Audit report, Uncle Remus Trail Regional Library, Madison, Georgia, year ended June 30, 1995

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

AUDIT REPORT UNCLE REMUS REGIONAL LIBRARY
MADISON, GEORGIA YEAR ENDED JUNE 30, 1995

UNCLE REMUS REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

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

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

15

FIDUCIARY FUND TYPE

G

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

16

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

17

2 CASH AND CASH EQUIVALENTS

18

3 ACCOUNTS RECEIVABLE

19

SCHEDULE OF REVENUE

4

STATE

20

5

LOCAL AND OTHER

21

6 SCHEDULE OF EXPENDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

22

7 MEMBERSHIP OF LIBRARY BOARD

23

8 SCHEDULE OF SALARIES AND TRAVEL

27

UNCLE REMUS REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Uncle Remus Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Uncle Remus Regional Library, as of and for the year ended June 30, 1995, 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 and the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office ofManagement and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 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 respects from generally accepted accounting principles. This variance is described as follows:

95ARL-44*

* 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 is believed to be material.
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 ofthe Uncle Remus Regional Library as ofJune 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 23, 1996, on our consideration of the Library's internal control structure and a report dated February 23, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Uncle Remus Regional Library taken as a whole. The combining and individual fund statements (Exhibits E through G) and the financial schedules (Schedules 1 through 8 which includes the Schedule of Federal Financial Assistance), as listed in the table ofcontents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Uncle Remus 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 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,
L~
Claude L. Vickers State Auditor
CLV:jy 95ARL-44*

UNCLE REMUS REGIONAL LIBRARY -I-

!.!~E REM!. BEQIQ!:\!AL Lli:!BABY QQMBINEQ ~~NCE SHEl;I
& E!.!NQ TYPES ANQ ACCOUfil QRQ!.!P J!,!NE30 1995

EXHIBIT"A"

~ cash and cash Equivalents Investments Held by Trustee Accounts Receivable Amount to be Provided in Future Years
For Payment c:I: capital Lease Agreements
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE AGENCY FUND

$

30,627.94

$

5,214.55

60,113.04 $

3,989.24

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
(Memorandum OnM
JUNE 30, 1995 JUNE 30, 1994

$

30,627.94 $

41,148.44

5,214.55

1,940.81

64,102.28

54,627.61

$

20,079.03

20,079.03

14,750.36

$

90:740.98 $

3,989.24 $

5 214.55 $

20,079.03 $ 120,023.80 $ 112:4s1.22

LIABILITIES ANQ E!.!NQ EQ!.!ITY

LIABILmEs

Cash Overdraft

Accounts Payable

$

Deferred Revenue

Deferred Compensation Plan

capital Lease Agreements

Total Liabilities

$

FUND EQUITY

Fund Balances
Unreserved Undesignated

Total Liabilities and

Fund Equity

$

$ 17,768.10
17,768.10 $
72,972.88 90740.98 $

3,738.54 250.70 $
3,989.24 $
0.00
3,989.24 $

5,214.55 $
5,214.55 $
0.00
5 214.55 $

$
20,079.03 20,079.03 S

3,738.54 $ 18,018.80
. 5,214.55 20,079.03
47,050.92 $

5,025.25 40,589.20
3,264.91 1,940.81 14 750.36
65,570.53

0.00

72,972.88

46,896.69

20,079.03 $ 120,023.80 $ 112,467.22

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

UNCLE REMUS REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995

EXHIBITB

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Capital Leases
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS {Memorandum Onl:l}
YEAR ENDED JUNE 3011995 JUNE 3011994

