HANCOCK COUNTY TABLE OF CONTENTS FINANCIAL SECTION_part7 ppt

OFFICE OF THE STATE AUDITOR
STEVEN A. PATTERSON
AUDITOR
3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211 (601) 364-2888 FAX (601) 364-2828
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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE
LAWS AND REGULATIONS
July 15, 1996
Members of the Board of Supervisors
Hancock County, Mississippi
We have audited the general purpose financial statements of Hancock County, Mississippi, as of and for
the year ended September 30, 1995, and have issued our report thereon dated July 15, 1996. We conducted our
audit in accordance with generally accepted auditing standards and the procedures prescribed by the State
Auditor, and accordingly, included such tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
As required by the state legal compliance audit program prescribed by the Office of the State Auditor,
we have also performed procedures to test compliance with certain state laws and regulations. Our procedures
were substantially less in scope than an audit, the objective of which is the expression of an opinion on the
county's compliance with these requirements. Accordingly, we do not express such an opinion.
The results of our procedures and our audit of the general purpose financial statements disclosed certain
immaterial instances of noncompliance with state laws and regulations. Our findings and recommendations and
your responses are included in the accompanying "Schedule of Auditor's Findings and Recommendations."
The findings described in the accompanying "Schedule of Auditor's Findings and Recommendations"
came to our attention as a result of the audit procedures and tests that we applied. For those items not tested,
nothing came to our attention that would lead us to believe that Hancock County, Mississippi, had not complied
with applicable state laws and regulations, other than those laws and regulations for which we noted violations in
our testing referred to above.
This report is intended for the use of the management. This is not intended to limit the distribution of
this report, which is a matter of public record.
WILLIAM S. JONES, CPA
Director, Department of Audit

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HANCOCK COUNTY
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HANCOCK COUNTY
FINDINGS AND RECOMMENDATIONS
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HANCOCK COUNTY
Schedule of Auditor's Findings and Recommendations
For the Year Ended September 30, 1995
A. Findings for Independent Auditor's Report on the Internal Control Structure Based on an Audit of the
General Purpose Financial Statements Performed in Accordance with "Government Auditing
Standards":
REPORTABLE CONDITIONS
Chancery Clerk.
1. Finding
As reported in the prior year audit report, the Chancery Clerk did not properly perform
reconciliations of the land redemption account.
Recommendation
The Chancery Clerk should insure that the bank reconciliations are properly performed.
Chancery Clerk's Response
This has been corrected.
Sheriff.
2. Finding
As reported in the prior year audit report, expenditures exceed revenues in the inmate canteen
fund for the fiscal year even though inventory purchased for resale had a high enough mark up
to make a profit.

Recommendation
The Sheriff personally should monitor operations of the canteen to determine the cause of the
deficit and take adequate measures to ensure this does not happen in the future.
Sheriff's Response
We now count inventory once a week, thereby, preventing over purchasing and currently, we
do not have a deficit.
3. Finding
As reported in the prior year audit report, we noted the following internal control deficiencies
in the accounts handled by the Sheriff's Office:
a. Proceeds from the commissary sales were not settled on a monthly basis to the county.
b. Cash balances were not computed monthly and carried forward.
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Recommendation
The Sheriff should take whatever steps necessary to correct the deficiencies noted in internal
controls.
Sheriff's Response
Settlements are being made by the 20th of each month beginning October, 1995, and monthly
cash balances are being computed beginning April 15, 1996.
Inventory Control Clerk.
4. Finding
As reported in the prior year audit report, we noted that additions and deletions were
sometimes not properly reflected in the general fixed assets account ledgers.
Recommendation
The Inventory Control Clerk should insure that the above deficiencies have been corrected.
Inventory Control Clerk's Response
I will correct the above problem as soon as possible.
B. Finding for Independent Auditor's Single Audit Report on the Internal Control Structure Used in
Administering Federal Financial Assistance Programs:
REPORTABLE CONDITION
Board of Supervisors.

Finding
As reported in the prior year audit report, the community development block grant (CDGB)
expenditures were not reflected in the county's general ledger.
Recommendation
All federal grant expenditures should be included in the county's general ledger.
Board of Supervisors' Response
The CDBG referenced above successfully closed out during fiscal year ending
September 30, 1995. In the future, the county will include all federal grants in its general
ledger.
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C. Findings for Independent Auditor's Report on Compliance with State Laws and Regulations:
Board of Supervisors.
1. Finding
Section 19-11-11, Miss. Code Ann. (1972), requires the Board of Supervisors to prepare a
budget for all funds, except Trust and Agency Funds. Some funds were not budgeted.
Recommendation
The board should budget all funds.
Board of Supervisors' Response
The two funds questioned, Tidelands and Juvenile Detention Center funds, had no expenditure
activity during the year. In the future, all funds received will be budgeted at a regular board
meeting following receipt of the grant.
2. Finding
As reported in the prior year audit report, Section 19-11-17, Miss. Code Ann. (1972), prohibits
the incurring of expenditures in excess of the final budget as approved by the Board of
Supervisors. Actual expenditures exceeded budgeted amounts in some funds.
Recommendation
The board should not make expenditures in excess of budgeted amounts.
Board of Supervisors' Response
Expenditures exceeded budgeted amounts because adjustments were made after the end of the
fiscal year.

3. Finding
Section 31-7-10(5) and 31-7-13(e), Miss. Code Ann. (1972), gives the county the authority to
enter into contracts to lease purchase equipment and limits the number of years not to exceed
five. The Board of Supervisors entered into a lease purchase agreement which exceeded five
years.
Recommendation
The board should not enter into a lease purchase agreement which exceeds the five year
limitation.
Board of Supervisors' Response
The lease term for the lease purchase commented on above, E-911 communication equipment,
which was installed in three locations, was for 60 months commencing upon the completion of
installation. Due to the length of time required to install the equipment, an interim financing
arrangement was necessary. While the board feels that the two instruments are separate from
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each other, it does want to comply with the state statute. In that regard, the board renegotiated
the term of the lease with the bank to shorten it.
4. Finding
As reported in the prior year audit report, Section 19-5-22, Miss. Code Ann. (1972), requires
the Board of Supervisors to submit a list of delinquent garbage fee accounts to the Tax
Collector so the arrearage can be collected. The board did not compile and submit the required
list of delinquencies.
Recommendation
The board should insure that the list of delinquencies is compiled and submitted to the Tax
Collector.
Board of Supervisors' Response
We will comply
Chancery Clerk.
5. Finding
As reported in the prior year audit report, Section 19-3-27, Miss. Code Ann. (1972), requires
the Clerk of the Board of Supervisors to keep and preserve a complete and correct record of all

board proceedings. We noted that the Board of Supervisors entered into an agreement with the
City of Bay St. Louis authorizing the city to collect garbage fees for the county. This contract
is not reflected in the minutes.
Recommendation
The Chancery Clerk should keep a complete and correct record of all board proceedings.
Chancery Clerk's Response
This agreement was signed by the board president on January 22, 1996, and placed in the
minutes during the January term and also placed in the minutes when the mayor of Bay St.
Louis signed it in March of 1996.