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_part3 potx

YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 (4) Intergovernmental Revenues Intergovernmental revenues consisted of the following at September 30, 1995: Governmental Fund Types General Federal Sources: Community development block grants Bridge inspection Total Federal Sources State Sources: State Grants: Reimbursement for food stamps, welfare Reimbursement for homestead exemption Reimbursement for state aid roads Reimbursement for emergency management funds Reimbursement for land patents Reimbursement for emergency medical services Total State Grants State Shared Revenues: Motor vehicle fuel tax Motor vehicle licenses Severance taxes Insurance premium tax distribution Payments in lieu of taxes Flood control Grand Gulf distribution Railcar tax Liquor privilege taxes Harvest permits Total State Shared Revenues Local Sources: Net income from port operations Reimbursement for road work Total Local Sources $ Special Revenue Debt Service 192,953 13,120 $ $ 206,073 33,532 259,650 841,505 19,721 573 13,480 $ 313,476 $ 29,390 74,160 854,985 455,574 100,714 50,619 5,494 56,177 63,522 102,670 90,563 10,172 225 13,824 $ 307,180 $ 689,811 56,113 46,159 144,349 $ 19 190,508 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 (5) Deposits and Investments Deposits: The carrying amount of the county's total deposits with financial institutions at September 30, 1995, was $3,991,950 and the bank balance was $2,725,617 The bank balance is categorized below to reflect the level of credit risk assumed by the county at year end Bank Balance Amount federally insured or collateralized with securities held by the county or its agent in the county's name $ 203,283 Amount collateralized with securities held by the pledging financial institution's trust department or agent in the county's name 1,012,255 Amount uncollateralized 1,510,079 Total Bank Balance $ 2,725,617 Investments: During the year, the county invested a substantial amount of the net proceeds of bonds (certificates of participation) issued during the year in a mutual fund whose portfolio consisted solely of direct obligations of the U S Treasury At year end, the carrying amount of the mutual fund investment was $975,580 No disclosure of level of credit risk is required for this type of investment At year end, the carrying amount of the county's investments in U.S Government treasury bills was $63,255 and the market value was $63,601 The investments are either insured or registered or are held by the county or its agent in the county's name (6) Interfund Receivables and Payables Individual fund interfund receivables and payables consisted of the following at September 30, 1995: Interfund Receivables Due from/to Other Funds General Fund $ Special Revenue Funds: Law Library Port Volunteer fire department Countywide road Countywide bridge Interfund Payables 62,724 78 1,567 256 32,486 4,543 Total 38,930 20 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 Interfund Receivables 12,181 5,626 5,640 Total Agency Funds: Holmes Community College Water district 3,390 3,525 212 Total 3,737 Total Due from/to Other Funds (7) 3,390 23,447 Debt Service Funds: 1994 refunding bond I & S Federal prison I & S Hospital I & S Interfund Payables $ 66,114 66,114 Fixed Assets Changes in General Fixed Assets: Balance Oct 1, 1994 Additions Deletions 55,000 Balance Sept 30, 1995 1,271,718 4,859,822 Governmental Funds: Land Buildings Improvements other than buildings Construction in progress Mobile equipment Other furniture and equipment Leased property under capital leases Total (8) 2,041,333 861,467 1,460,711 $ $ 1,473,945 1,347,875 298,051 138,335 2,397,390 1,334,294 20,029 1,019,748 1,926,234 1,951,105 3,447,254 1,347,875 1,005,090 979,773 2,838,353 16,290,699 5,710,596 8,505,611 13,495,684 3,142,952 6,810,927 1,973,309 Commitments As of September 30, 1995, the county had the following commitments with respect to unfinished capital projects: Remaining Financial Commitment Description of Commitment Detention Center $ Expected Date of Completion 1,715,000 June 1, 1996 21 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 (9) Claims and Judgments Risk Financing The county is exposed to risk of loss related to workers' compensation for injuries to its employees On January 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 The county is exposed to risk of loss relating