$

476,955.40 $

205.07

6741329.21

$ 111511489.88 $

3,264.91 $ 28,242.08
0.00

480,220.31 $ 28,447.15
6741329.21

574,950.64 48,137.10
6511513.66

311506.99 $ 1I1821996.67 $ 112741601.40

$

345,943.11 $

195,556.20

15,152.15

487,894.89

83,518.61

13,789.34 2I6TT.20
$ 111441531.50 $

$

6,958.18 $

28,242.08 $ 3,264.91

374,185.19 $ 195,556.20
15,152.15 491,159.80
83,518.61

312,812.56 190,153.81
27,280.83 582,371.78 106,599.99

311506.99 $ 0.00 $

13,789.34 2 I6TT.20
1I1761038.49 $
6,958.18 $

53,940.76 81275.42
112811435.15
-6,833.75

191118.01

$

26,076.19 $

461896.69

$

72,972.88 $

0.00 $ 0.00

19 118.01
26,076.19 $ 461896.69

-6,833.75 53z730.44

0.00 $

721972.88 $

461896.69

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

UNCLE REMUS REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Debt Service Principal Interest
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. 1994
ADJUSTMENTS
Prior Year (Net)

GENERAL FUND

BUDGET

ACTUAL

$ 479,881.00 $ 629,763.00

476,955.40 205.07
674,329.21

$ 1,109,644.00 $ 1,151,489.68

$ 390,030.70 $ 199,157.00 21,300.00 495,376.00 98,920.00

345,943.11 195,556.20
15,152.15 487,894.89
83,518.61

13,789.34 2,677.20

$ 1,204,783.70 $ 1,144,531.50

$ -95,139.70 $

6,958.18

$ 247,768.00 $ -247,768.00

$

0.00 $

19,118.01 0.00
19,118.01

$ -95,139.70 $ 47,353.19

26,076.19 46,896.69

-1,350.79

FUND BALANCE JUNE 30. 1995

$ -49,137.30 $

72,972.88

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

3,264.91

$ 24,000.00

28,242.08

$ 24,000.00 $ 31,506.99

$ 26,192.64 $ 28,242.08

2,397.00

3,264.91

$ 28,589.64 $ 31,506.99

$

-4,589.64 $

0.00

$

0.00 $

0.00

$

0.00 $

$

-4,589.64 $

3,264.91

0.00 0.00 0.00
0.00 0.00

$

-1,324.73 $ ==-===0=.0=0

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

UNCLE REMUS REGIONAL LIBRARY

EXIDBIT D 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Uncle Remus Regional 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. 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. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The more significant of the 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 Uncle Remus Regional Library is determined to be a joint venture.

The Library Board consists of 36 members; 6 members appointed by the Greene County Library Board, 6 members appointed by the Hancock County Library Board, 6 members appointed by the Jasper County Library Board, 6 members appointed by the Morgan County Library Board, 6 members appointed by the Putnam County Library Board and, 6 members appointed by the Walton County Library Board. 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 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 oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.

The Uncle Remus Regional Library is located in Madison, Georgia, and serves Greene, Hancock, Jasper, Morgan, Putnam and Walton 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.



- 5-

UNCLE REMUS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 provided by a Library;
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources 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.
FIDUCIARY FUND TYPE - the 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:
AGENCY FUND - the fund used to account for assets held for individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations 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 funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
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UNCLE REMUS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Uncle Remus 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 object level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The.budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part of the Library's annual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including 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.
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UNCLE REMUS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS HELD BY TRUSTEE
Investments held by trustee consist of contributions from employees who have elected to participate in the Library's deferred compensation plan. See Note 6 - Deferred Compensation Plan
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from infonnation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund 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.
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 INVEST:MENTS
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. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the 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 of the following:

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UNCLE REMUS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS
(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 ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $62,610.59. The bank balances were entirely covered by Federal depository insurance.
CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount ofthe Library's total investments was $5,214.55 and this entire amount is categorized as Unclassified - Deferred Compensation Plan pooled investments. The market value of these investments was $5,214.55.
Note 3: RISK MANAGEMENT
The Library is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster and unemployment compensation.

- 9-

UNCLE REMUS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 3: RISK MANAGE:MENT

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

The Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to natural disaster 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 expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably. estimated. The Library has experienced no unemployment compensation claims during the last two fiscal years.

