Audit - 2006/2007
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SALINA-SALINE COUNTY BOARD OF HEALTH
~alina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
. December 31,2007 and 2006
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALlNA,KANSAS
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
TABLE OF CONTENTS
Paae
Exhibit I
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
BALANCE SHEETS
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
STATEMENTS OF CASH FLOWS
NOTES TO FINANCIAL STATEMENTS
1-2
3
4
Exhibit II
5
Exhibit III
6
7-10
SUPPLEMENTAL INFORMATION
Schedule 2
GRANTS FROM THE KANSAS STATE DEPARTMENT OF HEALTH
AND ENVIRONMENT
FEES FOR SERVICES
11
12
Schedule 1
SINGLE AUDIT SECTION
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CORRECTIVE ACTION PLAN
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
13-14
15-16
17
18
19
20
21
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL SECTION
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CLUBlNE&
RETTELE
CHARIERED
Certified Public Accountants
rr
Robert I. Clubine, C.P.A.
David A. Rettele, C.PA
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
Stacy J. Sokol, C.PA
Marci K. Fox, C.P.A.
John T. Millikin, C.P.A.
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
Salina Fax
785 / 825-2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
INDEPENDENT AUDITORS' REPORT
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas
We have audited the accompanying financial statements of Salina-Saline County Board of
Health, Salina, Kansas, as of and for the years ended December 31, 2007 and 2006 as
listed in the table of contents. These financial statements are the responsibility of the
Board of Health's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the
United States of America, the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States
and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and
Reports, Department of Administration of the State of Kansas. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinions.
As described in Note B(2), management has not included the capitalization and
depreciation of property and equipment, which should be included in order to conform with
accounting principles generally accepted in the United States of America. The amount that
should be capitalized and depreciated is not reasonably determined.
In our opinion, except for the effect on the financial statements of the omission described in
the preceding paragraph, the financial statements referred to above present fairly, in all
material respects, the financial position of the Salina-Saline County Board of Health at
December 31, 2007 and 2006, and changes in financial position and cash flows for the
years then ended in conformity with accounting principles generally accepted in the United
States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
August 5, 2008 on our consideration of Salina-Saline County Board of Health's internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements and other matters. The purpose of the
report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
The management's discussion and analysis on page 3 is not a required part of the basic
financial statements but are supplementary information required by accounting principles
generally accepted in the Untied State of America. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we
did not audit the information and express no opinion on it.
Our audits were conducted for the purpose of forming opinions on the basic financial
statements taken as a whole. The supplemental information on pages 11 and 12 is
presented for purposes of additional analysis and is not a required part of the basic
(1)
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financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements of Salina-
Saline County Board of Health. The supplemental information and the schedule of expenditures of federal awards
have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Respectfully submitted,
~oJ~
CLUBINE AND RETTELE, CHARTERED
August 5, 2008
(2)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
MANAGEMENT'S DISCUSSION AND ANALYSIS
The management of the Salina-Saline County Board of Health provides readers of the Board of Health's financial
statements an overview and analysis of the Salina-Saline County Board of Health's financial activities for the year
ended December 31, 2007. Please read it in conjunction with the Board's financial statements which begin on page 4.
Financial Hiahlights
1. Interest income remained healthy in 2007.
2. State and federal grant income due for our calendar year did not come in as we expected. The State fiscal year is
July 1, to June 30. Federal fiscal year is October 1 to September 30.
3. There was an increase in the Women Infant Children (WIG) federal grant reimbursement from 2006 to 2007. This
portion is a pass through reimbursement to the counties in our regional WlC group.
4. In 2007, we moved all immunization revenue including all adult and flu immunizations from the nursing clinic
category to the immunization fee category. Prior to 2007, only children's immunization revenue was included in that
category .
