STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR PHIL BRYANT_part3 doc

ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
17
(8) Claims and Judgments.
Risk Financing.
The county finances its exposure to risk of loss related to workers' compensation for injuries to its employees
through the Mississippi Public Entity Workers' Compensation Trust, a public entity risk pool. 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, 1996 to January 1, 1997. The pool may make an overall supplemental assessment or declare a refund
depending on the loss experience of all the entities it insures.
(9) Capital Leases.
As Lessee:
The county is obligated for the following assets acquired through capital leases as of September 30, 1996:
General
Fixed Assets
Classes of Property Group
Mobile equipment $ 1,021,341
Other furniture and equipment 348,725
Leased Property Under Capital Leases $ 1,370,066
The future minimum lease payments together with the present value of the net minimum lease payables as of
September 30, 1996, are as follows:
General
Long-term
Debt Group
Year Ending September 30:
1997 $ 275,016

1998 201,211
1999 182,617
2000 69,288
2001 28,371
Later years 7,392
Total Minimum Lease Payments 763,895
Less: Amount representing interest 69,296
Present Value of Net Minimum Lease Payments $ 694,599
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
18
(10) Long-term Debt.
Debt outstanding as of September 30, 1996, consists of the following:
Final
Amount Interest Maturity
Description and Purpose Outstanding Rates Date
General Long-term Debt Account Group:
A. General Obligation Bonds:
Airport improvement $ 775,000 6.38 7-01-06
Solid waste transfer 595,000 4.8/5.75 8-01-04
Juvenile detention center 295,000 4.5/5.1 3-01-06
Total General Obligation Bonds $ 1,665,000
B. Capital Leases:
911 system $ 366 11.0 10-96
Rohn SSV 180' tower 698 11.0 10-96
Dispatch console 5,884 10.91 12-96
911 equipment 8,109 6.31 3-97
Case backhoe 1992 model 580 1,059 7.0 11-96
IBM computer and four monitors 2,517 6.22 1-98

Software 7,065 6.29 1-98
Champion motor grader 31,501 6.0 3-99
1993 Chevrolet dump truck 15,638 5.25 3-98
1969 Mack truck 11,171 5.25 4-97
81 distributor
73 etnyre
Ferguson roller
JD tractor boom mower 6,838 5.25 7-97
JD 5300 2wd tractor 3,916 9.0 9-97
1986 Ford dump truck 2,388 5.25 1-97
Two 1994 LTD Ford Crown Victorias 9,654 5.2 1-98
JCB model 215 loader/backhoe 14,890 5.0 2-98
1986 International 9370 dump truck 7,349 6.0 3-98
1994 580 Case backhoe 12,107 5.0 5-98
6300 John Deere tractor with rotary mower 13,634 5.0 6-98
1988 544E John Deere front end loader 29,926 6.0 6-99
1994 Caterpillar 140G motor grader 85,553 5.5 8-99
John Deere tractor 10,411 6.0 10-98
Ford Crown Victoria 1995 9,806 6.0 12-98
Reappraisal mapping machine 1,118 9.8 2-97
Motor grader 69,409 5.8 3-02
Case backhoe and trailer 16,922 6.0 3-99
International dump truck 1990 10,687 6.0 5-98
Ford one ton truck 6,856 5.75 9-98
Ford Crown Victoria 1995 12,107 5.50 7-99
JD tractor & boom mower 95 38,438 6 12-00
1996 Chevrolet pickup 14,087 5.50 12-99
JD 5500 tractors (two) 29,415 5.50 4-00
ALCORN COUNTY
Notes to Financial Statements

For the Year Ended September 30, 1996
19
Final
Amount Interest Maturity
Description and Purpose Outstanding Rates Date
IBM computer - tax office 87,839 5.43 3-01
International truck and home trailer 89 26,209 5.50 4-99
1996 Ford Crown Victoria 16,373 5.50 4-00
JD tractor & cutter (new 96) 24,230 5.50 4-00
1991 International dump truck 19,347 5.50 6-00
1996 GMC pickup 16,852 6.0 6-00
Belly dump trailer 40 ft. 14,230 5.50 7-99
Total Capital Leases $ 694,599
C. Other Loans:
Countywide road repair $ 187,500 4.65 6-97
Human services building 228,053 4.88 7-97
Countywide road repair 250,000 4.6 6-98
Total Other Loans $ 665,553
Annual debt service requirements to maturity for the following debt reported in the General Long-term Debt
Account Group are as follows:
Year Ending September 30 Bonds Loans Total
1997 $ 239,122 592,672 831,794
1998 234,572 130,750 365,322
1999 236,392 236,392
2000 233,072 233,072
2001 239,190 239,190
Later years 1,009,057 1,009,057
Total 2,191,405 723,422 2,914,827
Less: Amounts representing interest 526,405 57,869 584,274
Total at Present Value $ 1,665,000 665,553 2,330,553

