Statesboro Regional Library, Statesboro, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004

STATESBORO REGIONAL LIBRARY
STATESBORO, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

STATESBORO REGIONAL LIBRARY - TABLE OF CONTENTS -

FINANCIAL

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

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

3

B

STATEMENT OF ACTIVITIES

4

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUND

5

D

RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

6

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE

GOVERNMENTAL FUND

7

F

RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCE TO THE STATEMENT OF ACTIVITIES

8

G

STATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

9

H

NOTES TO THE BASIC FINANCIAL STATEMENTS

10

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND

18

SUPPLEMENTARY INFORMATION

SCHEDULES OF REVENUE

2

STATE

19

3

FEDERAL

20

4

LOCAL

21

5 SCHEDULE OF SALARIES AND TRAVEL

22

FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
June 30, 2005

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 BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements ofthe governmental activities and the major fund (Exhibits A through H) of the Statesboro Regional Library, as of and for the year ended June 30, 2004, which collectively comprise the Library's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Statesboro Regional Library's management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Statesboro Regional Library, as ofJune 30, 2004, and the respective changes in financial position thereoffor the year then ended in conformity with accounting principles generally accepted in the United States of America.

2004ARL-41

The Statesboro Regional Library has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements.
As described in Note 2, the Statesboro Regional Library has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004.
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 18 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Statesboro Regional Library's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic 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 of Georgia Annotated section 506-24.
Respectfully submitted,
-:o~K)-~ ~!sell W. Hinton State Auditor
RWH:as 2004ARL-41

STATESBORO REGIONAL LIBRARY

STATESBORO REGIONAL LIBRARY STATEMENT OF NET ASSETS JUNE 30. 2004
ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Local Federal Government Other Prepaid Items Capital Assets Capitalized Special Collections Equipment Library Collections Less: Accumulated Depreciation
Total Assets
LIABILITIES Accounts Payable
NET ASSETS Invested in Capital Assets, Net of Related Debt Unrestricted
Total Net Assets
Total Liabilities and Net Assets

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

383,512

221,748

23,753 2,183 136 1,051

18,000 221,977 2,221,090 -1,636,226

$ ===1;,,.,.4,;;;5;,;,7;;;;2,;;;,24,;,,,

$ _ _ __!:2:!::2.L..!1~33::..._

$

824,841

610 250

$ _ _____;1c,_4.:..:3c.::.51.:C0.:...91"'-

$ ===1=",4=5=7-=,2=24=

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

STATESBORO REGIONAL LIBRARY STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30 2004

EXHIBIT"B"

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR

GRANTS AND

SERVICES

CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

GOVERNMENTAL ACTIVITIES

Public Services Technical Services Support Services Maintenance and Operations Information Technology

$

1,058,592 $

96,457

416,011

159,721

15 481

68,857 $

529,810 $ 77,465

-459,925 -96,457
-416,011 -82,256 -15 481

Total Governmental Activities

$=~;1..,7;.4;6;,2,=62= $

General Revenues Allotments from Participating Governments Investment Earnings Miscellaneous

68 857 $

607 275 $ _ _ _...:1.c:,0..:.7.:.,0,..:.13:.:0:....

$

938,932

4,890

114 217

Total General Revenues

$ _ _ __:..1.::0.::.58=03::.;9::...

Change in Net Assets

$

-12,091

Net Assets - Beginning of Year

1447182

Net Assets - End of Year

$ ===,;,i14,;,;3;;,;:5;.;;0;;;;,9,;,.,1

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

STATESBORO REGIONAL LIBRARY BALANCE SHEET
GOVERNMENTAL FUND JUNE 30. 2004
ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Local Federal Government Other Prepaid Items
Total Assets
LIABILITIES AND FUND BALANCE LIABILITIES
Accounts Payable FUND BALANCE
Unreserved Undesignated Reported in: General Fund
Total Liabilities and Fund Balance

EXHIBIT"C"

