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 docx

JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
19
Investments:
At year end, the carrying amount of the county's investments was $3,013,797. The county's investments at year
end consisted entirely of U. S. Treasury Bills. The investments are registered and are held by the county's
agent in the county's name.
(6) 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
$469,520. 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.
(7) 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 $ 257,079 239,285
Special Revenue Funds:

Reappraisal maintenance 4,209
Library 3,369
Garbage and solid waste 34,701 250,000
Volunteer fire 2,874
District 1 road maintenance 18,418
District 2 road maintenance 32,643
District 3 road maintenance 20,769
District 4 road maintenance 44,294
District 5 road maintenance 14,883
District 1 bridge and culvert 2,712
District 2 bridge and culvert 4,260
District 3 bridge and culvert 4,649
District 4 bridge and culvert 5,229
District 5 bridge and culvert 2,519
Total 195,529 250,000
JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
20
Interfund Interfund
Receivables Payables
Debt Service Fund:
Countywide bond I & S 29,035 21,672
Capital Projects Fund:
Community center construction 3,000 0
Agency Funds:
Jones Junior College maintenance 11,576
Jones Junior College Support 11,576
Pat Harrison Waterway 6
Jones Junior College state 3,156

Total 26,314 0
Total Due from/to Other Funds $ 510,957 510,957
(8) Loans Receivable.
Loans receivable in the Special Revenue Fund Type on the combined balance sheet at September 30, 1995,
consists of the following:
Date of Interest Maturity Balance
Styling Loan Rate Date Payable
Debar Construction community development 5-1-95 5.25 7-1-2006 $ 75,000
block grant loan
(9) Fixed Assets.
Changes in General Fixed Assets:
Balance Balance
Oct. 1, 1994 Additions Deletions Sept. 30, 1995
Governmental Funds:
Land $ 514,967 500 87,570 427,897
Buildings 4,360,022 3,334,326 45,089 7,649,259
Construction in progress 1,640,091 1,820,511 3,334,326 126,276
Mobile equipment 2,643,941 370,726 156,909 2,857,758
Other furniture and equipment 765,196 2,559 59,344 708,411
Leased property under capital leases 3,456,823 128,418 9,360 3,575,881
Total $ 13,381,040 5,657,040 3,692,598 15,345,482
JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
21
(10) Claims and Judgments.
Risk Financing.
The county is exposed to risk of loss related to workers' compensation for injuries to its employees. On
January 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.
The county is exposed to risk of loss relating to employee health coverage. On September 1, 1987, the county
joined the Mississippi Association of Supervisors Employee Benefit Trust, a public entity risk pool, to account
for and finance its uninsured risk of loss. The pool was formed by the Mississippi Association of Supervisors,
Inc., pursuant to Section 25-15-101, Miss. Code Ann. (1972), to provide health insurance for the benefit of
participating counties in the State of Mississippi. Premium payments to the pool are determined on an actuarial
basis. The pool services all claims for risk of loss to which the county is exposed. The county purchases
commercial insurance to cover all claims in excess of premium contributions. Claims expenses and liabilities
are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably
estimated. Liabilities include an amount for claims that have been incurred but not reported. At September 30,
1995, the amount of these liabilities was $87,669. Changes in the reported liability since the fiscal year ended
September 30, 1994, resulted from the following:
Current Year
Beginning of Claims and Balance at
Fiscal Year Changes in Claim Fiscal
Liability Estimates Payments Year End
$ 102,424 $ 593,521 $ 608,276 $ 87,669
JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995

22
(11) Lease Obligations.
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
Land and buildings $ 2,563,695
Mobile equipment 556,085
Other furniture and equipment 456,101
Leased Property Under Capital Leases $ 3,575,881
The following is a schedule by years of future minimum lease payments payable under capital leases together
with the present value of the net minimum lease payables as of September 30, 1995:
General
Long-term
Debt Group
Year Ending September 30:
1996 $ 520,477
1997 485,633
1998 419,229
1999 326,285
2000 294,000
Later years 1,764,000
Total Minimum Lease Payments 3,809,624
Less: Amount representing interest 1,141,786
Present Value of Net Minimum Lease Payments $ 2,667,838
JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995