Note 4: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Uncle Remus Regional Library has entered into various lease agreements as lessee for office equipment and automobiles. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

Capital Leases

Balance July 1, 1994

$ 14,750.36

Additions

19,118.01

Deductions

13,789.34

Balance June 30, 1995

$ 20,079.03

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these itemsi are as follows:

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UNCLE REMUS REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: GENERAL LONG-TERM DEBT
Fiscal Year Ended June 30
1996 1997 1998 1999
Total Principal and Interest Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments
Note 5: CONTINGENT LIABILITIES

Capital Leases $ 9,928.33 5,860.77 4,730.88 2,759.58 $ 23,279.56 3,200.53
$ 20,079.03

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.

Note 6: DEFERRED COMPENSATION PLAN

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

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

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

Investments are managed by the plan's trustee, The Variable Annuity Life Insurance Company. Under this plan, participants select from an investment option, or a combination of investment options, determined by the Board.

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UNCLE REMUS REGIONAL LIBRARY

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: 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 in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years ofservice 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 ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the 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 death.
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 payroll for employees covered by TRS for the year ended June 30, 1995, was $518,136.12; total payroll was $567,783.06.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1995 amounted to $87,099.09, of which $61,191.99 was made by the Library and $25,907.10 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.

- 12 -

UNCLE REMUS REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 7: RETIRE:MENT PLANS

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, 1994, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058.958.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. 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, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $61,191.99 was actuarially determined and represented .0108% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 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 8: SURETY BONDS

The Library Director, Mr. Steve Schaefer, is bonded in the amount of $50,000.00 with the Cincinnati Insurance Company, Cincinnati, Ohio, their Bond No. B-80-603213, on which premium was paid through September 20, 1995.

- 13 -

UNCLE REMUS REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

EXHIBIT"E"

ASSETS Cash and Cash Equivalents Accounts Receivable

LOTTERY PROGRAM

LIBRARY SERVICES
AND CONSTRUCTION
ACT TITLE! PUBLIC LIBRARY SERVICES

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

0.00

_____ $

$ 3,989.24 $ _ _3__,9_8_9_.2_4

3,264.91 8,290.16

Total Assets

$

0.00 $

3,989.24 $

3,989.24 $

11,555.07

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Deferred Revenue

Total Liabilities

FUND EQUITY

Fund Balances

Unreserved

Undesignated

$

$ $ 0.00

3,738.54 $ 250.70
3,989.24 $

3,738.54 $ 250.70
3,989.24 $

8,290.16 3,264.91 11,555.07

0.00

0.00

0.00

Total Liabilities and Fund Equity

$

0.00 $

3,989.24 $

3,989.24 $

11,555.07

See notes to the general purpose financial statements.

- 14 -

UNCLE REMUS REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1995

EXHIBIT "P'

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

LOTTERY PROGRAM

LIBRARY SERVICES
AND CONSTRUCTION
ACT TITLEI PUBLIC LIBRARY SERVICES

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

3,264.91

$

$

3,264.91 $

$ 28,242.08
28,242.08 $

3,264.91 $ 28,242.08
31,506.99 $

136,735.09 47,897.08
184,632.17

$

$

3,264.91

$

3,264.91 $

$

0.00 $

0.00

$

0.00 $

28,242.08 $
28,242.08 $ 0.00 $ 0.00

28,242.08 $ 3,264.91
31,506.99 $ 0.00 $
0.00

18,790.16 165,842.01
184,632.17 0.00 0.00

0.00 $

----- 0.00 $

0.00

See notes to the general purpose financial statements.

-15 -

UNCLE REMUS REGIONAL LIBRARY COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"G"

DEFERRED COMPENSATION PLAN
ASSETS Investments Held by Trustee

BALANCE JULY 1, 1994

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1995

$

1,940.81 $

3,273.74 $

o.oo $ ___52_1_4._5_5

LIABILITIES Deferred Compensation Plan

$

1,940.81 $

3,273.74 $

o.oo $ _ _ _5._21 4..,.5...,5 111111

See notes to the general purpose financial statements.

