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_part3 ppt

SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
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The school district can invest its sixteenth section principal funds in any direct obligation issued by or
guaranteed in full as to principal and interest by the United States of America; or in certificates of
deposit issued by a qualified depository of the state of Mississippi as approved by the State Treasurer;
or in interest-bearing deposits or other obligations of financial institutions in which, and to the same
extent as, the State Treasurer is authorized to invest excess state funds under and by virtue of the
provisions of Section 27-105-33, Miss. Code Ann. (1972), except that 100% of said funds are
authorized to be so invested.
For accounting purposes, certificates of deposit and interest-bearing accounts are classified as cash
and other deposits.
K. Inventories and Prepaid Items.
Donated commodities are received from the USDA and are valued at USDA cost. Other inventories
are valued at cost (calculated on the first-in, first-out basis).
The costs of governmental fund type inventories are reported as expenditures when purchased.
Prepaid items, such as prepaid insurance, are not reported for governmental fund types since the costs
of such items are accounted for as expenditures in the period of acquisition.
L. Interfund Loans.
Short-term (due within one year) interfund loan receivables are reported as "due from other funds"
and are considered available expendable resources.
M. Fund Reserves.
Fund reserves are portions of fund equity that are legally segregated for a specific future use or are not
available for current operations. Following is a description of fund reserves used by the district:
Reserved for investments - An account that represents the portion of the fund balance of the sixteenth
section principal fund which is legally restricted for investment purposes.
Reserved for unemployment benefits - An account that represents the fund balance of the
unemployment compensation revolving fund which is legally restricted for the payment of
unemployment benefits.
Reserved for debt service - An account that represents the fund balance for the Debt Service Fund

resources which are legally restricted for the payment of general long-term debt principal and interest
amounts maturing in future years.
Reserved for inventory - An account that represents a portion of the fund balance which indicates that
inventories do not represent available spendable resources even though they are a component of net
current assets.
SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
18
N. Property Taxes.
Ad valorem property taxes are levied by the governing authorities of the county on behalf of the
school district based upon an order adopted by the school board of the school district requesting an
ad valorem tax effort in dollars. Since the taxes are not levied and collected by the school district, the
revenues to be generated by the annual levies are not recognized until the taxes are actually collected
by the tax levying authority.
O. Minimum Education Program Revenues.
Revenues from the state minimum education program are appropriated on a fiscal year basis and are
recorded at the time the revenues are received from the state of Mississippi.
P. Compensated Absences.
Employees of the school district accumulate sick leave at a minimum amount as required by state law
or at a greater amount provided by school district policy. Some employees are allowed personal leave
and/or vacation leave in accordance with school district policy. The district pays for unused leave for
employees as required to do so by Section 37-7-307(5), Miss. Code Ann. (1972).
(2) Cash and Other Deposits.
The carrying amount of the school district's deposits with financial institutions was $1,215,974 and the bank
balance was $1,889,142. The bank balance is categorized as follows:
Amount insured or collateralized with securities held by the school
district or its agent in the school district's name $ 422,679
Amount collateralized with securities held by the pledging financial
institution's trust department or agent in the school district's name 1,466,463

Total Bank Balance $ 1,889,142
The uninsured bank balance at June 30, 1997, was $1,466,463. As described in Note 1(I), this uninsured bank
balance was required to be collateralized in the amount of 105%. The uninsured bank balance at June 30,
1997, was collateralized in an amount equal to or greater than the legally required amount.
SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
19
(3) Interfund Assets/Liabilities.
The following is a summary of due from/to other funds:
Due From Due To
General Fund
District maintenance fund $ 139,324 156,914
Special education, local fund 308
Activity fund 92
School building fund 156,715
Total 296,347 157,006
Special Revenue Funds
Uniform millage assistance grant fund 143 10,390
Technology in the classroom fund 72,155
Food service fund 195 15,484
Title I, fiscal year 1996 fund 120,132
Title I, fiscal year 1997 fund 118,268 173,822
Chapter 2, fiscal year 1997 fund 1,122
EEF - buildings and buses fund 10,827
EEF - textbooks fund 38,344
EEF - transportation fund 26,287
EEF - classroom fund 1,679
EHA, Part B, fiscal year 1997 fund 20 14,187
Vocational education fund 143

Tech-prep fund 25,244
Drug-free, fiscal year 1997 fund 11,885
Special education transition grant fund 10,773
Teacher talk mini grant fund 1,000
Total 269,061 383,039
Capital Projects Fund
Ruleville Central High School capital projects fund 20,000
Total 20,000
Debt Service Funds
Asbestos debt service fund 2,434
Gentry High School debt service fund 2,434
Total 2,434 2,434
Trust and Agency Fund
Payroll clearing fund 5,363
Total 5,363
Total $ 567,842 567,842
SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
20
(4) General Fixed Assets.
The following is a summary of changes in general fixed assets:
Balance Balance
7-1-96 Additions Retirements 6-30-97
Buildings and equipment $ 7,148,398 19,150 7,167,548
Transportation equipment 942,446 80,936 1,023,382
Other motor equipment 102,021 19,192 121,213
Leased property under capital leases 19,150 19,150
Total $ 8,212,015 119,278 19,150 8,312,143
(5) General Long-term Debt.

