HANCOCK COUNTY TABLE OF CONTENTS FINANCIAL SECTION_part2 docx

8 HANCOCK COUNTY Exhibit B Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Discretely Presented Component Units For the Year Ended September 30, 1995 Totals Totals Governmental Memorandum Memorandum Fund Types Only Only Special Debt Capital Primary Component Reporting General Revenue Service Projects Government Units Entity Revenues Property taxes $ 3,075,298 2,618,276 846,424 6,539,998 215,592 6,755,590 Licenses, commissions and other revenue 344,104 413,625 757,729 757,729 Fines and forfeitures 460,548 29,548 490,096 490,096 Intergovernmental revenues: Federal sources 56,490 201,047 257,537 1,844,844 2,102,381 State and local sources 2,309,292 2,789,671 5,098,963 273,530 5,372,493 Charges for services 937,623 592,745 1,530,368 402,161 1,932,529 Use of money and property 311,786 112,554 32,726 457,066 14,506 471,572 Miscellaneous revenues 107,520 77,059 59 184,638 11,349 195,987 Total Revenues 7,602,661 6,834,525 879,209 0 15,316,395 2,761,982 18,078,377 Expenditures Current: General government 2,469,984 444,292 2,914,276 2,914,276 Public safety 2,065,892 880,543 2,946,435 294,863 3,241,298 Public works 1,744,085 3,756,013 5,500,098 2,373,646 7,873,744 Health & welfare 482,569 482,569 320,995 803,564 Culture & recreation 250,558 757,722 1,008,280 1,008,280 Conservation of natural resources 72,713 72,713 72,713 Economic development and assistance 101,495 101,495 101,495 Capital projects 35,355 461,077 496,432 496,432 Debt service: Principal retirement 191,000 302,468 335,000 828,468 828,468 Interest and fiscal charges 21,474 118,616 264,106 404,196 404,196 Total Expenditures 7,435,125 6,720,731 599,106 0 14,754,962 2,989,504 17,744,466 Excess of Revenues over (under) Expenditures 167,536 113,794 280,103 0 561,433 (227,522) 333,911 Other Financing Sources (Uses) Proceeds of other debt 322,921 322,921 322,921 Insurance recoveries 7,898 24,398 32,296 32,296 Operating transfers in 420,800 4,055 424,855 184,555 609,410 Operating transfers out (420,800) (4,055) (424,855) (424,855) Operating transfers from primary government 119,553 119,553 Operating transfers to component units (119,553) (119,553) (119,553) Total Other Financing Sources (Uses) (532,455) 768,119 0 0 235,664 304,108 539,772 Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (364,919) 881,913 280,103 0 797,097 76,586 873,683 9 Fund Balances Beginning of year as previously reported 4,773,337 3,429,730 888,510 (82,174) 9,009,403 9,009,403 Prior period adjustments: Error corrections (7,500) (13,221) (20,721) (20,721) Accounting change (60,884) 82,174 21,290 405,640 426,930 Beginning of year as restated 4,765,837 3,355,625 888,510 0 9,009,972 405,640 9,415,612 Residual equity transfers 12,094 12,094 12,094 End of year $ 4,413,012 4,237,538 1,168,613 0 9,819,163 482,226 10,301,389 The notes to the financial statements are an integral part of this statement. 10 HANCOCK COUNTY Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Budgetary Basis) and Actual - All Governmental Fund Types For the Year Ended September 30, l995 General Special Fund Revenue Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues Property taxes $ 3,074,065 3,074,678 613 2,765,997 2,765,997 Licenses, commissions and other revenue 328,151 341,731 13,580 413,042 413,303 261 Fines and forfeitures 447,660 433,468 (14,192) 28,656 29,548 892 Intergovernmental revenues: Federal sources 101,126 84,921 (16,205) State and local sources 2,600,666 2,602,015 1,349 2,341,824 2,341,824 Charges for services 889,054 912,623 23,569 575,009 595,355 20,346 Use of money and property 235,906 303,741 67,835 169,124 177,017 7,893 Miscellaneous revenues 93,255 100,480 7,225 138,623 167,285 28,662 Total Revenues 7,769,883 7,853,657 83,774 6,432,275 6,490,329 58,054 Expenditures General government 2,828,202 2,858,520 (30,318) 508,720 508,720 Public safety 2,715,306 2,713,793 1,513 168,891 192,037 (23,146) Public works 1,764,748 1,764,748 3,770,958 3,873,135 (102,177) Health and welfare 544,017 544,017 Culture and recreation 295,618 285,624 9,994 396,932 396,932 Conservation