2024 Audit Report
Regular Audit Report
Scioto County Public Library – Scioto County
For the Years Ended December 31, 2024 and 2023
Independent Auditor’s Report
Scioto County Public Library
Scioto County
1220 Gallia Street
Portsmouth, Ohio 45662
To the Board of Trustees:
Report on the Audit of the Financial Statements
Unmodified and Adverse Opinions
We have audited the financial statements of the Scioto County Public Library, Scioto County, Ohio (the Library), which comprises the cash balances, receipts and disbursements for each governmental fund type as of and for the years ended December 31, 2024 and 2023, and the related notes to the financial statements.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the cash balances, receipts and disbursements for each governmental type as of and for the years ended December 31, 2024 and 2023, and the related notes to the financial statements, in accordance with the financial reporting provisions which Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(C) permit, described in Note 2.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the accompanying financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Library, as of December 31, 2024 and 2023, or the changes in financial position thereof for the years then ended.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Library, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 2 of the financial statements, the financial statements are prepared by the Library on the basis of the financial reporting provisions of Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(C), which is an accounting basis other than accounting principles generally accepted in the United States of America (GAAP), to satisfy these requirements. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the financial reporting provisions Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(C) permit. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Library’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
- exercise professional judgment and maintain professional skepticism throughout the audit.
- identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Library’s internal control. Accordingly, no such opinion is expressed.
- evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Library’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 22, 2025, on our consideration of the Library’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Library’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Library’s internal control over financial reporting and compliance.
May 22, 2025
Combined Statement of Receipts, Disbursements and Changes in Fund Balances (Regulatory Cash Basis)
All Governmental Fund Types – For the Year Ended December 31, 2024
| Category | General Fund | Special Revenue Fund | Capital Projects Fund | Combined Total |
|---|---|---|---|---|
| Property and Other Local Taxes | $1,014,439 | — | — | $1,014,439 |
| Public Library Fund | $3,161,005 | — | — | $3,161,005 |
| Intergovernmental | $120,517 | — | — | $120,517 |
| Payments in Lieu of Taxes | $291 | — | — | $291 |
| Patron Fines and Fees | $26,940 | — | — | $26,940 |
| Contributions, Gifts and Donations | $21,625 | — | — | $21,625 |
| Earnings on Investments | $286,844 | $1,264 | — | $288,108 |
| Miscellaneous | $13,691 | — | — | $13,691 |
| Total Cash Receipts | $4,645,352 | $1,264 | $0 | $4,646,616 |
| Category | General Fund | Special Revenue Fund | Capital Projects Fund | Combined Total |
|---|---|---|---|---|
| Public Services and Programs | $1,520,516 | — | — | $1,520,516 |
| Collection Development and Processing | $447,990 | — | — | $447,990 |
| Facilities Operation and Maintenance | $764,611 | — | — | $764,611 |
| Business Administration | $1,570,986 | — | — | $1,570,986 |
| Capital Outlay | $238,260 | — | $117,646 | $355,906 |
| Total Cash Disbursements | $4,542,363 | $0 | $117,646 | $4,660,009 |
| Excess of Receipts Over (Under) Disbursements | $102,989 | $1,264 | ($117,646) | ($13,393) |
| Category | General Fund | Special Revenue Fund | Capital Projects Fund | Combined Total |
|---|---|---|---|---|
| Sale of Capital Assets | $8,080 | — | — | $8,080 |
| Transfers In | — | — | $246,232 | $246,232 |
| Transfers Out | ($246,232) | — | — | ($246,232) |
| Total Other Financing Receipts (Disbursements) | ($238,152) | $0 | $246,232 | $8,080 |
| Net Change in Fund Cash Balances | ($135,163) | $1,264 | $128,586 | ($5,313) |
| Fund Cash Balances, January 1 | $6,402,144 | $23,080 | $19,297 | $6,444,521 |
| Fund Cash Balances, December 31 | $6,266,981 | $24,344 | $147,883 | $6,439,208 |
See accompanying notes to the basic financial statements.
