FINDLAY-HANCOCK COUNTY PUBLIC LIBRARY - Ohio Auditor

FINDLAY-HANCOCK COUNTY PUBLIC LIBRARYHANCOCK COUNTYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016(Continued)Basis of AccountingThese financial statements follow the accounting basis permitted by the financial reporting provisions ofOhio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 (D). This basis issimilar to the cash receipts and disbursements accounting basis. The Board recognizes receipts whenreceived in cash rather than when earned, and recognizes disbursements when paid rather than when aliability is incurred. Budgetary presentations report budgetary expenditures when a commitment is made(i.e., when an encumbrance is approved).These statements include adequate disclosure of material matters, as the financial reporting provisions ofOhio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 (D) permit.Budgetary ProcessThe Board must annually approve appropriation measures and subsequent amendments. Appropriationslapse at year end. Budgetary expenditures may not exceed appropriations at the fund, function, andobject level of control.A summary of 2016 budgetary activity appears in Note 3.Deposits and InvestmentsThe Library’s accounting basis includes investments as assets.This basis does not recorddisbursements for investment purchases or receipts for investment sales. This basis records gains orlosses at the time of sale as receipts or disbursements, respectively.Investment in STAR Ohio is measured at the net asset value (NAV) per share provided by STAR Ohio.The NAV per share is calculated on an amortized cost basis that provides an NAV per share thatapproximates fair value.Capital AssetsThe Library records disbursements for acquisitions of property, plant, and equipment when paid. Theaccompanying financial statements do not report these items as assets.Accumulated LeaveIn certain circumstances, such as upon leaving employment, employees are entitled to cash payments forunused leave. The financial statements do not include a liability for unpaid leave.Fund BalanceFund balance is divided into five classifications based primarily on the extent to which the Library mustobserve constraints imposed upon the use of its governmental-fund resources. The classifications are asfollows:Nonspendable The Library classifies assets as nonspendable when legally or contractuallyrequired to maintain the amounts intact.Restricted Fund balance is restricted when constraints placed on the use of resources are eitherexternally imposed by creditors (such as through debt covenants), grantors, contributors, or laws orregulations of other governments; or is imposed by law through constitutional provisions.5

FINDLAY-HANCOCK COUNTY PUBLIC LIBRARYHANCOCK COUNTYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016(Continued)Committed The Board of Trustees can commit amounts via formal action (resolution). The Librarymust adhere to these commitments unless the Board amends the resolution. Committed fundbalance also incorporates contractual obligations to the extent that existing resources in the fundhave been specifically committed to satisfy contractual requirements.Assigned Assigned fund balances are intended for specific purposes but do not meet the criteriato be classified as restricted or committed. Governmental funds other than the General Fund reportall fund balances as assigned unless they are restricted or committed. In the General Fund,assigned amounts represent intended uses established by the Library Board or a Library officialdelegated that authority by resolution, or by State Statute.Unassigned Unassigned fund balance is the residual classification for the General Fund andincludes amounts not included in the other classifications. In other governmental funds, theunassigned classification is used only to report a deficit balance.The Library applies restricted resources first when expenditures are incurred for purposes for which eitherrestricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, withinunrestricted fund balance, committed amounts are reduced first followed by assigned, and thenunassigned amounts when expenditures are incurred for purposes for which amounts in any of theunrestricted fund balance classifications could be used.Note 3 – Budgetary ActivityBudgetary activity for the year ending December 31, 2016 follows:Fund TypeGeneralCapital ProjectsPermanentTotal2016 Budgeted vs. Actual ReceiptsBudgetedActualReceiptsReceipts 3,000,643 2,951,797515,000515,00033 3,515,646 3,466,800Variance( 48,846)( 48,846)2016 Budgeted vs. Actual Budgetary Basis anceFund TypeAuthorityGeneral 4,361,000 3,405,901 955,099Special Revenue50,00050,000Permanent5050Total 4,411,050 3,405,901 1,005,149Note 4 – Deposits and InvestmentsThe Library maintains a deposit and investments pool all funds use. The Ohio Revised Code prescribesallowable deposits and investments. The carrying amount of deposits and investments at December 31was as follows:6