Exoenses
1. Under professional services, the increase from 2006 to 2007 is the WlC pass through amount to the counties.
2. In 2007, we eliminated the veterinary medical service line and included it in the professional services line.
Condensed Financial Information
2007 2006
Total Assets $ 1,732,516 $ 1,284,905
Total Liabilities 453,162 466,424
Total Fund Equity 1 ,254,115 792,041
Revenues
Appropriations $ 1,686,249 $ 1,547,196
Grants 916,723 924,239
Fees for services 1,089,585 926,084
Interest income 33,872 29,571
Miscellaneous 351,526 341,372
Total Revenues 4,077,955 3,768,462
Expenses
Personal services 2,920,750 2,672,913
Contractual services 250,932 205,114
Expendable supplies 444,199 422,890
Total Expenses 3,615,881 3,300,917
Excess of Revenue over Expenses 462,074 467,545
Ending Fund Equity $ 1 ,254,115 $ 792,041
F utu re
1. A new contract for copier/fax machines is approved for 2008. The amount is more than the budgeted expenses for
2008 under service contracUequipment lease.
2. Mileage expense is anticipated to be considerably higher in 2008 as compared to 2007.
3. A new storage unit at the animal shelter will show an additional unbudgeted expense. The expense is being paid
from animal shelter donation dollars.
(3)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit I
BALANCE SHEETS
ASSETS
Cash
Accounts receivable
State of Kansas Department of Health and Environment (Note 5)
Medicare and Medicaid
Other care services
Saline County
December 31,
2007 2006
$ 1,105,044 $ 867,614
100,400 175,985
133,432 167,696
120,693 73,610
272,947
$ 1,732,516 $ 1,284,905
Totals
LIABILITIES AND FUND EQUITY
Liabilities
Vouchers payable
Accrued salaries
Accrued liability for compensated absences
Animal Shelter Reward fund payable
Total Liabilities
$ 68,984 $ 62,129
83,084 77,346
236,803 227,706
64,291 99,243
453,162 466,424
25,239 26,440
Deferred Income (Note 5)
Fund Equity
Unrestricted
Designated for Health Department
Designated for Animal Shelter
Total Fund Equity
675,401
116,640
792,041
1,125,238
128,877
1,254,115
Th~~ $
1,732,516 $
1,284,905
The accompanying notes are an integral part
of these financial statements.
(4)
I SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
I Exhibit II
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
FUND EQUITY - BUDGET AND ACTUAL
I For the Year Ended December 31,
2007 2006
Actual Budget Actual Budget
I Revenues
Appropriation from Saline County, Kansas (Note 4) $ 727,859 $ 727,859 $ 661,690 $ 661,690
Appropriation from City of Salina, Kansas (Note 4) 958,390 958,390 885,506 885,506
I Grants from the State Department of
Health and Environment 916,723 721,948 924,239 755,089
Fees for services 1,089,585 919,300 926,084 697,200
Interest income 33,872 5,000 29,571
I Miscellaneous revenues 351,526 150,000 341,372 222,899
Total Revenues 4,077,955 3,482,497 3,768,462 3,222,384
I Expenses
Personal Services
Salaries 2,095,270 2,137,807 1,992,583 1,980,384
Social security 147,444 162,003 139,884 148,202
I Retirement 97,914 100,493 85,119 84,748
Health insurance 284,779 292,302 243,052 272,616
Unemployment insurance 2,080 5,506 5,358 10,834
I Professional services 293,263 170,000 206,917 160,000
Contractual services
Auditing 7,700 8,000 7,550 8,000
Accounting 675 760 738 700
I Building and grounds - Remodeling and repair 16,942 13,500 10,866 2,000
Telephone 29,248 21,000 18,091 20,000
Mileage 66,398 70,000 61,406 70,000
I Service contracts and equipment lease 60,840 45,000 41,983 45,000
Insurance 69,129 89,400 64,480 85,000
Expendable supplies
Office supplies 34,118 29,500 32,081 30,000
I Postage and express 14,030 14,000 13,695 13,000
Books, dues and subscriptions 5,334 6,500 6,526 4,500
Equipment maintenance and repair 959 1,000 1,394 1,000
I Gasoline and oil 9,782 7,000 9,860 7,000
Clinical and medical supplies 157,878 120,000 144,384 120,000
Chemicals 6,738 4,000 7,527 4,000
Veterinary and medical services 23,002 25,000
I Animal supplies and donation fund expenses 51,113 14,400 19,482 3,000
Shelter refund 43,155 50,500 32,574 15,000
Professional meetings 21,421 27,000 28,368 18,000
I Utilities and water 57,766 54,400 54,970 54,400
Custodial services 7,641 5,000 3,538 5,000
Health education 27,658 26,000 39,953 26,000
Miscellaneous expense 708 1,426 5,536 1,000
I Capital equipment 5,898 6,000 8,000
Total Expenses 3,615,881 3,482,497 3,300,917 3,222,384
I Excess of Revenues. over Expenses 462,074 467,545
Fund Equity, January 1 792,041 385,130 324,496 385,130
Fund Equity, December 31 $ 1,254,115 $ 385,130 $ 792,041 $ 385,130
I The accompanying notes are an integral part
of these financial statements.