Notes to the Financial Statements – For the Year Ended December 31, 2024
Note 1 – Reporting Entity
The Scioto County Public Library (the Library), Scioto County, formerly the Portsmouth Public 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. A seven member Board governs the Library; three members are appointed by the Common Pleas Court Judges and four members are appointed by the Scioto County Commissioners. The Library also determines and operates under its own budget. The control and management of the Library is governed by Sections 3375.22 to 3375.27 of the Ohio Revised Code. The Library provides the community with various educational and literary resources.
Joint Ventures, Jointly Governed Organizations, Public Entity Risk Pools and Related Organizations. The Library is involved with the Southeast Regional Library System (SERLS) and the Ohio Valley Library Consortium (OVLC), both of which are defined as jointly governed organizations. Additional information concerning SERLS and the OVLC are presented in Note 10.
The Library participates in a public entity risk pool. Note 6 to the financial statements provides additional information for this entity.
The Library’s management believes this financial statement presents all activities for which the Library is financially accountable.
Note 2 – Summary of Significant Accounting Policies
Basis of Presentation. The Library’s financial statement consists of a combined statement of receipts, disbursements and changes in fund balances (regulatory cash basis) for all governmental fund types.
Fund Accounting. The Library uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting 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 and reported in another fund. The general fund balance is available to the Library for any purpose provided it is expended or transferred according to the general laws of Ohio.
Special Revenue Funds – These funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The Library had the following significant Special Revenue Fund:
Zella H. Besco Fund – The fund receives interest from a governmental savings account. These funds are restricted for use for library services in the South Webster Branch.
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 of capital facilities and other capital assets. The Library had the following significant capital project fund:
Building and Repair Fund – This fund accounts for and reports resources committed by the Board specifically for major capital and technology improvements to Library buildings. Historically, the sources of revenue have been transfers from the general fund.
Basis of Accounting. These financial statements follow the accounting basis permitted by the financial reporting provisions of Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 (C). This basis is similar to the cash receipts and disbursements accounting basis. The Library recognizes receipts when received in cash rather than when earned, and recognizes disbursements when paid rather than when a liability 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 of Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 (C) permit.
Budgetary Process. The Board must annually approve appropriation measures and subsequent amendments. Unencumbered appropriations lapse at year end. Budgetary expenditures may not exceed appropriations at the fund, function, and object level of control. A summary of 2024 budgetary activity appears in Note 3.
Deposits and Investments. The Library’s accounting basis includes investments as assets. This basis does not record disbursements for investment purchases or receipts for investment sales. This basis records gains or losses 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 that approximates fair value.
Capital Assets. The Library records disbursements for acquisitions of property, plant, and equipment when paid. The accompanying financial statements do not report these items as assets.
Accumulated Leave. Library employees earn sick and vacation time that can be used for time off. In certain circumstances, such as upon leaving employment or retirement, employees are entitled to cash payments for unused leave. The financial statements do not include a liability for unpaid leave.
Fund Balance. Fund balance is divided into five classifications based primarily on the extent to which the Library must observe constraints imposed upon the use of its governmental-fund resources. The classifications are as follows:
Nonspendable – The Library classifies assets as nonspendable when legally or contractually required to maintain the amounts intact. For regulatory purposes, nonspendable fund balance includes unclaimed monies that are required to be held for five years before they may be utilized by the Library and the nonspendable portion of the corpus in permanent funds.
Restricted – Fund balance is restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or is imposed by law through constitutional provisions.
Committed – The Board of Trustees can commit amounts via formal action (resolution). The Library must adhere to these commitments unless the Board amends the resolution. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed to satisfy contractual requirements.
Assigned – Assigned fund balances are intended for specific purposes but do not meet the criteria to be classified as restricted or committed. For regulatory purposes, assigned fund balance in the general fund is limited to encumbrances outstanding at year end.
Unassigned – Unassigned fund balance is the residual classification for the general fund and includes amounts not included in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance.
The Library applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.
For regulatory purposes, limited disclosure related to fund balance is included in Note 11.