The following is a summary of changes in general long-term debt:
Balance Balance
7-1-96 Additions Reductions 6-30-97
A. Building purpose loans payable $ 230,300 130,300 100,000
B. Other loans payable 375,000 45,000 330,000
C. Obligations under capital leases 1,985 1,985
D. Compensated absences payable 55,815 35,045 90,860
Total $ 663,100 35,045 177,285 520,860
A. Building purpose loans payable.
The following is a schedule by years of the total payments due on this debt:
Year Ending
June 30 Principal Interest Total
1998 $ 50,000 7,500 57,500
1999 50,000 3,750 53,750
Total $ 100,000 11,250 111,250
SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
21
B. Other loans payable.
The following is a schedule by years of the total payments due on this debt:
Year Ending
June 30 Principal Interest Total
1998 $ 50,000 15,082 65,082
1999 50,000 13,020 63,020
2000 55,000 10,820 65,820
2001 55,000 8,345 63,345
2002 60,000 5,760 65,760
Thereafter 60,000 2,880 62,880
Total $ 330,000 55,907 385,907

(6) Defined Benefit Pension Plan.
Plan Description. The school district 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
district 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 district's contributions to PERS for the fiscal years
ending June 30, 1997, 1996 and 1995 were $523,078, $516,064 and $518,906, respectively, which equaled
the required contributions for each year.
(7) Sixteenth Section Lands.
Sixteenth section school lands, or lands granted in lieu thereof, constitute property held in trust for the benefit
of the public schools. The school board, under the general supervision of the Office of the Secretary of State,
has control and jurisdiction of said school trust lands and of all funds arising from any disposition thereof. It is
the duty of the school board to manage the school trust lands and all funds arising therefrom as trust property.
Accordingly, the board shall assure that adequate compensation is received for all uses of the trust lands,
except for uses by the public schools. The following are the future rental payments to be made to the school
district for the use of school trust lands. These future rental payments are from existing leases and do not
anticipate renewals or new leases.
SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
22
Year Ending
June 30 Amount

1998 $ 221,173
1999 208,026
2000 21,599
2001 1,070
2002 1,070
Thereafter 35,840
Total $ 488,778
(8) Deficit Fund Balance of Individual Fund.
The Ruleville Central High School capital projects fund (Capital Projects Fund) had a deficit fund balance of
$14,760.
The deficit fund balance is not in violation of state law. The deficit could have been eliminated with a transfer
from the school building fund (General Fund).
(9) Prior Period Adjustment.
Reclassify fund equity - An adjustment to correct a prior year error in recording an asset or liability.
(10) Subsequent Events.
On July 1, 1997 the district issued $500,000 in negotiable limited tax notes. This debt will be used for the
purpose of erecting school buildings at Ruleville Central High School.
(11) Risk Management.
The school district 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. Except as
described below, the district 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.
SUNFLOWER COUNTY SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 1997
23
Participation in Public Entity Risk Pool.
The school district is a member of the Mississippi School Boards Association Workers'
Compensation Trust (MSBAWCT). The trust is a risk-sharing pool; such a pool is frequently

referred to as a self-insurance pool. The trust consists of approximately ninety school districts and
covers risks of loss arising from injuries to the school district's employees. The Mississippi Workers'
Compensation Commission requires that an indemnity agreement be executed by each member in a
workers' compensation self-insurance pool for the purpose of jointly and severally binding the pool
and each of the employers comprising the group to meet the workers' compensation obligations of
each member. Each member of MSBAWCT contributes quarterly to a fund held in trust by
Trustmark National Bank in Jackson. The funds in the trust account are used to pay any claim up to
$250,000. For a claim exceeding $250,000, MSBAWCT has insurance which will pay the excess up
to $1,000,000. If total claims during a year were to deplete the trust account, then the member school
districts would be required to pay for the deficiencies. The district has not had an additional
assessment for excess losses incurred by the pool.
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SUNFLOWER COUNTY SCHOOL DISTRICT
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SUNFLOWER COUNTY SCHOOL DISTRICT
SUPPLEMENTAL INFORMATION
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SUNFLOWER COUNTY SCHOOL DISTRICT
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 1997
Federal Grantor/ Catalog of
Pass-through Grantor/ Federal Domestic Federal
Program Title Assistance Number Expenditures
U.S. Department of Agriculture
Passed-through Mississippi Department of Education:
Non-cash assistance:
Food distribution 10.550 $ 53,318
Nutrition cluster:
School breakfast program 10.553 248,368

National school lunch program 10.555 651,041
Total U.S. Department of Agriculture 952,727

U.S. Department of Education
Passed-through Mississippi Department of Rehabilitation Services:
Rehabilitation services - vocational rehabilitation grants to states 84.126 2,511
Total 2,511
Passed-through Mississippi Department of Education:
Title I grants to local education agencies 84.010 1,160,101
Special education - grants to states 84.027 95,616
Eisenhower mathematics and science education - state grants 84.164 14,605
Safe and drug-free schools - state grants 84.186 11,885
State program improvement grants 84.218 16,494
Innovative education program strategies 84.298 7,880
Total 1,306,581
Total U.S. Department of Education 1,309,092
Total for All Federal Awards $ 2,261,819
NOTES TO SCHEDULE
1. This schedule was prepared using the same basis of accounting and the same significant accounting policies, as applicable,
used for the general purpose financial statements.
2. The expenditure amounts include transfers out.
3. The pass-through entities do not assign identifying numbers to the school district.
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