- 16 -

UNCLE REMUS REGIONAL LIBRARY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services Basic Grant 1993 carry-Over 1995 Regular Developmental Grant 1993 Carry-Over Title Ill - Interlibrary Cooperation and Resource Sharing 1994 Contract 1995 Contract

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.034 84.034 $
84.034

$ 24,000.00

84.035 84.035

205.07

10,500.00 $ 18,000.00
4,043.00

2,209.84 $ 21,989.24
4,043.00

105.45 205.07

205.07

2,209.84 21,989.24
4,043.00
(1)

Total Federal Financial Assistance

$ 24,205.07 $

32,853.52 $ 2si441.1s $

28,242.08

The Library had no major programs as defined by the Single Audit Act of 1984.

(1) This program does not require reporting of expenditures.

See notes to the general purpose financial statements.

- 17 -

UNCLE REMUS REGIONAL LIBRARY CASH AND CASH EQUIVALENTS JUNE 30, 1995
INTEREST BEARING ACCOUNTS
Bank of Madison, Madison, Georgia
N.O.W. Account (3.20%)

SCHEDULE "2"
$ 26,889.40

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

UNCLE REMUS REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "3"

City Governments Local Support Eatonton Greensboro Loganville Monticello Social Circle
County Governments Local Support Greene County Commissioners Jasper County Commissioners Putnam County Commissioners
Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

3,750.00

1,141.67

6,195.56

2,470.00

7,122.36

$

3,750.00

1,141.67

6,195.56

2,470.00

7,122.36

18,050.00 4,939.00
16,444.45

18,050.00 4,939.00
16,444.45

- - - - - $ _ _ _ _3...:..,9_8_9_.2__4

3,989.24

$ 60,113.04 $

3,989.24 $ 64,102.28

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

UNCLE REMUS REGIONAL LIBRARY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1995

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 Human Resources, Georgia Department of Reimbursement for Rehabilitation Services

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 352,604.40 65,875.00 58,275.00
$
201.00

$ 352,604.40 65,875.00 58,275.00

3,264.91

3,264.91

201.00

$ 476,955.40 $====3=,2=6=4=.9=1 $ 480,220.31

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

UNCLE REMUS REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995
LOCAL SOURCES City Governments Eatonton Greensboro Loganville Monroe Monticello Siloam Social Circle Sparta Union Point Woodville
County Boards of Education Greene Hancock Jasper Putnam Walton
County Governments Boards of Commissioners Greene Hancock Jasper Morgan Putnam Walton
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Photocopy Sales Other
See notes to the general purpose financial statements. - 21 -

SCHEDULE "5"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

15,000.00

15,101.70

23,696.13

56,798.00

29,640.00

500.00

7,122.36

24,676.00

4,700.00

1,000.00

20,000.00 31,766.00 29,634.00 31,704.00 20,000.00

36,100.00 28,500.00 29,634.00 96,000.00 32,890.00 85,000.00
22,488.36 23,811.57
2,317.34 1,276.69 3,648.70 1,324.36

$-====6-74...,_32_9_.2_1

UNCLE REMUS REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995

SCHEDULE "6"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures
Nonoperating Costs Principal and Interest Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 567,783.06
197,224.18 6,451.64
8,954.25 $ 32,047.98 31,109.90
130,706.54 67,674.27 54,454.93
5,501.20 1,163.82

$
4,902.46 373.45
24,199.08

567,783.06 197,224.18
6,451.64 13,856.71 32,047.98 31,483.35 154,905.62 67,674.27 54,454.93 5,501.20
1,163.82