of natural resources 73,780 73,780 Economic development and assistance 92,251 92,251 Capital projects 1,155,839 1,155,839 Debt service 76,280 76,280 346,304 220,998 125,306 Total Expenditures 8,390,202 8,409,013 (18,811) 6,347,644 6,347,661 (17) Excess of Revenues over (under) Expenditures (620,319) (555,356) 64,963 84,631 142,668 58,037 Other Financing Sources (Uses) 65,162 121,253 56,091 81,011 53,704 (27,307) Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (555,157) (434,103) 121,054 165,642 196,372 30,730 Fund Balances Beginning of year 4,826,183 5,100,314 1,650,001 3,688,316 End of year $ 4,271,026 4,666,211 1,815,643 3,884,688 The notes to the financial statements are an integral part of this statement. 11 Exhibit C Debt Service Funds Variance Favorable Budget Actual (Unfavorable) 845,506 845,506 30,735 32,726 1,991 59 59 876,300 878,291 1,991 599,106 599,106 599,106 599,106 0 277,194 279,185 1,991 64,412 0 (64,412) 341,606 279,185 (62,421) 874,955 874,960 1,216,561 1,154,145 12 HANCOCK COUNTY Exhibit D Combined Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary Fund Type and Discretely Presented Component Units For the Year Ended September 30, 1995 Total Primary Memorandum Government Only Proprietary Component Reporting Fund Type Units Entity Operating Revenues Charges for sales and services $ 23,795,060 23,795,060 Miscellaneous 369,107 369,107 Total Operating Revenues 0 24,164,167 24,164,167 Operating Expenses Costs of sales 1,000,851 1,000,851 Personal services 8,136,894 8,136,894 Contractual services 3,526,068 3,526,068 Materials and supplies 2,996,606 2,996,606 Bad debt expense 3,491,127 3,491,127 Depreciation expense 1,124,075 1,124,075 Indirect administrative cost 396,571 396,571 Miscellaneous 306,024 306,024 Total Operating Expenses 0 20,978,216 20,978,216 Operating Income (Loss) 0 3,185,951 3,185,951 Nonoperating Revenues (Expenses) Interest income 140,602 140,602 Interest expense (767,136) (767,136) Donations 61,644 61,644 Operating grants 25,420 25,420 Other income (expense) 4,681 4,681 Net Nonoperating Revenues (Expenses) 0 (534,789) (534,789) Net Income (Loss) Before Operating Transfers 0 2,651,162 2,651,162 Operating Transfers Operating transfers out (184,555) (184,555) Total Operating Transfers 0 (184,555) (184,555) Net Income (Loss) For the Year 0 2,466,607 2,466,607 Retained Earnings Beginning of year as previously reported 22,190 0 22,190 Accounting change (22,190) 5,044,322 5,022,132 Beginning of year as restated 0 5,044,322 5,044,322 End of year $ 0 7,510,929 7,510,929 The notes to the financial statements are an integral part of this statement. 13 HANCOCK COUNTY Exhibit E Combined Statement of Cash Flows Discretely Presented Proprietary Component Units For the Year Ended September 30, 1995 Cash Flows From Operating Activities Cash received from customers $ 20,508,808 Cash payments to suppliers for goods and services (6,988,923) Cash payments to employees for services (8,442,922) Other operating cash receipts 177,623 Other operating cash expenses (306,024) Net Cash Provided (Used) by Operating Activities 4,948,562 Cash Flows From Noncapital Financing Activities Cash received from other funds: Operating transfers in 175,200 Cash paid to other funds: Operating transfers out (359,755) Unrestricted gifts 61,644 Net Cash Provided (Used) by Noncapital Financing Activities (122,911) Cash Flows From Capital and Related Financing Activities Proceeds of short-term debt 850,395 Capital grants received 50,000 Capital contributions from other funds 3,704 Proceeds from sale of fixed assets 14,700 Acquisition and construction of capital assets (2,113,664) Principal paid on long-term debt (382,574) Principal paid on short-term debt (890,395) Principal paid on capital leases (148,682) Interest expense paid (769,781) Net Cash Provided (Used) by Capital and Related Financing Activities (3,386,297) Cash Flows From Investing Activities Proceeds from sale and maturities of investment securities 500,000 Interest and dividends on investments 132,036 Purchase of investment securities (525,427) (Increase) decrease in assets whose