7
ALCORN COUNTY Exhibit B
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
All Governmental Fund Types
For the Year Ended September 30, 1996
Totals
Governmental Memorandum
Fund Types Only
Special Debt Capital Primary
General Revenue Service Projects Government
Revenues
Property taxes $ 2,109,747 1,381,498 861,327 4,352,572
Licenses, commissions and
other revenue 265,166 369,767 634,933
Fines and forfeitures 155,982 155,982
Intergovernmental revenues:
Federal sources 369,593 369,593
State and local sources 909,424 791,656 1,701,080
Charges for services 169,628 1,534,082 1,703,710
Use of money and property 83,662 71,271 7,604 1,114 163,651
Miscellaneous revenues 17,051 8,306 25,357
Total Revenues 3,710,660 4,526,173 868,931 1,114 9,106,878
Expenditures
Current:
General government 2,159,461 310,231 2,469,692
Public safety 979,586 282,167 1,261,753
Public works 353 3,856,614 3,856,967
Health & welfare 334,489 334,489
Culture & recreation 89,715 177,172 266,887
Conservation of natural resources 40,106 39,048 79,154
Economic development & assistance 1,226 189,014 190,240

Capital projects 313,768 212,496 526,264
Debt service:
Principal retirement 42,561 257,607 757,451 1,057,619
Interest and fiscal charges 5,899 30,195 122,100 158,194
Total Expenditures 3,653,396 5,455,816 879,551 212,496 10,201,259
Excess of Revenues over
(under) Expenditures 57,264 (929,643) (10,620) (211,382) (1,094,381)
Other Financing Sources (Uses)
Proceeds of general obligation bonds 295,000 295,000
Proceeds of other debt 96,777 471,521 568,298
Proceeds from sale of assets 23,025 23,025
Insurance recoveries 8,317 8,317
Operating transfers in 2,589 54,529 57,118
Operating transfers out (57,118) (57,118)
Total Other Financing
Sources (Uses) 39,659 800,452 0 54,529 894,640
Excess of Revenues and Other
Sources over (under)
Expenditures and Other Uses 96,923 (129,191) (10,620) (156,853) (199,741)
Fund Balances
Beginning of year 273,493 1,337,243 57,445 156,882 1,825,063
Residual equity transfers (33,794) 33,794
End of year $ 370,416 1,174,258 80,619 29 1,625,322
The notes to the financial statements are an integral part of this statement.
8
ALCORN COUNTY
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget (Non-GAAP Budgetary Basis) and Actual - All Governmental Fund Types
For the Year Ended September 30, l996
General Special

Fund Revenue Funds
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Property taxes $ 2,096,910 2,099,545 2,635 1,382,314 1,380,465 (1,849)
Licenses, commissions and 260,889 260,889 379,320 368,655 (10,665)
other revenue
Fines and forfeitures 155,982 155,982
Intergovernmental revenues:
Federal sources 207,271 477,120 269,849
State and local sources 933,931 909,424 (24,507) 1,039,826 767,156 (272,670)
Charges for services 169,628 169,628 1,526,288 1,534,082 7,794
Use of money and property 83,865 83,865 70,058 71,271 1,213
Miscellaneous revenues 17,885 17,051 (834) 52,232 8,306 (43,926)
Total Revenues 3,719,090 3,696,384 (22,706) 4,657,309 4,607,055 (50,254)
Expenditures
General government 1,889,873 1,956,482 (66,609) 275,495 305,372 (29,877)
Public safety 1,014,506 965,704 48,802 436,145 417,531 18,614
Public works 4,073,815 3,548,615 525,200
Health and welfare 310,757 326,312 (15,555)
Culture and recreation 121,000 83,911 37,089 216,423 169,895 46,528
Conservation of natural resources 81,328 36,095 45,233 309,401 39,048 270,353
Economic development and assistance 18,000 18,000 226,529 226,529
Capital projects 210,565 259,919 (49,354)
Debt service 48,460 (48,460) 287,802 (287,802)
Total Expenditures 3,435,464 3,416,964 18,500 5,748,373 5,254,711 493,662
Excess of Revenues over (under)
Expenditures 283,626 279,420 (4,206) (1,091,064) (647,656) 443,408
Other Financing Sources (Uses) (404,853) (75,861) 328,992 1,039,518 562,351 (477,167)

Excess of Revenues and Other
Sources over (under) Expenditures
and Other Uses (121,227) 203,559 324,786 (51,546) (85,305) (33,759)
Fund Balances
Beginning of year 740,514 419,181 1,420,046 1,446,852
End of year $ 619,287 622,740 1,368,500 1,361,547
The notes to the financial statements are an integral part of this statement.
9
Exhibit C
Debt Capital
Service Funds Projects Funds
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
852,274 852,274
7,604 7,604 1,114 1,114
859,878 859,878 0 1,114 1,114 0
212,496 212,496
879,551 879,551
879,551 879,551 0 212,496 212,496 0
(19,673) (19,673) 0 (211,382) (211,382) 0
(10,926) 22,868 33,794 54,529 54,529 0
(30,599) 3,195 33,794 (156,853) (156,853) 0
124,665 90,870 156,882 156,882
94,066 94,065 29 29
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
10
(1) Significant Accounting Policies.

