Audit report, Troup-Harris-Coweta Regional Library, Lagrange, Georgia, year ended June 30, 1994

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

AUDIT REPORT TROUP-HARRIS-COWETA REGIONAL LIBRARY
LAGRANGE, GEORGIA YEAR ENDED JUNE 30, 1994

TROUP-HARRIS-COWETA REGIONAL LIBRARY - 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

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

15

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

1 ANALYSIS OF CASH AND CASH EQUIVALENTS

18

2 INVESTMENTS

19

3 ACCOUNTS RECEIVABLE

20

SCHEDULE OF REVENUE

4

STATE

21

5

FEDERAL

22

6

LOCAL AND OTHER

23

TROUP-HARRIS-COWETA REGIONAL LIBRARY - TABLE OF CONTENTS -

Page SECTION I ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

24

8 MEMBERSHIP OF LIBRARY BOARD

25

9 SCHEDULE OF SALARIES AND TRAVEL

26

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION ID PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~epartmeut nf J\uhits
254 WASHINGTON STREET, S. W. ROOM 214
J\thmbt, enrgia 30334-8400
January 27, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Troup-Harris-Coweta Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Troup-Harris-Coweta Regional Library, as ofand for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
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 financial 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 of this variance or omission have not been determined, but are believed to be material.
94ARL-42

In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Troup-Harris-Coweta Regional Library as ofJune 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Troup-Harris-Coweta Regional Library taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules I through 9), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Troup-Harris-Coweta Regional Library. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available
to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~rL
Claude L. Vickers State Auditor
CLV:jy 94ARL-42

TROUP-HARRIS-COWETA REGIONAL LIBRARY -I-

TROUP-HARRIS-COWETA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1994

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable Amount to be Provided in Future Years
For Payment of Compensated Absences

ACCOUNT

GOVERNMENTAL FUND TYPES

FIDUCIARY GROUP

----------------------------------- FUND TYPE ----------

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

TOTAL

GENERAL REVENUE PROJECTS EXPENDABLE LONG-TERM (Menorandum

FUND

FUND

FUND TRUST FUND DEBT

Only)

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

$134,534.88$ 11,470.95$ 1,522.20$ 1,518.00

$ 149,046.03

5,179.48

1,575.00

6,754.48

2,860.00

2,860.00

$ 26,906.08

26,906.08

Total Assets

$139,714.36$ 14,330.95$ 1,522.20$ 3,093.00$ 26,906.08$ 185,566.59
========== ===== ========= ========= ========= ===========

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Deferred Revenue Canpensated Absences

$ 11,355.82 $10,824.42 3,506.53

$
$ 26,906.08

22,180.24 3,506.53 26,906.08

Total liabilities

$ 11,355.82 $14,330.95

$26,906.08$ 52,592.85

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects
Unreserved Undesignated

$128,358.54$

$ 1,522.20

0.00

0.00 $ 3,093.00

$ 1,522.20 131,451.54

Total Fund Equity

$128,358.54 $ 0.00 $ 1,522.20$ 3,093.00

$ 132,973.74

Total Liabilities and Fund Equity $139,714.36$ 14,330.95 $ 1,522.20 $ 3,093.00$ 26,906.08$ 185,566.59
=========== ========== ========== ========== ========== =============
The notes to the general purpose financial statements are an integral part of this statement.
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TROUP-HARRIS-COWETA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

GOVERNMENTAL FUND TYPES

-----------------SP-E-C--IA-L------C--A-P-IT-A-L------------------

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

FIDUCIARY FUND TYPE
EXPENDABLE TRUST FUND

TOTAL (Memorandum
Only)

