Audit report, West Georgia Regional Library, Carrollton, Georgia, year ended June 30, 1994

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

AUDIT REPORT WEST GEORGIA REGIONAL LIBRARY
CARROLLTON, GEORGIA
YEAR ENDED JUNE 30, 1994

WEST GEORGIA 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

EXIIlBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDffiONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE

I

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

SCHEDULES

l SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 2 ANALYSIS OF CASH AND CASH EQUIVALENTS 3 ACCOUNTS RECENABLE

Page
2 3
5
6
14 15 16 17 18 19 20 21

WEST GEORGIA REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

4

STATE

22

5

LOCAL AND OTHER

23

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

24

7 MEMBERSIIlP AND TRAVEL OF LIBRARY BOARD

25

8 SCHEDULE OF SALARIES AND TRAVEL

26

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 ID
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

WEST GEORGIA REGIONAL LIBRARY - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

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, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe West Georgia 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 West Georgia Regional Library, as ofand for the year ended June 30, 1994, as listed in the table of contents_ These financial statements are the responsibility ofthe 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 certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are 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.
94ARL-44

The Library did not report compensated absences within the general purpose financial statements as required by generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements ofthe matters referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the West Georgia Regional Library as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements of the West Georgia Regional Library taken as a whole. The combining and individual fund statements (Exhibits E through I) 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 ofthe general purpose financial statements ofthe West Georgia 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, except for the effects ofthe matters discussed in the third paragraph, such information 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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94ARL-44

WEST GEORGIA REGIONAL LIBRARY
- 1-

ASSETS
Cash and Cash Equivalents Accounts Receivable

WEST GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1994

EXHIBIT "A"

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

FIDOCIARY FUND TYPE
AGENCY FUND

TOTAL (Memorand1J11
Only)

$ 128,640.49$ 306.88

11,495.38$

10,019.23 $

645.76 $ 150,800.86 306.88

Total Assets

$ 128,947.37 $ 11,495.38$ 10,019.23$

645.76 $ 151,107.74

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

LIABILITIES AND FUND EQUITY
LIABILITIES
Deferred Revenue Funds Held for Others
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 11,495.38
-------------
$ 11,495.38
-------------

$ 11,495.38

$

645.76

645.76

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

$

645. 76 $ 12,141.14

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

$ 5,017.88

$ 128,947.37 $

0.00

5,001.35

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

$ 128,947.37 $

o.oo $ 10,019.23

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

$ 5,017.88
133,948.72
-------------
$ 138,966.60
-------------

Total Liabilities and Fund Equity $ 128,947.37 $ 11,495.38$ 10,019.23$

645.76 $ 151,107.74

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

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

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

WEST GEORGIA REGIONAL LIBRARY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1994

EXHIBIT "8"

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

TOTAL (Memorandum
Only)

REVENUES

State Funds Federal Funds Local and Other Funds
Total Revenues

$ 682,251.89 $ 146,004.62

$ 828,256.51

254.72

38,212.55

38,467.27

456,760.22

$ 10,315.90 467,076.12

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

$1,139,266.83$ 184,217.17$ 10,315.90$ 1,333,799.90

EXPENDITURES

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

$ 479,498.92

219,496.75

69,913.50

308,590.45 '$ 184,217.32

61,639.07

10,384.70

$

$
38,124.41

479,498.92 219,496.75 69,913.50 492,807.77 61,639.07 48,509.11

Total Expenditures

$1,149,523.39$ 184,217.32$ 38,124.41 $1,371,865.12

Excess of Revenues over (under) Expenditures $ -10,256.56 $

FUND BALANCE JULY 1

139,203.93

-0.15 $ -27,808.51 $ -38,065.22

0.15

37,827.74 177,031.82

FUND BALANCE JUNE 30

$ 128,947.37$

o.oo $ 10,019.23$ 138,966.60

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

WEST GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1 1994

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1993
FUND BA~ANCE JUNE 30, 1994

