{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2006-h2007","title":"Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Mountain Regional Library (Young Harris, Ga.)","Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Fannin County, 34.86411, -84.31985","United States, Georgia, Towns County, 34.91665, -83.73728","United States, Georgia, Union County, 34.83401, -83.99076"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2007-06-30"],"dcterms_description":["June 30, 2000-","Title from cover.","Report year covers fiscal year.","June 30, 2004."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Regional libraries--Georgia--Auditing","Regional libraries--Financial statements--Georgia","Mountain Regional Library"],"dcterms_title":["Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MOUNTAIN REGIONAL LIBRARY \nYOUNG HARRIS, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUND \n \n3 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n4 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCE \n \nGOVERNMENTAL FUND \n \n5 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n6 \n \nG \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n7 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCE - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n17 \n \nSUPPLEMENTARY INFORMATION \n \nSCHEDULES OF REVENUE \n \n2 \n \nSTATE \n \n18 \n \n3 \n \nFEDERAL \n \n19 \n \n4 \n \nLOCAL \n \n20 \n \n5 SCHEDULE OF SALARIES AND TRAVEL \n \n21 \n \n MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS - \nSECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION III FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nSECTION IV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 26, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia \nand Director and Members of the Mountain Regional Library Board \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities and the major fund (Exhibits A through G) of the Mountain Regional Library as of and for the year ended June 30, 2007, which collectively comprise the Library's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Mountain Regional Library's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe Library's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Mountain Regional Library, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2007ARL-41 \n \n The Mountain Regional Library has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 17 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Mountain Regional Library's basic financial statements. The accompanying supplementary information which consist ofSchedules 2 through 5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. \nA 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. \nRespectfully submitted, \n \nRWH:gp 2007ARL-41 \n \n~.,Jlll{).~ \nRussell W. Hinton, CPA, CGFM State Auditor \n \n MOUNTAIN REGIONAL LIBRARY \n \n MOUNTAIN REGIONAL LIBRARY STATEMENT OF NET ASSETS \nJUNE 30, 2007 \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \nOther Allowance for Doubtful Accounts Capital Assets Equipment Library Collections Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES Long-Term Liabilities \nDue Within One Year NET ASSETS \nInvested in Capital Assets, Net of Related Debt Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n228,948.20 \n \n251,589.98 \n \n2,060.65 -1,092.14 \n \n22,383.00 884,143.00 -668,484.80 \n \n$ ===7=1-9,.5.4.=7=.8=9 \n \n$ _ _ _=23:.,.,.:;.;90;.=2:,:.;:.8:.;:;.9 \n \n$ \n \n238,041.20 \n \n457,603.80 \n \n$ _ ___:;;6.:;.;95;;.,.,6=-4;.;:;5.:.;:.o:.;:;.o \n \n$ ===7=1-9,.5.4.=7=.8=9 \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n MOUNTAIN REGIONAL LIBRARY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"B\" \n \nEXPENSES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCHARGES FOR \n \nGRANTS AND \n \nSERVICES \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \nGOVERNMENTAL ACTIVITIES \n \nCurrent Services Public Services Technical Services Support Services Maintenance and Operations Information Technology \n \n$ 328,343.13 $ 57,255.14 372,223.27 32,351.32 35,233.73 \n \n4,619.56 $ \n \n73,212.00 $ \n288,880.33 24,637.80 \n \n-250,511.57 -57,255.14 -83,342.94 -7,713.52 -35,233.73 \n \nTotal Governmental Activities \n \n$ 825,406.59 $ \n \n4,619.56 $====3=86=,7=30.13 $ \n \n-434,056.90 \n \nGeneral Revenues Allotments from Participating Governments Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Proceeds from Legal Settlement \n \n$ \n \n415,544.53 \n \n4,816.64 5,278.74 23,029.99 \n \n150,000.00 \n \nTotal General Revenues and Special Items \n \n$ _ _ _5_9-8~,6~69~.-90~ \n \nChange in Net Assets \n \n$ \n \n164,613.00 \n \nNet Assets - Beginning of Year \n \n531,032.00 \n \nNet Assets - End of Year \n \n$ ==.....,6,..95..,,6..4..5.,..o=o \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n MOUNTAIN REGIONAL LIBRARY BALANCE SHEET \nGOVERNMENTAL FUND JUNE 30, 2007 \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \nOther Allowance for Doubtful Accounts \nTotal Assets \nFUND BALANCE Unreserved \nUndesignated Reported in: General Fund \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \n$ \n \n228,948.20 \n \n251,589.98 \n \n2,060.65 -1 092.14 \n \n$ ===4=8=1a!=5=06==69= \n \n$ ======4=81=!,,5=0=6=.6=9 \n \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \n MOUNTAIN REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT \"D\" \n \nTotal Fund Balance - Governmental Fund (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nEquipment Library Collections Accumulated Depreciation \nTotal Capital Assets \nLong-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nCompensated Absences \n \n$ 481,506.69 \n \n$ \n \n22,383.00 \n \n884,143.00 \n \n-668,484.80 \n \n238,041.20 \n \n-23,902.89 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 695,645.00 \n \nThe notes to the basic financial statements are an integral part of this statement. -4 - \n \n MOUNTAIN REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE \nGOVERNMENTAL FUND \nYEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"E\" \n \nREVENUES \nLocal Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Support Services Maintenance and Operations Information Technology \nDebt Services Principal \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nProceeds from Legal Settlement Proceeds from Equipment \nTotal Other Financing Sources \nNet Change in Fund Balance \nFund Balance - Beginning \nFund Balance - Ending \n \nGENERAL FUND \n$ 415,544.53 366,269.61 20,460.52 4,619.56 5,278.74 30,993.13 \n$ 843,166.09 \n \n$ 327,567.95 57,255.14 372,223.27 32,351.32 35,233.73 \n \n13,522.99 \n \n$ 838,154.40 \n \n$ \n \n5,011.69 \n \n$ 150,000.00 40,250.00 \n$ 190,250.00 $ 195,261.69 \n286,245.00 \n \n$ 481,506.69 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n MOUNTAIN REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balance - Governmental Fund (Exhibit \"E\") \n \n$ 195,261.69 \n \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \n \nCapital Outlay Depreciation Expense \nExcess of Depreciation Expense over Capital Outlay \n \n$ 65,425.00 -62,812.30 \n \n2,612.70 \n \nIn the Statement of Activities, only the gain on the sale of the equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the equipment sold. \n \n-43,396.50 \n \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \n \nNote Payments \n \n13,523.00 \n \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \n \nIncrease in Compensated Absences \n \n-3,387.89 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 164,613.00 \n \nThe notes to the basic financial statements are an integral part of this statement. -6 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nNote 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY \nREPORTING ENTITY \nThe Mountain Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. \nThe Library Board is comprised of 14 members which are also trustees ofthe member library which appointed them. The Library Board membership consists of6 members appointed from the Fannin County Library Board, 4 members appointed from the Towns County Library Board and 4 members appointed from the Union County Library Board. The Library Board is without authority to determine the amount of its 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 flow through funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Mountain Regional Library is therefore determined to be a joint venture. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe Library's basic financial statements are collectively comprised of the Library-wide financial statements, fund financial statements and notes to the basic financial statements of the Mountain Regional Library. \nLibrary-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall Library. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Library's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the Library related to the administration and support of the Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues. \n-7- \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nFund Financial Statements: The fund financial statements provide information about the Library's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds. \nThe Library reports the following major governmental fund: \n General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library, except those resources required to be accounted for in another fund. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The Library-wide governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The Library considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Interest is considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \nThe Library funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Library's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \n \n-8- \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code ofGeorgia Annotated Section 45-8-14 authorizes the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nThe Library does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \n \n-9- \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nRECEIVABLES \n \nReceivables consist ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, fines and fees from patrons 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 basic financial statements do include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the Library-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the Library. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the Library-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nEquipment Library Collections \n \n$ 5,000.00 10 to 20 years \n \nAll \n \n10 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nNET ASSETS \n \nThe Library's net assets in the Library-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the Library's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \n \n- IO - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nUnrestricted net assets - Unrestricted net assets represent resources derived from grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the general operations ofthe Library, and may be used at the discretion of the Library to meet current expenses for those purposes. \nNote 3: DEPOSITS \nCOLLATERALIZATION 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 ofthe 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 ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. At June 30, $13,378.36 ofdeposits were not secured by surety bond, insurance or collateral as specified above. The Library is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the Library's deposits. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n(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 or 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. \n- 11 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nNote 3: DEPOSITS \n \nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $514,147.02. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \n \nCategory 1 - Uncollateralized Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the Library's name. \n \nThe Library's deposits are classified by custodial credit risk category at June 30, 2007, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 13,378.36 \n \n2 \n \n0.00 \n \n3 \n \n281,748.14 \n \nTotal \n \n$ 295,126.50 \n \nNote 4: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets Being Depreciated \nEquipment Library Collections \nLess Accumulated Depreciation for: Equipment Library Collections \nGovernmental Activity Capital Assets - Net \n \nBalances July 1. 2006 \n \nIncreases \n \nDecreases \n \nBalances June 30. 2007 \n \n$ 146,373.00 \n \n$ 123,990.00 $ 22,383.00 \n \n883,357.00 $ 65,425.00 \n \n64,639.00 884,143.00 \n \n71,552.00 679.353.00 \n \n14,637.30 48.175.00 \n \n80,593.50 64.639.00 \n \n5,595.80 662.889.00 \n \n$ 278,825,QQ $ 2,612.:ZQ $ 43,326.50 $ 238,041.20 \n \nCurrent year depreciation expense by function is as follows: \n \nPublic Services \n \n$ 62,812.30 \n \n- 12 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"G\" \n \nNote 5: RISK MANAGEMENT \n \nThe Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe Library has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. \n \nThe Library has elected to self-insure for all losses related to acts of God. The Library has not experienced any losses related to this risk in the past three years. \n \nThe Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years. \n \nThe Library has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees \n \n$ 25,000.00 \n \nNote 6: LONG-TERM DEBT \n \nCOMPENSATED ABSENCES Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The Library uses the vesting method to compute compensated absences. \n \nPROMISSORY NOTES The Library has entered into a lending agreement with a commercial lending institution for the purpose of purchasing a van. This note was paid off in full during the year under review. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \n \n- 13 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nNote 6: LONG-TERM DEBT \n \nGovernmental Funds \n \nCompensated Promissory \n \nAbsences \n \nNotes \n \nTotal \n \nBalance July 1, 2006 \nAdditions Annual Leave Earned \nDeductions Annual Leave Utilized Debt Retired \n \n$ 20,515.00 $ 13,523.00 $ 34,038.00 \n \n28,113.17 \n \n28,113.17 \n \n24,725.28 \n \n13,523.00 \n \n24,725.28 13,523.00 \n \nBalance June 30, 2007 \n \n$ 23,902.89 $ \n \n0.00 $ 23,902.89 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 23,902.89 $ \n \n0.00 $ 23,902.89 \n \nNote 7: SPECIAL ITEMS \n \nThe Library was involved in a legal proceeding pertaining to the purchase of a Bookmobile that proved defective. Mountain Regional Library obtained a judgment against two ofthe manufacturers on December 15, 2004, in the amount of$135,146.00. Those defendants appealed the decision and the Georgia Court ofAppeals affirmed the decision ofthe trial court. The defendants did not appeal the judgment any further. In the year under review, the Mountain Regional Library received settlement proceeds totaling $150,000.00, representing the judgment plus interest. \n \nNote 8: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nNote 9: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple \n \n- 14 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nNote 9: RETIREMENT PLANS \n \nemployer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2007 2006 2005 \n \n100% 100% 100% \n \n$ 41,620.23 $ 37,673.00 $ 37,964.00 \n \n- 15 - \n \n (This page left intentionally blank) \n \n MOUNTAIN REGIONAL LIBRARY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"1\" \n \nREVENUES \nLocal Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Support Services Maintenance and Operations Information Technology \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nSPECIAL ITEMS \nProceeds from Legal Settlement Proceeds from Equipment \nTotal Special Items \nNet Change in Fund Balance \nFund Balance - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \n$ \n \n416,681.67 $ \n \n418,044.53 $ \n \n415,544.53 \n \n354,918.06 \n \n366,269.61 \n \n366,269.61 \n \n20,060.52 \n \n25,660.52 \n \n20,460.52 \n \n820.00 \n \n934.41 \n \n4,619.56 \n \n1,400.00 \n \n1,400.00 \n \n5,278.74 \n \n30,000.00 \n \n30,000.00 \n \n30,993.13 \n \n$ \n \n823,880.25 $ \n \n842,309.07 $ \n \n843,166.09 \n \n$ \n \n328,854.17 $ \n \n332,602.69 $ \n \n327,567.95 \n \n56,559.13 \n \n60,706.30 \n \n57,255.14 \n \n370,152.36 \n \n377,430.33 \n \n372,223.27 \n \n39,196.10 \n \n41,013.71 \n \n32,351.32 \n \n40,000.00 \n \n38,307.30 \n \n35,233.73 \n \n13,522.99 \n \n$ \n \n834,761.76 $ \n \n850,060.33 $ \n \n838,154.40 \n \n$ \n \n-10,881.51 $ \n \n-7,751.26 $ \n \n5 011.69 \n \n$ \n \n-10,881.51 $ \n \n10,545.00 \n \n$ \n$ -7,751.26 $ 10,545.00 \n \n150,000.00 40,250.00 \n190,250.00 195,261.69 \n286,245.00 \n \nFund Balance - Ending \n \n$ \n \n-336.51 $ \n \n2,793.74 $ ===48=1=,5=0=6-=69.,. \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual \nThe accompanying schedule of revenues, expenditures and changes in fund balance budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 17 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30, 2007 \nAGENCY/FUNDING GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Library Materials Maintenance and Operations \n \nSCHEDULE \"2\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n288,960.54 \n \n52,671.27 \n \n24,637.80 \n \n$ =======36=6=,2=6=9.