Audit report, West Georgia Regional Library, Carrollton, Georgia, year ended June 30, 1996

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AUDIT REPORT WEST GEORGIA REGIONAL LIBRARY
CARROLLTON, GEORGIA YEAR ENDED JUNE 30, 1996

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

WEST GEORGIA REGIONAL LffiRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

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

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

17

FIDUCIARY FUND TYPE

I

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

18

SCHEDULES

1 CASH AND CASH EQUIVALENTS

19

2 ACCOUNTS RECEIVABLE

20

SCHEDULE OF REVENUE

3

STATE

21

4

FEDERAL

22

5

OTHER

23

WEST GEORGIA REGIONAL LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

24

7

LOTTERY PROGRAM

25

8

MEMBERSlllP AND TRAVEL OF LIBRARY BOARD

26

9

SCHEDULE OF SALARIES AND TRAVEL

27

SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATEAUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 15, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the West Georgia Regional Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the West Georgia Regional Library, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free 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:
* The general purpose financial statements of the Library did not contain a General Fixed Assets
Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material.

96ARL-42

In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the fmancial position of the West Georgia Regional Library as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the West Georgia Regional Library taken as a whole. The combining and individual fund statements (Exhibits E through I) and the fmancial schedules (Schedules 1 through 9), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the 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, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
L~
Claude L. Vickers State Auditor
CLV:cm 96ARL-42

WEST GEORGIA REGIONAL LIBRARY - 1-

WEST GEORGIA REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 3D, 1996

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Retainages Payable Funds Held for Others
Total Liabilities FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 170,205.87

$

34,962.24

38,493.45 $ _ _-1-,'9-3_8-.3'1--

$ 208,699.32 $

1,938.31 $ ====::l3:=4=,9=6=2=.2=4=

$

1,938.31

$

1,938.31

$ 208,699,32 $ $ 208,699.32 $

$ 0.00 0.00 $

14,495.79 20,466.45 34,962.24

$ 208,699.32 $

1,938.31 $ ==~==34=,9=6=2.=24=

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

EXHIBIT"A"

FIDUCIARY FUND TYPE AGENCY FUND

TOTALS

(Memorandum Only)

JUNE 30, 1996

JUNE 30, 1995

$

1,359.17 $

206,527.28 $

439,091.99

40,431.76

1,403.54

$

1,359.17 $

246,959.04 $ =====4=40=,~49=5=.5=3=

$

1,938.31 $

603.54

25,056.92

$

--1:..,l3.:5:.9.=..1=.7..~

1,359.17

1,265.79

$

1,359.17 $

3,297.48 $ _ _ 26,926.25 -=..0..:..::;-,-=':""

$

14,495.79 $

164,400.53

229,165.77

249,168.75

$

243,661.56 $ _ _4.:.1...3:..,.5.:.6.;o.9..:.;2..:8;...:~

$

1,359.17 $

246,959.04 $ =====4=4=0,=49=5=.5=3=

-3-

WEST GEORGIA REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1996

EXHIBITB

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1996 JUNE 30, 1995

REVENUES

Stale Funds Federal Funds Other Funds

$ 786.299,36 $ 1,411,14
557,895,86

10.000,00 $ 11,056,68

52,307,00 $ 56,473.01

848,606.36 $ 12,467.82
614,368,87

1.277.162.27 27,410.41 616,124,13

Total Revenues

$ 1,345',606.36 $

21,056.68 $ 108,780,01 $ 1,475,443.05 $ 1,920,696.81

EXPENDITURES

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

$ 643,874,05 $ 269,701.48 75,613.97 332,006.97 63,971,53

10,878,18

$

10,178.50 $

239,126.09

654.752.23 $ 269,701.48
75,613.97 342,185.47
63,971,53 239,126.09

465,956.27 247,631,58
68,711.84 343,034.18 63,644.06 457,116.20

Total Expenditures

$ 1,385,168.00 $

21,056,68 $ 239,126.09 $ 1,645,350,77 $ 1,646,094.13

Excess of Revenues over (under) Expenditures

$ -39,561.64 $

0.00 $ -130,346,08 $ -169,907,72 $

274,602.68

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$

10,384,70

-10,384,70

Total Other Financing Sources (Uses)

