HomeMy Public PortalAbout2010 - MRRL Auditors ReportMISSOURI RIVER REGIONAL
IBRARY
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June 30, 2011
The Honorable Eric Struemph
His Honor the Mayor
City Hall, 320 E. McCarty
Jefferson City, MO 65101
Dear Mayor Struemph:
Enclosed is the 2010 Missouri River Regional Library audit report.
If you have any questions about the enclosed report, please feel free to contact me at any
time.
Sincerely,
Helen Rigdon
Director
Enclosure
Helen Rigdon
Director
• 0 * 0 • •
www.mrrl.org
Mailing Address
Osage County Library
Administrative Offices
Main Library
PO Box 89
209 Adams Street
214 Adams Street
1014 D Main Street, PO Box 349
Jefferson City, MO 65102-0089
Jefferson City, MO 65101
Jefferson City, MO 65101
Linn, MO 65051
573.634.6064
573.634.6064
573.634.2464
573.897.2951
Fax: 573.634.7028
Fax: 573.634.7028
Fax: 573.634.7028
Fax: 573.897.3815
TABI E OF'CONTENTS
PAGE
.. INDEPENDENT AUDITORS' -REPORT ......:.:.....:.......:....:. ...:.....:. .
L— 2
MANAGEMENT'S DISCUSSION 8c ANALYSIS. ..........................
3 - 9 -
FINANCIAL STATEMENTS:-
Statement -of Net Assets and Governmental Fund Balance Sheet........::.:......:...:
10 _
Statement. of Activities and Governmental. Fund Revenues; Expenditures;
and Changes in Fund Balance ..:...... :..:......
11
, ..:..
Notes to the Financial Statements .::.................:...:.. :...
12 - :25
REQUIRED SUPPLEMENTARY INFORMATION:
Statement_of Revenues; -Expenditures and Changes in Fund-..
Balance ' Budget,and Actual =General Fund .:.:............. .......:..
26 - 28
Notes to the Budgetary Comparison hiforination............ ............ ...
29
Schedule of Funding Progress..
Evers &'C o.m an CPA's L.L.C.
Certified Public Accountants and Consultants Elmer L. Evers
Jerome L. Kauffman
Richard E. Elliott
Dale A. Siebeneck.
Keith L. Taylor
Jo L. Moore
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees of _
Missouri River Regional Library
Jefferson City, Missouri:
We have audited the accompanying financial statements of the governmental activities, each major
fund and discretely .presented component unit of Missouri River Regional Library (the Library)
as of and for the year ended .December 31, 2010, which collectively comprise the Library's basic
financial statements- as listed in the - table of contents. These financial statements are the
responsibility of the Library's management. Our responsibility is to express opinions on -these
financial. statements based on our audit.
We 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 financial statements are free of material misstatement. Ari 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 basisfor our opinions.
In our opinion; the financial statements referred to above present fairly, in all material respects, the
respective financialposition of the governmental activities and the aggregate discretely presented
component units of the Library, as- of December 31, 2010, 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.
As described, in Note 10 to the government wide statement of net assets the Library capitalized
book inventory and recorded the related depreciation on their 2010 government wide statements of
activities.
520 Dix Road Jefferson City; Missouri 65109 573/635-0227 FAX 573/634-3764
Village Green Shopping Center • 1021 W. Buchanan Street, Ste. 10 i California, Missouri 65018: • 573/796-3210. • 'FAX 573/796-3452-
4571 Hwy. 54, Suite A Osage Beach, Missouri 65065 • 573%348-41,41 • . FAX 573/348-0989
Meiriber-&GNAffaliated Offices Worldwide..
MISSOURI:RIVERREGIONAL LIBRARY
Jefferson City, Missouri ,
MANAGEMENT'S DISCUSSION & ANALYSIS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2010
The discussion , and analysis 'of the .Missouri River Regional Library's (the, "Library") financial,
performanceprovides an overall review of the Library's financial activities for the "calendar. year
ended December 31 2010. The intent of this .discussion and analysis .is to look at .the Library's -
financial performance as a whole; readers should also review the basic. financial- statements to
enhance their understanding of the. Library's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for 2010 are as follows:
The Lilirary's liquid assets - of cash and investments..of $1,397,23-8 increasedover the
course of the year's operation by.$229,411 or 19.64 percent.
• Two, technology grants, a literacy -program grant and a community read program. grant
were award_ ed ,' to the library during 2010.. These grants were approved for'a total of
$26,397. ;
•' Aside from depreciating the book assets'for the first,time,-,2010 additions to fixed assets
_ were. limited :to technology . equipment. Approximately $40,200'- in computer
workstations, switches, a laptop training, lab, projectors -and software were - purchased
during the.year. Four. Early Literacy -computer workstations and the Laptop Training Lab .
included in the asset purchases were partially funded by $16,314 in grant proceeds.
•. .The --Library joined forces.with--eleven other Missouri Public Libraries to. form a. .
—consortium which pools:funds to provide e-book/downloadable audio access to patrons of
all the member libraries.
• The Missouri -River Regional Library -Foundation is included as a component unit of the:
Library for financial reporting purposes in 2010.
-- Overview of the Financial Statements . This annual report consists of , a series of financial. statements and notes to those statements.
These statements are prepared and organized so the reader can understand the Library as,..,a
financial_, whole or as, an entire operating entity. The statements then proceed to provide an
increasingly detailed look at the;Library's specific financial conditions.
The Library,.because it is a special-purpose government engaged in -a_ single .governmental.
program,.has elected to present the government -wide financial statements and the fund
financial statements combined:
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
MANAGEMENT'S DISCUSSION & ANALYSIS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 201 -0 -
Government -Wide Financial Statements
The government -wide Statement. of Net Assets and Statement of Activities provide information
about. the activities of. the whole_ Library,. presenting both an -aggregate view of .the :Library's
finances and a longer=term view of those assets: 'These two statements, shown -in- columnar
_ format, combined- with the governmental. funds- reports consolidate the. Library's net assets and
the changes in those assets. This change in assets is -'important because it le, lls the., reader whether,
for the Library :_as a whole; the financial position - of the .Library has 'improved or. diminished.,,,.
However, in -evaluating the overall. position , of 'the' Library, non-financial, information, such as
changes. in the Library's tax base and the condition of Library capital assets will- also need to be
evaluated.
