HANCOCK COUNTY TABLE OF CONTENTS FINANCIAL SECTION_part4 ppt

HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 30 Interfund Interfund Receivables Payables Agency Funds: Pearl River Junior College maintenance 4,855 Pearl River Junior College capital 3,426 Pearl River development 894 Total 9,175 0 Total Due From/To Other Funds $ 152,871 152,871 Advances to/from Other Funds General Fund $ 20,063 0 Special Revenue Funds: Canteen 2,482 18,563 McLeod Park 2,482 Total 2,482 21,045 Debt Service Fund: County fair 0 1,500 Total Advances to/from Other Funds $ 22,545 22,545 (10) Fixed Assets. Activity in the General Fixed Assets Group for the primary government for the year ended September 30, 1995, was as follows: Balance Balance Oct. 1, 1994 Additions Deletions Sept. 30, 1995 Land $ 614,273 614,273 Buildings 10,918,720 915,974 11,834,694 Improvements other than buildings 22,586 22,586 Construction in progress 419,542 496,432 915,974 Mobile equipment 2,043,531 130,711 21,826 2,152,416 Other furniture and equipment 800,556 89,780 5,929 884,407 Leased property under capital leases 535,478 222,921 758,399 Total $ 15,354,686 1,855,818 943,729 16,266,775 HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 31 Activity in the General Fixed Assets Group for the governmental component units for the year ended September 30, 1995, was as follows: Balance Balance Oct. 1, 1994 Additions Deletions Sept. 30, 1995 Land $ 272,498 272,498 Buildings 604,979 604,979 Improvements other than buildings 7,546,865 1,997,062 9,543,927 Other furniture and equipment 217,714 497 16,767 201,444 Total $ 8,642,056 1,997,559 16,767 10,622,848 The following is a summary of Proprietary Fund Type fixed assets for the proprietary component units at September 30, 1995: Hancock County Hancock Port and Harbor Medical Commission Center Total Land $ 2,522,648 1,168,884 3,691,532 Buildings 2,079,256 4,259,026 6,338,282 Improvements other than buildings 2,234,529 2,234,529 Track and bed 1,519,899 1,519,899 Mobile equipment 5,594,586 5,594,586 Equipment 268,420 4,501,049 4,769,469 Railroad equipment 76,722 76,722 Total 8,701,474 15,523,545 24,225,019 Less: Accumulated depreciation 2,817,145 5,354,492 8,171,637 Total $ 5,884,329 10,169,053 16,053,382 (11) Claims and Judgments. Risk Financing. The county is exposed to risk of loss related to workers' compensation for injuries to its employees. On August 1, 1990, the county decided to stop carrying workers' compensation insurance because of its prohibitive cost and joined the Mississippi Public Entity Workers' Compensation Trust, a public entity risk pool, to cover its exposure to risk of loss. The pool was formed on January 1, 1990, by the Mississippi Association of Supervisors, Inc., pursuant to Section 71-3-75, Miss. Code Ann. (1972), to provide workers' compensation insurance for the benefit of participating counties and various other political subdivisions in the State of Mississippi. The county pays premiums to the pool for its workers' compensation insurance coverage and the participation agreement provides that the pool will be self-sustaining through member premiums. The retention for the pool is $350,000 for each accident and completely covers all statutory limits set by the Workers' Compensation Commission. Risk of loss is remote for claims exceeding the pool's retention liability. However, the pool also has catastrophic reinsurance coverage of $1,000,000 per accident, provided by Employers Reinsurance Corporation, effective from January 1, 1995 to January 1, 1996. The pool may make an overall supplemental assessment or declare a refund depending on the loss experience of all the entities it insures. HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 32 The county is also exposed to risk of loss relating to employee health and accident coverage. On September 1, 1990, the county joined the Mississippi Association of Supervisors Employee Benefit Trust, a public entity risk pool, to account for and finance its uninsured risk of loss. The pool was formed by the Mississippi Association of Supervisors, Inc., pursuant to Section 25-15-101, Miss. Code Ann. (1972), to provide health and accident insurance for the benefit of participating counties in the State of Mississippi. Premium payments to the pool are determined on an actuarial basis. The pool services all claims for risk of loss to which the county is exposed. The county purchases commercial insurance to cover all claims in excess of premium contributions. Claims expenses and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. At September 30, 1995, there was no liability because the county's cash on deposit in risk pool exceeded the pool's accrued unpaid claims at year end in the amount of $190,773, reported on the combined balance sheet in the following fund types: General $122,234 Special Revenue 65,392 Trust and Agency 3,147 Total $190,773 (12) Lease Obligations. As Lessee: The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 