JONES COUNTY Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types and Expendable Trust Funds For the Year Ended September 30, 1995 Exhibit B Governmental Fund Types General Revenues Property taxes Licenses, commissions and other revenue Fines and forfeitures Intergovernmental revenues: Federal sources State and local sources Charges for services Use of money and property Miscellaneous revenues Total Revenues Debt Service 6,430,440 2,038,381 1,317,299 326,983 282,250 $ Special Revenue 614,933 1,121,749 138,387 297,885 11,891 8,609,585 Expenditures Current: General government Public safety Public works Health & welfare Culture & recreation Conservation of natural resources Economic development & assistance Capital projects Debt service: Principal retirement Interest and fiscal charges Total Expenditures 15,009 1,370,063 77,433 12,020 5,602,741 (657,622) 15,009 208,566 404,027 4,039,355 724,423 Excess of Revenues over (under) Expenditures 9,786,120 52,764 194,358 20,969 4,945,119 241,025 200,019 7,885,162 Totals Memorandum Only Primary Government 941,916 282,250 652,258 1,424,220 3,732,208 1,643,619 455,075 713,005 252,709 62,859 386,775 197,868 Capital Projects Fiduciary Fund Type Expendable Trust 9,826 652,258 2,598,733 138,387 507,252 32,860 14,939,776 1,623,143 3,950,600 2,047,646 4,494,430 713,005 408,910 62,859 1,091,914 1,821,011 800,000 476,954 1,276,954 1,623,143 9,826 1,118,458 688,993 16,397,826 93,109 (1,608,134) (9,826) (1,458,050) 156,201 705,139 Other Financing Sources (Uses) Proceeds of general obligation bonds Proceeds of other debt Operating transfers in Operating transfers out Other sources - proceeds of other debt federal revenue Total Other Financing Sources (Uses) (46,178) 3,940,596 150,000 9,000 4,053,418 Excess of Revenues and Other Sources over (under) Expenditures and Other Uses 678,245 3,282,974 93,109 (1,458,134) (826) 2,595,368 (26,191) 1,124,227 51,424 1,481,858 15,750 2,647,068 8,967 (1,888) 661,021 4,405,313 14,666 (60,844) 150,000 9,000 75,000 Fund Balances Beginning of year Residual equity transfers End of year 3,700,000 113,752 191,653 (139,809) $ 3,700,000 278,418 200,653 (200,653) 75,000 7,079 144,533 The notes to the financial statements are an integral part of this statement 23,724 14,924 5,249,515 JONES COUNTY (This page left blank intentionally) JONES 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, l995 General Fund Special Revenue Funds Budget Revenues Property taxes Licenses, commissions and other revenue Fines and forfeitures Intergovernmental revenues: Federal sources State and local sources Use of money and property Miscellaneous revenues Total Revenues (1,463) 2,037,672 2,037,672 314,631 292,316 745 617,899 617,899 23,238 1,611,923 295,471 54,523 9,028,697 718 753,708 1,393,667 96,528 81,154 4,980,628 731,731 1,390,666 96,528 84,155 4,958,651 4,438,741 1,661,338 143,015 844,380 251,746 386,551 63,853 509,175 214,049 421,267 3,962,336 214,049 421,267 3,962,336 156,201 156,201 738,504 738,504 (500) (44,358) (152,965) (209) 89,453 89,453 8,401,485 4,255,142 1,661,338 129,000 844,380 251,746 386,551 63,853 509,175 500 147,044 152,965 8,401,694 5,581,810 5,581,810 627,212 627,003 (209) (601,182) (623,159) (21,977) (277,805) (279,693) (1,888) 3,927,847 3,929,735 1,888 349,407 347,310 (2,097) 3,326,665 3,306,576 (20,089) 169,559 169,559 1,177,120 1,199,701 518,966 516,869 4,503,785 4,506,277 102,686 Excess of Revenues over (under) Expenditures Other Financing Sources (Uses) Excess of Revenues and Other Sources over (under) Expenditures and Other Uses Fund Balances Beginning of year End of year 6,436,595 23,238 1,611,923 294,753 54,523 9,028,697 Expenditures General government Public safety Public works Health and welfare Culture and recreation Education Conservation of natural resources Economic development and assistance Capital projects Debt service Other costs Total Expenditures 6,438,058 313,886 292,316 $ Actual Variance Favorable (Unfavorable) $ The notes to the financial statements are an integral part of this statement 10 183,599 14,015 Budget Actual Variance Favorable (Unfavorable) (21,977) (3,001) 3,001 (21,977) Exhibit C Debt Service Funds Capital Projects Funds Budget Actual 1,308,892 52,764 Actual 19,384 19,384 19,384 19,384 1,854,206 Budget Variance Favorable (Unfavorable) 1,308,892 52,764 Variance Favorable (Unfavorable) 1,854,206 1,361,656 1,361,656 1,276,954 1,276,954 1,276,954 1,276,954 1,854,206 1,854,206 84,702 84,702 (1,834,822) (1,834,822) 0 0 147,000 147,000 84,702 84,702 (1,687,822) (1,687,822) 52,468 52,468 1,712,181 1,712,181 137,170 137,170 24,359 24,359 11 JONES COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 (1) Significant Accounting Policies A Financial Reporting Entity Jones 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 Jones 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 not include the data of all of the county's component units necessary for reporting in conformity with generally accepted accounting principles • • • • • South Central Regional Medical Center West Jones Fire Protection District Sharon-Shady Grove Fire Protection District Northeast Jones Fire Protection District South Jones Fire Protection 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 • • • • • • • B Board of Supervisors Chancery Clerk Circuit Clerk Justice Court Clerk Purchase Clerk Tax Assessor-Collector Sheriff 