Note 3 – Budgetary Activity
Budgetary activity for the year ending December 31, 2024 follows:
| Fund Type | Budgeted Receipts | Actual Receipts | Variance |
|---|---|---|---|
| General | $4,694,000 | $4,653,432 | ($40,568) |
| Special Revenue | $1,200 | $1,264 | $64 |
| Capital Projects | $442,000 | $246,232 | ($195,768) |
| Total | $5,137,200 | $4,900,928 | ($236,272) |
| Fund Type | Appropriation Authority | Budgetary Expenditures | Variance |
|---|---|---|---|
| General | $5,470,711 | $5,034,169 | $436,542 |
| Capital Projects | $456,629 | $265,529 | $191,100 |
| Total | $5,927,340 | $5,299,698 | $627,642 |
Note 4 – Deposits and Investments
To improve cash management, cash received by the Library is pooled. Monies for all fund are maintained in this pool. The Ohio Revised Code prescribes allowable deposits and investments. The Library also has a segregated account, which includes a payroll clearing account. A summary of the Library’s deposit and investment accounts as of December 31, 2024 are as follows:
| Category | Amount |
|---|---|
| Demand deposits | $875,543 |
| Total deposits | $875,543 |
| STAR Ohio | $5,563,665 |
| Total investments | $5,563,665 |
| Total deposits and investments held in pool | $6,439,208 |
Deposits. Deposits are insured by the Federal Deposit Insurance Corporation; [or] collateralized by securities specifically pledged by the financial institution to the Library; collateralized through the Ohio Pooled Collateral System (OPCS), a collateral pool of eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to secure the repayment of all public monies deposited in the financial institution.
Investments. Investments in STAR Ohio and mutual funds are not evidenced by securities that exist in physical or book-entry form.
Note 5 – Grants in Aid and Taxes
Grants in Aid. The primary source of revenue for Ohio public libraries is the Public Library Fund (PLF). The State allocates PLF to each county based on the total tax revenue credited to the State’s general revenue fund during the preceding month using the statutory allocation method. Estimated entitlement figures were issued to County Auditors. The actual current year entitlements were computed in December of the current year. The difference between the estimate and actual will be adjusted evenly in the PLF distributions made from January-June of the subsequent year.
Property Taxes. Real property taxes become a lien on January 1 preceding the October 1 date for which the taxing authority of the subdivision to whose jurisdiction the Library is subject adopts rates. The State Department of Taxation, Division of Tax Equalization, adjusts these rates for inflation. Property taxes are also reduced for applicable non-business, owner occupancy, and homestead exemption credits and/or homestead and rollback deductions. The financial statement includes these credits and/or deduction amounts the State pays as intergovernmental receipts. Payments are due to the County by December 31. If the property owner elects to pay semiannually, the first half is due December 31. The second half payment is due the following June 20. The Library’s current 1.0 mil levy was renewed for a 5-year period during the November 5, 2024 election.
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 property taxes on behalf of the Library.
Note 6 – Risk Management
Workers’ Compensation. Workers’ 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 on accident history and administrative costs.
Risk Pool Membership. The Library belongs to the Ohio Plan Risk Management, Inc. (OPRM) (the Plan), an unincorporated non-profit association providing a formalized, jointly administered self-insurance risk management program and other administrative services to Ohio governments (Members). The Plan is legally separate from its member governments.
Pursuant to Section 2744.081 of the Ohio Revised Code, the Plan provides property, liability, errors and omissions, law enforcement, automobile, excess liability, crime, surety and bond, inland marine and other coverages to its members sold through fourteen appointed independent agents in the State of Ohio.
Effective November 1, 2016, the OPRM elected to participate in a property loss corridor deductible. The property corridor includes losses paid between 70% and 75%. In 2018, the casualty loss corridor was eliminated, and the property corridor was adjusted to losses paid between 65% and 70%. Effective November 1, 2019, the property loss corridor was adjusted to losses between 60% and 67.5% and has remained unchanged. OPRM had 801 members as of December 31, 2023.