A. Financial Reporting Entity.
Alcorn County is a political subdivision of the State of Mississippi. The county is governed by an elected
five-member Board of Supervisors. Generally accepted accounting principles require Alcorn County to
present these financial statements on the primary government and its component units which have
significant operational or financial relationships with the county.
Management has chosen to omit from these financial statements the following component unit which has
a significant operational or financial relationship with the county. Accordingly, the financial statements
do not include the data of this component unit necessary for reporting in conformity with generally
accepted accounting principles.
Alcorn County Human Resource Agency
State law pertaining to county government provides for the independent election of county officials. The
following officials are all part of the county legal entity and therefore are reported as part of the primary
government financial statements.
Board of Supervisors
Chancery Clerk
Circuit Clerk
Justice Court Clerk
Purchase Clerk
Tax Assessor-Collector
Sheriff
B. Basis of Presentation.
The accompanying financial statements of the primary government have been prepared in conformity with
generally accepted accounting principles as prescribed by the Governmental Accounting Standards
Board. However, the primary government financial statements, because they do not include the financial
data of the county's component units, do not present fairly, in all material respects, the financial position
and results of operations for the entire reporting entity.
C. Account Classifications.
The account classifications used in the financial statements conform to the broad classifications
recommended in Governmental Accounting, Auditing and Financial Reporting as issued in 1994 by the
Government Finance Officers Association and the Mississippi County Financial Accounting Manual as

revised in 1993 by the Office of the State Auditor.
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
11
D. Fund Accounting.
The financial activities of the county are recorded in individual funds and account groups used to report
financial position and results of operations. Fund accounting is used to demonstrate legal compliance and
to aid financial management by segregating transactions relating to certain government functions or
activities. A fund is a separate accounting entity with a self-balancing set of accounts, segregated for the
purpose of carrying on specific activities or attaining certain objectives in accordance with specific
regulations, restrictions or limitations. An account group is a financial reporting device designated to
provide accountability for certain assets and liabilities that are not recorded in funds because they do not
directly affect net expendable available financial resources. The following fund categories, which are
further subdivided into separate "fund types", are utilized by the county:
GOVERNMENTAL FUND TYPES
General Fund - This fund is used to account for all activities of the general government for which a
separate fund has not been established.
Special Revenue Funds - These funds are used to account for the proceeds of specific revenue sources
(other than for major capital projects) that are legally restricted to expenditures for specified purposes.
Special Revenue Funds account for, among others, certain federal grant programs, taxes levied with
statutorily defined distributions and other resources restricted as to purpose.
Debt Service Funds - These funds are used to account for the accumulation of resources for, and the
payment of, general long-term debt principal, interest and related costs.
Capital Projects - These funds are used to account for financial resources to be used for the acquisition or
construction of major capital facilities. Such resources are derived principally from proceeds of general
obligation bond issues and federal grants.
FIDUCIARY FUND TYPE
Agency Funds - These funds account for various taxes, deposits and other monies collected or held by the
county, acting in the capacity of an agent, for distribution to other governmental units or designated

beneficiaries.
ACCOUNT GROUPS - The General Fixed Assets Account Group is used to account for general fixed
assets. The General Long-term Debt Account Group is used to account for general long-term debt and
certain other liabilities.
E. Basis of Accounting/Measurement Focus.
Governmental Fund Types and Agency Funds - All Governmental Funds are accounted for using a current
financial resources measurement focus. With this measurement focus, only current assets and current
liabilities are generally included on the balance sheet. Operating statements of these funds present
increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing
uses) in net current assets.
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
12
The modified accrual basis of accounting is used by all Governmental Fund Types and Agency Funds.
Under this method, revenues are recognized in the accounting period in which they become both available
and measurable to finance operations during the year or to liquidate liabilities existing at the end of the
year. Available means collected in the current year or soon enough after year end to liquidate liabilities
existing at the end of the year. Expenditures are recognized in the accounting period in which the fund
liability is incurred. Modifications to the accrual basis of accounting include:
Licenses, fees, fines and forfeits and other miscellaneous revenues are recognized when received
since they normally are only measurable at that time.
Property taxes are recognized as revenue when received because the remaining delinquent
property taxes not collected before the close of the fiscal year are considered immaterial. See
Note 1L for further explanation.
Principal and interest on general long-term debt are recognized when due.
F. Budgetary Process and Accounting.
Process:
Statutory requirements dictate how and when the county's budget is to be prepared. Generally, in the
month of August, prior to the ensuing fiscal year beginning each October 1, the Board of Supervisors of