Fund Financial Statements
A fund is' a grouping of related accounts that is used to maintain control over resources that have
been segregated, for. specific activities or -objectives: - The Library, like =other state . and local -
governments, uses: fund accounting to ensure and demonstrate -compliance: with finance related
legal requirements. The Library,uses governmental funds.
Governmental funds
_ Governmental -funds. are used to account . for essentially the same functions . reported-_ as
government activities in the government -wide financial statements. However, unlike the
government=wide financial-. statements, governmental fund financial statements focuson near- .
term inflows and outflows of spendable, resources, as well as on balances_ of spendable resources
available at the end of .the calendar. year, Such information may be useful in evaluating a
government"s near-term financing.requirements.
Because the focus of governmental funds is narrower than that of the.government-wide: financial
statements, it is useful to compare the information presented forgovernmental fiinds with similar
information' presented- for governmental activities in the government -wide financial statements.
By -doing so, readers may better understand the long-term impact of the government's near-term
financing -decisions. Both:' the governmental fund balance sheet and -the governmental fund
statement of revenues, expenditures, -and changes in fund -balances provide a reconciliationto'
facilitate this comparison between governmental fiends and governmental activities:
The Library maintains one governmental fund,'the general fund, which is considered a major
fund. ,Information is presented separately in the governmental fund, balance sheet 'and in 'the
governmental fund statement of revenues, expenditures, -'and.` changes in fund balances "for the
general fund:
The Library adopts an.annual appropriated"budget. for its general fund. A budgetary comparison ,.
statement has been provided for the egeneral fund -to demonstrate coimliance with this budget.
MISSOURI RIVER REGIONAL LIBRARY
Jefferson, City, Missouri
MANAGEMENT'S DISCUSSION & ANALYSIS
FOR THE CALENDAR" YEAR ENDED DECEMBER 31, 2010
`Notes to the Financ al Statements
,The- notes provide- additional information- that. is, essential to a full understanding-.of,the-.data
provided in the government-wide and-fund financial statements.
Other-Information
Iri addition .to: the basic .financial "statements and accompanying, notes, this report _'also presents -
-certain required supplementary•'information 'including" a =comparison of :the` actual results of .,
operations of the general fund to the general fund budget adopted_b ' e board: Also included is
information concernin the Librar 's ro ess in "fundm its commitment to rovide erasion
g Y p- g. p p
benefits-to its employees.
` The Missouri River Regional Library "Board of .Trustees. has elected to participate in- the Missouri
Local Government Employees Retirement System (LAGERS). " The Library's full time
employees -do riot" contribute to the .pension plan. The Library is required to .contribute at an:
actuarially determined'.Tate; -the .current rate .is 12.2% (general). of annual covered payroll.. The
-
contribution requirements of plan members, are determined by the governing body'of the Library:;,'
The contribution provisions of the political subdivision are..estabhshed by state-statute. _
Missouri River Regional Lilirary_as;a Whole'
` The: Statement of Net Assets presents the Library as a whole: Table--1 provides a summary of the,
Library's net assets for 201-0 compared to 2009.`
Table 1
Statement of Net' Assets ,
2010 2009
Assets
Current and Other
Assets $4,137,865- $3,72$,311
Capital Assets;-Net 1,608,854'. 1,252,216 `
Total Assets $5,746,71'9 - $4,980,527
Liabilities =
Current Liabilities $3;064,21.0 $2,796;193,
Long=Term Liabilities 188,659- 193;746
Total Liabilities $5,252,869 $2;989'1909
Net
Assets
Invested in Capital,
Assets, Net of
Related Debt
$1,608,854 $1,252,2116
•
Unrestricted 8.84 995 '738,402
Total Net Assets $2,493,849, $1,990,618....
5
-MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
MANAGEMENT'S DISCUSSION & ANALYSIS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2010
Missouri River Regional Library as: a Whole (Cont'.d.) _.
No portion of the Library's net assets represent resources that -are subject. to external restrictions
on how they may be used.
On a fund financial statement basis all unrestricted assets. are available for -use when designated
- in future operations. The Library -historically has paid for capital improvements and construction ' ,
projects from the available'urirestricted assets.
T0162,.8hows thechanges in net assets for the -year ended December 3'1, 2010 and .2009.
Table 2 .
Changes in Net Assets Fiscal Year 2010_
20.10 2009
Revenues .
Program Revenues.
Fees, Fines, Donations and Grants $.18776.0 $180,171,
General Revenues
Properly Taxes 2,8511724 2;794,759
Investment Income 9046 - 32,496
-7 Miscellaneous 10,188 8,754
Gain/(Loss) Disposal of Assets (13,037) (2,858)
Total Revenue . $3,045,681. $3,013,322
Exp enditures/Expenses.
Library Services $2,966,685 $3,142,448
Capital. Expenditures 18,726 18,9.45
Total.Expenses = . $2,985,1411 $3,161,393
Change in Net Assets 60,270 (148,071)
Net Assets, beginning of year 1,990,618 21138,6.89,
Prior Period Adjustment 442,961 : Net Assets, beginning of year, as restated 2,433,579 2,138,689
Net -Assets, end of year $2,493,849 $1,990,618
While several. revenue sources help to fund th6Library, property and other taxes is'the biggest
contributor, accounting 'for 93.63% of total' revenues. . The -.library's assessed valuation is
provided by subclasses of Real and Personal Property at this time. The tax levy -for the Osage
County Library District for 2010 was $..1728 .per $100 and for 2009 the approved. rate was
$.1728. The -tax levy for the City of Jefferson -Cole County Library District was $.1956per $100
for 2010, and $.1938 per $100 -for 2009. Charges for services such as overdue materials,
I photocopies; " etc. makeup. just 2.90%, of total revenues.. Investment. income decreased by 72%
from 2009.: " Donationand grant revenues increased from $91;245 in 2009 to $99,286 in: 2010.
