STATESBORO REGIONAL LIBRARY - TABLE OF CONTENTS - 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 GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS 6 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 7 ADDITIONAL FINANCIAL INFORMATION SCHEDULES SCHEDULE OF REVENUE 1 STATE 16 2 FEDERAL 17 3 LOCAL 18 4 SCHEDULE OF SALARIES AND TRAVEL 19 FINANCIAL {USSELt W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w. Suite 214 Atlanta, Georgia 30334-8400 August 14, 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia and Director and Members of the Statesboro Regional Library Board INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON Ladies and Gentlemen: We have audited the accompanying general-purpose financial statements ofthe Statesboro Regional Library, as of and for the year ended June 30, 2002, as listed in the table of contents. These generalpurpose financial statements are the responsibility ofthe 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-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 referred to above present fairly, in all material respects, the financial position ofthe Statesboro Regional Library as ofJune 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. 2002ARL-43 As discussed in Note 1 to the general-purpose financial statements, during fiscal year 2002, the Library completed a comprehensive inventory of its general fixed assets for inclusion in the generalpurpose financial statements. This change is in accordance with accounting principles generally accepted in the United States of America. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Statesboro Regional Library taken as a whole. The accompanying financial schedules (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Statesboro Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. Respectfully submitted, W.~ Ru ell W. Hinton State Auditor RWH:as 2002ARL-43 STATESBORO REGIONAL LIBRARY STATESBORO REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2002 ASSETS Cash and Cash Equivalents Investments Accounts Receivable General Fixed Assets Equipment Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Expired Grant Balances Payable Retainages Payable Deferred Revenue Total Liabilities FUND EQUITY Investment in General Fixed Assets Fund Balances Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND $ 308,866.69 $ 100.00 $ 0,00 142,955.70 8,328.35 $ 460,150.74 $ 100.00 $=====:O;;,;;'O~O $ 7,487.52 4,572.99 $ $ 12,060.51 $ 100.00 100.00 $ 448,090.23 $ $ 448,090,23 $ $ 460,150.74 $ 0.00 $ 0.00 0,00 $ 0.00 100.00 $=====0=:.0=0 The notes to the general-purpose financial statements are an integral part of this statement. -2- EXHIBIT "A" FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND $ 34,283.44 ACCOUNT GROUP GENERAL FIXED ASSETS TOTALS (Memorandum Only) JUNE 30, 2002 JUNE 30, 2001 $ 308,966.69 $ 248,203.14 177,239.14 179,043.00 8,328.35 9,595.38 $ 1,083,667.00 1,083,667.00 $ 34,283.44 $ 1,083,667.00 $ 1,578,201.18 $ ===43=6=,8=4=1=.5==2 $ 6,036.75 $ 7,487.52 4,416.10 155.79 4,749.14 4,672.99 $ 12,160.51 $ 15,357.78 $ 1,083,667.00 $ 1,083,667.00 $ _ _......3;:.4..:.c,2::.::8:.:::3.:...;.4'-'-4 $ 34,283.44 $ 1,083,667.00 $ 482,373.67 $ _ _....:.42=-1'-'-.4.;.:8:.:::3.;.;..7'-'-4 1,566,040.67 $ _ _....:.42=-1'-'-,4.;.:8:.:::3.;.;..7'-'-4 $ 34,283.44 $ 1,083,667.00 $ 1,578,201.18 $===43=6=,8=4=1=.5==2 -3- STATESBORO REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2002 REVENUES State Funds Federal Funds Local Funds Other Funds Total Revenues EXPENDITURES Current Public Services Technical Services Support Services Maintenance and Operations Information Technology Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 599,247.77 $ 0.00 $ 24,651.94 893,616.92 155,082.93 $ 1,647,947.62 $ 24,651.94 $ 0.00 $ 925,778.67 $ 117,092.71 377,369.47 158,760.37 6,191.32 $ 1,585,192.54 $ $ 62,755.08 $ 385,335.15 24,651.94 $ 24,651.94 $ 0.00 $ 0.00 4,292.98 4,292.98 -4,292.98 4,292.98 FUND BALANCE JUNE 30 $ 448,090.23 $ 0.00 $=====,0=.0=0 The notes to the general-purpose financial statements are an integral part of this statement. -4- EXHIBIT"B" TOTAL FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 599,247.77 24,651.94 893,616.92 155,082.93 $ $ 1,672,599.56 $ $ 2,427.83 599,247.77 $ 24,651.94 893,616.92 157,510.76 563,489.25 6,248.06 830,854.33 260,088.94 2,427.83 $ 1,675,027.39 $ 1,660,680.58 $ 950,430.61 $ 117,092.71 377,369.47 158,760.37 6,191.32 4,292.98 $ 1,614,137.46 $ $ 58,462.10 $ 389,628.13 0.00 $ 950,430.61 $ 117,092.71 377,369.47 158,760.37 6,191.32 4,292.98 897,662.27 141,348.36 353,779.59 138,994.29 130,189.13 100,057.11 0.00 $ 1,614,137.46 $ 1,762,030.75 2,427.83 $ 60,889.93 $ -101,350.17 31,855.61 421,483.74 522,833.91 $ 448,090.23 $ 34,283.44 $ 482,373.67 $ 421,483.74 - 5- 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, 2002 EXHIBIT "C" GENERAL FUND BUDGET ACTUAL REVENUES State Funds Federal Funds Local Funds Other Funds Total Revenues $ 591,104.28 $ 599,247.77 17,312.00 927,370.00 893,616.92 46,361.00 155,082.93 $ 1,582,147.28 $ . 