NESHOBA COUNTY Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types For the Year Ended September 30, 1997_part1 docx

8 NESHOBA COUNTY Exhibit B Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types For the Year Ended September 30, 1997 Totals Governmental Memorandum Fund Types Only Special Debt Capital Primary General Revenue Service Projects Government Revenues Property taxes $ 2,139,060 941,633 734,336 3,815,029 Licenses, commissions and other revenue 202,806 272,860 475,666 Fines and forfeitures 330,667 330,667 Intergovernmental revenues: Federal sources 50,617 80,545 131,162 State and local sources 704,413 794,614 1,499,027 Charges for services 194,016 197,564 391,580 Use of money and property 33,743 52,717 9,522 146,001 241,983 Miscellaneous revenues 24,635 6,133 30,768 Total Revenues 3,679,957 2,346,066 743,858 146,001 6,915,882 Expenditures Current: General government 1,496,650 4,604 1,501,254 Public safety 1,255,974 198,574 1,454,548 Public works 1,446,814 1,446,814 Health & welfare 133,593 275,836 409,429 Culture & recreation 171,069 171,069 Conservation of natural resources 59,847 59,847 Economic development & assistance 52,600 52,600 Capital projects 213,313 213,313 Debt service: Principal retirement 211,056 404,795 415,000 1,030,851 Interest and fiscal charges 99,258 106,193 349,450 554,901 Total Expenditures 3,480,047 2,436,816 764,450 213,313 6,894,626 Excess of Revenues over (under) Expenditures 199,910 (90,750) (20,592) (67,312) 21,256 Other Financing Sources (Uses) Proceeds of other debt 104,400 104,400 Proceeds from sale of assets 19,219 19,219 Lease principal payments 160,000 160,000 Total Other Financing Sources (Uses) 104,400 179,219 0 0 283,619 Excess of Revenues and Other Sources over (under) Expenditures and Other Uses 304,310 88,469 (20,592) (67,312) 304,875 Fund Balances Beginning of year 510,514 410,104 302,927 2,781,902 4,005,447 Residual equity transfers 6,738 (6,738) End of year $ 821,562 498,573 282,335 2,707,852 4,310,322 The notes to the financial statements are an integral part of this statement. 9 NESHOBA COUNTY (This page left blank intentionally) 10 NESHOBA 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, l997 General Special Fund Revenue Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues Property taxes $ 2,327,652 2,301,921 (25,731) 938,157 938,157 Licenses, commissions and other revenue 187,538 212,695 25,157 270,711 270,711 Fines and forfeitures 328,908 330,667 1,759 Intergovernmental revenues: Federal sources 30,143 30,143 77,345 77,345 State and local sources 784,348 782,350 (1,998) 794,346 794,346 Charges for services 194,016 194,016 197,564 197,564 Use of money and property 35,622 35,622 8,791 8,791 Miscellaneous revenues 30,400 37,201 6,801 52,534 52,534 Total Revenues 3,918,627 3,924,615 5,988 2,339,448 2,339,448 0 Expenditures General government 1,587,214 1,583,392 3,822 5,238 5,238 Public safety 1,407,754 1,383,955 23,799 186,346 186,346 Public works 1,494,132 1,494,132 Health and welfare 136,958 136,958 102,320 102,320 Culture and recreation 171,069 171,069 Education 253,146 253,146 Conservation of natural resources 60,342 60,342 Economic development and assistance 52,600 52,600 Capital projects Debt service 34,156 61,777 (27,621) 510,988 510,988 Total Expenditures 3,703,239 3,703,239 0 2,299,024 2,299,024 0 Excess of Revenues over (under) Expenditures 215,388 221,376 5,988 40,424 40,424 0 Other Financing Sources (Uses) 5,988 0 (5,988) 204,032 204,032 0 Excess of Revenues and Other Sources over (under) Expenditures and Other Uses 221,376 221,376 0 244,456 244,456 0 Fund Balances Beginning of year 626,945 626,945 457,727 457,727 End of year $ 848,321 848,321 702,183 702,183 The notes to the financial statements are an integral part of this statement. 11 Exhibit C Debt Capital Service Funds Projects Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 724,046 724,046 9,613 9,613 144,749 144,749 733,659 733,659 0 144,749 144,749 0 240,113 240,113 764,450 764,450 764,450 764,450 0 240,113 240,113 0 (30,791) (30,791) 0 (95,364) (95,364) 0 0 0 0 0 0 0 (30,791) (30,791) 0 (95,364) (95,364) 0 291,881 291,881 2,798,488 2,798,488 261,090 261,090 2,703,124 2,703,124 12 NESHOBA COUNTY Exhibit D Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type - Solid Waste Enterprise Fund For the Year Ended September 30, 1997 Operating Revenues Charges for sales and services - solid waste fees $ 295,435 Miscellaneous 111 Total Operating Revenues 295,546 Operating Expenses Personal services 101,880 Contractual services 66,911 Materials and supplies 25,318 Depreciation expense 56,672 Indirect administrative cost 18,625 Bad debt expense 59,346 Total Operating Expenses 328,752 Operating Income (Loss) (33,206) Nonoperating Revenues (Expenses) Interest income 287 Interest expense (8,839) Sale of timber 1,503 Net Nonoperating Revenues (Expenses) (7,049) Net Income (Loss) For the Year (40,255) Retained Earnings Beginning of year as previously reported 232,682 Prior period adjustment: (Note 15) Error corrections (159,994) Beginning of year as restated 72,688 End of year $ 32,433 The notes to the financial statements are an integral part of this statement. 