HomeMy Public PortalAbout2007 - MRRL Auditors ReportTABLE OF CONTENTS
PAGE
INDEPENDENT-AUDITORS' REPORT .............. ..........:................................. ..
1=2
MANAGEMENT'S DISCUSSION &ANALYSIS
3 - 9 "
FINANCIAL STATEMENTS:
Statement.of Net Assets and Governmental Fund Balance -Sheet:: ........
lol.
Statement of Activities and Governmental Fund Revenues; *Expenditures, ,
and Changes in Fund Balance ............................... ..........................
l l � ,
Notes to the Financial- Statements........ :..:.:...............................................
Y2 - 24
REQUIRED SUPPLEMENTARY INFORMATION:
Statement of Revenues, Expenditure"§ and Changes in Fund
- Balance --Budget and Aetual - General
-25,727 ,
Notes to the. Budgetary Comparison Information.. .......... ..I........
28
Schedule of Funding Progress..... • ..... •, ....... . ................ .....
29
Evers & Coin 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, 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 Library's management. Our responsibility is. to express opinions, on these
financial statements based on bu' r 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. '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.
As discussed in -Note 10 to the. financial statements, :management has not recorded book inventory
-, assets in governmental" activities and, accordingly; has not recorded depreciation expense on those
assets. Accounting principles generally accepted in the United States. of America require that book: '
inventory assets be capitalized and depreciated, which would .increase the assets, net' assets,. and
expenses of the governmental activities. The amount by which this departure would affect the
assets, net assets; and expenses of the governmental- activities is not reasonably determinable.
In our opinion, because: of the effects of the matter discussed in the: preceding paragraph, the '
financial statements referred -to above do not 'present fairly, in conformity with accounting
principles- generally accepted in the United States of America, --the financial position of .the'
governmental activities of the Missouri River. Regional Library as of December 31, 2007, and the
changes in financial position thereof for the year, then ended. -.
520 Dix Road • ,Jefferson City, Missouri 65109 • 573/635-0227 FAX 573/634-3764 ;
:Village.Green Shopping Center • 1021 W. Buchanan. Street, Ste. _10 • California, Missouri 65018 573/796-3210 • .FAX -573/796-3452 =
4571 Hwy. 54; Suite A •, Osage Beach, Missouri 65065 • _573/348-4141 FAX'5t/348-0989
MemberalGNAfiliated Offices Worldwide
In addition, in our opinion, the financial statements referred'to above present fairly, in all material
respects, the respective financial position of each major fund and discretely presented component
unit, of the Missouri River. Regional Library, as of December 31,,2007' and.the respective changes
in financial. position for the : year then ended in conformity' with accounting principles generally
accepted in the United States of America:
The accompanying management'. s discussion. and analysis, budgetary comparison information and ;
schedule of funding .progress are, not a required part of the basic financial statements, but-_ are
supplementary information required by- 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 of measurement and presentation of the required
supplementary information. However, we did not audit the information_ and -express no opinion on
EVERS & COMPANY, CPA's, L.L.C.
Jefferson City, Missouri,
July 9, 2008
.. 2
- MISSOURI RIVER,REGIONAL LIBRARY .
Jefferson City, Missouri
MANAGEMENT'S DISCUSSION-& ANALYSIS
FOR THE CALENDAR YEAR ENDED DECEMBER"31, 2007 ,
The discussion and , analysis "of the. Missouri River Regional Library's (the- "Library") financial
performance provides an overall review of the Library's --financial activities. for the .calendar year
ended December 31, 2007. -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 2007 are as follows:
• The Library's liquid assets of cash and. investments of $1,174,632 decreased over the
course of the year's operation; by $209,128 or 17.80 percent.
• Renovations to the . main library were substantially completed, in .2007. Renovations
included new ' carpeting, - repainting, 'enlarging the .children's department into space
previously used for staff ' offices, opening a periodicals/quiet reading. room: in space'
previously used by technical services staff; relocation of,the reference .desk; opening of a
teen space in space previously occupied by staff, and the purchase of additional shelving .
and furniture -for the main floor, public computer center, periodicals room and children's
department.
• 'Emphasis was given -to obtaining the opinions of library patrons and staff in developing a
new long range . plan: The new plan was adopted , in November_ , i2007- by the Library
Board of Trustees'and will guide budget planning.for-2.009.
• The Missouri River Regional Library Foundation is included, -as a.component unit of the`.
Library for financial reporting purposes in 2007.
