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_part2 doc

YAZOO COUNTY Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types and Expendable Trust Funds For the Year Ended September 30, 1995 Exhibit B Governmental Fund Types General Revenues Property taxes Licenses, commissions and other revenue Fines and forfeitures Intergovernmental revenues: Federal sources State and local sources Charges for services Use of money and property Miscellaneous revenues Total Revenues Debt Service 3,146,568 1,230,189 1,151,555 206,713 178,034 $ Special Revenue 219,465 420 Expenditures General government Public Safety Public works Health & welfare Culture & recreation Conservation of natural resources Economic development & assistance Capital projects Debt service: Principal retirement Interest and fiscal charges Total Expenditures 2,879 100 1,210,647 62,301 62,301 157,783 111,785 5,458,590 206,073 2,412,073 189,189 286,362 137,045 9,363,686 1,402,875 2,287,687 1,100,615 5,786,701 213,301 189,320 122,947 38,460 1,402,875 2,578 68,072 148,751 4,225,118 Other Financing Sources (Uses) Proceeds of other debt Proceeds of limited obligation bonds Proceeds from sale of assets Operating transfers in Operating transfers out Total Other Financing Sources (Uses) 1,291,111 49,785 7,069,054 370,000 865,545 1,235,545 130,771 1,533,646 2,578 1,729,183 1,194,852 14,065,941 354,223 Excess of Revenues over (under) Expenditures (3,557,657) (24,898) (1,471,345) (2,578) (4,702,255) 2,397,390 729,093 2,397,390 3,915,000 1,448,654 30,738 (30,738) 3,185,907 1,448,654 29,912 826 (30,738) 759,005 (29,912) 3,185,907 7,761,044 288,387 (54,810) 1,714,562 (2,578) 3,058,789 (530,615) Fund Balances Beginning of year 3,846,044 1,113,228 Excess of Revenues and Other Sources over (under) Expenditures and Other Uses 1,457,322 494,848 16,428 1,437,983 Residual equity transfers End of year 5,528,312 56,113 113,992 5,954 3,511,397 2,129,904 988,830 325,533 213,301 189,320 122,947 38,460 Totals Memorandum Only Primary Government 426,178 178,454 206,073 1,735,304 620,656 189,189 107,190 130,991 4,579,341 Capital Projects Fiduciary Fund Type Expendable Trust 17,637 $ 582,613 1,745,709 The notes to the financial statements are an integral part of this statement 457,675 17,637 1,714,562 13,850 4,514,409 YAZOO COUNTY (This page left blank intentionally) YAZOO 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 Fund Special Revenue Funds Budget Revenues Property taxes Licenses, commissions and other revenue Fines and forfeitures Intergovernmental revenues: Federal sources State and local sources Charges for services Use of money and property Miscellaneous revenues Total Revenues End of year 10,030 220,148 420 220,148 420 933,323 189,189 55,324 62,600 4,760,473 (8,488) 26,192 1,611 (2,449) 16,867 6,656 1,485,738 191,668 1,693,609 185,012 207,871 114,390 206,831 3,313,015 114,052 5,954 3,504,683 (338) (200,877) 191,668 2,545,908 1,045,703 322,100 212,534 199,245 15,256 123,122 38,160 159,782 118,724 4,217,437 159,782 118,724 3,076,084 1,141,353 139,449 1,333,021 (1,333,021) 4,641,477 (15,256) 4,495,943 4,687,611 (191,668) 117,385 118,996 1,611 (1,182,928) (1,182,928) 759,930 759,006 (924) 1,448,653 1,448,653 877,315 878,002 687 265,725 265,725 (301,508) $ 206,749 178,034 4,626,221 Fund Balances Beginning of year 1,278,832 139,449 Excess of Revenues and Other Sources over (under) Expenditures and Other Uses 1,278,832 123,122 38,160 Other Financing Sources (Uses) (10,029) 2,545,908 1,045,703 322,100 212,534 199,245 Excess of Revenues over (under) Expenditures 3,135,254 941,811 162,997 53,713 65,049 4,743,606 Expenditures General government Public safety Public works Health and welfare Culture and recreation Education Conservation of natural resources Economic development and assistance Capital projects Debt service Other costs Total Expenditures 3,145,283 196,719 178,034 $ Actual Variance Favorable (Unfavorable) (301,508) 1,599,056 1,535,642 575,807 576,494 1,864,781 1,801,367 The notes to the financial statements are an integral part of this statement 10 Budget Actual Variance Favorable (Unfavorable) (15,256) Exhibit C Debt Service Funds Capital Projects Funds Budget Actual Variance Favorable (Unfavorable) 42,194 54,013 11,819 42,194 54,013 11,819 1,402,875 130,771 1,402,875 130,771 1,533,646 1,533,646 (21,157) (1,491,452) (1,479,633) 11,819 (12,273) (29,912) (17,639) 3,197,726 3,185,907 (11,819) (33,430) (51,069) (17,639) 1,706,274 1,706,274 471,047 471,050 0 437,617 419,981 1,706,274 1,706,274 Budget Actual 1,154,592 1,154,592 56,817 56,817 2,879 100 1,214,388 2,879 100 1,214,388 1,235,545 1,235,545 1,235,545 1,235,545 (21,157) Variance Favorable (Unfavorable) 11 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 (1) Significant Accounting Policies A Financial Reporting Entity Yazoo 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 Yazoo County to present these financial statements on the primary government and its component units which have significant operational or financial relationships with the county Management has chosen to omit from these financial statements the following component unit which has a significant operational or financial relationship with the county Accordingly, the financial statements not include the data of the county's component unit necessary for reporting in conformity with generally accepted accounting principles • Yazoo County Port Commission 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 • • • • • • • B Board of Supervisors Chancery Clerk Circuit Clerk Justice Court Clerk Purchase