I (5)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit III
STATEMENTS OF CASH FLOWS
Cash Flows From Operating Activities
Saline County, Kansas
City of Salina, Kansas
Grants
Fees
Miscellaneous
Interest income
Cash paid to suppliers and others
Cash paid to employees for services
Net Cash Provided by Operating Activities
For the Year Ended
December 31,
2007 2006
454,912 $ 661,690
958,390 885,506
991,107 774,929
1,123,849 808,867
304,443 284,960
33,872 29,571
(1,548,708) (1,382,411)
(2,080,435) (1,965,945)
237,430 97,167
237,430 97,167
867,614 770,447
1,105,044 $ 867,614
$
Increase in Cash
Cash at Beginning of Year
Cash at End of Year
$
RECONCILIATION OF EXCESS OF REVENUES OVER EXPENSES
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Excess of Revenues over Expenses - Exhibit II
$
467,545
462,074 $
Adjustments to reconcile excess of revenues over
expenses to net cash provided by operating activities
Increase in accounts receivable
Increase (Decrease) in vouchers payable
Increase in accrued salaries
Increase in accrued compensated absences
Increase (Decrease) in Animal Shelter Reward fund payable
Decrease in deferred income
Total Adjustments
(210,181) (312,890)
6,855 (76,033)
5,738 2,156
9,097 24,482
(34,952) 1,956
(1,201) (10,049)
(224,644) (370,378)
$ 237,430 $ 97,167
Net Cash Provided by Operating Activities
The accompanying notes are an integral part
of these financial statements.
(6)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31,2007 and 2006
1. Summary of Significant Accounting Policies
A. Reporting Entity
The Salina-Saline County Board of Health was formed on June 28, 1955, under the Joint Resolution and
Agreement of the County of Saline and the City of Salina. The Board of Health is a joint venture organized for
the purpose of promoting the public health and sanitation of the county and city. The Governing Body of the
Board of Health is composed of eleven members, three appointed City Commiss ioners, three appointed
County Commissioners, and five members selected by the six appointed Commissioners.
(
Based on the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board, the
Board of Health is considered a joint venture between the County of Saline and the City of Salina due to
ongoing financial responsibility of those governments for the Board of Health.
B. Basis of Statement Presentation
The Board of Health maintains its accounting records in accordance with the principles of fund accounting in
order to ensure observance of limitations and restrictions placed on the use of resources available. The
significant accounting policies followed by the Board of Health are described below to enhance the usefulness
of the financial statements to the reader.
1) The accompanying financial statements have been prepared on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e.,
when they become both measurable and available). "Measurable" means the amount of the transaction
can be determined and "available" means collectible within the current period or soon enough thereafter to
be used to pay liabilities of the current period. Revenues from cost-reimbursement grants are recognized
in the period the expenditure is made. It is the Board of Health's policy to follow all Financial Accounting
Standards Board (FASB) standards issued after November 30, 1989.