Overview of the Financial Statements
This annual report consists- of a series of financial statements and- notes to -those statements.
q - These statements are prepared and organized -so the reader can understand the Library as a
I' financial.. whole or as an entire -operating .entity.., The statements then proceed to provide . an "
increasingly detailed look -at the Libr-ary'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
f.. Jefferson City, Missouri
j� MANAGEMENT'S DISCUSSION &ANALYSIS
FOR,THE CALENDAR YEAR ENDED. DECEMBER 31, 2007
Government -Wide -Financial Statements
The government -wide. Statement. of -Net Assets and Statement of Activities provide information -
i.,.. about te" activities of the: whole Library, presenting both , an aggregate view of the. Library's
1 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 tells 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:inforrnati on such'as,
f changes in the Library's tax base and the condition of Library, capital assets -will also, need; to.`be
:.. evaluated.
f Fund -Financial Statements: 1 "
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,
ocal--governments, .uses fund" accouiiting fo ensure .and demonstrate -compliance with -finance related.
legal_ requirements. The Library uses governmental funds _ -
Govern`nental 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- focus `on near. -"
term inflows and outflows ofs endable resources, p as well as on balances of spendable resources.,-
. p .
available at the end of the calendar* year., Such information may be" useful -in evaluating a., .
1 government's near-term financing requirements.
Because: the focus of governmental funds is narrower than that of the government -wide financial
Olstatements, It is useful to; compare'the information presented for governmental funds 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
J
financing decisions. Both the governmental fund balance, sheet and the governmental fund
statement of revenues, ;expenditures, and changes in- fund balances provide a. reconciliation .to
facilitate this comparison between governmental funds 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 yin, fund balances for'4he' "
general fund:
The Library adopts an annual appropriated budget for its general fund. A budgetary comparison"
statement has been provided _for, the general fund to demonstrate.compliarice with this budget.
i. 4
- MISSOUR_ LRIVERREGIONAL"LIBRARY _
Jefferson City, Missouri
MANAGEMENT'S DISCUSSION & ANALYSIS "
FOR THE CALENDAR YEAR,ENDED DECEMBER 31, 2007
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 $1,749,159 and comprise 626/o of total expenditures.
Library materials and maintenance, which includes the cost of periodicals, electronic resources, -
material processing and database services is $377,619 or 13.35% ,of total expenses:
Current year depreciation of the Library's capital assets is ; $1-50,668 -or '5.3%0 of total expenses.
Total accumulated depreciation- increased to -$2;160,542 or 76.99%. of total depreciable capital
assets..
Operations., and maintenance fora building and "equipment is $290,195 or '10.26% of total
_ -operations. "
b A total of $371,758 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, 2007 through,,!
December 31, 2007:
r 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: The general fund is monitored closely, looking for possible revenue shortfalls,
or over spending by individual departments.
Original budgeted revenues for the -general fund of $2;725;830 were adjusted by a total of
$31.0,723 (including a transfer from reserves of $274,984), to account for gift'' receipts, additional .
_ book .sale revenues and, unanticipated ,non-resident athlete. and entertainer .tax revenues. Final
budget amount was. $2,798,575; acid the actual revenue was $2,7984575: The major factors
- contributing to- actual 'revenues being less- than_.budgeted revenues were the budgeted transfer
from"reserves, which offset the receipt of grant and interest revenue: above the amount budgeted. .
-Oriinal bud eted ex enditures' for the general .fund of $2,725,830 were adJjusted b ,a total -of.,
$310,723, mainly to account for main- library, _renovation. ekpenses. Final budget amount was ,
.$3,036,553;,and the actual expenditures were $3,034,230.
MISSOURI RIVER REGIONAL -LIBRARY
Jefferson City,, Missouri
MANAGEMENT'S. DISCUSSION & ANALYSIS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2007
Capital Assets
Table 3 shows a comparison.of Capital Assets at December 31, 2007 and 2006.
Table 3'
Capital Assets ..
2007 ". 2006
Land $ . 322,095 $. 322,095
r` Building .1,622,048 1,622,048
Construction in Progress 349,032 100,849
Automation 531,850 738,543'
- Automobiles -252,110. 252,110.'
Furniture and Equipment.' 558,434 492,943
Total Capital Assets 3,635,569 3;528,588
Total Accumulated
Depreciation. 2,160,541 2,274,650
Net capital Assets-' $ -1,475,028 $1,253,938
As of December 31; 2007, the Library's investment in capital assets amounted to $`1.,475,028 (net ..
:.of" accumulated: depreciation)... Before depreciation, there was a net, increase' of $371,758 or
10.6% during the fiscal =year. This: was 'due mainly to , the renovations to the main library and
additions to automation equipment -and furniture.
Debt Administration
The Library had no outstanding indebtedness'during 2007.