Clerk Tax Assessor-Collector Sheriff Blended Component Unit The Yazoo County Civic 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 The Corporation's board of directors consists of the Yazoo County Board of Supervisors 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 produces a financial benefit through its ability to finance the construction of capital facilities for the primary government and imposes a financial burden on the primary government by obligating funds to pay the debt pursuant to a lease agreement See Note 11 for further disclosure concerning the issuance of certificates of participation (COPs) and related capital facilities construction C Basis of Presentation Except for the effects on the general purpose financial statements for omission of the component unit described in Note 1(A), the accompanying general purpose financial statements have been prepared in conformity with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board 12 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 D Account Classifications The account classifications used in the financial statements conform to the broad classifications recommended in Governmental Accounting, Auditing and Financial Reporting as issued in 1988 by the Government Finance Officers Association and the Mississippi County Financial Accounting Manual as revised in 1993 by the Office of the State Auditor E Fund Accounting The financial activities of the county are recorded in individual funds and account groups used to report financial position and results of operations Fund accounting is used to demonstrate legal compliance and to aid financial management by segregating transactions relating to certain government functions or activities A fund is a separate accounting entity with a self-balancing set of accounts, segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with specific regulations, restrictions or limitations An account group is a financial reporting device designated to provide accountability for certain assets and liabilities that are not recorded in funds because they not directly affect net expendable available financial resources Account groups are presented for general fixed assets and general long-term obligations The following fund categories, which are further subdivided into separate "fund types", are utilized by the county: GOVERNMENTAL FUND TYPES General Fund - This fund is used to account for all activities of the general government for which a separate fund has not been established Special Revenue Funds - These funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to expenditures for specified purposes Special Revenue Funds account for, among others, certain federal grant programs, taxes levied with statutorily defined distributions and other resources restricted as to purpose Debt Service Funds - These funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs Capital Projects - These funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities Such resources are derived principally from proceeds of general obligation bond issues and federal grants FIDUCIARY FUND TYPES Expendable Trust Funds - These funds are used to account for assets held by the county in a formal trustee capacity where the principal and income may be expended in the course of designated operations Agency Funds - These funds account for various taxes, deposits and other monies collected or held by the county, acting in the capacity of an agent, for distribution to other governmental units or designated beneficiaries 13 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 ACCOUNT GROUPS General Fixed Assets - The General Fixed Assets Account Group is used to account for the fixed assets of the county General Long-term Debt - The General Long-term Debt Account Group is used to account for all long-term debt of the county F Basis of Accounting/Measurement Focus Governmental Fund Types and Expendable Trust and Agency Funds - All Governmental Funds and Expendable Trust Funds are accounted for using a current financial resources measurement focus With this measurement focus, only current assets and current liabilities are generally included on the balance sheet Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets The modified accrual basis of accounting is used by all Governmental Fund Types, Expendable Trust Funds and Agency Funds Under this method, revenues are recognized in the accounting period in which they become both available and measurable to finance operations during the year or to liquidate liabilities existing at the end of the year Available means collected in the current year or soon enough after year end to liquidate liabilities existing at the end of the year Significant revenue sources which are susceptible to accrual include intergovernmental revenues, consisting of grants, entitlements and shared revenues and charges for services Expenditures are recognized in the accounting period in which the fund liability is incurred Modifications to the accrual basis of accounting include: • • Property taxes are recognized as revenue when received because the remaining delinquent property taxes not collected before the close of the fiscal year are considered immaterial See Note 1M for further explanation • Principal and interest on general long-term debt are recognized when due • G Licenses, fees, fines and forfeits and other miscellaneous revenues are recognized when received since they normally are only measurable at that time Obligations for accumulated unpaid employee benefits are recognized