FORREST COUNTY AGRICULTURAL HIGH SCHOOL TABLE OF CONTENTS FINANCIAL AUDIT _part2 potx

7 Fund Equity: Investment in gen. fixed assets 933,442 933,442 Fund balances Reserved for: Unemployment benefits 7,250 7,250 Scholarships 29,921 29,921 Capital improvements 42,090 42,090 Inventory 17,550 2,097 19,647 Unreserved: Undesignated 376,699 101,676 478,375 Total Fund Equity 394,249 103,773 42,090 37,171 933,442 1,510,725 Total Liab. & Fund Equity $ 406,165 132,167 185,967 176,070 933,442 16,090 1,849,901 The notes to the financial statements are an integral part of this statement. This is trial version www.adultpdf.com 8 FORREST COUNTY AGRICULTURAL HIGH SCHOOL Exhibit B Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds For the Year Ended June 30, 1995 Fiduciary Governmental Fund Types Fund Type Total Special Capital Expendable (Memorandum General Revenue Projects Trust Only) Revenues Local sources $ 822,206 44,247 356,283 5,877 1,228,613 State sources 899,806 260,501 31,199 1,191,506 Federal sources 137,802 137,802 Total Revenues 1,722,012 442,550 387,482 5,877 2,557,921 Expenditures Instruction 966,553 250,083 1,500 1,218,136 Support services: Students 53,084 35,831 88,915 Instructional staff 47,454 13,028 60,482 General administration 126,828 8,225 135,053 School administration 79,163 79,163 Business 37,243 1,000 38,243 Oper. & maintenance of plant 227,908 553 86,356 397 315,214 Central 907 907 Noninstructional services 17,727 99,670 117,397 Facilities acquisition & construction 313,193 313,193 Total Expenditures 1,555,960 408,297 400,549 1,897 2,366,703 Excess of Revenues Over (Under) Expenditures 166,052 34,253 (13,067) 3,980 191,218 Other Financing Sources (Uses) Operating transfers in 4,350 55,176 55,157 114,683 Operating transfers out (110,333) (4,350) (114,683) Total Other Financing Sources (Uses) (105,983) 50,826 55,157 0 Excess of Revenues and Other Sources Over Expenditures and Other Uses 60,069 85,079 42,090 3,980 191,218 This is trial version www.adultpdf.com 9 Fund Balances July 1, 1994 335,595 18,995 33,191 387,781 Prior period adjustment: Reclassify fund equity 1,435 1,435 July 1, 1994, as restated 337,030 18,995 33,191 389,216 (Decrease) in reserve for inventory (2,850) (301) (3,151) June 30, 1995 $ 394,249 103,773 42,090 37,171 577,283 The notes to the financial statements are an integral part of this statement. This is trial version www.adultpdf.com 10 FORREST COUNTY AGRICULTURAL HIGH SCHOOL Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual All Governmental Fund Types For the Year Ended June 30, 1995 General Fund Special Revenue Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues Local sources $ 821,525 822,206 681 44,100 44,247 147 State sources 899,806 899,806 260,500 260,501 1 Federal sources 140,064 137,802 (2,262) Total Revenues 1,721,331 1,722,012 681 444,664 442,550 (2,114) Expenditures Instruction 1,016,931 966,553 50,378 306,386 250,083 56,303 Support services: Students 61,687 53,084 8,603 35,831 35,831 Instructional staff 51,221 47,454 3,767 14,887 13,028 1,859 General administration 137,226 126,828 10,398 8,227 8,225 2 School administration 79,458 79,163 295 Business 37,560 37,243 317 Operation and maintenance of plant 257,252 227,908 29,344 553 553 Central 907 907 Noninstructional services 18,700 17,727 973 100,288 99,670 618 Facilities acquisition and construction 26,712 26,712 Total Expenditures 1,686,747 1,555,960 130,787 467,079 408,297 58,782 Excess of Revenues Over (Under) Expenditures 166,052 34,253 Other Financing Sources 17,903 4,350 (13,553) 55,176 55,176 Other Financing Uses (138,961) (110,333) 28,628 (4,500) (4,350) 150 Total Other Financing Sources (Uses) (121,058) (105,983) 15,075 50,676 50,826 150 Excess of Revenues and Other Sources Over Expenditures and Other Uses 60,069 85,079 Fund Balances July 1, 1994 335,595 18,995 Prior period adjustment: Reclassify fund equity 1,435 July 1, 1994, as restated 337,030 18,995 (Decrease) in reserve for inventory (2,850) (301) June 30, 1995 $ 394,249 103,773 The notes to the financial statements are an integral part of this statement. 11 Exhibit C Capital Projects Funds Variance Favorable Budget Actual (Unfavorable) 4,100 356,283 352,183 31,199 31,199 35,299 387,482 352,183 1,000 (1,000) 86,356 (86,356) 442,585 313,193 129,392 442,585 400,549 42,036 (13,067) 407,287 55,157 (352,130) 407,287 55,157 (352,130) 42,090 0 0 42,090 FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 12 (1) Summary of Significant Accounting Policies. A. Financial Reporting Entity. For financial reporting purposes, the reporting entity includes all funds that are covered by the oversight responsibility of the school's governing board. As defined by generally accepted accounting principles, the school is considered a component unit of Forrest County since the governing authorities of the county are solely responsible for issuing school debt. B. Financial Reporting. The accompanying financial statements are presented using the concepts of reporting promulgated in Statement 1 of the Governmental Accounting Standards Board. The general purpose