WILLIAMSBURG REGIONAL LIBRARY

Transcription

1 GENERAL PURPOSE FINANCIAL STATEMENTS 'WWW:esmithcpa.com

2 CONTENTS INDEPENDENT AUDITORS' REPORT Report On General Purpose Financial Statements Report On Compliance And On Internal Control Over Financial Reporting Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards Summary Of Compliance Matters I 2 3 GENERAL PURPOSE FINANCIAL STATEMENTS Balance Sheet- All Fund Types Statement Of Revenues, Expenditures And Changes In Fund Balance - - Governmental Fund Statement Of Revenues, Expenditures And Changes In Fund Balance Budget And Actual - Governmental Fund Notes To Financial Statements SUPPLEMENTAL DATA Schedule Of Expenditures 13

3 INDEPENDENT AUDITORS' REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS To the Board oftrustees Williamsburg Regional Library Williamsburg, Virginia We have audited the general purpose financial statements of the Williamsburg Regional Library (the Library) as listed in the table of contents, as of and for the year ended. These general purpose financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and Specifications for Audit of Local Authorities, Boards, and Commissions issued by the Auditor of Public Accounts of the Commonwealth of Virginia. Those standards and specifications 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 general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Williamsburg Regional Library as of, and the results of its operations and the changes in its fund balances for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated October 1, 2001, on our consideration of the Library's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplemental data is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The supplemental data has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. October 1, McLaws Circle, Suite 120 Williamsburg, VA FAX

4 2 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board oftrustees Williamsburg Regional Library Williamsburg, Virginia We have audited the accompanying general purpose financial statements of the Williamsburg Regional Library as of and for the year ended, and have issued our report dated October 1, We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Compliance As part of obtaining reasonable assurance about whether the Williamsburg Regional Library's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our test disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control over Financial Reporting In planning and performing our audit, we considered the Williamsburg Regional Library's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amount that would be material in relation to the financial statements being audited may occur and not be detected \vithin a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report in intended for the information of officials of the funding governments, the Board of Trustees, and Library management and is not intended to be and should not be used by anyone other than these specified parties. ~~~~ October 1, McLaws Circle, Suite 120 o Williamsburg, VA o o FAX o

5 3 INDEPENDENT AUDITORS' REPORT SUMMARY OF COMPLIANCE MATTERS Year ended As more fully described in the Independent Auditors' Report on Compliance, we performed tests of the Williamsburg Regional Library's compliance with certain provisions of the laws, regulations, contracts, and grants shown below. STATE COMPLIANCE MATTERS Code of Virginia: Cash and Investment Laws Procurement Laws 460 McLaws Circle, Suite 120 Williamsburg, VA FAX

6 GENERAL PURPOSE FINANCIAL STATEMENTS Year Ended

7 4 BALANCE SHEET- ALL FUND TYPES With Comparative Totals For June 30, 2000 GENERAL GENERAL FIXED LONG-TERM ASSETS OBLIGATIONS TOTALS GENERAL ACCOUNT ACCOUNT (MEMORANDUM ONLY) ASSETS FUND GROUP GROUP Cash $ 8,393 $ $ $ 8,393 $ 8,423 Investment 436, , ,876 Amounts to be reimbursed 19,345 19,345 15,942 Prepaid expenses 1,770 1,770 2,510 Bookmobile 139, , ,338 Furniture and equipment 1,971,643 1,971,643 1,765,599 Amount to be provided for retirement of general long-term obligations Total assets $ $ $ $ $ LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 114,108 $ $ $ 114,108 $ 79,107 Accrued payroll 29,531 29,531 32,645 Advance user deposits 5,555 5,555 6,743 Investment in fixed assets 2,110,667 2,110,667 1,898,937 Liability for future compensated absences Tota1liabi1ities $ $ $ $ $ FUND BALANCE Unreserved - undesignated $ $ $ $ $ Reserved - designated/reserved ,256 Total fund balance $ $ $ $ $ Total liabilities and fund balance $ $ 2,110,667 $ $ $ 2,439,336 See Notes to Financial Statements.

