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_part4 pptx

JONES COUNTY (This page left blank intentionally) 30 JONES COUNTY Schedule of Federal Financial Assistance For the Year Ended September 30, 1995 Federal Grantor/ Pass-through Grantor/ Program Title U.S Department of Housing and Urban Development/Mississippi Department of Economic and Community Development/ Passed-through the Division of Community Services State of Mississippi Community development block grant program Community development block grant program Community development block grant program Catalog of Federal Domestic Assistance Number Pass-through Grantor's Number 14.219 3-113A-034-ED-IF01 $ 14.219 14.219 Program or Award Amount Federal Revenue Federal Expenditures 474,000 $ 179,851 179,851 4-034-ED-1F01 535,000 428,901 428,901 4-34-ED-LN01 134,000 87,500 87,500 696,252 696,252 Total U.S Department of Housing and Urban Development U.S Department of Transportation Federal Highway Administration/ Passed-through the Mississippi Department of Transportation Bridge inspection program Federal Emergency Management Agency/ Passed-through the Mississippi Emergency Management Agency 1995 emergency management assistance 20.205 5,360 5,360 5,360 83.503 25,646 25,646 25,646 727,258 727,258 Total Federal Financial Assistance $ 31 JONES COUNTY (This page left blank intentionally) 32 JONES COUNTY SPECIAL REPORTS 33 JONES COUNTY (This page left blank intentionally) 34 OFFICE OF THE STATE AUDITOR STEVEN A PATTERSON AUDITOR 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 July 8, 1996 Members of the Board of Supervisors Jones County, Mississippi We have audited the primary government financial statements of Jones County, Mississippi, as of and for the year ended September 30, 1995, and have issued our report dated July 8, 1996 The Independent Auditor's Report on the primary government financial statements is qualified because the primary government financial statements not include the financial data of the county's component units, which should be included in conformity with generally accepted accounting principles We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the primary government financial statements are free of material misstatement The management of Jones County, Mississippi, is responsible for establishing and maintaining an internal control structure In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of primary government financial statements in accordance with generally accepted accounting principles Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate In planning and performing our audit of the primary government financial statements of Jones County, Mississippi, for the year ended September 30, 1995, we obtained an understanding of the internal control structure With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the primary government financial statements and not to provide an opinion on the internal control structure Accordingly, we not express such an opinion We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the county's ability to record, process, summarize and report financial data consistent with the assertions of management in the primary government financial statements The reportable condition noted during our consideration of the 35 3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211 (601) 364-2888 FAX (601) 364-2828 internal control structure is described in the accompanying "Schedule of Auditor's Findings and Recommendations." A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the primary government financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above However, we not believe the reportable condition described in the accompanying "Schedule of Auditor's Findings and Recommendations" is a material weakness 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 36 OFFICE OF THE STATE AUDITOR STEVEN A PATTERSON AUDITOR INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS July 8, 1996 Members of the Board of Supervisors Jones County, Mississippi We have audited the primary government financial statements of Jones County, Mississippi, as of and for the year ended September 30, 1995, and have issued our report thereon dated July 8, 1996 We have also audited Jones County, Mississippi's compliance with requirements applicable to major federal financial assistance programs and have issued our report thereon dated July 8, 1996 The Independent Auditor's Report on the primary government financial statements is qualified because the primary government financial statements not include the financial data of the county's component units, which should be included in conformity with generally accepted accounting principles We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments Those standards and OMB Circular A128 require that we plan and perform the audit to obtain reasonable assurance about whether the primary government financial statements are free of material misstatement and about whether Jones County, Mississippi, complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program In planning and performing our audits for the year ended September 30, 1995, we considered the county's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the county's primary government financial statements and on its compliance with requirements applicable to major federal financial assistance programs and not to provide assurance on the internal control structure This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs We have addressed policies and procedures relevant to our audit of the primary government financial statements in a separate report dated July 8, 1996 The management of Jones County, Mississippi, is responsible for establishing and maintaining an internal control structure In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of primary government financial statements in accordance with generally accepted accounting principles and that federal financial assistance programs are managed in compliance with applicable laws and regulations Because of inherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate 37 3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211 (601) 364-2888 FAX (601) 364-2828 For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: General Requirements Political Activity Davis-Bacon Act Civil Rights Cash Management Allowable Costs/Cost Principles Administrative Requirements Specific Requirements Types of Services Matching, Level of Effort or Earmarking Reporting Special Requirements Claims for Advances and Reimbursements Amounts Claimed or Used for Matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk During the year ended September 30, 1995, Jones County, Mississippi, expended 96 percent of its total federal financial assistance under the major federal financial assistance program: Community development block grant We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the county's major federal financial assistance program, which is identified in the accompanying Schedule of Federal Financial Assistance under Supplemental Information, as listed in the table of contents Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures Accordingly, we not express such an opinion Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above 38 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 39 JONES COUNTY (This page left blank intentionally) 40 ... THE STATE AUDITOR STEVEN A PATTERSON AUDITOR INDEPENDENT AUDITOR'' S REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF THE PRIMARY GOVERNMENT FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE... 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 36 OFFICE... Department of Audit 36 OFFICE OF THE STATE AUDITOR STEVEN A PATTERSON AUDITOR INDEPENDENT AUDITOR'' S SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE