Audit report, Troup-Harris-Coweta Regional Library, LaGrange, Georgia, year ended June 30, 1997

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AUDIT REPORT TROUP-HARRIS-COWETA REGIONAL LffiRARY
LAGRANGE, GEORGIA YEAR ENDED JUNE 30, 1997

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET
ATLANTA, GEORGIA 30334-8400

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

SECTION I

FINANCIAL

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

EXlllBITS

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

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

SCHEDULES

SCHEDULE OF REVENUE

1

STATE

18

2

FEDERAL

19

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAM

20

4 SCHEDULE OF SALARIES AND TRAVEL

21

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 9, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
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 accompanying general-purpose fmancial statements of the Troup-Harris-Coweta Regional Library, as ofand for the year ended June 30, 1997, as listed in the table of contents. These generalpurpose fmancial statements are the responsibility of the Troup-Harris-Coweta Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose 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.
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 respect 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 ofthis variance or omission have not been determined, but are believed to be material.
97ARL-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 referred to above present fairly, in all material respects, the financial position of the Troup-Harris-Coweta Regional Library as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Troup-Harris-Coweta Regional Library taken as a whole. The accompanying combining statements (Exhibits E and F) and the 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 fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose fmancial statements and in our opinion is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:ds 97ARL-42

TROUP-HARRIS-COWETA REGIONAL LIBRARY

TROUP-HARRIS-COWETA REGIONAL LIBRARY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1997

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

$ 225,997.89 $

0,00 $

2,142.61

9,599.16

Total Assets

$ 235,597.05 $

0.00 $ =====2:.,1:1=4=2=.6=1

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

2,142.61

$ 235,597.05 $ _ _---::O::.::.O~O

0.00

$ 235,597.05 $

0.00 $ _----=2=,1.;...4=2=.6;.;...1

Total Liabilities and Fund Equity

$ 235,597.05 $

0.00 $ =====2:.,1=4=2=.6=1

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

EXHIBIT "A"

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30. 1997 JUNE 30, 1996

$

1,725.00

$ 229,865.50 $ 514,466.06

1,575.00

11,174.16

9,453.31

199,904.00

$

31,767.45

31,767.45

25,808.00

$ ===3:;::;,3~0~0~.0~0 $ ====3=1.7=6..7..=.4=5 $

272,807.11 $

749.631.37

$

4,406.96

135,118.55

$

3:.1:.1,;,7:.:6:.:.7:,.:.4.::.5 $ _ _3;.,.1""",7"",6..;.,7.;.;,4,;.,5

25,808.00

$

31 ,767.45 $

31,767.45 $ 165,333.51

$ _ _--'3=,3;;;;.;;0;.;:.0=.0.;;..,0

$

3=,3;;;;.;;0;.;:.0=.0.;;..,0

$

1,334.55

$

2.142.61

238,897.05

582,963.31

$ 241,039.66 $ 584,297.86

$ ===3=,3=0=0=,0==0 $ ===.,;;;3.;:1.~76;;,;,7==.4~5$

272.807.11 $

749,631.37

-3-

TROUP-HARRiS-COWETA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENPITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRusr FUND YEAR ENDED JUNE 30. 1997

REVENUES
State Funds Federal Funds 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)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

$ 445,419.25 $ 404,500.29

10,550.00 18,000.00
$

$ 849,919.54 $ 28,550.00 $

2,758.09 2,758.09

$ 248,748.04 $ 99,631.15
127,532.55 272,543;17
83,702.70

1,334.55
28,550.00 $

362,495.42

$ 832,157.61 $ 29,884.55 $ 362,495.42

$ 17,761.93 $ -1,334.55 $ -359,737.33

$ -14,969.59 $ -14,969.59

$ 14,969.59 $ 14,969.59

$ 2,792.34 $ -1,334.55 $ -344,767.74

232,804.71

1,334.55 346,910.35

$ 235,597.05 $====0=.0.0.... $ 2,142.61

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, 1997 JUNE 30, 1996

$ 455,969.25

$

18,000.00

407,258.38 $ _ _-..-;5_1__.7__5

$ 881,227.63 $ _ _-..-;5_1__.7_-'-5 $

455,969.25 $ 18,000.00
407,310.13

1,817,375.35 18,272.45
469,804.48

881,279.38 $ 2,305,452.28

$ 250,082.59 $ 99,631.15
127,532.55 301,093.17
83,702.70 362,495.42
$ 1,224,537.58 $
$ -343,309.95 $

0.00 $

250,082.59 $ 99,631.15
127,532.55 301,093.17
83,702.70 362,495.42

254,476.75 94,422.66
113,559.00 262,797.49
64,463.98 2,297,417.46

0.00 $ 1,224,537.58 $ 3,087,137.34

51.75 $ -343,258.20 $ -781,685.06

$ 14,969.59 -14,969.59

$

0.00

$ -343,309.95 $ 581,049.61

$ 14,969.59 -14,969.59

$

0.00

51.75 $ -343,258.20 $ -781,685.06

3,248.25

584,297.86 1,365,982.92

$ 237,739.66 $

3,300.00 $ 241,039.66 $ 584,297.86

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THIS PAGE LEFT BLANK

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

EXHIBIT "C"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1996
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 456,001.72 $ 445,419.25 360,947.00 404,500.29
$ 816,948.72 $ 849,919.54

