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 pot

52 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 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 53 INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 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. 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 the county's component units, which should be included in conformity with generally accepted accounting principles. In connection with our audit of the primary government financial statements of Jones 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 certain nonmajor federal financial assistance programs 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 Jones 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 Jones 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 54 JONES 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 55 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE LAWS AND REGULATIONS 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 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 the county's component units, which should be included in conformity 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 certain immaterial instances of noncompliance with state laws and regulations. Our findings and recommendations and your responses are included in the accompanying "Schedule of Auditor's Findings and Recommendations." The findings 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 Jones County, Mississippi, had not complied with applicable state laws and regulations, other than those laws and regulations for which we noted violations 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 56 JONES COUNTY (This page left blank intentionally) 57 JONES COUNTY FINDINGS AND RECOMMENDATIONS 58 JONES COUNTY (This page left blank intentionally) 59 JONES 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": REPORTABLE CONDITION Inventory Control Clerk. Finding Section 7-7-211, Miss. Code Ann. (1972), gives the Office of the State Auditor the authority to prescribe an accounting system for general fixed assets. As reported in the prior years' audit reports, we noted the following weaknesses and deviations from the prescribed accounting system for general fixed assets contained in the Mississippi County Financial Accounting Manual: a. The Inventory Control Clerk failed to include numerous items on the additions to fixed assets purchased during the year that are required to be on inventory. b. The Inventory Control Clerk failed to perform a proper physical inventory at the end of the fiscal year. In addition, we noted that numerous items were deleted from inventory without reasons for the deletions being spread upon the board minutes. Recommendation The Inventory Control Clerk should comply with the accounting system for general fixed assets as prescribed in the Mississippi County Financial Accounting Manual. We further recommend that the Inventory Control Clerk maintain a written record of daily changes in inventory. All deletions of fixed assets should be spread upon the board minutes. Inventory Control Clerk's Response Any additions left off the September 30, 1996 inventory list will be added to the inventory listing. I will require a positive confirmation of fixed assets owned at year end September 30, 1996, by department heads and their response will be reconciled to the inventory listing. I will require department heads to furnish justification for any items deleted. Any sales and deletions will be spread upon the board minutes. In the future, the payables clerk is to notify the Inventory Control Clerk when expenditures are received for purchased additions, and the inventory control numbers will be assigned when the purchase is coded for payment. 60 B. Findings for Independent Auditor's Report on Compliance with State Laws and Regulations: Chancery Clerk. 1. Finding As reported in the prior year's audit report, Section 27-35-515, Miss. Code Ann. (1972), requires the Chancery Clerk, as the clerk of the Board of Supervisors, to distribute the proceeds of the railcar tax to the cities and other taxing districts. The Chancery Clerk deposited the entire proceeds of the railcar tax received from the state into the General Fund without distributing to the cities and other taxing districts their apportioned amounts. Recommendation The Chancery Clerk should apportion or distribute the proceeds of the railcar tax to the municipalities and other taxing districts in proportion to the number of miles of railroad in the municipality or other taxing districts to the number of miles of railroad in the entire county. Chancery Clerk's Response I am now in compliance with the required distribution for the current fiscal year. 2. Finding Section 27-65-231(3), Miss. Code Ann. (1972), requires that the proceeds of the additional tax on engaging in the business of renting motor vehicles collected by counties through the State Tax Commission be distributed to the municipalities and other taxing districts as if it were proceeds of ad valorem taxes. The Chancery Clerk deposited the entire proceeds of the rental car tax in the General Fund without distributing to municipalities and taxing districts their respective shares. Recommendation The Chancery Clerk should distribute rental car taxes as required by statute. Chancery Clerk's Response I was not aware of this requirement. I will distribute the taxes as required by statute. . 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. a matter of public record. WILLIAM S. JONES, CPA Director, Department of Audit OFFICE OF THE STATE AUDITOR STEVEN A. PATTERSON AUDITOR 3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211. AUDITOR& apos ;S REPORT ON COMPLIANCE WITH STATE LAWS AND REGULATIONS July 8, 1996 Members of the Board of Supervisors Jones County, Mississippi We have audited the primary government financial statements