ACTUAL PER
EXHIBIT "B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 828.256.51 $ 840,793.56$ -12,537.05

38,467.27

44,035.15

-5,567.88

467,076.12 444,566.57

22,509.55

$1,333,799.90$ 1,329,395.28$ 4,404.62

$ 479,498.92 $ 545,690.95$ 66,192.03

219,496.75 220,276.76

780.01

69,913.50

70,376.92

463.42

492,807.77 472,804.55 -20,003.22

61,639.07

63,985.09

2,346.02

48,509.11

50,215.31

1,706.20

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

$1,371,865.12$ 1,423,349.58$ 51,484.46

$ -38,065.22 $ -93,954.30 $ 55,889.08 177,031.82 197,230.76 -20,198.94

$ 138,966.60$ 103,276.46$ 35,690.14
============= ============= =============

The notes to the general purpose financial statements are an integral part of this statement.
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WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The West Georgia Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-540 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State ofGeorgia. With the exception ofthe departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and :financial reporting principles.
The more significant ofthe Library's accounting policies are described below.
REPORTINGENTITY
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 ofthe above criteria, the West Georgia Regional Library is determined to be a joint venture.
The Library Board consists oftwelve members; three members appointed by Carroll County Library Board, three members appointed by Douglas County Library Board, two members appointed by Haralson County Library Board, two members appointed by Heard County Library Board and two members appointed by Paulding County Library Board. The Board is without authority to detennine the amount ofits funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion ofeach 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 ofoversight responsibility for the Library's operations.
The West Georgia Regional Library is located in Carrollton, Georgia, and serves Carroll, Douglas, Haralson, Heard and Paulding Counties.
FUND ACCOUNTING
The Library uses funds to report on its financial position and the results ofits 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.

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WEST GEORGIA REGIONAL LIBRARY

EXEilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: 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 presented in this report are as follows:
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the agency fund used to account for assets held by a government unit as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the fund used to account for assets held for individuals.
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.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
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WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Agency funds are purely custodial in nature and do not involve measurement of results ofoperations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recogniz.ed 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 ament 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.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The West Georgia Regional Library has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Library administration prepares and submits a proposed budget to the Board for approval. After approval of the proposed budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board will make any necessary adjustments and adopt the budget. This final budget is then submitted to the Georgia Department ofEducation, Division ofPublic Library Services, as a part ofthe Library's Annual Application for State Aid.
The Library prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
:..
CASH AND CASH EQUIVALENTS
COMPOSmON OF DEPOSITS Cash and cash equivalents consist ofdeposits (including N.O.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.
RECEIVABLES
Receivables consist of grant reimbursements due from Federal or State grantors for expenditures made but not reimbursed, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
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WEST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SilldMAR.Y OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
However, the dollar value of accumulated compensated absences at June 30, which will be payable from futures resources is material to the general purpose financial statements and has not been recorded in the General Long-Term Debt Account Group. In order to comply with generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fuwtcial 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
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists ofany one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
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WEST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State ofGeorgia,
(5) Bonds ofany 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 ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates ofindebtedness, 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 Banlc, 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, 1994, the bank balances were $211,540.79. 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.
Note 3: RISK MANAGEMENT
The Library has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based upon experience. During fiscal year 1994, no claims were paid.
Note 4: SIGNIFICANT COMMITMENTS
At June 30, 1994, the Library had encumbrances in the amount of $11,495.38 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Program. The Georgia Department ofEducation has funding available to the Library in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year: Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

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WEST GEORGIA REGIONAL LIBRARY

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 4: SIGNIFICANT COMMITMENTS Media Center and Library Equipment
The amounts are not reflected in the general purpose financial statements.

$ 11,495.38

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 financial position.

