FORREST COUNTY AGRICULTURAL HIGH SCHOOL TABLE OF CONTENTS FINANCIAL AUDIT _part2 potx

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Fund Equity:
Investment in gen. fixed assets 933,442 933,442
Fund balances
Reserved for:
Unemployment benefits 7,250 7,250
Scholarships 29,921 29,921
Capital improvements 42,090 42,090
Inventory 17,550 2,097 19,647
Unreserved:
Undesignated 376,699 101,676 478,375
Total Fund Equity 394,249 103,773 42,090 37,171 933,442 1,510,725
Total Liab. & Fund Equity $ 406,165 132,167 185,967 176,070 933,442 16,090 1,849,901
The notes to the financial statements are an integral part of this statement.
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FORREST COUNTY AGRICULTURAL HIGH SCHOOL Exhibit B
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -
All Governmental Fund Types and Expendable Trust Funds
For the Year Ended June 30, 1995
Fiduciary
Governmental Fund Types Fund Type Total
Special Capital Expendable (Memorandum
General Revenue Projects Trust Only)
Revenues
Local sources $ 822,206 44,247 356,283 5,877 1,228,613
State sources 899,806 260,501 31,199 1,191,506
Federal sources 137,802 137,802
Total Revenues 1,722,012 442,550 387,482 5,877 2,557,921
Expenditures

Instruction 966,553 250,083 1,500 1,218,136
Support services:
Students 53,084 35,831 88,915
Instructional staff 47,454 13,028 60,482
General administration 126,828 8,225 135,053
School administration 79,163 79,163
Business 37,243 1,000 38,243
Oper. & maintenance of plant 227,908 553 86,356 397 315,214
Central 907 907
Noninstructional services 17,727 99,670 117,397
Facilities acquisition & construction 313,193 313,193
Total Expenditures 1,555,960 408,297 400,549 1,897 2,366,703
Excess of Revenues Over
(Under) Expenditures 166,052 34,253 (13,067) 3,980 191,218
Other Financing Sources (Uses)
Operating transfers in 4,350 55,176 55,157 114,683
Operating transfers out (110,333) (4,350) (114,683)
Total Other Financing
Sources (Uses) (105,983) 50,826 55,157 0
Excess of Revenues and Other
Sources Over Expenditures
and Other Uses 60,069 85,079 42,090 3,980 191,218
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Fund Balances
July 1, 1994 335,595 18,995 33,191 387,781
Prior period adjustment:
Reclassify fund equity 1,435 1,435
July 1, 1994, as restated 337,030 18,995 33,191 389,216

(Decrease) in reserve
for inventory (2,850) (301) (3,151)
June 30, 1995 $ 394,249 103,773 42,090 37,171 577,283
The notes to the financial statements are an integral part of this statement.
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FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual
All Governmental Fund Types
For the Year Ended June 30, 1995
General Fund Special Revenue Funds
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Local sources $ 821,525 822,206 681 44,100 44,247 147
State sources 899,806 899,806 260,500 260,501 1
Federal sources 140,064 137,802 (2,262)
Total Revenues 1,721,331 1,722,012 681 444,664 442,550 (2,114)
Expenditures
Instruction 1,016,931 966,553 50,378 306,386 250,083 56,303
Support services:
Students 61,687 53,084 8,603 35,831 35,831
Instructional staff 51,221 47,454 3,767 14,887 13,028 1,859
General administration 137,226 126,828 10,398 8,227 8,225 2
School administration 79,458 79,163 295
Business 37,560 37,243 317
Operation and maintenance

of plant 257,252 227,908 29,344 553 553
Central 907 907
Noninstructional services 18,700 17,727 973 100,288 99,670 618
Facilities acquisition and
construction 26,712 26,712
Total Expenditures 1,686,747 1,555,960 130,787 467,079 408,297 58,782
Excess of Revenues Over
(Under) Expenditures 166,052 34,253
Other Financing Sources 17,903 4,350 (13,553) 55,176 55,176
Other Financing Uses (138,961) (110,333) 28,628 (4,500) (4,350) 150
Total Other Financing
Sources (Uses) (121,058) (105,983) 15,075 50,676 50,826 150
Excess of Revenues and
Other Sources Over
Expenditures and
Other Uses 60,069 85,079
Fund Balances
July 1, 1994 335,595 18,995
Prior period adjustment:
Reclassify fund equity 1,435
July 1, 1994, as restated 337,030 18,995
(Decrease) in
reserve for inventory (2,850) (301)
June 30, 1995 $ 394,249 103,773
The notes to the financial statements are an integral part of this statement.
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Exhibit C
Capital Projects Funds
Variance
Favorable