=6=1 \n \nSee notes to the basic financial statements. \n \n-18- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE \nYEAR ENDED JUNE 30, 2007 \nAGENCY/FUNDING GRANTS Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act Family Literacy Vacation Reading Program \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n16,460.52 \n \n4,000.00 \n \n$ =====2,;;;,i0,,,;,;46;;,;;;0,;,;;;.5~2 \n \nSee notes to the basic financial statements. \n \n- 19 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE \nYEAR ENDED JUNE 30, 2007 \nLOCAL SOURCES Boards of Education Fannin County Towns County Union County City Governments Blairsville Blue Ridge Hiawassee McCaysville Morganton Young Harris County Governments Boards of Commissioners Fannin Towns Union \n \nSCHEDULE \"4\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n59,367.90 \n \n50,360.00 \n \n42,000.00 \n \n3,000.00 3,000.00 1,500.00 \n500.00 200.00 3,000.00 \n \n76,112.66 74,825.17 101,678.80 \n \n$ ===4=15=,5=4=4=.5=3 \n \nSee notes to the basic financial statements. \n \n- 20 - \n \n NAME \nAsh, Wilma B. Berdux, Janice Boyd, Sandra Brendle, Mary Sue Carney, Michele L. Carver-Gay, Donna Clark, Teddy P. Delcuze, Elaine K. Everett, Barbara Foster, Linda M. Haymore, Teresa P. Hicks, Lynette M. Howell, Donna W. Johnson, Peter Keys, Peggy A. Massey, Bettie G. Nelson, Jennifer Nichols, Betty Jean Oates, Lelane Phillips, Deborah C. Pittman, Vanessa Pruitt, Hannah Steigerwalt, Elizabeth Vaughn, Sondra Weaver, Nannette M. Willis, Carmen Wood, Sandra D. \nTotals per Report \n \nMOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"5\" \n \nTITLE CATEGORY \nAccounting Assistant \u0026 Temp Library Assistant Library Assistant Librarian Library Assistant Library Assistant Technical Processing Coordinator Regional Reference Assistant Library Assistant Children's Service Coordinator Librarian Library Assistant Director Technology Librarian Bookmobile Coordinator Library Assistant Library Assistant Bookmobile Assistant Library Assistant Branch Manager/Bookkeeper Library Assistant Library Assistant Library Assistant Technical Processing Coordinator Library Assistant Library Assistant Library Assistant \n \nSALARIES \n \nTRAVEL \n \n$ \n \n3,391.50 $ \n \n13,973.75 \n \n2,624.00 \n \n48,988.74 \n \n15,775.08 \n \n13,437.19 \n \n8,623.97 \n \n21,610.80 \n \n5,434.00 \n \n17,370.08 \n \n65,062.32 \n \n1,069.25 \n \n76,029.30 \n \n43,449.42 \n \n19,425.10 \n \n7,961.48 \n \n6,643.00 \n \n9,064.75 \n \n9,579.60 \n \n27,352.80 \n \n15,881.50 \n \n4,526.93 \n \n3,662.21 \n \n15,784.20 \n \n7,277.60 \n \n16,704.00 \n \n8,188.28 \n \n356.41 99.24 267.12 2,869.00 311.85 2,834.77 525.22 \n1,061.93 \n286.01 \n \n$ 488,890.85 $ ==8=,6=1=1-=5=5 \n \nSee notes to the basic financial statements. \n \n- 21 - \n \n SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n MOUNTAIN REGIONAL LIBRARY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7392-05-01 FS-7392-06-01 FS-7392-06-02 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS INVESTMENTS GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-7392-06-02 \n \nWe concur with this finding. All branch bank accounts and certificates of deposits or investments will be added to the Library system accounting program and be subject to the same oversight and reporting as the regional library accounts. All documentation will be maintained in the branch libraries and will be auditable. \n \n SECTION III FINDINGS AND QUESTIONED COSTS \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nCOMMUNICATION OF INTERNAL CONTROL DEFICIENCIES \n \nThe auditor is required to communicate to management and those charged with governance control deficiencies identified during the course of the financial statement audit that, in the auditor's judgment, constitute significant deficiencies or material weakness. \n \nA control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Mountain Regional Library's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Mountain Regional Library's financial statements that is more than inconsequential will not be prevented or detected by the Mountain Regional Library's internal control. \n \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Mountain Regional Library's internal control. \n \nAny identified deficiencies in internal controls that we did not consider to be significant deficiencies and/or material weaknesses have been communicated to management and those charged with governance within a separate management letter dated September 26, 2008. Internal control deficiencies identified during the course ofthis engagement that were considered to be significant deficiencies and/or material weaknesses are presented below: \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7392-07-01 \n \nCondition: \n \nThe Library did not have adequate controls in place over the financial statement reporting process. \n \nCriteria: \n \nManagement is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. \n \nQuestioned Cost: NIA \n \n- 1- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7392-07-01 \n \nInformation: \n \nThe Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the Library's financial statements. During the audit, numerous correcting entries were proposed by the auditor and accepted by the client to properly present the entity's fund level and entity-wide level financial statements. \n \nCause: \n \nThe Library did not implement an adequate system of internal control over the financial statement reporting process. \n \nEffect: \n \nThe Library did not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \n \nRecommendation: \n \nThe Library should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \n \nCASH AND CASH EQUIVALENTS INVESTMENTS GENERAL LEDGER Inadequate Accounting Procedures Material Weakness Finding Control Number: FS-7392-07-02 \n \nCondition: \n \nThis is a repeat finding (FS-7392-06-02) from the year ended June 30, 2006. The accounting procedures of the Library were insufficient to provide for adequate internal controls over cash and investment accounts. \n \nCriteria: \n \nThe Library's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \n-2- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nCASH AND CASH EQUIVALENTS INVESTMENTS GENERAL LEDGER Inadequate Accounting Procedures Material Weakness Finding Control Number: FS-7392-07-02 \n \nInformation: \n \nCash and Cash Equivalents - Four branch library checking accounts totaling $28,605.40 were not recorded on the Library's General Ledger. \n \nInvestments - Six branch library certificates of deposit totaling $46,251.70 were not recorded on the Library's General Ledger. \n \nAudit adjustments to properly reflect these assets were made to the basic financial statement of the Library. \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the branch level. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nManagement should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \n-3 - \n \n SECTION IV MANAGEMENT'S RESPONSES \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2007 \nMountain Regional Library's responses to the findings described below were not audited and accordingly, we express no opinion on it. \nFinding Control Number: FS-7392-07-01 \nWe concur with this finding. The Library System had insufficient staffand staffexpertise to prepare our own financial statements for fiscal year 2007 and requested that the Department ofAudits and Accounts prepare them and assess this finding. In an effort to provide the necessary expertise and stafftime for these accounting functions, the Mountain Regional Library System Board ofTrustees approved the new position ofHR Assistant and Bookkeeper. The job description for this employee includes the ability to prepare financial statements and work in conjunction with the auditor to ensure accurate financial reporting and to create and maintain accurate accounting procedures documentation. The Library is in the process of interviewing for this position. \nFinding Control Number: FS-7392-07-02 \nWe concur with this finding. Due to problems with the CompuTrain Library Accounting Program (CTLAP) software, the Library System converted to Blackbaud Financial Edge Accounting Program (BFEAP) in fiscal year 2008. As fiscal year 2008 was already in progress at the time of our fiscal year 2006 audit, when this finding was originally given, the Library elected not to attempt to add branch bank accounts and investments retroactively to CTLAP for fiscal year 2007. The accounts were added during fiscal year 2008 to the BFEAP system. All supporting documentation will be maintained in auditable condition in the branch libraries. \nContact Person: Donna W. Howell, Director Phone: (706) 379-1319 Fax: (706) 379-2047 E-mail: howelld@mountainregionallibrary.org \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2005-h2006","title":"Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Mountain Regional Library (Young Harris, Ga.)","Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Fannin County, 34.86411, -84.31985","United States, Georgia, Towns County, 34.91665, -83.73728","United States, Georgia, Union County, 34.83401, -83.99076"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2006-06-30"],"dcterms_description":["June 30, 2000-","Title from cover.","Report year covers fiscal year.","June 30, 2004."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Regional libraries--Georgia--Auditing","Regional libraries--Financial statements--Georgia","Mountain Regional Library"],"dcterms_title":["Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MOUNTAIN REGIONAL LIBRARY \nYOUNG HARRIS, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENTOFNETASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUND \n \n3 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n4 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCE \n \nGOVERNMENTAL FUND \n \n5 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCE TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n8 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCE - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n17 \n \nSUPPLEMENTARY INFORMATION \n \nSCHEDULES OF REVENUE \n \n2 \n \nSTATE \n \n18 \n \n3 \n \nFEDERAL \n \n19 \n \n4 \n \nLOCAL \n \n20 \n \n5 SCHEDULE OF SALARIES AND TRAVEL \n \n21 \n \n MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS - \nSECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION III FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nSECTION IV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 22, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members ofthe Board ofRegents ofthe University System of Georgia \nand Director and Members ofthe Mountain Regional Library Board \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities and the major fund (Exhibits A through G) ofthe Mountain Regional Library as ofand for the year ended June 30, 2006, which collectively comprise the Library's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Mountain Regional Library's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 opinions. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Mountain Regional Library, as of June 30, 2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n \n2006ARL-41 \n \n The Mountain Regional Library has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 17 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Mountain Regional Library's basic financial statements. The accompanying supplementary information which consist ofSchedules 2 through 5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. \nA 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. \nRespectfully submitted, \n~-4~ \nRus 11 W. Hinton, CPA, CGFM State Auditor \nRWH:as 2006ARL-41 \n \n MOUNTAIN REGIONAL LIBRARY \n \n MOUNTAIN REGIONAL LIBRARY STATEMENT OF NET ASSETS JUNE 30, 2006 \nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \nFederal Government Capital Assets \nEquipment Library Collections Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities NET ASSETS Invested in Capital Assets, Net of Related Debt Unrestricted Total Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n207,358 \n \n75,287 \n \n3,600 \n \n146,373 883,357 -750 905 \n \n$ ====5=6=5=0=70= \n \n$ \n \n26,111 \n \n7 927 \n \n$ \n \n34 038 \n \n$ \n \n265,302 \n \n265 730 \n \n$ \n \n531 032 \n \n$ ======5=65=0=70= \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 1- \n \n MOUNTAIN REGIONAL LIBRARY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2006 \n \nEXHIBIT \"B\" \n \nEXPENSES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCHARGES FOR \n \nGRANTS AND \n \nSERVICES \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \nGOVERNMENTAL ACTIVITIES \n \nCurrent Services Public Services Technical Services Support Services Maintenance and Operations Information Technology \n \n$ 318,131 $ 48,510 362,895 83,807 10,383 \n \n2,364 $ \n \n294,217 $ 36,711 \n \n-21,550 -48,510 -362,895 -47,096 -10 383 \n \nTotal Governmental Activities \n \n823,726 $ \n \n2 364 $ \n \n330 928 $ _ _ _ _-4_9_0,~434_ \n \nGeneral Revenues Allotments from Participating Governments Investment Earnings Miscellaneous \n \n$ \n \n377,928 \n \n1,215 \n \n134 575 \n \nTotal General Revenues \n \n$ _ _ _~5~1~3~7~18~ \n \nChange in Net Assets \n \n$ \n \n23,284 \n \nNet Assets - Beginning of Year \n \n507 748 \n \nNet Assets - End of Year \n \n$ ====5=3='1..,03=2= \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n MOUNTAIN REGIONAL LIBRARY BALANCE SHEET \nGOVERNMENTAL FUND \nJUNE 30, 2006 \nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \nFederal Government \nTotal Assets \nFUND BALANCE Unreserved \nUndesignated Reported in: General Fund \n \nEXHIBIT \"C\" \n \nGENERAL FUND \n \n$ \n \n207,358 \n \n75,287 \n \n3600 \n \n$ ==2=8==6=,24=5= \n \n$ ==2=8=6=,2=45= \n \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \n MOUNTAIN REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \n \nEXHIBIT\"D\" \n \nTotal Fund Balance - Governmental Fund (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nEquipment Library Collections Accumulated Depreciation \nTotal Capital Assets \nLong-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nCompensated Absences Note Payable \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ \n \n286,245 \n \n$ 146,373 883,357 -750,905 \n \n278,825 \n \n$ \n \n-20,515 \n \n-13,523 \n \n-34,038 \n \n$ ===5=31=,0=3=2 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"E\" \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE \n \nGOVERNMENTAL FUND \n \nYEAR ENDED JUNE 30, 2006 \n \nREVENUES \nLocal Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Support Services Maintenance and Operations Information Technology \nDebt Services Principal \nTotal Expenditures \nNet Change in Fund Balance \nFund Balance - Beginning \nFund Balance - Ending \n \nGENERAL FUND \n \n$ \n \n377,928 \n \n312,848 \n \n18,080 \n \n2,364 \n \n1,215 \n \n134,575 \n \n$ \n \n847,010 \n \n$ \n \n257,856 \n \n48,510 \n \n362,895 \n \n83,807 \n \n10,383 \n \n5,596 \n \n$ \n \n769,047 \n \n$ \n \n77,963 \n \n208,282 \n \n$ ==2..s...s....2..4=5= \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n (This page left intentionally blank) \n \n MOUNTAIN REGIONAL LIBRARY RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balance - Governmental Fund (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Depreciation Expense over Capital Outlay \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nNote Payments \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nIncrease In Compensated Absences \n \n$ \n \n$ \n \n40,145 \n \n-90,655 \n \n77,963 \n-50,510 5,596 -9 765 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ ===2=3=,2=8=4 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"G\" \n \nNote 1: DESCRIPTION OF LIBRARY AND REPORTING ENTITY \nREPORTING ENTITY \nThe Mountain Regional Library (Library) operates pursuant to Official Code ofGeorgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. \nThe Library Board is comprised of 14 members which are also trustees ofthe member library which appointed them. The Library Board membership consists of6 members appointed from the Fannin County Library Board, 4 members appointed from the Towns County Library Board and 4 members appointed from the Union County Library Board. The Library Board is without authority to determine the amount ofits funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State ofGeorgia for State and Federal flow through funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Mountain Regional Library is therefore determined to be a joint venture. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe Library's basic financial statements are collectively comprised of the Library-wide financial statements, fund financial statements and notes to the basic financial statements of the Mountain Regional Library. \nLibrary-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall Library. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through intergovernmental revenues and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the Library's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the Library related to the administration and support ofthe Library's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues. \n-8- \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"G\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nFund Financial Statements: The fund financial statements provide information about the Library's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds. \nThe Library reports the following major governmental fund: \n General Fund is the Library's primary operating fund. It accounts for all financial resources of the Library, except those resources required to be accounted for in another fund. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The Library-wide governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The Library considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Interest is considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal on general Long-Term Debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general Long-Term Liabilities are reported as other financing sources. \nThe Library funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Library's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \n \n-9 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"G\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist ofamounts due from grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information \n \n- 10 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"G\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \navailable. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the Library-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the Library-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nEquipment Library Collections \n \n$ \n \n5,000 10 to 20 years \n \nAll \n \n10 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nNote 3: DEPOSITS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe 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 ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n- 11 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"G\" \n \nNote 3: DEPOSITS \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(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 or 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. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2006, the bank balances were $309,909. The amounts of the total bank balances are classified into four categories of custodial credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name. \nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name. \nCategory 4 - Uncollateralized. \n \nThe Library's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 115,858 \n \n2 \n \n0 \n \n3 \n \n194,051 \n \n4 \n \n0 \n \nTotal \n \n$=====3=='09-,9===0==9 \n \n- 12 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"G\" \n \nNote 4: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets Being Depreciated \nEquipment Library Collections \nLess Accumulated Depreciation for: Equipment Library Collections \nGovernmental Activity Capital Assets - Net \n \nBalances July 1, 2005 \n \nIncreases \n \nBalances Decreases June 30, 2006 \n \n$ 146,373 888,619 $ \n \n40,145 $ \n \n$ 45,407 \n \n146,373 883,357 \n \n31,652 674,005 \n$ 329.335 $ \n \n39,900 50,755 \n-50.510 $ \n \n45 407 Q $ \n \n71,552 679,353 \n218.825 \n \nCurrent year depreciation expense by function is as follows: \n \nPublic Services Note 5: RISK MANAGEMENT \n \n$==\"=90-,6=5==5 \n \nThe Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe Library has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. \n \nThe Library has elected to self-insure for all losses related to acts of God. The Library has not experienced any losses related to these risks in the past three years. \n \nThe Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years. \n \nThe Library has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees \n \n$ \n \n10,000 \n \n- 13 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"G\" \n \nNote 6: LONG-TERM DEBT \n \nNOTE PAYABLE The Mountain Regional Library has entered into a financing agreement for the purchase ofa vehicle. This general Long-Term Debt has been recorded at the present value of the future minimum debt payments as of the date of its inception. \n \nCOMPENSATED ABSENCES Compensated absences represent obligations ofthe Library relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. The Library uses the vesting method to compute compensated absences. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2006, were as follows: \n \nGovernmental Funds \n \nNote \n \nCompensated \n \nPayable \n \nAbsences \n \nTotal \n \nBalance July 1, 2005 \n \n$ \n \n19,119 $ \n \n10,750 $ \n \n29,869 \n \nAdditions Annual Leave Earned \n \n26,327 \n \n26,327 \n \nDeductions Annual Leave Utilized Debt Retired \n \n5,596 \n \n16,562 \n \n16,562 5,596 \n \nBalance June 30, 2006 \n \n$ \n \n13,523 $ \n \n20,515 $==-34-,0...,3-8 \n \nPortion of Long-Term Debt \n \nDue within One Year \n \n$ \n \n5,596 $ \n \n20.515 $_---CC2~6,~11~1 \n \nAt June 30, 2006, payments due by fiscal year which includes principal payments for the Note are as follows: \n \nFiscal Year Ended June 30 \n2007 2008 2009 \nTotal Principal \n \nNote Payable Principal \n \n$ \n \n5,596 \n \n5,596 \n \n2,331 \n \n$ \n \n13,523 \n \n- 14 - \n \n MOUNTAIN REGIONAL LIBRARY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"G\" \n \nNote 7: SIGNIFICANT CONTINGENT LIABILITIES \n \nThe Library is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Library operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 8: SUBSEQUENT EVENTS \n \nThe Library was involved in a legal proceeding pertaining to the purchase of a Bookmobile that proved defective. Mountain Regional Library obtained a judgment against two ofthe manufacturers on December 15, 2004, in the amount of$135,146. Those defendants appealed the decision and the Georgia Court ofAppeals affirmed the decision ofthe trial court. The defendants did not appeal the judgment any further. In the period subsequent to June 30, 2006, the defendants then paid the judgment, plus interest, in the amount of$150,000 to Mountain Regional Library. \n \nNote 9: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2006 2005 2004 \n \n100% 100% 100% \n \n$ 37,673 $ 37,964 $ 39,250 \n \n- 15 - \n \n (This page left intentionally blank) \n \n MOUNTAIN REGIONAL LIBRARY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"1\" \n \nREVENUES \nLocal Funds State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Support Services Maintenance and Operations Information Technology \nDebt Service \nTotal Expenditures \nNet Change in Fund Balance \nFund Balance - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \n$ \n \n433,787 $ \n \n377,928 $ \n \n377,928 \n \n322,771 \n \n312,848 \n \n312,848 \n \n1,200 \n \n18,080 \n \n18,080 \n \n29,332 \n \n2,364 \n \n1,348 \n \n1,348 \n \n1,215 \n \n1 746 \n \n3,282 \n \n134 575 \n \n$ \n \n760,852 $ \n \n742 818 $ \n \n847 010 \n \n$ \n \n302,158 $ \n \n268,060 $ \n \n257,856 \n \n50,367 \n \n52,543 \n \n48,510 \n \n359,683 \n \n350,061 \n \n362,895 \n \n42,644 \n \n62,690 \n \n83,807 \n \n6,000 \n \n9,464 \n \n10,383 \n \n5 596 \n \n$ \n \n760,852 $ \n \n742 818 $ \n \n769 047 \n \n$ \n \n0 $ \n \n0 $ \n \n77,963 \n \n10 545 \n \n10 545 \n \n208,282 \n \nFund Balance - Ending \n \n$ \n \n10 545 $ \n \n10 545 $ ======2=8=6=,2=4.5.. \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 17 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30, 2006 \nAGENCY/FUNDING GRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Library Materials Maintenance and Operations \n \nSCHEDULE \"2\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n253,025 \n \n23,112 \n \n36 711 \n \n$ ====3=1=2'=,8=48= \n \nSee notes to the basic financial statements. \n \n- 18 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE \nYEAR ENDED JUNE 30, 2006 \nAGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program \n \nSCHEDULE \"3\" \nGOVERNMENTAL FUND TYPE GENERAL FUND \n$ =======18=0=80= \n \nSee notes to the basic financial statements. \n \n- 19 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE \nYEAR ENDED JUNE 30, 2006 \nLOCAL SOURCES County Governments Boards of Commissioners Fannin County Towns County Union County Boards of Education Fannin County Towns County Union County City Governments Blairsville Blue Ridge Hiawassee McCaysville Morganton Young Harris \n \nSCHEDULE \"4\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n66,933 \n \n67,744 \n \n90,000 \n \n56,007 48,422 38,122 \n \n3,000 3,000 1,000 \n500 200 3 000 \n \n$ ====3=7=7,=9=28= \n \nSee notes to the basic financial statements. \n \n-20- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"5\" \n \nNAME \nAdams, Jenny Ash, WilmaB. Berdux, Janice Brendle, Mary Sue Carney, Michele L. Carver-Gay, Donna Clark, Teddy P. Delcuze, Elaine K. Everett, Barbara Foster, Linda M. Haymore, Teresa P. Howell, Donna W. Johnson, Peter Keys, Peggy A. Massey, Bettie G. Nelson, Jennifer Nichols, Betty Jean Oates, Lelane Peters, Ruth K. Phillips, Deborah C. Pittman, Vanessa Steigerwalt, Elizabeth J. Tallent, Barbara Jolene Weaver, Nannette M. Willis, Carmen Wood, Sandra \nTotals per Report \n \nTITLE CATEGORY \nLibrary Assistant Accounting Assistant Library Assistant Librarian Library Assistant Library Assistant Technical Processing Coordinator Regional Reference Assistant Library Assistant Children's Service Coordinator Librarian Director Technology Librarian Bookmobile Coordinator Library Assistant Library Assistant Bookmobile Assistant Library Assistant Library Assistant Branch Manager/Bookkeeper Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant \n \nSALARIES \n \nTRAVEL \n \n$ \n \n9,121 $ \n \n687 \n \n12,345 \n \n45,836 \n \n14,235 \n \n12,206 \n \n20,880 \n \n20,567 \n \n910 \n \n15,919 \n \n62,878 \n \n72,225 \n \n28,269 \n \n18,374 \n \n7,410 \n \n747 \n \n9,174 \n \n5,380 \n \n5,319 \n \n26,100 \n \n13,908 \n \n3,041 \n \n4,220 \n \n7,229 \n \n14,505 \n \n8 030 \n \n8 193 \n38 8 9 \n110 22 \n2,321 314 \n2,821 311 45 8 \n32 44 \n8 297 \n9 \n8 45 24 \n \n$ \n \n439,515 $======6=6=7=5 \n \nSee notes to the basic financial statements. \n \n- 21 - \n \n SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n MOUNTAIN REGIONAL LIBRARY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7392-04-01 FS-7392-05-01 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/DISBURSEMENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Separation of Duties Finding Control Number: FS-7392-05-01 \n \nWe concur with this finding. In an effort to provide the necessary separation ofduties for these accounting functions, the Mountain Regional Library System Board ofTrustees has approved the new position of accounting assistant. The duties of this position were assumed as of July 1, 2006. The accounting assistant will perform manual check reconciliation with bank statements, review deposit items and deposit slips prior to deposits being made, and review new-hire documentation and assign new employee numbers prior to these items being entered into the accounting program. The accounting assistant will also review prepared vendor and payroll checks with appropriate invoices and/or timesheets and accounting program reports prior to checks being signed. The accounting assistant has no signature authority for library accounts, has no access to the CompuTrain Library Accounting Program, and does not write checks or receive cash. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n SECTION III FINDINGS AND QUESTIONED COSTS \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-7392-06-01 \n \nCondition: \n \nThis is a repeat finding (FS-7392-05-01) from the year ended June 30, 2005. The accounting procedures of the Library were insufficient to provide for adequate separation of duties over the Library accounts. \n \nCriteria: \n \nThe Library's management is responsible for designing and maintaining internal controls that provide proper separation of duties. Such internal controls would limit any one individual's access to both physical assets and the related accounting records. \n \nQuestioned Cost: NIA \n \nInformation: \n \nOur examination of the accounting records revealed the following deficiencies: \n \nCash and Cash Equivalents  The reconciliations of the bank accounts were not performed by someone independent of the general ledger function. \n \nRevenues/Receivables/Receipts  The deposit preparation function was not separated from the cash receipting and record keeping function. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from record keeping or processing of signed checks. \n \nEmployee Compensation  The personnel function of setting up new employees in the accounting system was not separated from the payroll processing and check writing functions. \n \n- 1- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Separation ofDuties Reportable Condition Finding Control Number: FS-7392-06-01 \n \nCause: \n \nThese deficiencies were a result of Library management's failure to assign responsibilities to achieve appropriate separation of duties and to utilize management oversight of the incompatible activities to properly safeguard assets. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nManagement should implement procedures to ensure that the key accounting functions ofcustody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. \n \nCASH AND CASH EQUIVALENTS INVESTMENTS GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition Finding Control Number: FS-7392-06-02 \n \nCondition: \n \nThe accounting procedures of the Library were insufficient to provide for adequate internal controls over cash and investment accounts. \n \nCriteria: \n \nThe Library's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  Four branch checking accounts totaling $35,293 were found that were not recorded on the Library's General Ledger. \n \nInvestments  Five branch certificates of deposit totaling $45,287 were found that were not recorded on the Library's General Ledger. \n \n-2- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS INVESTMENTS GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition Finding Control Number: FS-7392-06-02 \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the branch level. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nManagement should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \n-3- \n \n SECTION IV MANAGEMENT'S RESPONSES \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2006 \nFinding Control Number: FS-7392-06-01 \nWe concur with this finding. In an effort to provide the necessary separation of duties for these accounting functions, the Mountain Regional Library System Board of Trustees approved the new position of accounting assistant. The accounting assistant will perform manual check reconciliation with bank statements, review deposit items and deposit slips prior to deposits being made, and review new-hire documentation and assign new employee numbers prior to these items being entered into the accounting program. The accounting assistant will also review prepared vendor and payroll checks with appropriate invoices and/or timesheets and accounting program reports prior to checks being signed. The accounting assistant has no signature authority for Library accounts, has no access to the CompuTrain Library Accounting Program or Blackbaud Accounting Program, and does not write checks or receive cash. The duties of this position were assumed as of July 1, 2006. \nFinding Control Number: FS-7392-06-02 \nWe concur with this finding. All branch bank accounts and certificates of deposits or other investments will be added to the Library system's accounting program and be subject to the same oversight and reporting as the regional library accounts. All documentation will be maintained in the branch libraries and will be auditable. Accounts will be added to the accounting program for fiscal year 2007. \nContact Person: Donna W. Howell, Director, Mountain Regional Library System Phone: (706) 379-3732 Fax Number: (706) 379-2047 E-mail Address: howelld@mountainregionallibrary.org \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2004-h2005","title":"Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Mountain Regional Library (Young Harris, Ga.)","Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Fannin County, 34.86411, -84.31985","United States, Georgia, Towns County, 34.91665, -83.73728","United States, Georgia, Union County, 34.83401, -83.99076"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":" MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n5 \n \nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n6 \n \nADDITIONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \nSCHEDULE OF REVENUE \n \nI \n \nSTATE \n \n14 \n \n2 \n \nFEDERAL \n \n15 \n \n3 \n \nLOCAL \n \n16 \n \n4 SCHEDULE OF SALARIES AND TRAVEL \n \n17 \n \nSECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n 1USSELL W. HINTON \nSTATE AUDITOR (404) 6562174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nAugust 1, 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members ofthe Board of Regents of the University System of Georgia \nand Director and Members of the Mountain Regional Library Board \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON \n \nLadies and Gentlemen: \n \nWe have audited the accompanying general-purpose financial statements ofthe Mountain Regional Library, as of and for the year ended June 30, 2002, as listed in the table ofcontents. These generalpurpose financial statements are the responsibility ofthe Mountain Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \n \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the general-purpose financial statements are free ofmaterial 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. \n \nAs 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: \n \n* The general-purpose financial statements ofthe Library did not contain a General Fixed \n \nAssets Account Group to account for property, equipment and inexhaustible collections \n \nand books owned by the Library which should be includ.ed to confonn to generally \n \naccepted accounting principles. \n \n' \n \n2002ARL-42 \n \n The aggregate effect on the general-purpose financial statements ofthis variance or omission has not been determined, but is believed to be material. \nIn our opinion,except for the effects on the general-plllpose financial statements of the matter referred to in the third paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Mountain Regional Library as of June 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Mountain Regional Library taken as a whole. The accompanying financial schedules (Schedules I through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Mountain 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 effect of the matter discussed in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated 'Section 506-24. \n---..Respectfully submitted, \n \nRWH:gp 2002ARL-42 \n \nRus ell W. Hinton Sta e Auditor \n \n MOUNTAIN REGIONAL LIBRARY \n \n MOUNTAIN REGIONAL LIBRARY COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 3D, 2002 \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable Amount to be Provided in Future Years for \nCompensated Absences \nTotal Assets \nLIABILITIES AND FUND EQUITY LIABILITIES \nDeferred Revenue Compensated Absences \nTotal Liabilities FUND EQUITY \nFund Balances Unreserved Undesignated \nTotal Liabilities and Fund Equity \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \n$ \n \n121,139.75 $ \n \n648.60 \n \n30,000.00 \n \n$ \n \n151,139.75 $ ====64====8=.6=0 \n \n$ \n \n648.60 \n \n$ \n \n648.60 \n \n$ _ _...:.;15::...;1:..!...1:...