Deferred revenues arise when grant monies are received prior to the incurrence of qualifying expenditures.
In subsequent periods, when both revenue recognition criteria are met, or when the Board of Health has a
legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and
revenue is recognized.
2) Accounting principles generally accepted in the United States of America require that property and
equipment be capitalized and depreciated. The accompanying financial statements do not conform with
U.S. generally accepted accounting principles in that property and equipment is not capitalized and
depreciated.
3) Individual accounts receivable are written off to bad debt expense in the period in which it is determined
that they are uncollectible. The Board of Health considers accounts receivable to be fully collectible;
accordingly, no allowance for doubtful accounts is required.
4) For purposes of the Statements of Cash Flows, cash equivalents include time deposits and all highly liquid
debt instruments with maturities of three months or less.
5) The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.
2. Budget
The Board of Health does not have tax levying powers and is not required to publish a budget. A budget is adopted
annually by the Governing Board for the purpose of determining appropriations to be requested from Saline County
and the City of Salina. The budget is prepared on the modified accrual basis of accounting.
(7)
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3. Deposits and Investments
Deposits - At December 31, 2007 and 2006, respectively, the carrying amount of the Board of Health's deposits
were $1,088,155 and $835,785, and the bank balances were $1,175,658 and $912,396. The differences are cash
on hand, outstanding checks and deposits. In accordance with Kansas statutes, collateral securities were held
under joint custody receipts issued by a third-party bank, which is independent of the depository financial institution,
to secure balances over $100,000. Deposit balances were fully secured by FDIC and joint custody receipts as of
December 31, 2007.
4. Appropriations from Taxing Authorities
Saline County and the City of Salina share the net operating costs of the Board of Health. Necessary funds are
included in the tax levies of the respective municipalities, and are summarized by the following schedule:
2007 2006
Saline County, Kansas
Regular tax appropriation $ 727,859 $ 661,690
City of Salina, Kansas
Regular tax appropriation $ 958,390 $ 885,506
5. Grants from the State of Kansas Department of Health and Environment
Agreements were in effect during 2007 and 2006 with the State of Kansas Department of Health and Environment
regarding certain grants which were funded by federal and state monies. Current agreements are for the state's
fiscal year ended June 30, 2008. Unless specifically noted, the grants are payable 25% on or about July 1, and
12.5% on or about October 1, November 15, January 1, February 15, April 1 , and May 15. Unexpended grant
amounts are periodically withheld from grant payments. If expenditures for these programs exceed the grant
award, the Board of Health is responsible for the excess. Descriptions of the grants follow:
Fed~ral Programs
Maternal and Child Health Program
Matching funds are provided to furnish comprehensive health care services for mothers and infants,
children and adolescents. The current agreement provides that the Board of Health will receive $74,626.
Family Planning Program
Matching funds are provided to establish and maintain family planning centers to furnish and disseminate
information concerning planned parenthood. The current agreement provides that the Board of Health will
receive $38,306.
Special Supplemental Food Program for Women, Infants, and Children
Reimbursements are provided for administrative costs of the Women, Infants and Children Supplemental
Food Program. The program provides nutritious foods for pregnant and nursing women, infants up to age
1 year, and children up to age 5 years. The current agreement provides that the Board of Health will be
reimbursed monthly for actual expenses up to $319,168, plus any reallocated federal funds that may
become available. This program is on an October 1 through September 30 year-end.
Outreach Clinic Services
Reimbursements are provided for coordination of Cardiac Outreach Clinics at Salina. The contract was not
renewed for the fiscal year beginning July 1, 2007 and ending June 30, 2008.
HIV Case Management Program
Funds are provided for services performed for new and previously diagnosed HIV positive persons. The
current agreement provides that the Board of Health will receive $60,000.