— 6
MISSOURI RIVER -REGIONAL LIBRARY -
Jefferson City; Missouri
`MANAGEMENT'S DISCUSSION & ANALYSIS
- FOR THE.CALENDAR YEAR ENDED DECEMBER 31; 2010'
Missouri River Regional Library as a- Whole, (Cont'd)
,Salaries and, benefits -for library. staffing and 'administration'are by far the. Library's. largest,.
expense at $2,020,445 and comprise 69.26% of total expenditures. ;
Library, books - and; -materials, which 'includes the cost .,of ',periodicals, .electronic resources,
material processing and, database services is $361;051 or 12% of total expenses.
Library service expenses, Which -include programming, liookmobile service, electronic catalog
maintenance and staff training, is $201;479 or 6:7% of total, expenditures ' :
Current year"depreciation of the -Library's capital assets is $3.655185- or 12:2%0 of total .expenses.
=Total accumulated depreciation, increased td $5445,860-. or 77% of total depreciable capital
assets. , .The library's=entire book inventory�aiid mated "accumulated depreciation were added to
the financial'statements on December 31; 2010'foll6wing.a five year pricing. project:.
Operations and, maintenance for :building and -equipmentis $265,882. or 9.12%0 of- total'..
operations.
A total'.. $291,899 was capitalized:
from the operations expenditures:
Budgetary Highlights
_ 'The Library adopts an annual operating budget'for its general fund that is prepared according to
- _
--Missouri, State- Statutes. The calendar .year represented 'is , from- January 1, 2010 -through;
December 3J',101,0.:
During- the '.course of --the, year, � the library amended its general fund. _ budget.-- All
recommendations for a budget change :are presented by. the' Library's Administration � to -'the
-Board of Trustees. 'Thegeneral fund is.monitored closely; lookingfor:possible revenue -shortfalls -
or overspending by individual departments.
Original, budgeted revenues for- the-, general fund of $2;959,855 • were, adjusted by a total of
$73,995.. to ,account for.:" gift receipts, grant- revenue, unanticipated- non-resident .athlete' and -
entertainer .tax revenues, and additional miscellaneous =revenue.. .Final budget` amount was -
$3;033;850; and the actual revenue was ,$3;058- 57. The major factor contributing to.actuat�._
_ revenues being. more than budgeted_ revenues was= receipt of " re than' anticipated ,tax_ `revenue
and higher than. expected revenue._ from. the -annual book sale.
.Original_ budgeted- expenditures for the general fond of $2;959,855 .were adjusted, by a total of...
$73;995 .to account_ for, -grant- expenditures and programming and public information .expenses.
Ficial budget amount was $3;033,850; and the actual expenditures were $2;917,211,
:' _ 7
. MISSOURTRIVER REGIONAL LIBRARY: .
Jefferson City, Missouri
MANAGEMENT'S DISCUSSION & ANALYSIS
FOR THE CALENDAR. YEAR ENDED DECEMBER 31,2010
Capital Assets .
Table 3 shows a comparison of Capital Assets at -December 31; 2010 -and 2009.
Table 3
Capital Assets • .
2010 20 09..
Land - . $ 322095 $ 322,095
Building 1,9223818 1,922,818
Books 3,506,865 - -
Automation 491,927.-_- . 450,811.
Automobiles 242,832 242,832
Furniture, and Equipment 568,177• .569,452
Total Capital Assets- 7,054,714 3,508,008
Total Accumulated
Depreciation' (5,445,860) (2,255,792)
Net capital Assets $ 1,608,854.- $ 1,252;216
: As of December 31, 2010, the.Libtary's.investinentin capital assets amounted.to $1;608,854 (net.
of accumulated depreciation). Before depreciation,. there was, a net increase of $3,546,706 or
51 % during the fiscal year. This was due to the capitalization of the book inventory during 2010.
Debt Administration
The Library�had no outstanding indebtedness during 2010. ,
Economic Factors and: Next Fiscal, Year's Budget: -
• Net; growth in assessed valuation (including _new ' construction growth) for -.2011 is.
4pproximately.1.1% -for the City .of Jefferson -Cole County Library District. The. net
growth in_ assessed valuation for the Osage County Library District for 2011 is.
-.approximately 2.2% also:
I The -2011 budget was prepared using a tax. rate of $.1956 -per $100 valuation for. the City .
of Jefferson-Cole.County Library District and a rate of $.1728 per. $100 valuation for the
-Osage County Library District.
MISSOURI RIVER REGIONAL -LIBRARY
Jefferson City Missouri
-- .STATEMENT, ORNET ASSETS SAND: GOVERNMENTAL TUND-BALANCE SHEET
December 31; 2010
Statement of Net Assets
Adjustments
Primary.--
Component
General Fund
(Note 2) •
Government -
Unit
ASSETS
Cash and Invesfinents -
. 1,397;238.00=-
1;397;238.00:
19;947:00 -
Property Tax Receivable, net.
2,73,3,642.97
-
2,733,642:97
-
Interest Receivable
2;784.00
-
2,784.00,
-.
-` `Other:Assets
4;200.00
-
-4,200.00. -
-.
Land
-
322,095 OQ -
322;095.00
-
Other .Capital Assets; net of Accumulated -Depreciation
..-.1,286,759,00,.". ,
1;286,759.00
-- _ Total Assets
41137,864.97.7' ' . ;1,;608,854.00,
5,746,718.97. -.19,947.,.00''
.• 19,947.00,,
LIABILITIES
Accounts Payable
45,810:00
-
45,810,0.0.... -
-
Deferred Revenue3:,052;891:36
:`(34,491.47)
3,018;399:89:
;Compensated Absences.:
-
188,659.59
188;659.59
Total -Liabilities'
3,098,701.36
'154,16812. `
3,1252,869.48
FUND BALANCES/NET ASSETS
-
Fund -Balance:
Unreserved, Undesignated
1039;1.63.61
-:.(1,039,163.61)-
-
-
Total Fund Balances
1,039,163.6-1
(1,039;163 61)
-
-
Total Liabilities and Fund Balances
-4,137,864.97
' Net Assets:
Invested in Capital -"Assets
1,608;854.00 .',-.._-1,608,854.00
Unrestricted
884,995 49
884;995.49-
19,947:00
Total Net Assets`.: :
2;493,849.49: _
2,493,849:49:
19,947:00`- '
The accompanying notes are_an integral.part of
these financial statements.
1.0 .
'MISSOURI _ RIVER REGIONAL LIBRARY
Jefferson City Missouri' .