REVENUES

State Funds Federal Funds Local and Other Funds

$ 397,692.50 $ 69,797.47

$ 467,489.97

24,493.00

24,493.00

602,328.18

$100,196.72 702,524.90$

$ 467,489.97 24,493.00
69.00 702,593.90

Total Revenues

$1,000,020.68$ 94,290.47 $100,196.72 $1,194,507.87 $ 69.00 $1,194,576.87

EXPENDITURES

Current Program Services Technical Services Circulation Adninistration Maintenance and Operations
Capital Outlay

$ 370,204.56 $ 52,621.82

$ 422,826.38$

94,696.62

94,696.62

107,983.95 37,379.06

145,363.01

319,029.04 5,245.10

324,274.14

99,738.61

99,738.61

$137,269.87 137,269.87

0.00 $

422,826.38 94,696.62
145,363.01 324,274.14
99,738.61 137,269.87

Total Expenditures

$ 991,652.78$ 95,245.98 $137,269.87 $1,224,168.63 $

0.00 $1,224,168.63

Excess of Revenues over (under) Expenditures

$ 8,367.90$ -955.51 $-37,073.15 $ -29,660.76 $ 69.00 $ -29,591.76

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ -31,165.00
-------------

Total Other Financing Sources (Uses)

$ -31,165.00
-------------

Excess of Revenues and Other Financing

Sources over (under) Expenditures and

Other Financing Uses

$ -22,797.10 $

$ 31,165.00 $ 31,165.00 -31,165.00
---------- -------------

$ 31,165.00 $

0.00

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

-955.51 $ -5,908.15 $ -29,660.76 $

$ 31,165.00 -31,165.00
-------------

$

0.00

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

69.00 $ -29,591.76

FUND BALANCE JULY 1

148,923.65

955.51 9,662.34 159,541.50 3,024.00 162,565.50

Residual Equity Transfer

2,231.99

-2 ,231. 99

0.00

0.00

FUND BALANCE JUNE 30

$ 128,358.54 $

0.00 $ 1,522.20$ 129,880.74 $ 3,093.00$ 132,973.74

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

The notes to the general purpose financial statenents are an integral part of this statenent. - 3-

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

EXHIBIT "C"

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

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 467,489.97 $ 397,692.00 $ 69,797.97

24,493.00

3,000.00

21,493.00

702,524.90 902,539.00 -200,014.10

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

$1,194,507.87 $1,303,231.00 $ -108,723.13

$ 422,826.38 $ 395,898.21 $ -26,928.17

94,696.62

94,874.95

178.33

145,363.01

93,158.52 -52,204.49

324,274.14 575,710.45 251,436.31

99,738.61

146,197.75

46,459.14

137,269.87

2,939.00 -134,330.87

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

$1,224,168.63 $1,308,778.88$ 84,610.25

$ -29,660.76 $ -5,547.88 $ -24,112.88

$ 31,165.00 $ 18,916.00 $ 12,249.00

-31,165.00

-20,316.00

-10,849.00

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

$

0.00 $ -1,400.00 $ 1,400.00

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

$ -29,660.76 $ -6,947.88 $ -22,712.88

159,541.50

244,836.46

-85,294.96

FUND BALANCE JUNE 30, 1994

$ 129,880.74$ 237,888.58$ -108,007.84
============= ============= =============

The notes to the general purpose financial statements are an integral part of this statement.
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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXIDBIT D 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Troup-Harris-Coweta Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The more significant ofthe Library's accounting policies are described below.

REPORTING ENTITY

In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Troup-Harris-Coweta Regional Library is determined to be a joint venture.

The Library Board consists of seven members; one member appointed by the City ofLaGrange, one member appointed by the Grantville Library Board, one member appointed by the Harris County Library Board, one member appointed by the Hogansville Library Board, one member appointed by the Newnan-Coweta Library Board, one member appointed by the Troup County Board of Commissioners and one member appointed by the Troup County Board ofEducation. The 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 of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.

The Troup-Harris-Coweta Regional Library is located in LaGrange, Georgia, and serves Coweta, Harris and

Troup Counties.



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.