13 NESHOBA COUNTY Exhibit E Statement of Cash Flows - Proprietary Fund Type - Solid Waste Enterprise Fund For the Year Ended September 30, 1997 Cash Flows From Operating Activities Cash received from customers $ 253,114 Cash payments to suppliers for goods and services (93,042) Cash payments to employees for services (100,722) Net Cash Provided (Used) by Operating Activities 59,350 Cash Flows From Capital and Related Financing Activities Proceeds from sale of capital assets 1,503 Principal paid on capital leases (58,179) Interest expense paid (8,839) Net Cash Provided (Used) by Capital and Related Financing Activities (65,515) Cash Flows From Investing Activities Interest income 284 Net Increase (Decrease) in Cash and Cash Equivalents (5,881) Cash and Cash Equivalents at Beginning of Year 26,322 Cash and Cash Equivalents at End of Year $ 20,441 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating income (loss) $ (33,206) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation 56,672 Change in assets and liabilities: (Increase) decrease in accounts receivable 16,913 Increase (decrease) in claims payable 345 Increase (decrease) in advances to other funds 16,903 Increase (decrease) in due to other funds 1,723 Total adjustments 92,556 Net Cash Provided (Used) by Operating Activities $ 59,350 The notes to the financial statements are an integral part of this statement. NESHOBA COUNTY Notes to Financial Statements For the Year Ended September 30, 1997 14 (1) Significant Accounting Policies. A. Financial Reporting Entity. Neshoba 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 Neshoba 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 units which have significant operational or financial relationships with the county. Accordingly, the financial statements do not include the data of all of the county's component units necessary for reporting in conformity with generally accepted accounting principles. Neshoba County Public Library Neshoba County General Hospital and Nursing Home Neshoba County Industrial Development Authority Linwood Volunteer Fire District House Volunteer Fire District County Line Volunteer Fire District Dixon Volunteer Fire District Tucker Volunteer Fire District Fairview Volunteer Fire District Hope Volunteer Fire District 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 primary government financial statements. Board of Supervisors Chancery Clerk Circuit Clerk Justice Court Clerk Purchase Clerk Tax Assessor-Collector Sheriff The component unit discussed in Note 1B below is included in the county s reporting entity. NESHOBA COUNTY Notes to Financial Statements For the Year Ended September 30, 1997 15 B. Individual Component Unit Disclosures. Blended Component Unit Certain component units, although legally separate from the primary government, are nevertheless so intertwined with the primary government that they are, in substance, the same as the primary government. Therefore, this component unit’s balances and transactions are blended with the balances and transactions of the primary government. The Neshoba County Public Improvement Corporation is governed by a three-member board of directors appointed by the county Board of Supervisors. Although it is legally separate from the county, the corporation is reported as if it were part of the primary government because its sole purpose is to finance and construct a jail for Neshoba County prisoners. C. Basis of Presentation. The accompanying financial statements of the primary government have been prepared in conformity with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board. However, the primary government financial statements, because they do not include the financial data of the county's component units, do not present fairly, in all material respects, the financial position and results of operations and cash flows of its Enterprise Fund Type for the entire reporting entity. 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 1994 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 do not directly affect net expendable available financial resources. 