STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR PHIL BRYANT State Auditor RAMONA HILL, CPA Director, Financial and Compliance Audit Division BRENT BALLARD, CPA Director, Education Audit Section_part2 doc

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Fund Equity:
Investment in general fixed assets 8,312,143 8,312,143
Fund balances
Reserved for:
Investments 14,730 14,730
Unemployment benefits 48,150 48,150
Debt service 102,777 102,777
Inventory 6,472 6,472
Unreserved:
Undesignated 519,425 187,291 (14,760) 419,409 1,111,365
Total Fund Equity 519,425 193,763 (14,760) 102,777 482,289 8,312,143 9,595,637
Total Liabilities and Fund Equity $ 676,431 577,856 5,240 105,211 787,183 8,312,143 520,860 10,984,924
The notes to the financial statements are an integral part of this statement.
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SUNFLOWER COUNTY SCHOOL DISTRICT 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, 1997
Fiduciary
Governmental Fund Types Fund Type
Total
Special Capital Debt Expendable (Memorandum
General Revenue Projects Service Trust Only)
Revenues
Local sources $ 1,471,574 51,347 4 119,906 2,091 1,644,922
State sources 4,649,466 684,647 5,334,113
Federal sources 1,000 2,251,854 2,252,854
Sixteenth section sources 267,919 267,919

Total Revenues 6,122,040 2,987,848 4 119,906 270,010 9,499,808
Expenditures
Instruction 4,109,116 1,558,493 5,667,609
Support services:
Students 57,423 156,523 213,946
Instructional staff 281,644 256,806 538,450
General administration 226,663 197,207 13,305 437,175
School administration 482,812 482,812
Business 118,425 118,425
Operation and maintenance of plant 651,065 27,101 678,166
Transportation 375,346 139,072 514,418
Central 10,737 358 11,095
Noninstructional services 11,329 1,014,964 1,026,293
Sixteenth section 36,324 36,324
Facilities acquisition and construction 14,764 14,764
Debt service:
Principal 1,985 175,300 177,285
Interest 223 34,245 34,468
Other 750 750
Total Expenditures 6,326,768 3,350,524 14,764 210,295 49,629 9,951,980
Excess of Revenues Over
(Under) Expenditures (204,728) (362,676) (14,760) (90,389) 220,381 (452,172)
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Other Financing Sources (Uses)
Sale of other property 90 90
Operating transfers in 239,126 212,387 53,066 14,114 518,693
Operating transfers out (227,315) (87,503) (3,066) (200,000) (517,884)
Total Other Financing

Sources (Uses) 11,901 124,884 50,000 (185,886) 899
Excess of Revenues and Other
Sources Over (Under)
Expenditures and Other Uses (192,827) (237,792) (14,760) (40,389) 34,495 (451,273)
Fund Balances
July 1, 1996 712,252 431,011 143,166 433,064 1,719,493
Prior period adjustment:
Reclassify fund equity (Note 9) (469) (469)
July 1, 1996, as restated 712,252 430,542 143,166 433,064 1,719,024
Increase in reserve
for inventory 1,013 1,013
June 30, 1997 $ 519,425 193,763 (14,760) 102,777 467,559 1,268,764
The notes to the financial statements are an integral part of this statement.
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SUNFLOWER COUNTY SCHOOL DISTRICT
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual
All Governmental Fund Types
For the Year Ended June 30, 1997
General Fund Special Revenue Funds
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Local sources $ 1,472,000 1,471,574 (426) 51,850 51,347 (503)
State sources 4,700,000 4,649,466 (50,534) 705,200 684,647 (20,553)
Federal sources 1,000 1,000 2,431,350 2,251,854 (179,496)
Total Revenues 6,173,000 6,122,040 (50,960) 3,188,400 2,987,848 (200,552)

Expenditures
Instruction 4,125,000 4,109,116 15,884 1,750,000 1,558,493 191,507
Support services:
Students 64,000 57,423 6,577 160,000 156,523 3,477
Instructional staff 290,000 281,644 8,356 260,000 256,806 3,194
General administration 230,000 226,663 3,337 200,000 197,207 2,793
School administration 485,000 482,812 2,188
Business 120,000 118,425 1,575
Operation and maintenance
of plant 655,000 651,065 3,935 30,000 27,101 2,899
Transportation 380,000 375,346 4,654 140,000 139,072 928
Central 11,000 10,737 263 1,000 358 642
Noninstructional services 12,000 11,329 671 1,015,000 1,014,964 36
Facilities acquisition and
construction
Debt service:
Principal 450 1,985 (1,535)
Interest 232 223 9
Other
Total Expenditures 6,372,682 6,326,768 45,914 3,556,000 3,350,524 205,476
Excess of Revenues Over
(Under) Expenditures (204,728) (362,676)
Other Financing Sources 735,090 239,216 (495,874) 315,000 212,387 (102,613)
Other Financing Uses (725,000) (227,315) 497,685 (90,000) (87,503) 2,497
Total Other Financing
Sources (Uses) 10,090 11,901 1,811 225,000 124,884 (100,116)
Excess of Revenues and
Other Sources Over
(Under) Expenditures
and Other Uses (192,827) (237,792)