$

0,00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

-39,561.64 $

0,00 $ -130,346.08 $ -169,907.72 $

274,602,68

FUND BALANCE JULY 1

248,260,96

0,00

165,308,32

413,569,28

138,966.60

FUND BALANCE JUNE 30

$ 208,699,32 $

0.00 $

34,962,24 $ 243,661.56 $

413,569.28

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

WEST GEORGIA REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1,1995

GENERAL FUND

BUDGET

ACTUAL

$ n8,233,OO $ 786,299.36

1,411.14

444,889.53

557,895.86

$ 1,223,122.53 $ 1,345,606.36

$ 632,757.14 $ 260,367.93 79,097.74 332,415.17 66,893,20

643,874.05 269,701.48
75,613.97 332,006.97
63,971,53

$ 1,371,531.18 $ 1,385,168.00

$ -148,408.65 $

-39,561.64

248,260.96

248,260.96

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

10,000.00 $

10,000.00

39,118.37

11,056.68

$

49,118.37 $

21,056.68

$

25,000.00 $

10,878.18

24,118.37

10,178.50

$

49,118.37 $

21,056.68

$

0.00 $

0.00

0.00

0.00

FUND BALANCE JUNE 30,1996

$

99,852.31 $ 208,699.32

$

0.00 $

~0,.0;0"

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

WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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 of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library. The 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 governmental 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 West Georgia Regional Library is determined to be a joint venture.
The Library Board consists of twelve 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 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 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 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.

-6-

WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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 and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 (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.
-7-

WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval 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 of Public Library Services as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist 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.

-8-

WEST GEORGIA REGIONAL LIBRARY

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note "1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist of grant reimbursements due from State or other grantors for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose 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 of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being 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 anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

- 9-

WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS

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

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

(5) Bonds 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, 1996, the bank balances were $288,042.04. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.)

The Library's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category

Bank Balance

1 2 3
Total

$ 142,210.82 0.00
145,831.22 "-
$ 288,042.04

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WEST GEORGIA REGIONAL LffiRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

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 illness or injuries to employees; natural disaster; and unemployment compensation.
The Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the error or omissions policy excludes coverage for sexual harassment and discrimination. 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 expenditure 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 not experienced any unemployment compensation claims during the last two years.
Note 4: 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 5: 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 of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
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WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: RETIREMENT PLANS
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, 1996, was $564,064.11; total payroll was $586,663.26.
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 of Trustees in accordance with State statute and as advised by their independent actuary. At June 30, 1996, 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 1996 amounted to $94,819.47, of which $66,615.93 was made by the Library and $28,203.54 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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WEST GEORGIA REGIONAL LIBRARY

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note "5: RETIREMENT PLANS

Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. 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, 1996, were $607,275,000.00. The Library's contribution for the year ended June 30, 1996, of$66,615.93 was actuarially determined and represented .0109% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 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 6: 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. DOL206119, on which premium was paid through November 27, 1996.

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WEST GEORGIA REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

EXHIBIT"E"

ASSETS Accounts Receivable

LOTTERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC
LIBRARY SERVICES

TOTALS JUNE 30,1996 JUNE 30,1995

$

0.00 $

1,938.31 $

1,938.31 $

603.5~ 4

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

FUND EQUITY

Fund Balances

Unreserved

Undesignated

$

$ 0.00 $

1,938.31 $

1,938.31 $

603.54

0.00 $

0.00 $

0.00

Total Liabilities and Fund Equity

$

0.00 $

1,938.31 $

1,938.31 $

6.0..3.._54

See notes to the general purpose financial statements.