The Pool’s audited financial statements conform with accounting principles generally accepted in the United States of America, with the exception of a qualified opinion related to recording premiums and membership fees earned in full as of December 31, 2023. Those premiums and fees should be earned pro-rata over the individual coverage and membership periods of each policy. The financial statements reported the following assets, liabilities and equity at December 31, 2023 (the latest information available):
| Category | Amount |
|---|---|
| Assets | $23,113,696 |
| Liabilities | ($16,078,587) |
| Members’ Equity | $7,035,109 |
You can read the complete audited financial statements for OPRM at the Plan’s website, www.ohioplan.org.
Note 7 – Defined Benefit Pension Plans
Ohio Public Employees Retirement System. The Library employees belong to the Ohio Public Employees Retirement System (OPERS). OPERS is a cost-sharing, multiple-employer plan. The Ohio Revised Code prescribes this plan’s benefits, which include postretirement health care and survivor and disability benefits.
The Ohio Revised Code also prescribes contribution rates. OPERS members contributed 10 percent of their gross salaries, and the Library contributed an amount equaling 14 percent of participants’ gross salaries. The Library has paid all contributions required through December 31, 2024.
Note 8 – Postemployment Benefits
OPERS offers a cost-sharing, multiple-employer defined benefit postemployment plan. OPERS offers a health reimbursement arrangement (HRA) allowance to benefit recipients meeting certain age and service credit requirements. The HRA is an account funded by OPERS that provides tax-free reimbursement for qualified medical expenses such as monthly post-tax insurance premiums, deductibles, co-insurance, and co-pays incurred by eligible benefit recipients and their dependents. For calendar year 2024, the portion of employer contributions allocated to health care was 0 percent for members in the traditional pension plan and 2 percent for members in the combined plan. For 2024, the portion of employer contributions allocated to health care for members in the member-directed plan was 4.0 percent; however, a portion of the health care rate was funded with reserves.
Note 9 – Contingent Liabilities
The Library is not currently party to litigation.
Note 10 – Jointly Governed Organizations
The Southeast Regional Library System (SERLS) is a cooperative regional library system created and governed accordingly to the provisions of Section 3375.70 through 3375.3, Ohio Revised Code. SERLS is comprised of autonomous public libraries in the Ohio counties of Athens, Belmont, Delaware, Fairfield, Franklin, Gallia, Guernsey, Hocking, Jackson, Jefferson, Lawrence, Licking, Meigs, Monroe, Morgan, Muskingum, Noble, Perry, Pickaway, Pike, Ross, Scioto, Vinton, and Washington, as well as school libraries, public, academic, and special libraries. SERLS’ Board of Trustees consists of fifteen members: twelve public library representatives, one academic representative, one school representative, and one special representative. Scioto County Public Library’s control over budgeting and financing of SERLS is limited to its voting authority and its representation on the SERLS’ Board of Trustees.
The Ohio Valley Library Consortium (OVLC) is a cooperative agreement between the Oak Hill Public Library, Sylvester Memorial Wellston Public Library, Jackson City Library, Herbert Wescoat Memorial Library, Scioto County Public Library, Logan-Hocking County District Library, Meigs County District Library, and Briggs Lawrence County Public Library. The Board of Trustees is composed of one member from each Library, normally the Library Director or his/her assignee. Each Library pays a share of subscription and support fees for the database to The Library Corporation and each Library maintains their own individually.
Note 11 – Fund Balances
Included in fund balance are amounts the Library cannot spend, including the balance of unclaimed monies, which cannot be spent for five years and the unexpendable corpus of the permanent funds. Encumbrances are commitments related to unperformed contracts for goods or services. Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year end the balances of these amounts were as follows:
| Fund | General | Special Revenue | Capital Projects | Total |
|---|---|---|---|---|
| Outstanding Encumbrances | $245,574 | $0 | $147,883 | $393,457 |
The fund balance of special revenue funds is either restricted or committed. The fund balance of the capital projects fund is restricted, committed, or assigned. These restricted, committed, and assigned amounts in the special revenue and capital projects funds would include the outstanding encumbrances, as applicable. In the general fund, outstanding encumbrances are considered assigned.