GENERAL FUND

$

383,512

221,748

23,753 2,183 136 1,051

$

632,383

$ _ _ _22~,_13_3_ $ _ _ _6_10~,_25_0_ $ ===6=32='=38=3=

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

STATESBORO REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30. 2004

EXHIBIT"D"

Total Fund Balance - Governmental Fund (Exhibit "C")
Amounts reported for Governmental Activities in the Statement of Net Assets are different because:
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of:
Capitalized Special Collections Equipment Library Collections Accumulated Depreciation
Total Capital Assets

$

610,250

$

18.000

221,977

2,221,090

-1,636,226

824 841

Net Assets of Governmental Activities (Exhibit "A")

$ ======1.=43=5:!:,0=9=1

The notes to the basic financial statements are an integral part of this statement. -6-

STATESBORO REGIONAL LIBRARY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND YEAR ENDED JUNE 30. 2004

EXHIBIT"E"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology Facilities Acquisition and Construction
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending

GENERAL FUND

$

938,932

599,479

7,796

68,857

4,890

114,217

$ 1,734171

$

953,628

96,457

405,236

159,721

15,481

46 371

$ 1,676,894

$

57,277

552,973

$ ==6=1=0=,2=50=

The notes to the basic financial statements are an integral part of this statement. -7-

STATESBORO REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF
REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES JUNE 30. 2004

EXHIBIT"F"

Total Net Change in Fund Balance - Governmental Fund (Exhibit "E")

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:

Capital Outlay

$

Depreciation Expense

Excess of Depreciation Expense over Capital Outlay

$
101,706 -171 074

57,277 -69 368

Change in Net Assets of Governmental Activities (Exhibit "B")

$ ===-1=2=0=9=1

The notes to the basic financial statements are an integral part of this statement. -8-

STATESBORO REGIONAL LIBRARY STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS JUNE 30, 2004
ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others

EXHIBIT"G"
AGENCY FUNDS $ ======1,=79=9=
$ ======1,=79=9=

The notes to the basic financial statements are an integral part of this statement. -9-

STATESBORO REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"H"

Note 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY
REPORTING ENTITY
The Statesboro Regional Library (Library) operates pursuant to Official Code ofGeorgia 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 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 flow through 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.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Library's basic financial statements are collectively comprised of the Library-wide financial statements, fund financial statements and notes to the basic financial statements of the Statesboro Regional Library.
Library-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities of the overall Library, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Library's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the Library related to the administration and support ofthe Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs.

- 10 -

STATESBORO REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the Library's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds.
The Library reports the following major governmental fund:
General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library, except those resources required to be accounted for in another fund.
The Library reports the following fiduciary fund type:
Agency funds account for assets held by the Library as an agent for various funds, governments or individuals.
BASIS OF ACCOUNTING
The basis ofaccounting determines when transactions are reported on the financial statements. The Library-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants [and donations]. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The Library uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The Library considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Interest is considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds.
- 11 -

STATESBORO REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Library funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Library's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.

CHANGES IN ACCOUNTING PRINCIPLES

The Statesboro Regional Library has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004.

The provisions ofGASB Statement No. 34 require the inclusion ofa Statement ofNetAssets. The elements comprising Net Assets - Beginning include the following:

Governmental Funds July 1, 2003 Capital Assets
Balance July 1, 2003 Adjustments to Prior Year Balance Accumulated Depreciation

$ 552,973

$ 1,052,453 1,597,909

2,650,362 -1,756,153

Net Assets Beginning (See Exhibit "B") CASH AND CASH EQUIVALENTS

$ 1A471182

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 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 interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The

- 12 -

STATESBORO REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(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 ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
CAPITAL ASSETS
Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the Library-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method.

- 13 -

STATESBORO REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Capitalization thresholds and estimated useful lives of capital assets reported in the Library-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Equipment Library Collections Capitalized Special Collections

$

5,000 5 to 10 years

$

5,000

10 years

$

5,000

NIA

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.

