITURES Current Program Services Technical Services Totaf Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
FUND BALANCE JUNE 30

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996

$ 10,250.00

$

$ 22,000.00

$ 10,250.00 $ 22,000.00 $

10,250.00 $ 22,000.00
32,250.00 $

10,000.00 22,000.00
32,000.00

$ 10,250.00 $ 15,823.36 $

26,073.36 $

$ 10,250.00 $ 15,823.36 $

$

0.00 $

6,176.64 $

0.00

9,244.36

26,073.36 $ 6,176.64 $ 9,244.36

23,296.77 3,227.49
26,524.26 5,475.74 3,768.62

$====~O;.;;;'O~O $ 15,421.00 $

15,421.00 $ ===9...,2.=44===:.3.=6

See notes to the general purpose financial statements.

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STATESBORO REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1997

EXHIBIT "Gil

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS JUNE 30, 1997 JUNE 30, 1996

$ 16,046.97 $

748,451,54 $

764,498.51 $

557,949.42

1,013,165.00

$ 16,046.97 $

748,451.54 $

764,498.51 $ 1,571 J 14,42

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

24,411.89 $

24,411.89

68,802.00

68,802.00 $

152,974.25

31,505.00

31,505,00

80,158,17

$

124,718.89 $

124,718.89 $

233,132.42

$ $ 16,046.97 $ 16,046.97 $

623,732.65 $
0.00
623,732.65 $

623,732.65 $
16,046,97
639,779.62 $

1,337,924.79 57.21
1,337,982.00

$ 16,046.97 $

748,451.54 $

764,498,51 $ 1,571,114.42

See notes to the general purpose financial statements.

-16 -

STATESBORO REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30.1997

EXHIBIT "H"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30,1996

REVENUES

State Funds Other Funds

$ $ 27,429.76

423,181.00 $ 219,438.75

423,181.00 $ 1,519,748.00

246,868.51

609,566.49

Total Revenues

$ 27,429.76 $

642,619.75 $

670,049.51 $ 2,129,314.49

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements

$ 13,540.00 $

$ 1,356,811.89 $ 1,370,351.89

9,701.19 859,495.91

Total Expenditures

$ 13,540.00 $ 1,356,811.89 $ 1,370,351.89 $ 869,197.10

Excess of Revenues over (under) Expenditures

$ 13,889.76 $

-714,192.14 $ -700,302.38 $ 1,260,117.39

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 2,100.00

$

2,100.00

$

-5.00

Total Other Financing Sources (Uses)

$ 2,100.00

$

2,100.00 $

-5.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 15,989.76 $

-714,192.14 $ -698,202.38 $ 1,260,112.39

FUND BALANCE JULY 1

57.21

1,337,924.79

1,337,982.00

77,869.61

FUND BALANCE JUNE 30

$ 16,046.97 $

623?32.65 $

639,779.62 $ 1,337,982.00

See notes to the general purpose financial statements.

-17-

STATESBORO REGIONAL LIBRARY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30,1997

EXHIBIT "I"

DEFERRED COMPENSATION PLAN
ASSETS Investments Held by Trustee

BALANCE JULY 1,1996

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1997

$

0.00 $

642.91 $

0.00 $ ====64=2=.9==1

LIABILITIES Deferred Compensation Plan

$

0.00 $

642.91 $

0.00 $ =====6=4;;;2=:.9=1

See notes to the general purpose financial statements.

- 18-

STATESBORO REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 423,181.00 $ 423,181.00

$ 300,382,05
70,086.00 63,486,00
_ _ _ _ $ 10,250.00

300,382.05 70,086.00 63,486,00
10,250.00

$ 433,954.05 $ 10,250.00 $ 423,181,00 $ 867,385.05

See notes to the general purpose financial statements.

-19 -

STATESBORO REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 1997
AGENCY/FUNDING GRANT Education, U. S. Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ ......_ _,,;;2.2.-00;;,;0.-.0.=0

See notes to the general purpose financial statements.