Note 6: ACCUMULATED EMPLOYEES LEAVE

The administrative staff and full-time employees earn from one~week to twenty working days of vacation, based on grade and length of service. The Library's vacation leave policy provides that employees are paid at their CUITent rate ofpay for any unused vacation leave, with maximum accumulation of 20 days, for which they are eligible as ofthe date of retirement or termination ofemployment.

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. A member is eligible for service retirement after 30 years of service, regardless of age, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years ofservice 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 distnbution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time ofdisability or death.

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WEST GEORGIA REGIONAL LIBRARY

EXlilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS

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, 1994, was $486,017.36; total payroll was $508,343.74.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required to pay 6% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. At June 30, 1994, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $86,559.42, ofwhich $57,398.40 was made by the Library and $29,161.02 was made by employees. These contributions represented 11.81% (Library) and 6% (employees) ofcovered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofPERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumu1ating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

S 1,090 292,000.00

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

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WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $521,550,000.00. The Library's contribution for the year ended June 30, 1994, of$57,398.40 was actuarially determined and represented .0110% oftotal contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
Note 8: SURETY BONDS
All employees ofthe Library are bonded in the amount of$1,000,000.00 with the Illinois Insurance Exchange, Chicago, Illinois, their Bond No. 187207, on which premium was paid through November 27, 1994.

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WEST GEORGIA REGIONAL LIBRARY
COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1994

EXHIBIT "E"

ASSETS
Cash and Cash Equivalents

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT

TITLE I PUBLIC LIBRARY SERVICES

TITLE VI
LIBRARY
LITERACY
PROGRAM

TOTAL

$ 11,495.38 $

0.00 $

0.00 $ 11,495.38

Total Assets

$ 11,495.38 $

0.00 $

0.00 $ 11,495.38

LIABILITIES AND FUND EQUITY
LIABILITIES
Deferred Revenue
FUND EQUITY
Fund Balance Unreserved Undesignated

$ 11,495.38

$

0.00 $

0.00 $

$ 11,495.38

0.00 $

0.00

Total Liabilities and Fund Equity $ 11,495.38 $

0.00 $

0.00 $ 11,495.38

See notes to the general purpose financial statements.
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WEST GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1 1994

EXHIBIT "F"

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION ACT

TITLE I PUBLIC LIBRARY SERVICES

TITLE VI LIBRARY LITERACY PROGRAM

TOTAL

REVENUES

State Funds Federal Funds

$ 146,004.62

$ 146,004.62

$ 2B,177.55 $ 10,035.00

38,212.55

Total Revenues

$ 146,004.62$ 28,177.55 $ 10,035.00$ 184,217.17

EXPENDITURES

Current Administration

$ 146,004.62$ 28,177.55 $ 10,035.15$ 184,217.32

Excess of Revenues over (under) Expenditures $ FUND BALANCE JULY 1

0.00 $ 0.00

0.00 $ 0.00

-0.15 $ 0.15

-0.15 0.15

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

0.00 $

0.00

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

WEST GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET
CAPITAL PROJECTS FUND JUNE 30. 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents

REGULAR

GEORGIA STATE FINANCING ANO INVESTMENT CcIMISSION

PROJECT

PROJECT

PROJECT

6222-91-SB-007 6222-92-SB-006 6222-94S-SB-002

TOTAL

$ 5,001.35 $

0.00 $

0.00 $

5,017.88$ 10,019.23

FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$ 5,001.35 $

0.00 $

$ 0.00

5,017.88$ 0.00

5,017.88 5,001.35

Total Fund Equity

$ 5,001.35 $

0.00 $

0.00 $

5,017.88$ 10,019.23

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

WEST GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

REVENUES
Local and Other Funds
EXPENDITURES
Capital Outlay Equipment
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