Budget Actual (Unfavorable)
4,100 356,283 352,183
31,199 31,199
35,299 387,482 352,183
1,000 (1,000)
86,356 (86,356)
442,585 313,193 129,392
442,585 400,549 42,036
(13,067)
407,287 55,157 (352,130)
407,287 55,157 (352,130)
42,090
0
0
42,090
FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Notes to Financial Statements
For the Year Ended June 30, 1995
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(1) Summary of Significant Accounting Policies.
A. Financial Reporting Entity.
For financial reporting purposes, the reporting entity includes all funds that are covered by the
oversight responsibility of the school's governing board. As defined by generally accepted
accounting principles, the school is considered a component unit of Forrest County since the
governing authorities of the county are solely responsible for issuing school debt.
B. Financial Reporting.
The accompanying financial statements are presented using the concepts of reporting
promulgated in Statement 1 of the Governmental Accounting Standards Board. The general
purpose financial statements show the basic financial statements of the school by providing a
combined overview of financial position and results of operations of the school. The total

(memorandum only) columns in these statements are presented for overview information
purposes and are not meant to present fairly the financial position and results of operations or
consolidated financial information for the school as a whole in conformity with generally
accepted accounting principles.
C. Account Classifications.
The account classifications used in the financial statements conform to the classifications
prescribed in the "Financial Accounting Manual for Mississippi Public School Districts" issued
by the Office of the State Auditor. The classifications in that manual are consistent with the
broad classifications recommended in "Financial Accounting for Local and State School
Systems, 1990" issued by the U.S. Department of Education.
D. Fund Accounting.
The accounts of the school are organized on the basis of funds and account groups, each of
which is considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund
equity, revenues and expenditures. School resources are allocated to and accounted for in
individual funds based upon the purposes for which they are to be spent and the means by
which spending activities are controlled. The various funds are grouped into generic fund
types and broad fund categories as follows:
GOVERNMENTAL FUNDS
General Fund - The General Fund is the general operating fund of the school. It is used to
account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of
specific revenue sources (other than expendable trusts or major capital projects) that are legally
restricted for specific expenditure purposes.
Capital Projects Funds - Capital Projects Funds are used to account for financial resources to
be used for the acquisition or construction of major capital facilities.
FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Notes to Financial Statements
For the Year Ended June 30, 1995
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FIDUCIARY FUNDS
Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the
school in a trustee capacity or as an agent for individuals, private organizations and/or other
funds. These include Expendable Trust and Agency Funds. Expendable Trust Funds are
accounted for in essentially the same manner as governmental funds. Agency Funds are
custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
E. Fixed Assets and Long-term Liabilities.
The costs incurred for the purchase or construction of general fixed assets are recorded as
capital outlay expenditures in the governmental funds. The fixed assets are accounted for in
the General Fixed Assets Account Group rather than in the governmental funds. Fixed assets
are valued at cost. Donated fixed assets are valued at the fair market value or estimates of the
fair market value on the date of donation. Infrastructure fixed assets, such as roads, curbs and
gutters, streets and sidewalks, drainage systems, lighting systems, and similar assets are not
capitalized, as these assets are immovable and of value only to the school. No depreciation has
been provided on the general fixed assets.
The long-term liabilities incurred by the school which are to be financed from the
governmental funds are accounted for in the General Long-term Debt Account Group, not in
the governmental funds.
The account groups are not funds. The concern is only with the measurement of financial
position and not the measurement of results of operations.
F. Basis of Accounting.
Basis of accounting refers to when revenues and expenditures are recognized in the accounts
and reported in the financial statements. Basis of accounting relates to the timing of the
measurements made, regardless of the measurement focus applied.
The modified accrual basis of accounting is used in measuring financial position and operating
results:
Governmental fund revenues and expenditures are recognized on the modified accrual
basis. Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the accounting period in

which the fund liability is incurred, if measurable, except for interest on general
long-term debt, which is recognized when due.
Fiduciary fund revenues and expenditures are recognized on the basis consistent with
the fund's accounting measurement objective. Expendable Trust Funds are accounted
for on the modified accrual basis. Agency Fund assets and liabilities are accounted
for on the modified accrual basis.
Transfers are recognized in the accounting period in which the interfund receivable
and payable arise.
FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Notes to Financial Statements
For the Year Ended June 30, 1995
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G. Budgets.
The budget is adopted by the school board and filed with the taxing authority. Amendments
can be made on the approval of the school board. By statute, final budget revisions must be
approved on or before August 15 of the following fiscal year. For comparison purposes, only
budgeted governmental funds are included and are presented on the same basis of accounting
as the budget which is consistent with generally accepted accounting principles.
H. Encumbrances.
An encumbrance system is not maintained to account for commitments resulting from
approved purchase orders, work orders and contracts.
I. Cash and Other Deposits.
The school deposits excess funds in the financial institutions selected by the school board.
State statutes specify how these depositories are to be selected.
Cash consists of amounts on deposit in demand accounts. Other deposits consist of certificates
of deposit. Cash and other deposits are valued at cost.
Various restrictions on these deposits are imposed by state statutes. These restrictions are
summarized as follows:
All deposits with financial institutions must be collateralized in an amount at least
equal to 105% of the amount not insured by the Federal Deposit Insurance