23
(12) 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:
A. General Obligation Bonds:
Road and bridge $ 80,000 5.9/6 3-96
Road and bridge 1,320,000 6.4/9 7-98
Jail 2,730,000 4.3/5.25 6-08
Mississippi Business Investment Act -
Howard Industries 570,000 4-14
Road and bridge 3,540,000 5/6.25 9-09
Total $ 8,240,000
B. Capital Leases:
Gibson Building $ 2,146,215 8 9-06
IBM AS/400 computer & software for state tag
collection interface - Tax Collector 28,186 7.65 6-96
Pitney Bowes mail machine 1,189 6.45 1-96
IBM AS/400 computer system 142,702 4.75 2-98
12 - '94 Ford cars - Sheriff's Department 75,738 4.05 2-98
1987 Caterpillar rubber tired escavator 38,930 4.75 4-99
3 - Panasonic copiers - Sheriff's Department 3,052 7 5-97
1994 Ford F150 truck 5,403 5.75 4-97
Durapatcher & storage tank 28,611 5.75 6-98
3 -International 4700 dump trucks 40,012 5.25 8-97
Fiat FG85 Allis Chalmers motor grader 55,989 5.60 9-98
Panasonic copier 5,808 7.5 1-97
Copier and typewriter 4,785 7.5 9-98

Komatsu wheel loader 56,026 5.41 7-99
Dual tandem trailer 3,033 6.25 12-96
Gallion steel wheel roller 9,159 5.38 9-98
Used motor grader and Dodge truck 23,000 5.49 10-98
Total $ 2,667,838
C. Other Loans:
State grant - water pollution $ 353 9-98
Mississippi Economic and Community
Development loan -
Superior Manufacturing 114,096 3 9-04
Citizens National Bank -
Community Center construction 150,000 5.106 10-99
Mississippi Economic and
Community Development CDBG loan -
Debar Construction 75,000 5.5 7-06

Total $ 339,449
JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
24
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 Leases Loans Total
1996 $ 1,424,105 520,477 45,871 1,990,453
1997 1,366,780 485,633 57,507 1,909,920
1998 1,387,610 419,229 57,160 1,863,999
1999 884,115 326,285 56,803 1,267,203
2000 893,065 294,000 61,434 1,248,499
Later years 8,707,250 1,764,000 118,924 10,590,174

Total 14,662,925 3,809,624 397,699 18,870,248
Less: Amounts representing interest 6,422,925 1,141,786 58,250 7,622,961
Total at Present Value $ 8,240,000 2,667,838 339,449 11,247,287
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 4.6% 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 Long-term Debt Account Group:
Claims and judgments $ 102,424 593,521 608,276 87,669
General obligation bonds 5,340,000 3,700,000 800,000 8,240,000
Capital leases 2,846,504 128,418 307,084 2,667,838
Other loans 125,823 225,000 11,374 339,449
Total $ 8,414,751 4,646,939 1,726,734 11,334,956
(13) 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.
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.
JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995

25
General Obligation Debt Contingencies - The county issued general obligation bonds for the purpose of
providing funds for investment in facilities to be lease purchased by outside enterprise. The county maintains
title to the property until all debt requirements have been satisfied. The industry, as lessee, is required to make
lease payments to the county in an amount equal to the debt service requirements as they become due. Further,
because no income or increase in net worth accrues to the county, the capital lease is not recorded. Instead,
disclosure is made herewith concerning the county's contingent liability for bonds that the industry repays
through lease payments to the county. The principal amount of such debt outstanding at year end consists of the
following:
Balance
Styling September 30, 1995

General obligation enterprise bonds $ 7,490,000
(14) 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
Industrial revenue bonds and notes $ 80,815,183
Hospital revenue bonds and notes 18,115,000
Total $ 98,930,183
(15) Joint Ventures.
The county participates in the following joint ventures:
Jones County is a participant with the Cities of Laurel, Ellisville and Sandersville in a joint venture,
authorized by Section 39-3-9, Miss. Code Ann. (1972), to operate the Laurel-Jones County Library.
The joint venture was created to provide free public library service to all the people of Jones County