Economic Factors and Next Fiscal Year's Budget:
•. Net. growth in assessed valuation (including new construction growth) for 2007 is
approximately 3.1%o for :the City of Jefferson -Cole County Library District. The net
growth in assessed ' valuation for the Osage County . Library District .for: 2007 is
' approximately 2.6%.
e The'2008 budget was prepared using a tax rate of:$.19.13 per $.100 valuation for the City:"
of Jefferson -Cole County Library District and -a rate. of $.1702 per $100 -valuation for the
Osage County .Library District.
8
MISSOURI RIVER REGIONAL LIBRARY
-Jefferson .City, Missouri
MANAGEMENT'S DISCUSSION & ANALYSIS."
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006 .
Economic Factors and Next Fiscal' Year',s Budget: (Cont'd.) .
• In early 2008 theemain library renovation will be completed. .
• _ During 2008 special attention -will be, given to, expanding thecontent and number of
programs. offered to. the public: Attention will also be' focused on creating venues for the
community to offer their opinions. about what services the library"should be providing.
• In 2008 the library will continue to focus on expanding and adapting our services to meet', _
the needs of our patrons.
Contacting the-District's Financial Management
This financial discussion. "and- report is designed, to provide a general'overview. of the Library's,
finances for all those with ariinterest in the Library's. finances and to demonstrate .the Library's
accountability for the money it receives. -Questions concerning any of the information"provided".
in this report or requests for-additional financial information should be addressed to the Assistant
Director, for' Business and Finance, -Missouri River Regional Library, P.O:" Box, 89,214 Adams
St., Jefferson City- MO 651.02.
9
'-MISSOURI,RIVER REGIONAL LIBRARY.
Jefferson City, Missouri
STATEMENT. OFNET ASSETS AND GOVERNMENTAL FUND BALANCE SHEET
December 31, 2007
=
Statement of Net Assets
"
Adjustments .
Primary
: Component
-
General Fund
(Note 2), ;'
Government '
Unit
-, ASSETS
Cash, and Investments:
$' 1,174;632
$' -
$ 1,.174'6132
$' 9,339.
Property Tax Receivable; net
2,365;903 -
' -
-2,365,903
-
- Interest Receivable. .
2,428.
-
2,428..-
-
Other Assets
7,489
-
Land and Construction in Progress " =
-
671,127'671,
-27
Other Capital Assets; -net of Accumulated Depreciation
-
803,901
803,901
-
Total Assets-
$ " 3,550,452
A,475,028
51025,480
9,339
J ZIABIL=S
Accounts Payable
$ . ,.51,427
-
51,427-
-
Compensated Absences
-
151,799
151,799
-
Deferred Revenue
2,652,667_
(16-779)
2,635-,888',
-
Total -Liabilities
2,704,094,
:135,020
2,839,114
-
FUND BALANCES/NET ASSETS
- Fund Balance:.
Unreserved, Undesignated;-
846,358
(846;358)
,-
Total Fund Balances
8463358
_' - -. (846,35,8)
Total Liabilities and -Fund Balances
$ 3;550;452.
Net Assets: .
- Invested in Capital Assets
1,4.75,028..
1,475,028
-
-- .Unrestricted_.
711.338
711,338
9339 "
Total Net Assets -
$ 2,186,3-66 .
$ 2,186,366','
$ 9,339
The accompanying notes are an iritegral.parf 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,.2007
Statement;ofAetivities, -
Adjustments=
Primary
Component
General Fund -
(Note 3)
Government . "
Unit
EXPENDITURES/EXPENSES
Library Services
$ 2,652,956 $.
166,038
$ 2818,994.-
$ -
Capital Expenditures381,274
(371,757)
9,517
-
Toundation Expenditures
- -
-
-
4,663
Total Expenditures/Expen"ses
3,034,230-
(205,719)
2,828,511
4,663
PROGRAM REVENUES:
Charges for Services
83,472
-
83,472'
-.
- Donations and Grants
76,053
-
76;053 '
4,965.
Net Program Expense
(2,668,986)
4,965
GENERAL REVENUES:
Property Taxes
2,516,560
16,779
2,533,339
:. .
Investment Income113,859
-
113;859
-"38
Miscellaneous " "
8,631 .
-
8;631
216
Total General Revenues
`2,639,050.
16,779
2,655,829 _.
254.
Excess of Revenues over
(under) Expenditures-
(235,655)
235,655
Change in Net, Assets '
-
. (13,157)
•(13,157)
556
Fund Balance/Net Assets,_ Beginning of Year -
' 1,082,013
-1,117,510
2,199,523
8,784
_ Fund Balance/Net Assets, End of Year
$ 8461,358 $
1,340,008.
$ 2,186,366.
$ 9,339
The accompanying, notes ate an integral part of these financial statements.