16,466.54 5,875.18

2,032.00

16,466.54 7,907.18

$ 1,125,413.49 $

31,506.99 $ 1,156,920.48

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

UNCLE REMUS REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1995

BOARD MEMBER ADDRESS
Ms. Maxie G. Jones, Chairperson (*) 1018 Pearl Street Madison, Georgia 30650
Mr. Donald Adams (*)
Box 599, Georgia Highway 11 Monroe, Georgia 30655
Ms. Tommy Agee
301 Northeast Street Greensboro, Georgia 30642
Mr. Bill Bacon (*)
P. 0. Box 1197 Loganville, Georgia 30249
Ms. Lethonia Bennekin
114 Stage Road, S. W. Eatonton, Georgia 31024
Ms. Carol Bramlett (*)
1420 Sibley School Road Greensboro, Georgia 30642
Ms. Nan Burks (*)
515 Branham Circle Social Circle, Georgia 30279
Ms. Anita Carson (*)
1720 Veasy Road Greensboro, Georgia 30642
Ms. Gladys Clayton (*)
Route 3, Box 110 Sparta, Georgia 31087
Ms. Carolyn Clodfelter
785 North Cherokee Road Social Circle, Georgia 30279
Ms. Cathryn Cook(*)
353 E. Broad Street Sparta, Georgia 31087
Ms. Charlotte Crawley
661 Eatonton Road Monticello, Georgia 31064
Ms. Joy Denham (*)
104 Thunder Trail, N. E. Eatonton, Georgia 31024

- 23 -

SCHEDULE '7''

BOARD MEMBER ADDRESS
Ms. Linda Ervin (*) 304 W. Marion Street Eatonton, Georgia 31024
Mr. Marvin Gude (*) P. 0. Box28 Monticello, Georgia 31064
Ms. Pam Hendrix (*) P.O. Box816 Madison, Georgia 30650
Ms. Catherine Hill (*) Route 1, Box 183 Sparta, Georgia 31087
Ms. Susan Holmes (*) 692 College Street Monticello, Georgia 31064
Ms. Cordelia Jackson (*) 837 Powerton Avenue Sparta, Georgia 31087
Ms. Ann Jones (*) P. 0. Box408 Loganville, Georgia 30249
Mr. W. Phil Jordan Eatonton Street Monticello, Georgia 31064
Ms. Karen McDonald 601 Renee Drive Loganville, Georgia 30249
Ms. Margaret McElheney (*) P. 0. Box404 Monticello, Georgia 31064
Ms. Imogene McHugh (*) 954 Williams Street Madison, Georgia 30650
Ms. Jeanette McMichael (*) 5945 Highway 11 South Hillsboro, Georgia 31038
Ms. Decie Miller (*) 310 Walton Street Monroe, Georgia 30655

UNCLE REMUS REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1995
- 24 -

SCHEDULE "7''

BOARD MEMBER ADDRESS
Ms. Awanna Norton (*) 510 Myrtle Street Sparta, Georgia 31087
Ms. Cynthia Oslund (*) 405 W. Broad Street Greensboro, Georgia 30642
Ms. Carolyn Parker (*) 1470 Dogwood Drive Greensboro, Georgia 30642
Ms. Daisy Reese (*) 904 Milledgeville Highway Devereux, Georgia 31087
Mr. William Riley (*) 108 Aspenwood Court, S. E. Eatonton, Georgia 31024
Ms. Eleanor Ruark East Peachtree Avenue Union Point, Georgia 30669
Ms. Jennifer Schmitt (*) 203 Crestview Drive Eatonton, Georgia 31024
Mr. John L. Seigler
P. 0. Box96
Loganville, Georgia 30249
Ms. Birdie Smith 275 Williams Street Monticello, Georgia 31064
Mr. Andrew Thompson (*) P. 0. Box224 Monticello, Georgia 31064
Ms. Norma Thornton (*) 312 North East Street Greensboro, Georgia 30642
Mr. Thomas Vogel (*) Route 1, Box485 Monticello, Georgia 31064
Mr. Ruben Walker (*) 3541 Seven Island Road Madison, Georgia 30650

UNCLE REMUS REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1995
- 25 -

SCHEDULE '7"

BOARD MEMBER ADDRESS
Ms. Ulla Welch (*) 1211 Heidi Trail Buckhead, Georgia 30625
Ms. Shelby Welch (*) 969 Knox Chapel Road Social Circle, Georgia 30279
Mr. Marshall Williams (*) 613 Foster Street Madison, Georgia 30650

UNCLE REMUS REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30, 1995

Note: As of June 30, 1995, three vacant positions had not been filled.