1995: Primary Government Amounts Year Ended September 30: 1996 $ 8,649 1997 8,649 1998 8,649 1999 8,649 2000 8,649 Later years 112,427 Total Minimum Payments Required $ 155,672 Hancock Medical Center Year Ended September 30: 1996 $ 84,130 1997 59,492 1998 11,361 Total Minimum Payments Required $ 154,983 HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 33 The total rentals for the primary government amounted to $8,649 for the fiscal year ended September 30, 1995. Capital. As Lessee: The following is an analysis of property leased under capital leases by major classes as of September 30, 1995: General Fixed Assets Classes of Property Group Leased Property of the Primary Government Mobile equipment $ 328,255 Other furniture and equipment 430,144 Leased Property of the Primary Government $ 758,399 The Hancock Medical Center has various capital leases which expire at various dates. For capital leases, the equipment is recorded as mobile equipment subject to depreciation. The following is a schedule by years of future minimum lease payments payable under capital leases together with the present value of the net minimum lease payables as of September 30, 1995: Primary Government General Long-term Debt Group Year Ending September 30: 1996 $ 174,882 1997 174,881 1998 151,059 1999 105,313 2000 29,269 Later years Total Minimum Lease Payments 635,404 Less: Amount representing interest 52,947 Present Value of Net Minimum Lease Payments $ 582,457 HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 34 Hancock Medical Center Proprietary Component Unit Year Ending September 30: 1996 $ 300,116 1997 272,034 1998 272,034 1999 270,790 2000 128,560 Total Minimum Lease Payments 1,243,534 Less: Amount representing interest 151,022 Present Value of Net Minimum Lease Payments 1,092,512 Less: Current portion 241,534 Long-term Portion $ 850,978 (13) Long-term Debt. The following individual liabilities are reported on the combined balance sheet at September 30, 1995: Final Amount Interest Maturity Description and Purpose Outstanding Rates Date Primary Government - General Long-term Debt Account Group A General Obligation Bonds: Jail building $ 1,250,000 9.3, 9.5 3-2000 Hancock Medical Center 725,000 8.25, 9 8-2000 Fairgrounds construction 95,000 6.4, 9 9-2007 County building 135,000 6.3, 6.8 2-1997 Sand beach construction 1,750,000 5, 5.25 2-2005 1993 refunding 1,600,000 3.1, 4.6 2-2007 Total $ 5,555,000 B. Capital Leases: Computer $ 162,831 4.35 7-1999 Motorgraders 154,252 4.5 1-1999 Excavator 59,078 4.24 11-1997 E-911 206,296 4.75 4-2000 Total $ 582,457 C. Other Loans: Reappraisal $ 100,000 4.8 3-96 HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 35 Component Units - Proprietary Final Amount Interest Maturity Description and Purpose Outstanding Rates Date A. General Obligation Bonds: Port and harbor development $ 795,000 9.8, 11 6-2004 Airport improvement bonds 365,000 10 Hospital refunding 1992* 9,530,000 5.4, 7.5 8-2012 Total $ 10,690,000 B. Capital Leases: Various mobile equipment leases for Hancock Medical Center $ 1,092,512 Various Various C. Other Loans: Rural development loan $ 56,667 No interest Not available State of Mississippi revolving fund 202,911 3 12-1999 Total $ 259,578 * Hospital refunding bonds are shown on the balance sheet net of unamortized discounts of $132,120. Annual requirements to amortize outstanding long-term debt reported in the General Long-term Debt Account Group are as follows: Year Ending September 30 Bonds Leases Loans Total 1996 $ 1,015,841 174,882 104,800 1,295,523 1997 1,012,122 174,881 1,187,003 1998 1,035,638 151,059 1,186,697 1999 1,027,214 105,313 1,132,527 2000 1,039,554 29,269 1,068,823 Later years 1,735,738 1,735,738 Total 6,866,107 635,404 104,800 7,606,311 Less: Amounts representing interest 1,311,107 52,947 4,800 1,368,854 Total at Present Value $ 5,555,000 582,457 100,000 6,237,457 HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 36 Annual requirements to amortize outstanding long-term debt reported in proprietary component units are as follows: Year Ending September 30 Bonds/Notes Leases Total 1996 $ 1,178,397 300,116 1,478,513 1997 1,174,412 272,034 1,446,446 1998 1,165,583 272,034 1,437,617 1999 1,156,233 270,790 1,427,023 2000 1,099,335 128,560 1,227,895 Later years 11,691,485 11,691,485 Total 17,465,445 1,243,534 18,708,979 Less: Amounts representing interest 6,515,867 151,022 6,666,889 Less: Unamortized discounts 132,120 132,120 Total at Present Value $ 10,817,458 1,092,512 11,909,970 Legal Debt Margin - The amount of general obligation bonded debt that can be incurred by the county is limited by state statute. Total outstanding general obligation bonded debt during a year can be no greater than 15% of assessed value of the taxable property within the county, according to the then last completed assessment for taxation. However, the limitation is increased to 20% whenever a county issues bonds to repair or