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 not include the financial data of the county's component units, not present fairly, in all material respects, the financial position and results of operations for the entire reporting entity C 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 1988 by the Government Finance Officers Association and the Mississippi County Financial Accounting Manual as revised in 1993 by the Office of the State Auditor 12 JONES COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 D 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 not directly affect net expendable available financial resources Account groups are presented for general fixed assets and general long-term obligations 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 expendable trusts or 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 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 FIDUCIARY FUND TYPES Expendable Trust Funds - These funds are used to account for assets held by the county in a formal trustee capacity where the principal and income may be expended in the course of designated operations 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 General Fixed Assets - The General Fixed Assets Account Group is used to account for the fixed assets of the county General Long-term Debt - The General Long-term Debt Account Group is used to account for all long-term debt of the county 13 JONES COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 E Basis of Accounting/Measurement Focus Governmental Fund Types and Expendable Trust and Agency Funds - All Governmental Funds and Expendable Trust 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, Expendable Trust Funds 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 Significant revenue sources which are susceptible to accrual include intergovernmental revenues, consisting of grants, entitlements and shared revenues and charges for services Expenditures are recognized in the accounting period in which the fund liability is incurred Modifications to the accrual basis of accounting include: • • 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 1L for further explanation • Principal and interest on general long-term debt are recognized when due • F Licenses, fees, fines and forfeits and other miscellaneous revenues are recognized when received since they normally are only measurable at that time Obligations for accumulated unpaid employee benefits are recognized when paid 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 14 JONES COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 G 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 amounts in 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 H Receivables Receivables are reported net of allowances for uncollectible accounts, where applicable I Interfund Receivables/Payables Interfund receivables and payables arise principally from loans and advances between county funds and transactions that have not resulted in the actual transfer of cash at the end of the fiscal year Interfund loans due in the subsequent fiscal year are reported as "Due To" and "Due From Other Funds" and noncurrent portions of interfund receivables and payables are reported as "Advances To" and "Advances From Other Funds" on the combined balance sheet The county has no interfund advances outstanding at the end of the fiscal year J 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 are stated at cost where historical records are 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 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 (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 K Governmental Fund Equity The unreserved fund balances represent the amount available for budgeting future operations The reserved fund balances represent the amount that has been legally restricted to a specific purpose or that is not available for appropriation or expenditure The county had the following reserved fund balances at year end: Reserved for Debt Service - An account used to segregate a portion of fund balance for debt service resources legally restricted to the payment of general long-term debt principal and interest amounts maturing in future years 15 JONES COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 Reserved for Loans Receivable - An account used to segregate a portion of fund balance that is not considered available spendable resources because of long-term loans made to outside entities from the proceeds of community development block grants received from the State of Mississippi Fund balance has been reserved in an amount equal to the balance of loans receivable L 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 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 in September, levies property taxes for the ensuing fiscal year which begins on October Real property taxes become a lien on January of the current year and personal property taxes become a lien on March of the current year Taxes on both real and personal property, however, are due on or before February 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 Generally accepted accounting principles require property taxes to be recognized at the levy date if measurable and available All property taxes are recognized as revenue when received Real property taxes are recognized as revenue when received