(*) Denotes Board Members Serving as of June 30, 1995

SCHEDULE '7"

See notes to the general purpose financial statements.

- 26 -

UNCLE REMUS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

PERSONNEL

Alexander, Anderson, Arseneau, Barrio, Brinson, Burston, Cooper, Craft, Craig, Crawford, Crook, Dennis, Fitch, Floyd, Fuller, Gornto, Green, Green, Greer, Hale, Hall, Harrison, Hillman, Jarrell, Johnson, Joslyn, Kadhum, Lewis, Lowe, Lundy, Mallory, McGlaughlen, McGuire, Meeks, Mix, Mock, Norwood, Paul, Rary, Reese, Richardson, Rigsby,

Mary S. Catherine R. Michael Elena J. Martha I. Edith MaryG. Joan T. Barbara J. Carolyn Donna S. Patricia Christopher Marishia Dana E. Stephen L. Louvine Murial A. Elizabeth Myrna Ann
Roger 0.
Elizabeth J. Mamie L. Holly R. Meshanda Muriel A. AnaJ. Laurie D. Felicia T. Annie R. Earleen D. Janis R. Marion Karen D. Vivian J. Linda M. Ashley Fox Suzanne B. KathleenW. Dorethea B. Jackie Denise James H.

POSITION

SALARIES

TRAVEL

Branch Library Manager

$

Maintenance

Librarian

Librarian

Branch Library Substitute

Branch Library Substitute

Processing Clerk

Branch Library Associate

Shelver

Administrative Assistant

Branch Library Associate

Branch Library Manager

Associate Bookkeeper

Branch Library Associate

Branch Library Associate

Maintenance/Delivery

Maintenance

Processing Clerk

Branch Library Manager

Branch Library Manager

Shelver

Branch Library Manager

Branch Library Associate

Librarian

Shelver

Branch Library Substitute

Librarian

Branch Library Associate

Branch Library Associate

Branch Library Associate

Clerk

Branch Library Manager

Branch Library Associate

Branch Library Manager

Branch Library Associate

Shelver

Processing Clerk

Librarian

Branch Library Associate

Substitute Library Associate

Branch Library Manager

Delivery

9,329.17 308.13
28,876.20 $ 38,188.20
5,573.91 1,191.63 8,700.00
825.80 683.19 24,619.92 8,500.95 13,793.09 19,000.08 12,874.96 3,785.44 12,530.04 4,348.74 1,025.00 9,931.32 5,053.50 150.01 1,534.50 2,482.77 25,641.50 1,656.91 63.08 39,226.20 86.06 400.43 3,651.43 920.00 3,791.65 7,285.43 14,549.63 8,108.75 565.00 4,810.58 42,295.24 2,637.30 1,403.99 2,887.50 240.00

244.24 84.53
348.97 109.58 345.45
10.88
111.51 134.19
17.01 301.83
34.34
231.00 43.92
50.40

- 27 -

UNCLE REMUS REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

PERSONNEL

Rigsby, Schaefer, Shuman, Skrine, Smoker, Stevens, Summers, Taylor, Thomas, Upham, Walton, Ward, Williams, Williams,

Margaret Steve Robin L. Betty S. Doris B. Mary Ruth A. Shirley L. Tamela M. Lois N. Sara J. Gloria Ann Ann Kimberly D.

Total Cash Basis

Accruals June 30, 1994 June 30, 1995

POSITION

SALARIES

TRAVEL

Branch Library Associate

$

Director

Acquisitions Associate

Branch Library Substitute

Branch Library Substitute

Custodian

Branch Library Substitute

Branch Library Manager

Librarian

Librarian

Branch Library Associate

Interlibrary Loan Associate

Branch Library Associate

Branch Library Manager

3,161.76
54,829.80 $
4,218.96 18.49
728.19 1,837.52 2,325.43 10,414.50 38,188.20 49,428.40 4,726.25 12,530.04 3,671.16 8,177.13