$ 251,141.00 $ 99,809.00
130,991.72 267,644.90
85,044.00

248,748.04 99,631.15 127,532.55
272,543.17 83,702.70

$ 834,630.62 $ 832,157.61

$ -17,681.90 $ 17,761.93

$ 20,316.00 -3,386.00 $ -14,969.59
$ 16,930.00 $ -14,969.59
$ -751.90 $ 2,792.34 226,840.73 232,804.71 5,967.12

FUND BALANCE JUNE 30,1997

$ 232,055.95 $ 235,597.05

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 10,550.00 $ 18,000.00 18,000.00
$ 18,000.00 $ 28,550.00

$

55.35 $ 1,334.55

18,000.00 28,550.00

$ 18,055.35 $ 29,884.55

$

-55.35 $ -1,334.55

$

-55.35 $ -1,334.55

1,334.55

1,334.55

$ 1,279.20 $======0=.0=0

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

TROUP-BARRIS-COWETA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Troup-Harris-Coweta Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, 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 ofeight members; one member appointed by the City of LaGrange, 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 Senoia Area Library Board, one member appointed by the Troup County Board ofCommissioners 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 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 funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Troup-Harris-Coweta 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.
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 fmancial statements account for all State, Federal and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
-8-

TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 organizations, other government units and/or other funds. This fund includes:
EXPENDABLETRUSTFUND 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.
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 ofthese funds present increases (Le., 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.
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TROUP-HARRIS-COWETA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (Le., 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
The Troup-Harris-Coweta 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 ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Donated investments are stated at fair market value as of the date donated.

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 fmancial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has 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.
INTERFUND TRANSACTIONS
The Library has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being

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TROUP-HARRIS-COWETA REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS
secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(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 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.
CATEGORIZAnON OF DEPOSITS At June 30, 1997, the bank balances were $271,047.38. The bank balances were entirely covered by Federal depository insurance or by collateral held by the Library or the Library's agent in the Library's name.
CATEGORIZAnON OF INVESTMENTS At June 30,1997, the carrying amount of the Library's total investments was $11,174.16 and this entire amount consisted of stock which was insured or registered, or securities held by the Library or its agent in the Library's name. The market value of these investments was $90,116.07.

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TROUP-HARRIS-COWETA REGIONAL LffiRARY

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 3: RISK MANAGEMENT

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

The Library has obtained commercial insurance for risk ofloss associated with torts, assets, job related illness or injuries to employees and natural disaster. 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 errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to these risks in the past three years. .

The Library is self-insured with regard to unemployment compensation claims. The Library accounts for

claims within the General Fund with expenditure and liability being reported when it is probable that a loss

has occurred, and the amount ofthat loss can be reasonably estimated.

.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

472.00 $

$

0.00 $

0.00 $

Claims Paid

End ofYear Liability

472.00 $

0.00

0.00 $

0.00

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

Position Covered

Amount

Director Assistant Director Bookkeeper

$ 20,000.00 $ 20,000.00 $ 20,000.00

Note 4: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1997, were as follows:

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 4: GENERAL LONG-TERM DEBT

Compensated Absences

Balance July 1, 1996

$ 25,808.00

Additions Leave Earned and Utilized (Net)

5,959.45

Balance June 30, 1997

$ 31.767.45

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 reimbursement to the grantor agency for any expenditures

which are disallowed under grant terms. The Library believes that such disallowances, if any, will be

immaterial to its overall fmancial position.

.

Note 6: ACCUMULATED EMPLOYEES' LEAVE

The Library's full and part-time employees earn annual leave at a rate approved by the Library, with a maximum accumulation of 30 days and 15 days, respectively. Upon retirement or termination of employment, employees are paid, at their current rate of pay, for unused accumulated annual leave up to the maximum accumulations. 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.

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

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TROUP-HARRIS-COWETA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Nore7: RETIREMENTPLANS
Fiscal Year 1997 1996 1995

Percentage Contributed
100% 100% 100%

Required Contribution
$ 49,494.34 $ 45,760.13 $ 43,252.21

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TROUP-HARRIS-COWETA REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 3D, 1997

EXHIBIT"E"

ASSETS Cash and Cash Equivalents

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS JUNE 30.1997 JUNE 30.1996

$

0..0...0... $

0....0.._0 $

..0..,0..0.. $

1_.3..3...4..,.5..5.

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

$ _ _---"'O.;.;;.O~O$

$

0..0...0... $

0.00 $_" 0...0...0... $

$
..;;.;O''';;'OO~

1.334.55 0.00

..0....0...0... $

1.....3...,.3.4...5...5...