Note 12 – Contractual Commitments
In September 2024, the Library entered into a contract with Skeens Excavating, Inc. for the purpose of furnishing all labor, materials, tools and equipment to complete the Lucasville Branch of the Scioto County Public Library Stream Restoration. The contract was entered into in the amount of $242,000 and as of December 31, 2024, $108,900 has been paid on the project.
Note 13 – Subsequent Events
In 2023, the Library purchased a new Bookmobile for $463,523. Half was paid in 2023, and the remaining balance was paid in January 2025.
Combined Statement of Receipts, Disbursements and Changes in Fund Balances (Regulatory Cash Basis)
All Governmental Fund Types – For the Year Ended December 31, 2023
| Category | General Fund | Special Revenue Fund | Capital Projects Fund | Combined Total |
|---|---|---|---|---|
| Property and Other Local Taxes | $1,004,211 | — | — | $1,004,211 |
| Public Library Fund | $3,336,308 | — | — | $3,336,308 |
| Intergovernmental | $119,468 | — | — | $119,468 |
| Payments in Lieu of Taxes | $323 | — | — | $323 |
| Patron Fines and Fees | $24,386 | — | — | $24,386 |
| Contributions, Gifts and Donations | $18,013 | — | — | $18,013 |
| Earnings on Investments | $258,189 | $747 | — | $258,936 |
| Miscellaneous | $68,857 | — | — | $68,857 |
| Total Cash Receipts | $4,829,755 | $747 | $0 | $4,830,502 |
| Category | General Fund | Special Revenue Fund | Capital Projects Fund | Combined Total |
|---|---|---|---|---|
| Public Services and Programs | $1,674,844 | — | — | $1,674,844 |
| Collection Development and Processing | $275,024 | — | — | $275,024 |
| Facilities Operation and Maintenance | $616,179 | — | — | $616,179 |
| Business Administration | $1,421,830 | — | — | $1,421,830 |
| Capital Outlay | $445,142 | — | $113,315 | $558,457 |
| Total Cash Disbursements | $4,433,019 | $0 | $113,315 | $4,546,334 |
| Excess of Receipts Over (Under) Disbursements | $396,736 | $747 | ($113,315) | $284,168 |
| Category | General Fund | Special Revenue Fund | Capital Projects Fund | Combined Total |
|---|---|---|---|---|
| Sale of Capital Assets | $8,835 | — | — | $8,835 |
| Transfers In | — | — | $107,213 | $107,213 |
| Transfers Out | ($107,213) | — | — | ($107,213) |
| Total Other Financing Receipts (Disbursements) | ($98,378) | $0 | $107,213 | $8,835 |
| Net Change in Fund Cash Balances | $298,358 | $747 | ($6,102) | $293,003 |
| Fund Cash Balances, January 1 | $6,103,786 | $22,333 | $25,399 | $6,151,518 |
| Fund Cash Balances, December 31 | $6,402,144 | $23,080 | $19,297 | $6,444,521 |
See accompanying notes to the basic financial statements.
Notes to the Financial Statements – For the Year Ended December 31, 2023
Note 1 – Reporting Entity
The Scioto County Public Library (the Library), Scioto County, formerly the Portsmouth Public 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. A seven member Board governs the Library; three members are appointed by the Common Pleas Court Judges and four members are appointed by the Scioto County Commissioners. The Library also determines and operates under its own budget. The control and management of the Library is governed by Sections 3375.22 to 3375.27 of the Ohio Revised Code. The Library provides the community with various educational and literary resources.
Joint Ventures, Jointly Governed Organizations, Public Entity Risk Pools and Related Organizations. The Library is involved with the Southeast Regional Library System (SERLS) and the Ohio Valley Library Consortium (OVLC), both of which are defined as jointly governed organizations. Additional information concerning SERLS and the OVLC are presented in Note 10.
The Library participates in a public entity risk pool. Note 6 to the financial statements provides additional information for this entity.
The Library’s management believes this financial statement presents all activities for which the Library is financially accountable.
Note 2 – Summary of Significant Accounting Policies
Basis of Presentation. The Library’s financial statement consists of a combined statement of receipts, disbursements and changes in fund balances (regulatory cash basis) for all governmental fund types.