• 11
MISSOURI RIVER REGIONAL;LIBRARY
Jefferson City, Missouri'
NOTES TO THE. FINANCIAL, STATEMENTS
For The Year Ended.December 31, 2007
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Oronization
The ,Missouri River Regional Library. (the. Library). was 'created on April 1, 1994 under the
authority of RSMo" 70.210 when the political subdivisions of the City of-Jefferson/Cole County
Library District and the Osage County,Library District signed a joint contract., .The Library is
headquartered in Jefferson City, Missouri, with a second Mi
on in Linn, is' as. well as .
additional coverage provided -by the Library's bookmobile.
-The Library's purpose is . to plan,' develop, operate and 'provide a library system for `the use and
benefit- of the residents of'the City of Jefferson/Cole County Library District and the Osage
— County. Library District, and .to fulfill and provide- to the. extent 'possible those -facilities,
programs, materials and services of a public library as are normally contemplated and authorized
' to be provided under the .laws of the State of Missouri.
Financial Reporting:Entity
The Library's -combined financial statements include the accounts of all Library operations. The
criteria for, including organizations :as component units within the Library's. reporting entity, as
set forth in Section 2100 'of GASB's _Codification of Governmental Accounting and Financial
Reporting Standards,' include whether:
* , the organization is legally separate (carr -sue and be. sued in"its.own name):
* the Library holds the corporate powers- of the organization
* the Libraryappoints a voting majority of the 6rgani2ati6n's board
* the Library is able to impose its will on the organization.
* the organization has the potential to imposea financial benefitiburden on the Library
* there is fiscal dependency bythe organization of the Missouri River Regional Library. .
Based on the aforementioned criteria; the Missouri River Regional .Library has one component
unit.
The Missouri River. Regional. Library Foundation- financial statements', (for. the. year ended
December 31, 2007) are included as a discretely presented component unit because the
economic resources received by the Foundation .are for the direct benefit of the Library.
- MISSOURI RIVER REGIONAL -LIBRARY
Jefferson City, Missouri
NOTES TO. THE FINANCIAL STATEMENTS
For The -Year Ended December 3.1,-2007
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT 'ACCOUNTING
POLICIES:" (Cont'd.)
Measurement Foeus, Basis of Accountine and 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 -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 fiind'hability is incurred. "
The Library follows GASB Statement No. 33, Accounting and Financial leporting for Non
- Exchange Transactions .(GASB 33), which, establishes accounting and. financial reporting-
T . standards for nonexchange transactions 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.Library recognizes assets from "imposed nonexchange revenue transactions in the period in
- . which anenforceable :legal claim to the assets. arises'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 met 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 for which 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.requiremeiits 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 asrevenues when received in cash because they, are
- generally not measurable until actually received.
14
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City,.Missouri
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended December, 31, 2007
NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT- ACCOUNTING
POLICIES: (Cont'd)
Estimates
The preparation of financial statements in accordance with accounting principles -generally
accepted in the United States . bf America ,requires management to:: make . estimates• ' and '
assumptions that affect certain ;reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
Cauital Assets
The accounting treatment for property, plant and equipment,(capital' assets) depends on whether
the assets are reported in the government -wide or fund financial -.statements.
Government -wide Statements .
In the government -wide ' fmancial statements capital assets_ are -valued -at historical cost, ` or
estimated. historical cost. if actual is unavailable, except for donated capital assets,.whichare
recorded at their estimated fair value at -the date of donation.
Depreciation of all exhaustible., capital assets -is' recorded as an expense in the .Statement of,
Activities, with 'accumulated depreciation reflected -in the Statement of Net Assets. Depreciation
Js provided over the .assets' estimated useful lives using the.atraight-line method of depreciation.
- The range•of estimated useful lives by type of assets is as follows:
Building and Equipment- 20745 years
Furniture -and Equipment- 5 - 20 years
Automation . -3—10,years
Vehicles 5 -15 years
The minimum capitalization threshold is any item with a total cost greater than $250:
The costs of normal maintenance and repairs that do' not add value to -the. assets or materially
extend the asset's life are not capitalized. The Library does not -possess any infrastructures. '
Fund Financial Statements
�- In • the fund financial statements; capital assets used in governmental - fund operations, are
accounted for as capital outlay expenditures of the governmental fund upon acquisition.
15
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO THE FINANCIAL STATEMENTS
-For, The.Year Ended December 31, 2007
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 'six da
ty�s. y
All employees also receive six days per year catastrophic 'leave with unlimited accrual.'.' There is
no payment' of accrued catastrophic leave upon termination; therefore an accrual. has not been
made iri the financial statements.
The liability for compensated absences is not recorded in -the fund financial statements since it is
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
T. 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 be paid
from governmental funds are not recognized as a liability in the fund -financial statements until .
