STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR PHIL BRYANT State Auditor RAMONA HILL, CPA Director, Financial and Compliance Audit Division ED YARBOROUGH, CPA, CIA, CFE, CGFM Director, County Audit Section_part3 docx

JEFFERSON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1997
17
Receivable Fund Payable Fund Amount
Countywide road maintenance General Fund 17,971
Countywide bridge General Fund 891
Jail bond I & S General Fund 1,605
Road & bridge bond General Fund 4,103
Recreational facilities General Fund 891
Copiah-Lincoln maintenance General Fund 1,444
Copiah-Lincoln improvement General Fund 1,802
School bond debt General Fund 2,301
Total $ 45,687
Advances to/from Other Funds:
Receivable Fund Payable Fund Amount
General Fund Solid waste $ 19,200
General Fund Data processing 7,806
General purpose Solid waste 6,114
Severance tax Daycare escrow 10,600
Severance tax Data processing 6,000
Severance tax Countywide bridge 2,900
Fire maintenance Data processing 8,400
Fire maintenance Countywide road 31,700
Fire maintenance General Fund 21,500
Fire maintenance Solid waste 600
Solid waste Data processing 3,800
Data processing General Fund 70,900
Data processing Recreational facilities 21,000
Capital improvement General Fund 59,600
Capital improvement Solid waste 17,200

Capital improvement Data processing 5,000
Capital improvement School note 8,212
Capital improvement Countywide road 17,630
Capital improvement Courthouse special 700
Countywide road Data processing 24,500
Countywide road General Fund 134,300
Countywide bridge General Fund 92,300
Countywide bridge Capital improvement 2,247
Jail bond I & S General Fund 56,441
Jail bond I & S Countywide road 17,500
Courthouse special Jail bond I & S 1,900
COP courthouse General Fund 39,041
County building General Fund 20,600
County building Data processing 10,500
County building Courthouse special 16,000
Tourism General Fund 55,000
Recreational facilities General Fund 16,600
Total $ 805,791
JEFFERSON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1997
18
(6) Fixed Assets.
Changes in the General Fixed Assets Account Group at September 30, 1997, are as follows:
Balance Balance
Oct. 1, 1996 Additions Deletions Sept. 30, 1997
Governmental Funds:
Land $ 319,951 319,951
Buildings 1,449,341 4,334,088 5,783,429
Improvements other than buildings 51,390 51,390

Construction in progress 2,514,816 1,819,272 4,334,088
Mobile equipment 864,617 358,906 43,872 1,179,651
Other furniture and equipment 363,905 73,047 73,829 363,123
Leased property under capital leases 208,700 119,444 9,625 318,519
Total $ 5,772,720 6,704,757 4,461,414 8,016,063
(7) 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, 1997 to January 1, 1998. The pool may
make an overall supplemental assessment or declare a refund depending on the loss experience of all the entities it
insures.
JEFFERSON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1997
19
(8) Capital Leases.
As Lessee:
The county is obligated for the following assets acquired through capital leases as of September 30, 1997:
General
Fixed Assets
Classes of Property Group
Mobile equipment $ 208,159
Other furniture and equipment 110,360
Leased Property Under Capital Leases $ 318,519
The future minimum lease payments together with the present value of the net minimum lease payables as of

September 30, 1997, are as follows:
General
Long-term
Debt Group
Year Ending September 30:
1998 $ 82,941
1999 36,528
2000 34,817
2001 14,060
2002 11,717
Total Minimum Lease Payments 180,063
Less: Amount representing interest 19,023
Present Value of Net Minimum Lease Payments $ 161,040
(9) Long-term Debt.
Debt outstanding as of September 30, 1997, consisted of the following:
Final
Amount Interest Maturity
Description and Purpose Outstanding Rates Date
General Long-term Debt Account Group:
A. General Obligation Bonds:
General obligation bonds - Series 1990 $ 410,000 6.5 - 7.2 5-10
General obligation road & bridge bonds -
Series 1994 1,185,000 5.7 - 7.25 7-14
General obligation hospital bonds 60,000 5.75, 5.9 5-02
Total General Obligation Bonds $ 1,655,000
JEFFERSON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1997
20
Final

Amount Interest Maturity
Description and Purpose Outstanding Rates Date
B. Limited Obligation Bonds:
Courthouse renovation and jail
construction - certificates of participation $ 765,000 5.95 - 7.4 4-12
Urban renewal revenue bonds -
correctional facility construction 5,100,000 5 - 6.75 2-16
Total Limited Obligation Bonds $ 5,865,000
C. Equipment Notes:
Road equipment $ 53,814 6.00 8-98
Road equipment 43,317 7.00 7-99
Total Equipment Notes $ 97,131
D. Capital Leases:
Motor grader $ 22,300 6.00 4-98
Motor grader 22,300 6.00 4-98
Clayton mobile home 7,718 8.08 3-98
Radio equipment and tower 51,538 6.50 8-00
IBM AS-400 upgrade 57,184 7.25 7-02
Total Capital Leases $ 161,040
E. Other Loans:
Garbage truck $ 49,953 7.00 1-98
Sheriff's vehicles and rescue tool 26,110 7.00 1-98
Geriatric unit for Jefferson County
Hospital 50,000 7.00 6-98
Five Supervisors' trucks 46,333 7.00 6-99
Two fire trucks 147,656 8.00 12-99
Total Other Loans $ 320,052
Limited Obligation Bonds
Certificates of participation (COPs) designed as "qualified tax exempt obligations" for purposes of Section 265 of the
Internal Revenue Code of 1986, were issued with a face value of $795,000 for the purpose of financing construction of a