6222-91-SB-007 6222-92-SB-006 6222-94S-SB-002

TOTAL

$ 5,001.35 $

53.14 $

243.53 $

5,017.88$ 10,315.90

$

0.00 $

11,415.96$ 26,708.45$

0.00 $ 38,124.41

$ 5,001.35 $ 0.00

-11,362.82 $ 11,362.82

-26,464.92 $ 26,464.92

5,017.88$ -27,808.51 0.00 37,827.74

FUND BALANCE JUNE 30

$ 5,001.35 $

0.00 $

0.00 $

5,017.88$ 10,019.23

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

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

WEST GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I"

STAFF ACCOUNT
ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 1993

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1994

$

247.21 $ 5,022.63 $ 4,624.08$

645.76

-=~=--=--=--- -============ ============= =============

$

247.21 $ 5,022.63$ 4,624.08$

645.76

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

WEST GEORGIA REGIONAL LIBRARY
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1994

SCHEDULE "l"

FUNDING AGENCY PROGRAM/GRANT
--------------
Education, U. S. Department of Direct Library Services and Construction Act Title VI - Library Literacy Program 1993 Grant Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services 1992 Carry-Over 1993 Carry-Over Title Ill - Interlibrary Cooperation and Resource Sharing 1994 Contract

CFDA N!J,!BER

FEDERAL FUNDS

RECEIVED IN FEDERAL

AWARDS

PERIOD (NET REVENUE EXPENDITURES

IN PERIOD OF REFUNDS) IN PERIOD IN PERIOO

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

84.167

$ 20,099.00$ 10,035.00$ 10,035.15

84.034 $ 4,000.00

84.034

30,000.00

4,000.00 24,177.55

4,000.00 24,177.55

4,000.00 24,177.55

84.035

254.72

23.84

254.72

(1)

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

Total Federal Financial Assistance

$ 34,254.72$ 48,300.39$ 38,467.27$ 38,212.70
=========== ============ ============ ===========

The Library had no major programs as defined by the Single Audit Act 1984. (1) Funds earned on this program do not require reporting of expenditures.

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

WEST GEORGIA REGIONAL LIBRARY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
West Georgia National Bank, Carrollton, Georgia INTEREST BEARING ACCOUNTS
Community Trust Bank, Hiram, Georgia
Checking Account (2.25%) First National Bank of Paulding County, Dal las, Georgi a
Premier Checking Account (2.00%) West Georgia National Bank, Carrollton, Georgia
N.O.W. Account' (2.56%)
OTHER
Petty Cash

$

645.76

$ 5,017.88 5,001.35
140,035.87 150,055.10
100.00
$ 150,800.86 --s---==---=-

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

WEST GEORGIA REGIONAL LIBRARY GOVERNMENTAL FUND TYPE - GENERAL FUND
ACCOUNTS RECEIVABLE JUNE 30, 1994
City of Carrollton Parks and Recreation Grass Roots Program
Education, Georgia Department of Federal Program Library Services and Construction Act Title III - Interlibrary Cooperation and Resource Sharing

SCHEDULE "3"

$

76.00

230.88

$

306.88

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

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

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Educat;on, Georg;a Department of PubHc Libraries Salaries and Travel Library Materials Ma;ntenance and Operations Other State Programs Teacher's Retirement Lottery Program Media Center and Library Equipment

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 357 ,2B1.61 146,916.00 140,316.00

$ 357,281.61 146,916.00 140,316.00

37,738.28

37,738.28

$ 146,004.62 146,004.62
------------- ------------- -------------

$ 682,251.89$ 146,004.62$ 828,256.51

See notes to the general purpose f;nancial statements. - 22 -

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1994

SCHEDULE "5"

LOCAL SOURCES Boards of Education Bremen, City of Carroll County Carrollton, City of Douglas County Haralson County Heard County Paulding County
City Governments Bowdon Bremen Carrollton
County Governments Board of Commissioners Carroll Douglas Haralson Heard Paulding
Library Board Bremen, City of
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Sales and Services Boo~obile Photocopy Sales