FINDLAY-HANCOCK COUNTY PUBLIC LIBRARYHANCOCK COUNTYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016(Continued)Demand depositsCertificates of depositOther time deposits (savings and NOW accounts)Total depositsSTAR OhioTotal deposits and investments2016 76,7971,432,000365,4091,874,206500,865 2,375,071DepositsDeposits are insured by the Federal Depository Insurance Corporation or collateralized by the financialinstitution’s public entity deposit pool.InvestmentsInvestments in STAR Ohio are not evidenced by securities that exist in physical or book-entry form.Cash on HandAt year end, the Library had 200 in undeposited cash on hand which is included on the financialstatements of the Library as part of “Fund Cash Balances, December 31”.Note 5 – Grants in Aid and TaxesGrants in AidThe primary source of revenue for Ohio public libraries is the Public Library Fund (PLF). The Stateallocates PLF to each county based on the total tax revenue credited to the State’s general revenue fundduring the preceding month using the statutory allocation method. Estimated entitlement figures wereissued to County Auditors. The actual current year entitlements were computed in December of thecurrent year. The difference between the estimate and actual will be adjusted evenly in the PLFdistributions made from January-June of the subsequent year.Property TaxesReal property taxes become a lien on January 1 preceding the October 1 date for which the taxingauthority of the subdivision to whose jurisdiction the Library is subject adopts rates. The StateDepartment of Taxation, Division of Tax Equalization, adjusts these rates for inflation. Property taxes arealso reduced for applicable homestead and rollback deductions. The financial statements includehomestead and rollback amounts the State pays as Intergovernmental Receipts. Payments are due tothe County by December 31. If the property owner elects to pay semiannually, the first half is dueDecember 31. The second half payment is due the following June 20.Public utilities are also taxed on personal and real property located within the taxing district.The County is responsible for assessing property, and for billing, collecting, and distributing all propertytaxes on behalf of the Library.7

FINDLAY-HANCOCK COUNTY PUBLIC LIBRARYHANCOCK COUNTYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016(Continued)Note 6 – Interfund TransactionsInterfund transfers for the year ended December 31, 2016, consisted of the following, as reported on thefinancial statements:Transfers from the General Fund to:Buidling and Repair FundVehcile FundTotal 500,00015,000 515,000Transfers are used to (1) move revenues from the fund that statute or budget required to collect them tothe fund that statute or budget require to expend them, (2) move receipts restricted to debt service fromthe funds collecting the receipts to the debt service payments become due, and (3) use unrestrictedrevenues collected in the general fund to finance various programs accounted for in other funds inaccordance with budgetary authorizations.Note 7 – Risk ManagementWorkers’ Compensation coverage is provided by the State of Ohio. The Library pays the State Workers’Compensation System a premium based on a rate per 100 of salaries. This rate is calculated based onaccident history and administrative costs (if material).Commercial InsuranceThe Library has obtained commercial insurance for the following risks: Comprehensive property and general liability;Vehicles; andErrors and omissions.Note 8 – Defined Benefit Pension PlanOhio Public Employees Retirement SystemThe Library’s employees belong to the Ohio Public Employees Retirement System (OPERS). OPERS isa cost-sharing, multiple-employer plan. The Ohio Revised Code prescribes this plan’s benefits, whichinclude postretirement healthcare and survivor and disability benefits.The Ohio Revised Code also prescribes contribution rates. OPERS members contributed 10%, of theirgross salaries and the Library contributed an amount equaling 14%, of participants’ gross salaries. TheLibrary has paid all contributions required through December 31, 2016.Note 9 – Postemployment BenefitsOPERS offers cost-sharing, multiple-employer defined benefit postemployment plans, which includemultiple health care plans including medical coverage, prescription drug coverage, deposits to a HealthReimbursement Arrangement and Medicare Part B premium reimbursements, to qualifying benefitrecipients of both the traditional pension and the combined plans. OPERS contributes 2 percent of theemployer contribution to fund these benefits.8