See notes to the general purpose financial statements.

- 16-

TROUP-HARRiS-COWETA REGIONAL LIBRARY

EXHIBIT "F"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30.1997

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

LOTIERY PROGRAM

FEDERAL PROGRAM

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996

$ 10,550.00 $
$ 10,550.00 $

$ 18,000.00
18,000.00 $

10,550.00 $ 18,000.00
28,550.00 $

10,000.00 18,000.00
28,000.00

$ $ 10,550.00

$ 10,550.00 $

$

0.00 $

0.00

1,334.55 $ 18,000.00 19,334.55 $
-1,334.55 $
1,334.55

1,334.55 $ 28,550.00 29,884.55 $
-1,334.55 $
1,334.55

24,052.92 10,047.21
34,100.13 -6,100.13
7,434.68

$ =====0,=.0,,=0 $ ========0""".00=$ ===,.;;;0;,;,;;.0;,;;.0 $ ==~1,;;;;;334===.5=5

See notes to the general purpose financial statements.

-17 -

TROUP-HARRiS-COWETA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 3D. 1997

SCHEDULE "1"

AGENCY/FUNDING
GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Assistive Technology

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 265,909.25 92,055.00 87,455.00
-----$

$ 265,909.25 92,055.00 87,455.00

10,550.00

10,550.00

$ 445,419.25 $

10,550.00 $ 455,969.25

See notes to the general purpose financial statements.

- 18-

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

SCHEDULE "2"
GOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND

$

1.8..0...0..0...0...,,0

See notes to the general purpose financial statements.

- 19-

EXPENDITURES
Administration Equipment

TROUP-HARRiS-COWETA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES LOTTERY PROGRAM YEAR ENDED JUNE 30. 1997

SCHEDULE "3"
ASSISTIVE TECHNOLOGY $ ===1=0,=55:=0=0':=.O

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

TROUP-HARRIS-COWETA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1997

SCHEDULE "4"

PERSONNEL
Allen, Arrington, Becham, Bennett, Bledsoe, Burke, Chambless, Cosper, Cotton, Davis, Davis, Denney, Gates, Gay, Gottshall, Graffagnino, Hester, Huff, Little, Marino, Mitchell, Quester, Seifert, Sims, Smith, Stewart, Wheeler, Williams, Zeiger, Zens,

Margaret T. Janice R. Gerald C. Ruth L. Suzanne Y. Ellen A. Catharine H.
Horace E.
Lawanda A. Elaine R. Kimberly Datha L. Janice J. Patricia L. Jane C. Ann M. Charlotte D. PamelaW. Sharon K. Debra J. William J. Elvira L. Robert M. Elizabeth S. Brenda D. Lisa M. Betty C. Jackie D. Carrie C. Claire P.

Accrual June 30, 1996

POSITION
Clerk Clerical Director Clerk Clerk Clerk Clerk Custodian Clerk Clerk Clerk Branch Assistant Bookmobile Driver Librarian and Public Relations Branch Manager- Hogansville Branch Assistant Bookkeeper Reference Librarian Clerk-Typist Clerk-Typist Assistant Director Clerk Clerk Circulation Assistant Clerk Bookmobile Assistant Custodian Clerk Librarian- Newnan Librarian

SALARIES

TRAVEL

$ 13,548.00

16,230.00 $

50.25

51,730.80

1,118.36

2,240.00

1,620.00

2,755.00

8,507.24

5,291.00

3,993.95

6,857.33

1,869.03

4,813.80

3,875.84

44,982.00

633.75

8,485.00

28,866.80

229.14

17,832.00

32,321.20

1,027.30

13,443.40

20,184.32

189.87

48,506.40

1,051.57

2,608.73

1,539.60

20,418.00

14,550.00

15,450.00

5,481.00

13,062.00

3,617.00

44,272.00

6.12

$ 458,951.44 $ 4,306.36

-50.00

$ 458,951.44 $ 4,256.36

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

SECTIONll FINDINGS AND QUESTIONED COSTS

TROUP-HARRIS-COWETA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
PIDORYEMVCURRENTYEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties Finding Control Number 7412-93-01
The audit report for the year ended June 30, 1996, stated that the Troup-Harris-Coweta Regional Library did not provide for adequate separation ofemployee duties in the perfonnance ofaccounting functions and related procedures for all funds. In the year under review, adequate separation of duties had not yet been achieved. An examination of the internal accounting control procedures revealed that the Library did not provide for adequate separation of duties in the perfonnance of the following accounting functions and related procedures:
The deposit preparation function was not separated from the cash receipts function. In addition, the check writing/preparation function was not separated from the cash disbursements function.
These conditions were 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 detennine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 7412-93-02
The audit report for the year ended June 30, 1996, noted that the management of Troup-Harris-Coweta Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the fonnal accounting records. This condition results in the general purpose financial statements of the Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.