?:;A A'600 ,R\ R46 W3 'Q95-9b 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 - 10 - 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. - 11 - 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. - 12 - 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. - 13 - 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.