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account 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:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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, private organiz.ations, other government units and/or other funds. This fund includes:
EXPENDABLE TRUST FUND Endowment Fund - the fund used to account for the principal and earnings which may be expended to provide financial resources to be used whenever an emergency arises in the Library for the purpose of keeping it open continuously.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences not appropriately accounted for and recorded in other fund types.

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and 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. Other liabilities which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds and the expendable trust fund 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.
BUDGET
Troup-Harris-Coweta Regional Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services, as a part of the Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings accounts and N. 0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS Investments made by the Library are stated at cost. Donated investments are stated at fair market value as of the date donated.
RECEIVABLES
Receivables consist of grant reimbursements due from Federal grantor for expenditures made but not reimbursed. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the needfor 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 been recorded in the individual funds for the current portion ofthis obligation.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbunements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Residual equity transfen are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfen are recorded for all interfund transactions other than residual equity transfers and reimbursements.

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
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 ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination ofthe following:
(I) 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 ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any 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.
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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $243,273.51. The amounts of the total bank balances are classified into three categories of credit risk:

Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

The Library's deposits are classified by risk category at June 30, 1994, as follows:

Risk Category
I 2 3
Total

Bank Balance
$ 175,926.59 67,346.92 0.00
$ 243,273.51

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount ofthe Library's total investments was $6,754.48 and this entire amount was insured or registered, or securities held by the Library or its ~ent in the Library's name. The market value ofthese investments was $32,698.25.

Note 3: RISK MANAGEMENT

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

Note 4: GENERAL LONG-TERM DEBT

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

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 4: GENERAL LONG-TERM DEBT
Balance July 1, 1993 Additions
Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-related Fnnge Benefits (*)
Balance June 30, 1994

Compensated Absences $ 23,370.15
1,623.89 1,912.04 $ 26,906.08

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

Note 5: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Library had encumbrances in the amount of$53,490.53 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. Lottery funds in the amount of $52,702.53 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

Media Center and Library Equipment

$ 53,490.53

The following is an analysis of significant outstanding construction or renovation contracts executed by the Library as of June 30, 1994, together with funding available:

Project

Unearned Executed Contracts

Funding Availabfe From State

7412-94S-SB-004

$ 74,098.00 $ 1,999.044 00

These amounts 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 financial position.

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7 : ACCUMULATED El\.1PLOYEES LEAVE
The Library's full and part-time employees earn annual leave at a rate approved by the Library, with maximum accumulation of30 days and 15 days, respectively. Employees upon retirement or termination are paid, at their current rate of pay, for unused accumulated annual leave up to the allowed maximum accumulations. See Note 1- Compensated Absences
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or de~th.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payrolffor employees covered by TRS for the year ended June 30, 1994, was $457,441.49; total payroll was $537,369.29.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
- 12 -

TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: RETIREMENT PLANS

Total contributions made during fiscal year 1994 amounted to $81,469.80, of which $54,023.40 was made by the Library and $27,446.40 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292 000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of $54,023.40 was actuarially determined and represented .0103% of total contributions made by all participating employers.

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

Note 9: SURETY BONDS

The Library Director, Mr. Gerald C. Becham and other Library employees are bonded in the amount of $20,000.00 with the Utica National Insurance Group, New Hartford, New York, their Bond No. 1720431, on which premium was paid through November 26, 1994.