8 5 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUND Year Ended With Comparative Totals For Year Ended June 30, 2000 REVENUES GENERAL FUND Local participating governments State grant Federal grants Other grants Contributions Fines Fees -facility, equipment, technical Programs Interest Other $ 3,732, ,210 14,122 57, ,588 81,924 47,588 46,216 28, $ 3,577, ,172 12, ,054 85,122 40,811 59,952 4, Total revenues $ 4, $ EXPENDITURES Personnel Materials Operations $ 3,082, , $ 2,872, , Total expenditures $ 4,652,822 $ Excess of revenues over expenditures $ 66,744 $ 185,538 FUND BALANCE, beginning FUND BALANCE, ending $ $ See Notes to Financial Statements.

9 6 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GOVERNMENTAL FUND Year Ended GENERAL FUND VARIANCE- REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Local participating governments $ 3,732,471 $ 3,732,471 $ State grant 527, ,210 Federal grants 14,122 14,122 Other grants 57,653 57,653 Contributions 151, ,588 Fines 89,550 81,924 ( 7,626) Fees -facility, equipment, technical 40,905 47,588 6,683 Programs 46,216 46,216 Interest 2,000 28,183 26,183 Other Total revenues $ 4, $ 4, $ EXPENDITURES Personnel $ 3,216,688 $ 3,082,065 $ 134,623 Materials 555, ,948 ( 33,782) Operations ( ) Total expenditures $ 4, $ 4, $ ( 230,122) Excess of revenues over expenditures $ $ 66,744 $ 66,744 FUND BALANCE, beginning FUND BALANCE, ending $ $ $ See Notes to Financial Statements.

10 7 NOTES TO FINANCIAL STATEMENTS Note I. NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Organization: The Williamsburg Regional Library (the Library) was organized under a 1977 agreement (the Agreement) between the City of Williamsburg (the City) and the County of James City (the County) and receives funding from the City and the County. The Library also receives funding from the State ofvirginia, York County and private sources. The County provides payroll and human resources administration, and the City is the fiscal agent and is responsible for maintaining certain financial records of the Library. The Agreement was last revised on January 14, Significant Accounting Policies: Basis of Accounting: The accompanying financial statements are prepared in accordance with the provisions of Statement 1, Authoritative Status of NCGA Pronouncements and AICPA Industry Audit Guide, Audits of State and Local Governments, and subsequent pronouncements issued by the Governmental Accounting Standards Board since July The principles prescribed by Statement 1 represent U.S. generally accepted accounting principles applicable to governmental units. The accounts are organized on the basis of funds and groups of accounts, each of which is considered to be a separate accounting entity. The operation of each fund is accounted for by providing a separate set of self-balancing accounts which comprise its assets, liabilities, fund balance, revenues and expenditures. The various funds are grouped in the financial statements as follows: Governmental Fund Type: The General Fund is the general operating fund of the Library. The General Fund is used to account for all of the Library's expendable noncapital financial resources and related liabilities. The measurement focus is upon determination of changes in financial position. Account Groups: The General Fixed Assets Account Group accounts for fixed assets of the Library. The General Long-Term Obligations Account Group accounts for the Library's future obligation for compensated absences. Total Columns: The total columns are captioned "MEMORANDUM ONLY" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position or results of operation in conformity with U.S. generally accepted accounting principles, nor do they represent a consolidation. (Continued)

11 8 NOTES TO FINANCIAL STATEMENTS Note 1. NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued) Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the report amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Budgetary Procedures: The Library follows these procedures in developing its annual budget for the upcoming fiscal year: In December, the Board of Trustees' Budget and Finance Director and the Library's Director prepare a preliminary budget for the General Fund that is submitted to the Board of Trustees for review before submission to the jurisdictions. In February or March, a revised budget is prepared and submitted to the Board of Trustees for approval. In June, the Board of Trustees formally adopts the final budget for the upcoming fiscal year. Amounts shown in the accompanying financial statements as "REVISED BUDGET" represent original appropriations authorized by the Board of Trustees and any additional and supplemental appropriations authorized during the year. Contributions, in-kind support, program revenues, and related expenditures, are not budgeted items. Furniture and Equipment: All general fixed assets of the Library are accounted for in the General Fixed Assets Account Group. Capital outlays are initially recorded as expenditures of the General Fund. Capital outlays are subsequently capitalized in the General Fixed Assets Account Group. General fixed assets acquired prior to July 1, 1990 are recorded at appraised values as of that date. General fixed assets purchased subsequent to June 30, 1990 are stated at cost. Depreciation is not recorded on general fixed assets. Termination of the Agreement would require the pro-rata distribution to the City and the County of furniture and equipment acquired while the Library was in existence. Collections and Books: Because the values of the existing inexhaustible collections, including research books, are not readily determinable, the Library has not capitalized them. Collections that are exhaustible and books used in the circulating library have not been capitalized due to their individually insignificant amounts. (Continued)