to employee health and accident coverage On October 1, 1989, 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 $52,999, reported on the combined balance sheet in the following fund types: General Special Revenue Trust & Agency $24,019 28,837 143 22 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 (10) Lease Obligations 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 Group Classes of Property Mobile equipment Other furniture and equipment $ 2,706,942 131,411 Leased Property Under Capital Leases $ 2,838,353 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: General Long-term Debt Group Year Ending September 30: 1996 1997 1998 1999 2000 $ Total Minimum Lease Payments Less: Amount representing interest 2,189,115 372,620 Present Value of Net Minimum Lease Payments (11) 445,502 408,816 373,838 349,112 611,847 $ 1,816,495 Long-term Debt The following individual liabilities are reported on the combined balance sheet at September 30, 1995: Total Final Maturity Date 2,230,000 6.75 to 7.9 5-1-07 3,260,000 4.3 to 6.0 5-1-13 6,480,000 Description and Purpose General Long-term Debt Account Group A General Obligation Bonds: Hospital bonds, dated 5-1-87 Public improvement prison bonds, dated 5-1-93 General obligation refunding bonds, series 1994, dated 6-1-94 Interest Rates 5.4 to 6.75 3-1-09 Amount Outstanding $ $ 11,970,000 23 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 C Final Maturity Date 5.5 to 6.7 2-1-10 10,265 6.5 5-1-96 5,418 6.5 8-1-96 3,556 3,831 6.5 7.25 11-18-95 2-11-96 38,882 5-27-97 22,612 5-27-97 77,505 Description and Purpose B Interest Rates 6.5 7-1-98 4.492 6.4 6.4 4-5-98 4-6-01 4-6-01 Amount Outstanding Limited Obligation Bonds: Certificates of participation, series 1995 dated 2-1-95 Capital Leases: 1992 Ford F800 trucks, dump bodies, dated 3-19-92 1992 Chevrolet C20 pick-ups, dated 8-17-92 Ford model 6640 tractors with Alamo 20' boom mowers, dated 12-18-92 1993 GMC pick-up, dated 2-11-93 Caterpillar model AP800B paving machine, dated 4-27-93 Caterpillar model BC534 steel wheel compactor, dated 4-27-93 IBM hardware and software upgrade system with training and maintenance agreement, dated 6-9-93 1994 Ford F-150 pick-up truck, dated 3-3-94 Various road equipment, dated 4-6-95 dump trailers, dated 4-6-95 Total $ 3,915,000 $ 7,036 1,597,202 50,188 $ 1,816,495 Annual requirements to amortize outstanding long-term debt reported in the General Long-term Debt Account Group are as follows: Year Ending September 30 1996 1997 1998 1999 2000 Later years Bonds Total Less: Amounts representing interest Total at Present Value $ Leases Total 1,218,221 1,219,696 1,218,775 1,220,838 1,220,605 12,339,702 261,542 368,518 372,045 369,905 367,318 5,495,586 445,502 408,816 373,838 349,112 611,847 1,925,265 1,997,030 1,964,658 1,939,855 2,199,770 17,835,288 18,437,837 6,467,837 $ Bonds 7,234,914 3,319,914 2,189,115 372,620 27,861,866 10,160,371 11,970,000 3,915,000 1,816,495 17,701,495 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 10% 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 15% 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 11% of the latest property assessments 24 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 Limited Debt Obligations - Certificates of participation (COPs), designated as "qualified tax exempt obligations" for purpose of Section 265 of the Internal Revenue Code of 1986, as amended, were issued with a face value of $3,915,000 for the purpose of financing the construction of a new jail complex The COPs are not secured by the county's full faith and credit However, Yazoo County, as lessee, is obligated, pursuant to a lease purchase agreement with the lessor, Yazoo County Civic Improvement Corporation, a finance authority and blended component unit of Yazoo County, as sole source of payment for retirement of the COPs The lease obligation is not recorded because the COPs are considered, in substance, "limited debt obligations" of the county, and accordingly, are reflected in the General Long-term Debt Account Group General Fund revenues are being used to retire the debt The following changes occurred in liabilities reported at year end: Balance Oct 1, 1994 Styling Compensated absences General obligation bonds Limited obligation bonds Capital leases Total (12) $ Additions Reductions 778,288 $ 86,123 12,340,000 14,370 370,000 Balance Sept 30, 1995 3,915,000 2,397,390 1,359,183 71,753 11,970,000 3,915,000 