STATEMENT. OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES
AND CHANGES IN'
FUND BALANCE.
For the year ended December 31, 2010 _
Statement:ofActivities _
Adjustments
Primary.
C_ omponent
General Fund
(Note 3)', _
Government.
Unit
EXPENDITURES/EXPENSES:
Library Services
2,858"2.84.00
108 400.59
2,966,684.59.
Capital Expenditures
58,927:00.,
(40,201;0.0)
18,726.00
=
` Fouridahon Expenditures
-
-
-
10,609:00"
,Total Expenditures/Expenses;
2,917,211.00
-68;199.59
2,985,410.59 -
-10,609.00 ,
PROGRAM REVENUES:,;
` -
Charges for, Services -88,474.00
-
'.. , -
88,474.00
-
Dopations and Grants
99,286:00
- -
99,286.00
16,582:00': '
Net Program Expense:
=(2;797,650.59)
16,582.00 -
GENERAL REVENUES:
PropertyTaxes
2,851,462.61
.261.47
2,851;724.08. ,
=
Investment" Income
9;046.00 ,
:. -."
9,046.00.
;Miscellaneous
1.0,188.00.
: -
,':10,188.00 ' :
". 385.00 -
Gain (Loss)on Disposal- of Assets. -' .-:
-
(13,037.00)
...'= - ": (13,037.00)
- -
- Total General Revenues
2,870,696.61
(12;775.33)
2,857,921.08
408:00.
Excess of. Revenues over
-(under)Expenditures
141;245:61 -
` '- • (141;245.61)
Change in Net Assets =
- '
60,270.49 -,
' " . 60,270:49
6,381.00,
Fund Balance/Net-,Assets; Beginning of Year, ."
897,9,18.00
1;092,700,00
-1,990,618.00.
13,566.00
Prior Period Adjustment_;
-
442,961'.00 _
442,961.00.
-
Fund'Balanee; Beginning of"Yea r, as restated
897,,0J'8.00
1,535,661:00
2,433,579.00:
13;566.00
Fund Balance/Net Assets, End of Year. :
1,039,163.61.:
1,454,685.88
"2,493,849.49 :
19,947.00
The accompanying notes,' are -an integral, part, of these financial statements.
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO THE FINANCIAL STATEMENTS _
For The Year Ended December 31; 2010
NOTE 1- ORGANIZATION AND- SUMMARY ' OF • SIGNIFICANT 'ACCOUNTING
POLICIES: (Cont'd.)._.
Measurement Focus, -Basis of Accountingan" &Financial Statement Presentation (Cont'd.)
Under. the modified accrual basis - of accounting, revenues. are recognized in the accounting : .
period in which they; become- both measurable. -and - available: The term_ I available is defined as
:collectible within the current period or expected to be collected soon enough thereafter. to be
used to pay liabilities of the current period. For the Library, available means expected to be
received within sixty -days of year-end.
Expenditures are generally recognized under the modified accrual basis of accounting -when the
related, fund liability is incurred.
The -Library follows GASB Statement No. 33, Accounting and Financial Reporting for :Non- .
Exchange Transactions (GASB, 33), - which. establishes accounting and financial -reporting
standards for nonexchange firansactiohs involving financial or capital resources.
GASB 33 groups nonexchange transactions. into %the following .four classes,- based. upon their
principal characteristics: derived tax revenues, imposed nonexchange; revenues, governmental
mandated nonexchange transactions, and voluntary nonexchange transactions.
The Libraryrecognizes assets from -imposed nonexchange revenue transactions in the period- in
which an enforceable legal claim ;to the assets arses .or.in which the resources are received,
-whichever occurs first: Revenues are recognized in the period in which - the resources are
required to, be used or the first period that use is, permitted: For example; for property taxes, the - .
period for -which -they are levied. Resources received or recognized as receivable before the time
requirements are in are reported- as deferred. revenues. The Library's budget is based on the
previous: year's assessed- valuation and tax levies. Recording deferred tax. revenue _allows
recognition of the revenue in the period: forwhich• it was budgeted.
.Intergovernmental revenues, representing.grants, entitlements; donations and assistance received
from other, governmental units,. are generally: recognized .as revenues in the period in which all
eligibility requirements, as defined:by GASB 33, have been met. %Any.resources received before
eligibility requirements are met are reported as deferred revenues.
Charges for services, 'such -as. fines, book sale -revenues and photocopy revenues, in. -the
governmental funds, which are exchange transactions and are, therefore not .subject to the -
provisions of GASB 33; , are. recognized as revenues when received in cash because they are
generally not measurable until actually received.;
14
MISSOURI RIVER REGIONAL LIBRARY.
J City; Missouri
efferson ; � .
_ . = NOTES TO THE, FINANCIAL STATEMENTS
_ For T e' Year Ended December 31,"2010. _
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO THE FINANCIAL STATEMENTS
For. The Year Ended;Dece nber'31, 2010
NOTE 1- = :ORGANIZATION AND. SUMMARY OF -SIGNIFICANT ACCOUNTING
POLICIES: (Cont'd.)
Compensated Absences
Accumulated .paid time off -is accrued monthly. Employees accrue twenty days per. year during
the first five years of service, increasing to a maximum of twenty -eight -days after fifteen years of
employment. The maximum accrual allowed to be carried forward is sixty days. .
All, employees also receive six days per year"catastrophic eave with .unlimited accrual. There is
no payment of accrued catastrophic leave_ -upon termination;. thetefore. an accrual has not been
made in the financial statements.
The liability for compensated' absences is not recorded in the fan& financial statements since it-i"s
anticipated-that.the liability will not be liquidated.with currently available financial resources.
Accrued Liabilities and Long -Term Obligations
All payables, accrued liabilities and long-term' obligations are reported in the government -wide,
financial, statements.
In general, payable and -accrued liabilities that will be paid from governmental funds are reported
on the governmental. fund financial statements regardless of whether they will be liquidated with:
current financial , resources. However, special termination benefits that will ' be .- paid from
governmental funds are reported -as a. liability in—the fund- financial.statements. only to the extent.''
:that they will, be paid .with. current, expendable, 'available financial. resources., In general,
liabilities that mature or come due for payment during the fiscal year are considered to -have been
made with current available financial resources. 'Other long=term obligations that will bepaid
from governmental .funds are not recognized as'a liability. in the fund financial statements until
due.
