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_part2 doc

YAZOO 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

3,146,568

1,230,189

1,151,555

206,713
178,034

$

Special
Revenue

219,465
420

Expenditures
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

2,879
100
1,210,647

62,301

62,301

157,783
111,785
5,458,590

0

206,073
2,412,073
189,189
286,362
137,045
9,363,686

1,402,875

2,287,687
1,100,615
5,786,701
213,301
189,320
122,947
38,460
1,402,875

2,578

68,072
148,751

4,225,118

Other Financing Sources (Uses)
Proceeds of other debt
Proceeds of limited obligation bonds
Proceeds from sale of assets
Operating transfers in
Operating transfers out
Total Other Financing
Sources (Uses)

1,291,111
49,785
7,069,054

370,000
865,545
1,235,545

130,771
1,533,646

2,578

1,729,183
1,194,852
14,065,941

354,223

Excess of Revenues over
(under) Expenditures

(3,557,657)

(24,898)

(1,471,345)

(2,578)

(4,702,255)

2,397,390
729,093

2,397,390
3,915,000
1,448,654
30,738
(30,738)

3,185,907
1,448,654

29,912

826
(30,738)

759,005

(29,912)

3,185,907

0

7,761,044

288,387

(54,810)

1,714,562

(2,578)

3,058,789

(530,615)

Fund Balances
Beginning of year

3,846,044

1,113,228

Excess of Revenues and Other

Sources over (under)
Expenditures and Other Uses

1,457,322

494,848

0

16,428

1,437,983

Residual equity transfers
End of year

5,528,312

56,113

113,992
5,954
3,511,397

2,129,904
988,830
325,533
213,301
189,320
122,947

38,460

Totals
Memorandum
Only
Primary
Government

426,178
178,454

206,073
1,735,304

620,656
189,189
107,190
130,991
4,579,341

Capital
Projects

Fiduciary
Fund Type
Expendable
Trust

17,637
$

582,613

1,745,709

The notes to the financial statements are an integral part of this statement.

8

457,675

17,637
1,714,562

13,850

4,514,409


YAZOO COUNTY

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9


YAZOO 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
Charges for services
Use of money and property
Miscellaneous revenues
Total Revenues

End of year

10,030

220,148
420

220,148
420

933,323

189,189
55,324
62,600
4,760,473

(8,488)
26,192
1,611
(2,449)
16,867

6,656
1,485,738

191,668
1,693,609

185,012
207,871

114,390
206,831
3,313,015

114,052
5,954
3,504,683

(338)
(200,877)

191,668

2,545,908
1,045,703
322,100
212,534
199,245
15,256
123,122
38,160

159,782
118,724
4,217,437

159,782
118,724
3,076,084

1,141,353

139,449

1,333,021

(1,333,021)

4,641,477

(15,256)

4,495,943

4,687,611

(191,668)

117,385

118,996

1,611

(1,182,928)

(1,182,928)

0

759,930

759,006

(924)

1,448,653

1,448,653

0

877,315

878,002

687

265,725

265,725

0

(301,508)
$

206,749
178,034

4,626,221

Fund Balances
Beginning of year

1,278,832

139,449

Excess of Revenues and Other
Sources over (under) Expenditures

and Other Uses

1,278,832

123,122
38,160

Other Financing Sources (Uses)

(10,029)

2,545,908
1,045,703
322,100
212,534
199,245

Excess of Revenues over (under)
Expenditures

3,135,254

941,811
162,997
53,713
65,049
4,743,606

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

3,145,283
196,719
178,034

$

Actual

Variance
Favorable
(Unfavorable)

(301,508)

1,599,056

1,535,642

575,807

576,494

1,864,781

1,801,367

The notes to the financial statements are an integral part of this statement.

10

Budget

Actual

Variance
Favorable
(Unfavorable)

(15,256)


Exhibit C

Debt
Service Funds

Capital
Projects Funds

Budget

Actual

Variance
Favorable
(Unfavorable)

42,194

54,013

11,819

42,194

54,013

11,819

1,402,875
130,771

1,402,875
130,771

0

1,533,646

1,533,646

0

(21,157)

0

(1,491,452)

(1,479,633)

11,819

(12,273)

(29,912)

(17,639)

3,197,726

3,185,907

(11,819)

(33,430)

(51,069)

(17,639)

1,706,274

1,706,274

0

471,047

471,050

0

0

437,617

419,981

1,706,274

1,706,274

Budget

Actual

1,154,592

1,154,592

56,817

56,817

2,879
100
1,214,388

2,879
100
1,214,388

1,235,545

1,235,545

1,235,545

1,235,545

(21,157)

Variance
Favorable
(Unfavorable)

0

11


YAZOO COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
(1)

Significant Accounting Policies.
A.