- 13 -

TROUP-HARRIS-COWETA REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1994

EXHIBIT "E"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Deferred Revenue
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT
TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$ 13,554.28 $

$ 13,554.28

2,860.00

2,860.00

$ 13,554.28$ 2,860.00$ 16,414.28
============= ============= =============

$ 2,083.33 $ 2,083.33

$ 10,047.75

776.67

10,824.42

3,506.53

3,506.53

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

$ 13,554.28 $ 2,860.00 $ 16,414.28
------------- ------------- -------------

$

0.00 $

0.00 $

0.00

$ 13,554.28$ 2,860.00 $ 16,414.28
============= ============= =============

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "F"

REVENUES
--------
State Funds Federal Funds
Total Revenue
EXPENDITURES
------------
Current Program Services Circulation Administration
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
-------------------
FUND BALANCE JUNE 30

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCT! ON
ACT
TITLE I PUBLIC
LIBRARY SERVICES

TOTAL

$ 69,797.47

$ 69,797.47

$ 24,493.00

24,493.00

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

$ 69,797.47 $ 24,493.00 $ 94,290.47
------------ ------------ -------------

$ 32,418.41 $ 20,203.41 $ 52,621.82

37,379.06

37,379.06

5,245.10

5,245.10

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

$ 69,797.47 $ 25,448.51 $ 95,245.98
------------ ------------ -------------

$

0.00 $ -955.51 $

-955.51

0.00

955.51

955.51

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

$

0.00 $

0.00 $

0.00

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

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

7412-94S-SB-004 7412-91-SB-009

TOTAL

$

0.00 $

1,522.20$

0.00 $ 1,522.20

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

FUND EQUITY

Reserved For State Capital Outlay Projects

$

0.00 $

1,522.20$

0.00 $ 1,522.20

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

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

7412-94S-SB-004 7412-91-SB-009

TOTAL

REVENUES

Local and Other Funds

$

0.00 $

100,100.86$

95.86 $ 100,196.72

EXPENDITURES

Capital Outlay Professional and Technical Services$ Equipment Other

0.00 $

133,052.89 $ 369.28

908.70 $ 2,939.00

133,961.59 2,939.00 369.28

Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)

$

0.00 $

133,422.17 $

3,847.70 $ 137,269.87

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

$

0.00 $

-33,321.31 $

-3, 751. 84 $ -37,073.15

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

Operating Transfers In Operating Transfers Out

$

34,843.51

$ -3,678.51

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

Total Other Financing Sources (Uses)

$ -3,678.51 $

34,843.51

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

Excess of Revenues and Other Financing

Sources over (under) Expenditures and

Other Financing Uses

$

-3,678.51 $

1,522.20 $

FUND BALANCE JULY 1

3,678.51

0.00

$ 34,843.51 -3,678.51
-------------
$ 31,165.00
-------------

-3,751.84 $ 5,983.83

-5,908.15 9,662.34

Residual Equity Transfer

-2,231.99

-2,231.99

FUND BALANCE JUNE 30

$

0.00 $

1,522.20$

0.00 $ 1,522.20

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

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "l"

INTEREST BEARING ACCOUNTS
Bank of Troup County, LaGrange, Georgia
Certificate of Deposit No. 3246 (3.90%)
Commerical Bank and Trust Company, LaGrange, Georgia
N.O.W. Account (2.75%)
First Federal Savings and Loan Association, LaGrange, Georgia
Passbook Savings Account (2.75%)
NationsBank, LaGrange, Georgia
Commercial Bonus Checking (1.95%) Commercial Market Investment (2.6%)
OTHER
Petty Cash

$ 9,177.56 1,522.20 6,962.52
117,198.24 13,920.51 $ 148,781.03
265.00
$ 149,046.03

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY INVESTMENTS
JUNE 30 1 1994
STOCKS
Georgia Power Company Preferred 15 Shares, 4.60% (Market Value $851.25)
NationsBank Common 619.893 Shares (Market Value $31,847.00)

SCHEDULE "2"

$

1,575.00

5,179.48

$ 6,754.48
=============

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30 1 1994
Georgia Department of Education Federal Program Library Services and Construction Act Title I - Public Library Services

SCHEDULE "3"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ 2,860.00
=============

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

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

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 232,908.50 84,692.00 80,092.00
$

$ 232,908.50 84,692.00 80,092.00

69,797.47

69,797.47

$ 397,692.50$ 69,797.47 $ 467,489.97
============= ============= =============

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 1994
AGENCY/FUNDING Education, U. S. Department of
Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services

