STATE OF MISSISSIPPI STEVEN A. PATTERSON State Auditor WILLIAM S. JONES, CPA Director, Department of Audit ED P. YARBOROUGH, CPA Director, Division of County Audits _part6 docx

OFFICE OF THE STATE AUDITOR STEVEN A. PATTERSON AUDITOR 3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211 (601) 364-2888 FAX (601) 364-2828 47 INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS April 15, 1996 Members of the Board of Supervisors Jefferson Davis County, Mississippi We have audited the primary government financial statements of Jefferson Davis County, Mississippi, as of and for the year ended September 30, 1995, and have issued our report thereon dated April 15, 1996. The independent auditor's report on the primary government financial statements is qualified because the primary government financial statements do not include the financial data of component units, which should be included in order to conform with generally accepted accounting principles. In connection with our audit of the primary government financial statements of Jefferson Davis County, Mississippi, as of and for the year ended September 30, 1995, and with our consideration of the county's internal control structure used to administer federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments, we selected certain transactions applicable to the county's nonmajor federal financial assistance program for the year ended September 30, 1995. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on Jefferson Davis County, Mississippi's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that Jefferson Davis County, Mississippi, had not complied, in all material respects, with those requirements. Also, the results of our procedures did not disclose any immaterial instances of noncompliance with those requirements. This report is intended for the use of the management, the cognizant agency and the appropriate grantor agencies. This is not intended to limit the distribution of this report, which is a matter of public record. WILLIAM S. JONES, CPA Director, Department of Audit 48 JEFFERSON DAVIS COUNTY (This page left blank intentionally) OFFICE OF THE STATE AUDITOR STEVEN A. PATTERSON AUDITOR 3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211 (601) 364-2888 FAX (601) 364-2828 49 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE LAWS AND REGULATIONS April 15, 1996 Members of the Board of Supervisors Jefferson Davis County, Mississippi We have audited the primary government financial statements of Jefferson Davis County, Mississippi, as of and for the year ended September 30, 1995, and have issued our report thereon dated April 15, 1996. We conducted our audit in accordance with generally accepted auditing standards and the procedures prescribed by the State Auditor, and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Independent Auditor's Report on the primary government financial statements is qualified because the primary government financial statements do not include the financial data of component units, which should be included in order to conform with generally accepted accounting principles. As required by the state legal compliance audit program prescribed by the Office of the State Auditor, we have also performed procedures to test compliance with certain state laws and regulations. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the county's compliance with these requirements. Accordingly, we do not express such an opinion. The results of our procedures and our audit of the primary government financial statements disclosed a certain immaterial instance of noncompliance with a state law. Our finding and recommendation and your response is included in the accompanying "Schedule of Auditor's Findings and Recommendations." The finding described in the accompanying "Schedule of Auditor's Findings and Recommendations" came to our attention as a result of the audit procedures and tests that we applied. For those items not tested, nothing came to our attention that would lead us to believe that Jefferson Davis County, Mississippi, had not complied with applicable state laws and regulations, other than the law for which we noted a violation in our testing referred to above. This report is intended for the use of the management. This is not intended to limit the distribution of this report, which is a matter of public record. WILLIAM S. JONES, CPA Director, Department of Audit 50 JEFFERSON DAVIS COUNTY (This page left blank intentionally) 51 JEFFERSON DAVIS COUNTY FINDINGS AND RECOMMENDATIONS 52 JEFFERSON DAVIS COUNTY (This page left blank intentionally) 53 JEFFERSON DAVIS COUNTY Schedule of Auditor's Findings and Recommendations For the Year Ended September 30, 1995 A. Finding for Independent Auditor's Report on the Internal Control Structure Based on an Audit of the Primary Government Financial Statements Performed in Accordance with "Government Auditing Standards": Board of Supervisors. Reportable Condition Finding The Financial Institution Reform, Recovery and Enforcement Act (FIRREA), requires banks or other financial institutions to formally validate or approve their depository contracts with counties and other public bodies. There are three requirements that will ensure an enforceable security in collateral: 1. The agreement must be in writing. 2. The agreement must be approved by the bank's board of directors or other appropriate governing body and be reflected in the minutes of the body. 3. The agreement must be maintained as an official record of the bank. Jefferson Davis County has not executed this agreement with the depository that handles the county's funds. Recommendation The county should ensure that this agreement is executed and maintained as required by FIRREA. Since the requirements of FIRREA have not been met pursuant to an executed collateral security agreement between the county and the depository, the county may not have a perfected security interest in the collateral. Board of Supervisors' Response This was adopted at the April 1, 1996 board meeting. 54 B. Finding for Independent Auditor's Report on Compliance with State Laws and Regulations: Circuit Clerk. Finding Section 7-7-211, Miss. Code Ann. (1972), gives the Office of the State Auditor the authority to prescribe accounting systems. The criminal account bank statements were not reconciled to the cash journal. Recommendation The Circuit Clerk should reconcile the bank account to the cash journal as prescribed in the Mississippi County Financial Accounting Manual. Circuit Clerk's Response I will continue to work on this account and try to bring it in reconciliation to the cash journal. . County, Mississippi We have audited the primary government financial statements of Jefferson Davis County, Mississippi, as of and for the year ended September 30, 1995, and have issued our report. administer federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A- 128, Audits of State and Local Governments, we selected certain transactions applicable. COMPLIANCE WITH STATE LAWS AND REGULATIONS April 15, 1996 Members of the Board of Supervisors Jefferson Davis County, Mississippi We have audited the primary government financial statements of Jefferson