-Subsequent Events
The Library evaluates` events and transactions -occurring subsequent to the date of the -financial
statements for matters -requiring recognition or disclosure in the financial- statements. The
accompanying -financial statements consider events through May 13, 2011,. which is the date the
financial statements were available to.be issued.
16:
MISS OURI �RIV ER. REGIONAL' LIBRARY
Jefferson. City; Missouri
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended December 31 2010 -
NOTE -.1.` ORGANIZATION AND . SUNINL4,RY OFA SIGNIFICANT ACCOUNTING
17
MISSOURIRIVER REGIONAL LIBRARY
-_ Jefferson City, Missouri
NOTES TO THE FINANCIAL STATEMENTS
For The, Year -Ended December 31, 2010
NOTE : 3 -- -RECONCILIATION OF. `:THE STATEMENT'. - OF -. -REVENUES
EXPENDITURES- ANDCHANGES -IN-----FUND BALANCES OF GOVERNMENTAL
FUNDS TO:THE.STATEMENT OF ACTIVITI-ES: ,
;
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES —
`' TOTAL GOVERNMENTAL FUND BALANCES...
$44124.6
Amounts reported forgovernmental activities in the
Statemeint°of Activities are different because: .
Capital"outlays are reported as_expenditures.iifthe_
governmental funds. < However, in the Stateinent.of
-= -.Activities; the cost of capital assets is allocated over, ,.
thi "estimated useful lives as depreciation expenses:
In the,current.period, these amounts are:
-Capital assetspurchases.... ...... $ 291;899
Depreciation expense.'... :. 365 185)
otal....... .:...................... ............ ...
(73,286)
Revenues .in the Statement of Activities that: do not Provide
current financial resources are not reported as revenues in
the -funds = de'ferre&.tax revenue::.. :. .........
260
" In the Statement of Activities; the loss or,gaiwon the
sale"or disposal-of•capital'assets is recognized: The",
_ =
= fundfinancial statements. recognize only the proceeds
= from` assets The amounts are, as follows:
Gain/(loss) on disposal of capital assets., ....... X13,037)
Total..:
(13,037)
Soine.expenses 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
Decrease in compensated'absences:.
5,087
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OF GOVERNMENTAL ACTIVITIES:... ............
60 270
18
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, "Missouri
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended December 31, 2010
NOTE 4 — DEPOSITS AND INVESTMENTS:
The Library's investments at December 31; 2010 consist of the following:
Fair Less Than "
Investment Type Value One Year
Repurchase agreements $1,173,199 - '11,173,199
CustodialCredit Risk_— For an.investment, custodial credit risk is'the risk'that, in the event of the
failure of the counterparty; the organization will not be _ able to recover the value of its
investments or collateral securities that are in: the possession of an outside party. Repurchase
agreements had a. bank" balance of $1,173,199 at December 31; 2010 and are not covered -by "
FDIC but are backed :by pledged securities: All of the organizations investments are held- by "the -
mvestmeni's counterparty, not in the name of the organization:
Investment Interest "Rate Risk — ,The Organization has no formal investment policy that limits
investment maturities as a means of managing its. exposure to fair value losses arising from,
increasing interest rates.' Maturities of investments held at December 31, 2010 are less than one '
year.
Investment Credit Risk — The Library. has no investment policy that limits. its investment choices
_ other than the limitation of state law as follows:
Missouri Statutes and legal opinions authorize the Library to invest in. -,certain types of
investments including, but ' not ' limited to, collateralized public. _ deposits (certificates of
deposit), U.S. Treasury and federal.agency securities, and repurchase agreements:
Collateral is required for demand -deposits and. certificates of -de The market value"
of the collateral must equal, at least .100% of- deposits notcovered by- federal deposit -
insurance. Securities underlying a -repurchase agreement must have_ a market value of at
least 100% of .the cost of: the. repurchase- agreement. Obligations pledged, Ao- secure
deposits are delivered to the bank's joint -custody account -at the FederalReserve Bank. -
Concentration of Investment _Credit Risk — The Library places no limit "on the amount it may
invest in any one issuer. At December 31, 2010, all of the Library's investments,were held at
one financial institution.
19
MISSOURI- RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO. THE, FINANCIAL STATEMENTS
For The Year Ended December 31, 2010 -
NOTE 4'= DEPOSITS AND INVESTMENTS: (Cont'd:)
Discretely Presented Component Unit At December 31, -,2010, the Missouri, River Regional
- Library.Foundation's,investment'and deposit balances were as follows: '
Deposits 19 947.
NOTE 5 — PROPERTY TAX REVENUE AND RECEIVABLES:
Property, taxes are levied by the Counties of Cole and Osage : each -March- 1, based on -property.
values. assessed as of the previous January L Property taxes are.considered,past due on -January I"-
follow
:--
following the --levy date, at which time the applicable property, is subject to lien. and the assessment
of penalties: and interest. Cole County and _Osage County bili and collect .property taxes on•behalf ' -, .
of the Library.
_ The property tax rates per $100 assessed valuation for 2009- -for each of the respective -taxing
districts were as follows; ' -
Osage County .$0.1728
City of Jefferson/Cole County $0.193.8
- The assessed valuation .for property -upon- which the fiscal 2009 levy was based was as follows:
Osage County, $ 180,604,387
City of-Jefferson/Cole County - 11294,015,087
Tax revenue -receivable .at December 31; 2010 on the fund' financial statements consist of the-.
following:
"Taxes Receivable &2,846)543
Less Allowance for Uncollectible. (112,900) -
Total 2.733,643.'
-NOTE 6 --LEASES:
The Library, located in Linn, Missouri, entered .into a -month-to-month lease ,with monthly rent -
payments of $1,500- for, facilities to conduct operations. .The original lease expired in. April 2005.
_ 'The lease- has been continuedon a month-to-month basis at the .agreement of both" parties at the
same rental rate. _
For The Year Ended December 31, 2010,
NOTE 6='LEASES:.(Cont'd.)