=3~9.:..:..75=- \n \n0.00 \n \n$ \n \n151,139.75 $====64===:8=.6=.0 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. \n-2- \n \n EXHIBIT \"A\" \n \nACCOUNT GROUP \nGENERAL LONG-TERM \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 3D, 2002 \n \nJUNE 3D, 2001 \n \n$ \n \n121,788.35 $ \n \n101,701.21 \n \n30,000.00 \n \n30,000.00 \n \n250.00 \n \n$ \n \n14,551.39 \n \n14,551.39 \n \n11,856.25 \n \n$ \n \n14,551.39 $ \n \n166,339.74 $===1=4=3!:i,8=07=.,.;,46;;, \n \n$ \n \n$ \n \n1..:...4:..:.:,5:.:5~1.:.:::.3~9 \n \n$ \n \n14,551.39 $ \n \n648.60 $ 14,551.39 \n15,199.99 $ \n \n13,038.65 11,856.25 \n24,894.90 \n \n0.00 \n \n151,139.75 \n \n118,912.56 \n \n$ \n \n14,551.39 $ \n \n166,339.74 $==~1,.;,43;:;,,8;;;0;,;,7=.4==6 \n \n-3- \n \n MOUNTAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002 \n \nEXHIBIT \"B\" \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \n \n$ 319,660.50 \n \n$ \n \n$ 38,840.05 \n \n314,970.56 \n \n17,199.65 \n \n$ 651,830.71 $ 38,840.05 $ \n \n319,660,50 $ 38,840,05 \n314,970,56 17,199.65 \n690,670.76 $ \n \n302,476.55 69,226.64 270,945.17 17,971.68 \n660,620.04 \n \nCurrent Public Services Technical Services Support Services Maintenance and Operation Information Technology \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \n \n$ 235,711.72 $ 13,416.31 $ \n \n24,984.25 \n \n324,968.23 \n \n1,301.40 \n \n32,576.21 \n \n25,485.45 \n \n$ 618,240.41 $ 40,203.16 $ \n \n$ 33,590.30 $ -1,363.11 $ \n \n249,128.03 $ 24,984.25 \n326,269.63 32,576,21 25,485.45 \n658,443.57 $ \n32,227.19 $ \n \n300,158.10 84,318.83 \n300,945.52 26,291,92 574.97 \n712,289.34 \n-51,669.30 \n \nOTHER FINANCING SOURCES (USES) \n \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \n \n$ 1,363.11 $ $ -1,363.11 \n$ -1,363.11 $ 1,363.11 $ \n \n1,363.11 -1,363.11 \n0.00 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ \n \n32,227.19 $ \n \n0.00 $ \n \n32,227.19 $ \n \n-51,669.30 \n \nFUND BALANCE JULY 1 \n \n118,912.56 \n \n0.00 \n \n118,912.56 \n \n170,581.86 \n \nFUND BALANCE JUNE 30 \n \n$ 151,139.75 $ \n \n0.00 $ \n \n151 ,139.75 $ ===1;,;1;,;8;;,;;,9:=1=2.=56= \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -4- \n \n MOUNTAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30, 2002 \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \nBUDGET \n \nACTUAL \n \nREVENUES \n \nState Funds Federal Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \n \n$ 319,791.10 $ 319,660.50 \n \n314,870,56 4,716.56 \n \n314,970,56 17,199.65 \n \n$ 639,378.22 $ 651,830.71 \n \nCurrent Public Services Technical Services Support Services Maintenance and Operation Information Technology \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \n \n$ 220,965.28 $ 235,711.72 \n \n25,804.97 \n \n24,984.25 \n \n357,167.97 \n \n324,968.23 \n \n35,440.00 \n \n32,576.21 \n \n$ 639,378.22 $ 618,240.41 \n \n$ \n \n0.00 $ 33,590.30 \n \nOTHER FINANCING SOURCES (USES) \n \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \n \n$ -1,363.11 $ -1,363.11 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ \nFUND BALANCE JULY 1, 2001 \n \n0.00 $ 32,227.19 \n \n0.00 \n \n118,912,56 \n \nSPECIAL REVENUE FUND \n \nBUDGET \n \nACTUAL \n \n$ 25,600.00 $ 38,840.05 $ 25,600.00 $ 38,840.05 \n \n$ 25,600.00 $ 13,416.31 \n \n1,301.40 \n \n25,485.45 \n \n$ 25,600.00 $ 40,203.16 \n \n$ \n \n0.00 $ -1,363.11 \n \n$ \n \n1,363.11 \n \n$ \n \n1,363.11 \n \n$ \n \n0.00 $ \n \n0.00 \n \n0.00 \n \n0.00 \n \nFUND BALANCE JUNE 30, 2002 \n \n$==~O=.O;,;;\"O $ 151,139.75 \n \n$ \n \n0.00 $==~O~.O~O \n \nThe notes to the general-purpose financial statements are an integral part of this statement. - 5- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Mountain Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception ofthe 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.. \nThe Library Board consists of 14 members; 6 members appointed by Fannin County Library Board, 4 members appointed by Towns County Library Board and 4 members appointed by Union County Library Board. The Library Board is without authority to determine the amount of its 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 of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Mountain Regional Library is therefore determined to be a joint venture. \nFUND ACCOUNTING \nThe Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. \nA fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \nGeneral Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time ofpurchase. 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 ofassets acquired by governmental fund types. \nThe general-purpose financial statements account for all State, Federal, Local and Other funds under control of the Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \n- 6- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT\"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general \n \nactivities. Governmental Fund Types include: \n \n-- \n \nGENERAL 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. \n \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists ofproceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately. \n \nACCOUNT GROUP \n \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for compensated absences. \n \nBASIS OF ACCOUNTING \n \nThe 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 ofthese 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. \n \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \n \nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \n \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \n \nExpenditures are generally recognized when the related fund liability is incurred. \n \n-7- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBUDGET \nThe Mountain 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. \nThe budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(I) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n-8- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSEFINANCIAL STATEMENTS \n \nJUNE 30, 2002 ' \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(3) Obligations fully insured or guaranteed by the United States government or a United \n \nStates government agency, \n \n. \n \n(4) Obligations of any corporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurch~se agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nCOMPENSATED ABSENCES \n \nCompensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. \n \nINTERFUND TRANSACTIONS \n \nThe Library has the following types of interfund transactions: \n \nReimbursements 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. \n \nOperating transfers are recorded for all interfund transactions and reimbursements. \n \nMEMORANDUM ONLY - TOTAL COLUMNS \n \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. \n \n-9- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2: DEPOSITS \n \nCOLLATERALIZAnON 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 ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \n \nAcceptable security for deposits consists of anyone of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \n \n(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 or 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. \n \nCATEGORIZAnON OF DEPOSITS \n \nAt June 30, 2002, the bank balances were $174,508.07. The amounts of the total bank balances are \n \nclassified-into three categories of credit risk: \n \n. \n \n- 10- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2: DEPOSITS \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.) \n \nThe Library's deposits are classified by risk category at June 30, 2002, as follows: \n \nRisk Category \n \nBank Balance \n \nI \n \n$ 122,876.82 \n \n2 \n \n51,631.25 \n \n3 \n \n0.00 \n \nTotal \n \n$ 174,508.07 \n \nNote 3: RISK MANAGEMENT \n \nThe Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God; and unemployment compensation. \n \nThe Library has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. \n \nThe Library has elected to self-insure for all losses related to acts of God. The Library has not experienced any losses related to this risk in the past three years. \n \nThe 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. \n \nThe Library has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees \n \n$ 10,000.00 \n \n- 11 - \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 4: GENERAL LONG-TERM DEBT \n \nThe changes in General Long-Tenn Debt during the fiscal year ended June 30, 2002, were as follows: \n \nCompensated Absences \n \nBalance July 1,2001 \n \n$ \n \n0.00 \n \nRetroactive Restatement of Prior Year Balances \n \n11,856.25 \n \nBalance July 1,2001 - Restated \n \n$ 11,856.25 \n \nAdditions Annual Leave Earned and Utilized (Net) \n \n2,695.14 \n \nBalance June 30, 2002 \n \n$ 14,551.39 \n \nNote 5: ACCUMULATED EMPLOYEES' LEAVE \n \nThe Library's full-time employees earn annual leave according to their length ofservice ranging from 10 to 20 days per year with a maximum accumulation of30 days. ,Part-time regular employees earn annual leave on a pro-rata basis. All unused leave is paid to employees, at their current rate of pay, upon retirement or tennination of employment. See Note 1 - Compensated Absences \n \nNote 6: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to contribute 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. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \n- 12 - \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 6: RETIREMENT PLANS \nFiscal Year 2002 2001 2000 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 35,111.19 $ 39,947.68 $ 37,856.61 \n \n- 13 - \n \n --_._-._--~--------===----- \n \nMOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"1\" \n \nAGENCY/FUNDING \nGRANTS Board of Regents of the University System of Georgia Office of Public Library Services Salaries Travel Library Materials Maintenance and Operation \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n257,385.51 \n \n5,800.00 \n \n30,766.99 \n \n25,708.00 \n \n$ \n \n319,660.50 \n \nSee notes to the general-purpose financial statements. - 14- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE \nYEAR ENDED JUNE 30, 2002 \nAGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System of Georgia Library Services and Technology Act State Library Program \n \nSCHEDULE \"2\" \nGOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND \n$===~38~,8;:;,;4,;,;;;0;;,;;.0~5 \n \nSee notes to the general-purpose financial statements. - 15- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE \nYEAR ENDED JUNE 30, 2002 \nLOCAL SOURCES Boards of Education Fannin County Towns County Union County City Governments Blue Ridge Hiawassee McCaysville Morganton Young Harris County Governments Boards of Commissioners Fannin Towns Union \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n56,007.45 \n \n46,116.61 \n \n38,121.87 \n \n1,000.00 500.00 500.00 200.00 \n2,000.00 \n \n56,007.45 50,998.72 63,518.46 \n \n$ \n \n314,970.56 \n \nSee notes to the general-purpose financial statements. - 16- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"4\" \n \nNAME \nAdams, Ash, Berdux, Brendle, Burchardt, Carney, Clark, Fatora, Foster, Haymore, Howell, Keys, Keys, Lynch, Nichols, Phillips, Pittman, Seabolt, Steigerwalt, Sutphin, Tallent, Vermilyea Watkins, Weaver, Willis, Wood, \n \nJenny WilmaB. Janice Mary Sue \nSandra L. Michele L. \nTeddy P. Elaine K. Linda M. Teresa P. Donna W. Brittany Peggy A. Joann C. Betty Jean Deborah C. Vanessa Cynthia M. Elizabeth Dorothea J. Barbara Joyce June Nannette M. Carmen Sandra D. \n \nTITLE CATEGORY \nLibrary Assistant Librarian Library Assistant Library Assistant Library Assistant Library Assistant Processing Clark Circulation Clerk Children's Service Coordinator Director Assistant Director Library Assistant Bookmobile Driver Library Assistant Bookmobile Assistant Branch Manager Library Assistant Library Assistant Library Assistant Librarian Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant \n \nTotals per Report \n \nSALARIES \n \n$ \n \n595.20 \n \n49,311.50 $ \n \n4,044.80 \n \n12,798.02 \n \n150.68 \n \n11,122.87 \n \n16,364.00 \n \n17,670.63 \n \n13,324.81 \n \n61,465.80 \n \n55,234.24 \n \n328,13 \n \n15,624.00 \n \n8,819.63 \n \n7,745.50 \n \n16,160.00 \n \n6,636.80 \n \n676.50 \n \n4,404.38 \n \n48,917.36 \n \n14,674.00 \n \n9,139.20 \n \n465.50 \n \n14,616.00 \n \n6,688.00 \n \n316.05 \n \nTRAVEL \n463.60 \n30.00 \n10.00 51.27 30.00 1,762.77 3,723.27 1,810.43 \n10.00 10.00 \n199.00 \n124.76 \n90.00 \n10.00 10.00 10.00 \n \n$ 397,293.60 $ \n \n8,345.10 \n \nSee notes to the general-purpose financial statements. - 17 - \n \n ----- \nSECTION II FINDINGS AND QUESTIONED COSTS \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nPRIOR YEAR/CURRENT YEAR \nCASH AND CASH EQUIVALENTS Inadequate Separation of Duties Finding Control Number: 7392-93-01 \nThe audit report for the year ended June 30, 200 I, 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 noted no improvement for separation of duties in the performance of the following accounting functions and related procedures: \n(l) The check signing function was not separated from the cash disbursement function. In addition, prepared checks were not reviewed by someone other than the preparer before the signature was affixed. \n(2) The deposit preparation function was not separated from the cash receipting function. No one independent of the cash and financial records prepares a listing of checks to be compared to the deposit ticket or cash journal. \n(3) Reconciliation of the bank account is not performed by someone independent of the general ledger function. \nThese conditions were a result of management's decision to limit the number ofadministrative staff made responsible for accounting functions. The Library should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the above control functions and implement those procedures to strengthen the internal control over the accounting functions. \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7392-93-02 \nThe audit report for the year ended June 30, 2001, noted that the management of the Mountain 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 ofthe Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2000-h2001","title":"Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Mountain Regional Library (Young Harris, Ga.)","Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Fannin County, 34.86411, -84.31985","United States, Georgia, Towns County, 34.91665, -83.73728","United States, Georgia, Union County, 34.83401, -83.99076"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2001-06-30"],"dcterms_description":["June 30, 2000-","Title from cover.","Report year covers fiscal year.","June 30, 2004."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Regional libraries--Georgia--Auditing","Regional libraries--Financial statements--Georgia","Mountain Regional Library"],"dcterms_title":["Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b2000-h2001"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \nGA \nAeco \n. Rl 1\u003cL\\to \nMt; ~ bbD ., c:200 l \nM' OUNTAIN REGIONAL LIBRARY \nYOUNG HARRIS, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 \nRussell W. Hinton State Auditor \n \n MOUNTAIN REGIONAL LIBRARY  -TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \n \nEXHIBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS-OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n3 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n4 \n \nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \n5 \n \nADDITIONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \nSCHEDULE OF REVENUE \n \n1 \n \nSTATE \n \n12 \n \n2 \n \nFEDERAL \n \n13 \n \n3 \n \nLOCAL \n \n14 \n \n4 SCHEDULE OF SALARIES AND TRAVEL \n \n15 \n \nSECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RussELL \\\\'. H1:s.ToN \nSTATE AUDITOR 1404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, SW., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 14, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia \nand Director and Members of the Mountain Regional Library Board \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \nLadies and Gentlemen: \nWe have audited the accompanying general-purpose financial statements ofthe Mountain Regional Library, as of and for the year ended June 30, 2001, as listed in the table ofcontents. These generalpurpose financial statements are the responsibility ofthe Mountain Regional Library's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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. 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. \nAs 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: \n* The general-purpose financial statements ofthe Library did not contain a General Fixed \nAssets 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. \n2001ARL-42 \n \n The aggregate effect on the general-purpose financial statements ofthis variance or omission has not been determined, but is believed to be material. \nIn our opinion, except for the effects on the general-purpose financial statements of the matter referred to in the third paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Mountain Regional Library as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Mountain Regional Library taken as a whole. The accompanying financial schedules (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Mountain 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 of the matter discussed in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \nRespectfully submitted, \n \nRWH:gp 2001ARL-42 \n \nState Auditor \n \n MOUNTAIN REGIONAL LIBRARY \n \n MOUNTAIN REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2001 \n \nEXHIBIT \"A\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nTOTALS \n \n(Memorandum Onl:t) \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n88,912.56 $ \n \n12,788.65 $ \n \n101,701.21 $ \n \n139,334.15 \n \n30,000.00 \n \n30,000.00 \n \n31,280.00 \n \n250.00 \n \n250.00 \n \nTotal Assets \n \n$ \n \n118,912.56 $ \n \n13,038.65 $ \n \n131,951.21 $===17=0~,6=1=4~.1=5 \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nAccounts Payable Deferred Revenue \n \nTotal Liabilities \n \nFUND EQUITY \n \nFund Balances \n \nReserved \n \nFor Purchase of Library Books and \n \nMaterials \n \nUnreserved \n \nUndesignated \n \n$ \n \nTotal Fund Equity \n \n$ \n \n$ $ \n118,912.56 $ 118,912.56 $ \n \n$ 13,038.65 $ _ ____:,;13::.,.,0::.:3:.::8.:.::.6c::,_5 \n \n32.29 \n \n13,038.65 $ \n \n13,038.65 $ _ _ __,::3:.::.2:.:.2.:::...9 \n \n$ \n \n48,896.93 \n \n0.00 $ _ _..;.1.:.;18:.,.,9:.;1:.:.2.:.:.5.::..6 \n \n121,684.93 \n \n0.00 $ \n \n118,912.56 $ _ _..,;.1.;..;70:.!.,5::..:8:...:.1.:.::.8.::..6 \n \nTotal Liabilities and Fund Equity $ \n \n118,912.56 $ \n \n13,038.65 $ \n \n131,951.21 $===1=70~,6=1=4;,,;.1=5 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -2 - \n \n MOUNTAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2001 \n \nEXHIBIT \"B\" \n \nREVENUES \nState Funds Federal Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Support Services Maintenance and Operation Information Technology \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFUND BALANCE JULY 1 \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \nTOTALS \n \n(Memorandum Onl:t) \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ 302,476.55 \n \n$ \n \n$ 69,226.64 \n \n270,945.17 \n \n17,971.68 \n \n$ 591,393.40 $ 69,226.64 $ \n \n302,476.55 $ 69,226.64 \n270,945.17 17,971.68 \n660,620.04 $ \n \n283,926.39 9,920.00 \n241,440.28 103,678.08 \n638,964.75 \n \n$ 290,696.75 $ 9,461.35 $ \n \n24,553.54 \n \n59,765.29 \n \n300,945.52 \n \n26,291.92 \n \n574.97 \n \n$ 643,062.70 $ 69,226.64 $ \n \n$ -51,669.30 $ \n \n0.00 $ \n \n170,581.86 \n \n0.00 \n \n300,158.10 $ 84,318.83 \n300,945.52 26,291.92 574.97 \n712,289.34 $ \n-51,669.30 $ \n170 581.86 \n \n335,477.04 21,959.96 \n275,578.65 28,835.44 15 348.79 \n677,199.88 \n-38,235.13 \n208,816.99 \n \nFUND BALANCE JUNE 30 \n \n$ 118,912.56 $ \n \n0.00 $ \n \n118 912.56 $ ==~17;.,;0;.,;,5~8:a:,,1;,;;8~6 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -3- \n \n MOUNTAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30, 2001 \n \nEXHIBIT \"C\" \n \nREVENUES \nState Funds Federal Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Support Services Maintenance and Operation Information Technology \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFUND BALANCE JULY 1, 2000 \n \nGENERAL FUND \n \nBUDGET \n \nACTUAL \n \n$ 302,476.58 $ 302,476.55 \n \n271,045.17 11,411.65 \n \n270,945.17 17,971.68 \n \n$ 584,933.40 $ 591,393.40 \n \n$ 227,882.29 $ 290,696.75 \n \n22,111.63 \n \n24,553.54 \n \n297,600.48 \n \n300,945.52 \n \n34,339.00 \n \n26,291.92 \n \n3,000.00 \n \n574.97 \n \n$ 584,933.40 $ 643,062.70 \n \n$ \n \n0.00 $ -51,669.30 \n \n0.00 \n \n170,581.86 \n \nSPECIAL REVENUE FUND \n \nBUDGET \n \nACTUAL \n \n$ 22,500.00 $ 69,226.64 $ 22,500.00 $ 69,226.64 \n \n$ 22,500.00 $ \n \n9,461.35 \n \n59,765.29 \n \n$ 22,500.00 $ 69,226.64 \n \n$ \n \n0.00 $ \n \n0.00 \n \n0.00 \n \n0.00 \n \nFUND BALANCE JUNE 30, 2001 \n \n$=====o=.o=o= $ 118.912.56 \n \n$ \n \no.oo $ ======o=.o=o \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -4- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Mountain Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception ofthe 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. \nThe Library Board consists of 14 members; 6 members appointed by Fannin County Library Board, 4 members appointed by Towns County Library Board and 4 members appointed by Union County Library Board. The Library Board is without authority to determine the amount of its 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 of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Mountain Regional Library is therefore determined to be a joint venture. \nFUND ACCOUNTING \nThe 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. \nA fund is a separate accounting entity with a self-balancing set of accounts. \nGeneral Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time ofpurchase. 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 ofassets acquired by governmental fund types. \nThe general-purpose financial statements account for all State, Federal, Local 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: \nGOVERNMENTAL FUND TYPES - used to account for all of the Library's general activities. Governmental Fund Types include: \n-5- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL 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. \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists ofproceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately. \nBASIS OF ACCOUNTING \nThe 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 ofthese funds present increases (i.e., revenues and other financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). 11Measurable\" means the amount of the transaction can be determined and \"available11 means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include intergovernmental grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nExpenditures are generally recognized when the related fund liability is incurred. \nBUDGET \nThe Mountain 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 ofbudget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles. \n-6- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe 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 Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n-7- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivab1es. \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. \nAdditionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. \nINTERFUND TRANSACTIONS \nThe Library has the following type of interfund transactions: \nReimbursements 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. \nMEMORANDUM ONLY -TOTAL COLUMNS \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \n \n-8- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 2: DEPOSITS \nCOLLATERALIZATION 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 ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \n(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 or 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. \nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $169,156.23. The amounts ofthe total bank balances are classified into three categories of credit risk: \n-9- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.) \n \nThe Library's deposits are classified by risk category at June 30, 2001, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 128,017.92 \n \n2 \n \n41,138.31 \n \n3 \n \n0.00 \n \nTotal \n \n$ 169,156.23 \n \nNote 3: RISK MANAGEMENT \n \nThe Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation. \n \nThe Library has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. \n \nThe Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to this risk in the past three years. \n \nThe 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. \n \nThe Library has purchased a surety bond to provide additional insurance coverage as follows: \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 3: RISK MANAGEMENT \n \nPosition Covered \n \nAmount \n \nAll Employees \n \n$ 10,000.00 \n \nNote 4: ACCUMULATED EMPLOYEES' LEAVE \n \nThe Library's full-time employees earn annual leave according to their length ofservice ranging from 10 to 20 days per year with a maximum accumulation of30 days. Part-time regular employees earn annual leave on a pro-rata basis. All unused leave is paid to employees, at their current rate ofpay, upon retirement or termination of employment. See Note 1 - Compensated Absences \n \nNote 5: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to contribute 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. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2001 2000 1999 \n \n100% 100% 100% \n \n$ 39,947.68 $ 37,856.61 $ 37,244.60 \n \n- 11 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30, 2001 \nAGENCY/FUNDING \nGRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Maintenance and Operation \n \nSCHEDULE \"1\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n245,786.55 \n \n3,000.00 \n \n29,991.40 \n \n23,698.60 \n \n$ ====3=02;;..4.;.;7;,.;;6;,;,;;.5~5 \n \nSee notes to the general-purpose financial statements. - 12 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE \nYEAR ENDED JUNE 30, 2001 \nAGENCY/FUNDING GRANT Museum and Library Services, Institute of Through Board of Regents of the University System Library Services and Technology Act State Library Program \n \nSCHEDULE \"2\" \nGOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND \n$ =====6,;;;,i9,~22;;;,;;6;,;,,;.6;,,;,,4 \n \nSee notes to the general-purpose financial statements. - 13 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE \nYEAR ENDED JUNE 30, 2001 \nLOCAL SOURCES \nBoards of Commissioners Fannin County Towns County Union County \nBoards of Education Fannin County Towns County Union County \nCity Governments Blue Ridge Hiawassee McCaysville Young Harris \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n50,307.90 \n \n41,234.49 \n \n45,738.52 \n \n50,307.90 41,234.49 38,121.87 \n \n1,000.00 500.00 500.00 \n2,000.00 \n \n$ ===2=7=0,;,;;,9=4=5.=1=7 \n \nSee notes to the general-purpose financial statements. - 14 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30 2001 1 \n \nSCHEDULE \"4\" \n \nNAME \nAdams, Ash, Berdux, Brendle, Burchard!, Carney, Clark, Collis, Fatora, Foster, Haymore, Howell, Keys, Keys, Lynch, Nelson, Nichols, Phillips, Pittman, Steigerwalt, Sutphin, Tallent, Vermilyea, Watkins, Weaver, Willis, Wood, \n \nJenny WilmaB. Janice Mary Sue Sandra L. Michele L. Teddy P. SueC. Elaine K. Linda M. Teresa P. Donna W. Brittany Peggy A. Joann C. Edna Earl Betty Jean Deborah C. Vanessa Elizabeth Dorothea J. Barbara Joyce June Nannette M. Carmen Sandra D. \n \nTotals per Report \n \nTITLE CATEGORY \nLibrary Assistant Librarian Library Assistant Library Assistant Library Assistant Library Assistant Processing Clerk Library Assistant Circulation Clerk Children's Service Coordinator Director Assistant Director Library Assistant Bookmobile Driver Library Assistant Library Assistant Bookmobile Assistant Branch Manager Library Assistant Library Assistant Librarian Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant Library Assistant \n \nSALARIES \n \nTRAVEL \n \n$ \n \n76.70 \n \n47,298.34 $ \n \n2,081.23 \n \n8,096.90 \n \n110.70 \n \n10,856.64 \n \n16,039.14 \n \n6,014.00 \n \n17,032.47 \n \n11,555.25 \n \n52,170.86 \n \n48,927.36 \n \n203.44 \n \n15,163.39 \n \n8,532.00 \n \n7,020.00 \n \n7,784.38 \n \n13,720.63 \n \n3,817.30 \n \n3,576.57 \n \n46,920.14 \n \n13,461.50 \n \n6,661.10 \n \n13,716.00 1,085.60 4,704.90 \n \n264.18 11.18 30.00 \n212.35 15.00 \n1,763.55 3,351.67 1,454.97 \n51.00 \n15.00 314.71 \n15.00 \n15.00 15.00 15.00 \n \n$ 366,626.54 $===7=,5=4=3=.6=1 \n \nSee notes to the general-purpose financial statements. -15 - \n \n SECTION II FINDINGS A.1\\ID QUESTIONED COSTS \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nPRIORYEAR/CURRENTYEAR \nCASH AND CASH EQUNALENTS Inadequate Separation of Duties Finding Control Number: 7392-93-01 \nThe audit report for the year ended June 30, 2000, 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 noted no improvement for separation of duties in the performance of the following accounting functions and related procedures: \n(1) The check signing function was not separated from the cash disbursement function. In addition, prepared checks were not reviewed by someone other than the preparer before the signature was affixed. \n(2) The deposit preparation function was not separated from the cash receipting function. No one independent of the cash and financial records prepares a listing of checks to be compared to the deposit ticket or cash journal. \n(3) Reconciliation of the bank account is not performed by someone independent of the general ledger function. \nThese conditions were a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. The Library should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the above control functions and implement those procedures to strengthen the internal control over the accounting functions. \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7392-93-02 \nThe audit report for the year ended June 30, 2000, noted that the management of the Mountain 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 ofthe 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. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1999-h2000","title":"Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Mountain Regional Library (Young Harris, Ga.)","Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Fannin County, 34.86411, -84.31985","United States, Georgia, Towns County, 34.91665, -83.73728","United States, Georgia, Union County, 34.83401, -83.99076"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2000-06-30"],"dcterms_description":["June 30, 2000-","Title from cover.","Report year covers fiscal year.","June 30, 2004."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Regional libraries--Georgia--Auditing","Regional libraries--Financial statements--Georgia","Mountain Regional Library"],"dcterms_title":["Mountain Regional Library, Young Harris, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n \nG,/1 \n \n \n \nA800 \n \n RI \n \nR4~ \n \nMs \n \n1999-1000 \n \n000000000 \n1776 \n \nI \nMOUNTAIN REGIONAL LIBRARY \n \n \n \nYOUNG HARRIS, GEORGIA \n \n \n \nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2000 \n \n \nRussell W. Hinton state Auditor \n \n MOUNTAIN REGIONAL LffiRARY - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPBLEMENTARY INFORMATION \n \nEXHffiITS \n \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \n \nADDmONAL FINANCIAL INFORMATION \n \n \nSCHEDULES \n \n- \n \nSCHEDULE OF REVENUE \n \n1 \n \nSTATE . \n \n2 \n \nFEDERAL \n \n3 \n \n. LOCAL \n \n4 SCHEDULE OF SALARIES AND TRAVEL \n \nSECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n \nPage \n2 \n3 4 5 \n12 13 14 15 \n \n  \n \n \n \n \nSECTION I FINANCIAL \n \n \n- \n \n \n \n \n \n  \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 6562174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \nMay 16, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board of Regents of the University System of Georgia \nand Director and Members ofthe Mountain Regional Library Board \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \nLadies and Gentlemen: \nWe have audited the accompanying general purpose financial statements ofthe Mountain Regional Library, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Mountain Regional Library's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \n \n \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. 