FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 _part1 doc

FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 17 (3) Interfund Assets/Liabilities. The following is a summary of due from/to other funds: Due From Due To General Fund District maintenance fund $ 4,299 Total 4,299 Special Revenue Funds Chapter 1 fiscal year 1995 fund 3,135 Eisenhower fund 579 Drug-free schools fund 585 Total 4,299 Total $ 4,299 4,299 (4) General Fixed Assets. The following is a summary of changes in general fixed assets: Balance Completed Balance 7-1-94 Additions Retirements Const. 6-30-95 Land $ 11,103 11,103 Buildings 334,366 334,366 Other motor equipment 6,450 6,450 Other equipment 284,325 3,022 19,017 268,330 Construction in progress 0 313,193 313,193 Total $ 636,244 316,215 19,017 0 933,442 Commitments under construction contracts at June 30, 1995, are summarized as follows: Required Remaining Future Commitment Financing $ 6,324 0 (5) General Long-term Debt. The following is a summary of changes in general long-term debt: Balance Balance 7-1-94 Additions Reductions 6-30-95 Compensated absences payable $ 0 16,090 16,090 Total $ 0 16,090 0 16,090 FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 18 (6) Defined Benefit Pension Plan. Plan Description. The school 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 report may be obtained by writing to Public Employees' Retirement System of Mississippi, PERS Building, 429 Mississippi Street, Jackson, MS 39201 or by calling (601) 359-3589 or 1-800-444-PERS. Funding Policy. PERS members are required to contribute 7.25% of their annual covered salary and the school 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 and employers are established and may be amended only by the State of Mississippi Legislature. The school's contributions to PERS for the fiscal years ending June 30, 1995, 1994 and 1993 were $113,073, $110,062 and $103,730, respectively, which equaled the required contributions for each year. (7) Deferred Compensation Plan. The school, through the Mississippi Public Employees' Retirement System (PERS), offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all school employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the school (without being restricted to the provisions of benefits under the plan), subject only to the claims of the school's general creditors. Participants' rights under the plan are equal to those of general creditors of the school in an amount equal to the fair market value of the deferred account for each participant. As of June 30, 1995, assets held for participants employed by the school and reported in an Agency Fund totaled $53,582. The school believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The school has no liability for losses under the plan, but the Board of Trustees of the Mississippi Public Employees' Retirement System, as plan administrator, does have the duty of due care that would be required of an ordinary prudent investor. (8) Other Commitments. Commitments under construction contracts are described in Note 4. (9) Prior Period Adjustment. Reclassify fund equity - An adjustment to correct a prior year error in recording an asset or liability. FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 19 (10) Risk Management. The school is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The school carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 20 FORREST COUNTY AGRICULTURAL HIGH SCHOOL (This page left blank intentionally) 21 FORREST COUNTY AGRICULTURAL HIGH SCHOOL SUPPLEMENTAL INFORMATION 22 FORREST COUNTY AGRICULTURAL HIGH SCHOOL Schedule of Federal Financial Assistance For the Year Ended June 30, 1995 Federal Grantor/ Catalog of Pass-through Grantor/ Federal Domestic Federal Other Total Federal Program Title Assistance Number Revenue Revenue Expenditures Expenditures U.S. Department of Agriculture Passed-through State Department of Education: Food distribution 10.550 $ 7,297 7,297 7,297 National school lunch program 10.555 57,650 44,878 92,301 51,900 Total U.S. Department of Agriculture 64,947 44,878 99,598 59,197 U.S. Department of Education Passed-through State Department of Education: Chapter 1 grants to LEAs 84.010 64,089 64,089 64,089 Vocational education - basic grants to states 84.048 3,882 3,882 3,882 Vocational education - consumer and homemaking education 84.049 260 260 260 Chapter 2 - state block grants 84.151 2,790 2,790 2,790 Eisenhower mathematics and science education - state grants 84.164 579 579 579 Drug-free schools and communities - state grants 84.186 1,255 1,255 1,255 Total U.S. Department of Education 72,855 72,855 72,855 Total Federal Financial Assistance $ 137,802 44,878 172,453 132,052 NOTE: The revenue and expenditure amounts include transfers in (out). This is trial version www.adultpdf.com 23 FORREST COUNTY AGRICULTURAL HIGH SCHOOL INTERNAL CONTROL STRUCTURE REPORTS 24 FORREST COUNTY AGRICULTURAL HIGH SCHOOL (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 25 INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS August 9, 1996 Superintendent and School Board Forrest County Agricultural High School We have audited the general purpose financial statements of the Forrest County Agricultural High School as of and for the year ended June 30, 1995, and have issued our report thereon dated August 9, 1996. Our report differed from the standard report because of a scope limitation due to inadequate general fixed assets subsidiary records for the buildings and other equipment classifications. Except for the scope limitation referred to above, 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 general purpose financial statements are free of material misstatement. The management of the Forrest County Agricultural High School 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 general purpose 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 general purpose financial statements of the Forrest County Agricultural High School for the year ended June 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 general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 26 We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions 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 entity's ability to record, process, summarize and report financial data consistent with the assertions of management in the general purpose financial statements. The reportable conditions noted during our consideration of the internal control structure are 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 general purpose 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 believe none of the reportable conditions referred to above is a material weakness. The prior year report did not contain any reportable conditions. This report is intended for the information of the school board, management, and the appropriate grantor agencies. However, this report is a matter of public record and its distribution is not limited. WILLIAM S. JONES, CPA Director, Department of Audit . intentionally) 21 FORREST COUNTY AGRICULTURAL HIGH SCHOOL SUPPLEMENTAL INFORMATION 22 FORREST COUNTY AGRICULTURAL HIGH SCHOOL Schedule of Federal Financial Assistance For the Year Ended June 30, 1995 Federal. FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 17 (3) Interfund Assets/Liabilities. The following is a summary of due from /to other. An adjustment to correct a prior year error in recording an asset or liability. FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 19 (10) Risk