4,029.19
22.27
105.00 178.08
17.00 26.88

$

567,783.06 $

6,446.27

-11.64 17.01

$

567,783.06 $===6=,4=5=1=.64=

See notes to the general purpose financial statements. -28 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Uncle Remus Regional Library Board
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Uncle Remus Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated February 23, 1996. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. 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.
Compliance with laws, regulations, contracts, and grants applicable to Uncle Remus Regional Library is the responsibility of the Library's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Library's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards_

95CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 95CRL-IO

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 23, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Uncle Remus Regional Library Board

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Uncle Remus Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated February 23, 1996. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Uncle Remus Regional Library's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995:

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office ofManagement and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression ofan opinion on the Uncle Remus Regional Library's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

95CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Uncle Remus Regional Library had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 95CRL-40

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 23, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Uncle Remus Regional Library Board
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Uncle Remus Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated February 23, 1996_ This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
In connection with our audit of the fiscal year 1995 general purpose financial statements of the Uncle Remus Regional Library and with our consideration of the Library's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995_ As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:
Types of Services Allowed or Unallowed
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Uncle Remus Regional Library's compliance with these requirements. Accordingly, we do not express such an opinion.

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Uncle Remus Regional Library had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Red:::A

CLV:jy 95CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Uncle Remus Regional Library Board
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Uncle Remus Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated February 23, 1996. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General ofthe United States. 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.
The management of the Uncle Remus Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
95ICL-3

In planning and perfonning our audit ofthe general purpose financial statements of the Uncle Remus Regional Library for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an op1ruon.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(I) Accounting Controls (Overall)
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that both ofthe reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Uncle Remus Regional Library's financial statements and this report does not affect our report thereon dated February 23, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
RZu

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Claude L. Vickers
State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Uncle Remus Regional Library Board
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Uncle Remus Regional Library as of and for the year ended June 30, 1995, and have issued our report thereon dated February 23, 1996. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended June 30, 1995, we considered the Library's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Library's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 23, 1996.
The management of the Uncle Remus Regional Library is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The
95ICL-15

objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(I) Political Activity (2) Civil Rights (3) Cash Management

(I) Types of Services Allowed or Unallowed
(2) Applicable Special Tests and Provisions

(4) Federal Financial Reports

(5) Allowable Costs/Cost Principles

(6) Audit Follow-Up/Resolution

(7) Administrative Requirements

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1995, the Uncle Remus Regional Library had no major Federal financial assistance programs and expended 99% ofits total Federal financial assistance under the following nonmajor Federal financial assistance program:
Libr!i!)' Services and Construction Act - Title I Public Library Services
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.

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We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Library's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
tt~~
Claude L. Vickers State Auditor
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SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

UNCLE REMUS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW UP/RESOLUTION Delinquent Program Reports Federal Financial Assistance Finding Resolved Audit Control Number 7042-94-02
The audit report for the year ended June 30, 1994, stated that the Library did not file the DE Form 0618, Grant Completion Report for the Library Services and Construction Act - Tile I program (CFDA 84.034) within the required time period. For the year under review, the Library filed the DE Form 0618 report with the Georgia Department ofEducation by the required due date.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition-Material Weakness Audit Control Number 7042-94-01
The audit report for the year ended June 30, 1994, noted that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was the result ofmanagement's decision to limit the number of administrative staff made reponsible
for accounting functions. Management should periodically review this decision to determine if employees
duties can be reassigned to achieve a higher degree of internal control with existing staff
Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "l" of this report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition-Material Weakness Audit Control Number 7042-93-01
The audit report for the year ended June 30, 1994, noted that the management of Uncle Remus 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, the Library did not establish a General Fixed Assets Account Group within the formal 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

UNCLE REMUS REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition-Material Weakness Audit Control Number 7042-93-01
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.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

UNCLE REMUS REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7042-93-01
We concur with this recommendation. Due to current staffing limitations and budgetary considerations the Library has decided not to pursue the recording of general fixed assets on the financial statements.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7042-94-01
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.