STATE OF MISSISSIPPI STEVEN A. PATTERSON State Auditor WILLIAM S. JONES, CPA Director, Department of Audit ED P. YARBOROUGH, CPA Director, Division of County Audits _part3 potx

JEFFERSON DAVIS COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
17
At June 30, 1995, assets held for participants employed by the county and reported in an Agency Fund totaled
$114,598. 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.
(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 39,277
Special Revenue Funds:
County library 1,361
Reappraisal maintenance 1,683
District 1 road 5,436
District 2 road 5,436
District 3 road 5,436
District 4 road 5,436
District 5 road 5,435
Solid waste 3,567
Total 33,790 0
Debt Service Fund:
Extended care facility I & S 605 0
Agency Funds:
Junior college maintenance 1,985
Junior college enlargement 594
Junior college construction 1,411

Rural fire protection 892
Total 4,882 0
Total Due from/to Other Funds $ 39,277 39,277
JEFFERSON DAVIS COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
18
(7) Fixed Assets.
Changes in General Fixed Assets:
Balance Balance
Oct. 1, 1994 Additions Deletions Sept. 30, 1995
Governmental Funds:
Land $ 234,427 234,427
Buildings 2,128,498 2,128,498
Construction in progress 47,368 718,326 765,694
Mobile equipment 2,179,142 164,645 30,928 2,312,859
Other furniture and equipment 295,634 74,113 10,215 359,532
Total $ 4,885,069 957,084 41,143 5,801,010
(8) Claims and Judgments.
Risk Financing.
The county is exposed to risk of loss related to workers' compensation for injuries to its employees. On
October 1, 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.
(9) Long-term Debt.
The following individual liabilities are reported on the combined balance sheet at September 30, 1995:
Final
Amount Interest Maturity
Description and Purpose Outstanding Rates Date
General Long-term Debt Account Group:
General Obligation Bonds:
Extended care facility $ 20,000 5.5 to 6.1 6-96
JEFFERSON DAVIS COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
19
Annual requirements to amortize outstanding long-term debt reported in the General Long-term Debt Account
Group are as follows:
Year Ending September 30 Bonds
1996 $ 21,220
Total 21,220
Less: Amounts representing interest 1,220
Total at Present Value $ 20,000
Legal Debt Margin - The amount of general obligation bonded debt that can be incurred by the county is limited by
state statute. Total outstanding general obligation bonded debt during a year can be no greater than 15% of
assessed value of the taxable property within the county, according to the then last completed assessment for
taxation. However, the limitation is increased to 20% whenever a county issues bonds to repair or replace washed
out or collapsed bridges on the public roads of the county. As of September 30, 1995, the amount of outstanding
general obligation bonded debt was equal to .04% of the latest property assessments.
The following changes occurred in liabilities reported at year end:
Balance Balance

Styling Oct. 1, 1994 Additions Reductions Sept. 30, 1995
General obligation bonds $ 40,000 0 20,000 20,000
(10) Contingencies.
Federal Grants - The county has received federal grants for specific purposes that are subject to audit by the grantor
agencies. Entitlements to these resources are generally conditional upon compliance with the terms and conditions
of grant agreements and applicable federal regulations, including the expenditure of resources for allowable
purposes. Any disallowance resulting from a grantor audit may become a liability of the county.
Urban Renewal Revenue Notes - Jefferson Davis County issued 5 million dollars in urban renewal revenue notes on
December 30, 1992. The notes are disclosed in Note 11 as "No Commitment Debt" obligations and are designed as
"qualified tax exempt" obligations under Section 265 of the Internal Revenue Code of 1986, as amended. The
county may become contingently liable to the note holders if the tax exempt status of the notes is forfeited because
the project purpose for which the notes were issued can not be implemented. The nature and amount of the
contingency can not be determined at this time.
Litigation - The county is party to legal proceedings, many of which occur in the normal course of governmental
operations. It is not possible at the present time to estimate ultimate outcome or liability, if any, of the county with
respect to the various proceedings. However, the county's legal counsel believes that ultimate liability resulting
from these lawsuits will not have a material adverse effect on the financial condition of the county.
JEFFERSON DAVIS COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
20
General Obligation Debt Contingencies - The county is contingently liable for certain obligations which are repaid
by governmental entities. The principal amount of such debt outstanding at year end consists of the following:
Balance
Styling September 30, 1995
General obligation hospital notes $ 62,224
(11) No Commitment Debt (Not Included in Financial Statements).
No commitment debt is repaid only by the entities for whom the debt was issued and includes debt that either bears
the county's name or for which a moral responsibility may exist that is not an enforceable promise to pay. No
commitment debt explicitly states the absence of obligation by the county other than possibly an agreement to assist

creditors in exercising their rights in the event of default. Because a default may adversely affect the county's own
ability to borrow, the principal amount of such debt outstanding at year end is disclosed as follows:
Balance
Styling September 30, 1995
Jefferson Davis County urban renewal revenue notes $ 5,000,000*
* The county issued urban renewal revenue notes, dated December 30, 1992, for 5 million dollars plus a
premium of $50,000 at the rate of 4.375% interest pursuant to Sections 43-35-1 to 43-35-37, Miss. Code
Ann. (1972), to provide funds to pay the costs of road and bridge construction, reconstruction, repair and
improvement and construction of a multi-purpose county building (collectively, the "Project"). The notes
will mature on December 30, 1995, with semiannual interest payments beginning on June 30, 1993. The
net proceeds (gross less cost of issuance and premium received by the county) were invested on December
30, 1992, in certificates of deposit ("CDs") at an out-of-state bank at 4.375% interest and will also mature
on December 30, 1995, three years later. The CDs and interest earnings thereon stand as sole security for
payment of principal and interest on the notes and the investment principal and interest earnings are
deemed adequate to pay all note principal and interest expense throughout the entire three year period.
The county may exercise an option to pay off all or part of the notes at certain semiannual interest
payment dates during the three year period by issuing general obligation notes which would be retired by
the avails of a debt service levy. See Note 10 for further disclosure concerning the county's potential
contingent liability.
(12) Related Organizations.
The county Board of Supervisors is responsible for appointing a voting majority of the members of the board of the
Prentiss/Jefferson Davis County Airport, but the county's accountability for this organization does not extend
beyond making the appointments. During the year, the county appropriated $5,000 to this organization.
JEFFERSON DAVIS COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
21
(13) Joint Ventures.
The county participates in the following joint venture:
Jefferson Davis County is a participant with Marion County in a joint venture, authorized by Section 39-3-9, Miss.