T due.
16
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended December 31; 2007.
NOTE, I = ORGANIZATION -AND SUMMARY.OFSIGNIFICANT ACCOUNTING
POLICIES:, (Cont'd.)
Net Assets
Net assets represents the-4ifference between assets and liabilities. Net assets invested. in. capital,
assets; net of related debt consists of capital assets, net,of Accumulated depreciation, -reduced by
Y.
the outstanding -balances of any -borrowings used for the acquisition, construction,
improvbrilent of those. assets. Net assets are' reported as restricted when there are -lin-litAtions,
imposed on their use'either through'the enabling legislation adopted by the Library . or through
external, restrictions, imposed by creditors,- grantors or laws or regulations, of other- governments.
All other'net Assets are reported as unrestricted. The Librafy'applies restricted resources first
when an expense is incurred for purposes for which both restricted and unrestricted net -assets are
available.
NOTE .2 = RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE- STATEMENT OF NET ''ASSET S_:
Total Fund Balance govern inental: funds.'$ 846;358
. . ............. ................
Amounts reported for governmental activities in the
Statement of Net Assets are different because:
Capital, assets used in governmental activities are not
Financial resource's and therefore #enot reported in the
flinds. The cost of the assets is -$3,635,569 and the,
accumulated depreciation is $2,160,541 .................. .................... 1,475,028
Property taxes and other receivables will be' collected
this year, but are not available to pay for current -period
expenditures and therefore 'are deferred in 16,779 -
Long -term liabilities are not due and payable in the current
period and therefore are not.reported in'the funds. as follows:
Compensated'absences. (151,799)
NET ASSETS OF GOVERNMENTAL ACTIVITIES .......... : .............. $2,186366
17
-MISSOURI' RIVER REGIONAL_: LIBRARY,
Jefferson .City, Missouri; .
-NOTES.TO THE FINANCIAL STATEMENTS;
- 007.
For The Year'Ended December 31, 2
'
_NOTE 3 = : REGONCII;IATION OF : THE f STATEMENT' ° OF.,. REVENUES ,=
EXPENDITURES AND `"CHANGES IN FUNDBALANCES: OF GOVERNMENTAL-'::,:
EUIVDS TO THE' -STATEMENT OF ACTIVITIES:
-EXCESS OF REVENUES -OVER (UNDER) EXPENDITURES
,
TOTAL GOVERNMENTAL FUND,.BALANCES ..i:..:'....
$(235,655) '
;._wil
'. Amoufi&reported for governmental activities in the < -
_
Statement. of Activities are different because ;
Capital outlays`are reported as expenditures in the
governmental funds.:; However, in the Statement"of
Activities, .the cost of capital assets is all over
their estimated useful -.lives as depreciation expenses
the current period;: these amounts -are
-
Capital asset`s purchases: '374,758.
`.
ex
- ,' De reeiation pense .:: ...
_ . (150,66.
-
Total
' .221;090 y
Revenues: in the'Statement of Activities that do not provide...';
current financial. resources are;not reported as revenues ,in
the funds =deferred tax: revenue
.:1:6;779
'
Some expenses reported m the Statement of Activities
:
..
do Hoff require the use of currenti'financial resources
and therefore are'not reported as expenditures m
I '
governmental. funds_' activities consist of: .
'
inin- compensated.absences
15371
'
EXCESS OF REVENUES .OVER (UNDER); EXPENDITURES
'
OF GOVERNMENTAL ACTIVITI"ES .
13 157
_
s
,. ,
..
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri,
NOTES TO THE FINANCIAL STATEMENTS
For. The Year Ended December 31, 2007
NOTE 4 — DEPOSITS AND INVESTMENTS:
The Library's investments at December 31, 2007 consist of the following:
Fair . Less Than,
Investment Type • Value 'One Year
Repurchase agreements $1,248,871 $1,249,871 .
$1,248,871
1 248 871
Custodial Credit -Risk— For an investment, custodial. credit -tisk is_the risk that, in the event of the,
failure of the counterparty, the organization will not bei 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;248,871 at December 31, 2007' and are not covered by
FDIC. All' of the organizations investments are held by the investment'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, 2007 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 deposit. The market value
of the -collateral must equal `atleast- 100% of deposits not covered by federal -.deposit
insurance. Securities underlying a repurchase agreement must have a market value of at
least -10-0% . of. the. cost of, the "repurchase agreement:: Obligations pledged to secure
deposits are'deliwered'to the bank's joint -custody account at, the. Federal Reserve Bank.
Concentration of Investment Credit Risk — The Library places no limit on the amount it may
invest, in any one issuer. At December 31, 2007, all of the Library's investments were held at
one financial institution.
