FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 _part1 doc

FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Notes to Financial Statements
For the Year Ended June 30, 1995
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(3) Interfund Assets/Liabilities.
The following is a summary of due from/to other funds:
Due From Due To
General Fund
District maintenance fund $ 4,299
Total 4,299
Special Revenue Funds
Chapter 1 fiscal year 1995 fund 3,135
Eisenhower fund 579
Drug-free schools fund 585
Total 4,299
Total $ 4,299 4,299
(4) General Fixed Assets.
The following is a summary of changes in general fixed assets:
Balance Completed Balance
7-1-94 Additions Retirements Const. 6-30-95
Land $ 11,103 11,103
Buildings 334,366 334,366
Other motor equipment 6,450 6,450
Other equipment 284,325 3,022 19,017 268,330
Construction in progress 0 313,193 313,193
Total $ 636,244 316,215 19,017 0 933,442
Commitments under construction contracts at June 30, 1995, are summarized as
follows:
Required
Remaining Future
Commitment Financing

$ 6,324 0
(5) General Long-term Debt.
The following is a summary of changes in general long-term debt:
Balance Balance
7-1-94 Additions Reductions 6-30-95
Compensated absences payable $ 0 16,090 16,090
Total $ 0 16,090 0 16,090
FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Notes to Financial Statements
For the Year Ended June 30, 1995
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(6) Defined Benefit Pension Plan.
Plan Description. The school 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 report may be obtained by writing to Public
Employees' Retirement System of Mississippi, PERS Building, 429 Mississippi Street, Jackson, MS
39201 or by calling (601) 359-3589 or 1-800-444-PERS.
Funding Policy. PERS members are required to contribute 7.25% of their annual covered salary and
the school 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 and employers are
established and may be amended only by the State of Mississippi Legislature. The school's
contributions to PERS for the fiscal years ending June 30, 1995, 1994 and 1993 were $113,073,
$110,062 and $103,730, respectively, which equaled the required contributions for each year.
(7) Deferred Compensation Plan.
The school, through the Mississippi Public Employees' Retirement System (PERS), offers its
employees a deferred compensation plan created in accordance with Internal Revenue Code Section
457. The plan, available to all school employees, permits them to defer a portion of their salary until

future years. The deferred compensation is not available to employees until termination, retirement,
death or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and 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 other beneficiary) solely the property and rights of the school (without
being restricted to the provisions of benefits under the plan), subject only to the claims of the school's
general creditors. Participants' rights under the plan are equal to those of general creditors of the
school in an amount equal to the fair market value of the deferred account for each participant.
As of June 30, 1995, assets held for participants employed by the school and reported in an Agency
Fund totaled $53,582. The school believes that it is unlikely that it will use the assets to satisfy the
claims of general creditors in the future. The school has no liability for losses under the plan, but the
Board of Trustees of the Mississippi Public Employees' Retirement System, as plan administrator, does
have the duty of due care that would be required of an ordinary prudent investor.
(8) Other Commitments.
Commitments under construction contracts are described in Note 4.
(9) Prior Period Adjustment.
Reclassify fund equity - An adjustment to correct a prior year error in recording an asset or liability.
FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Notes to Financial Statements
For the Year Ended June 30, 1995
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(10) Risk Management.
The school is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The school carries
commercial insurance for these risks. Settled claims resulting from these insured risks have not
exceeded commercial insurance coverage in any of the past three fiscal years.
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FORREST COUNTY AGRICULTURAL HIGH SCHOOL
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FORREST COUNTY AGRICULTURAL HIGH SCHOOL
SUPPLEMENTAL INFORMATION
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FORREST COUNTY AGRICULTURAL HIGH SCHOOL
Schedule of Federal Financial Assistance
For the Year Ended June 30, 1995
Federal Grantor/ Catalog of
Pass-through Grantor/ Federal Domestic Federal Other Total Federal
Program Title Assistance Number Revenue Revenue Expenditures Expenditures
U.S. Department of Agriculture
Passed-through State Department of Education:
Food distribution 10.550 $ 7,297 7,297 7,297
National school lunch program 10.555 57,650 44,878 92,301 51,900
Total U.S. Department of Agriculture 64,947 44,878 99,598 59,197

U.S. Department of Education
Passed-through State Department of Education:
Chapter 1 grants to LEAs 84.010 64,089 64,089 64,089
Vocational education - basic grants to states 84.048 3,882 3,882 3,882
Vocational education - consumer and homemaking education 84.049 260 260 260
Chapter 2 - state block grants 84.151 2,790 2,790 2,790
Eisenhower mathematics and science education - state grants 84.164 579 579 579
Drug-free schools and communities - state grants 84.186 1,255 1,255 1,255
Total U.S. Department of Education 72,855 72,855 72,855
Total Federal Financial Assistance $ 137,802 44,878 172,453 132,052
NOTE: The revenue and expenditure amounts include transfers in (out).
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FORREST COUNTY AGRICULTURAL HIGH SCHOOL

INTERNAL CONTROL STRUCTURE REPORTS
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FORREST COUNTY AGRICULTURAL HIGH SCHOOL
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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 THE INTERNAL CONTROL STRUCTURE
BASED ON AN AUDIT OF THE
GENERAL PURPOSE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
August 9, 1996
Superintendent and School Board
Forrest County Agricultural High School
We have audited the general purpose financial statements of the Forrest County Agricultural High
School as of and for the year ended June 30, 1995, and have issued our report thereon dated August 9, 1996.
Our report differed from the standard report because of a scope limitation due to inadequate general fixed assets
subsidiary records for the buildings and other equipment classifications.
Except for the scope limitation referred to above, we conducted our audit in accordance with generally
accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement.
The management of the Forrest County Agricultural High School is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of internal control structure policies
and procedures. The objectives of an internal control structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that

transactions are executed in accordance with management's authorization and recorded properly to permit the
preparation of general purpose financial statements in accordance with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur
and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk
that procedures may become inadequate because of changes in conditions or that the effectiveness of the design
and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the Forrest County
Agricultural High School for the year ended June 30, 1995, we obtained an understanding of the internal control
structure. With respect to the internal control structure, we obtained an understanding of the design of relevant
policies and procedures and whether they have been placed in operation, and we assessed control risk in order to
determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial
statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such
an opinion.
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We noted certain matters involving the internal control structure and its operation that we consider to
be reportable conditions under standards established by the American Institute of Certified Public Accountants.
Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or
operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to
record, process, summarize and report financial data consistent with the assertions of management in the general
purpose financial statements. The reportable conditions noted during our consideration of the internal control
structure are described in the accompanying "Schedule of Auditor's Findings and Recommendations."
A material weakness is a reportable condition in which the design or operation of one or more of the
internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities
in amounts that would be material in relation to the general purpose financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of performing their
assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the
internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all
reportable conditions that are also considered to be material weaknesses as defined above.
However, we believe none of the reportable conditions referred to above is a material weakness.

The prior year report did not contain any reportable conditions.
This report is intended for the information of the school board, management, and the appropriate
grantor agencies. However, this report is a matter of public record and its distribution is not limited.
WILLIAM S. JONES, CPA
Director, Department of Audit