Fund Accounting. The Library uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting 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 and reported in another fund. The general fund balance is available to the Library for any purpose provided it is expended or transferred according to the general laws of Ohio.
Special Revenue Funds – These funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The Library had the following significant Special Revenue Fund:
Zella H. Besco Fund – The fund receives interest from a governmental savings account. These funds are restricted for use for library services in the South Webster Branch.
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 of capital facilities and other capital assets. The Library had the following significant capital project fund:
Building and Repair Fund – This fund accounts for and reports resources committed by the Board specifically for major capital and technology improvements to Library buildings. Historically, the sources of revenue have been transfers from the general fund.
Basis of Accounting. These financial statements follow the accounting basis permitted by the financial reporting provisions of Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 (C). This basis is similar to the cash receipts and disbursements accounting basis. The Library recognizes receipts when received in cash rather than when earned, and recognizes disbursements when paid rather than when a liability 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 of Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 (C) permit.
Budgetary Process. The Board must annually approve appropriation measures and subsequent amendments. Unencumbered appropriations lapse at year end. Budgetary expenditures may not exceed appropriations at the fund, function, and object level of control. A summary of 2023 budgetary activity appears in Note 3.
Deposits and Investments. The Library’s accounting basis includes investments as assets. This basis does not record disbursements for investment purchases or receipts for investment sales. This basis records gains or losses 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 that approximates fair value.
Capital Assets. The Library records disbursements for acquisitions of property, plant, and equipment when paid. The accompanying financial statements do not report these items as assets.
Accumulated Leave. Library employees earn sick and vacation time that can be used for time off. In certain circumstances, such as upon leaving employment or retirement, employees are entitled to cash payments for unused leave. The financial statements do not include a liability for unpaid leave.
Fund Balance. Fund balance is divided into five classifications based primarily on the extent to which the Library must observe constraints imposed upon the use of its governmental-fund resources. The classifications are as follows:
Nonspendable – The Library classifies assets as nonspendable when legally or contractually required to maintain the amounts intact. For regulatory purposes, nonspendable fund balance includes unclaimed monies that are required to be held for five years before they may be utilized by the Library and the nonspendable portion of the corpus in permanent funds.
Restricted – Fund balance is restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or is imposed by law through constitutional provisions.
Committed – The Board of Trustees can commit amounts via formal action (resolution). The Library must adhere to these commitments unless the Board amends the resolution. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed to satisfy contractual requirements.
Assigned – Assigned fund balances are intended for specific purposes but do not meet the criteria to be classified as restricted or committed. For regulatory purposes, assigned fund balance in the general fund is limited to encumbrances outstanding at year end.
Unassigned – Unassigned fund balance is the residual classification for the general fund and includes amounts not included in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance.
The Library applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.
For regulatory purposes, limited disclosure related to fund balance is included in Note 11.
Note 3 – Budgetary Activity
Budgetary activity for the year ending December 31, 2023 follows:
| Fund Type | Budgeted Receipts | Actual Receipts | Variance |
|---|---|---|---|
| General | $4,645,682 | $4,838,590 | $192,908 |
| Special Revenue | $0 | $747 | $747 |
| Capital Projects | $0 | $107,213 | $107,213 |
| Total | $4,645,682 | $4,946,550 | $300,868 |
| Fund Type | Appropriation Authority | Budgetary Expenditures | Variance |
|---|---|---|---|
| General | $5,106,690 | $4,632,422 | $474,268 |
| Capital Projects | $129,698 | $127,944 | $1,754 |
| Total | $5,236,388 | $4,760,366 | $476,022 |
Note 4 – Deposits and Investments
To improve cash management, cash received by the Library is pooled. Monies for all fund are maintained in this pool. The Ohio Revised Code prescribes allowable deposits and investments. The Library also has a segregated account, which includes a payroll clearing account. A summary of the Library’s deposit and investment accounts as of December 31, 2023 are as follows:
| Category | Amount |
|---|---|
| Demand deposits | $1,137,828 |
| Total deposits | $1,137,828 |
| STAR Ohio | $5,276,586 |
| Total investments | $5,276,586 |
| Total deposits and investments held in pool | $6,414,414 |
| Segregated Account – Payroll Clearing Account (not held in pool) | $30,107 |
The Library has a payroll clearing account that is held outside of the deposit pool where gross payroll is held for distribution. The expenditures included in the accompanying financial statement reflect gross payroll. The balance in the Library’s payroll clearing account represents unremitted employee payroll withholdings.