the county, using historical and anticipated fiscal data and proposed budgets submitted by the Sheriff and
the Tax Assessor-Collector for his or her respective department, prepares an original budget for each of
the Governmental Funds for said fiscal year. The completed budget for the fiscal year includes for each
fund every source of revenue, each general item of expenditure and the unencumbered cash and
investment balances. When during the fiscal year it appears to the Board of Supervisors that budgetary
estimates will not be met, it may make revisions to the budget.
Accounting:
The county's budget is prepared principally on the cash basis of accounting. All appropriations lapse at
year end and there are no encumbrances to budget because state law does not require that funds be
available when goods or services are ordered, only when payment is made.
G. Cash and Investments.
State law authorizes the county to invest in interest bearing time certificates of deposit for periods of
fourteen days to one year with depositories and in obligations of the U.S. Treasury, State of Mississippi, or
any county, municipality or school district of this state. Further, the county may invest in certain
repurchase agreements that have a term of less than fourteen days.
Cash includes cash on hand, demand deposits, all certificates of deposit and cash equivalents, which are
short-term highly liquid investments that are readily convertible to cash (generally three months or less).
Investments in governmental securities are stated at cost or amortized cost. However, the county did not
invest in any governmental securities during the fiscal year.
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
13
H. Receivables.
Receivables are reported net of allowances for uncollectible accounts, where applicable.
I. Interfund Receivables/Payables.
Transactions between funds that are representative of short-term lending/borrowing arrangements, and
transactions that have not resulted in the actual transfer of cash at the end of the fiscal year are referred to
as "interfund receivables/payables."
J. Fixed Assets.

Fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition
and construction are reflected as expenditures in Governmental Funds and the related assets are reported
in the General Fixed Assets Account Group. All purchased fixed assets are stated at cost where historical
records are available and at an estimated historical cost where no historical records exist. Donated assets
are valued at market value at the time of donation. The costs of normal maintenance and repairs that do
not add to the value of assets or materially extend their respective lives are not capitalized; however,
improvements are capitalized. Interest expenditures are not capitalized on general fixed assets. Public
domain (infrastructure) fixed assets consisting of certain improvements other than buildings, such as
roads, bridges, sidewalks, drainage systems, lighting systems and similar assets that are immovable and of
value only to the county, are not capitalized. Depreciation is not provided on general fixed assets.
K. Fund Equity.
Unreserved fund balance represents the amount available for budgeting future operations. Reservations of
fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose.
L. Property Tax Revenues.
Numerous statutes exist under which the Board of Supervisors may levy property taxes. The selection of
authorities is made based on the objectives and responsibilities of the county. Restrictions associated with
property tax levies vary with the statutory authority. The amount of increase in certain property taxes is
limited by state law. Generally, this restriction provides that these tax levies shall produce no more than
110% of the amount which resulted from the assessments of the previous year.
The Board of Supervisors, each year at a meeting in September, levies property taxes for the ensuing fiscal
year which begins on October 1. Real property taxes become a lien on January 1 of the current year and
personal property taxes become a lien on March 1 of the current year. Taxes on both real and personal
property, however, are due on or before February 1 of the next succeeding year. Taxes on motor vehicles
and mobile homes become a lien and are due in the month that coincides with the month of original
purchase.
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
14
Generally accepted accounting principles require property taxes to be recognized at the levy date if

measurable and available. All property taxes are recognized as revenue when received. Real property
taxes are recognized as revenue when received because most delinquent real property taxes are collected
by selling real property for taxes, together with all fees, penalties and damages accruing until date of sale,
before the close of the fiscal year. The remaining amount of real property not sold for taxes at the tax sale
is considered immaterial; therefore, no end of year delinquent taxes receivable is recorded. The amount of
delinquent personal property taxes unpaid at year end is also considered immaterial. Motor vehicle and
mobile home taxes do not meet the measurability and collectibility criteria for property tax recognition
because the lien and due date cannot be established until the date of original purchase occurs.
M. Intergovernmental Revenues in Governmental Funds.
Intergovernmental revenues, consisting of grants, entitlements and shared revenues, are usually recorded
in Governmental Funds when measurable and available. However, the "available" criterion applies for
certain federal grants and shared revenues when the expenditure is made because expenditure is the prime
factor for determining eligibility. Similarly, if cost sharing or matching requirements exist, revenue
recognition depends on compliance with these requirements.
N. Total Column on Primary Government Financial Statements.
The total column on the primary government financial statements is captioned "Memorandum Only" to
indicate that it is presented only to facilitate financial analysis. Data in this column does not present
financial position and results of operations in conformity with generally accepted accounting principles.
Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
(2) Budgetary Basis vs. GAAP.
The accompanying Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget
(Non-GAAP Budgetary Basis) and Actual - All Governmental Fund Types presents comparisons of the legally
adopted budget with actual data on a budgetary basis. Since the budgetary and GAAP presentations of actual data
differ, a reconciliation of the results of operations for the year follows:
Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Budget (Cash Basis) $ 203,559 (85,305) 3,195 (156,853)