Financial Reporting Entity.
Yazoo 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 Yazoo
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
the county's component unit necessary for reporting in conformity with generally accepted accounting
principles.
•

Yazoo County Port Commission

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
general purpose financial statements.
•
•

•
•
•
•
•
B.

Board of Supervisors
Chancery Clerk
Circuit Clerk
Justice Court Clerk
Purchase Clerk
Tax Assessor-Collector
Sheriff

Blended Component Unit.
The Yazoo County Civic Improvement Corporation was incorporated as a nonprofit under
Section 31-8-3, Miss. Code Ann. (1972), which allows counties to enter into lease agreements with
any corporation. The Corporation's board of directors consists of the Yazoo County Board of
Supervisors. Although legally separate from the primary government, the Corporation is so
intertwined with the primary government that it is, in substance, the same as the primary government.
Therefore, the Corporation's balances and transactions are blended with the balances and transactions
of the primary government. The Corporation produces a financial benefit through its ability to finance
the construction of capital facilities for the primary government and imposes a financial burden on the
primary government by obligating funds to pay the debt pursuant to a lease agreement. See Note 11 for
further disclosure concerning the issuance of certificates of participation (COPs) and related capital
facilities construction.

C.

Basis of Presentation.
Except for the effects on the general purpose financial statements for omission of the component unit
described in Note 1(A), the accompanying general purpose financial statements have been prepared in
conformity with generally accepted accounting principles as prescribed by the Governmental
Accounting Standards Board.

12


YAZOO COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
D.

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.

E.

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
(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.

13


YAZOO COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
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.
F.

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 1M for further explanation.

•

Principal and interest on general long-term debt are recognized when due.

•
G.

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.

14


YAZOO COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
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.

H.

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.

I.

Receivables.
Receivables are reported net of allowances for uncollectible accounts, where applicable.

J.

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.

K.

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.

15


YAZOO COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
L.

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.
Reserved for Cash on Deposit in Risk Pool - An account used to segregate a portion of fund
balance for risk financing activities.

M.

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.
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.

N.

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.

16


YAZOO COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1995
O.

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 and Expendable Trust Funds).

P.

Compensated Absences.
The county has adopted a policy of compensation for accumulated unpaid employee personal leave. No
payment is authorized for accrued major medical leave. Generally accepted accounting principles
require accrual of accumulated unpaid employee benefits in Governmental Funds to the extent that they

are to be paid with current assets and the remainder of the liability to be reported in the General Longterm Debt Account Group, representing the county's commitment to fund such costs from future
operations. Due to immateriality, the current portion of the liability was not estimated and reported in
the Governmental Funds. Therefore, the county's full liability in the amount of $71,753 for
accumulated unpaid personal leave up to a maximum of 45 days per employee is reported in the
General Long-term Debt Account Group of the accompanying combined balance sheet.

Q.

Total Column on General Purpose Financial Statements.
The total column on the general purpose 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.

(2)

Stewardship, Compliance and Accountability.
A.

Legal Compliance - Financial Matters.
State law requires the county to have its uninsured deposits fully collateralized (105%) by securities
based upon market value, and the securities are to be held in the name of the county. During the
audited fiscal year, a significant amount of the county's uninsured deposits were uncollateralized.

17


YAZOO COUNTY
Notes to Financial Statements

For the Year Ended September 30, 1995
B.

Individual Fund Deficits.
The following Special Revenue Fund had a deficit fund balance at September 30, 1995:
Deficit
Amount

Styling
Countywide road
C.

$337,911

Excess of Actual Expenditures Over Budget in Individual Funds.
The following funds had an excess of actual expenditures over budget for the year ended
September 30, 1995:
Fund

Excess

General
Special Revenue:
Community development block grant
(3)

$

15,256
191,668

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)

Special
Revenue

Debt
Service

Capital
Projects

878,002

265,725

(51,069)

1,706,274

141,922
93,304

1,174
21,488

(3,741)

8,288

1,113,228

288,387

(54,810)

1,714,562

$

Increase (Decrease)
Net adjustment for revenue accruals
Net adjustment for expenditure accruals
GAAP Basis

$

18