Deposits. Deposits are insured by the Federal Deposit Insurance Corporation; [or] collateralized by securities specifically pledged by the financial institution to the Library; collateralized through the Ohio Pooled Collateral System (OPCS), a collateral pool of eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to secure the repayment of all public monies deposited in the financial institution.
Investments. Investments in STAR Ohio and mutual funds are not evidenced by securities that exist in physical or book-entry form.
Note 5 – Grants in Aid and Taxes
Grants in Aid. The primary source of revenue for Ohio public libraries is the Public Library Fund (PLF). The State allocates PLF to each county based on the total tax revenue credited to the State’s general revenue fund during the preceding month using the statutory allocation method. Estimated entitlement figures were issued to County Auditors. The actual current year entitlements were computed in December of the current year. The difference between the estimate and actual will be adjusted evenly in the PLF distributions made from January-June of the subsequent year.
Property Taxes. Real property taxes become a lien on January 1 preceding the October 1 date for which the taxing authority of the subdivision to whose jurisdiction the Library is subject adopts rates. The State Department of Taxation, Division of Tax Equalization, adjusts these rates for inflation. Property taxes are also reduced for applicable non-business, owner occupancy, and homestead exemption credits and/or homestead and rollback deductions. The financial statement includes these credits and/or deduction amounts the State pays as intergovernmental receipts. Payments are due to the County by December 31. If the property owner elects to pay semiannually, the first half is due December 31. The second half payment is due the following June 20. The Library’s current 1.0 mil levy was renewed for a 5-year period during the November 5, 2019 election.
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 property taxes on behalf of the Library.
Note 6 – Risk Management
Workers’ Compensation. Workers’ 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 on accident history and administrative costs.
Risk Pool Membership. The Library belongs to the Ohio Plan Risk Management, Inc. (OPRM) (the Plan), an unincorporated non-profit association providing a formalized, jointly administered self-insurance risk management program and other administrative services to Ohio governments (Members). The Plan is legally separate from its member governments.
Pursuant to Section 2744.081 of the Ohio Revised Code, the Plan provides property, liability, errors and omissions, law enforcement, automobile, excess liability, crime, surety and bond, inland marine and other coverages to its members sold through fourteen appointed independent agents in the State of Ohio.
Effective November 1, 2016, the OPRM elected to participate in a property loss corridor deductible. The property corridor includes losses paid between 70% and 75%. In 2018, the casualty loss corridor was eliminated, and the property corridor was adjusted to losses paid between 65% and 70%. Effective November 1, 2019, the property loss corridor was adjusted to losses between 60% and 67.5% and has remained unchanged. OPRM had 801 members as of December 31, 2023.
The Pool’s audited financial statements conform with accounting principles generally accepted in the United States of America, with the exception of a qualified opinion related to recording premiums and membership fees earned in full as of December 31, 2023. Those premiums and fees should be earned pro-rata over the individual coverage and membership periods of each policy. The financial statements reported the following assets, liabilities and equity at December 31, 2023:
| Category | Amount |
|---|---|
| Assets | $23,113,696 |
| Liabilities | ($16,078,587) |
| Members’ Equity | $7,035,109 |
You can read the complete audited financial statements for OPRM at the Plan’s website, www.ohioplan.org.
Note 7 – Defined Benefit Pension Plans
Ohio Public Employees Retirement System. The Library employees belong to the Ohio Public Employees Retirement System (OPERS). OPERS is a cost-sharing, multiple-employer plan. The Ohio Revised Code prescribes this plan’s benefits, which include postretirement health care and survivor and disability benefits.
The Ohio Revised Code also prescribes contribution rates. OPERS members contributed 10 percent of their gross salaries, and the Library contributed an amount equaling 14 percent of participants’ gross salaries. The Library has paid all contributions required through December 31, 2023.