GOVERNMENTAL FUND TYPES

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

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

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

$ 1,237.00

10,168.00

/

3,357.00

8,500.00

2,500.00

16,494.24

6,000.00

1,500.00 9,700.00 111,842.92

$ 1,237.00 10,168.00 3,357.00 8,500.00 2,500.00 16,494.24 6,000.00
1,500.00 9,700.00 111,842.92

111,000.00 114,500.00
3,500.00 5,000.04 a,000.00 $

10,000.00

111,000.00 114,500.00
3,500.00 5,000.04 18,000.00

2,000.00

2,000.00

13,928.34 13,682.13 5,487.03
760.82

315.90

13,928.34 13,682.13 5,802.93
760.82

4,288.80

4,288.80

3,313.90

3,313.90

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

$ 456,760.22$ 10,315.90$ 467,076.12
==-========== ============= =============

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

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

SCHEDULE "6"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Travel of Board Members Property Services Communications and Insurance Library Books and Materials Supplies Utilities Other Expenditures
Nonoperating Costs Building and Building Improvements Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 508,343.74 138,698.79 7,500.00 1,678.02 $ 798.73 28,199.99 27,370.84 345,156.24 25,634.31 40,088.92 959.00

$
777 .45
9,257.64 9,257.70 4,636.66

508,343.74 138,698.79
7,500.00 2,455.47
798.73 28,199.99 36,628.48 354,413.94 30,270.97 40,088.92
959.00

10,384.70

10,384.70

14,710.11 160,287.87 174,997.98

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

$1,149,523.39$ 184,217.32$ 1,333,740.71

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

WEST GEORGIA REGIONAL LIBRARY MEMBERSHIP AND TRAVEL OF LIBRARY BOARD
YEAR ENDED JUNE 30. 1994
BOARD MEMBER ADDRESS
Mr. Steven Crew, Chairman (*) P. 0. Box 63 Dallas, Georgia 30132
Ms. Karen Burkhalter(*) 4120 Oak Stone Drive Douglasville, Georgia 30135
Ms. Barbara Cohran(*) 6408 Mulberry Rock Road Dallas, Georgia 30132
Mr. Benjamin Hyatt(*) 113 East Court Square Franklin, Georgia 30217
Ms. Laura McBrayer (*) 632 Laurel Street Bremen, Georgia 30110
Ms. Paula Mcclung(*) 4521 Daniel Mill Road Winston, Georgia 30187
Ms. Suvess Ricks(*) 9023 Western Pines Drive Douglasville, Georgia 30134
Ms. Vivian Rogers(*) Route 1 Roopville, Georgia 30170
Ms. Jolaine Sims(*) P. 0. Box 157 Buchanan, Georgia 30113
Ms. Jane Toth(*) 200 West Greenwood Drive Carrollton, Georgia 30217
Mr. Clarence Verdell (*) P. 0. Box 522 Villa Rica, Georgia 30180
Mr. Parks Warnock(*) 221 Dixson Road Bowdon, Georgia 30108
(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements.
- 25 -

SCHEDULE "7"

$

673.73

25.00

25.00

25.00

25.00

25.00

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

$

798.73

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

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "8"

PERSONNEL
---------
Ayers, Boak, Brown, Cammons, Cook, Cooper, Egan, Harrison, Herndon, Holmes, Holmes, Hurt, Jordan, Kaylor, Lanham, Massa, Meigs, Morehead, Parmer, Pearson, Pruitt-Green, Reed, Rei necker, Scoggins, Shinn, Stallings, Stamps, Stiles, Terry, Todd, Ward, Wi 11 is, Wood,

Mary Christopher William
Carol s.
Ann G. Kevin L. James P. Carlos B. Alicia Jacine Sara Jacqueline Charles R. Elaine W.
Charlotte s.
Sheila G. Doris E. Shan J. Auril ie V. Heather L. Edith G. Kathleen T. Helen E. Pamela A. Jack P. Nancy C. Sandra Kay Mary Frances Sarah H. Jean L. Becky J. Mack A. Janice G. Kanea S.
Roni L. Cynthia Denise