use is limited (1,280,969) Net Cash Provided (Used) by Investing Activities (1,174,360) Net Increase (Decrease) in Cash and Cash Equivalents 264,994 Cash and Cash Equivalents at Beginning of Year 1,441,451 Cash and Cash Equivalents at End of Year $ 1,706,445 14 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income $ 3,185,951 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization expense 1,124,075 Provision for uncollectible accounts 3,302,662 Change in assets and liabilities: (Increase) decrease in accounts receivable (3,207,352) (Increase) decrease in due from other funds (1,758) (Increase) decrease in prepaid expenses 55,667 (Increase) decrease in inventory (113,034) Increase (decrease) in claims payable 1,979 Increase (decrease) in due to other funds 5,462 Increase (decrease) in accrued expenses 594,910 Total Adjustments 1,762,611 Net Cash Provided by Operating Activities $ 4,948,562 The notes to the financial statements are an integral part of this statement. HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 15 (1) Significant Accounting Policies. A. Financial Reporting Entity. Hancock County is a political subdivision of the State of Mississippi. The county is governed by an elected five-member Board of Supervisors. Generally accepted accounting principles require Hancock County to present these financial statements on the primary government and its component units which have significant operational or financial relationships with the county. State law pertaining to county government provides for the independent election of county officials. The following officials are all part of the county legal entity and therefore are reported as part of the general purpose financial statements. • Board of Supervisors • Chancery Clerk • Circuit Clerk • Justice Court Clerk • Purchase Clerk • Tax Assessor-Collector • Sheriff The component units discussed in Note 1(B) below are included in the county's general purpose financial statements. B. Individual Component Unit Disclosures. Blended Component Unit The Hancock County Improvement Corporation was incorporated as a nonprofit under Section 31-8-3, Miss. Code Ann. (1972), which allows counties to enter into lease agreements with any corporation. Although legally separate from the primary government, the corporation is so intertwined with the primary government that it is, in substance, the same as the primary government. Therefore, the corporation's balances and transactions are blended with the balances and transactions of the primary government. The corporation's directors are comprised solely of the five members of the Board of Supervisors. The Corporation produces a financial benefit (through its ability to incur debt without including the debt within the limitation on bonded indebtedness established by law) and imposes a financial burden on the primary government by obligating funds to repay the debt pursuant to a lease agreement. HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 16 Discretely Presented Component Units The component units columns in the combined financial statements include the financial data of the following component units of the county. They are reported in a separate column to emphasize that they are legally separate from the county. The majority of the members of the governing bodies of these component units are appointed by the Hancock County Board of Supervisors. • The county operates the following nine legally separate fire protection districts: Bayside Park Fire Protection District Clermont Harbor Lakeshore Fire Protection District Diamondhead Fire Protection and Waste Disposal District East Hancock Fire Protection District Fenton Fire Protection District Kiln Fire Protection District Leetown Fire Protection District West Hancock Fire Protection District Post 58 Fire Protection District The fire protection districts were created by the county under Section 19-5-151, Miss. Code Ann. (1972), for the purpose of providing fire protection for the citizens of the respective districts. The Board of Supervisors may, at its discretion, levy an ad valorem