when paid Budgetary Process and Accounting Process: Statutory requirements dictate how and when the county's budget is to be prepared Generally, in the month of August, prior to the ensuing fiscal year beginning each October 1, the Board of Supervisors of the county, using historical and anticipated fiscal data and proposed budgets submitted by the Sheriff and the Tax Assessor-Collector for his or her respective department, prepares an original budget for each of the Governmental Funds for said fiscal year The completed budget for the fiscal year includes for each fund every source of revenue, each general item of expenditure and the unencumbered cash and investment balances When during the fiscal year it appears to the Board of Supervisors that budgetary estimates will not be met, it may make revisions to the budget 14 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 Accounting: The county's budget is prepared principally on the cash basis of accounting All appropriations lapse at year end and there are no encumbrances to budget because state law does not require that funds be available when goods or services are ordered, only when payment is made H Cash and Investments State law authorizes the county to invest in interest bearing time certificates of deposit for periods of fourteen days to one year with depositories and in obligations of the U.S Treasury, State of Mississippi, or any county, municipality or school district of this state Further, the county may invest in certain repurchase agreements that have a term of less than fourteen days Cash includes amounts in demand deposits, all certificates of deposit and cash equivalents, which are short-term highly liquid investments that are readily convertible to cash (generally three months or less) Investments in governmental securities are stated at cost or amortized cost I Receivables Receivables are reported net of allowances for uncollectible accounts, where applicable J Interfund Receivables/Payables Interfund receivables and payables arise principally from loans and advances between county funds and transactions that have not resulted in the actual transfer of cash at the end of the fiscal year Interfund loans due in the subsequent fiscal year are reported as "Due To" and "Due From Other Funds" and noncurrent portions of interfund receivables and payables are reported as "Advances To" and "Advances From Other Funds" on the combined balance sheet The county has no interfund advances outstanding at the end of the fiscal year K Fixed Assets Fixed assets are not capitalized in the funds used to acquire or construct them Instead, capital acquisition and construction are reflected as expenditures in Governmental Funds and the related assets are reported in the General Fixed Assets Account Group All purchased fixed assets are stated at cost where historical records are available and at an estimated historical cost where no historical records exist Donated assets are valued at market value at the time of donation The costs of normal maintenance and repairs that not add to the value of assets or materially extend their respective lives are not capitalized; however, improvements are capitalized Interest expenditures are not capitalized on general fixed assets Public domain (infrastructure) fixed assets consisting of certain improvements other than buildings, such as roads, bridges, sidewalks, drainage systems, lighting systems and similar assets that are immovable and of value only to the county, are not capitalized Depreciation is not provided on general fixed assets 15 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 L Governmental Fund Equity The unreserved fund balances represent the amount available for budgeting future operations The reserved fund balances represent the amount that has been legally restricted to a specific purpose or that is not available for appropriation or expenditure The county had the following reserved fund balances at year end: Reserved for Debt Service - An account used to segregate a portion of fund balance for debt service resources legally restricted to the payment of general long-term debt principal and interest amounts maturing in future years Reserved for Cash on Deposit in Risk Pool - An account used to segregate a portion of fund balance for risk financing activities M Property Tax Revenues Numerous statutes exist under which the Board of Supervisors may levy property taxes The selection of authorities is made based on the objectives and responsibilities of the county Restrictions associated with property tax levies vary with the statutory authority The amount of increase in certain property taxes is limited by state law Generally, this restriction provides that these tax levies shall produce no more than 110% of the amount which resulted from the assessments of the previous year The Board of Supervisors, each year at a meeting in September, levies property taxes for the ensuing fiscal year which begins on October Real property taxes become a lien on January of the current year and personal property taxes become a lien on March of the current year Taxes on both real and personal property, however, are due on or before February of the next succeeding year Taxes on motor vehicles and mobile homes become a lien and are due in the month that coincides with the month of original purchase Generally accepted accounting principles require property taxes to be recognized at the levy date if measurable and available All property taxes are recognized as revenue when received Real property