financial statements show the basic financial statements of the school by providing a combined overview of financial position and results of operations of the school. The total (memorandum only) columns in these statements are presented for overview information purposes and are not meant to present fairly the financial position and results of operations or consolidated financial information for the school as a whole in conformity with generally accepted accounting principles. C. Account Classifications. The account classifications used in the financial statements conform to the classifications prescribed in the "Financial Accounting Manual for Mississippi Public School Districts" issued by the Office of the State Auditor. The classifications in that manual are consistent with the broad classifications recommended in "Financial Accounting for Local and State School Systems, 1990" issued by the U.S. Department of Education. D. Fund Accounting. The accounts of the school are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. School resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped into generic fund types and broad fund categories as follows: GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the school. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted for specific expenditure purposes. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 13 FIDUCIARY FUNDS Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the school in a trustee capacity or as an agent for individuals, private organizations and/or other funds. These include Expendable Trust and Agency Funds. Expendable Trust Funds are accounted for in essentially the same manner as governmental funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. E. Fixed Assets and Long-term Liabilities. The costs incurred for the purchase or construction of general fixed assets are recorded as capital outlay expenditures in the governmental funds. The fixed assets are accounted for in the General Fixed Assets Account Group rather than in the governmental funds. Fixed assets are valued at cost. Donated fixed assets are valued at the fair market value or estimates of the fair market value on the date of donation. Infrastructure fixed assets, such as roads, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and similar assets are not capitalized, as these assets are immovable and of value only to the school. No depreciation has been provided on the general fixed assets. The long-term liabilities incurred by the school which are to be financed from the governmental funds are accounted for in the General Long-term Debt Account Group, not in the governmental funds. The account groups are not funds. The concern is only with the measurement of financial position and not the measurement of results of operations. F. Basis of Accounting. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The modified accrual basis of accounting is used in measuring financial position and operating results: Governmental fund revenues and expenditures are recognized on the modified accrual basis. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for interest on general long-term debt, which is recognized when due. Fiduciary fund revenues and expenditures are recognized on the basis consistent with the fund's accounting measurement objective. Expendable Trust Funds are accounted for on the modified accrual basis. Agency Fund assets and liabilities are accounted for on the modified accrual basis. Transfers are recognized in the accounting period in which the interfund receivable and payable arise. FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 14 G. Budgets. The budget is adopted by the school board and filed with the taxing authority. Amendments can be made on the approval of the school board. By statute, final budget revisions must be approved on or before August 15 of the following fiscal year. For comparison purposes, only budgeted governmental funds are included and are presented on the same basis of accounting as the budget which is consistent with generally accepted accounting principles. H. Encumbrances. An encumbrance system is not maintained to account for commitments resulting from approved purchase orders, work orders and contracts. I. Cash and Other Deposits. The school deposits excess funds in the financial institutions selected by the school board. State statutes specify how these depositories are to be selected. Cash consists of amounts on deposit in demand accounts. Other deposits consist of certificates of deposit. Cash and other deposits are valued at cost. Various restrictions on these deposits are imposed by state statutes. These restrictions are summarized as follows: All deposits with financial institutions must be collateralized in an amount at least equal to 105% of the amount not insured by the Federal Deposit Insurance Corporation (FDIC) or by the Federal Savings and Loan Insurance Corporation (FSLIC), or any successors to such insurance corporations. J. Investments. The school is allowed, by statute, to invest excess funds in any bonds or other