SCHEDULE "5"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND
$ 24,493.00
=============

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY SCHEDULE OF LOCAL ANO OTHER REVENUE
YEAR ENDED JUNE 30. 1994

SCHEDULE 611 11

LOCAL SOURCES Boards of Education Harris County Troup County
City Governments Grantville Hogansville LaGrange
County Governments Boards of Commissioners Harris Troup
Public Libraries Harris County Hogans vi 11 e Newnan-Coweta County Senoia-East Coweta County
OTHER SOURCES Dividends Donations Fines and Fees Interest Earned Reimbursements For Book Purchases For Lost and Damaged Books Sales and Services Photocopy Services Sale of Property Sale of Used Books

GOVERNMENTAL FUND TYPES

FIDUCIARY

---------------------------- FUND TYPE CAPITAL -------------

GENERAL

PROJECTS

EXPENDABLE

FUND

FUND

TRUST FUND

TOTAL

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

$

2,792.00

6,647.00

720.00 29,286.00 138,400.00 $

50,000.00

$

2,792.00

6,647.00

720.00 29,286.00 188,400.00

74,819.60 42,916.08

50,000.00

74,819.60 92,916.08

1,400.00 10,986.00 16,210.00
720.00

1,400.00 10,986.00 16,210.00
720.00

562.09 237,816.25
13,464.54 3,076.60

$ 196.72

69.00

631.09 237,816.25
13,464.54 3,273.32

10,000.00 765.27

10,000.00 765.27

9,104.03

9,104.03

496.67

496.67

2,146.05

2,146.05

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

$ 602,328.18 $ 100,196.72 $

69.00 $ 702,593.90

============= ============= ============= ---==========

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

SCHEDULE "7"

EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer and Cleaning Services Property Services Insurance Communications Other Purchased Services Supplies Energy Library Books and Materials Dues, Fees and Subscriptions Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

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

$ 537,369.29 146,563.13 4,250.10 11,060.00 $ 2,465.54 25,781.51 10,484.00 9,699.54 1,252.17 33,944.76 62,350.63 135,917.13 996.50 2,968.08

$ 446.31
37,041.91 7,160.62

537,369.29 146,563.13
4,250.10 11,506.31
2,465.54 25,781.51 10,484.00 9,699.54 1,252.17 70,986.67 62,350.63 143,077.75
996.50 2,968.08

6,550.40

50,597.14

57,147.54

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

$ 991,652.78 $ 95,245.98$ 1,086,898.76
============= ============= =============

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30, 1994
BOARD MEMBER ADDRESS
Dr. William B. Fackler, Chairperson(*) 303 Smith Street LaGrange, Georgia 30240
Col. James W. Boddie(*) 2272 Greenville Road LaGrange, Georgia 30240
Mrs. Jane Chambless 640 Neely Road Sharpsburg, Georgia 30277
Mr. John Hines (*) P. 0. Box 608 Hogansville, Georgia 30230
Mr. Joseph Kennebrew(*) P. 0. Box 314 Hamilton, Georgia 30240
Mr. Edward L. Long, Jr. (*) P. 0. Box 508 LaGrange, Georgia 30241
Mrs. Kathy Shel 1 (*) 213 Jackson Street Newnan, Georgia 30263
Mrs. Shelly Smith(*) 1200 Grandma Branch Road Grantville, Georgia 30220
(*) Denotes Board Members Servings as of June 30, 1994

SCHEDULE 811 11

See notes to the general purpose financial statements. - 25 -

TROUP-HARRIS-COWETA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1994

SCHEDULE "9"