12 9 NOTES TO FINANCIAL STATEMENTS Note 1. NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (concluded) Facilities and Services: The City owns the land and building that accommodate the Library's operations at 515 Scotland Street. The County owns the land and building that accommodate the Library's operations at 7770 Croaker Road. The City and County contribute the use of these properties. The Library benefits from volunteers who perform various administrative duties at no cost to the Library. Compensated Absences: Under U.S. generally accepted accounting principles, a liability should be recorded in the General Fund for compensated absences meeting certain criteria and expected to be liquidated with expendable available financial resources. Any remaining liability for compensated absences is recorded in the General Long Term Obligations Account Group. Because the Library's total obligation is expected to be funded from future expendable resources, the entire amount is recorded in the General Long-Term Obligations Account Group. Retirement Plan: All full-time, salaried, regular employees of the Library participate in the Virginia Retirement System (VRS). Employees are vested after 5 years of credited service. Their participation is reported together with the employees of the County. VRS is administered by the Commonwealth of Virginia, which bills the County for the employer's share of contributions. The contributions are actuarially determined every two years by VRS actuaries using the entry age normal cost method and consist of current service costs and amortization of prior service costs over a 40-year period. The Library currently pays employee and employer contributions. VRS is obligated to pay a monthly benefit to participants upon retirement with the amount of the benefit dependent upon length of service and earnings. Because Library employees are included with employees of the County, pension data is not separately available. Reclassifications: Certain amounts in the prior year's financial statements have been reclassified to conform to the current year's presentation. Note 2. CASH As of, the carrying value of the Library's deposits with banks was$ 8,393, and the bank balance was $ 56,284. The entire bank balance was covered by federal depository insurance or collateralized in accordance with Virginia Security for Public Deposits act. Under the Act, all such deposits ofthe Library are considered to be insured. (Continued)

13 10 NOTES TO FINANCIAL STATEMENTS Note 2. CASH (concluded) Banks holding public deposits in excess of the amounts insured by FDIC must pledge collateral in the amount of 50% of excess deposits to a collateral pool in the name of the State Treasury Board. The State Treasury Board is responsible for monitoring compliance with the collateralization and reporting requirements of the Act, and for notifying the Library or its fiscal agent of compliance by banks. All of the Library's bank balance was insured and collateralized in banks qualifying under the Act as of June 30, Note 3. INVESTMENT The Library has been authorized by the City and County to invest temporarily idle cash in the State Treasurer's Local Government Investment Pool (LGIP). Statutes applicable to both the City and County authorize this investment. Investment of$ 436,686 in the State Treasurer's Local Government Investment Pool at is carried at fair value, which is also cost. Note 4. STATE GRANT Expenditures under the Virginia State Library & Archives grant from the Commonwealth of Virginia totaled$ 527,210 for the year ended. Note 5. RELATED PARTY TRANSACTIONS The Library received cash support of$ 612,682 from the City and$ 2,955,649 from the County and paid fees of$ 10,905 to the City for fiscal agent services and $ 49,483 to the County for human resources administration for the year ended June 30, 200 l. The Library received support of$ 45,073 from the Friends of the Williamsburg Regional Library (the Friends) and$ 15,037 from the Williamsburg Regional Library Foundation (the Foundation) for programs and collection materials. In addition, the Friends and the Foundation reimbursed the Library$ 44,824 and $ 15,038 respectively, for expenses such as printing and mailing that the Library paid on their behalf Note 6. FIXED ASSETS A summary of changes in General Fixed Assets for the year is as follows: Bookmobile Furniture and Eguigment Balance July 1, 2001 $ 133,338 $ 1,765,599 Restatement, at cost, due to physical inventory Balance July 1, 2001 restated 137,989 1,824,215 Additions Balance $ $ Totals $ 1,898, ,962, $ During the year ended, the Library conducted an inventory of fixed assets for the first time. The beginning balance of fixed assets was changed to correct the differences as a result of the inventory.