taxes are recognized as revenue when received because most delinquent real property taxes are collected by selling real property for taxes, together with all fees, penalties and damages accruing until date of sale, before the close of the fiscal year The remaining amount of real property not sold for taxes at the tax sale is considered immaterial; therefore, no end of year delinquent taxes receivable is recorded The amount of delinquent personal property taxes unpaid at year end is also considered immaterial Motor vehicle and mobile home taxes not meet the measurability and collectibility criteria for property tax recognition because the lien and due date cannot be established until the date of original purchase occurs N Intergovernmental Revenues in Governmental Funds Intergovernmental revenues, consisting of grants, entitlements and shared revenues, are usually recorded in Governmental Funds when measurable and available However, the "available" criterion applies for certain federal grants and shared revenues when the expenditure is made because expenditure is the prime factor for determining eligibility Similarly, if cost sharing or matching requirements exist, revenue recognition depends on compliance with these requirements 16 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 O Interfund Transfers Interfund transfers are segregated from revenues and expenditures in the county's financial statements Reimbursements of expenditures made between funds are not recorded as interfund transfers but are recorded as expenditures in the reimbursing fund and as a reduction of expenditures in the reimbursed fund The county reported the following types of interfund transactions: Residual Equity Transfers - Nonroutine or nonrecurring transfers between funds are reported as additions to or deductions from fund equity Operating Transfers - Legally authorized and routine transfers between funds are reported as operating transfers Operating transfers are reported as "Other Financing Sources (Uses)" in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances (for Governmental and Expendable Trust Funds) P Compensated Absences The county has adopted a policy of compensation for accumulated unpaid employee personal leave No payment is authorized for accrued major medical leave Generally accepted accounting principles require accrual of accumulated unpaid employee benefits in Governmental Funds to the extent that they are to be paid with current assets and the remainder of the liability to be reported in the General Longterm Debt Account Group, representing the county's commitment to fund such costs from future operations Due to immateriality, the current portion of the liability was not estimated and reported in the Governmental Funds Therefore, the county's full liability in the amount of $71,753 for accumulated unpaid personal leave up to a maximum of 45 days per employee is reported in the General Long-term Debt Account Group of the accompanying combined balance sheet Q Total Column on General Purpose Financial Statements The total column on the general purpose financial statements is captioned "Memorandum Only" to indicate that it is presented only to facilitate financial analysis Data in this column does not present financial position and results of operations in conformity with generally accepted accounting principles Neither is such data comparable to a consolidation Interfund eliminations have not been made in the aggregation of this data (2) Stewardship, Compliance and Accountability A Legal Compliance - Financial Matters State law requires the county to have its uninsured deposits fully collateralized (105%) by securities based upon market value, and the securities are to be held in the name of the county During the audited fiscal year, a significant amount of the county's uninsured deposits were uncollateralized 17 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 B Individual Fund Deficits The following Special Revenue Fund had a deficit fund balance at September 30, 1995: Deficit Amount Styling Countywide road C $337,911 Excess of Actual Expenditures Over Budget in Individual Funds The following funds had an excess of actual expenditures over budget for the year ended September 30, 1995: Fund Excess General Special Revenue: Community development block grant (3) $ 15,256 191,668 Budgetary Basis vs GAAP The accompanying Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Budgetary Basis) and Actual - All Governmental Fund Types presents comparisons of the legally adopted budget with actual data on a budgetary basis Since the budgetary and GAAP presentations of actual data differ, a reconciliation of the results of operations for the year follows: Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Governmental Fund Types General Budget (Cash Basis) Special Revenue Debt Service Capital Projects 878,002 265,725 (51,069) 1,706,274 141,922 93,304 1,174 21,488 (3,741) 8,288 1,113,228 288,387 (54,810) 1,714,562 $ Increase (Decrease) Net adjustment for revenue accruals Net adjustment for expenditure accruals GAAP Basis $ 18 ... Accounting Manual as revised in 1993 by the Office of the State Auditor E Fund Accounting The financial activities of the county are recorded in individual funds and account groups used to report financial... 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... the State of Mississippi The county is governed by an elected five-member Board of Supervisors Generally accepted accounting principles require Yazoo County to present these financial statements