STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR PHIL BRYANT State Auditor RAMONA HILL, CPA Director, Financial and Compliance Audit Division BRENT BALLARD, CPA Director, Education Audit Section_part2 doc

7 Fund Equity: Investment in general fixed assets 8,312,143 8,312,143 Fund balances Reserved for: Investments 14,730 14,730 Unemployment benefits 48,150 48,150 Debt service 102,777 102,777 Inventory 6,472 6,472 Unreserved: Undesignated 519,425 187,291 (14,760) 419,409 1,111,365 Total Fund Equity 519,425 193,763 (14,760) 102,777 482,289 8,312,143 9,595,637 Total Liabilities and Fund Equity $ 676,431 577,856 5,240 105,211 787,183 8,312,143 520,860 10,984,924 The notes to the financial statements are an integral part of this statement. This is trial version www.adultpdf.com 8 SUNFLOWER COUNTY SCHOOL DISTRICT 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, 1997 Fiduciary Governmental Fund Types Fund Type Total Special Capital Debt Expendable (Memorandum General Revenue Projects Service Trust Only) Revenues Local sources $ 1,471,574 51,347 4 119,906 2,091 1,644,922 State sources 4,649,466 684,647 5,334,113 Federal sources 1,000 2,251,854 2,252,854 Sixteenth section sources 267,919 267,919 Total Revenues 6,122,040 2,987,848 4 119,906 270,010 9,499,808 Expenditures Instruction 4,109,116 1,558,493 5,667,609 Support services: Students 57,423 156,523 213,946 Instructional staff 281,644 256,806 538,450 General administration 226,663 197,207 13,305 437,175 School administration 482,812 482,812 Business 118,425 118,425 Operation and maintenance of plant 651,065 27,101 678,166 Transportation 375,346 139,072 514,418 Central 10,737 358 11,095 Noninstructional services 11,329 1,014,964 1,026,293 Sixteenth section 36,324 36,324 Facilities acquisition and construction 14,764 14,764 Debt service: Principal 1,985 175,300 177,285 Interest 223 34,245 34,468 Other 750 750 Total Expenditures 6,326,768 3,350,524 14,764 210,295 49,629 9,951,980 Excess of Revenues Over (Under) Expenditures (204,728) (362,676) (14,760) (90,389) 220,381 (452,172) This is trial version www.adultpdf.com 9 Other Financing Sources (Uses) Sale of other property 90 90 Operating transfers in 239,126 212,387 53,066 14,114 518,693 Operating transfers out (227,315) (87,503) (3,066) (200,000) (517,884) Total Other Financing Sources (Uses) 11,901 124,884 50,000 (185,886) 899 Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses (192,827) (237,792) (14,760) (40,389) 34,495 (451,273) Fund Balances July 1, 1996 712,252 431,011 143,166 433,064 1,719,493 Prior period adjustment: Reclassify fund equity (Note 9) (469) (469) July 1, 1996, as restated 712,252 430,542 143,166 433,064 1,719,024 Increase in reserve for inventory 1,013 1,013 June 30, 1997 $ 519,425 193,763 (14,760) 102,777 467,559 1,268,764 The notes to the financial statements are an integral part of this statement. This is trial version www.adultpdf.com 10 SUNFLOWER COUNTY SCHOOL DISTRICT Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual All Governmental Fund Types For the Year Ended June 30, 1997 General Fund Special Revenue Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues Local sources $ 1,472,000 1,471,574 (426) 51,850 51,347 (503) State sources 4,700,000 4,649,466 (50,534) 705,200 684,647 (20,553) Federal sources 1,000 1,000 2,431,350 2,251,854 (179,496) Total Revenues 6,173,000 6,122,040 (50,960) 3,188,400 2,987,848 (200,552) Expenditures Instruction 4,125,000 4,109,116 15,884 1,750,000 1,558,493 191,507 Support services: Students 64,000 57,423 6,577 160,000 156,523 3,477 Instructional staff 290,000 281,644 8,356 260,000 256,806 3,194 General administration 230,000 226,663 3,337 200,000 197,207 2,793 School administration 485,000 482,812 2,188 Business 120,000 118,425 1,575 Operation and maintenance of plant 655,000 651,065 3,935 30,000 27,101 2,899 Transportation 380,000 375,346 4,654 140,000 139,072 928 Central 11,000 10,737 263 1,000 358 642 Noninstructional services 12,000 11,329 671 1,015,000 1,014,964 36 Facilities acquisition and construction Debt service: Principal 450 1,985 (1,535) Interest 232 223 9 Other Total Expenditures 6,372,682 6,326,768 45,914 3,556,000 3,350,524 205,476 Excess of Revenues Over (Under) Expenditures (204,728) (362,676) Other Financing Sources 735,090 239,216 (495,874) 315,000 212,387 (102,613) Other Financing Uses (725,000) (227,315) 497,685 (90,000) (87,503) 2,497 Total Other Financing Sources (Uses) 10,090 11,901 1,811 225,000 124,884 (100,116) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses (192,827) (237,792) Fund Balances July 1, 1996 712,252 431,011 Prior period adjustment: Reclassify fund equity (469) July 1, 1996, as restated 712,252 430,542 Increase in reserve for inventory 1,013 June 30, 1997 $ 519,425 193,763 The notes to the financial statements are an integral part of this statement. 