- 14-

WEST GEORGIA REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"F"

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

LOTIERY PROGRAM

LIBRARY SERVICES AND
CONSTRUCTION ACT TITLE I PUBLIC LIBRARY
SERVICES

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30, 1995

$

10,000.00

$

$

10,000.00 $

$ 11,056.68
11,056.68 $

10,000.00 $ 11,056.68
21,056.68 $

12,595.38 26,704.08
39,299.46

$

10,000.00 $

$

10,000.00 $

$

0.00 $

0.00

878.18 $ 10,178.50
11,056.68 $ 0.00 $ 0.00

10,878.18 10,178.50 $
21,056.68 $ 0.00 $ 0.00

39,299.46 39,299.46
0.00 0.00

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 1996

EXHIBIT"G"

Cash and Cash Equivalents

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6222-94S-SB-002

6222-96S-SB-009

TOTALS JUNE 30, 1996 JUNE 30, 1995

$ 20,466.45 $

10,071.22 $

4,424.57 $

34,962.24 $ _ .....1..9..0..,365_.2_4

LIABILITIES AND FUND EQUITY

LIABILITIES

Retainages Payable

FUND EQUITY

Fund Balances

Reserved

For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Fund Equity

$

$ 20,466.45 20,466.45 $

Total Liabilities and Fund Equity

$ 20,466.45 $

10,071.22 $ 0.00
10,071.22 $
10,071.22 $

$ - - - =2=5,0=56=.92-

4,424.57 $ 0.00
4,424.57 $

14.495.79 $

164,400.53

20,466.45

907.79

34,962.24 $_---:1=65=,3'_08'.=32_

4,424.57 $

34,962.24 $ _ ....1.,;9;,0;,:,;3,;6;;;5;...2.4..

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, 1996

EXHIBIT"H"

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

6222-94S-SB-002 6222-96S-SB-009

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

REVENUES

State Funds Other Funds
Total Revenues

$ $ 45,174.46
$ 45,174.46 $

52,307,00 1,256.58 $
s 53,563.58

$ 10,041,97
10,041.97 $

52,307.00 $ 56,473.01
108,780.01 $

470,764,00 152,025.99
622,789.99

EXPENDITURES

Capital Outlay Building and Building Improvements Equipment

s s 25,615.80

83,272.14 $ 124,620.75

s 5,617.40

114,505.34 $ 124,620.75

453,266.20 3,850.00

Total Expenditures

$ 25,615.80 $

207,892.89 $

5,617.40 $

239,126.09 $

457,116.20

Excess of Revenues over (under) Expenditures $ 19.558.66 $

-154.329.31 $

4,424.57 $ -130.346.08 $

165.673.79

OTHER FINANCING USES

Operating Transfers Out

$

-10.384.70

Excess of Revenues over (under) Expenditures

and Other Financing Uses

s 19,558.66 s

-154,329.31 $

s 4.424.57 $ -130,346.08

155,289.09

FUND BALANCE JULY 1

907.79

164,400,53

0.00

165,308.32

10,019.23

FUND BALANCE JUNE 30

$ 20,466.45 $

10,071,22 $

4.424.57 $

=-==-0=.= 34.962.24 $-..__165,308.32

See notes to the general purpose financial statements.

-17 -

WEST GEORGIA REGIONAL LIBRARY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1996

EXHIBIT "I"

STAFF ACCOUNT
ASSETS Cash and Cash Equivalents

BALANCE JULY 1,1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 3D, 1996

$

1,265.79 $

5,718.55 $

5,625.17 $

1,359.17

LIABILITIES Funds Held for Others

$

1,265.79 $

5,718.55 $

5,625.17 $ =======1=,=3=5=9=.1=7=

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

WEST GEORGIA REGIONAL LIBRARY CASH AND CASH EQUIVALENTS JUNE 30,1996

SCHEDULE "1"

NONINTEREST BEARING ACCOUNT
"
West Georgia National Bank, Carrollton, Georgia
INTEREST BEARING ACCOUNTS
Community Trust Bank, Hiram, Georgia
Commercial N,O,w' Account (2.40%)
Regions Bank, Dallas, Georgia
Special Interest Bearing Account (Variable)
Sun Trust Bank, Atlanta, Georgia
Basic Business Checking Account (1.35%)
West Georgia National Bank, Carrollton, Georgia
N.O.w. Account (2.02%)
OTHER
Petty Cash

$

1,359.17

$

5,673,22

24,864.45

4,424.57

168,167.56

203,129.80

100.00 $ 204,588.97

See notes to the general purpose financial statements.