AIDS Health Education/Risk Reduction Program
Funds are provided to identify, coordinate, and provide public information and education regarding
Acquired Immune Deficiency Syndrome. The current agreement provides that the Board of Health will
. receive $8,375.
(8)
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Child Care Licensing Program
Funds are provided for the evaluation, registration, and licensing of homes and/or centers caring for
children. The current agreement provides that the Board of Health will receive $72,500 payable in quarterly
amounts based on number of licenses issued.
Immunization Action Plan
Funds are provided for the implementation of an increased age-appropriate level of immunization for
children aged birth to two years. The current agreement provides that the Board of Health will receive
$11,080.
Lead Poisoning Prevention Program
Funds are provided to hire a registered nurse to be the dedicated childhood lead poisoning prevention
nurse to coordinate and implement a screening and blood lead testing program within the county. The
contract was not renewed for the fiscal year beginning July 1, 2007 and ending June 30, 2008.
Public Health Preparedness and Response Program
Funds are provided for the completion of a local emergency preparedness and response inventory and a
submission of a final local public health preparedness plan. The Agency agrees to be a full participant in
the Health Alert Network. The current agreement provides that the Board of Health will receive $151,388
which includes $22,798 for the specific threat of panademic influenza.
State Programs
Food Service Licensing Program
Funds are provided for the evaluation, registration, and licensing of food service establishments. The
current agreement provides that the Board of Health will receive 80% of annual licensing fees, payable
monthly.
General Health Services - State Formula Grant
Matching funds are provided to help insure that adequate health services are available to the Saline County
Community. The current agreement provides that the Board of Health will receive $39,603 payable in
quarterly installments.
AIDS Counseling and Testing Site Program
Funds are provided for the counseling and testing of Acquired Immune Deficiency Syndrome. The current
agreement provides that the Board of Health will receive $3,752.
Local Environmental Protection Program
Funds are provided for the development and implementation of the Lincoln, Ellsworth, Ottawa, and Saline
County Sanitary Codes. The current agreement provides that the Board of Health will receive $50,478.
Tuberculosis Control Program
Funds are provided to expand services for people with low income who are not eligible for medicaid, have
no health insurance and no other means of payment for diagnosis and/or treatment of tuberculosis. The
current contract agreement provides that the Board of Health will receive $4,000.
The Board of Health periodically receives payments in advance or reimbursements to finance expenditures
incurred in administering the above programs. The following schedules summarize accounts receivable and
deferred income at December 31,2007 and 2006:
December 31,
2007 2006
Accounts Receivable
Special Supplemental Food Program for
Women, Infants, and Children
Food Service Licensing Program
Outreach Clinic Services
HIV Case Management
Public Health Preparedness and Response
Total Accounts Receivable
Deferred Income
TB Control Nurse
Local Environmental Protection Program
Total Deferred Income
$
65,953 $
24,720
144,660
13,704
1,950
2,869
12,802
175,985
$
9,727
100,400 $
$
- $
25,239
25,239 $
1,201
25,239
26,440
$
(9)
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6. Home Health Agency
The Board of Health provides services to patients which are reimbursed by third party payers, principally Medicare
and Medicaid. Total fees for services include reimbursements made under the Medicare and Medicaid programs.
7. Defined Benefit Pension Plan
Plan Description: The Board of Health participates in the Kansas Public Employees Retirement System (KPERS), a
cost-sharing multiple-employer defined benefit pension plan as provided by KSA 74-4901, et seq. KPERS provides
retirement benefits, life insurance, disability income benefits and death benefits. Kansas law establishes and amends
benefit provisions. KPERS issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to KPERS, 611 South Kansas, Suite 100, Topeka,
KS 66603-3803 or by calling 1-888-275-5737.
Funding Policy: KSA 74-4919 establishes the KPERS member-employer contribution rate at 4% of covered salary.