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, 1996, the amount of outstanding
general obligation bonded debt was equal to 1.7% of the latest property assessments.
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
20
The following changes occurred in liabilities reported at year end:
Balance Balance
Styling Oct. 1, 1995 Additions Reductions Sept. 30, 1996
General Long-term Debt Account Group: $
General obligation bonds 1,520,000 295,000 150,000 1,665,000
Capital leases 676,469 318,298 300,168 694,599
Other loans 1,023,004 250,000 607,451 665,553
Total $ 3,219,473 863,298 1,057,619 3,025,152
(11) 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. No provision for
any liability that may result has been recognized in the county's financial statements.
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.
(12) Joint Ventures.
The county participates in the following joint ventures:

Alcorn County is a participant with Prentiss, Tippah and Tishomingo Counties in a joint venture authorized by
Section 39-3-9, Miss. Code Ann. (1972), to operate Northeast Regional Library. The joint venture was created to
provide a regional library for the area and is governed by a four member board appointed by the four Boards of
Supervisors. By contractual agreement, the county's appropriation from the General Fund this year to the joint
venture amounted to $105,000. Complete financial statements for the Northeast Regional Library can be obtained
from Northeast Regional Library, 1023 North Fillmore Street, Corinth, Mississippi 38834.
Alcorn County is a participant with the City of Corinth in a joint venture authorized by H.B. 1183, 1972 Session,
to operate the Corinth-Alcorn Area Chamber of Commerce. The joint venture was created to foster, encourage and
facilitate economic development in the county and is governed by 32 members: four appointed by the county, two
appointed by the city and others from the business community. The county provided $226,529 for the operations of
the entity during the 1996 fiscal year. Complete financial statements for the Corinth-Alcorn Area Chamber of
Commerce can be obtained from Chamber of Commerce I.D.A., 810 Tate Street, Corinth, Mississippi 38834.
Alcorn County is a participant with the City of Corinth in a joint venture authorized by Section 61-3-5, Miss. Code
Ann. (1972), to operate the Corinth-Alcorn County Airport. The joint venture was created to provide an airport for
the area and is governed by a five member board of commissioners appointed as follows: Alcorn County, two; City
of Corinth, two; jointly, one. Alcorn County provided $75,000 for the operations of the entity during the 1996
fiscal year. Complete financial statements for the Corinth-Alcorn County Joint Airport Board can be obtained
from Corinth-Alcorn County Airport, Route 1, Box 91, Corinth, Mississippi 38834.
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
21
Alcorn County is a participant with the City of Corinth in a joint venture to operate the Siege and Battle of Corinth
Commission. The joint venture was created to promote tourism, and is governed by a five member board appointed
as follows: Alcorn County, two; City of Corinth, two; jointly, one. No county funds were expended during the
1996 fiscal year. Complete financial statements for the Siege and Battle of Corinth Commission can be obtained
from P.O. Box 45, Corinth, Mississippi 38834-0045.
Alcorn County is a participant with the City of Corinth in a joint venture authorized by Section 41-13-15, Miss.
Code Ann. (1972), to operate Magnolia Hospital. The joint venture was created to provide a community hospital
for the area, and is governed by a five member board of directors, two appointed by the county Board of