FINDLAY-HANCOCK COUNTY PUBLIC LIBRARYHANCOCK COUNTYCOMBINED STATEMENT OF RECEIPTS, DISBURSEMENTSAND CHANGES IN FUND BALANCES (CASH BASIS)ALL GOVERNMENTAL FUND TYPESFOR THE YEAR ENDED DECEMBER 31, 2015SpecialRevenueGeneralCash ReceiptsProperty and Other Local TaxesPublic LibraryIntergovernmentalPatrons Fines and FeesContributions, Gifts and DonationsEarnings on InvestmentsMiscellaneous 737,6162,083,41124,22079,57431,2173,91652,807Total Cash nly) 737,6162,083,41124,22079,574133,6013,91952,807 101,884 5003,012,761101,884500Cash DisbursementsCurrent:Library Services:Public Services and ProgramsSupport Services:Business AdministrationCapital 3,952Total Cash Disbursements2,838,44635,2422,873,688Excess of Receipts Over Disbursements174,31566,642Other Financing Receipts (Disbursements)Transfers InTransfers Out(15,000)Total Other Financing Receipts (Disbursements)(15,000)Net Change in Fund Cash und Cash Balances, January 1Fund Cash Balances, December dFund Cash Balances, December 31500 91,360,357568,836 1,929,193 92,419The notes to the financial statements are an integral part of this 568,836 2,010 2,314,372290,750 290,750241,460

FINDLAY-HANCOCK COUNTY PUBLIC LIBRARYHANCOCK COUNTYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2015Note 1 – Reporting EntityThe Findlay-Hancock County Public Library, Hancock County, (the Library) is a body politic and corporateestablished to exercise the rights and privileges conveyed to it by the constitution and laws of the State ofOhio. The Hancock County Commissioners and the Hancock County Court of Common Pleas appoints aseven-member Board of Trustees to govern the Library. The Library provides the community with variouseducational and literary resources.The Library’s management believes these financial statements present all activities for which the Libraryis financially accountable.Note 2 – Summary of Significant Accounting PoliciesBasis of PresentationThe Library’s financial statements consist of a combined statement of receipts, disbursements andchanges in fund balances (regulatory cash basis) for all governmental fund types.Fund AccountingThe Library uses funds to maintain its financial records during the year. A fund is defined as a fiscal andaccounting entity with a self-balancing set of accounts. The funds of the Library are presented below:General Fund The General Fund accounts for and reports all financial resources not accounted for andreported in another fund. The general fund balance is available to the Library for any purpose provided itis expended or transferred according to the general laws of Ohio.Special Revenue Funds These funds account for and report the proceeds of specific revenue sourcesthat are restricted or committed to expenditure for specified purposes other than debt service or capitalprojects. The Library had the following significant Special Revenue Fund:Special Gift Fund The Special Gift Grant Fund accounts for and reports gift monies committed forspecial projects and equipment within the Library.Capital Project Funds These funds account for and report financial resources that are restricted,committed, or assigned to expenditure for capital outlays, including the acquisition or construction ofcapital facilities and other capital assets. The Library had the following significant Capital Project Funds:Building and Repair Fund The Building and Repair Fund accounts for and reports proceeds oftransfers in. The proceeds are assigned for building maintenance and repairsVehicle Fund The Vehicle Fund accounts for and reports proceeds of transfers in. The proceedsare assigned for vehicle fleet purchases.Permanent Funds These funds account for and report resources that are restricted to the extent thatonly earnings, and not principal, may be used for purposes that support the reporting government'sprograms (for the benefit of the government or its citizenry). The Library had the following significantPermanent Fund:Fleming Trust Fund – These funds receive interest earnings that are used for book purchases inthe fields of business, law, and history.10

