STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR PHIL BRYANT_part3 doc

ALCORN COUNTY Notes to Financial Statements For the Year Ended September 30, 1996 17 (8) Claims and Judgments. Risk Financing. The county finances its exposure to risk of loss related to workers' compensation for injuries to its employees through the Mississippi Public Entity Workers' Compensation Trust, a public entity risk pool. 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, 1996 to January 1, 1997. The pool may make an overall supplemental assessment or declare a refund depending on the loss experience of all the entities it insures. (9) Capital Leases. As Lessee: The county is obligated for the following assets acquired through capital leases as of September 30, 1996: General Fixed Assets Classes of Property Group Mobile equipment $ 1,021,341 Other furniture and equipment 348,725 Leased Property Under Capital Leases $ 1,370,066 The future minimum lease payments together with the present value of the net minimum lease payables as of September 30, 1996, are as follows: General Long-term Debt Group Year Ending September 30: 1997 $ 275,016 1998 201,211 1999 182,617 2000 69,288 2001 28,371 Later years 7,392 Total Minimum Lease Payments 763,895 Less: Amount representing interest 69,296 Present Value of Net Minimum Lease Payments $ 694,599 ALCORN COUNTY Notes to Financial Statements For the Year Ended September 30, 1996 18 (10) Long-term Debt. Debt outstanding as of September 30, 1996, consists of the following: Final Amount Interest Maturity Description and Purpose Outstanding Rates Date General Long-term Debt Account Group: A. General Obligation Bonds: Airport improvement $ 775,000 6.38 7-01-06 Solid waste transfer 595,000 4.8/5.75 8-01-04 Juvenile detention center 295,000 4.5/5.1 3-01-06 Total General Obligation Bonds $ 1,665,000 B. Capital Leases: 911 system $ 366 11.0 10-96 Rohn SSV 180' tower 698 11.0 10-96 Dispatch console 5,884 10.91 12-96 911 equipment 8,109 6.31 3-97 Case backhoe 1992 model 580 1,059 7.0 11-96 IBM computer and four monitors 2,517 6.22 1-98 Software 7,065 6.29 1-98 Champion motor grader 31,501 6.0 3-99 1993 Chevrolet dump truck 15,638 5.25 3-98 1969 Mack truck 11,171 5.25 4-97 81 distributor 73 etnyre Ferguson roller JD tractor boom mower 6,838 5.25 7-97 JD 5300 2wd tractor 3,916 9.0 9-97 1986 Ford dump truck 2,388 5.25 1-97 Two 1994 LTD Ford Crown Victorias 9,654 5.2 1-98 JCB model 215 loader/backhoe 14,890 5.0 2-98 1986 International 9370 dump truck 7,349 6.0 3-98 1994 580 Case backhoe 12,107 5.0 5-98 6300 John Deere tractor with rotary mower 13,634 5.0 6-98 1988 544E John Deere front end loader 29,926 6.0 6-99 1994 Caterpillar 140G motor grader 85,553 5.5 8-99 John Deere tractor 10,411 6.0 10-98 Ford Crown Victoria 1995 9,806 6.0 12-98 Reappraisal mapping machine 1,118 9.8 2-97 Motor grader 69,409 5.8 3-02 Case backhoe and trailer 16,922 6.0 3-99 International dump truck 1990 10,687 6.0 5-98 Ford one ton truck 6,856 5.75 9-98 Ford Crown Victoria 1995 12,107 5.50 7-99 JD tractor & boom mower 95 38,438 6 12-00 1996 Chevrolet pickup 14,087 5.50 12-99 JD 5500 tractors (two) 29,415 5.50 4-00 ALCORN COUNTY Notes to Financial Statements For the Year Ended September 30, 1996 19 Final Amount Interest Maturity Description and Purpose Outstanding Rates Date IBM computer - tax office 87,839 5.43 3-01 International truck and home trailer 89 26,209 5.50 4-99 1996 Ford Crown Victoria 16,373 5.50 4-00 JD tractor & cutter (new 96) 24,230 5.50 4-00 1991 International dump truck 19,347 5.50 6-00 1996 GMC pickup 16,852 6.0 6-00 Belly dump trailer 40 ft. 14,230 5.50 7-99 Total Capital Leases $ 694,599 C. Other Loans: Countywide road repair $ 187,500 4.65 6-97 Human services building 228,053 4.88 7-97 Countywide road repair 250,000 4.6 6-98 Total Other Loans $ 665,553 Annual debt service requirements to maturity for the following debt reported in the General Long-term Debt Account Group are as follows: Year Ending September 30 Bonds Loans Total 1997 $ 239,122 592,672 831,794 1998 234,572 130,750 365,322 1999 236,392 236,392 2000 233,072 233,072 2001 239,190 239,190 Later years 1,009,057 1,009,057 Total 2,191,405 723,422 2,914,827 Less: Amounts representing interest 526,405 57,869 584,274 Total at Present Value $ 1,665,000 665,553 2,330,553 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 15% 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 20% 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, 1996, the amount of outstanding general obligation bonded debt was equal to 1.7% of the latest property assessments. ALCORN COUNTY Notes to Financial Statements For the Year Ended September 30, 1996 20 The following changes occurred in liabilities reported at year end: Balance Balance Styling Oct. 1, 1995 Additions Reductions Sept. 30, 1996 General Long-term Debt Account Group: $ General obligation bonds 1,520,000 295,000 150,000 1,665,000 Capital leases 676,469 318,298 300,168 694,599 Other loans 1,023,004 250,000 607,451 665,553 Total $ 3,219,473 863,298 1,057,619 3,025,152 (11) 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. 