Fund Balances
July 1, 1996 712,252 431,011
Prior period adjustment:
Reclassify fund equity (469)
July 1, 1996, as restated 712,252 430,542
Increase in
reserve for inventory 1,013
June 30, 1997 $ 519,425 193,763
The notes to the financial statements are an integral part of this statement.
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Exhibit C
Capital Projects Funds Debt Service Funds
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
4 4 119,950 119,906 (44)
4 4 0 119,950 119,906 (44)
15,000 14,764 236
176,000 175,300 700
35,000 34,245 755
1,000 750 250
15,000 14,764 236 212,000 210,295 1,705
(14,760) (90,389)
400,000 (400,000) 55,000 53,066 (1,934)
(3,400) (3,066) 334
400,000 0 (400,000) 51,600 50,000 (1,600)
(14,760) (40,389)
0 143,166
0 143,166
(14,760) 102,777

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SUNFLOWER COUNTY SCHOOL DISTRICT Exhibit D
Combined Statement of Revenues, Expenses, and Changes in Fund Balances -
Nonexpendable Trust Funds
For the Year Ended June 30, 1997
Fiduciary
Fund Type
Nonexpendable
Trust
Operating Revenues
Earnings on investments $ 809
Total Operating Revenues 809
Operating Expenses 0
Operating Income 809
Nonoperating Revenues (Expenses) 0
Operating Transfers Out (809)
Net Income 0
Fund Balances
July 1, 1996 14,730
June 30, 1997 $ 14,730
The notes to the financial statements are an integral part of this statement.
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SUNFLOWER COUNTY SCHOOL DISTRICT Exhibit E
Combined Statement of Cash Flows - Nonexpendable Trust Funds
For the Year Ended June 30, 1997
Fiduciary
Fund Type
Nonexpendable
Trust
Cash Flows from Operating Activities

Operating income $ 809
Adjustments to reconcile operating
income to net cash provided by
operating activities:
Interest revenue included in
operating income (809)
Net Cash Provided by
Operating Activities 0
Cash Flows from Noncapital Financing
Activities
Operating transfers out (809)
Net Cash Provided (Used) by
Noncapital Financing
Activities (809)
Cash Flows from Capital and Related
Financing Activities 0
Cash Flows from Investing Activities
Acquisition of certificate of deposit (14,730)
Disposition of certificate of deposit 14,730
Interest revenue received 809
Net Cash Provided by
Investing Activities 809
Net Increase in
Cash and Cash Equivalents 0
Cash and Cash Equivalents
at Beginning of Year 0
Cash and Cash Equivalents
at End of Year $ 0
The notes to the financial statements are an integral part of this statement.
SUNFLOWER COUNTY SCHOOL DISTRICT

Notes to Financial Statements
For the Year Ended June 30, 1997
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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 district's governing board. As defined by generally accepted
accounting principles, the school district is considered a "primary government."
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 district by providing a combined
overview of financial position and results of operations of the district and cash flows of the
Nonexpendable Trust Funds. 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 district 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 district 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, or expenses. School district 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 district. 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.
SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
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Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for,
and the payment of, general long-term debt principal, interest and related costs. The primary revenue
source is local property taxes levied specifically for debt service.
FIDUCIARY FUNDS
Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the district
in a trustee capacity or as an agent for individuals, private organizations and/or other funds. These
include Expendable Trust, Nonexpendable Trust and Agency Funds. Expendable Trust Funds are
accounted for in essentially the same manner as governmental funds. Nonexpendable Trust Funds are
used to account for the principal portion of Trust Funds, the part which cannot be expended. 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 district. No depreciation has been provided on the general
fixed assets.
The long-term liabilities incurred by the school district 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 or expenses 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 or accrual basis of accounting, as appropriate, 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.
SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
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Fiduciary fund revenues and expenses or expenditures (as appropriate) are recognized on the
basis consistent with the fund's accounting measurement objective. Nonexpendable Trust
Funds are accounted for on the accrual basis. 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.

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 and Cash Equivalents.
The school district 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.
For purposes of the combined statement of cash flows, the school district considers the following to be
cash equivalents if they have a maturity of three months or less when acquired: all highly liquid
investments and certificates of deposit.
J. Investments.
The school district is allowed, by statute, to invest excess funds, except for sixteenth section principal
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).