Note 3: 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 ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of any one of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

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

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

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

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

- 14 -

STATESBORO REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"H"

Note 3: DEPOSITS AND INVESTMENTS

(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 or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $633,523. 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.)

The Library's deposits are classified by risk category at June 30, 2004, as follows:

Risk Category

Bank Balance

1

$ 481,853

2

111,670

3

40,000

Total

$======6"'=33-,5=2=3

CATEGORIZATION OF INVESTMENTS At June 30, 2004, the fair value of the Library's total investments was $37 and this entire amount consisted ofcommon stock which was insured or registered, or securities held by the Library or the Library's agent in the Library's name.

Note 4: CAPITAL ASSETS

The following is a summary of changes in the Capital Assets during the fiscal year:

- 15 -

STATESBORO REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "H"

Note 4: CAPITAL ASSETS

Balances July 1, 2003
(Restated)

Increases

Decreases

Balances June 30, 2004

Governmental Activities

Capital Assets, Not Being Depreciated:

Capitalized Special Collections

$

18 000 $

0 $

0 $

18,000

Capital Assets Being Depreciated Equipment Library Collections

$ 221,977 2,410,385 $

I01,706 $

$ 221,977

291,001

2,221,090

Less Accumulated Depreciation for: Equipment Library Collections

134,416 1,621,737

21,447 149,627

291,001

155,863 1,480,363

Total Capital Assets, Being Depreciated, Net $

876,209 $

-69,368 $

0 $ 806,841

Governmental Activity Capital Assets - Net $

894,209 $

-69 368 $

0 $ 824,841

Current year depreciation expense by function is as follows:

Public Services Support Services

$ 162,597 8 477

$=~1~71~0~7~4

Note 5: 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,job related illness or injuries to employees and flood damage to periodicals. 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 acts ofGod, except for flood damage to periodicals. 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

$

15,000

$

15,000

- 16 -

STATESBORO REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT"H"

Note 6: SIGNIFICANT 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 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

2004 2003 2002

100% 100% 100%

$

81,548

$

82,677

$

77,272

- 17 -

STATESBORO REGIONAL LIBRARY GENERAL FUND
SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL
YEAR ENDED JUNE 30. 2004

SCHEDULE "1"

REVENUES
Local Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Public Services Technical Services Support Services Maintenance and Operations Information Technology Facilities Acquisition and Construction
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

$

937,324 $

937,324 $

938,932

593,724

593,724

599,479

7,796

40,467

40,467

68,857

4,890

31 650

31,650

114 217

$

1,603,165 $

1 603 165 $

1,734,171

$

877,388 $

877,388 $

953,628

95,611

95,611

96,457

431,317

431,317

405,236

168,805

168,805

159,721

30,044

30,044

15,481

46,371

$

1,603 165 $

1,603,165 $

1 676,894

$

0 $

0 $

57,277

552 973

552,973

552,973

Fund Balance - Ending

$

552 973 $

552,973 $==~6;,;,1,;;.0~25~0;,.

Notes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 18 -

STATESBORO REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2004
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 "2"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

482,388

2,625

37,001

77 465

$ ====5=9==9=4=79===

See notes to the basic financial statements.

- 19 -

STATESBORO REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30, 2004
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 "3"
GOVERNMENTAL FUND TYPE GENERAL FUND
$ ============7=7=9=6=

See notes to the basic financial statements.

- 20 -

STATESBORO REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE YEAR ENDED JUNE 30. 2004
LOCAL SOURCES County Boards of Education Bryan County Bulloch County Candler County City Governments Claxton Metter Swainsboro County Governments Boards of Commissioners Bryan Bulloch Candler Emanuel Evans

SCHEDULE "4"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

3,500

10,000

21,250

698 28,723 96,696

180,152 381,500
30,000 97,274 89139

$ ====9=3==8=,9==32=

See notes to the basic financial statements.

