BENTON COUNTY TABLE OF CONTENTS FINANCIAL _part2 pot

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BENTON 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 Special
Fund Revenue Funds
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Property taxes $ 935,353 954,320 18,967 316,802 325,604 8,802
Licenses, commissions and
other revenue 53,235 65,392 12,157 70,600 77,221 6,621
Fines and forfeitures 76,570 114,222 37,652
Intergovernmental revenues:
Federal sources 291,136 291,136
State and local sources 214,830 223,714 8,884 587,333 481,854 (105,479)
Charges for services 1,430 24,000 22,570 143,691 174,049 30,358
Use of money and property 25,900 21,629 (4,271) 9,447 12,060 2,613
Miscellaneous revenues 750 37,512 36,762 128 128
Total Revenues 1,308,068 1,440,789 132,721 1,419,009 1,362,052 (56,957)
Expenditures
General government 1,076,423 777,377 299,046 47,300 46,640 660
Public safety 318,760 317,057 1,703 41,600 21,551 20,049
Public works 1,125,762 1,114,428 11,334
Health and welfare 53,649 53,616 33
Culture and recreation 49,822 47,322 2,500
Conservation of natural resources 41,315 41,315
Economic development and assistance 6,000 6,000 291,136 291,136
Debt service 11,820 11,820 107,875 107,875

Total Expenditures 1,557,789 1,254,507 303,282 1,613,673 1,581,630 32,043
Excess of Revenues over (under)
Expenditures (249,721) 186,282 436,003 (194,664) (219,578) (24,914)
Other Financing Sources (Uses) 0 (74,123) (74,123) 77,500 139,895 62,395
Excess of Revenues and Other
Sources over (under) Expenditures
and Other Uses (249,721) 112,159 361,880 (117,164) (79,683) 37,481
Fund Balances
Beginning of year 416,204 674,280 416,570 644,004
End of year $ 166,483 786,439 299,406 564,321
The notes to the financial statements are an integral part of this statement.
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Exhibit C
Debt
Service Funds
Variance
Favorable
Budget Actual (Unfavorable)
24,000 27,960 3,960
977 1,115 138
24,977 29,075 4,098

32,524 25,331 7,193
32,524 25,331 7,193
(7,547) 3,744 11,291
0 0 0
(7,547) 3,744 11,291
37,030 40,044
29,483 43,788
BENTON COUNTY

Notes to Financial Statements
For the Year Ended September 30, 1995
10
(1) Significant Accounting Policies.
A. Financial Reporting Entity.
Benton 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 Benton 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 unit which has
a significant operational or financial relationship with the county. Accordingly, the financial statements
do not include the data of this component unit necessary for reporting in conformity with generally
accepted accounting principles.
• Lt. General Robert M. Bond Memorial Public Library
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
B. 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 unit, do 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.
BENTON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
11
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 do 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 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.
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
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.
E. 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.
BENTON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
12
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. 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:
• 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 1L for further explanation.
• Principal and interest on general long-term debt are recognized when due.
F. 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.
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. However, the county did not
invest in any governmental securities during the audited fiscal year.
BENTON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
13
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 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 (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 balance represents the amount that has been legally restricted to a specific purpose. The
county had the following reserved fund balance 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.
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 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 are due in the month that coincides with the month of original
purchase.
BENTON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
14
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 do 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.
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 Funds).
O. Total Column on Primary Government Financial Statements.
The total column on the primary government financial statements is captioned "Memorandum Only" to
indicate that it is presented only to facilitate financial analysis. Data in this column does not present
financial position and results of operations in conformity with generally accepted accounting principles.
Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
BENTON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
15
(2) 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
Special Debt
General Revenue Service
Budget (Cash Basis) $ 112,159 (79,683) 3,744
Increase (Decrease)
Net adjustment for revenue accruals 12,732 47,911 (50)

Net adjustment for expenditure accruals (77,231) 92,228
GAAP Basis $ 47,660 60,456 3,694
(3) Intergovernmental Revenues.
Intergovernmental revenues consisted of the following at September 30, 1995:
Governmental Fund Types
Special
General Revenue
Federal Sources:
Community development block grants $ 291,136
Bridge inspection program 2,480
Total Federal Sources $ 0 293,616
State Sources:
State Grants:
Reimbursement for food stamps, welfare $ 12,589
Reimbursement for homestead exemption 108,650
Reimbursement for state aid roads 29,052
Reimbursement for emergency
management funds 9,595
Total State Grants $ 121,239 38,647
State Shared Revenues:
Motor vehicle fuel tax $ 351,506
Motor vehicle licenses 29,206 21,352
Severance taxes 2,176
Insurance premium tax distribution 31,448
National forest distribution 2,570 72,370
Payments in lieu of taxes 29,042
Railcar tax 12,583
Land redemption-state rebate 267
Harvest and overload permits 6,154
Total State Shared Revenues $ 105,116 454,178