Code Ann. (1972), to operate the South Mississippi Regional Library. The joint venture was created to provide
library service for Marion and Jefferson Davis Counties and is governed by a five member board. The two counties
rotate board appointments so that each county has a majority of board members in alternate years. Complete
financial statements for the South Mississippi Regional Library can be obtained from the Marion County branch of
the library in Columbia, Mississippi.
(14) Jointly Governed Organizations.
The county participates in the following jointly governed organizations:
Pearl River Valley Opportunity, Inc. operates in a district composed of Covington, Forrest, Jefferson Davis, Jones,
Lamar, Marion, Pearl River and Perry Counties. Each county Board of Supervisors appoints one of the 24 board
members and two board members are appointed from the private sector in each county. Each county provides a
modest amount of financial support when matching funds are required for federal grants.
The Southeast Mississippi Air Ambulance District operates in a district composed of Forrest, Lamar, Covington,
Jefferson Davis, Marion, Pearl River, Perry and Greene Counties. Each of the counties appoints one member of the
board of directors and the Governor appoints one member. The county provides no financial support for the
district.
Pearl River Community College operates in a district composed of the Counties of Hancock, Pearl River, Lamar,
Marion, Jefferson Davis and Forrest. Jefferson Davis County appoints two of the 16 members. The county
appropriated approximately $177,650 for maintenance and support of the college in fiscal year 1995.
Southern Mississippi Planning and Development District operates in a district composed of the following counties:
Jefferson Davis, Covington, Jones, Wayne, Marion, Lamar, Forrest, Perry, Greene, Pearl River, Stone, George,
Hancock, Harrison and Jackson. The governing body is a 27 member board of directors, one appointed by the
Board of Supervisors of each member county, one from each of six participating cities, and six are appointed at
large by minority members. The counties contribute only a small part of the entity's total revenues.
Pine Belt Mental Health Care Resources operates in a district composed of the Counties of Forrest, Lamar, Jones,
Perry, Wayne, Greene, Covington, Jefferson Davis and Marion. The board is comprised of one appointee from
each county Board of Supervisors and there is minimal financial responsibility.
(15) Defined Benefit Pension Plan.
Plan Description. Jefferson Davis County, Mississippi, contributes to the Public Employees' Retirement System of
Mississippi (PERS), a cost-sharing, multiple-employer, defined benefit pension plan. PERS provides retirement
and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries.

Benefit provisions are established by state law and may be amended only by the State of Mississippi Legislature.
PERS issues a publicly available financial report that includes financial statements and required supplementary
information. That information may be obtained by writing to Public Employees Retirement System, PERS
Building, 429 Mississippi Street, Jackson, MS 39201-1005 or by calling
1-800-444-PERS.
JEFFERSON DAVIS COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
22
Funding Policy. PERS members are required to contribute 7.25% of their annual covered salary and the county is
required to contribute at an actuarially determined rate. The current rate is 9.75% of annual covered payroll. The
contribution requirements of PERS members are established and may be amended only by the State of Mississippi
Legislature. The county's contributions to PERS for the years ending September 30, 1995, 1994 and 1993 were
$106,832, $104,228 and $99,504, respectively, equal to the required contributions for each year.
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JEFFERSON DAVIS COUNTY
SUPPLEMENTAL INFORMATION
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JEFFERSON DAVIS COUNTY
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JEFFERSON DAVIS COUNTY Schedule 1
Schedule of Federal Financial Assistance
For the Year Ended September 30, 1995
Catalog of
Federal
Federal Grantor/ Domestic Program
Pass-through Grantor/ Assistance Pass-through or Award Federal Federal
Program Title Number Grantor's Number Amount Revenue Expenditures
U. S. Department of

Housing and Urban
Development/Passed-through
the Department of Economic and
Community Development -
State of Mississippi
Community development block grant 14.219 2-1139-395-PF-1 $ 500,000 $ 452,632 452,632
Community development block grant 14.219 3-395-PF-94 73,735 71,670 71,670
Community development block grant 14.219 4-395-EM-01 155,458 18,527 18,527
Total U. S. Department of
Economic and Community Development 542,829 542,829
U. S. Department of
Transportation -
Federal Highway
Administration/Passed-through the
Mississippi Department of Transportation
Bridge inspection program 20.205 N/A 2,240 2,240 2,240
Total Federal Financial Assistance $ 545,069 545,069
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JEFFERSON DAVIS COUNTY Schedule 2
Reconciliation of Operating Costs of Solid Waste
For the Year Ended September 30, 1995
Operating Expenditures, Cash Basis:
Salaries $ 98,390
Expendable commodities:
Gasoline and petroleum products 7,871
Maintenance 4,658
Contractual services 64,114
Solid Waste Cash Basis Operating Expenditures: 175,033
Full Cost Expenses:
Indirect administrative costs 1,994

Depreciation on equipment 30,662
Other accrued expenses 5,290
Solid Waste Full Cost Operating Expenses $ 212,979