STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR PHIL BRYANT State Auditor RAMONA HILL, CPA Director, Financial and Compliance Audit Division ED YARBOROUGH_part4 pptx

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OFFICE OF THE STATE AUDITOR
PHIL BRYANT
AUDITOR
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE
LAWS AND REGULATIONS
July 27, 1998
Members of the Board of Supervisors
Jefferson Davis County, Mississippi
We have audited the primary government financial statements of Jefferson Davis County, Mississippi, as of and
for the year ended September 30, 1997, and have issued our report thereon dated July 27, 1998. The auditor's report on
the primary government financial statements is modified to reflect that the primary government financial statements do
not include the financial data of the county's component units. We conducted our audit in accordance with generally
accepted auditing standards and the procedures prescribed by the State Auditor, and accordingly, included such tests of
the accounting records and such other auditing procedures as we considered necessary in the circumstances.
As required by the state legal compliance audit program prescribed by the Office of the State Auditor, we have
also performed procedures to test compliance with certain state laws and regulations. Our procedures were substantially
less in scope than an audit, the objective of which is the expression of an opinion on the county's compliance with these
requirements. Accordingly, we do not express such an opinion.
The results of our procedures and our audit of the primary government financial statements disclosed certain
immaterial instances of noncompliance with state laws and regulations. Our findings and recommendations and your
responses are included in the accompanying Schedule of Findings.
This report is intended for the information of management. This is not intended to limit the distribution of this
report, which is a matter of public record.
PHIL BRYANT RAMONA HILL, CPA
State Auditor Director, Financial and Compliance Audit Division
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JEFFERSON DAVIS COUNTY
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JEFFERSON DAVIS COUNTY

SCHEDULE OF FINDINGS
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JEFFERSON DAVIS COUNTY
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JEFFERSON DAVIS COUNTY
Schedule of Findings
For the Year Ended September 30, 1997
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A. Findings - Independent Auditor's Report on Compliance and on Internal Control Over Financial Reporting
Based on an Audit of the Primary Government Financial Statements Performed in Accordance With
Government Auditing Standards
Chancery Clerk.
97-1. Finding
Section 27-105-315, Miss. Code Ann. (1972), requires financial institutions serving as depositories
for county funds to place on deposit with the Chancery Clerk eligible securities in an amount equal to
105% of the maximum sum to be placed on deposit in such financial institution at any one time
exclusive of the amount insured by federal insurance. At
January 31, 1997, the county=s deposits were 17.3% undercollateralized.
Recommendation
The Chancery Clerk should monitor the county=s deposits to ensure they are adequately collateralized
in accordance with state law.
Chancery Clerk=s Response
I will contact the depository and request compliance with Section 27-105-315, Miss. Code Ann.
(1972). The securities are to collateralize all county funds and should be monitored on a monthly
basis.
Justice Court Clerk.
97-2. Finding
Section 7-7-211, Miss. Code Ann. (1972), gives the Office of the State Auditor the authority to
prescribe accounting systems. We noted serious internal control weaknesses in the operation of the
Justice Court Office. A prescribed receipt was not written for all collections. A separate set of

receipts, which were not posted to the journals, was maintained. Daily deposits were not made, which
allowed cash to accumulate. The method of payment (cash or check) was not always indicated on the
receipts. The amounts on the deposit slips did not correspond to the receipts. All collections were
not settled to the proper authorities on a monthly basis.
Recommendation
The Justice Court Clerk should comply with the accounting system prescribed in the Mississippi
County Financial Accounting Manual.
Justice Court Clerk=s Response
The Justice Court Clerk did not respond.
Auditor’s Note
The Justice Court Clerk resigned on August 18, 1998. There is an ongoing investigation by the
Office of the State Auditor and the District Attorney=s Office.
JEFFERSON DAVIS COUNTY
Schedule of Findings
For the Year Ended September 30, 1997
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Tax Collector.
97-3. Finding
Section 7-7-211, Miss. Code Ann. (1972), gives the Office of the State Auditor the authority to
prescribe accounting systems. As reported in the prior year audit report, the cash journal was not
posted as required, and the bank account was not reconciled to the cash journal. Also, the amount of
legislative credit posted to the journal as due from the state was not reconciled monthly to the amount
received from the state.
Recommendation
The Tax Collector should post the cash journal and reconcile the bank account to the cash journal as
prescribed in the Mississippi County Financial Accounting Manual. Also, the amount of legislative
credit due from the state should be reconciled monthly.
Tax Collector's Response
I will reconcile the amount of legislative credit from the state to the amount posted in the journal or
actually received each month.