14 11 NOTES TO FINANCIAL STATEMENTS Note 7. FUND BALANCE The Library receives numerous small gifts designated for support of programs and purchases of particular books and equipment. These programs and acquisitions are typically carried out within the next 1-2 years. Amounts unexpended at year-end are carried forward to subsequent periods as designated fund balance until exhausted or redesignated by the donors. The Board of Trustees has chosen to place reserves on other portions of fund balance, for amounts committed in fiscal year 2001 for purchases of goods or services that had not been received by June 30, 2001, and for significant future equipment outlays and unforeseen expenses. The following table summarizes the designated and reserved portions of Fund Balance as of : Designated Bookmobile Summer Reading program Culhane Clark Moser Furniture Gifts and memorials-books Foundation fundraising Youth Services general Program services Brio trains Subtotal Reserved Integrated Library System Strategic plan Reserve - Operations Subtotal Undesignated Ending Fund Balance 6/30/01 $ 876 7, ,140 3,256 2,805 6, ,694 12, $ 26, ,781 $ Note 8. AGREEMENT WITH THE CITY AND THE COUNTY The Agreement calls for the City and the County to provide facility usage rent-free, provide funds towards the mutual costs of operating the Library, and provide for the maintenance of the e:-..1:erior of the facilities. The Library is responsible for interior maintenance, utilities, and liability and contents insurance. The Agreement discusses various other routine administrative matters. The Agreement is reviewed and revised every five years. (Continued)

15 12 WILLIAMSBURG REGIONAL LIDRARY NOTES TO FINANCIAL STATEMENTS Note 8. AGREEMENT WITH THE CITY AND THE COUNTY (concluded) The Agreement was last revised on January 14, 1999 for fiscal years beginning on or after July 1, The new Agreement incorporated changes to personnel policies and compensation. In addition, responsibility for human resource and other administrative support services has been transferred from the City to the County. Note 9. LEASES The Library has various lease agreements for communication and office equipment. Rent expense under operating leases was $13,790. Minimum annual rentals under noncancellable operating leases are as follows: Year Total $ 13,318 13,318 1,109 $ 27JA,5 Note 10. COMMITMENT On June 28, 2001 the Library entered into an agreement with epixtech, inc. to upgrade the Catalog and Circulation System at a cost of $211,920. The Library has a commitment from the City and the County to fund the cost of the contract in fiscal year 2002.

16 SUPPLEMENTAL DATA

17 13 SCHEDULE OF EXPENDITURES Year Ended With Comparative Totals for Year Ended June 30, PERSONNEL Salaries $ 1,965,091 Wages 538,064 Benefits Total personnel $ MATERIALS Collection $ 588,048 Bindery 900 Total materials $ OPERATIONS Advertising $ 8,175 Audit 6,761 Building maintenance 63,516 Communications 57,105 Computer catalog services 33,393 Contractual services 71,948 Equipment acquisitions 198,704 Equipment services 4,736 Event expenses 46,406 Fiscal agent fee 10,905 Human resources administration fee 49,483 Insurance 19,250 Maintenance supplies 8,679 Miscellaneous 4,349 Postage 14,154 Printing 6,192 Programs 120,094 Staff development 3,929 Supplies 69,570 Travel and conference 31,184 Utilities 141,410 Vehicle services Total operations $ Total expenditures $ 4,652, $ 1,876, , $ $ 532, $ $ 3,789 4,405 19,860 59,455 31,943 56, ,230 4,771 53,947 10,463 46,069 19,439 7,293 3,248 13,917 6, ,197 2,002 68,176 17, , $ $ 4,