The employer collects and remits member-employee contributions according to the provisions of section 414(h) of the
Internal Revenue Code. State law provides that the employer contribution rate be determined annually based on the
results of an annual actuarial valuation. KPERS is funded on an actuarial reserve bases. State law sets a limitation on
annual increases on the contribution rates for KPERS employers. The employer rate established for calendar year
2007 was 5.31 %. The Board of Health employer contributions to KPERS for the years ended December 31, 2007,
2006 and 2005 were $98,295, $85,119 and $70,960, respectively, equal to the required contributions for each year.
8. Lease Agreement
Commencing June 14, 2005, the Board of Health updated their copier lease agreement to include additional copiers
and printers. The lease term is 63 months. The lease payment is $1,703 per month. Prior to June 14, 2005, the
lease payment was $1,299 per month. Total rent expense under this lease was $20,796 for the year ending
December 31, 2007. Future minimum rental payments required under the lease are as follows:
December 31,2008 $ 20,796
December 31,2009 20,796
December 31,2010 10,398
9. Compliance with Kansas Statutes
Deposits were not adequately secured for all months of the 2007 calendar year.
10. Other Post Employment Benefits
As provided by KSA 12-5040, the municipality allows retirees under age 65 to participate in the group health
insurance plan. While each retiree pays the full amount of the applicable premium, conceptually, the local government
is subsidizing the retirees because each participant is charged a level premium regardless of age. However, the cost
of this subsidy has not been quantified in these financial statements. Under the Consolidated Omnibus Budget
Reconciliation Act (COBRA), the municipality makes health care benefits available to eligible former employees and
eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium is
paid in full by the insured. There is no cost to the municipality under this program.
11. Certain reclassifications were made to the 2006 information to conform to the classifications used in 2007.
12. The Salina-Saline County Board of Health's insurance carrier settled a claim of gender discrimination and the case
was dismissed in 2008.
(10)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUPPLEMENTAL INFORMATION
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Schedule 1
GRANTS FROM THE KANSAS STATE DEPARTMENT
OF HEAL TH AND ENVIRONMENT
For the Year Ended
December 31,
2007 2006
Federal Programs
Maternal and Child Health Program $ 74,626 $ 77,259
Family Planning Program 39,651 41,634
Women, Infants, and Children Supplemental Food Program 397,180 368,993
Outreach Clinic Services 3,900 7,800
HIV Case Management 62,361 74,992
Child Care Licensing Program 73,227 73,034
Immunization Action Plan 12,680 11,080
Breast and Cervical Cancer Screening 263
Lead Poisoning Prevention 800 14,759
Bioterrorism Preparedness and Response Program 80,933 73,218
AIDS Health Education/Risk Reduction Program 8,451 8,529
Clean Water Act 308
Total Federal Programs 753,809 751,869
State Programs
Food Service Licensing Program 62,228 65,792
General Health Services - State Formula Grant 39,716 39,867
Local Environmental Protection Program 51,944 51,867
AIDS Counseling and Testing Site Program 3,752 3,752
West Nile Virus Program 1,592 1,592
Tuberculosis Control Program 3,682 4,000
Hand Washing Education 5,500
Total State Programs 162,914 172,370
Total Grants $ 916,723 $ 924,239
(11 )
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Title XVIII
Title XIX
Patients and insurance
Home care services
Homemaker services
Family planning services
General nursing clinics
Environmental health fees
Day care provider fees
Senior care fees
Child health assessment fees
Immunizations
Total Fees for Services
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FEES FOR SERVICES
(12)
Schedule 2
For the Year Ended
December 31,
2007 2006
399,271 $ 277,517
232,714 269,716
98,405 58,321
25,840 18,940
5,923 4,794
40,481 49,929
92,112 160,762
30,057 27,497
9,860 9,105
3,480 4,040
4,267 2,808
147,175 42,655
1,089,585 $ 926,084
$
$
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SINGLE AUDIT SECTION
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CLUBlNE&
RETTELE
CHARfERED
Certified Public Accounrants
"
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
Stacy J. Sokol, C.P.A.