new courthouse, renovating and expanding the existing jail for a law enforcement and detention center and renovating
the existing chancery building. The COPs are not secured by the full faith and credit of the county. However, the
county, as lessee, is obligated, pursuant to a 20 year lease purchase agreement with the lessor, People's Bank of Biloxi,
Mississippi, as the sole source of payment for the COPs. The lease obligation is not recorded because the COPs are
considered, in substance, limited debt obligations of the county, and accordingly, are reflected in the General Long-term
Debt Account Group. Title to the property will transfer to the county upon satisfactory performance of the lease term
payments.
JEFFERSON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1997
21
Urban renewal revenue bonds, designed as "qualified tax exempt obligations" for purposes of Section 265 of the Internal
Revenue Code of 1986, were issued with a face value of $5,100,000 for the purpose of financing the construction and
equipping of the Jefferson/Franklin Regional Correctional Facility. The bonds are not secured by the full faith and credit
of the county. However, the county, as lessee, is obligated, pursuant to a 20 year lease purchase agreement with the
lessor, Jefferson/Franklin Regional Correctional Facility Financing Corporation, as the sole source of the payment for the
revenue bonds. The lease obligation is not recorded because the urban renewal revenue bonds are considered, in
substance, limited debt obligations of the county and, accordingly, are reflected in the General Long-term Debt Account
Group. Title to the property will transfer to the county upon satisfactory performance of the lease term payments.
Annual debt service requirements to maturity for the following debt reported in the General Long-term Debt Account
Group are as follows:
General Limited
Obligation Obligation
Year Ending September 30 Bonds Notes Notes Loans Total
1998 $ 174,200 364,029 53,435 197,459 789,123
1999 174,653 367,946 53,033 108,633 704,265
2000 174,786 555,129 53,156 783,071
2001 174,738 555,220 729,958
2002 174,184 559,091 733,275
Later years 1,730,282 7,391,474 9,121,756

Total 2,602,843 9,792,889 106,468 359,248 12,861,448
Less: Amounts representing interest 947,843 3,927,889 9,337 39,196 4,924,265
Total at Present Value $ 1,655,000 5,865,000 97,131 320,052 7,937,183
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, 1997, the amount of outstanding general obligation bonded debt
was equal to 5.37% of the latest property assessments.
The following changes occurred in liabilities reported at year end:
Balance Balance
Styling Oct. 1, 1996 Additions Reductions Sept. 30, 1997
General Long-term Debt Account Group:
Compensated absences $ 59,310 28,012 31,298
General obligation bonds 1,720,000 65,000 1,655,000
Limited obligation bonds 5,875,000 10,000 5,865,000
Equipment notes 118,789 21,658 97,131
Capital leases 87,472 119,444 45,876 161,040
Other loans 275,389 147,656 102,993 320,052
Total $ 8,135,960 267,100 273,539 8,129,521
(10) Contingencies.
JEFFERSON COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1997
22
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.
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.
(11) No Commitment Debt (Not Included in Financial Statements).
No commitment debt is repaid only by the entities for whom the debt was issued and includes debt that either bears the
county's name or for which a moral responsibility may exist that is not an enforceable promise to pay. No commitment
debt explicitly states the absence of obligation by the county other than possibly an agreement to assist creditors in
exercising their rights in the event of default. Because a default may adversely affect the county's own ability to borrow,
the principal amount of such debt outstanding at year end is disclosed as follows:
Balance at
Styling September 30, 1997
Nursing home revenue bonds $ 1,615,453
(12) Jointly Governed Organizations.
The county participates in the following jointly governed organizations:
Southwest Mississippi Planning and Development District operates in a district composed of the Counties of Adams,
Amite, Claiborne, Franklin, Jefferson, Lawrence, Lincoln, Pike, Walthall and Wilkinson. The Jefferson County Board of
Supervisors appoints four of the 40 members of the board of directors. The county appropriated approximately $3,672
for support of the district in fiscal year 1997.
Southwest Mississippi Mental Health Complex operates in a district composed of the Counties of Adams, Amite,
Claiborne, Franklin, Jefferson, Lawrence, Lincoln, Pike, Walthall and Wilkinson. The Jefferson County Board of
Supervisors appoints one of the ten members of the board of commissioners. The county appropriated approximately
$18,050 for support of the complex in fiscal year 1997.
Copiah-Lincoln Community College operates in a district composed of the Counties of Adams, Copiah, Franklin,
Jefferson, Lawrence, Lincoln and Simpson. The Jefferson County Board of Supervisors appoints two of the 27 members
of the college board of trustees. The county appropriated approximately $90,369 for maintenance and support of the
college in fiscal year 1997.
Southwest Mississippi Development Corporation operates in a district composed of the Counties of Adams, Amite,
Claiborne, Franklin, Jefferson, Lawrence, Lincoln, Pike, Walthall and Wilkinson. The Jefferson County Board of
Supervisors appoints one of the 11 members of the board of commissioners.
JEFFERSON COUNTY

Notes to Financial Statements
For the Year Ended September 30, 1997
23
(13) Defined Benefit Pension Plan.
Plan Description. Jefferson 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 actuarially 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 (employer share only) to PERS for the years ending September 30, 1997, 1996
and 1995 were $156,350, $101,885 and $101,756, respectively, equal to the required contributions for each year.
(14) Subsequent Events.
Subsequent to September 30, 1997, Jefferson County issued the following debt obligations:
Issue Interest Issue Type of Source of
Date Rate Amount Financing Financing
10-97 8 $ 200,000 Tax anticipation note Ad valorem taxes
2-98 5.2 114,980 Capital lease Ad valorem taxes
2-98 5.98 22,200 Capital lease Ad valorem taxes
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JEFFERSON COUNTY
SUPPLEMENTAL INFORMATION
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JEFFERSON COUNTY
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