- 19 -

WEST GEORGIA REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "2"

City of Carrollton Parks and Recreation Grass Roots Program
Douglas County Board of Commissioners Local Support Reimbursement for Professional Services
Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services Title III - Interlibrary Cooperation and Resource Sharing
Heard County Board of Commissioners Local Support

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

124,00

$

33,000,00 3,500.00

TOTAL
124.00
33,000.00 3,500.00

$ 240.57
1,628,88

1,938.31

1,938.31 240.57
1,628.88

$

38,493.45 $

1,938,31 $====4=0,=43=1.7=6

See notes to the general purpose financial statements.

- 20 -

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1996

SCHEDULE "3"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Program Technology Installation

$ 474,067.36 146,916.00 140,316.00
$

10,000.00

$ 474,067.36 146,916.00 140,316.00
10,000.00

Community Affairs, Georgia Department of Library Materials Grant

25,000.00

25,000.00

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

_ _ _ _ _ $_---'=:5.:2:,.3.;0,.7;0.0=0..

52,307.00

$ 786,299.36 $

10,000.00 $

52,307.00 $ 848,606.36

See notes to the general purpose financial statements.

- 21 -

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE
YEAR ENDED JUNE 30,1996

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, U. S. Department of Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services Title III - Interlibrary Cooperation and Resource Sharing

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 1,411.14

11,056.68 $

11,056.68 1,411.14

$

1,411.14 $

11,056.68 $ ===12,=46=7.8=2

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

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

LOCAL SOURCES Library Membership Boards of Education Bremen, City of Carroll County Carrollton, City of Douglas County Haralson County Heard County Paulding County Local Support City Governments Bowden Bremen Carrollton Carrollton, Parks and Recreation Lithia Springs County Governments Boards of Commissioners Carroll Douglas Haralson Heard Paulding Library Board Bremen, City of
OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Reimbursement for Professional Services Sales and Services Photocopy Sales Other

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

1,253.00

10,482.00

3,480.00

9,000.00

3,000.00

1,760.00

6,000.00

$

1,253.00

10,482,00

3,480.00

9,000.00

3,000.00

1,760.00

6,000,00

2,000,00 14,000.00 114,399.96
1,235.00 450.00

2,000.00 14,000.00 114,399.96
1,235.00 450.00

114,000.00 170,500.00 $
4,000,00 23,246.86 13,500.00
14,096.64

55,000.00

114,000.00 225,500.00
4,000,00 23,246.86 13,500.00
14,096.64

18,944.53 18,471.71
6,398.88 318.20
3,500.00
3,498.21 360.87

1,473.01

18,944.53 18,471.71
7,871.89 318.20
3,500.00
3,498.21 360.87

$

557,895.86 $

56,473.01 $ 614,368.87

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

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 586,663.26 159,345.00 8,579.02 2,226.87 1,081.67 27,370.83 $ 20,855.72 502,834.12 35,680.69 26,733.88 1,022.00

$
792.00 4,970.68

586,663.26 159,345.00
8,579.02 2,226.87 1,081.67 28,162.83 25,826.40 502,834.12 35,680.69 26,733.88 1,022.00

12,774.94 ,

15,294.00

28,068.94

$ 1,385,168.00 $

21,056.68 $ 1,406,224.68

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

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAM YEAR ENDED JUNE 30. 1996
EXPENDITURES Operating. Costs Property Services Supplies Nonoperating Costs Equipment
Total Expenditures

SCHEDULE "7"