Corporation (FDIC) or by the Federal Savings and Loan Insurance Corporation
(FSLIC), or any successors to such insurance corporations.
J. Investments.
The school is allowed, by statute, to invest excess funds in any bonds or other direct
obligations of the United States of America or the state of Mississippi, or of any county or
municipality of this state, when such county or municipal bonds have been properly approved;
or in interest-bearing time certificates of deposit or interest-bearing accounts with any financial
institution approved for the deposit of state funds; or in any type of investment permitted by
Sections 27-105-33(d) and 27-105-33(e), Miss. Code Ann. (1972).
For accounting purposes, certificates of deposit and interest-bearing accounts are classified as
cash and other deposits.
K. Inventories and Prepaid Items.
Inventories in the General and Special Revenue Funds consist of cattle, purchased inventories
of food and donated inventories of donated commodities. The cattle are valued at fair market
value. Donated commodities are received from the USDA and are valued at USDA cost.
Purchased inventories are valued at cost (calculated on the first-in, first-out basis).
The costs of governmental fund type inventories are reported as expenditures when purchased.
FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Notes to Financial Statements
For the Year Ended June 30, 1995
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Prepaid items, such as prepaid insurance, are not reported for governmental fund types since
the costs of such items are accounted for as expenditures in the period of acquisition.
L. Interfund Loans.
Short-term (due within one year) interfund loan receivables are reported as "due from other
funds" and are considered available expendable resources.
M. Fund Reserves.
Fund reserves are portions of fund equity that are legally segregated for a specific future use or
are not available for current operations. Following is a description of fund reserves used by
the school:

Reserved for unemployment benefits - An account that represents the fund balance of the
unemployment compensation revolving fund which is legally restricted for the payment of
unemployment benefits.
Reserved for scholarships - An account that represents the fund balance which is legally
restricted for scholarships.
Reserved for capital improvements - An account that represents the portion of the fund balance
that is legally restricted for capital improvements.
Reserved for inventory - An account that represents a portion of the fund balance which
indicates that inventories do not represent available spendable resources even though they are a
component of net current assets.
N. Property Taxes.
Ad valorem property taxes are levied by the governing authorities of the county on behalf of
the school based upon an order adopted by the school board of the school requesting an
ad valorem tax effort in dollars. Since the taxes are not levied and collected by the school, the
revenues to be generated by the annual levies are not recognized until the taxes are actually
collected by the tax levying authority.
O. Minimum Education Program Revenues.
Revenues from the state minimum education program are appropriated on a fiscal year basis
and are recorded at the time the revenues are received from the state of Mississippi.
FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Notes to Financial Statements
For the Year Ended June 30, 1995
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P. Compensated Absences.
Employees of the school accumulate sick leave at a minimum amount as required by state law
or at a greater amount provided by school policy. Some employees are allowed personal leave
and/or vacation leave. The school pays for unused leave for certificated employees as required
to do so by Section 37-7-307(5), Miss. Code Ann. (1972). Payment for unused leave for other
employees is made in accordance with school policy.
(2) Cash, Other Deposits, and Investments.

Cash and Other Deposits.
The carrying amount of the school's deposits with financial institutions was $777,919, and the bank
balance was $880,771. The bank balance is categorized as follows:
Amount insured or collateralized with securities held by the school
district or its agent in the school's name $ 237,776
Amount collateralized with securities held by the pledging financial
institution's trust department or agent in the school's name 642,995
Total Bank Balance $ 880,771
The uninsured bank balance at June 30, 1995, was $642,995. As described in Note 1(I), this uninsured
bank balance was required to be collateralized in the amount of 105%. The uninsured bank balance at
June 30, 1995, was collateralized in an amount equal to or greater than the legally required amount.
Investments.
Investments made by the school that are included on the balance sheet are summarized below:
Carrying Market
Amount Value
Investments in deferred compensation plan assets $ 53,582 53,582
Total Investments $ 53,582 53,582