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

SALARIES

TRAVEL

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

Processing Clerk

$ 12,520.80

Catalog Librarian

15,959.79 $

203.00

Acquisitions Librarian

32,381.20

460.33

Processing Supervisor

15,424.80

Bookmobile Clerk

3,976.95

Director

46,101.20

4,408.47

Extension Services Librarian

7,487.70

Bookmobile Clerk

15,315.60

Assistant at Heard County Branch

162.50

Courier Driver

4,016.87

Summer Library Clerk

1,532.50

Extension Services Librarian

14,251.59

296.49

Library Cl erk

4,981.25

Circulation Assistant

15,341.15

Library Assistant

3,018.28

Li bra ry Cl erk

160.00

Library Assistant

10,359.92

Children's Librarian

33,309.20

291.84

Bookmobile Clerk

163.26

Reference Librarian

3B,306.80

Automation Librarian

35,227.20

639.27

Courier Driver

5,614.30

Catalog Librarian

37,372.80

158.53

Douglas County Branch Coordinator 37,372.80

900.57

Library Assistant

4,858.72

Library Assistant

13,412.40

Bookmobile Clerk

6,746.97

Library Cl erk

954.85

Custodian

5,861.38

Heard County Branch Manager

11,656.20

Office Manager

18,509.76

Assistant Director

38,884.40

141.50

Acquisitions Assistant

17,100.60

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

$ 508,343.74$ 7,500.00
-=----=----=- -=-=------==-

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

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, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Director and Members of the West Georgia 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 oftheWest Georgia Regional Library as ofand for the year ended June 30, 1994, and have issued our report thereon dated February 23, 1995. This report was qualified for various departures 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 perlbmI 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 West Georgia 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 perfomied 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 of our tests indicate that, with respect to the items tested, the West Georgia Regional Library complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Library had not complied, in all material respects, with those provisions.

94CRL-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 ofpublic record.
RZA

CLV:jy 94CRL-I0

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, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe West Georgia 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 ofthe West Georgia Regional Library as of and for the year ended June 30, 1994, and have issued our report thereon dated February 23, 1995. This report was qualified for various departures 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 West Georgia Regional Library's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity
:..
(2) Civil Rights

(5) Allowable Costs/Cost Principles (6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-50

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 the Library had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are described in the Schedule of Findings and Improper or Questioned Costs.
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 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 23, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe West Georgia 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 ofthe West Georgia Regional Library as ofand for the year ended June 30, 1994, and have issued our report thereon dated February 23, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose :financial statements.

In connection with our audit ofthe fiscal year 1994 general purpose :financial statements ofthe West Georgia Regional Library and with our consideration of the Library's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:

(1) Types of Services Allowed or Unallowed

(2) Applicable Special Tests and Provisions

Our procedures were substantially less in scope than an audit, the objective ofwhich is the expression of an opinion on the West Georgia Regional Library's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-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 West Georgia 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 ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94CRL-120

SECTION ill 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, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe West Georgia Regional Library Board
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general pwpose financial statements of the West Georgia Regional Library as ofand for the year ended June 30, 1994, and have issued our report thereon dated February 23, 1995. This report was qualified for various departures 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 ofmaterial misstatement.
In planning and performing our audit ofthe general pwpose financial statements ofthe West Georgia Regional Library for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the pwpose ofexpressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the West Georgia 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
94ICL-3

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 ofchanges in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(1) Cash and Cash Equivalents

(5) Employee Compensation

(2) Revenue/Receivables/Receipts

(6) General Ledger

(3) Procurement

(7) General Fixed Assets

(4) Expenditures/Liabilities/ Disbursements

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

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 ofCertified 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 entity's ability to record, process, summarize, and report financial data consistent with the assertions ofmanagement in the general purpose financial statements.