Marci K. Fox, C.P.A.
John T. Millikin, C.P.A.
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/ 825-5479
Salina Fax
785 / 825-2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas
We have audited the financial statements of Salina-Saline County Board of Health, as of
and for the years ended December 31, 2007 and 2006 and have issued our report thereon
dated August 5, 2008. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America, the standards applicable to
Government Auditing Standards, issued by the Comptroller General of the United States
and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and
Reports, Department of the Administration of the State of Kansas.
Internal Control Over Financial Reoortina
In planning and performing our audit, we considered Salina-Saline County Board of
Health's internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinions on the financial statements, but not
for the purpose of expressing an opinion on the effectiveness of the Salina-Saline County
Board of Health's internal control over financial reporting. Accordingly, we do not express
an opinion on the effectiveness of the Salina-Saline County Board of Health's internal
control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A significant deficiency is a control
deficiency, or combination of control deficiencies, that adversely affects the Salina-Saline
County Board of Health's ability to initiate, authorize, record, process or report financial
data reliably in accordance with generally accepted accounting principles such that there is
more than a remote likelihood that a misstatement of the Salina -Saline County Board of
Health's financial statements that is more than inconsequential will not be prevented or
detected by,the Salina-Saline County Board of Health's internal control.
,A material weakness is a significant deficiency, or combination of significant deficiencies,
that results in more than a remote likelihood that a material misstatement of the financial
statements will not be prevented or detected by the Salina-Saline County Board of Health's
internal control.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all
deficiencies in internal control that might be significant deficiencies or material
weaknesses. We did not identify any deficiencies in internal control over financial reporting
that we consider to be material weaknesses, as defined above.
Comoliance and Other Matters
As part of obtaining reasonable assurance about whether Salina-Saline County Board of
Health's financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance that are required
to be reported under Government Auditing Standards.
{13}
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We noted certain matters that we reported to management of the Salina -Saline County Board of Health in a separate
letter dated August 5, 2008.
This report is intended for the information and use of the governing board, management, others within the organization
and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone
other than these specified parties.
August 5, 2008
Respectfully submitted,
~~~
CLUBINE AND RETTELE, CHARTERED
(14)
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CLUBlNE&
RElTELE
CHARIERED
Certified Public Aa-ountant.l
v
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.PA
Stacy J. Sokol, C.P.A.
Marci K. Fox, C.P.A.
John T. Millikin, C.P.A.
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/ 825-5479
Salina Fax
785 / 825-2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OMB CIRCULAR A-133
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas
ComDliance
We have audited the compliance of the Sal ina-Saline County Board of Health with the
types of compliance requirements described in the U. S. Office of Management and Budget
(OMB) Circular A-133 Compliance Supplement that are applicable to each of its major
federal programs for the year ended December 31, 2007. Salina-Saline County Board of
Health's major federal programs are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major
federal programs is the responsibility of Salina-Saline County Board of Health's
management. Our responsibility is to express an opinion on Salina-Saline County Board of
. Health's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the
United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations. Those standards and OMB Circular A-133 require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about Salina-Saline County Board of Health's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination on Salina-Saline County Board of Health's
compliance with those requirements.
In our opinion, Salina-Saline County Board of Health complied, in all material respects, with
the requirements referred to above that are applicable to each of its major federal
programs for the year ended December 31, 2007.
Internal Control Over ComDliance
The management of Salina-Saline County Board of Health is responsible for establishing
and maintaining effective internal control over compliance with requirements of laws,
regulations, contracts and grants applicable to federal programs. In planning and
performing our audit, we considered Salina-Saline County Board of Health's internal control
over compliance with requirements that could have a direct and material effect on a major
federal program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance but not for the purpose of expressing an opinion on
the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of Salina-Saline County Board of Health's internal control over
compliance.