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. \nAn 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 \nestimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion: \nAs described in the notes to the general purpose financial statements, the Library's financial  \nstatements 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: \n* The general purpose financial statements ofthe 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. \n2000ARL-42A \n \n The aggregate effects on the general purpose financial statements of this omission has not been determined, but is believed to be material. \n \nIn our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Mountain Regional Library as of June 30, 2000, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \n \nOur audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Mountain Regional Library taken as a whole. The accompanying financial schedules (Schedules 1 through 4), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Mountain Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. \n \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made \n \navailable to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- \n \n6-24. \n \n. \n \nRespectfully submitted, \n \n \n \nRWH:gp 2000ARL-42A \n \nR ssell W. Hinton State Auditor \n, \n \n \n \n  \nMOUNTAIN REGIONAL LIDRARY \n \n \n MOUNTAIN REGIONAL LIBRARY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000 \n \nEXHIBIT \"Aft \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \nTotal Assets \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nTOTALS \n \n_ _----:(Memorandum Only)~_ _ \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 139,334.15 $ \n \n0.00 $ \n \n139,334.15 $ \n \n152,536.99 \n \n31,280.00 \n \n31,280.00 \n \n31,280.00 \n \n25,000.00 \n \n$ 170,614.15 $ \n \n0.00 $ \n \n170,614. 15 $ _ _.:;20~8::=;,8;;,;1,;,:;'6;;:.99;.;. \n \nLIABILITIES AND FUND EqUITY \n \nLIABILITIES Expired Grant Balances Payable \n \n$ _ _----'3::.::2\"-=.2~9 \n \nFUND EQUITY \n \nFund Balances Reserved \nFor Purchase of Library Books and Materials $ \nUnreserved Undesignated \n \nTotal Fund Equity \n \n$ \n \n48,896.93 \n121,684.93 $ 170,581.86 $ \n \nTotal Liabilities and Fund Equity \n \n$ 170,614.15 $ \n \n$ \n \n~3:=2.~29:::. \n \n$ \n~O.~OO~ \n0.00 $ \n \n48.896.93 $ \n \n48,543.25 \n \n121,684.93 \n \n160,273.74 \n \n170,581.86 $ _ _..::2~08::.:,8~1::.6~.99:::.. \n \n0.00 $ \n \n170,614.15 $ \n \n2.,0.8,..8,;,;16;;,.9;0,;9 \n \n \n \nThe notes to the general purpose financial statements are an integral part of this statement. -2- \n \n MOUNTAIN REGIONAL L1BBARY COMBINI;D STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"B\" \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \nTOTALS \n \n(Memorandum Only,-) \n \n_ \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30. 1999 \n \nREVENUES \n \nState Funds Federal Funds Local Funds Other Funds \n \n$ \n \n283.926.39 \n \n$ \n \n241,440.28 \n \n103.678.08 \n \n$ \n9.920.00 \n \n283.926.39 $ 9,920.00 \n241,440.28 103.678.08 \n \n473,845.16 \n232.330.86 22.176.82 \n \nTotal Revenues EXPENDITURES \n \n$ \n \n629,044.75 $ \n \n \n \n9,920.00 $ \n \n638.964.75 $ _ _....:.7.:::.28~.::::.;35:::2::.::.84:...:... \n \nCurrent Public Services Technical Services Support Services Maintenance and Operation Information Technology \nTotal Expenditures \n \n$ \n \n335,477.04 \n \n21,959.96 \n \n275,578.65 \n \n28,835.44 \n \n5,428.79 $ \n \n \n \n$ \n \n667.279.88 $ \n \n$ \n9,920.00 9,920.00 $ \n \n335,477.04 $ 21.959.96 \n275,578.65 28,835.44 15.348.79 \n677,199.88 $ \n \n297,154.45 22,050.82 \n264,973.17 46,097.82 2,419.29 \n632,695.55 \n \nExcess of Revenues over (under) Expenditures $ \n \n-38,235.13 $ \n \n0.00 $ \n \n-38.235.13 $ \n \n95,657.29 \n \nFUND BALANCE JULY 1 \n \n208,816.99 \n \n0.00 \n \n208,816.99 \n \n113.159.70 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n170,581.86 $ \n \n0.00 $ \n \n170,581.86 $===2=08=,8=1=6=.9=9 \n \n,  \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-3- \n \n ..... _ - - \nMOUNTAIN REGIONAL L 1 B R A R Y E X H I B I T \"CO COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30, 2000 \n \nREVENUES \nState Funds Federal Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Support Services Maintenance and Operation Information Technology \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFUND BALANCE JULY 1, 1999 \n \nGENERAL FUND \n \nBUDGET \n \nACTUAL \n \n$ 283,958.58 $ 283,926.39 \n \n240,440.28 9,558.24 \n \n241,440.28 103,678.08 \n \n$ 533,957.10 $ 629,044.75 \n \n$ 197,153.84 $ 335,477.04 \n \n24,099.27 \n \n21,959.96 \n \n275,854.71 \n \n275,578.65 \n \n33,849.28 \n \n28,835.44 \n \n3,000.00 \n \n5,428.79 \n \n$ 533,957.10 $ - - 667,279.88 \n \n$ \n \n0.00 $ -38,235.13 \n \n0.00 \n \n208,816.99 \n \nSPECIAL REVENUE FUND \n \nBUDGET \n \nACTUAL \n \n$ \n \n9,920.00 $ \n \n9,920.00 \n \n$ \n \n9,920.00 $ _--=9\"\",9;.=2.::.;0.c=..00,,- \n \n$ \n \n9,920.00 $ _~9,:,:::92::.:::0.:.0:;:.::.,.0 \n \n$ \n \n9,920.00 $ _--=9\"\",,9:.:2.=.;0.:,::.00,,- \n \n$ \n \n0.00 $ \n \n0.00 \n \n0.00 \n \n0.00 \n \nFUND BALANCE JUNE 30, 2000 \n \n \n$ _=======0.=00.. $ 170,581.86 \n \n$ \n \n0.00 $ = =......0..=.0.0.. \n \n \n \n \nThe notes to the general purpose financial statements are an integral part of this statement. -4- \n \n MOUNTAIN REGIONAL LillRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Mountain Regional Library (Library) operates pursuant to Official Code ofGeorgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State ofGeorgia. With the exception ofthe 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. \nThe Library Board consists of 15 members; 7 members appointed by Fannin County Library Board, 4 members appointed by Towns County Library Board and 4 members appointed by Union County Library Board. The Library Board is without authority to determine the amount of its 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 of each participating governmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances oflocal and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Mountain Regional Library is therefore determined to be a joint venture. \nFUND ACCOUNTING \nThe 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. \nA fund is a separate accounting entity with a self-balancing set of accounts. \nGeneral Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time ofpurchase. 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 ofassets acquired by governmental fund types. \nThe general purpose financial statements account for all State, Federal, Local and Other funds ~der 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: \nGOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include: \n-5- \n \n MOUNTAIN REGIONAL LIDRARY \n \nEXHIDIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n. \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL 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. \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists ofproceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately. \nBASIS OF ACCOUNTING \nThe 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 ofthese 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. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount ofthe transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income. \nExpenditures are generally recognized when the related fund liability is incurred. \nBUDGET \nThe Mountain 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 ofbudget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles. \n \n-6 - \n \n MOUNTAIN REGIONAL LlliRARY \n \nEXHlliIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83A authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n-7- \n \n MOUNTAIN REGIONAL LffiRARY \n \nEXHffiIT liD\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n(8) Obligations of other political subdivisions of the State of Georgia. \nCOMPENSATED ABSENCES \nCompensated absences represent obligations ofthe Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. \nAdditionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. \nMEMORANDUM ONLY - TOTAL COLUMNS \nTotal columns on the general purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. \nNote 2: DEPOSITS \nCOLLATERALIZATION 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 ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe 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 ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of anyone of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State of Georgia, \n- 8- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 2: DEPOSITS \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \n \n(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 or 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. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $251,853.01. The amounts ofthe total bank balances are \nclassified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in th~ Library's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.) \n \nThe Library's deposits are classified by risk category at June 30, 2000, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 168,398.02 \n \n2 \n \n83,454.99 \n \n3 \n \n0.00 \n \nTotal \n \n$ 251,853.01 \n \n- 9- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 3: RISK MANAGEMENT \n \nThe Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation. \n \nThe Library has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. \n \nThe Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to this risk in the past three years. \n \nThe 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. \n \nThe Library has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees \n \n$ 10,000.00 \n \nNote 4: ACCUMULATED EMPLOYEES' LEAVE \n \nThe Library's full-time employees earn annual leave according to their length ofservice ranging from 10 to 20 days per year with a maximum accumulation of30 days. Part-time regular employees earn annual leave on a pro-rata basis. All unused leave is paid to employees, at their current rate ofpay, \nupon retirement or termination of employment. See Note 1 - Compensated Absences \n \nNote 5: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 10- \n \n MOUNTAIN REGIONAL LmRARY \n \nEXHmIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 5: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to contribute 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. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n2000 1999 1998 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 37,856.61 $ 37,244.60 $ 33,909.49 \n \n \n \n  \n \n \n \n \n \n- 11 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30, 2000 \nAGENCY/FUNDING \nGRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Maintenance and Operation \n \nSCHEDULE \"1\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n227,728.39 \n \n4,200.00 \n \n28,299.00 \n \n23,699.00 \n \n$ \n \n283,926.39 \n \n, \n \nSee notes to the general purpose financial statements. \n12 \n \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE \nYEAR ENDED JUNE 30, 2000 \nAGENCY/FUNDING GRANT Education, U. S. Department of Through Georgia Department of Techn,ical and Adult Education Adult Education Library Services and Technology Act LSTA - Technology and Connectivity Grant \n \nSCHEDULE \"2\" \nGOVERNMENTAL FUND TYPE SPECIAL REVENUE FUND \n$ ====9;;;0',;;;,;92=0;,;,;;,0==0 \n \n \n \n- \n \nSee notes to the general purpose financial statements. \n- 13- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE \nYEAR ENDED JUNE 30, 2000 \n \n \nLOCAL SOURCES \n \nBoards of Commissioners \n \nFannin County \n \nTowns County \n \nUnion County \n \n \n \nBoards of Education \n \nFannin County \n \nTowns County \n \nUnion County \n \nCity Governments \n \nBlue Ridge \n \nHiawassee \n \nMcCaysville \n \nMineral Bluff \n \nMorganton \n \nYoung Harris \n \n \n \n- \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n45,095.50 \n \n35,402.77 \n \n38,121.87 \n \n45,095.50 35,402.77 38,121.87 \n \n1,000.00 500.00 500.00 100.00 100.00 \n2,000.00 \n \n$ \n \n241,440.28 \n \n \nSee notes to the general purpose financial statements. - 14- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"4\" \n \nNAME \nAsh, Brendle, Burchardt, Carney, Clark, Collins, Fatora, Foster, Haymore, Howell, Keys, Leverett, Lynch, Nelson, Nichols, Phillips, Steigerwalt, Sutphin, Tallent, Vermilyea, Weaver, Wood, \n \nWilma B. Mary Sue Sandra L. Michele L. Teddy P. SueC. Elaine K. Linda M. Teresa P. Donna W. Peggy A. Joann Joann C. Edna Earl Betty Jean Deborah C. Elizabeth Dorothea J. Barbara Joyce Nannette M. Sandra D. \n \nTotals per Report \n \nTITLE CATEGORY \n \nLibrarian Library Assistant Library Assistant Library Assistant Processing Clerk Library Assistant Circulation Clerk Children's Service Coordinator Director Assistant Director Bookmobile Driver Library Assistant Library Assistant Library Assistant Bookmobile Assistant Branch Manager Library Assistant Librarian Library Assistant \n \nLibrary Assistant Library Assistant Library Assistant \n \nSALARIES \n \nTRAVEL \n \n$ \n \n45,849.20 \n \n9,394.28 \n \n2,303.18 \n \n10,752.75 $ \n \n15,065.29 \n \n15,651.00 \n \n17,192.38 \n \n11,147.09 \n \n50,599.30 \n \n46,082.54 \n \n14,850.53 \n \n1,004.55 \n \n8,777.60 \n \n6,899.20 \n \n7,670.00 \n \n12,440.71 \n \n3,422.00 \n \n44,157.96 \n \n9,944.45 \n \n1,845.38 \n \n10,790.40 \n \n3,055.28 \n \n32.80 65.18 15.50 1,868.42 3,285.55 1,441.91 235.54 \n484.75 472.76 \n \n$ 348,895.07 $ _ _..;,7~9,;;;:;02::;.;..;;.41;.. \n \n \n \n \n \nSee notes to the general purpose financial statements. \n \n-15- \n \n  \nSECTIONll FINDINGS AND QUESTIONED COSTS \n \n \n \n MOUNTAIN REGIONAL LIDRARY \nSCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \nPRIOR YEAR/CURRENT YEAR \nCASH AND CASH EQUNALENTS Inadequate Separation of Duties Finding Control Number: 7392-93-01 \nThe audit report for the year ended June 30, 1999, 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 noted no improvement for separation of duties in the performance of the following accounting functions and related procedures: \n(1) The check signing function was not separated from the cash disbursement function. In addition, prepared checks were not reviewed by someone other than the preparer before the signature was affixed. \n(2) The deposit preparation function was not separated from the cash receipting function. No one independent of the cash and financial records prepares a listing of checks to be compared to the deposit ticket or cash journal. \n(3) Reconciliation of the bank account is not performed by someone independent of the general ledger function. \nThese conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. The Library should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the above control functions and implement those procedures to strengthen the internal control over the accounting functions. \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7392-93-02 \nThe audit report for the year ended June 30, 1999, noted that the management of the Mountain 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 ofthe Library being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1998-h99","title":"Audit report, Mountain Regional Library, Young Harris, Georgia, year ended June 30, 1999","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Mountain Regional Library (Young Harris, Ga.)","Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Fannin County, 34.86411, -84.31985","United States, Georgia, Towns County, 34.91665, -83.73728","United States, Georgia, Union County, 34.83401, -83.99076"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["1999-06-30"],"dcterms_description":["June 30, 2000-","Title from cover.","Report year covers fiscal year.","June 30, 2004."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Regional libraries--Georgia--Auditing","Regional libraries--Financial statements--Georgia","Mountain Regional Library"],"dcterms_title":["Audit report, Mountain Regional Library, Young Harris, Georgia, year ended June 30, 1999"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1998-h99"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1998-h99"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"A \ngDO \n\" f\\ ) \nR4-b \n5 \nq 1 $J ...q q \nAUDIT REPORT MOUNTAIN REGIONAL LIBRARY \nYOUNG HARRIS, GEORGIA YEAR ENDED JUNE 30,1999 ,-~------------------_../ \nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \n254 WASHINGTON STREET \nATLANTA, GEORGIA 30334-8400 \n \n MOUNTAIN REGIONAL LIBRARY - TABLE OF CONTENTS- \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \n \nEXHIBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nA BALANCE SHEET \n \nALL FUND TYPES \n \n2 \n \nB STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n3 \n \nC STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n4 \n \nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \n5 \n \nADDITIONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \nSCHEDULE OF REVENUE \n \n1 \n \nSTATE \n \n12 \n \n2 \n \nLOCAL \n \n13 \n \n3 SCHEDULE OF SALARIES AND TRAVEL \n \n14 \n \nSECTIONll FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.w., Suite 214 Atlanta. Georgia 30334-X400 \nJune 21, 2000 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the Board ofRegents of the University System of Georgia \nand Director and Members of the Mountain Regional Library Board \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE \nFINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \nLadies and Gentlemen: \nWe have audited the accompanying general purpose financial statements of the Mountain Regional Library Board, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Mountain Regional Library's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \nWe 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. \nAs 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: \n* The general purpose financial statements of the Library did not contain a General Fixed Assets \nAccount 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. \nThe aggregate effects on the general purpose financial statements of this omission has not been determined, but is believed to be material. \n99ARL-42A \n \n In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the third paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Mountain Regional Library as ofJune 30,1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. \nOur audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Mountain Regional Library taken as a whole. The accompanying financial schedules (Schedules 1 through 3), 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. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. \nA copy of this 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. \nRespectfully submitted, \n1(j ..:B- \nRu sell W. Hinton State Auditor \nRWH:das 99ARL-42A \n \n MOUNTAIN REGIONAL LIBRARY \n \n MOUNTAIN REGIONAL LIBRARY BALANCE SHEET ALL FUND TYPES JUNE 30,1999 \n \nEXHIBIT \"A\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30,1999 \n \nJUNE 30, 1998 \n \n$ \n \n152,536.99 $ \n \n152,536.99 $ \n \n81,879.70 \n \n31,280.00 \n \n31,280.00 \n \n31,280.00 \n \n25,000.00 \n \n25,000.00 \n \nTotal Assets \n \n$ \n \nFUND EQUITY \n \nFund Balances \n \nReserved \n \nFor Purchase of Library Books and Materials \n \n$ \n \nUnreserved \n \nUndesignated \n \n208,816.99 $ \n \n208,816.99 $ \n \n113,159.70 \n \n48.543.25 $ 160.273.74 \n \n48.543.25 $ 160,273.74 \n \n48,116.37 65,043.33 \n \nTotal Fund Equity \n \n$ \n \n208.816.99 $ \n \n208,816.99 $ ===1=13=:,=15=:9=.7=0= \n \nThe notes to the general purpose financial statements are an integral part of this statement. -2- \n \n MOUNTAIN REGIONAL LIBRARY, STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1999 \n \nEXHIBIT \"B\" \n \nREVENUES \nState Funds Federal Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Circulation Support Services Maintenance and Operation Information Technology \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFUND BALANCE JULY 1 \nFUND BALANCE JUNE 30 \n \nGENERAL FUND \n \nTOTALS (Memorandum Only) \nYEAR ENDED JUNE 30,1999 JUNE 30,1998 \n \n$ 473,845.16 $ 473,845.16 $ 315,820.88 \n \n42,155.50 \n \n232,330.86 \n \n232,330.86 \n \n206,779.10 \n \n22,176.82 \n \n22,176.82 \n \n26,263.08 \n \n$ 728,352.84 $ 728,352.84 $ 591,018.56 \n \n$ 297,154.45 $ 297,154.45 $ 140,691.60 \n \n22,050.82 \n \n22,050.82 \n \n27,161.92 \n \n137,793.63 \n \n264,973.17 \n \n264,973.17 \n \n238,302.55 \n \n46,097.82 \n \n46,097.82 \n \n30,267.18 \n \n2,419.29 \n \n2,419.29 \n \n$ 632,695.55 $ 632,695.55 $ 574,216.88 \n \n$ 95,657.29 $ 95,657.29 $ 16,801.68 \n \n113,159.70 \n \n113,159.70 \n \n96,358.02 \n \n$ 208,816.99 $ 208,816.99 $ 113,159.70 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -3- \n \n MOUNTAIN REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL GENERAL FUND \nYEAR ENDED JUNE 30,1999 \n \nEXHIBIT\"C\" \n \nREVENUES \nState Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Public Services Technical Services Support Services Maintenance and Operation Information Technology \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFUND BALANCE JULY 1,1998 \nFUND BALANCE JUNE 30, 1999 \n \nBUDGET \n \nACTUAL \n \n$ 492,019,10 $ 473,845.16 \n \n232,830.86 \n \n232,330.86 \n \n5,020,00 \n \n22,176.82 \n \n$ 729,869.96 $ 728,352.84 \n \n$ 391,511.56 $ 297,154.45 \n \n25,107.53 \n \n22,050.82 \n \n272,088.93 \n \n264,973.17 \n \n39,172.20 \n \n46,097.82 \n \n4,400.00 \n \n2,419.29 \n \n$ 732,280.22 $ 632,695.55 \n \n$ \n \n-2,410.26 $ 95,657.29 \n \n96,325.52 \n \n113,159.70 \n \n$ \n \n93,915.26 $ 208,816.99 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -4- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1999 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Mountain Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all fund types and account groups of the Library. \nThe Library Board consists of 15 members; 7 members appointed by Fannin County Library Board, 4 members appointed by Towns County Library Board and 4 members appointed by Union County Library Board. The Library 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 Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Mountain Regional Library is therefore determined to be a joint venture. \nFUND ACCOUNTING \nThe Library uses a fund 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. \nA fund is a separate accounting entity with a self-balancing set of accounts. \nGeneral 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. \nThe general purpose financial statements account for all State, Local 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. The fund presented in this report is as follows: \nGOVERNMENTAL FUND TYPE - used to account for all of the Library's general activities. The Governmental Fund Type includes: \n \n-5- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30,1999 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL FUND - the fund used to account for all financial resources of the Library. These transactions relate to resources obtained and used for services provided by a Library. \nBASIS OF ACCOUNTING \nThe 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. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount ofthe transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income. \nExpenditures are generally recognized when the related fund liability is incurred. \nBUDGET \nThe Mountain 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. \nThe 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 Board of Regents of the University System of Georgia as a part of the Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. \n \n- 6- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1999 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the obj ective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist of grant reimbursements due on State or other grants for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been \n-7- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1999 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nmet. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. \nAdditionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements. \nMEMORANDUM ONLY - TOTAL COLUMNS \nTotal columns on the general purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. \nNote 2: DEPOSITS \nCOLLATERALIZATION 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 ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security L'l the case of operating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of anyone of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n-8- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1999 \n \nNote 2: DEPOSITS \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State 0 f Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(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 or 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. \n \nCATEGORIZAnON OF DEPOSITS At June 30, 1999, the bank balances were $224,460.13. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Library's name.) \n \nThe Library's deposits are classified by risk category at June 30, 1999, as follows: \n \nRisk Category \n1 2 3 \nTotal \n \nBank Balance \n \n$ 202,288.03 \n \n~ \n \n22,172.10 \n \n0.00 \n \n$ 224.460.13 \n \n-9- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT liD\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1999 \n \nNote 3: RISK MANAGEMENT \n \nThe Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation. \n \nThe Library has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. \n \nThe Library has elected to self-insure for all losses related to natural disaster. The Library has nC't experienced any losses related to this risk in the past three years. \n \nThe 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. \n \nThe Library has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees \n \n$ 10,000.00 \n \nNote 4: ACCUMULATED EMPLOYEES' LEAVE \n \nThe Library's full-time employees earn annual leave according to their length of service ranging from 10 to 20 days per year with a maximum accumulation of 30 days. Part-time regular employees earn annual leave on a pro-rata basis. All unused leave is paid to employees, at their current rate of pay, upon retirement or termination of employment. See Note 1 - Compensated Absences \n \nNote 5: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 10- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1999 \n \nNote 5: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n1999 1998 1997 \n \n100% 100% 100% \n \n$ 37,244.60 $ 33,909.49 $ 30,690.93 \n \n- 11 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30,1999 \nAGENCY/FUNDING GRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries Travel Library Materials Maintenance and Operation Community Affairs, Georgia Department of Pass-Through Towns County Board of Commissioners Local Assistance Grant (1) CONTRACT Technical and Adult Education, Georgia Department of Children's Reading Initiative \n(1) The purpose of the funds were for the purchase of a Bookmobile. \n \nSCHEDULE \"1\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n214,597.16 \n \n6,000.00 \n \n27,874.00 \n \n23,274.00 \n \n100,000.00 \n \n102,100.00 $ ===4\";;7;\",;;3~,8;\",;4,;;;;5';.;,16;;;,, \n \nSee notes to the general purpose finCl;ncial statements. \n \n- 12- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE \nYEAR ENDED JUNE 30,1999 \nLOCAL SOURCES \nBoards of Commissioners Fannin County Towns County Union County \nBoards of Education Fannin County Towns County Union County \nCity Governments Blue Ridge Hiawassee McCaysville Mineral Bluff Morganton Young Harris \n \nSCHEDULE \"2\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n43,040.36 \n \n33,803.20 \n \n38,121.87 \n \n43,040.36 33,803.20 38,121.87 \n \n500.00 200.00 500.00 100.00 100.00 1,000.00 \n \n$ \n \n232,330.86 \n \nSee notes to the general purpose financial statements. \n \n- 13- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 1999 \n \nSCHEDULE \"3\" \n \nNAME \nAsh, Brendle, Burchardt, Carney, Chesnut, Clark, Collins, Fatora, Foster, Haymore, Howell, Keys. Leverett, Lynch, Nelson, Nichols, Phillips, Steigerwalt, Sutphin, Tallent, Weaver, Wood, \n \nWilmaB. Mary Sue Sandra L. Michele L. Mary Alice Teddy P. Sue C. Elaine K. Linda M. Teresa P. Donna W. Peggy A. Joann Joann C. Edna Earl Betty Jean Deborah C. Elizabeth Dorothea J. Barbara Nannette M. Sandra D, \n \nTITLE CATEGORY \nLibrarian Library Assistant Library Assistant Library Assistant Library Assistant Processing Clerk Library Assistant Circulation Clerk Children's Service Coordinator Director Assistant Director Bookmobile Driver Library Assistant Library Assistant Library Assistant Bookmobile Assistant Branch Manager Library Assistant Librarian Library Assistant Library Assistant Library Assistant \n \nSALARIES \n \nTRAVEL \n \n$ 43,951,20 $ 6,986.00 2,629.58 9,727.20 861.00 13,780.80 15,023.60 \n15,868.80 9,666.30 \n47,155.10 44,199.60 13,840.20 \n2,226.00 7,838.50 6,368.40 6,941.20 11,216.70 2,900.80 40,506.90 8,019.20 10,580.45 \n404.25 \n \n121.50 4.25 \n8.22 \n4.27 17.51 22.50 1,354.47 4,551.03 1,091.99 256.57 \n53.22 \n237.34 \n \nTotals per Report \n \n$ 320,691.78 $==7=,7=2=:2=.8==7 \n \nSee notes to the general purpose financial statements. \n \n- 14- \n \n SECTION II FINDINGS AND QUESTIONED COSTS \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 1999 \nP~ORYEAWCURRENTYEAR \nCASH AND CASH EQUIVALENTS Inadequate Separation of Duties Finding Control Number: 7392-93-01 \nThe audit report for the year ended June 30, 1998, 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 noted no improvement for separation of duties in the performance of the following accounting functions and related procedures: \n(1) The check signing function was not separated from the cash disbursement function. In addition, prepared checks were not reviewed by someone other than the preparer before the signature was affixed. \n(2) The deposit preparation function was not separated from the cash receipting function. No one independent of the cash and financial records prepares a listing of checks to be compared to the deposit ticket or cash journal. \n(3) Reconciliation of the bank account is not performed by someone independent of the general ledger function. \nThese conditions were a result of management's decision to limit the number of administrative staff made responsible for accounting functions. The Library should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the above control functions, and implement those procedures to strengthen the internal control over the accounting functions. \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7392-93-02 \nThe audit report for the year ended June 30, 1998, noted that the management of the Mountain 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. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1997-h98","title":"Audit report, Mountain Regional Library, Young Harris, Georgia, year ended June 30, 1998","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Mountain Regional Library (Young Harris, Ga.)","Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Fannin County, 34.86411, -84.31985","United States, Georgia, Towns County, 34.91665, -83.73728","United States, Georgia, Union County, 34.83401, -83.99076"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["1998-06-30"],"dcterms_description":["June 30, 2000-","Title from cover.","Report year covers fiscal year.","June 30, 2004."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Regional libraries--Georgia--Auditing","Regional libraries--Financial statements--Georgia","Mountain Regional Library"],"dcterms_title":["Audit report, Mountain Regional Library, Young Harris, Georgia, year ended June 30, 1998"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1997-h98"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-br46-bm5-b1997-h98"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"A1Jco .R\\ (2'\\\u003c0 \nM5 \n\\,\\q1-c1~ \n \nAUDIT REPORT \n \nMOUNTAIN REGIONAL LffiRARY \n \nYOUNG HARRIS, GEORGIA \n \nI \n \nYEAR ENDED JUNE 30, 1998 \n \nI l \n\"-- \n \nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \n254 WASHINGTON STREET \nATLANTA, GEORGIA 30334-8400 \n \n MOUNTAIN REGIONAL LffiRARY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \n \nEXHIBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nA BALANCE SHEET \n \nALL FUND TYPES \n \n2 \n \nB .STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n3 \n \nC STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET.AND ACTUAL \n \nGENERAL FUND \n \n4 \n \nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \n5 \n \nADDmONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \n1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION \n \n12 \n \nSCHEDULE OF REVENUE \n \n2 \n \nSTATE \n \n13 \n \n3 \n \nFEDERAL \n \n14 \n \n4 \n \nLOCAL \n \n15 \n \n5 SCHEDULE OF SALARIES AND TRAVEL \n \n16 \n \nSECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 6562174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \nJuly 1, 1999 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Technical and Adult Education \nand Director and Members of the Mountain Regional Library Board \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \nLadies and Gentlemen: \nWe have audited the accompanying general purpose fmancial statements of the Mountain Regional Library, as ofand for the year ended June 30, 1998, as listed in the table ofcontents. These general purpose financial statements are the responsibility of the Mountain Regional Library's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \nWe conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perfonn 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 amo\\IDts 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. \nAS 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: \n 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 confonn to generally accepted accounting principles. \nThe aggregate effects on the general purpose financial statements ofthis omission have not been determined, but are believed to be material. \n \n98ARL~42A \n \n In our opinion, except for the effects on the general purpose fmancial statements of the matter referred to in \nthe third paragraph, the general purpose fmancial statements referred to above present fairly, in all material respects, the fmancial position of the Mountain Regional Library as of June 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. \nThe year 2000 supplementary information on Schedule \"1\" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries ofmanagement regarding the methods ofmeasurement and presentation of the supplementary information. However we did not audit \nthe information and do not express an opinion on it. In addition, we do not provide assurance that Mountain \nRegional Library is or will become year 2000 compliant, that the Library's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Mountain Regional Library does business are or will become year 2000 compliant. \nOur audit was performed for the purpose of forming an opinion on the general purpose financial statements ofthe Mountain Regional Library taken as a whole. The financial schedules (Schedules 2 through 5), 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. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects of the matter 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. \nA 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. \nRespectfully submitted, \n~ .. .40.