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. (12) Joint Ventures. The county participates in the following joint ventures: Alcorn County is a participant with Prentiss, Tippah and Tishomingo Counties in a joint venture authorized by Section 39-3-9, Miss. Code Ann. (1972), to operate Northeast Regional Library. The joint venture was created to provide a regional library for the area and is governed by a four member board appointed by the four Boards of Supervisors. By contractual agreement, the county's appropriation from the General Fund this year to the joint venture amounted to $105,000. Complete financial statements for the Northeast Regional Library can be obtained from Northeast Regional Library, 1023 North Fillmore Street, Corinth, Mississippi 38834. Alcorn County is a participant with the City of Corinth in a joint venture authorized by H.B. 1183, 1972 Session, to operate the Corinth-Alcorn Area Chamber of Commerce. The joint venture was created to foster, encourage and facilitate economic development in the county and is governed by 32 members: four appointed by the county, two appointed by the city and others from the business community. The county provided $226,529 for the operations of the entity during the 1996 fiscal year. Complete financial statements for the Corinth-Alcorn Area Chamber of Commerce can be obtained from Chamber of Commerce I.D.A., 810 Tate Street, Corinth, Mississippi 38834. Alcorn County is a participant with the City of Corinth in a joint venture authorized by Section 61-3-5, Miss. Code Ann. (1972), to operate the Corinth-Alcorn County Airport. The joint venture was created to provide an airport for the area and is governed by a five member board of commissioners appointed as follows: Alcorn County, two; City of Corinth, two; jointly, one. Alcorn County provided $75,000 for the operations of the entity during the 1996 fiscal year. Complete financial statements for the Corinth-Alcorn County Joint Airport Board can be obtained from Corinth-Alcorn County Airport, Route 1, Box 91, Corinth, Mississippi 38834. ALCORN COUNTY Notes to Financial Statements For the Year Ended September 30, 1996 21 Alcorn County is a participant with the City of Corinth in a joint venture to operate the Siege and Battle of Corinth Commission. The joint venture was created to promote tourism, and is governed by a five member board appointed as follows: Alcorn County, two; City of Corinth, two; jointly, one. No county funds were expended during the 1996 fiscal year. Complete financial statements for the Siege and Battle of Corinth Commission can be obtained from P.O. Box 45, Corinth, Mississippi 38834-0045. Alcorn County is a participant with the City of Corinth in a joint venture authorized by Section 41-13-15, Miss. Code Ann. (1972), to operate Magnolia Hospital. The joint venture was created to provide a community hospital for the area, and is governed by a five member board of directors, two appointed by the county Board of Supervisors, two appointed by the city and one jointly appointed. Alcorn County provided $5,000 for the 1996 fiscal year. Complete financial statements for the Magnolia Hospital can be obtained from Magnolia Hospital, Alcorn Drive, Corinth, Mississippi 38834. Alcorn County is a participant with the City of Corinth in a joint venture authorized by Section 55-9-1, Miss. Code Ann. (1972), to operate the Corinth-Alcorn County Recreational Commission. The joint venture was created to provide recreational opportunities for the area, and is governed by a five member board. Each entity appoints two of the five board members and the fifth is jointly appointed. Alcorn County provided $169,894 for the 1996 fiscal year. Complete financial statements for the Corinth-Alcorn County Recreational Commission can be obtained from Corinth-Alcorn County Recreational Commission, P.O. Box 669, Corinth, Mississippi 38834. Alcorn County is a participant with the City of Corinth in a joint venture established by local and private legislation (Senate Bill 3219), 1997 session, to operate the Corinth Area Tourism Promotion Council. The joint venture was created to promote tourism, and is governed by a seven member board of directors. Each entity appoints one board member, the Corinth Area Restaurant