Note 8 – Postemployment Benefits
OPERS offers a cost-sharing, multiple-employer defined benefit postemployment plan. OPERS offers a health reimbursement arrangement (HRA) allowance to benefit recipients meeting certain age and service credit requirements. The HRA is an account funded by OPERS that provides tax-free reimbursement for qualified medical expenses such as monthly post-tax insurance premiums, deductibles, co-insurance, and co-pays incurred by eligible benefit recipients and their dependents. For calendar year 2023, the portion of employer contributions allocated to health care was 0 percent for members in the traditional pension plan and 2 percent for members in the combined plan. For 2023, the portion of employer contributions allocated to health care for members in the member-directed plan was 4.0 percent; however, a portion of the health care rate was funded with reserves.
Note 9 – Contingent Liabilities
The Library is not currently party to litigation.
Note 10 – Jointly Governed Organizations
The Southeast Regional Library System (SERLS) is a cooperative regional library system created and governed accordingly to the provisions of Section 3375.70 through 3375.3, Ohio Revised Code. SERLS is comprised of autonomous public libraries in the Ohio counties of Athens, Belmont, Delaware, Fairfield, Franklin, Gallia, Guernsey, Hocking, Jackson, Jefferson, Lawrence, Licking, Meigs, Monroe, Morgan, Muskingum, Noble, Perry, Pickaway, Pike, Ross, Scioto, Vinton, and Washington, as well as school libraries, public, academic, and special libraries. SERLS’ Board of Trustees consists of fifteen members: twelve public library representatives, one academic representative, one school representative, and one special representative. Scioto County Public Library’s control over budgeting and financing of SERLS is limited to its voting authority and its representation on the SERLS’ Board of Trustees.
The Ohio Valley Library Consortium (OVLC) is a cooperative agreement between the Oak Hill Public Library, Sylvester Memorial Wellston Public Library, Jackson City Library, Herbert Wescoat Memorial Library, Scioto County Public Library, Logan-Hocking County District Library, Meigs County District Library, and Briggs Lawrence County Public Library. The Board of Trustees is composed of one member from each Library, normally the Library Director or his/her assignee. Each Library pays a share of subscription and support fees for the database to The Library Corporation and each Library maintains their own individually.
Note 11 – Fund Balances
At year end the balances of these amounts were as follows:
| Fund | General | Special Revenue | Capital Projects | Total |
|---|---|---|---|---|
| Outstanding Encumbrances | $92,190 | $0 | $14,629 | $106,819 |
The fund balance of special revenue funds is either restricted or committed. The fund balance of the capital projects fund is restricted, committed, or assigned. These restricted, committed, and assigned amounts in the special revenue and capital projects funds would include the outstanding encumbrances, as applicable. In the general fund, outstanding encumbrances are considered assigned.
Note 12 – Subsequent Events
In 2023, the Library purchased a new Bookmobile for $463,523. Half was paid in 2023, and the remaining balance was paid in January 2025.
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards
Scioto County Public Library
Scioto County
1220 Gallia Street
Portsmouth, Ohio 45662
To the Board of Trustees:
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the cash balances, receipts, and disbursements for each governmental fund type as of and for the years ended December 31, 2024 and 2023 and the related notes to the financial statements of the Scioto County Public Library, Scioto County, Ohio (the Library) and have issued our report thereon dated May 22, 2025, wherein we noted the Library followed financial reporting provisions Ohio Rev. Code § 117.38 and Ohio Admin. Code 117-2-03(C) permit.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Library’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Library’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Library’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Library’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Library’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Library’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Library’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
May 22, 2025
Auditor of State of Ohio Certification
This is a true and correct copy of the report, which is required to be filed pursuant to Section 117.26, Revised Code, and which is filed in the Office of the Ohio Auditor of State in Columbus, Ohio.
Certified for Release 6/10/2025
65 East State Street, Columbus, Ohio 43215
Phone: 614-466-4514 or 800-282-0370
This report is a matter of public record and is available online at www.ohioauditor.gov.