PERSONNEL
---------

Allen, Andrews, Arndt, Becham, Boner, Bonner, Cain, Cosper, Cotton, Cumberlander, Davis, Denney, Ellis, Gates, Gay, Graffagnino, Herbert, Hester, Hornsby, Johnson, Kline, Little, Magnan, Martin, Mitchell, Mitchell, Mitchell, Mullins, Murrell, Patton,
Quester, Reed, Reeves, Rowe, Sambula, Sams,
Sams, Schuyler, Shipman, Sims, Sledge, Smith, Smith, Snyder, Thrailkill,
Wells, Whedon, Wheeler,
White, Williams, Yates, Zens,

Margaret T. Virginia Lisa A. Gerald C. Marion C. Elizabeth D.
Jennifer E. Horace C. Lawanda Anne Carolyn R. Elaine R. Datha L. Barbara K. Janice J. Patricia L. Ann M. Catherine L. Charlotte D.
Leslie Donna S. Brandy L. Sharon K. Overton J. Barbara B. Karen S. Susan A. Wi 11 i am J. Jennifer J. Elizabeth A. Stacy L. Elvira L. Tabatha A. Connie J. Janice M. Marion T. Lisa A. Vicky C. Dorothy Martha C.
Elizabeth s.
Suzanne M. Alice Dale Brown
Brenda D. Cindy S. Andrea Leigh Sandra M. Gregory B. Betty C. Laura P. Jackie D. Kathleen W. Clare P.

P-O--S-IT-I-O-N-

SALARIES

TRAVEL

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

Clerk

$ 11,445.00

Custodian

3,851.00

Clerk

1,020.00

Director

44,186.40 $

2,262.93

Librarian

34,589.15

Clerk

8,391.50

Clerk

7,426.00

Custodian

10,480.00

Clerk

2,824.75

Librarian

37,972.80

Clerk

6,162.55

22.00

Branch Assistant

9,926.92

Homework Assistant

60.00

Bookmobile Driver

3,050.00

Librarian and Public Relations

38,306.80

408.55

Branch Assistant

22,921.92

44.00

Clerk

3,244.91

Bookkeeper

16,114.50

182.25

Clerk

1,033.82

Homework Assistant

900.00

Clerk

3,186.42

Clerk-Typist

12,856.00

Clerk

5,615.00

Homework Assistant

1,110.00

Librarian

11,000.00

Homework Assistant

600.00

Assistant Director

41,396.60

1,181.56

Clerk

446.25

Clerk

1,525.75

Homework Assistant

990.00

Clerk

811. 25

Clerk

717.20

Clerk-Typist

15,006.00

Bookmobile Drive

14,832.50

Homework Assistant

12,005.00

Clerk

13,776.00

Clerk

973.25

Homework Assistant

1,110.00

Homework Assistant

1,020.00

Circulation Assistant

18,798.00

Clerk

5,179.70

Clerk

980.00

Clerk-Typist

12 t 701. 00

Clerk

13,776.00

Clerk

7,643.00

Clerk

17,533.92

Clerk

306.00

Custodian

5,244.00

Bookmobile Driver

1,576.35

Clerk

11,655.00

Bookkeeper

3,263.88

Librarian

35,827.20

148.81

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

$ 537,369.29 $ 4,250.10
============= =============

See notes to the general purpose financial statements. - 26 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

TROUP-HARRIS-COWETA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7412-93-01
The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation ofduties in the performance ofaccounting functions and related procedures. During the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
GENERAL FIXED ASSETS Fallure to Maintain General Fixed Assets Account Group Audit Control Number 7412-93-02
The audit report for the year ended June 30, 1993, noted that the management ofthe Troup-Harris-Coweta Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, no action was taken by the Library to establish this account group. This condition results in the general purpose financial statements ofthe 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 of land, 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.

SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

TROUP-HARRIS-COWETA REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 7412-93-01
We concur with this finding, however due to current budgetary constraints, the Library is unable to hire the additional staff required to clear this finding. The Library feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7412-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff the Library has decided not to pursue the recording of general fixed assets on the financial statements.