FINDLAY-HANCOCK COUNTY PUBLIC LIBRARYHANCOCK COUNTYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2015(Continued)Basis of AccountingThese financial statements follow the accounting basis permitted by the financial reporting provisions ofOhio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 (D). This basis issimilar to the cash receipts and disbursements accounting basis. The Board recognizes receipts whenreceived in cash rather than when earned, and recognizes disbursements when paid rather than when aliability is incurred. Budgetary presentations report budgetary expenditures when a commitment is made(i.e., when an encumbrance is approved).These statements include adequate disclosure of material matters, as the financial reporting provisions ofOhio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 (D) permit.Budgetary ProcessThe Board must annually approve appropriation measures and subsequent amendments. Appropriationslapse at year end. Budgetary expenditures may not exceed appropriations at the fund, function, andobject level of control.A summary of 2015 budgetary activity appears in Note 3.Deposits and InvestmentsThe Library’s accounting basis includes investments as assets.This basis does not recorddisbursements for investment purchases or receipts for investment sales. This basis records gains orlosses at the time of sale as receipts or disbursements, respectively.Capital AssetsThe Library records disbursements for acquisitions of property, plant, and equipment when paid. Theaccompanying financial statements do not report these items as assets.Accumulated LeaveIn certain circumstances, such as upon leaving employment, employees are entitled to cash payments forunused leave. The financial statements do not include a liability for unpaid leave.Fund BalanceFund balance is divided into five classifications based primarily on the extent to which the Library mustobserve constraints imposed upon the use of its governmental-fund resources. The classifications are asfollows:Nonspendable The Library classifies assets as nonspendable when legally or contractuallyrequired to maintain the amounts intact.Restricted Fund balance is restricted when constraints placed on the use of resources are eitherexternally imposed by creditors (such as through debt covenants), grantors, contributors, or laws orregulations of other governments; or is imposed by law through constitutional provisions.Committed The Board of Trustees can commit amounts via formal action (resolution). The Librarymust adhere to these commitments unless the Board amends the resolution. Committed fundbalance also incorporates contractual obligations to the extent that existing resources in the fundhave been specifically committed to satisfy contractual requirements.11

FINDLAY-HANCOCK COUNTY PUBLIC LIBRARYHANCOCK COUNTYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2015(Continued)Assigned Assigned fund balances are intended for specific purposes but do not meet the criteriato be classified as restricted or committed. Governmental funds other than the General Fund reportall fund balances as assigned unless they are restricted or committed. In the General Fund,assigned amounts represent intended uses established by the Library Board or a Library officialdelegated that authority by resolution, or by State Statute.Unassigned Unassigned fund balance is the residual classification for the General Fund andincludes amounts not included in the other classifications. In other governmental funds, theunassigned classification is used only to report a deficit balance.The Library applies restricted resources first when expenditures are incurred for purposes for which eitherrestricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, withinunrestricted fund balance, committed amounts are reduced first followed by assigned, and thenunassigned amounts when expenditures are incurred for purposes for which amounts in any of theunrestricted fund balance classifications could be used.Note 3 – Budgetary ActivityBudgetary activity for the year ending December 31, 2015 follows:Fund TypeGeneralSpecial RevenueCapital ProjectsPermanentTotal2015 Budgeted vs. Actual ReceiptsBudgetedActualReceiptsReceipts 2,934,050 3,012,76197,534101,88415,00015,50013 3,046,585 3,130,148Varian

The Findlay-Hancock County Public Library, Hancock County, (the Library) is a body politic and corporate established to exercise the rights and privileges conveyed to it by the constitution and laws of the State of Ohio. The Hancock County Commissioners and the Hancock County C