97-4. Finding
Section 27-29-11, Miss. Code Ann. (1972), requires the Tax Collector to settle all taxes collected for
the county by the twentieth of the next month following the month of collection. As reported in the
prior year audit report, all taxes collected were not settled monthly. Personal property taxes, totaling
$177,439 were collected in February, 1997, but were not settled until May, 1997. Also, some
commissions remained unsettled at the end of the audit year.
Recommendation
The Tax Collector should settle monthly all county taxes and commissions.
Tax Collector's Response
All taxes are settled on or before the twentieth of each month. However, I did not realize that the
report had not been run for the month of February. When I began to document my reports, I realized
this one was missing. I now run them one at a time.
JEFFERSON DAVIS COUNTY
Schedule of Findings
For the Year Ended September 30, 1997
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97-5. Finding
We noted the following internal control weaknesses in the operation of the Tax Collector=s Office:
a. Daily checkup of individual cash drawers was not recapped by cash and check amounts
received and reconciled to the daily deposits.
b. The bookkeeper did not open and close each day’s business in the computer system. By not
closing each day, receipts and other information in the computer could be changed.
c. Several clerk’s worked out of one cash drawer, and the cash drawers were not locked.
Recommendation
The Tax Collector should take the following actions to correct the above weaknesses:
a. Daily checkup of individual cash drawers should be recapped by cash and check amounts
and reconciled to the daily deposits. To facilitate this, each receipt should indicate whether
payment was by check or cash.
b. The bookkeeper should close each day’s business in the computer system at the end of the
business day. Clerk’s should only have access to the current day’s transactions. Changes to

information in the computer system should be sufficiently explained in a log and approved
by the Tax Collector.
c. Each clerk should have his/her own cash drawer, and have the capability of locking the
drawer.
Tax Collector’s Response
a. We will conduct daily checkups and indicate on each receipt if the transaction was paid by
cash or check.
b. The bookkeeper or Tax Collector will close each day’s business and any changes will be
logged.
c. Each clerk will be given a separate drawer with lock and key.
Service Organization - Delta Computer Systems, Inc.
97-6. Finding
Several systems supplied by Delta allow edit and deletion of critical records. Land redemption,
Justice Court Office and Tax Collector’s Office along with other systems, require an unaltered
numbered original to ensure adequate internal control. Delta software packages can be used with or
without prenumbered original documents.
JEFFERSON DAVIS COUNTY
Schedule of Findings
For the Year Ended September 30, 1997
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Recommendation
Processes that require original unaltered documents with a sequential preassigned number should be
modified to allow voiding but not edit or deletion. Counties using these systems should use
prenumbered originals.
Service Organization’s Response
The application software is incapable of determining what type of paper is being used by the
customer, thus incapable of assuring the use of prenumbered forms. The use of prenumbered forms
should be directed to the county, not Delta. As you note, Delta supports prenumbered forms. There
is no more we can do. If deletion of a critical record is allowed or occurs, the event is recorded in a
log file for most releases of the software and will be in full effect upon year 2000 upgrades.

B. Findings - Independent Auditor's Report on Compliance With State Laws and Regulations
Board of Supervisors.
1. Finding
Section 25-3-9(1), Miss. Code Ann. (1972), states the amount of salary to be paid to the county
attorney. For calendar years 1996 and 1997, the county attorney was overpaid $1,210.
Recommendation
The county attorney should not be paid more than the allowable amount, and any overpayment should
be repaid to the county treasury.
Board of Supervisors' Response
This amount has been reimbursed to the county. Future payments to the county attorney will be made
in compliance with the statute.
Auditor’s Note
The $1,210 overpayment was repaid to the county on October 2, 1998.
Circuit Clerk.
2. Finding
Section 27-105-371, Miss. Code Ann. (1972), requires any unidentifiable funds found by the State
Auditor to be settled into the General Fund of the county. At July 21, 1998, there was an
unidentifiable balance of $3,318 in the Circuit Clerk's criminal account.
JEFFERSON DAVIS COUNTY
Schedule of Findings
For the Year Ended September 30, 1997
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Recommendation
The Circuit Clerk should settle the unidentifiable balance of $3,318 to the Jefferson Davis County
General Fund.
Circuit Clerk's Response
The amount of $3,318 was paid to the Chancery Clerk of Jefferson Davis County on
October 5, 1998.
3. Finding
Section 9-1-43, Miss. Code Ann. (1972), requires the Circuit Clerk to maintain a fee account cash

journal as prescribed by the State Auditor. As reported in the prior year audit report, the Circuit
Clerk did not maintain the journal as required. Also, we found no documentation for $7,764 of
expenses claimed. However, from analyzing revenue and expenses, we believe the Circuit Clerk did
not exceed the earnings limitation for the year.
Recommendation
The Circuit Clerk should post all revenue and expenses to the journal, balance the journal and
maintain a cash balance which should be reconciled to the bank balance as prescribed. All
disbursements should be supported by sufficient documentation, and the Circuit Clerk should file an
amended earnings report with the Public Employees’ Retirement System and the State Auditor’s
Office.
Circuit Clerk's Response

I will work toward maintaining the fee account cash journal as required. I will also send an amended
earnings report to the Public Employees’ Retirement System and the State Auditor’s Office.
Tax Collector.
4. Finding
Section 27-31-109, Miss. Code Ann. (1972), authorizes only the Board of Supervisors, in its
discretion, to grant industrial tax exemptions. The Tax Collector collected ad valorem taxes from two
industries at an exempt tax levy rate. The Board of Supervisor had not authorized an exempt rate for
these industries. As a result, $17,960 of real and personal ad valorem taxes were uncollected for tax
years 1996 and 1997.
Recommendation
The Tax Collector should collect taxes based on the tax levy rate approved by the Board of
Supervisors. Any exemption to the tax levy rate should be approved by the Board of Supervisors.
The Tax Collector should collect the unpaid taxes for the prior year assessments.
Tax Collector's Response
I will request payment of taxes that were erroneously levied.