'19
MISSOURI RIVER REGIONAIL LIBRARY
Jefferson City, Missouri
NOTES TOTHE FINANCIAL STATEMENTS,
For The Year'Ended December 31,,2007 .
NOTE 4-' DEPOSITS AND INVESTMENTS: (Cont'd.)
Discretely Presented Component Unit.- At December 31, 2007) the Missouri. River Regional
Library Foundation's investment and deposit balances were as follows:
Deposits 9339
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 1: Property taxes are considered, past due on January 1
following the levy date at which time the applicable; property is subject to lien and penalties and
interest are 'assessed. Cole County and Osage County bill .and collect property taxes on behalf of .
the Library.
The property tax rates per, $100 assessed valuation for 2006 .for -each of the respective taxing , .
districts were as follows: .
Osage County 30.1702
-City of Jefferson/Cole County. $.0.1921
The assessed Valuation, for property upon which the fiscal 2006'levy was based was as follows:
Osage County $ .167,950,902
City. of Jefferson/Cole County' 1,167,840,956
- .Tax revenue receivable at December 31, 200.7 on the fund financial statements consist of the.
following:
Taxes Receivable $ 2,419,520 -
Less Allowance for Uncollectible (53,617
Total -.2.365.903 .
NOTE 6 - LEASE:
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 continued on a month-to-month, basis at the -agreement of both parties at the
same rental rate.
20
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO THE FINANCIAL STATEMENTS
For The -Year Ended December 3 L. 2007
NOTE 6 — LEASE: (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 $4,200 for facilities to conduct
operations. - The Tease is. for the initial term of one year beginning September 1-, 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 the. system's responsibility to
administer the law in accordance.with the expressedintent of the General Assembly: The
plan is qualified under the Internal Revenue Code Section 401 a and it is tax exempt.
The Missouri Local Government Employees Retirement".System issues a publicly; available
_financial report that includes financial, statements and required supplementary information..
That report maybe obtained by writing t6 LAGERS, P.O. Box 1665, Jefferson ;City, MO
651026-r by calling 1-800-447-4334.
B. Fundink Status
The 'Missouri River, Regional- Library's full-time employees'do not contribute to.the_�pensi'on
plan. The. political subdivision'is required to .contribute at an actuarially determined rate; the.
current rate is'11.7%0 (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..
21
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri "
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended December 31, 2007
NOTE 7 -.RETIREMENT PLANS: (Cont'd.)
C-. Annual Pension Cost
For the 2007 plan year, the political subdivision's annual pension. cost of $122;878 was equal
to. the required and actual contributions. The required contribution was determined as part of
: the February 28, 2005 and/,or February 28, 2006 annual actuarial valuation using the,entry age
actuarial' cost method'. The actuarial assumptions as of February'. 28, 2007_ 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, 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 on the 1971 Group, Annuity Mortality tableprojected to
2000 -,set back one 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 inthe market
value of :investments over •"a, five-year period. The unfended actuarial accrued liability is "
being amortized as a -level percentage of projected payroll on' a .closed.. basis. The '
amortization period at February 28; 2007 was 25 years.
Three -Year Trend Information
Fiscal Annual Percentage-. Nei.
Year Pension - . of APC . Pension
Ending - Cost (ARC)Contributed Obli ation
.06/30/05 112,887 100% -0-
06/30/06 123,022 100% a -0-
06/30/07 122,878 -100% -0- _
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; and 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.
MISSOURI RIVER REGIONAL LIBRARY .
Jefferson City, Missouri -
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended December, 31, 2007
MISSOURI.RIVER REGIONAL LIBRARY
Jefferson City; Missouri
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2007
NOTE 12 -. PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment and accumulated depreciation by major class are as"follows at
December 31, 2007:
_
Beginning Balance
Increases
Decreases
Ending Balance
Governmental -type activities:
Capital.assets, not being depreciated:
Land $
322,095'
$ ". -
$ - $
;. 322,095.
Construction in Progress -
100,849'
248,183
-
349,032-,,
Total capital assets, not being -
depreciated
422,944
248,183
-
671,127
Capital assets, being depreciated:
Building and Equipment .
1,622,048
-
-
1;622,048
Automation
738,543
58,084
264,777
531,850
Furniture and Equipment
492,943
65;491
-
558,434 "
Vehicles
252,110
-
-
252,110
.. Total capital assets, being
- . depreciated
3,105,644.
123,575
'264,777
2,964,442..
Less accumulated depreciation for -
Building and Equipment
1,142,241
41,948
-
1,184,189
`Automation -
649,090
55,563264;777
4 39,876 .
Furniture and Equipment
436,541,
17,539.