Association appoints three board members and the Corinth Area Hotel-Motel-Inn-Bed and Breakfast Association appoints two board members. The joint venture is funded with a 2 percent sales tax on motel and food and beverage sales within the City of Corinth. Complete financial statements for the Corinth Area Tourism Promotion Council can be obtained from the Corinth Area Tourism Promotion Council, P.O. Box 69, Corinth, Mississippi 38835. (13) Jointly Governed Organizations. The county participates in the following jointly governed organizations: The Region IV Mental Health-Mental Retardation Commission operates in a district composed of the Counties of Alcorn, Prentiss, Tippah and Tishomingo. The board of commissioners is comprised of one appointee from each county Board of Supervisors. The county appropriated approximately $43,227 for maintenance and support of the commission in fiscal year 1996. The Northeast Mississippi Planning and Development District operates in a district composed of the Counties of Alcorn, Benton, Marshall, Prentiss, Tippah and Tishomingo. The governing body is a 24 member board of directors, four appointed by the Board of Supervisors of each member county. The county appropriated $18,000 for maintenance and support of the district in fiscal year 1996. The Northeast Mississippi Community College operates in a district composed of the Counties of Alcorn, Prentiss, Tippah, Tishomingo and Union. The college Board of Trustees is composed of 15 members, 14 appointed by the county Boards of Supervisors as follows: Prentiss, six; Alcorn, two; Union, two; Tishomingo, two; Tippah, two; and one member appointed at-large. The county appropriated approximately $402,425 for maintenance and support of the college in fiscal year 1996. ALCORN COUNTY Notes to Financial Statements For the Year Ended September 30, 1996 22 The Northeast Mississippi Regional Solid Waste Authority operates in a district composed of the Counties of Alcorn, Benton, Marshall, Prentiss, Tippah and Tishomingo, and the Cities of Ashland, Booneville, Corinth, Holly Springs, Iuka and Ripley. Each of the 12 members appoints one board member. The county appropriated approximately $4,016 for maintenance and support of the authority in fiscal year 1996. (14) Defined Benefit Pension Plan. Plan Description. Alcorn 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. Funding Policy. PERS members are required to contribute 7.25% of their annual covered salary and the county is required to contribute at an actually 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, 1996, 1995 and 1994 were $363,194, $344,580 and $319,424, respectively, equal to the required contributions for each year. (15) Subsequent Event. Subsequent to September 30, 1996, Alcorn County issued the following debt obligation: Issue Interest Issue Type of Source of Date Rate Amount Financing Financing 4-97 4.7 $ 500,000 Other loan - road & bridge Tax levy 23 ALCORN COUNTY SUPPLEMENTAL INFORMATION 24 ALCORN COUNTY (This page left blank intentionally) 25 ALCORN COUNTY Schedule of Federal Financial Assistance For the Year Ended September 30, 1996 Catalog of Federal Federal Grantor/ Domestic Program Pass-through Grantor/ Assistance Pass-through or Award Federal Federal Program Title Number Grantor's Number Amount Revenue Expenditures U.S. Department of Housing and Urban Development/Passed-through the Mississippi Department of Economic and Community Development - Community development block grants Human Services building 14.219 4-002-PF-01 $ 300,000 $ 105,409 105,409 Industrial Leedo Road 14.219 3-113A-002-ED-IF01 301,851 104,456 104,456 Kossuth water 14.219 4-002-EM-01 75,000 22,377 22,377 Incubator system 14.219 2-002-AR-01 75,000 75,000 75,000 Total U.S. Department of Housing and Urban Development 307,242 307,242 U.S. Department of Interior National Park Service 15.904 N/A 100,000 39,048 39,048 U.S. Department of Justice Community oriented policing services grant 16.710 N/A 23,303 23,303 23,303 Total Federal Financial Assistance $ 369,593 369,593 26 ALCORN COUNTY (This page left blank intentionally) . by the county, two appointed by the city and others from the business community. The county provided $226,529 for the operations of the entity during the 1996 fiscal year. Complete financial statements. county. The county appropriated $18,000 for maintenance and support of the district in fiscal year 1996. The Northeast Mississippi Community College operates in a district composed of the Counties of. composed of the Counties of Alcorn, Benton, Marshall, Prentiss, Tippah and Tishomingo. The governing body is a 24 member board of directors, four appointed by the Board of Supervisors of each