- 21 -

NAME
Anderson, Nancy K. Asbell, Cameron M. Atkinson, Jack Barker, Kathryn T. Berry, Elaine D. Bolton, Virginia F. Bragg, Alicia Kim Bunch, Mary Louise Butler, Anne S. Buxton, Ann C. Carter, Andrea L. Cobb, April Lynn DeFoe, Adrienne L. Deloach, Charlotte 8. Deloach, Stacy Renee Durham, Jennifer M.
Fay, Cora E.
Glisson, Judy C. Gray, William D. Griffin, Maxine Rose Gulston, Tantrell C. Hall, Kimberly 8. Harrison, Lillie Mae Herrington, David Ellis Hodges, Melinda A. Hooks, Chelsie Brianne Howard, Anglenette R. Howard, Tiffany D. Hugensmith, Carolyn G. Humphries, Linder A. Hutcheson, Patricia B. Johnson, LaTashaR. King, Vicki Lynn
Kinnion, Judith E.
Lee, Shannon L. Lee, Sue F. Looney, Alice R. McCarthy, Evelyn C. McDuffie, Elaine H. Meadows, Rachel M. Moree, Rachel D. Mosley, Angela J. Nubern, Nancy D. Odom, Nancy B. Palmer, Judy D. Pierce, Shinika S. Pierre, Richard L. Polk, Franchonda A. Rickerson, Robert J. Roberts, Lois M. Royal, Sandra G. Rutherford, Kenneth S. Samer, Linda H. Scott, Patti C. Shipman, Kristen R. Stapleton, Jillian L. Strickland, Janice W. Suddath, Shelby K. Sullivan, Karen A. Sullivan, Peter G. Taylor, Don V.

STATESBORO REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 2004

SCHEDULE "5"

TITLE CATEGORY
Library Assistant Library Assistant Library Manager Library Manager Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Student Assistant Student Assistant Library Assistant Student Assistant Librarian Librarian Librarian Library Manager Library Assistant Student Assistant Library Assistant Library Assistant Library Assistant Library Assistant Student Assistant Library Assistant Student Assistant Library Assistant Library Assistant Genealogy Coordinator Student Assistant Library Assistant Bookkeeping/Tech Services Library Assistant Bookkeeping Assistant Library Assistant Library Manager Literacy Coordinator Student Assistant Student Assistant Library Assistant Library Assistant Library Manager Library Assistant Student Assistant Student Assistant Student Assistant Librarian Library Director Bookkeeper Student Assistant Library Assistant Library Assistant Student Assistant Student Assistant Librarian Student Assistant Library Assistant Library Director Librarian
- 22 -

SALARIES

TRAVEL

$

20,344

14,316

8,667

23,338 $

7,560

3,597

4,468

3,437

1,508

16,786

2.503

2,956

798

11,347

1,461

54,571

59,815

58,975

15,438

9,471

2,332

420

19,317

20,552

12,168

301

20.448

1,050

22,465

21,841

14,898

4,008

37

21,903

1,271

26,725

849

20,254

27,335

247

713

20,136

8,153

17,942

17,467

1,263

400

2,452

53,971

31,100

42,099

1,693

9,964

3,583

3,539

706

55,590

1,962

5,111

35,775

47,263

356 73
16 1,066
199 78
277
35 121 1,892
14 57
743
1,030 40

NAME
Thompson, Jane Travel!, Johnny C. Walden, Jacques Weinberger, Paul Whiddon, Shainia A. Williford, Lora C.
Totals per Report

STATESBORO REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 2004

SCHEDULE "5"

TITLE CATEGORY
Library Assistant Student Assistant Student Assistant Library Manager Library Assistant Library Assistant

SALARIES

TRAVEL

$

832

46

1,446

16,958 $

147

7,551

5 810

$

953,302 $ ===~6~1,;;;44;;;,

See notes to the basic financial statements.

- 23 -