-
454;080
Vehicles
46;778
35;618
-
82,396
Total accumulated depreciation
2,274,650
150,668
264,777
12,160,541 . "
Total capital assets, being depreciated,
net
830,994
(27;093).
-
803,901`
Governmental -type activities capital assets,
net .. $
11253,938.
$ 221,090
$ - '.. $.
1,475,028
Total"depreciation.ezpense for 2007 was $150,668.42., .-
24
"MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL -GENERA_ L FUND •
For the year ended December 31, 2007
25
_
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES.
Tax Revenue
$ :- -2,537,288
$ 2,545,459
$' 2,516,560
$ (28,899)
State Aid
35,042.
35;042
40,747
5,705
Investment Income , -
80,000
80,000
1,13,859
33,859
Fines
.40,000
40,000
43,735
3,735
Grants
_
_
12,536.
12,536
Lost Books and'Cards .-..
-
- -
8,655
8,655
Photocopy Revenue
12;500 -
12,500
12,406
(94)
Book Sale.Revenue
13,000
18,000 ,
18,616
676
Miscellaneous
8,000
8,000
8,631
631
.'Gift Receipts.
- _ -.
- 22,568
:22,770-' -
: 202-
Transfer from Reserves
-
274,984
-
(274,984)
Total Revenues
$ 2,725,830
3,036,553
2,798,575.
(237,978)
EXPENDITURES
Personnel Related:
• Administration
347;260
3471-260
328,453
18,807
..Network. & Automation Services
90,263
00,263
89,936.
327
Childrens
143,502
.1431502
143,671
(169)
- • Reference
212,528
; 212,528
206,505.
6,023 "
Circulation
221,598
' "221,598
216,591
5,007
Outreach
.88,443
88,443
88,443 _
-
Technical Services
176,720
176,720
179,384
(2,664)
Osage Branch
61,311
61,311
64,136
(2,825) "
Employee Relations
4,250 "
4,250
2,788
1,462
Payroll Benefits-Emplr FICA
102,634
102,634
101;841
- 793
Payroll Benefits -Retirement
132,697
132,697
126,246.
. 6,451
Payroll Benefits -Insurance
179,021
179,021
186,118
(7,097)
Payroll Benefits -Accrued PTO-
_
14,135
(14,135)
Unemployment -Expense
912
(912)
Total PersonnelRelated
1,760,227-
1,760,227
1,749,159
11,068
25
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., 2007
26'
Variance :- ,
Original
Final.
' ' Favorable
Budget;
Budget
Actual
(Unfavorable)
EXPENDITURES "(Continued)
_
Books "and Materials:
Adult Books -Non Fiction
52,500
52,000
51,105
895
.Adult. Books -Fiction
. 47,000
45,300
.44,606
694 '
Adult Books -Reference
40,529.
42,979
42,982
(3).
Adult Non-Book-Period/News
23,000
23;00021,354
1,646
Adult Non -Book -Audio
30,000
137,000
37,518
(518)
Adult Non=Book=Viddo -
21,000
21,000
22,822
(1,822)
Adult Non -Book -Ref Online..'
30,000
27,550
-'25,449
2,101 -
Adult Non-Book-Mircoforms
8,866
8,866
5,042
-3;824•
Teen Books
7,000
7,500.
7;842
(342)
Juvenile Book -Non Fiction
24,000
24,000
25,806:
(1,806)
Juvenile Book -Fiction
26,000
29,670
-28,043
1,627
Juvenile Book -Reference
2,000.
2,000-
1,936
64
JuvenileNon-Book-Periodical-•
1,100_
1,100
892
208
Juvenile Non -Book -Media
16,000
16,000 ..
14,920'.
1,080
. Public Use Software
2,000.
`2;000
639
1,361_
Filtering Software License -
500
500
480
20
Internet Access/Real Project
10,200:
'10,200
9,746
454
MOBIUS Fees
8,000
8,000 "
9,082
(1,082)
- . OCLC-Cataloging
22,635,
22,635
18,874
-3,76,1
Interlibrary Loan
1,737
1,737
1,733
4
Rebinding -
500 -
500 -,
-
500
Collection Agency Fees
5,760
5,760
6,748. "
(988)'
Total Books.and Materials ..
380,327 '
389,297
377,619
11,698
Library Departmental Overhead:
Bookmobile: OPER-BM
8,000.
8,000
14,182
(6,182)
- Library Automation Contracts
41,142
41,142
37,487_.
3,655
Library Supplies ..
25,554
29,954
50,274
(20,320) ,
Photocopy. •_
10,000. -
10,000
10,174
(174)
Programming -Adults
24,000
44,985
49,464
(4,479)
Programming-Childrens'
13,550
13,550
14,042
(492)
Programming -Osage
4,400,
•4,400
4,042 .-
358.'