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 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. NESHOBA COUNTY Notes to Financial Statements For the Year Ended September 30, 1997 16 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. PROPRIETARY FUND TYPE Enterprise Funds - These funds are used to account for those operations that are financed and operated in a manner similar to private business enterprises or where the county has decided that periodic determination of revenues earned, expenses incurred and/or net income is necessary for management accountability. FIDUCIARY FUND TYPE 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. ACCOUNT GROUPS - The General Fixed Assets Account Group is used to account for general fixed assets not accounted for in Proprietary Funds. The General Long-term Debt Account Group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of Proprietary Funds. F. Basis of Accounting/Measurement Focus. Governmental Fund Types and Agency Funds - All Governmental 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 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. Expenditures are recognized in the accounting period in which the fund liability is incurred. Modifications to the accrual basis of accounting include: • Licenses, fees, fines and forfeits and other miscellaneous revenues are recognized when received since they normally are only measurable at that time. • 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. • Obligations for accumulated unpaid employee benefits are recognized when paid. NESHOBA COUNTY Notes to Financial Statements For the Year Ended September 30, 1997 17 Proprietary Fund Types - All Proprietary Funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. The accrual basis of accounting is utilized. Under this method, revenues are recognized when earned and expenses are recognized at the time liabilities are incurred. G. 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. 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 cash on hand, 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. However, the county did not invest in any governmental securities during the fiscal year. I. Receivables. Receivables are reported net of allowances for uncollectible accounts, where applicable. J. Interfund Receivables/Payables. Transactions between funds that are representative of short-term lending/borrowing arrangements, and transactions that have not resulted in the actual transfer of cash at the end of the fiscal year are referred to as "interfund receivables/payables." Noncurrent portions of interfund receivables and payables are reported as "advances to/from other funds." Advances between funds are offset by a fund balance reserve account in applicable Governmental Funds to indicate that they are not available for appropriation and are not expendable available financial resources. [...].. .NESHOBA COUNTY Notes to Financial Statements For the Year Ended September 30, 1997 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... 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... meeting in September, levies property taxes for the ensuing fiscal year which begins on October 1 Real property taxes become a lien on January 1 of the current year and personal property taxes become a lien on March 1 of the current year Taxes on both real and personal property, however, are due on or before February 1 of the next succeeding year Taxes on motor vehicles and mobile homes become a lien and. .. lives of the respective assets: Mobile equipment Other furniture and equipment L 5 years 5-10 years Fund Equity Unreserved fund balance represents the amount available for budgeting future operations Unreserved retained earnings represents the net assets available for future operations or distribution Reservations of fund balance represent amounts that are not appropriable or are legally segregated for. .. the respective funds in which they are utilized No interest is capitalized on self-constructed assets because noncapitalization of interest does not have a material effect on the county' s financial statements Donated fixed assets are recorded at their fair market value at time of donation Enterprise fixed assets, excluding land, are depreciated on the straight-line method over the following estimated... 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 Fixed assets acquired or constructed for Proprietary Fund operations are capitalized at cost in the. .. 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 do 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... Reservations of retained earnings are limited to outside third-party restrictions Contributed capital represents equity acquired through capital grants, contributions from other funds, or fixed assets transferred from the General Fixed Assets Account Group 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. .. Taxes on both real and personal property, however, are due on or before February 1 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 18 . 8 NESHOBA COUNTY Exhibit B Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types For the Year Ended September 30, 1997 Totals Governmental. intentionally) 10 NESHOBA 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,. 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