~~ Russell W. Hinton State Auditor \nRWH:jb 98ARL-42A \n \n MOUNTAIN REGIONAL LIBRARY BALANCE SHEET ALL FUND TYPES JUNE 30, 1998 \n \nEXHIBIT\"A\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \nTOTALS (Memorandum Only) JUNE 30, 1998 JUNE 30, 1997 \n \n$ \n \n81,879,70 $ \n \n81,879.70 $ \n \n65,045,52 \n \n31,280,00 \n \n31,280.00 \n \n31,280.00 \n \n32,50 \n \nTotal Assets \n \n$ \n \n113,159.70 $ \n \n113,159.70 $ \n \n96,358.02 \n \nFUND EQUITY \n \nFund Balances \n \nReserved \n \nFor Purchase of Library Books and Materials \n \n$ \n \nUnreserved \n \nUndesignated \n \nTotal Fund Equity \n \n$ \n \n48,116,37 $ \n651043.33 \n \n48,116.37 $ \n651043:33 \n \n47,671.30 481686.72 \n \n113,159.70 $ \n \n113,159.70 $ \n \n96,358.02 \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-2- \n \n MOUNTAIN REGIONAL LIBRARY BALANCE SHEET ALL FUND TYPES JUNE 30, 1998 \n \nEXHIBIT\"A\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \nTOTALS (Memorandum Only) JUNE 30, 1998 JUNE 30, 1997 \n \n$ \n \n81,879.70 $ \n \n81,879.70 $ \n \n65,045.52 \n \n31,280.00 \n \n31,280.00 \n \n31,280.00 \n \n32,50 \n \nTotal Assets \n \n$ \n \n113,159.70 $ \n \n113,159.70 $===96::!:,=:35=:8=.0=2 \n \nFUND EQUITY \n \nFund Balances \n \nReserved \n \nFor Purchase of Library Books and Materials \n \n$ \n \nUnreserved \n \nUndesignated \n \n48,116.37 $ 65,043.33 \n \n48,116.37 $ 65,043:33 \n \n47,671.30 48,686.72 \n \nTotal Fund Equity \n \n$ \n \n113,159.70 $ \n \n113,159,70 $===96::!:,3=:5=:8=.02= \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-2- \n \n MOUNTAIN REGIONAL LIBRARY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1998 \n \nEXHIBIT \"B\" \n \nREVENUES \nState Funds Federal Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Program Services Technical Services Circulation Administration Maintenance and Operations \nTotal Expenditures \nExcess ~f Revenues over (under) Expenditures \nFUND BALANCE JULY 1 \nFUND BALANCE JUNE 30 \n \nGENERAL FUND \n \nTOTALS (Memorandum Only) \nYEAR ENDED JUNE 30,1998 JUNE 30, 1997 \n \n$ 315,820.88 $ 315,820.88 $ \n \n42,155.50 \n \n42,155.50 \n \n206,779.10 \n \n206,779.10 \n \n26,263.08 \n \n26,263.08 \n \n$ 591.018.56 $ 591,018.56 $ \n \n239,096.88 8,032.50 \n172,769.94 11,530.15 \n431A29.47 \n \n$ 140,691.60 $ 140,691.60 $ \n \n27,161.92 \n \n27,161.92 \n \n137,793.63 \n \n137,793.63 \n \n238,302.55 \n \n238,302.55 \n \n30,267.18 \n \n30,267.18 \n \n$ 574,216.88 $ 574,216.88 $ \n \n$ 16,801.68 $ 16,801.68 $ \n \n96,358.02 \n \n96,358.02 \n \n43,754.56 23,232.78 109,808.48 234,706.90 25,391.13 \n436,893.85 \n-5,464.38 \n101,822.40 \n \n$ 113,159.70 $ 113,159.70 $=====9=6~!35=8=.0==2 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -3;. \n \n MOUNTAIN REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL GENERAL FUND \nYEAR ENDED JUNE 30, 1998 \n \nEXHIBIT \"C\" \n \nREVENUES \nState Funds Federal Funds Local Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Program Services Technical Services Circulation Administration Maintenance and Operations \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFUND BALANCE JULY 1. 1997 \n \nBUDGET \n \nACTUAL \n \n$ 353,820,82 $ 4,100,00 \n206,779,10 5,630,32 \n$ 570,330.24 $ \n \n315,820,88 42,155.50 206,779,10 26,263,08 \n591,018.56 \n \n$ 141,958.56 $ 24,937.34 123,463,98 251,427,06 28,543,30 \n \n$ 570,330,24 $ \n \n$ \n \n0,00 $ \n \n96,325.52 \n \n140,691,60 27,161,92 137,793,63 238,302,55 30,267,18 \n574,216,88 \n16,801,68 \n96,358,02 \n \nFUND BALANCE JUNE 30. 1998 \n \n$ 96,325,52 $==:\"===1=13=,1=5:=9=,7=.::0 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -4- \n \n MOUNTAIN REGIONAL LffiRARY \n \nEXHffiIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30,1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nREPORTING ENTITY \nThe Mountain Regional Library (Library) operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exception of the departure from generally accepted accounting principles disclosed in these notes, the firnuicial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the fmancial statements present all fund types and account .groups of the Library. \n \nThe Library Board consists of 15 members; 7 members appointed by Fannin County Library Board, 4 members appointed by Towns County Library Board and 4 members appointed by Union County Library Board. The Library 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 participatinggovernmental agency. The Library Board has the power to designate management, the power to retain unreserved fund balances of local and other funds for continued operations and is the lowest level ofoversight responsibility for the Library's operations. The Mountain Regional Library is determined to be a joint venture. \n \nFUND ACCOUNTING \nThe Library uses a fund 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. \n \nA fund is a separate accounting entity with a self-balancing set of accounts. \n \nGeneral Fixed Assets, which includes the Library's inexhaustible collections and books, are recorded as \n \nexpenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not \n \npresently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed \n \nAssets Account Group should be maintained for reporting the cost of assets acquired by gove~entalfund \n \ntyp~ \n \n. \n \nThe 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. The fund presented in this report is as follows: \n \nGOVERNMENTAL FUND TYPE - used to account for all of the Library's general activities. The Governmental Fund Type includes: \n \n-5- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL FUND - the fund used to account for all financial resources ofthe Library. These transactions relate to resources obtained and used for services provided by a Library. \nBASIS OF ACCOUNTING . \nThe 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 (Le., revenues and other fmancing sources) and decreases (Le., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \nRevenues are recognized when susceptible to accrual (Le., when they become both measurable and available). \"Measurable\" means the amount ofthe transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income. \nExpenditures are generally recognized when the related fund liability is incurred. \nBUDGET \nThe Mountain 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 ofthe 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. \nThe budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Department of Technical and Adult Education as a part ofthe Library's annual application for State aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. \n \n-6- \n \n MOUNTAIN REGIONAL LffiRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized fmancial 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. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Library in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Both participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Library to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the l}nited States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other politic~ subdivisions of the State of Georgia. \n \n- 7- \n \n MOUNTAIN REGIONAL LffiRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose fmancial statements. \nAdditionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Tenn Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements. \nMEMORANDUM ONLY - TOTAL COLUMNS \nTotal columns on the general purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. \nNote 2: DEPOSITS \nCOLLATERALIZATION 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent 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. \nAcceptable security for deposits consists of anyone of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the. State of Georgia, \n-8- \n \n MOUNTAIN REGIONAL LffiRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 2: DEPOSITS \n \n(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, \n \n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and \n \n(7) Bonds, bills, notes, certificates ofindebtedness, or other obligations ofa 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. \n \nCATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $354,057.40. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Library or by the Library's agent in the Library's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Library's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial histitution, or by its trust department or agent but not in the Library's name.) \n \nThe Library's deposits are classified by risk category at June 30, 1998, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 126,836.37 \n \n2 \n \n227,221.03 \n \n3 \n \n0.00 \n \nTotal \n \n$ 354,057.40 \n \nNote 3: RISK MANAGEMENT \n \nThe Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation. \n \n-9- \n \n MOUNTAIN REGIONAL LffiRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 3: RISK MANAGEMENT \n \nThe 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. \n \nThe Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to this risk in the past three years. \n \nThe Library is self-insured with regard to unemployment compensation claims. The Library accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Library has not experienced any unemployment compensation claims during the last two years. \n \nThe Library has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nBlanket - All Employees \n \n$ 10,000.00 \n \nNote 4: CONTINGENT LIABILITIES \n \nAmounts 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. \n \nNote 5: ACCUMULATED EMPLOYEES' LEAVE \n \nThe Library's full-time employees earn annual leave according to their length of service ranging from 10 to 20 days per year with a maximum accumulation of 30 days. Part-time regular employees earn annual leave on a pro-rata basis. All unused leave is paid to employees, at their current rate of pay, upon retirement or termination ofemployment. See Note 1 - Compensated Absences \n \nNote 6: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer.defined benefit \n \n- 10- \n \n MOUNTAIN REGIONAL LIBRARY \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 6: RETIREMENT PLANS \n \npension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department ofAudits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Library who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n1998 1997 1996 \n \n100% 100% 100% \n \n$ 33,909.49 $ 30,690.93 $ 28,128.18 \n \n- 11 - \n \n MOUNTAIN REGIONAL LmRARY \n \nSCHEDULE \"1\" \n \nSCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION \n \nYEAR 2000 DISCLOSURES \n \nYEAR ENDED JUNE 30, 1998 \n \nAt June 30, 1998, the Mountain Regional Library had no outstanding contractual commitments for the purpose of making computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is of primary concern for the Library's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. \nAwareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue. \nAssessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. \nRemediation Stage - When changes are made to systems and equipment. \nValidationffesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. \nIt will be necessary for the Library to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the financial accounting system was determined to be at the Awareness Stage. \nThe Library's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Library's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as ofDecember 9, 1998. The Georgia Department ofEducation has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all libraries currently utilizing the GENESIS accounting software. \n \nSee notes to the general purpose financial statements. \n- 12- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30,1998 \nAGENCYIFUNDING \nGRANTS Technical and Adult Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Regular Govemor's Reading Incentive Program Maintenance and Operation \n \nSCHEDULE \"2\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n202,414.88 \n \n27,450.00 63,106.00 22,850.00 \n \n$ \n \n315,820,88 \n \nSee notes to the general purpose financial statements. \n-13 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE \nYEAR ENDED JUNE 30.1998 \nAGENCYIFUNDING \nGRANT Education. l). S. Department of Through Georgia Department of Technical and Adult Education Library Services and Construction Act Title I - Public Library Services Title III - Interlibrary Cooperation and Resource Sharing \n \nSCHEDULE \"3\" \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n42,100.00 \n \n55.50 \n \n$ \n \n42,155.50 \n \nSee notes to the general purpose financial statements. \n \n- 14- \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF LOCAL REVENUE \nYEAR ENDED JUNE 30. 1998 \n \nSCHEDULE \"4\" \n \nLOCAL SOURCES \nBoards of Commissioners Fannin County Towns County Union County \nBoards of Education Fannin County Towns County Union County \nCity Governments Blue Ridge Hiawassee McCaysville Mineral Bluff Morganton Young Harris \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n40,328.76 \n \n28,107.73 \n \n35,267.82 \n \n40,328.76 28,107.73 32,238.30 \n \n500.00 200.00 500.00 100.00 100.00 1,000.00 \n \n$====2=0=6=,7=79~.=10= \n \nSee notes to the general purpose financial statements. -15 - \n \n MOUNTAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30. 1998 \n \nSCHEDULE \"5\" \n \nNAME \nAsh, Brendle, Burchardt, Carney, Clark, Collins, Fatora, Foster, Haymore, Howell, Keys, Leverett, Lynch, McCann, Nelson, Nichols, Phillips, Steigerwalt, Sutphin, Tallent, Weaver, Williams, \n \nWilmaB. Mary Sue Sandra L. Michele L. Teddy P. SueC. Elaine K. Linda M. Teresa P. DonnaW. Peggy A. Joann Joann C. Jacqueline E. Edna Earl Betty Jean Deborah C. Elizabeth Dorothea J. Barbara Nannette M. GaryO. \n \nTITLE CATEGORY \nLibrarian Library Assistant Library Assistant Library Assistant Processing Clark Library Assistant Circulation Clerk Children's Service Coordinator Director Assistant Director Bookmobile Driver Library Assistant Library Assistant Library Assistant Library Assistant Bookmobile Assistant Branch Manager Library Assistant Librarian Library Assistant Library Assistant Library Assistant \n \nSALARIES \n \n$ \n \n41,482.40 $ \n \n3,038.75 \n \n2,297.00 \n \n7,690.26 \n \n13,070.00 \n \n14,046.50 \n \n15,158.00 \n \n8,712.50 \n \n44,555.20 \n \n40,552.40 \n \n13,070.00 \n \n398.00 \n \n10,462.00 \n \n40.60 \n \n6,080.50 \n \n6,485.38 \n \n10,632.50 \n \n2,461.25 \n \n37,119.80 \n \n3,968.00 \n \n12,023.13 \n \n5,275.50 \n \nTRAVEL 376.49 \n918.02 4,333.16 1,103.98 \n59.50 \n67.28 337.54 \n17.00 \n \nTotals per Report \n \n$ \n \n298,619.67 $======70:::1,=21=2=.9==7 \n \nSee notes to the general purpose financial statements. -16 - \n \n SECTIONll FINDINGS AND QUESTIONED COSTS \n \n MOUNTAIN REGIONAL LffiRARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 1998 \n \nPRIOR YEAR/CURRENT YEAR \n \nCASH AND CASH EQUIVALENTS Inadequate Separation of Duties Finding Control Number: 7392-93-01 \n \nThe audit report for the year ended June 30, 1997, stated that the Library did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement for separation of duties in the performance of the following accounting functions and related procedures: \n \n(1) The check signing function was not separated from the cash disbursement function. In addition, prepared checks were not reviewed by someone other than the preparer before the signature was affixed. \n \n(2) The deposit preparation function was not separated from the cash receipting function. No one independent of the cash and financial records prepares a listing of checks to be compared to the deposit ticket or cash journal. \n \n(3) Reconciliation ofthe bank account is not performed by someone independent of the general ledger function. \n \nThese conditions were a result of management's decision to limit the number of administrative staff made responsible for accounting functions. The Library should review the accounting procedures in place, design procedures which would enhance segregation ofduties relative to the above control functions, and implement those procedures to strengthen the internal control over the accounting functions. \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7392-93-02 \n \nThe audit report for the year ended June 30, 1997, noted that the management of the Mountain Regional \n \nLibrary had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal \n \naccounting records as required by generally accepted accounting' principles. In the year under review, the \n \nLibrary did not establish a General Fixed Assets Account Group within the formal accounting records. This \n \ncondition results in the general purpose financial statements of the Library being incomplete and not in \n \naccordance with generally accepted accounting principles. Appropriate action should be taken by the Library \n \nto establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account \n \nGroup. These subsidiary records should include an inventory ofland, buildings, equipment, and inexhaustible \n \ncollections and books owned by the Library and should include, but may not be limited to, date acquired, \n \nacquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained \n \nof all additions and deletions to the General Fixed Assets Account Group. \n \n. \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":14,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":14}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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