tax for the support of the districts. The board did levy a four mill tax for each district during the fiscal year. • Hancock County Human Resource Agency was created by the county under Section 17-15-1, Miss. Code Ann. (1972), for the purpose of administering programs conducted by community action agencies, limited purpose agencies and related programs authorized by federal law. The Board of Supervisors provided $119,533 in financial support to the entity during the fiscal year. • Hancock Medical Center was created by the county with broad corporate powers under Section 41-13-15, Miss. Code Ann. (1972), for the purpose of providing health care to the citizens of Hancock County. The county holds title to the real property, has issued a significant amount of general obligation bonds to provide support for the hospital's capital facilities, has the power to impose its will on the hospital through its budget approval authority, and is authorized to levy taxes for maintenance and operation of the hospital. • Hancock County Port and Harbor Authority was created by the county under Section 59-9-1, Miss. Code Ann. (1972), for the purpose of developing, constructing, maintaining and operating harbors, seaports and industrial parks within the county. The county may impose its will on the authority through its ability to modify or approve rate changes affecting revenues and is authorized to levy taxes for support of the authority. HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 17 CONDENSED FINANCIAL STATEMENTS - DISCRETELY PRESENTED COMPONENT UNITS Balance Sheets Governmental Proprietary Funds Funds Hancock Hancock County Human Port and Port and Hancock Fire Resource Harbor Harbor Medical Districts Agency Commission Total Commission Center Total Assets: Current assets $ 25,905 49,082 652,228 727,215 3,187,391 8,287,826 11,475,217 Noncurrent assets 7,429 7,429 204,949 187,880 392,829 Property, plant and equipment 35,382 10,587,466 10,622,848 5,884,329 10,169,053 16,053,382 Total Assets $ 25,905 84,464 11,247,123 11,357,492 9,276,669 18,644,759 27,921,428 Liabilities: Current liabilities $ 24,860 25,354 202,204 252,418 2,124,977 2,489,918 4,614,895 Notes payable 1,075,000 9,067,880 10,142,880 Capital lease payable 850,978 850,978 Bonds payable 191,077 191,077 Total Liabilities 24,860 25,354 202,204 252,418 3,391,054 12,408,776 15,799,830 Equity: Investment in general fixed assets 35,382 10,587,466 10,622,848 Contributed capital 4,560,669 4,560,669 Retained earnings 1,324,946 6,235,983 7,560,929 Fund balances 1,045 23,728 457,453 482,226 Total Equity 1,045 59,110 11,044,919 11,105,074 5,885,615 6,235,983 12,121,598 Total Liabilities and Equity $ 25,905 84,464 11,247,123 11,357,492 9,276,669 18,644,759 27,921,428 [...].. .HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 Governmental Funds Statements of Revenues, Expenditures and Changes in Equity County Fire Districts Revenues Expenditures: Operating and other Total 295,008 222,988 2,243,986 2,761,982 320,995 2,373,646 2,989,504 145 Excess of revenues over (under) expenditures Hancock Port and Harbor Commission... Beginning restated 900 2,182 402,558 405,640 1,045 23,728 457,453 482,226 Hancock Port and Harbor Commission Hancock Medical Center Total 1,881,043 22,283,124 24,164,167 240,810 1,397,422 883,265 18,456,719 1,124,075 19,854,141 242,811 2,943,140 3,185,951 25,420 25,420 (495,585) (560,209) Equity - Ending $ Proprietary Funds Statements of Revenues, Expenses and Changes in Equity Operating revenues Operating . pertaining to county government provides for the independent election of county officials. The following officials are all part of the county legal entity and therefore are reported as part of the general. separate from the county. The majority of the members of the governing bodies of these component units are appointed by the Hancock County Board of Supervisors. • The county operates the following nine. the financial statements are an integral part of this statement. HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 15 (1) Significant Accounting Policies. A. Financial