1,647,947.62 EXPENDITURES Current Public Services Technical Services Support Services Maintenance and Operations Information Technology $ 887,478.43 $ 925,778.67 144,742.41 117,092.71 384,085.44 377,369.47 153,641.00 158,760.37 12,200.00 6,191.32 Total Expenditures $ 1,582,147.28 $ 1,585,192.54 Excess of Revenues over (under) Expenditures $ 0.00 $ 62,755.08 FUND BALANCE JULY 1, 2001 385,335.15 385,335.15 FUND BALANCE JUNE 30, 2002 $ 385,335.15 $ 448,090.23 SPECIAL REVENUE FUND BUDGET ACTUAL $ 0.00 $ 24,651.94 $ 0.00 $ 24,651.94 $ 0.00 $ 24,651.94 $ 0.00 $ 24,651.94 $ 0.00 $ 0.00 0.00 0.00 $ 0.00 $====0=.0=0 The notes to the general-purpose financial statements are an integral part of this statement. -6- 1",' ',' . STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 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. The financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library. The Library Board consists of ten 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 of budget requests to local governmental units from which the Library receives'support and to the State ofGeorgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other 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 and an account group 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 of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group 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: -7- STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 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 ofspecial revenue fund consists ofproceeds 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 trust fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals. This fund includes: EXPENDABLE TRUST FUND - the fund used to account for financial resources to be used for the Deferred Compensation Plan for the employees of the Library. ACCOUNT GROUP GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Library which includes equipment. The land and buildings used in Library Operations are owned by the respective counties in which each Library branch is located. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust 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. Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: -8- 'I, ..... ':. STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Expenditures are generally recognized when the related fund liability is incurred. 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 Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand and demand deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized -9- STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERAL~PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. 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. 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 of the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of - 10- STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES nonnal 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. Infrastructure assets are not capitalized by the Library. The values of inexh_austible collections and books at the Library are not readily detenninable, therefore, the Library has not capitalized them. For fiscal year 2002, the Library began recording its general fixed assets in the General Fixed Assets Account Group. This is a change in accounting principle. 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 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-Tenn Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. INTERFUND TRANSACTIONS The Library has the following type 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. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confonnity 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 COLLATERALIZAnON 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 - 11 - STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2: DEPOSITS AND INVESTMENTS 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13: 1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 pe.rcent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of 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, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORlZAnON OF DEPOSITS At June 30, 2002, the bank balances were $503,782.60. 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. ' - 12 - .. ' 7 STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERALP.URPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2: DEPOSITS AND INVESTMENTS 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, 2002, as follows: Risk Category Bank Balance 1 $ 439,465.73 2 64,316.87 3 0.00 Total $ 503,782.60 CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: Category 1 Insured or registered, or securities held by the Library or the Library's agent in the Library's name. Category 2 Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Library's name. Category 3 Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Library's name. At June 30, 2002, the carrying value of the Library's total investments was $34,319.44. The investments are classified as to risk categories as follows: Type of Investment Corporate Bonds Common Stock $ Unclassified Deferred Compensation Plan Pooled Investments Total Investments Risk Categories 2 3 Carrying Amount Fair Value 3600 $ 000 $ 000 $ 36.00 $ 36.00 34,283.44 34.283.44 $ 3431944 $ 3431944 Note 3: GENERAL FIXED ASSETS A summary of changes in the General Fixed Assets Account Group during the fiscal year are as follows: 13- STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 3: GENERAL FIXED ASSETS Equipment Balance July 1,2001 $ 0.00 Additions 1,083,667.06 Deductions 0.00 Balance June 30, 2002 $ 1.083,667.00 Note 4: 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 acts of God. The Library has obtained commercial insurance for risk ofloss 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 torts, assets