The Library-. located'- in Jefferson City, Missouri entered into a lease agreement with ' Weldon
Enterprises of Jefferson City, Inc., with monthly rent payments of $4,26.0 -for facilities to conduct .
operations. The lease -is for the initial term .of one year beginning September, i, 2006 and ending
August 31,.2007. There -is an automatic renewal clause for four additional.terms of one year. each.
At -the end of the automatic renewal terms, the lease is - renewable for. - two additional one-year
periods.
NOTE 7 —.RETIREMENT PLANS:
A. -Plan Description
The 'Missouri River Regional Library _participates in the, Missouri Local Government
Employees Retirement System. (LAGERS), an agent multiple -employer public - employee.
retirement system that "acts as a common investment and administrative 'agent - for. local .
government entities in Missouri.. LAGERS is a defined benefit pension plan which .provides ,
retirement, disability, and death benefits,to plan members and beneficiaries.
LAGERS was created and is governed by statute, section RSMo. 70.600 - 70.755..`As such; it
is thesystem's responsibility to administer the law in accordance with the expressed intent of
the General Assembly. The plan is qualified under the Internal Revenue Code Section 401a
and it is tax exempt. i
The Missouri Local Government Employees .Retirement System issues a" publicly. available
financial report that includes financial statements and required supplementary information.
'be�obtained, by writing to LAGERS, P.O. Box 1665; Jefferson. City, MO' .
That report .may .
65102 or by calling 1-800-447-4334.
B. Funding. Status
Full time employees. of the Missouri River Regional Library do not .contribute to. the. pension
- plan. r ..The June. 30`h statutorily' required .contribution rate is 12.2% (general) of annual
covered payroll. The contribution requirements of plan .members . are determined by the
governing body -of the political subdivision. The contribution provisions of the political_
subdivision are. established by state statute. .
MISSOURI RIVER REGIONAL LIBRARY.
Jefferson City, Missouri .
NOTES TO THE -FINANCIAL STATEMENTS
For The:Year Ended December 31, 2010 .
NOTE 7 - RETIREMENT PLANS: (Cont'd.) -
C. Annual Pension -Cost ,
_
-For the 2010 -plan year, the political subdivision's annual pension cost of $134,585 was equal
to the required and actual contributions. The required contribution was determined 'as part- of.
- the February 29, 2008 and February 28, 2009 annual actuarial valuation using the entry age
actuarial cost method. The .actuarial assumptions included (a) a `rate of return on the
investment of present and.future`assets 'of 7.5% per.year, compounded annually, (b) projected -
salary, increases of 4.0% per year.- compounded annually, attributable to. inflation, (c)
additional projected salary increases ranging -from 0.0% -to 6.0% per year, depending on -age
and division, attributable to seniority/merit, and'(d) pre -retirement mortality based on the RP -
2000 -Combined Healthy. -Table -set back 0., years for, men and 0 years for women -and (e) post
retirement mortality based oil the 1971: Group Annuity Mortality table. prof ected to 2000 set -
backone year for men and 7 years for women. The actuarial value of. assets was determined
using_ techniques that smooth the effects of short-term: volatility in the market value of
investments, over ' a five-year period. 'The unfunded actuarial accrued liability is being" .
_amortized as a level percentage of projected. payroll on a closed basis. The amortization
period as of February 29, "2008 .was, 24 years for: the general division. The amortization
period at February 28; 2009 was 26 years forthe general division.
Three -Year Trend Information
Fiscal Annual Percentage ' Net
Year Pension- of.APC Pension
Ending Cost LARD. Contributed Obli ation
06/30/08 131'065 100% 0
06/30/09 127,425 100% -0
06/30/10 .134,585 : 100%_
The following table summarizes the funding status of.the,latest actuarial valuation date:
Schedule of Funding Progress
Entry Age Unfunded
. Actuarial Actuarial Actuarial Accrued - Annual UAL 'as a . .
Valuation Value Accrued Liability Funded Covered Percentage of
Date, of Assets Liability (UAL) Ratio Payroll Covered Payroll
2/28/2010 $968,517 $ 1,534,748 $; 566,231 63%. $"1,133,160 .," 50%
22
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO THE FINANCIAL STATEMENTS
For The Year. Ended December 342010
NOTE 8 -RISK MANAGEMENT
The Library is exposed to -various risks of loss related to torts; theft of, damage -to, and destruction
of assets; errors and omissions; injuries to employees; aiid natural, disasters: -The Library purchases
commercial insurance for all 'risks of loss. Settled claims have not exceeded commercial insurance
coverage in- any of the past. three years.
-NOTE 9 =LONG-TERM LIABILITIES:
During the year, the.following changes occurred in long-term liabilities:
December31; December 31;:
2009 Additions Deletions '• . 20.10
Paid. Time .Off. T93 747 $ -0- ., 5 087 188 660
-NOTE 10 - PRIOR PERIOD ADJUSTMENT:
.According to GASB Statement No: 34, book inventory assets are required to be capitalized an .
reported in the government -wide statement of net assets and related depreciation reported as, an
expense in the government -wide statement of activities. The Library had, not capitalized -the book
inventory: in past years because its tracking systern recorded books at retaif value rather than book
value. The Library devised a system,where by the book purchases would be discounted by a
percentage' to arrive at an .•estimated book value for. the existing inventory and. future book,-.
purchases:
A five year pricing project for testing book inventory -purchases began in 2006. After five years of
testing and. discounting book --purchases; the book inventory was capitalized -as of December- 31;
2010. All book assets were.:given a, depreciable life of five years.. Annual book inventory additions .
were booked as follows..
Accumulated Net Book.
Cost_ • Depreciation' Value
.2010 1 251,698 $ 25,170 $ 226,528
2009 271;524 135,762 135,762
2008, 273,066 191;146 81-,920
.2007. 245,432 220,888 24,544
2006 -245,466 245,466 =0-
2005 and prior 2,21-9,679 2;219;679 -0—
Total- $ 3;506-,865 $ 3,038,111 $ 468,754
23.'
MISSOURI RIVER REGIONAL LIBRARY
JeffdOon City, Missouri
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31', 2010
--NOTE 12 - PROPERTY, PLANT AND EOUIPMENT:
Property, plant and equipment and accumulated depreciation by major class areas follows at
December 31,2010:
Beginning Balance
--Increases
Decreases _
Ending Balance
G6vernmental-type activities:.
Capital assets, not being depreciated:
Land - :.