TECHNOLOGY INSTALLATION

$

792.00

4,092.50

5,115.50

$====., ;10;,0;0~0.=00=

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

BOARD MEMBER ADDRESS
Mr. Stevan Crew, Chairman (*) P. O. Box 63 Dallas, Georgia 30132
Mr. Cole N. Black 4045 Old Douglasville Road Lithia Springs, Georgia 30057
Ms. Janice Boatwright (*) P. O. Box 508 Buchanan, Georgia 30113
Ms. Karen Burkhalter (*) 4120 Oak Stone Drive Douglasville, Georgia 30135
Ms. Barbara Cohran (*) 6408 Mulberry Rock Road Dallas, Georgia 30132
Mr. George Dixon (*) 108 Remington Way Carrollton, Georgia 30117
Ms. Ramona Gay (*) 18 Glanton Street Villa Rica, Georgia 30180
Mr. Benjamin Hyatt (*) P. O. Box 1330 Franklin, Georgia 30217
Mr. Suvess Ricks (*) 9023 Western Pines Drive Douglasville, Georgia 30134
Mrs. Vivian Rogers (*) Route 1 Roopville. Georgia 30170
Ms. Jolaine Sims (*) P. O. Box 157 Buchanan, Georgia 30113
Ms. June Strealdorf 5089 North Helton Road Winston, Georgia 30187
Mr. Clarence Verdell (*) P. O. Box 522 Villa Rica, Georgia 30180

WEST GEORGIA REGIONAL LIBRARY MEMBERSHIP AND TRAVEL OF LIBRARY BOARD
YEAR ENDED JUNE 30. 1996

(*) Denotes Board Members Serving as of June 30. 1996 Note: As of June 30,1996, one seat was vacant on the Board.
See notes to the general purpose financial statements.

- 26 -

SCHEDULE "8"

$

889.67

32.00
32.00 32.00 32.00 32.00

32.00

$

1.081.67

l(

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1996

SCHEDULE "9"

PER"SONNEL

Ayers, Bailey, Bright, Brown, Cammons, Cook, Cooper, Delaney, Eubanks, George, Gilliom, Hamilton, Harrison, Harvey, Herndon, Johnson, McGarity, Morehead, Pearson, Pruitt-Green, Reed, Reinecker, Scoggins, Stallings, Stamps, Terry, Todd, Ward, Willis,

Mary Sue Debbie L. Faye L. Carol S. AnnG. Kevin L. James P. Cynthia D.
Laurie A. Deborah R.
JoyT. Heather M. Alicia Jacine Michael D. Sarah J. Deborah J. Tracy Sharon Edith G. Helen E.
Pamela A.
Jack P. Nancy C. Sandra Kay Sarah H. Jean L.
Mack A.
Janice G. Kanea S. Roni L.

POSITION

SALARIES

TRAVEL

Processing Clerk

$

Library Clerk

Assistant at Heard County Branch

Acquisitions Librarian

Processing Supervisor

Bookmobile Clerk

Director

Acquisitions Assistant

Extension Services Librarian

Library Clerk at Heard County Branch

Library Clerk

Library Assistant

Bookmobile Clerk

Library Clerk

Assistant at Heard County Branch

Library Clerk

Library Clerk

Children's Librarian

Reference Librarian

Automation Librarian

Courier Driver

Catalog Librarian

Douglas County Branch Coordinator

Library Assistant

Bookmobile Clerk

Custodian

Heard County Branch Manager

Office Manager

Assistant Director

14,300.70 12,392.10
3,037.50 36,535.40 $ 17,700.60 37,703.60 50,734.80 18,778.80 29,055.00
157.50 3,964.40 12,392.10 17,061.30
482.26 25.00
4,218.80 4,045.23 36,903.60 42,436.40 39,999.80 9,997.92 42,436.40 42,436.40 14,109.97 12,392.10 6,668.46 11,656.20 21,240.72 43,800.20

750.77 31.19
4,674.24 598.60 52.75
349.63 195.88 965.07
31.50 436.89
25.00 68.25 138.00 261.25

============ $

586,663.26 $

8,579.02

See notes to the general purpose financial statements. - 27-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

WEST GEORGIA REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PIDORYEMVCURRENTYEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6222-93-02
The audit report for the year ended June 30, 1995, noted that the management for the 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 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 of all additions and deletions to the General Fixed Assets Account Group.
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.