replace washed out or collapsed bridges on the public roads of the county. As of September 30, 1995, the amount of outstanding general obligation bonded debt was equal to 3.38% of the latest property assessments. Prior Year Defeasance of Debt - In prior years, the county defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the county's financial statements. On September 30, 1995, $1.46 million bonds outstanding were considered defeased. The following changes occurred in liabilities reported at year end: Balance Balance Styling Oct. 1, 1994 Additions Reductions Sept. 30, 1995 General Long-term Debt Account Group: General obligation bonds $ 6,085,000 530,000 5,555,000 Limited obligation notes 126,000 126,000 Equipment notes 50,187 50,187 Capital leases 481,817 222,921 122,281 582,457 Other loans 100,000 100,000 Total $ 6,743,004 322,921 828,468 6,237,457 Governmental Component Units: Compensated absences $ 0 6,117 0 6,117 HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 37 Proprietary Component Units: Balance Balance Styling Oct. 1, 1994 Additions Reductions Sept. 30, 1995 Compensated absences $ 377,659 87,173 464,832 General obligation bonds* 10,990,000 300,000 10,690,000 Equipment notes 55,485 55,485 Capital leases 35,056 1,206,138 148,682 1,092,512 Other loans 326,667 67,089 259,578 Total $ 11,784,867 1,293,311 571,256 12,506,922 * General obligation bonds payable is shown on the balance sheet net of unamortized discounts in the amount of $132,120. (14) Contingencies. Federal Grants - The county has received federal grants for specific purposes that are subject to audit by the grantor agencies. Entitlements to these resources are generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal regulations, including the expenditure of resources for allowable purposes. Any disallowance resulting from a grantor audit may become a liability of the county. Litigation - The county is party to legal proceedings, many of which occur in the normal course of governmental operations. It is not possible at the present time to estimate ultimate outcome or liability, if any, of the county with respect to the various proceedings. However, the county's legal counsel believes that ultimate liability resulting from these lawsuits will not have a material adverse effect on the financial condition of the county. General Obligation Debt Contingencies - The county is contingently liable for certain obligations which are repaid by governmental entities. The principal amount of such debt outstanding at year end consists of the following: Balance Styling September 30, 1995 General obligation hospital bonds and notes $ 9,530,000 Hospital revenue bonds and notes 1,160,000 Total $ 10,690,000 HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 38 (15) No Commitment Debt (Not Included in Financial Statements). No commitment debt is repaid only by the entities for whom the debt was issued and includes debt that either bears the county's name or for which a moral responsibility may exist that is not an enforceable promise to pay. No commitment debt explicitly states the absence of obligation by the county other than possibly an agreement to assist creditors in exercising their rights in the event of default. Because a default may adversely affect the county's own ability to borrow, the principal amount of such debt outstanding at year end is disclosed as follows: Balance Styling September 30, 1995 Industrial revenue bonds and notes $ 6,065,000 (16) Related Organization. The county Board of Supervisors is responsible for appointing a voting majority of the members of the board of the Hancock County Wastewater District, but the county's accountability for this organization does not extend beyond making the appointments. During the year, the county wrote off a loan receivable in the amount of $7,500 which was owed by this organization. The county provided no financial support to this organization during the year. (17) Joint Ventures. The county participates in the following joint ventures: Hancock County is a participant with the Cities of Pass Christian and Waveland in a joint venture, authorized by Section 49-17-171, Miss. Code Ann. (1972), to operate the Southern Regional Wastewater Management District. The joint venture was created to provide wastewater management and is governed by a three member board with each entity appointing one board member. By contractual agreement, the county's appropriation to the joint venture this year was $377,152. Complete financial statements for the district can be obtained from the director. Hancock County is a participant with the Cities of Bay St. Louis and Waveland in a joint venture, authorized by Section 39-3-8, Miss. Code Ann. (1972), to operate the Hancock County Library System. The joint venture was created to provide library services and is governed by a five member board. Hancock County and Bay St. Louis each appoint two board members and Waveland appoints