$ 322,095
$ -..
$ _
$ 322,095
Total capital assets-, not -being .
depreciated
322,095
-
-
322,095'
_ Capital assets, being depreciated:
Building and Equipment
1;922,818
-
-
1,922,818
Book Inventory , - -
-
3,725,627.
218,762
3_,506;865 .
Automation,-
:_ 450,811
41,476
360-
- 491,927
Furniture and'Equipment -
569,452
.3,560.
4,835
568,177
Vehicles
242,832
- "
-
242,832. .
Total capital assets, being
'depreciated
3,185,913
3,770,663
2231957 '
6,732,619 .
Less accumulated depreciation for: '
_ B.uilding'and Equipment
1,275.,769
50;524
-
1,326,293 -
Book Inventory " .
-
3,243,836
205,725
3,038,111 ,
Automation
352,980
50,603
360 -
' 403,223
-Furniture and Equipment
48.2,189
24,058
4,835
501,412
Vehicles
144-854
31,967
-
176,821
Total accumulated depreciation,. "
2,255,792
3,400,988
'210,920
5,445,860.
- Total capital assets; being depreciated,
net
930,121
369,675
13,037
1,286,759 ".
Governmental -type; activities capital assets, .
net
$ 1,252,216
$ 369,675..
$ .. 13,037
$ 1,608,854"
Total depreciation. expense for 201,0 was $365,185.
25
'-REQUIRED SUPPLEMENTARY
INFORMATION
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES "IN "FUND BALANCE
BUDGET AND`ACTUAL-GENERAL"FUND
For the year ended December 31, 2010
26
Variance
Original
Final
Favorable .
Budget
Budget,
Actual -
(Unfavorable)
REVENUES -
Tax Revenue
2,796,903.00
2,796,903.00
2,840,241.61
43,338:61
_ - State Aid
46,452:00
561-132.00
-54,021:00 " `
(2;11.1.00)
- Athlete & Entertainers
-
11;221.00
11,221.00
-
Investment Income
35,000.00.
35,000.00
- 9;046.00
(25,954;.00)
Fines
46,000.00
46,000.00.
44,689.00 •
(1,311".00)
Grants
-_
26,397.00 _
26,397.00
-
Lost Books and Cards
7,000.00
7,000.00
6,356:00
(644.00) ..
- Photocopy Revenue
12,500.00
12,500.00..
13,438.00
938.00 _
Book Sale Revenue
13,000.00:
13,000.00
23,991,.00.
10,991:00 -
Miscellaneous .:
3,000.00
10,855:00
10,188.00
(667:00)
Gift Receipts
-
18,842.00
18,868.00
26.00. "
Total Revenues
2,959,855.00
3,033,850.00
3;058,456:61
24,606.61
EXPENDITURES "
Personnel Related:..
Administration
4491166.7.6 "
449,166.76
441,250.00
7,916.76
Network&.Automation Services
98,127.10
.98,127.10
91,423.00 r
6,704.10
Childrens .
154,759.80
154,759.80
159,196.00
(4,436.20)
Reference
239,688.00
239,688.00_
239,428.00
260.00
;Circulation
258,163:88
258,163.88 -
259,521;00
(1,357.12)
Outreach
55,434.96
55,434.96
55,955.00"
(520.04). ..
Technical Services
200,407.32 -
200,407.32
200,086.00
321.32 •
Osage Branch63,871.48
63,871.48,
60,059.00
3,812.4.8
Employee Relations
4,072:37
4,072.37
4,094:00 ' "
(21:63)
Tuition Benefit:-
1,500.00.
11500.00
-
1,500.00"
Payroll Benefits-Emplr FICA
116,250.87
116,250.87
113,371.00
2,879:87
Payroll Benefits -Retirement
147,394.60
,147,394.60
141,798.00. ..;
5,596.60
Payroll Benefits -Insurance
282,9.40.00
282,940.00
246;522.00 '
36,418.00
_ Payroll Benefits -Match Def Comp
1,500.00
1,500.00
5,020.00
(3,520.00)
Payroll Benefits -Cafeteria Plan Expense
-
-
295.00-
(295.00)
_ - Unemployment Expense"
2,427.00
(2,427.00)
Total Personnel Related
.2,073;277.14 _
2,073,277.14
-.2,020,445.00"
52,832.14
26
-MISSOURI RIVER REGIONAL LIBRARY
Jefferson. City, Missouri -
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL -GENERAL FUND
For.the year ended December 31, 2010 -
27
Variance
Original
Final
Favorable
:
Budget
Budget
Actual
(Unfavorable).
EXPENDITURES (Continued)
Books and Materials:
Adult Books -Non Fiction
48,000.00
. 48,000.00
46,716.00
1;284.00
Adult Books -Fiction
42,000.00
43,012.00
441296.00
(1,284.00)
Adult Books -Reference
30,000.00'
35;769.00 '
40,363.00.
(4,594.00)
- Adult Non-Book-Period/News20,000.00
21,423.00
21,853.00
(430.00)
Adult Non -Book -Audio
18,500.00
18;500.00
18,310.00
190.00
Adult Non -Book -Video
18,500.00
19,772.00'-, .
19,963.00
(191.00) .
- Adult Non -Book -Ref Online
27,000.00
27,000.00
25,557.00,
1,443.00
Downloadable Material
8,500.00
8,500.00.-
10,819.00.
(2,319.00) -
Adult Non-Book-Mircoforms
5,816.00 .
-5,816.00
5,065.00.
751.00
Teen Books
7-000.00
.9,087.00.
9,087.00
- _.
Juvenile BookNon Fiction
22,000.00
25;946.00,
27,395.00.
(1,449.00)1
Juvenile Book -Fiction
.23.1856..86
25,314.86
25,315.00
(0.14). -
Juvenile Book -Reference
2,500.00
2,500.00'
-1,051.00
1,440'00.,
Juvenile Non -Book -Periodica] .
21000.00
2,000.00
1,571.00
429.00
_ Juvenile Non-Book=Media
b-15,000.00
16,524.00
16,524.00
-
Collection Development Tools
2,000.00
2,000.00
2,395.00
(395.00)
Public Use Software
2,000.00•
2,000.00
425.00..
1,575.00
Filtering Software License
1,060.00 -
1,060.00
510.00.