- 20-

STATESBORO REGIONAL LIBRARY SCHEDULE OF EXPENDITURES LOTIERY PROGRAM
YEAR ENDED JUNE 30, 1997
EXPENDITURES Program Services Supplies Equipment
Total Expenditures

SCHEDULE "3"

ASSISTIVE TECHNOLOGY

$

5,182.66

5,067.34

$ ====1.=O,=::25=0..,.0.=::0

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

STATESBORO REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Anderson, Barker, Barrow, Beam, Best, Brannen, Brantley, Bunch, Carmichael, Dombrock, Durham, Fagnant, Glisson, Gunter, Harrison, Herrington, Hoch, Howard, Hugensmith, Humphries, Hutcheson, Johnson, Joiner, Kinnon, Lee, Lewis, Lynn, Matuszewski, McDuffie, McLean, McQuilkin, Murphy, Odom, Ott, Palmer, Parrish, Phipps, Rainey, Ray, Richardson, Rickerson, Riner, Rivenbark, Roberts,

Nancy Kathryn Sheri Lindsay Tangela Betty Jami Rae Mary Linda Gretchen Jennifer Lois Judy Gayle Lillie Mae David Jo Lene Anglenette Carolyn Linder Patricia Sonya Mary Catherine Judith Sue Juanita Annie Mary Elaine Katherine Jennifer JoAnn Nancy Angela Judy Wanda Amanda T'Neil Rebecca Nancy Myrna Robert Patricia Peggy Lois

POSITION
Library Assistant Library Manager Library Clerk Library Aide Library Assistant I Library Assistant I Library Clerk Library Clerk Library Manager Librarian Librarian Library Manager Librarian Library Assistant I Library Assistant Library Assistant I Library Assistant I Library Assistant I Library Assistant" Library Assistant " Library Specialist " Library Aide Library Assistant I Library Assistant I Library Assistant III Library Clerk Library Clerk Librarian RIFfTap Coordinator Librarian Librarian Library Assistant I Library Manager Library Specialist Library Assistant Library Assistant Library Assistant Library Assistant Director Library Assistant Librarian Library Assistant Library Manager LibrarianlDirector
- 22-

SALARIES

TRAVEL

$ 15,211,68

15,919,08 $ 419,10

5,659.43

22,25

2,297,21

2,047,02

15,579.20

446.25

3,779.84

20,020.02

28.79

2,668.60

36,049.00

1,428.25

11,519.22

251.50

26,489.40

43.50

16,908.79

456.00

15,579.20

6,412.68

15,475.20

17,076,80

16,950.44

26,812,80

666.00

15,641.60

192.34

15,475,20

19,947.20

77.25

3,545.80

31.88

33,653.80

702.36

15,011.88

336.94

6,563.13

12,774.14

251.50

7,608.83

11,920.77

129.75

14,053.28

40.50

12,708.80

15.00

96.28

8,278,39

5.00

10,597.60

15.00

30,086.00

717,92

1,496.25

6,338.40

143.75

14,112.80

28.79

733.26

48,182.00

1,277.69

STATESBORO REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PERSONNEL

Robertson, Royal, Royal, Samer, Sanders, Schroeder, Stacy, Stewart, Waters, Weinberger, Williams, Wynn,

Mary Kathryn Henrietta Sandra Linda Kimberly Louella Andrew Connie Janice Paul Christine Christine

POSITION
Library Aide Librarian Library Specialist III Library Specialist Library Clerk Library Clerk Librarian Library Manager Library Assistant Library Aide Library Assistant Library Aide

SALARIES

TRAVEL

$

728.88

45,582.00 $

30,659.16

7,611.73

374.00

1,223.14

9,679.86

10,848.71

936.83

2,725.77

7,105.14

3,622.82

30.28 120.25
29.50 173.75

$ 683,979.19 $ 6,480.96

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

SECTIONn FINDINGS AND QUESTIONED COSTS

STATESBORO REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
ProORYEA~CillUffiNTYEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6162-93-01
The audit report for the year ended June 30, 1996, noted that the management of the Statesboro Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the fonnal accounting records. This condition results in the general purpose fmancial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.