and acts of God. The Library has not experienced any losses related to these risks 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 $ 15,000.00 $ 15,000.00 Note 5: 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 reimbursements 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 6: ACCUMULATED EMPLOYEES' LEAVE The Libraries full-time employees earn vacation leave according to their position and length of service 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 of twenty-five days. All unused - 14- STATESBORO REGIONAL LIBRARY EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 6: ACCUMULATED EMPLOYEES' LEAVE vacation leave is paid to employees upon retirement or termination of employment at their current rate of pay. See Note 1 - Compensated Absences Note 7: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2002 2001 2000 100% 100% 100% $ 77,272.23 $ 90,663.67 $ 89,589.65 - 15 - ,-------------------~~~ ~ c_ STATESBORO REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2002 AGENCY/FUNDING GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Materials Maintenance and Operations SCHEDULE "1" GOVERNMENTAL FUND TYPE GENERAL FUND $ 452,616.83 5,792.79 74,313.15 66,525.00 $ 599,247.77 See notes to the general-purpose financial statements. - 16- STATESBORO REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 2002 AGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program SCHEDULE "2" GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND $ ==~24,;,l,.6=5=1=.9::;,4 See notes to the general-purpose financial statements. - 17 - STATESBORO REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30, 2002 LOCAL SOURCES Boards of Education Bryan County Bulloch County Candler County City Governments Claxton Metter Statesboro Swainsboro County Governments Boards of Commissioners Bryan Bulloch Candler Emanuel Evans SCHEDULE "3" GOVERNMENTAL FUND TYPE GENERAL FUND- $ 2,000.00 49,440.00 21,250.00 664.92 24,329.79 53,400.00 88,400.01 166,169.96 289,060.08 25,987.44 99,649.13 73,265.59 $ 893,616.92 See notes to the general-purpose financial statements. - 18 - STATESBORO REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2002 SCHEDULE "4" NAME Akridge, Anderson, Asbell, Averett, Barker, Bell, Berry, Bishop, Bolton, Brannen, Bunch, Buxton, DeLoach, Durham, Ellis, Ethridge, Fay, Glisson, Gray, Gray, Gunter, Harris, Harrison, Herrington, Hodges, Howard, Hugensmith, Humphries, . Hutcheson, Joiner, Kinnion, Kramer, Krepel, Lee, Lewis, Looney, McCarthy, McDuffie, McKinley, Meadows, Mosley, Nelson, Nubern, Odom, Palmer, Polk, Rentz, Rickerson, Ross, Royal, Amanda Nancy Cameron Audrey Kathryn Tiffany Elaine John Virginia Betty Mary Ann Charlotte Jennifer Jennifer Leslie Cora Judy Brande William Gayle Rachel Lillie Mae David Melinda Anglenette Carolyn linder Patricia Mary Catherine Judith Johanna Marcia Sue Juanita Alice Evelyn Elaine William Jennifer Angela Virginia Nancy Nancy Judy Franchonda Mark Robert Angela Sandra TITLE CATEGORY SALARIES TRAVEL Student Assistant $ Library Assistant Student Assistant Library Assistant Library Manager Student Assistant Library Assistant Student Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Librarian library Assistant library Manager Librarian librarian Student Assistant Library Manager Library Assistant library Assistant library Assistant library Assistant Library Assistant Library Assistant library Assistant library Assistant Genealogy Coordinator Administrative Assistant BookkeepingfTechnical Service Library Assistant library Assistant Bookkeeping Assistant Library Assistant Library Assistant library Assistant literacy Coordinator library Assistant library Assistant library Assistant Student Assistant Library Assistant Library Manager Library Assistant Library Assistant Student Assistant librarian library Assistant Bookkeeper - 19 - 2,855.71 18,812.40 $ 4,716.94 4,513.15 21,673.62 1,135.58 12,865.23 2,858.26 363.08 6,717.83 6,282.61 15,620.00 11,441.66 50,984.64 1,556.86 20,688.72 57,308.86 56,708.86 535.60 26,270.40 5,445.21 629.75 18,636.78 19,018.00 609.71 18,915.20 20,786.17 20,210.49 33,591.96 8,046.50 20,251.60 2,155.56 491.32 24,774.80 6,652.74 2,120.01 10,308.78 23,607.97 4,526.71 625.61 9,892.64 84.98 6,254.50 16,829.28 17,449.60 746.75 1,780.62 50,384.64 795.68 39,561.60 46.39 378.09 84.00 40.88 23.80 1,889.09 279.44 533.21 417.20 185.36 63.84 31.92 80.64 554.55 14.56 162.96 STATESBORO REGIONAL LIBRARY SCHEDULE OF-SALARIES AND TRAVEL YEAR ENDED JUNE30, 2002 SCHEDULE "4" NAME Rutherford, Samer, Shatteen, Shipman, Smith, Stitt, Strauser, Strickland, Suddath, Sullivan, Sullivan, Taylor, Taylor, Weinberger, Whiddon, White, Williams, Williford, Yates, Zimmerman, Kenneth Linda Larry Kristen Fenecia Megan Nicholas Janice Shelby Karen Peter Don Toni Paul Shainia Timothy Ronnae Lora Leon Theresa Totals per Report TITLE CATEGORY Student Assistant Library Assistant Library Assistant Library Assistant Student Assistant Student Assistant Student Assistant Librarian Library Assistant Library Assistant Library Director Librarian Student Assistant Library Manager Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant SALARIES TRAVEL $ 1,134.29 13,158.61 1,345.50 3,568.98 95.28 427.45 1,282.36 50,384.64 $ 888.38 4,356.87 64,608.82 42,426.46 894.81 15,757.32 5,636.85 688.82 1,002.96 526.32 2,096.90 4,346.81 30.80 632.77 540.00 383.60 38.92 $ 923,723.60 $ ===6=,4=12=.=02== See notes to the general-purpose financial statements. - 20-