550.00
Internet Access/Real Project
10,200.00
10,501.00
11,051.00
(550.00)
MOBIUS Fees
-.•10,000.00
10,946,06
7,955.00
2,991.00,
OCLC-Cataloging "
21,067.00
21,067.00
15,720.00
5,347.00
r Interlibrary Loan1,728.00
-
1,728:00 :
-2,048.00
(320.00)
Rebinding
500.00
500.00
-
500.00 ,
Collection Agency Fees
7,500.00
7,500.00
7,062.00 '
438.00 '
' Total Books -and Materials
346;727.86
366,465.86
361,051".00,
5,414.86
- Library Departmental Overhead: -
Bookmobile: OPER-BM -
12,000.00-
12,000.00
6,408.00
5,592.00
-Library Automation Contracts' ,
41,500.00
413500.00
403796.00
704.00
_ -Library Supplies
30,000.00
301118.00
28,740.00
1,378.00
Photocopy
-123500.00
12;500.00
11,239.00-
1;261.00. -
Programming -Adults
19,000.00.
39,804.00
42,416.00
(2,612.00)
Programming-Childrens .
10,500.00
14,650.00
14,650.60
-
- . Programming -Osage
3,700.00
3,700.0.0
3,330.00
370.00 .
- Programming -Teen
3,000.00
4,376.00
4,376.00
-
_Public Information
27,000.00
27,000.00
29,921.00
(2,921,00)
Recruitment - -
4,000.00 ,
. 4,000.00
3,948.00
52.00
Travel & Training
16,000.00
1.6,000.00 - .
15,525.00
475.00
Volunteer Recognition
200:00.
200.00 •
130.00 ,
70.00
Total Library Deptarmental Overhead
179;400.00.-
205848.00.
201,479.00
4,369.00
27
MISSOURI RIVER REGIONAL LIBRARY
Jefferson, City, Missouri
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -,-
BUDGET AND ACTUAL -GENERAL FUND
For the year ended December 31, 2010 "
'28
Variance,,
Original
Final_
-Favorable' ..
Budget
Budget
Actual
(Unfavorable)
Overhead:
- Bank Charges-
1,500.00-
1,500.00-
1,426.00
74.00
Custodial, t-. Branch' :-;
4;000.00
4,000.00 ,.
41966.00
(966.00).
Custodial Supplies
5;800.00 "
5;800.00
6,430.00 `
_ - (630.00) .
Delivery Service.
4,800.00
4,800.00..3,300.00
1,500.00 . .
Insurance -Business
40,000.00
40,000.00-
-28,490.00
11,510.00
Maintenance -Building.& Equipment
30,000.00
30,000.00
--26,782.00
31218.00.
Maintenance -Furniture & Equip
- q P =
10,000:00
10,000.00.
2,261.00
7,739.00 `
Office Automation Contracts
8,000.00
8,000:00
1,615.00
6,385.00"
Office Supplies
10;000.00.
10,000.00
9,282.00.
718.00 '
Postage
-500.00 21,500.00.
7,863.00 _ ,
13,637.00
Professional Services
12,000.00
12,000:00
10,192.00
1,808.00.
Rent -Osage
18-000.00-
18,000.00.
18,000.00
-
Rent` Weldon
51,650.00.
51,650.00
.50,400.00'
1,250.00 ;
= Telephone .
15,000.00
15,000.00
12,727.00
21273.00 .
Utilities
75;000.0.0
75,249.00
78,724.00
(3,475.00)
-Vehicle Operation/Passenger
4;700.00
- 4,700.00
3,424.00
1,276.00
Total Overhead
311,950.00
312,199:00
-,:265,882.00
46,317.00
Capital Expenditures:
Building & Building Equipment
2,000.00,
2,000.00
-
2,000.00 -
-. Contingency -
6,500.00
6,500.00
-
6,500.00:
Computer.Equipment & Software
40,000.00
41,163.00 -
42;569.00
(1,406.00)-.,
Office Furniture & Equipment
-
-.
308.00
(308.00)
Grant Expenses " :
-
26,397.00"
25,477.00.
920.00
-Total Capital Expenditures',
48,500.00
76,060.00
68,354.00 '.
7,706.00.
Total Expenditures
2,959,855.00
-3,033,850.00
2,917,21.1.00.
116,639.00'
' Excess of Revenues over -Expenditures
-
-
141,245.61
141,245.61 '
Fund Balance, Beginning of Year
897,918.00.
Fund Balance, End of Year
1,039,163.61
_
'28
- MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION.
For The Year Ended December 31,20 10
NOTE 1;—BUDGETARY BASIS OF ACCOUNTING:
Annual budgets are adopted on a basis consistent with accounting.principles generally -accepted in
the United -States of America for all governmental- fun ds. All annual appropriations lapse at fiscal
year end. Encumbrance accounting is employed in the governmental. funds. Encumbrances (e.g.,
purchase'orders, contracts). outstanding at year=end are reported as reservations of fund balances-and-
'do- not constitute expenditures or liabilities because the commitments will be re -appropriated and
honored, during the subsequent year: :Budget, amendments must be authorized by the. Board. of
Trustees.
The following procedures are followed in establishing the budgetary data reflected in the financial
statements:
_ a) Budget work sessions are conducted by management.
b) A preliminary budget is presented to the Finance Committee.
e) . Final: changes to the budget are made:_
d) BySeptember"1, the tax levy is set by the Board of Trustees and submitted to the Missouri .
State Auditor for approval.
Property tax revenues are. budgeted based upon the previous .year's assessed valuations and :
tax levies set by the Board of Trustees.
f) By October 15; the final budget proposal is presented to the Board of Trustees. ;
g) Budgetary control is- maintained at the -expenditure ,category level. Transfers between
categories as listed in the financial statements require Board. approval.
h) Budget amendments can be approved by the Board ,of Trustees during the year .on an as
needed basis. Budget amounts are as originally adopted;- or as amended by, the Board.
Individual amendments were not material in relation to the original appropriations that were
amended.
Expenditures may riot legally exceed budgeted appropriations of the fund level.
MISSOURI RIVER -REGIONAL LIBRARY
Jefferson City, Missouri
SCHEDULE OF FUNDING PROGRESS