FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 _part1 doc

Notes to Financial Statements For the Year Ended June 30, 1995 18 6 Defined Benefit Pension Plan.. The school has no liability for losses under the plan, but the Board of Trustees of the

Notes to Financial Statements For the Year Ended June 30, 1995 (3) Interfund Assets/Liabilities

The following is a summary of due from/to other funds:

General Fund

Special Revenue Funds

(4) General Fixed Assets

The following is a summary of changes in general fixed assets:

Commitments under construction contracts at June 30, 1995, are summarized as

follows:

Required

Commitment Financing

(5) General Long-term Debt

The following is a summary of changes in general long-term debt:

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

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(6) Defined Benefit Pension Plan

Plan Description The school 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 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's

contributions to PERS for the fiscal years ending June 30, 1995, 1994 and 1993 were $113,073,

$110,062 and $103,730, respectively, which equaled the required contributions for each year

(7) Deferred Compensation Plan

The school, through the Mississippi Public Employees' Retirement System (PERS), offers its

employees a deferred compensation plan created in accordance with Internal Revenue Code Section

457 The plan, available to all school employees, permits them to defer a portion of their salary until future years The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency

All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the school (without being restricted to the provisions of benefits under the plan), subject only to the claims of the school's general creditors Participants' rights under the plan are equal to those of general creditors of the school in an amount equal to the fair market value of the deferred account for each participant

As of June 30, 1995, assets held for participants employed by the school and reported in an Agency Fund totaled $53,582 The school believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future The school has no liability for losses under the plan, but the Board of Trustees of the Mississippi Public Employees' Retirement System, as plan administrator, does have the duty of due care that would be required of an ordinary prudent investor

(8) Other Commitments

Commitments under construction contracts are described in Note 4

(9) Prior Period Adjustment

Reclassify fund equity - An adjustment to correct a prior year error in recording an asset or liability

Notes to Financial Statements For the Year Ended June 30, 1995 (10) Risk Management

The school 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 The school 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

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SUPPLEMENTAL INFORMATION

For the Year Ended June 30, 1995

U.S Department of Agriculture

Passed-through State Department of Education:

U.S Department of Education

Passed-through State Department of Education:

NOTE: The revenue and expenditure amounts include transfers in (out).

This is trial version www.adultpdf.com

INTERNAL CONTROL STRUCTURE REPORTS

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STEVEN A PATTERSON

AUDITOR

INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL STRUCTURE

BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

August 9, 1996

Superintendent and School Board

Forrest County Agricultural High School

We have audited the general purpose financial statements of the Forrest County Agricultural High School as of and for the year ended June 30, 1995, and have issued our report thereon dated August 9, 1996 Our report differed from the standard report because of a scope limitation due to inadequate general fixed assets subsidiary records for the buildings and other equipment classifications

Except for the scope limitation referred to above, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement

The management of the Forrest County Agricultural High School is responsible for establishing and maintaining an internal control structure In fulfilling this responsibility, estimates and judgments by

management are required to assess the expected benefits and related costs of internal control structure policies and procedures The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate

In planning and performing our audit of the general purpose financial statements of the Forrest County Agricultural High School for the year ended June 30, 1995, we obtained an understanding of the internal control structure With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure Accordingly, we do not express such

be reportable conditions under standards established by the American Institute of Certified Public Accountants Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize and report financial data consistent with the assertions of management in the general purpose financial statements The reportable conditions noted during our consideration of the internal control structure are described in the accompanying "Schedule of Auditor's Findings and Recommendations."

A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities

in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their

assigned functions

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above

However, we believe none of the reportable conditions referred to above is a material weakness The prior year report did not contain any reportable conditions

This report is intended for the information of the school board, management, and the appropriate grantor agencies However, this report is a matter of public record and its distribution is not limited

WILLIAM S JONES, CPA Director, Department of Audit