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Shad White State Auditor JACKSON COUNTY, MISSISSIPPI Audited Financial Statements and Special Reports For the Year Ended September 30, 2019 SHAD WHITE STATE AUDITOR Stephanie C. Palmertree, CPA Director, Financial and Compliance Audit Division Joe E. McKnight, CPA Director, County Audit Section A Report from the County Audit Section www.osa.state.ms.us The Office of the State Auditor does not discriminate on the basis of race, religion, national origin, sex, age or disability. STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR Shad White AUDITOR September 3, 2020 Members of the Board of Supervisors Jackson County, Mississippi Dear Board Members: I am pleased to submit to you the 2019 financial and compliance audit report for Jackson County. This audit was performed pursuant to Section 7-7-211(e), Mississippi Code Ann. (1972). The audit was performed in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. I appreciate the cooperation and courtesy extended by the officials and employees of Jackson County throughout the audit. Thank you for working to move Mississippi forward by serving as a supervisor for Jackson County. If I or this office can be of any further assistance, please contact me or Joe McKnight of my staff at (601) 576-2674. Respectfully submitted, Shad White POST OFFICE BOX 956 • JACKSON, MISSISSIPPI 39205 • (601) 576-2800 • FAX (601) 576-2650 www.osa.ms.gov JACKSON COUNTY TABLE OF CONTENTS FINANCIAL SECTION .............................................................................................................................................................. 1 INDEPENDENT AUDITOR'S REPORT .................................................................................................................................... 3 FINANCIAL STATEMENTS ..................................................................................................................................................... 7 Statement of Net Position ..................................................................................................................................................... 9 Statement of Activities ....................................................................................................................................................... 11 Balance Sheet - Governmental Funds ................................................................................................................................. 13 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................... 14 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ......................................... 15 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................................... 16 Statement of Net Position - Proprietary Funds ................................................................................................................... 18 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds ........................................................ 19 Statement of Cash Flows - Proprietary Funds .................................................................................................................... 20 Statement of Fiduciary Assets and Liabilities .................................................................................................................... 21 Component Units – Combining Statement of Net Position ................................................................................................ 22 Component Units – Combining Statement of Revenues, Expenses and Changes in Net Position ..................................... 24 Notes to Financial Statements ............................................................................................................................................ 27 REQUIRED SUPPLEMENTARY INFORMATION ............................................................................................................... 69 Budgetary Comparison Schedule – Budget and Actual (Non-GAAP Basis) – General Fund ............................................ 71 Budgetary Comparison Schedule – Budget and Actual (Non-GAAP Basis) – Road Fund ................................................ 72 Schedule of the County’s Proportionate Share of the Net Pension Liability ...................................................................... 73 Schedule of County Contributions ...................................................................................................................................... 74 Schedule of Singing River Mental Health/Mental Retardation Services’ Proportionate Share of the Net Pension Liability ............................................................................................................................... 75 Schedule of Singing River Mental Health/Mental Retardation Services’ Contributions .................................................... 76 Schedule of West Jackson County Utility District’s Proportionate Share of the Net Pension Liability ............................. 77 Schedule of West Jackson County Utility District’s Contributions .................................................................................... 78 Schedule of Jackson County Emergency Communications District’s Proportionate Share of the Net Pension Liability ............................................................................................................................... 79 Schedule of Jackson County Emergency Communications District’s Contributions ......................................................... 80 Schedule of Jackson County Port Authority’s Proportionate Share of the Net Pension Liability ...................................... 81 Schedule of Jackson County Port Authority’s Contributions ............................................................................................. 82 Schedule of Jackson-George Regional Library System’s Proportionate Share of the Net Pension Liability ................................................................................................................................................... 83 Schedule of Jackson-George Regional Library System’s Contributions ............................................................................ 84 Schedule of Changes in the County's Total OPEB Liability and Related Ratios ............................................................... 85 Schedule of Jackson-George Regional Library System’s Proportionate Share of OPEB Liability .................................... 86 Schedule of Jackson-George Regional Library System’s Contributions – OPEB .............................................................. 87 Notes to the Required Supplementary Information ............................................................................................................ 89 OTHER INFORMATION ......................................................................................................................................................... 95 Schedule of Surety Bonds for County Officials ................................................................................................................. 97 SPECIAL REPORTS ............................................................................................................................................................... 101 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards .................................................................................................................................................... 103 Independent Accountant's Report on Central Purchasing System, Inventory Control System and Purchase Clerk Schedules (Required By Section 31-7-115, Miss. Code Ann. (1972)) ...................................... 105 Limited Internal Control and Compliance Review Management Report ......................................................................... 111 SCHEDULE OF FINDINGS AND RESPONSES .................................................................................................................. 115 JACKSON COUNTY FINANCIAL SECTION 1 JACKSON COUNTY (This page left blank intentionally.) 2 STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR SHAD WHITE AUDITOR INDEPENDENT AUDITOR'S REPORT Members of the Board of Supervisors Jackson County, Mississippi Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Jackson County, Mississippi, (the County) as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in
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