Programming -Teen
21500.
23500.1-.2;567
(67)
Public Information
30,000
30,000
29,995
5
Recruitment ;
2,000.
2,000
- 5,442
Travel &Associations
17,500. ..
17,500
18,242
(742)
Volunteer Recognition.
200
200
162.
38
Total Library Deptarmental Overhead
178,846
204,231
236,073
(3,1,842)
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, 2007
"Variance .
Original
Final
Favorable
Budget
Budget
" Actual
(Unfavorable)
Overhead:
Bank Charges
1',200
-1,200
11302 -
(102) '
.Consultant -Building Fund. '.'
-
_
458
(458)'
Custodial Contract: Branch
4,000
4,000
3,761
239 "
Custodial Supplies
5,000
5,000"-
4;244
756
Delivery Seryice
_ 4,500
.4,500
4,535
(35)
Insurance -Business
45;000
45,000"
38,593
6,407,
Maintenance -Building & Equipment
27,000
. . 27,000
30,808
(3,808)
Maintenance-Furniture''&Equip
11;800"-
.11,800
11,166
634' .
Office Automation Contracts
10,50.0
- 1.0,500
9,322:
1,178 -
Office Supplies
10,500
10,500
7,786
2,714 '.
Postage"
20,100
20,100
16,687
3,413 ' ;
-Professional Services
8,500
8,500
,. 4,468
4,032 ` .
Rent -Osage
18,000
18,000
18,000,
Rent* Weldon ,
50;650
50,650
50,400
250
Telephone
12,500
'12,700
.14,008
(1,308)
Utilities
69,000
69,000
703751
(1,751)
Vehicle Opefation/Passenger
4,500
4,500
3,816
684 -
Total Overhead302,750..
302,950
290,105
12845 -1
Capital Expenditures:
,
Computer Equipment & Software
89,013
89;613
86200
3,413
Library Furniture & Equipment. "
11,667
39,052
46,642
(7,590)
Office Furnifure'& Equipment"- -
2,000
2,000
249 ..
1,751
Main Library Renovation
-
248,183
2.48,183
-
Yehicles &Equipment
1,000
:1,000
-"
1,000
Total Capital Expenditures -
103,680
379,848
381-,274.
(1•,426)
Total Expenditures"_
2,725,830
3,036,553 '
3,034,230
2;323
Excess of Revenues over Expenditures
" $ -
$
-','(235,655)
$ (235,655)
Fund Balance, Beginning of Year
1,082;013
-Fund Balance, End of Year
$ 846,358.
27•
MISSOURI RIVER REGIONAL LIBRARY
Jefferson City, Missouri
NOTES TO THE REQUIRED, SUPPLEMENTARY INFORMATION
For The Y.ear.Ended December 31; 2007
NOTE 1— BUDGETARY BASIS OF ACCOUNTING:
Annual budgets are.adopted on a basis consistent with accounting principles generally accepted in
the United States of Ainerica for all governmental funds: 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.
c) Final changes to ,the budget .are made. '
= d) By -September 1, the tax .levy is set by the Board of Trustees and submitted to .the Missouri
State Auditor for approval.
e) 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 -not- legally exceed budgeted appropriations at the fund -level.
MISSOURI RIVER REGIONAL LIBRARY
Jefferson 'City; Missouri'
NOTES TO THE REQUIRED- SUPPLEMENTARY INFORMATION
For The Year. -Ended December 31, 2007
Schedule of Funding Progress
The following required supplementary information -relates to the Missouri River Regional Library's,
participation in Missouri LAGERS, an agent multiple -employer public retirement system..
Schedule of Fti nding Progress
[(b-a)/c]
(b) (6-a) UAL as a
(a) Entry Age Unfunded. (c) Percentage
Actuarial Actuarial ' Actuarial Accrued - (a/b) Annual of
Valuation 'Value Accrued Liability Funded.' Covered Covered
Date 'of Assets _ Liability (UAL) Ratio Payroll- Payroll
02/28/05 , - -.-284,521. 651,836. 367,315 44% 851,894. 43.% .
02/28/06 422,523. '884,943 462,420 48% '1,0 1. 3,040 4.6%
02/29/07 568,270 1,003,198 434,928 57% 1,006,338 43%
Note:'- The .above assets and actuarial'acci ued liability do not -include the assets and present value of benefits
_associated with the Benefit Reserve Fund and the Casualty Reserve Fund. The actuarial assumptions were
changed in conjunction _with the February. 28, 2006, annual actuarial valuations. For a complete description
of the actuarial assumptions used in the annual valuations, please contact the LAGERS office in Jefferson
29