and is governed by a four member board, one each appointed by the four member governments. By
contractual agreement, the county's appropriation to the joint venture amounted to $156,200.
Complete financial statements for the Laurel-Jones County Library can be obtained from Laurel-Jones
County Library,
530 Commerce Street, Laurel, MS 39440.
Jones County is a participant with Forrest County, City of Hattiesburg and City of Laurel in a joint venture,
authorized by Section 61-3-5, Miss. Code Ann. (1972), to operate Hattiesburg/Laurel Regional Airport
Authority. The joint venture was created to operate a regional airport and is governed by a five member board,
one each appointed by the four member governments and one by the Governor of the State of Mississippi. By
contractual agreement, the county's appropriation from the General Fund to the joint venture amounted to
JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
26
$129,000. Complete financial statements for the Hattiesburg/Laurel Regional Airport Authority can be obtained
from Hattiesburg/Laurel Regional Airport Authority, 1002 Terminal, Moselle, MS 39459.
Jones County is a participant with Cities of Laurel, Ellisville, Soso and Sandersville in a joint venture,
authorized by Section 19-9-11, Miss. Code Ann. (1972), to operate the Jones County Economic Development
Authority. The joint venture was created to foster, encourage and facilitate economic development in the
county and is governed by a board of trustees composed by 22 members appointed as follows: Jones County
Board of Supervisors, six; City of Laurel, three; City of Ellisville, three; City of Sandersville, one; advisory
group, nine. By contractual agreement, the county's appropriation from the General Fund to the joint venture
amounted to $138,400. Complete financial statements for the Jones County Economic Development Authority
can be obtained from the Jones County Economic Development Authority, P.O. Box 527, Laurel, MS 39441-
0527.
(16) Jointly Governed Organizations.
The county participates in the following jointly governed organizations:
Southern Mississippi Planning and Development District operates in a district composed of the Counties of
Jones, Jefferson Davis, Covington, Wayne, Marion, Lamar, Forrest, Perry, Greene, Pearl River, Stone,
George, Hancock, Harrison and Jackson. The Jones County Board of Supervisors appoints one of the 27

members of the district board of directors. The county appropriated approximately $64,500 for support of the
District in fiscal year 1995.
Pine Belt Mental Health Care Resources operates in a district composed of the Counties of Jones, Forrest,
Lamar, Perry, Wayne, Greene, Covington, Jefferson Davis and Marion. The Jones County Board of
Supervisors appoints one of the nine members of the organization's board of commissioners. The county
appropriated approximately $125,000 for support of the organization in fiscal year 1995.
Jones County Junior College operates in a district composed of the Counties of Jones, Clark, Covington,
Greene, Jasper, Perry, Smith and Wayne. The Jones County Board of Supervisors appoints two of the 20
members of the college board of trustees. The county appropriated approximately $1,267,500 for maintenance
and support of the college in fiscal year 1995.
Pearl River Valley Opportunity, Inc. operates in a district composed of the Counties of Jones, Covington,
Forrest, Jefferson Davis, Lamar, Marion, Pearl River and Perry. The Jones County Board of Supervisors
appoints one of the 24 board members. The county appropriated approximately $5,960 for support of the
organization in fiscal year 1994.
Mississippi Regional Housing Authority IV operates in a district composed of the Counties of Jones, Harrison,
Hancock, Jackson, Pearl River, Stone, George, Greene, Perry, Forrest, Lamar, Marion, Covington and Wayne.
The Jones County Board of Supervisors appoints one of the 15 board members. The county did not provide any
financial support to the organization in fiscal year 1995.
(17) Defined Benefit Pension Plan.
Plan Description. Jones 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.
JONES COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
27
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.

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 total contributions (both employer and employee shares) to PERS for the
years ending September 30, 1995, 1994 and 1993 were $676,882, $602,392 and $601,653, respectively, equal
to the required contributions for each year.
(18) Subsequent Events.
Subsequent to September 30, 1995, Jones County issued the following debt obligations:
Issue Interest Issue Type of Source of
Date Rate Amount Financing Financing
1-16-96 6.5 $ 5,121 Lease purchase Ad valorem tax
3-18-96 5.34 15,053 Lease purchase Ad valorem tax
4-1-96 4.98 32,000 Lease purchase Ad valorem tax
5-22-96 5.31 80,200 Lease purchase Ad valorem tax
6-1-96 5.43 26,631 Lease purchase Ad valorem tax
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JONES COUNTY
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JONES COUNTY
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