As descnbed 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 ofone or more ofthe specific 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 all ofthe reportable conditions disclosed above are also considered to be material weaknesses.

94ICL-3

These conditions were considered in detennining the nature, timing, and extent of the procedures to be performed in our audit of the West Georgia Regional Library's financial statements and this report does not affect our report thereon dated February 23, 1995.
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.
Res~tted,

CLV:jy 94ICL-3

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, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe West Georgia 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 pwpose financial statements ofthe West Georgia Regional Library as ofand for the year ended June 30, 1994, and have issued our report thereon dated February 23, 1995. This report was qualified for various departures 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 ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about wheth~the general pwpose financial statements are free ofmaterial misstatement and about whether the West Georgia Regional Library complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, 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 pwpose 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 ofthe general purpose financial statements in a separate report dated February 23, 1995.

94ICL-15

The management of the West Georgia 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, 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 ofinherent limitations in any internal control structure, errors, irregularities, or instances ofnoncompliance 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 ofchanges 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

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

(1) Types of Services Allowed or Unallowed
(2) Matching, Level ofEffort and/or Earmarking

(4) Federal Financial Reports

(3) Reporting

(5) Allowable Costs/Cost Principles (6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution
{~) Administrative Requirements

(4) Applicable Special Tests and Provisions
(5) Other Requirement Claims for Advances and Reimbursements

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

Dring the year ended June 30, 1994, the West Georgia Regional Library had no major Federal financial assistance programs and expended 73% ofits total Federal financial assistance under the following nonmajor Federal financial assistance program:

Library Services and Construction Act, Title I

94ICL-15

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.
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 ofF'mdings 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 ofthis report which is a matter ofpublic record.
a:~
Claude L. Vickers State Auditor
CLV:jy 94ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Drug-Free Workplace Policy Federal Financial Assistance Finding Resolved Audit Control Number 6222-93-03
The audit report for the year ended June 30, 1993, noted that the Library's drug-free workplace policy did not include a requirement that employees notify the Library of any criminal statute conviction for a violation occurring in the workplace within five days of conviction During the year under review, the Library amended their drug-free workplace policy to include all drug-free workplace compliance requirements.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Statements Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6222-93-01
The audit report for the year ended June 30, 1993, stated that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. For the year under review, our audit disclosed that the Library still had not provided for the adequate separation of employee duties. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All Federal financial assistance programs listed on the Schedule of Federal Financial Assistance, Schedule "1" ofthis 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 6222-93-02
The audit report for the year ended June 30, 1993, noted that the management ofthe West Georgia 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

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6222-93-02
accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory 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 for all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6222-94-01
The Library failed to submit a copy ofthe 1993 audit report to the U. S. Department ofEducation from whom the Library received Library Services and Construction Act, Title VI - Library Literacy Act Program (CFDA 84.167) funds. Paragraph 13f of 0MB Circular A-128 requires that the recipients of Federal financial assistance submit copies ofsingle audit reports to those agencies providing Federal Financial Assistance. Even though notified in writing of these report distribution responsibilities, management did not maintain documentation to substantiate that it met its distribution requirements. Procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements and that documentation is maintained to substantiate the distribution.
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6222-94-02
Our audit disclosed that the Library failed to submit a corrective action plan to the following grantors to resolve various findings reported in the 1993 audit report as required by 0MB Circular A-128:

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6222-94-02
U. S. Department of Education -Library Services and Construction Act Title VI - Library Literacy Program (CFDA 84.167)
Georgia Department of Education - Library Services and Construction Act Title I - Public Library Services (CFDA 84.034) Title ID - Interlibrary Cooperation and Resource Sharing (CFDA 84.035)
The Library should implement procedures to submit corrective action plans in accordance with 0MB Circular A-128 as required.
Note: The West Georgia Regional Library was provided an opportunity to include pertinent comments from the Library's management concerning these audit findings, conclusions and recommendations. The Library has elected not to provide comments for inclusion in this report.