direct obligations of the United States of America or the state of Mississippi, or of any county or municipality of this state, when such county or municipal bonds have been properly approved; or in interest-bearing time certificates of deposit or interest-bearing accounts with any financial institution approved for the deposit of state funds; or in any type of investment permitted by Sections 27-105-33(d) and 27-105-33(e), Miss. Code Ann. (1972). For accounting purposes, certificates of deposit and interest-bearing accounts are classified as cash and other deposits. K. Inventories and Prepaid Items. Inventories in the General and Special Revenue Funds consist of cattle, purchased inventories of food and donated inventories of donated commodities. The cattle are valued at fair market value. Donated commodities are received from the USDA and are valued at USDA cost. Purchased inventories are valued at cost (calculated on the first-in, first-out basis). The costs of governmental fund type inventories are reported as expenditures when purchased. FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 15 Prepaid items, such as prepaid insurance, are not reported for governmental fund types since the costs of such items are accounted for as expenditures in the period of acquisition. L. Interfund Loans. Short-term (due within one year) interfund loan receivables are reported as "due from other funds" and are considered available expendable resources. M. Fund Reserves. Fund reserves are portions of fund equity that are legally segregated for a specific future use or are not available for current operations. Following is a description of fund reserves used by the school: Reserved for unemployment benefits - An account that represents the fund balance of the unemployment compensation revolving fund which is legally restricted for the payment of unemployment benefits. Reserved for scholarships - An account that represents the fund balance which is legally restricted for scholarships. Reserved for capital improvements - An account that represents the portion of the fund balance that is legally restricted for capital improvements. Reserved for inventory - An account that represents a portion of the fund balance which indicates that inventories do not represent available spendable resources even though they are a component of net current assets. N. Property Taxes. Ad valorem property taxes are levied by the governing authorities of the county on behalf of the school based upon an order adopted by the school board of the school requesting an ad valorem tax effort in dollars. Since the taxes are not levied and collected by the school, the revenues to be generated by the annual levies are not recognized until the taxes are actually collected by the tax levying authority. O. Minimum Education Program Revenues. Revenues from the state minimum education program are appropriated on a fiscal year basis and are recorded at the time the revenues are received from the state of Mississippi. FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 16 P. Compensated Absences. Employees of the school accumulate sick leave at a minimum amount as required by state law or at a greater amount provided by school policy. Some employees are allowed personal leave and/or vacation leave. The school pays for unused leave for certificated employees as required to do so by Section 37-7-307(5), Miss. Code Ann. (1972). Payment for unused leave for other employees is made in accordance with school policy. (2) Cash, Other Deposits, and Investments. Cash and Other Deposits. The carrying amount of the school's deposits with financial institutions was $777,919, and the bank balance was $880,771. The bank balance is categorized as follows: Amount insured or collateralized with securities held by the school district or its agent in the school's name $ 237,776 Amount collateralized with securities held by the pledging financial institution's trust department or agent in the school's name 642,995 Total Bank Balance $ 880,771 The uninsured bank balance at June 30, 1995, was $642,995. As described in Note 1(I), this uninsured bank balance was required to be collateralized in the amount of 105%. The uninsured bank balance at June 30, 1995, was collateralized in an amount equal to or greater than the legally required amount. Investments. Investments made by the school that are included on the balance sheet are summarized below: Carrying Market Amount Value Investments in deferred compensation plan assets $ 53,582 53,582 Total Investments $ 53,582 53,582 . (352,130) 42,090 0 0 42,090 FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 12 (1) Summary of Significant Accounting Policies. A. Financial Reporting Entity. For financial. from the state of Mississippi. FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 16 P. Compensated Absences. Employees of the school accumulate. notes to the financial statements are an integral part of this statement. This is trial version www.adultpdf.com 8 FORREST COUNTY AGRICULTURAL HIGH SCHOOL Exhibit B Combined Statement of Revenues,