because most delinquent real property taxes are collected by selling real property for taxes, together with all fees, penalties and damages accruing until date of sale, before the close of the fiscal year The remaining amount of real property not sold for taxes at the tax sale is considered immaterial; therefore, no end of year delinquent taxes receivable is recorded The amount of delinquent personal property taxes unpaid at year end is also considered immaterial Motor vehicle and mobile home taxes not meet the measurability and collectibility criteria for property tax recognition because the lien and due date cannot be established until the date of original purchase occurs M Intergovernmental Revenues in Governmental Funds Intergovernmental revenues, consisting of grants, entitlements and shared revenues, are usually recorded in Governmental Funds when measurable and available However, the "available" criterion applies for certain federal grants and shared revenues when the expenditure is made because expenditure is the prime factor for determining eligibility Similarly, if cost sharing or matching requirements exist, revenue recognition depends on compliance with these requirements N Interfund Transfers Interfund transfers are segregated from revenues and expenditures in the county's financial statements Reimbursements of expenditures made between funds are not recorded as interfund transfers but are recorded as expenditures in the reimbursing fund and as a reduction of expenditures in the reimbursed fund The county reported the following types of interfund transactions: Residual Equity Transfers - Nonroutine or nonrecurring transfers between funds are reported as additions to or deductions from fund equity 16 JONES COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 Operating Transfers - Legally authorized and routine transfers between funds are reported as operating transfers Operating transfers are reported as "Other Financing Sources (Uses)" in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances (for Governmental and Expendable Trust Funds) (2) Stewardship, Compliance and Accountability Individual Fund Deficits The following funds had deficit fund balances at September 30, 1995: Deficit Amount Styling Special Revenue Funds: Garbage and solid waste Countywide road and bridge (3) $253,801 23,930 Budgetary Basis vs GAAP The accompanying Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Budgetary Basis) and Actual - All Governmental Fund Types presents comparisons of the legally adopted budget with actual data on a budgetary basis Since the budgetary and GAAP presentations of actual data differ, a reconciliation of the results of operations for the year follows: Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Governmental Fund Types General Budget (Cash Basis) GAAP Basis (4) 3,306,576 84,702 (1,687,822) (4,363) (19,239) 8,407 (1,375) 231,063 678,245 $ Capital Projects 263,327 67,608 Increase (Decrease) Net adjustment for revenue accruals Net adjustment for expenditure accruals Debt Service 347,310 $ Special Revenue 3,282,974 93,109 (1,458,134) Intergovernmental Revenues Intergovernmental revenues consisted of the following at September 30, 1995: Governmental Fund Types General Federal Sources: Emergency management funds Community development block grants Bridge inspection program Total Federal Sources Special Revenue $ 25,646 621,252 5,360 $ 652,258 Debt Service 17 JONES COUNTY Notes to Financial Statements For the Year Ended September 30, 1995 Governmental Fund Types General State Sources: State Grants: Reimbursement for food stamps, welfare $ Reimbursement for homestead exemption Reimbursement for state aid roads Reimbursement for emergency management funds Reimbursement for law enforcement training Mississippi Emergency Management grants Masonite access road Total State Grants State Shared Revenues: Motor vehicle fuel tax Motor vehicle licenses Severance taxes Insurance premium tax distribution National forest distribution Payments in lieu of taxes Motor vehicle rental tax ABC permits Railcar taxes Harvest permits Total State Shared Revenues Local Sources: City of Laurel - appropriation for civil defense (5) Special Revenue Debt Service 120,224 725,750 48,867 15,559 4,150 10,059 860,183 $ 31,045 3,000 98,471 472,299 293,318 256,038 171,778 93,111 52,764 $ 185,883 23,238 28,732 1,125 22,588 11,166 $ 261,566 1,297,710 52,764 $ 28,039 Deposits and Investments Deposits: The carrying amount of the county's total deposits with financial institutions at September 30, 1995, was $3,187,001 and the bank balance was $4,389,934 The bank balance is categorized below to reflect the level of credit risk assumed by the county at year end Bank Balance Amount federally insured $ Amount collateralized with securities held by the pledging financial institution's agent in the county's name Total Bank Balance 300,000 4,089,934 $ 4,389,934 18 ... Association and the Mississippi County Financial Accounting Manual as revised in 1993 by the Office of the State Auditor 12 JONES COUNTY Notes to Financial Statements For the Year Ended September 30,... 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... the State of Mississippi The county is governed by an elected five-member Board of Supervisors Generally accepted accounting principles require Jones County to present these financial statements