1,816,495 13,204,411 6,312,390 1,743,553 17,773,248 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 Accordingly, no provision for any liability that may result has been recognized in the county's financial statements 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 (13) Related Organizations The county Board of Supervisors appointed a voting majority of the members of the boards of the following organizations, but the county's accountability for these organizations does not extend beyond making the appointments The board may, in its discretion, make small appropriations to the organizations: Name of Organization Appropriation Fifteen Mile Bayou Water Management District Silver Creek Drainage District $ 25 12,250 18,441 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 (14) Joint Venture The county participates in the following joint venture: Yazoo County is a participant with Yazoo City in a joint venture, authorized by Senate Bill 2954, Laws of 1979, to operate the Yazoo Recreation Commission The joint venture was created to more effectively manage recreational facilities within the city and county The joint venture is governed by a ten member board with five members appointed by Yazoo City and five members appointed by Yazoo County By contractual agreement, the county's appropriation from the General Fund this year to the joint venture was $44,560 Complete financial statements for the Yazoo Recreation Commission can be obtained from P O Box 9, Yazoo City, Mississippi 39194 (15) Jointly Governed Organizations The county participates in the following jointly governed organizations: Holmes Community College operates in a district composed of the Counties of Attala, Carroll, Choctaw, Grenada, Holmes, Madison, Montgomery, Webster and Yazoo The Yazoo County Board of Supervisors appoints two of the 22 members of the college board of trustees The county appropriated approximately $204,230 for maintenance and support of the college in fiscal year 1995 The Yazoo-Mississippi Water Management District operates in a district composed of Bolivar, Carroll, Coahoma, DeSoto, Holmes, Humphreys, Issaquena, Leflore, Panola, Quitman, Sharkey, Sunflower, Tallahatchie, Tate, Tunica, Washington and Yazoo Counties The Yazoo County Board of Supervisors appoints one of the 21 members of the district board of commissioners The county appropriated $17,426 for support of the district in fiscal year 1995 The Yazoo Community Action Agency, Inc., operates in Yazoo County The Yazoo County Board of Supervisors appoints seven of the 18 members of the board of directors The county appropriated approximately $7,500 for the support of the agency in fiscal year 1995 The Central Mississippi Planning and Development District operates in a district composed of the Counties of Copiah, Hinds, Madison, Rankin, Simpson, Warren and Yazoo The Yazoo County Board of Supervisors appoints three of the 33 members of the board of directors The county appropriated approximately $23,035 for support of the district in fiscal year 1995 (16) Defined Benefit Pension Plan Plan Description Yazoo 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 26 YAZOO COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 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 $388,332, $394,640 and $394,464, respectively, equal to the required contributions for each year (17) Subsequent Events Subsequent to September 30, 1995, Yazoo County issued the following debt obligations: Issue Date Interest Rate 3-1-96 5-1-96 7-1-96 4.97 5.43 4.3 to 6.25 Issue Amount $ 212,000 137,200 1,300,000 27 Type of Financing Source of Financing Lease purchase Lease purchase Certificates of participation General Fund Road fund General Fund YAZOO COUNTY (This page left blank intentionally) 28 YAZOO COUNTY SUPPLEMENTAL INFORMATION 29 ... categorized below to reflect the level of credit risk assumed by the county at year end Bank Balance Amount federally insured or collateralized with securities held by the county or its agent in the county ''s.. . condition of the county (13) Related Organizations The county Board of Supervisors appointed a voting majority of the members of the boards of the following organizations, but the county'' s accountability... year, the county invested a substantial amount of the net proceeds of bonds (certificates of participation) issued during the year in a mutual fund whose portfolio consisted solely of direct