11 Exhibit C Capital Projects Funds Debt Service Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 4 4 119,950 119,906 (44) 4 4 0 119,950 119,906 (44) 15,000 14,764 236 176,000 175,300 700 35,000 34,245 755 1,000 750 250 15,000 14,764 236 212,000 210,295 1,705 (14,760) (90,389) 400,000 (400,000) 55,000 53,066 (1,934) (3,400) (3,066) 334 400,000 0 (400,000) 51,600 50,000 (1,600) (14,760) (40,389) 0 143,166 0 143,166 (14,760) 102,777 12 SUNFLOWER COUNTY SCHOOL DISTRICT Exhibit D Combined Statement of Revenues, Expenses, and Changes in Fund Balances - Nonexpendable Trust Funds For the Year Ended June 30, 1997 Fiduciary Fund Type Nonexpendable Trust Operating Revenues Earnings on investments $ 809 Total Operating Revenues 809 Operating Expenses 0 Operating Income 809 Nonoperating Revenues (Expenses) 0 Operating Transfers Out (809) Net Income 0 Fund Balances July 1, 1996 14,730 June 30, 1997 $ 14,730 The notes to the financial statements are an integral part of this statement. 13 SUNFLOWER COUNTY SCHOOL DISTRICT Exhibit E Combined Statement of Cash Flows - Nonexpendable Trust Funds For the Year Ended June 30, 1997 Fiduciary Fund Type Nonexpendable Trust Cash Flows from Operating Activities Operating income $ 809 Adjustments to reconcile operating income to net cash provided by operating activities: Interest revenue included in operating income (809) Net Cash Provided by Operating Activities 0 Cash Flows from Noncapital Financing Activities Operating transfers out (809) Net Cash Provided (Used) by Noncapital Financing Activities (809) Cash Flows from Capital and Related Financing Activities 0 Cash Flows from Investing Activities Acquisition of certificate of deposit (14,730) Disposition of certificate of deposit 14,730 Interest revenue received 809 Net Cash Provided by Investing Activities 809 Net Increase in Cash and Cash Equivalents 0 Cash and Cash Equivalents at Beginning of Year 0 Cash and Cash Equivalents at End of Year $ 0 The notes to the financial statements are an integral part of this statement. SUNFLOWER COUNTY SCHOOL DISTRICT Notes to Financial Statements For the Year Ended June 30, 1997 14 (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 district's governing board. As defined by generally accepted accounting principles, the school district is considered a "primary government." 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 district by providing a combined overview of financial position and results of operations of the district and cash flows of the Nonexpendable Trust Funds. 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 district 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 district 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, or expenses. School district 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 district. 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. SUNFLOWER COUNTY SCHOOL DISTRICT Notes to Financial Statements For the Year Ended June 30, 1997 15 Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. The primary revenue source is local property taxes levied specifically for debt service. FIDUCIARY FUNDS Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the district in a trustee capacity or as an agent for individuals, private organizations and/or other funds. These include Expendable Trust, Nonexpendable Trust and Agency Funds. Expendable Trust Funds are accounted for in essentially the same manner as governmental funds. Nonexpendable Trust Funds are used to account for the principal portion of Trust Funds, the part which cannot be expended. 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 district. No depreciation has been provided on the general fixed assets. The long-term liabilities incurred by the school district 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 or expenses 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 or accrual basis of accounting, as appropriate, 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. SUNFLOWER COUNTY SCHOOL DISTRICT Notes to Financial Statements For the Year Ended June 30, 1997 16 Fiduciary fund revenues and expenses or expenditures (as appropriate) are recognized on the basis consistent with the fund's accounting measurement objective. Nonexpendable Trust Funds are accounted for on the accrual basis. 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. 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 and Cash Equivalents. The school district 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. For purposes of the combined statement of cash flows, the school district considers the following to be cash equivalents if they have a maturity of three months or less when acquired: all highly liquid investments and certificates of deposit. J. Investments. The school district is allowed, by statute, to invest excess funds, except for sixteenth section principal 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). . 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. purpose financial statements show the basic financial statements of the school district by providing a combined overview of financial position and results of operations of the district and cash. Cash and Cash Equivalents 0 Cash and Cash Equivalents at Beginning of Year 0 Cash and Cash Equivalents at End of Year $ 0 The notes to the financial statements are an integral part of this statement. SUNFLOWER