FORREST COUNTY AGRICULTURAL HIGH SCHOOL TABLE OF CONTENTS FINANCIAL AUDIT _part2 potx

Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -All Governmental Fund Types and Expendable Trust Funds For the Year Ended June 30, 1995 Fiduciary Revenues Ex

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Fund Equity:

Fund balances

Reserved for:

Unreserved:

The notes to the financial statements are an integral part of this statement.

This is trial version www.adultpdf.com

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Combined Statement of Revenues, Expenditures, and Changes in Fund Balances

-All Governmental Fund Types and Expendable Trust Funds

For the Year Ended June 30, 1995

Fiduciary

Revenues

Expenditures

Support services:

Excess of Revenues Over

Other Financing Sources (Uses)

Total Other Financing

Excess of Revenues and Other

Sources Over Expenditures

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Fund Balances

Prior period adjustment:

(Decrease) in reserve

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FORREST COUNTY AGRICULTURAL HIGH SCHOOL

Combined Statement of Revenues, Expenditures, and Changes in Fund Balances

-Budget and Actual

All Governmental Fund Types

For the Year Ended June 30, 1995

Revenues

Expenditures

Support services:

Operation and maintenance

Facilities acquisition and

Excess of Revenues Over

Total Other Financing

Excess of Revenues and

Other Sources Over

Expenditures and

Fund Balances

Prior period adjustment:

(Decrease) in

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Exhibit C

Capital Projects Funds

Variance Favorable

(13,067)

42,090

0

42,090

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Notes to Financial Statements For the Year Ended June 30, 1995

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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's governing board As defined by generally accepted accounting principles, the school is considered a component unit of Forrest County since the governing authorities of the county are solely responsible for issuing school debt

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 by providing a combined overview of financial position and results of operations of the school 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 school 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 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 School 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 school 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

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FIDUCIARY FUNDS

Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the school in a trustee capacity or as an agent for individuals, private organizations and/or other funds These include Expendable Trust and Agency Funds Expendable Trust Funds are accounted for in essentially the same manner as governmental funds 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 No depreciation has been provided on the general fixed assets

The long-term liabilities incurred by the school 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 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 basis of accounting 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

Fiduciary fund revenues and expenditures are recognized on the basis consistent with the fund's accounting measurement objective 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

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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

The school 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

J Investments

The school is allowed, by statute, to invest excess 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)

For accounting purposes, certificates of deposit and interest-bearing accounts are classified as cash and other deposits

K Inventories and Prepaid Items

Inventories in the General and Special Revenue Funds consist of cattle, purchased inventories

of food and donated inventories of donated commodities The cattle are valued at fair market value Donated commodities are received from the USDA and are valued at USDA cost Purchased 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

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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 school:

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 scholarships - An account that represents the fund balance which is legally restricted for scholarships

Reserved for capital improvements - An account that represents the portion of the fund balance that is legally restricted for capital improvements

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

N Property Taxes

Ad valorem property taxes are levied by the governing authorities of the county on behalf of the school based upon an order adopted by the school board of the school requesting an

ad valorem tax effort in dollars Since the taxes are not levied and collected by the school, 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

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P Compensated Absences

Employees of the school accumulate sick leave at a minimum amount as required by state law

or at a greater amount provided by school policy Some employees are allowed personal leave and/or vacation leave The school pays for unused leave for certificated employees as required

to do so by Section 37-7-307(5), Miss Code Ann (1972) Payment for unused leave for other employees is made in accordance with school policy

(2) Cash, Other Deposits, and Investments

Cash and Other Deposits

The carrying amount of the school's deposits with financial institutions was $777,919, and the bank balance was $880,771 The bank balance is categorized as follows:

Amount insured or collateralized with securities held by the school

district or its agent in the school's name $ 237,776 Amount collateralized with securities held by the pledging financial

institution's trust department or agent in the school's name 642,995 Total Bank Balance $ 880,771

The uninsured bank balance at June 30, 1995, was $642,995 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, 1995, was collateralized in an amount equal to or greater than the legally required amount Investments

Investments made by the school that are included on the balance sheet are summarized below:

Carrying Market Amount Value Investments in deferred compensation plan assets $ 53,582 53,582 Total Investments $ 53,582 53,582

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