one board member. By contractual agreement, the county's appropriation this year to the joint venture was $367,184. Complete financial statements for the library can be obtained from the Hancock County Library Board. (18) Jointly Governed Organizations. The county participates in the following jointly governed organizations: Pearl River Community College operates in a district composed of the Counties of Hancock, Pearl River, Lamar, Marion, Jefferson Davis and Forrest. The Hancock County Board of Supervisors appoints two of the 16 members of the college board of trustees. The county contributed only a small part of the entity's total revenues. HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 39 The South Mississippi Planning and Development District provides services for the following counties: Hancock, Jefferson Davis, Covington, Jones, Wayne, Marion, Lamar, Forrest, Perry, Greene, Pearl River, Stone, George, Harrison and Jackson. The Hancock County Board of Supervisors appoints one of the 27 members of the district's board of directors. The county contributed only a small part of the entity's total revenues. The Gulf Regional Planning and Development District provides services for the following counties: Hancock, Harrison and Jackson. The Hancock County Board of Supervisors appoints three of the nine members of the district's board of directors. The county contributed only a small part of the entity's total revenues. The Region XIII Commission provides services for the following counties: Hancock, Harrison, Pearl River and Stone. The Hancock County Board of Supervisors appoints one of the four members of the commission's board of commissioners. The county contributed only a small part of the entity's total revenues. The Mississippi Regional Housing Authority IV provides services for the following counties: Hancock, Covington, Jones, Wayne, Marion, Lamar, Forrest, Perry, Greene, Pearl River, Stone, George, Harrison and Jackson. The Hancock County Board of Supervisors appoints one of the 15 members of the district's board of directors. The county provided no financial support to the housing authority in fiscal year 1995. The Gulf Coast Community Action Agency provides services to the following member governments: the Counties of Hancock, Harrison, Greene and George and the Cities of Biloxi, Bay St. Louis and Gulfport. The Hancock County Board of Supervisors appoints one of the 24 board members. The county contributed only a small part of the entity's total revenues. (19) Defined Benefit Pension Plan. Primary Government. Plan Description. Hancock County, Mississippi, contributes to the Public Employees' Retirement System of Mississippi (PERS), a cost-sharing, multiple-employer, defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. Benefit provisions are established by state law and may be amended only by the State of Mississippi Legislature. PERS issues a publicly available financial report that includes financial statements and required supplementary information. That information may be obtained by writing to Public Employees’ Retirement System, PERS Building, 429 Mississippi Street, Jackson, MS 39201-1005 or by calling 1-800-444-PERS. Funding Policy. PERS members are required to contribute 7.25% of their annual covered salary and the county is required to contribute at an actuarially determined rate. The current rate is 9.75% of annual covered payroll. The contribution requirements of PERS members are established and may be amended only by the State of Mississippi Legislature. The county's contributions (both employer and employee shares) to PERS for the years ending September 30, 1995, 1994 and 1993 were $555,232, $488,304 and $444,747, respectively, equal to the required contributions for each year. Component Units. All component units of the county also participate in the Public Employees' Retirement System. Their respective contributions to PERS for the years ending September 30, 1995, 1994 and 1993 were equal to the required contributions for each year. [...].. .HANCOCK COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 (20) Subsequent Events Subsequent to September 30, 1995, Hancock County issued the following debt obligations: Issue Date Interest Rate 10-15-95 11-15-95 5.15 5.25 Issue Amount $ Type of Financing Source of Financing 85,000 189,012 Loan Lease purchase General Fund . composed of the Counties of Hancock, Pearl River, Lamar, Marion, Jefferson Davis and Forrest. The Hancock County Board of Supervisors appoints two of the 16 members of the college board of trustees Organization. The county Board of Supervisors is responsible for appointing a voting majority of the members of the board of the Hancock County Wastewater District, but the county& apos;s accountability. following counties: Hancock, Harrison and Jackson. The Hancock County Board of Supervisors appoints three of the nine members of the district's board of directors. The county contributed