Supervisors, two appointed by the city and one jointly appointed. Alcorn County provided $5,000 for the 1996
fiscal year. Complete financial statements for the Magnolia Hospital can be obtained from Magnolia Hospital,
Alcorn Drive, Corinth, Mississippi 38834.
Alcorn County is a participant with the City of Corinth in a joint venture authorized by Section 55-9-1, Miss. Code
Ann. (1972), to operate the Corinth-Alcorn County Recreational Commission. The joint venture was created to
provide recreational opportunities for the area, and is governed by a five member board. Each entity appoints two
of the five board members and the fifth is jointly appointed. Alcorn County provided $169,894 for the 1996 fiscal
year. Complete financial statements for the Corinth-Alcorn County Recreational Commission can be obtained
from Corinth-Alcorn County Recreational Commission, P.O. Box 669, Corinth, Mississippi 38834.
Alcorn County is a participant with the City of Corinth in a joint venture established by local and private
legislation (Senate Bill 3219), 1997 session, to operate the Corinth Area Tourism Promotion Council. The joint
venture was created to promote tourism, and is governed by a seven member board of directors. Each entity
appoints one board member, the Corinth Area Restaurant Association appoints three board members and the
Corinth Area Hotel-Motel-Inn-Bed and Breakfast Association appoints two board members. The joint venture is
funded with a 2 percent sales tax on motel and food and beverage sales within the City of Corinth. Complete
financial statements for the Corinth Area Tourism Promotion Council can be obtained from the Corinth Area
Tourism Promotion Council, P.O. Box 69, Corinth, Mississippi 38835.
(13) Jointly Governed Organizations.
The county participates in the following jointly governed organizations:
The Region IV Mental Health-Mental Retardation Commission operates in a district composed of the Counties of
Alcorn, Prentiss, Tippah and Tishomingo. The board of commissioners is comprised of one appointee from each
county Board of Supervisors. The county appropriated approximately $43,227 for maintenance and support of the
commission in fiscal year 1996.
The Northeast Mississippi Planning and Development District operates in a district composed of the Counties of
Alcorn, Benton, Marshall, Prentiss, Tippah and Tishomingo. The governing body is a 24 member board of
directors, four appointed by the Board of Supervisors of each member county. The county appropriated $18,000 for
maintenance and support of the district in fiscal year 1996.
The Northeast Mississippi Community College operates in a district composed of the Counties of Alcorn, Prentiss,
Tippah, Tishomingo and Union. The college Board of Trustees is composed of 15 members, 14 appointed by the
county Boards of Supervisors as follows: Prentiss, six; Alcorn, two; Union, two; Tishomingo, two; Tippah, two;

and one member appointed at-large. The county appropriated approximately $402,425 for maintenance and
support of the college in fiscal year 1996.
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
22
The Northeast Mississippi Regional Solid Waste Authority operates in a district composed of the Counties of
Alcorn, Benton, Marshall, Prentiss, Tippah and Tishomingo, and the Cities of Ashland, Booneville, Corinth, Holly
Springs, Iuka and Ripley. Each of the 12 members appoints one board member. The county appropriated
approximately $4,016 for maintenance and support of the authority in fiscal year 1996.
(14) Defined Benefit Pension Plan.
Plan Description. Alcorn 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.
Funding Policy. PERS members are required to contribute 7.25% of their annual covered salary and the county is
required to contribute at an actually 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 (both employer and employee shares) to PERS for the years ending
September 30, 1996, 1995 and 1994 were $363,194, $344,580 and $319,424, respectively, equal to the required
contributions for each year.
(15) Subsequent Event.
Subsequent to September 30, 1996, Alcorn County issued the following debt obligation:
Issue Interest Issue Type of Source of
Date Rate Amount Financing Financing
4-97 4.7 $ 500,000 Other loan - road & bridge Tax levy
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ALCORN COUNTY
SUPPLEMENTAL INFORMATION
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ALCORN COUNTY
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ALCORN COUNTY
Schedule of Federal Financial Assistance
For the Year Ended September 30, 1996
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
Mississippi Department of
Economic and
Community Development -
Community development block grants
Human Services building 14.219 4-002-PF-01 $ 300,000 $ 105,409 105,409
Industrial Leedo Road 14.219 3-113A-002-ED-IF01 301,851 104,456 104,456
Kossuth water 14.219 4-002-EM-01 75,000 22,377 22,377
Incubator system 14.219 2-002-AR-01 75,000 75,000 75,000
Total U.S. Department of Housing
and Urban Development 307,242 307,242
U.S. Department of Interior
National Park Service 15.904 N/A 100,000 39,048 39,048
U.S. Department of Justice
Community oriented policing

services grant 16.710 N/A 23,303 23,303 23,303
Total Federal Financial Assistance $ 369,593 369,593
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ALCORN COUNTY
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