Increase (Decrease)
Net adjustment for revenue accruals (36,012) (87,113) 10,926
Net adjustment for expenditure accruals (70,624) 9,433 9,053
Other reconciling items:
Residual equity transfers 33,794 (33,794)
GAAP Basis $ 96,923 (129,191) (10,620) (156,853)
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
15
(3) Deposits.
The carrying amount of the county's total deposits with financial institutions at September 30, 1996, was
$2,280,703 and the bank balance was $2,353,605. The bank balance is categorized below to reflect the level of
credit risk assumed by the county at year end.
Bank
Balance
Amount federally insured. $ 200,000
Amount collateralized with securities held by the pledging
financial institution's agent in the county's name. 2,153,605
Total Bank Balance $ 2,353,605
(4) Deferred Compensation Plan.
The county offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
Section 457. The plan, available to all employees of the county, permits participants to defer a portion of their
salary until future years, thereby deferring taxation on the portion deferred. The deferred compensation is not
available to employees until they are separated from service or face an unforeseeable financial emergency.
All amounts of compensation deferred under the plan, all property 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 his
beneficiary) solely the property of the employer (without being restricted to the provisions of benefits under the
plan), subject only to the claims of the employer's general creditors. Participants' rights under the plan are equal to
those of the employer's general creditors in an amount equal to the fair market value of the deferred account for

each participant.
At June 30, 1996, assets held for participants employed by the county and reported in an Agency Fund totaled
$25,482. The county believes that it is unlikely that it will use the assets to satisfy the claims of general creditors
in the future. The county has no liability for losses under the plan, but the Board of Trustees of the Public
Employees' Retirement System, as plan administrator, does have the duty of due care that would be required of an
ordinary prudent investor.
(5) Interfund Receivables and Payables.
The composition of interfund balances at September 30, 1996, consists of the following:
Receivable Fund Payable Fund Amount
Recreational commission General Fund $ 3,114
The Alliance General Fund 4,152
Sanitary landfill General Fund 3,761
Sanitary landfill Countywide road construction 29,203
Volunteer fire General Fund 679
Reappraisal General Fund 1,889
District 1 road maintenance General Fund 7,199
ALCORN COUNTY
Notes to Financial Statements
For the Year Ended September 30, 1996
16
Receivable Fund Payable Fund Amount
District 2 road maintenance General Fund 7,199
District 3 road maintenance General Fund 7,199
District 4 road maintenance General Fund 7,199
District 5 road maintenance General Fund 7,199
District 1 bridge & culvert General Fund 892
District 2 bridge & culvert General Fund 892
District 3 bridge & culvert General Fund 892
District 4 bridge & culvert General Fund 892
District 5 bridge & culvert General Fund 892

Airport general obligation bond General Fund 1,868
Countywide road construction General Fund 8,718
Solid waste transfer station General Fund 1,245
Human services note General Fund 3,926
Northeast Community College Maintenance General Fund 2,824
Northeast Community College enlargement General Fund 2,927
Northeast Community College Vo-tech General Fund 477
Tombigbee River Valley Water Management District General Fund 1,225
Total $ 106,463
(6) Fixed Assets.
Changes in the General Fixed Assets Account Group at September 30, 1996, are as follows:
Balance Balance
Oct. 1, 1995 Additions Deletions Sept. 30, 1996
Governmental Funds:
Land $ 652,762 46,500 699,262
Buildings 3,251,786 704,000 3,955,786
Improvements other than buildings 2,750 2,750
Construction in progress 446,405 219,419 446,405 219,419
Mobile equipment 587,945 348,573 75,250 861,268
Other furniture and equipment 421,038 108,902 56,652 473,288
Leased property under capital leases 1,419,367 328,254 377,555 1,370,066
Total $ 6,779,303 1,758,398 955,862 7,581,839
(7) Commitment.
As of September 30, 1996, the county had the following commitment with respect to an unfinished capital project:
Remaining
Description of Financial Expected Date
Commitment Commitment of Completion
Juvenile detention center $ 380,581 December 1, 1997