BENTON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
16
(4) Deposits.
The carrying amount of the county's total deposits with financial institutions at September 30, 1995, was
$1,460,161 and the bank balance was $1,556,120. 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 or collateralized with
securities held by the county or its agent in the
county's name. $ 251,160
Amount collateralized with securities held by the pledging
financial institution's trust department or agent in the
county's name. 1,304,960
Total Bank Balance $ 1,556,120
The Financial Institution Reform, Recovery and Enforcement Act (FIRREA) requires a collateral security
agreement to be executed between the county and the depository bank. The agreement was not executed with
Union Planters Bank. Since the requirements of FIRREA have not been met pursuant to an executed collateral
security agreement, the county may not have a perfected security interest in $1,185,327 of the collateral in case of
default by the depository institution.
(5) Deferred Compensation Plan.
The county offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
Section 457. The plan, available to all employees of the county, permits participants to defer a portion of their
salary until future years, thereby deferring taxation on the portion deferred. The deferred compensation is not
available to employees until they are separated from service or face an unforeseeable financial emergency.
All amounts of compensation deferred under the plan, all property 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 his
beneficiary) solely the property of the employer (without being restricted to the provisions of benefits under the

plan), subject only to the claims of the employer's general creditors. Participants' rights under the plan are equal to
those of the employer's general creditors in an amount equal to the fair market value of the deferred account for
each participant.
At June 30, 1995, assets held for participants employed by the county and reported in an Agency Fund totaled
$17,257. The county believes that it is unlikely that it will use the assets to satisfy the claims of general creditors
in the future. The county has no liability for losses under the plan, but the Board of Trustees of the Public
Employees' Retirement System, as plan administrator, does have the duty of due care that would be required of an
ordinary prudent investor.
BENTON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
17
(6) Interfund Receivables and Payables.
Individual fund interfund receivables and payables consisted of the following at September 30, 1995:
Interfund Interfund
Receivables Payables
Due from/to Other Funds
General Fund $ 0 13,649
Special Revenue Funds:
Reappraisal maintenance 1,148
Countywide fire 383
Waste disposal 1,264
Road maintenance 10,280
Total 13,075 0
Debt Service Funds:
Disaster emergency 287
Jail I & S 287
Total 574 0
Total Due from/to Other Funds $ 13,649 13,649
(7) Fixed Assets.

Changes in General Fixed Assets:
Balance Balance
Oct. 1, 1994 Additions Deletions Sept. 30, 1995
Governmental Funds:
Land $ 86,680 86,680
Buildings 1,238,914 1,238,914
Mobile equipment 930,950 141,463 151,093 921,320
Other furniture and equipment 155,652 5,180 1,530 159,302
Leased property under capital leases 447,389 139,561 40,000 546,950
Total $ 2,859,585 286,204 192,623 2,953,166
(8) Commitments.
On December 1, 1989, the county entered into an agreement to lease a county building to the ABC Company
for a manufacturing operation. On December 16, 1994, the company ceased operations. The company breached
the agreement with the county when it stopped making lease payments to Union Planters National Bank on
May 4, 1995. On August 7, 1995, Benton County began making the lease payments, paying the June, July and
August installments, and began making the regular monthly payments on September 5, 1995. The county
committed to make the lease payments until the industrial revenue bonds are paid off or another industry moves in
the building and assumes the lease payments. At September 30, 1995, the total commitment was $74,376, with
monthly payments of $2,434.
BENTON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
18
(9) Claims and Judgments.
Risk Financing.
The county is exposed to risk of loss related to workers' compensation for injuries to its employees. On
February 13, 1990, the county decided to stop carrying workers' compensation insurance because of its prohibitive
cost and joined the Mississippi Public Entity Workers' Compensation Trust, a public entity risk pool, to cover its
exposure to risk of loss. The pool was formed on January 1, 1990, by the Mississippi Association of Supervisors,
Inc., pursuant to Section 71-3-75, Miss. Code Ann. (1972), to provide workers' compensation insurance for the

benefit of participating counties and various other political subdivisions in the State of Mississippi. 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, 1995 to January 1, 1996. The pool may make an overall supplemental assessment or declare a refund
depending on the loss experience of all the entities it insures.
(10) Lease Obligations.
Operating.
As Lessee:
The following is a schedule by years of future minimum rental payments required under operating leases that have
initial or remaining noncancelable lease terms in excess of one year as of September 30, 1995:
Amounts
Year Ended September 30:
1996 $ 3,102
1997 1,896
1998 560
Total Minimum Payments Required $ 5,558
Total rentals amounted to $7,209 for the fiscal year ended September 30, 1995.
Capital.
As Lessee:
The following is an analysis of property leased under capital leases by major classes as of September 30, 1995:
General
Fixed Assets
Classes of Property Group
Mobile equipment $ 505,189
Other furniture and equipment 41,761
Leased Property Under Capital Leases $ 546,950