A control deficiency in an entity's internal control over compliance exists when the design
or operation of a control does not allow management or employees, in the normal course of
performing their assigned functions, to prevent or detect noncompliance with a type of
compliance requirement of a federal program on a timely basis. A significant deficiency is
a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to administer a federal program such that there is more than a remote
(15)
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likelihood that noncompliance with a type of compliance requirement of a federal program that is more than
inconsequential will not be prevented or detected by the entity's internal control
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a
remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be
prevented or detected by the entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this
section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses, as defined above.
This report is intended for the information and use of the governing board, management, others within the organization
and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone
other than these specified parties.
Respectfully submitted, ~
c~/~:tAA.TERED
August 5, 2008
(16)
I SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2007
I Federal
CFDA Federal
Federal Grantor/Pass-Through Grantor/Program Title Number Expenditures
I U.S. Department of Aariculture
Passed Through State of Kansas Department of Health and Environment
I Special Supplemental Nutrition Program for Women, Infa nts,
and Children - 06/07 10.557 $ 199,844
Special Supplemental Nutrition Program for Women, Infa nts,
I and Children - 07/08 10.557 197,336
U.S. Department of Health and Human Services
I Passed Through State of Kansas Department of Health and Environment
Maternal and Child Health Services Block Grant
Salina Outreach Clinic Services - 06/07 93.994 3,900
I Salina Outreach Clinic Services - 07/08 93.994
Maternal and Child Health - 06/07 93.994 37,313
Maternal and Child Health - 07/08 93.994 37,313
I Family Planning - Services
05/06 93.217 20,498
06/07 93.217 19,153
I Immunization Action Plan
06/07 93.268 5,540
07/08 93.268 7,140
I Acquired Immunodeficiency Syndrome (AIDS) Activity
Aids/HERR - 06/07 93.118 3,348
Aids/HERR - 07/08 93.118 5,103
I HIV Case Management - 06/07 93.917 14,991
HIV Case Management - 07/08 93.917 47,370
Child Welfare Services
I Child Care Institutions Licensing - 06/07 93.596 35,441
Child Care Institutions Licensing - 07/08 93.596 37,786
I Lead Poisoning Prevention
06/07 66.707 800
07/08 66.707
I Bioterrorism
Public Health Preparedness and Response - 06/07 93.283 32,618
Public Health Preparedness and Response - 07/08 93.283 48,315
I Total $ 753,809
I
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The accompanying notes are an integral part
of these financial statements.
I (17)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2007
1.
Basis of Presentation
The accompanying schedule of expenditures of federal awards includes federal grant activity of Salina-Saline
County Board of Health and is presented on the modified accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations.
2.
Subrecipients
Of the federal expenditures presented in the schedule, Salina-Saline County Board of Health provided federal
awards to subrecipients as follows:
Federal Program
Amount
Provided to
CFDA Number Subrecipients
Special Supplemental Food Program for
Women, Infants and Children
10.557 $ 118,789
(18)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31,2007
Summary of Auditor's Results
Financial Statements
Type of auditor's report issued:
Qualified
Internal control over financial reporting:
Material weakness( es) identified
No
Significant deficiencies identified that are
not considered to be material weaknesses?
None reported
Noncompliance material to financial statements noted?
No
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
No
Significant deficiencies identified that are
not considered to be material weakness(es)
None reported
Type of auditor's report issued on compliance for major programs:
Any audit findings disclosed that are required to be reported
in accordance with section 510(a) of Circular A-133?
Unqualified
No
Identification of Maior oroarams:
10.557
Special Supplemental Food Program
for Women, Infants and Chi Idren
Dollar threshold used to distinguish between type A
and type B programs:
Auditee qualified as low-risk auditee:
$ 300,000
Yes
Section II - Financial Statement Findinas:
None
Section 111- Federal Award Findinas and Questioned Costs:
None
(19)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
CORRECTIVE ACTION PLAN
For the Year Ended December 31, 2007
None required.
(20)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended December 31, 2007
There are no prior audit findings.
(21)