Audit - 2007/2008
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31, 2008 and 2007
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALlNA,KANSAS
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
TABLE OF CONTENTS
Paqe
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
1-2
3
Exhibit III
BALANCE SHEETS
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
FUND EQUITY - BUDGET AND ACTUAL
STATEMENTS OF CASH FLOWS
4
Exhibit I
Exhibit II
5
6
NOTES TO FINANCIAL STATEMENTS
7-10
SUPPLEMENTAL INFORMATION
Schedule 1
GRANTS FROM THE STATE OF KANSAS
11
Schedule 2
FEES FOR SERVICES
12
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
13-14
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
1 5-16
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
17
18
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
19
CORRECTIVE ACTION PLAN
20
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
21
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL SECTION
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CLUBlNE&
RElTELE
CHARfERED
Certified Public Accountants
rr
Robert I. Clubine, C.PA
David A. Rettele, C.P.A.
Jay D. Langley, C.PA
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.PA
Stacy J. Sokol, C.PA
Marci K. Fox, C.P.A.
John T. Millikin, C.PA
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, 2008 and 2007 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 opinions 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, 2008 and 2007, 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
July 10, 2009 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 is supplementary information required by accounting principles
generally accepted in the United 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,
akJI?~
CLUBINE AND RETTELE, CHARTERED
July 10, 2009
(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, 2008. Please read it in conjunction with the Board's financial statements which begin on page 4.
Financial Hiqhliqhts
1. For many years, the Health Department administered the W1C program for ten counties. With the retirement of
the W1C coordinator in December 2008, the Department received approval from KDHE to allow the other nine
counties opportunity to administer their own programs. As of January 1, 2009, we will be administering only Saline
County's WIC program.
2. The Public Health Emergency Preparedness dollars for our full-time coordinator were decreased, but the regional
grant allowed the regional partners to hire her to coordinate regional activities part-time. With that, the Health
Department received additional dollars to act as fiscal agent for the regional grant.
3. The animal shelter had their storage unit built with targeted donation funds.
4. We eliminated one animal control officer position.
5. The staff WIC office was enclosed with WIC infrastructure dollars.
Condensed Financial Information
2008 2007
Total Assets $ 242,511 $ 1,732,516
Total Liabilities 549,012 453,162
Defined Income 25,239 25,239
Total Fund Equity 1,468,260 1,254,115
Revenues
Appropriations $ 1,737,839 $ 1,686,249
Grants 1,021,941 916,723
Fees for services 1,106,033 1,089,585
Interest income 10,519 33,872
Miscellaneous 247,462 351,526
Total Revenues 4,123,794 4,077,955
Expenses
Personal services 3,227,387 2,920,750
Contractual services 260,189 250,932
Expendable supplies 422,073 444,199
Total Expenses 3,909,649 3,615,881
Excess of Revenue over Expenses 214,145 462,074
Ending Fund Equity $ 1,468,260 $ 1,254,115
Future
1. The animal shelter plans on rebuilding the interior of the crematorium using donation dollars.
2. Using fund balance from 2008, the department will purchase a generator to be used in case of a power outage.
3. The city will include the health department in an energy audit, which could result in new heating and cooling units.
(3)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit I
BALANCE SHEETS
ASSETS
Cash
Accounts receivable
State of Kansas (Note 5)
Medicare and Medicaid
Other care services
Saline County
December 31 ,
2008 2007
$ 1,487,564 $ 1,105,044
165,988 100,400
225,994 133,432
162,965 120,693
272,947
$ 2,042,511 $ 1,732,516
Totals
LIABILITIES AND FUND EQUITY
Liabilities
Vouchers payable
Accrued salaries
Accrued liability for compensated absences
Animal Shelter Reward fund payable
Total Liabilities
$ 52,865 $ 68,984
128,987 83,084
236,803 236,803
130,357 64,291
549,012 453,162
25,239 25,239
Deferred Income (Note 5)
Fund Equity
Unrestricted
Designated for Health Department
Designated for Animal Shelter
Total Fund Equity
1,330,058
138,202
1,468,260
1,125,238
128,877
1,254,115
Totals $
2,042,511 $
1,732,516
The accompanying notes are an integral part
of these financial statements.
(4)
- - - -- -- -------- - _______u____
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,
2008 2007
Actual Budget Actual Budget
I Revenues
Appropriation from Saline County, Kansas (Note 4) $ 749,449 $ 749,449 $ 727,859 $ 727,859
Appropriation from City of Salina, Kansas (Note 4) 988,390 988,390 958,390 958,390
Grants from the State of Kansas 1,021,941 766,000 916,723 721,948
I Fees for services 1,106,033 1,081,170 1,089,585 919,300
Interest income 10,519 35,000 33,872 5,000
Miscellaneous revenues 247,462 150,000 351,526 150,000
I Total Revenues 4,123,794 3,770,009 4,077,955 3,482,497
Expenses
Personal Services
I Salaries 2,268,678 2,260,306 2,095,270 2,137,807
Social security 157,322 172,969 '147,444 162,003
Retirement 123,843 116,063 97,914 100,493
I Health insurance 312,934 322,410 284,779 292,302
Unemployment insurance 2,222 2,261 2,080 5,506
Professional services 362,388 241,000 293,263 170,000
Contractual services
I Auditing 7,900 8,000 7,700 8,000
Accounting 675 800 675 760
Building and grounds - Remodeling and repair 13,481 14,000 16,942 13,500
I Telephone 26,920 24,500 29,248 21,000
Mileage 66,689 73,000 66,398 70,000
Service contracts and equipment lease 57,640 52,000 60,840 45,000
I Insurance 86,884 70,000 69,129 89,400
Expendable supplies
Office supplies 44,461 34,600 34,118 29,500
Postage and express 15,725 14,000 14,030 14,000
I Books, dues and subscriptions 5,034 7,000 5,334 6,500
Equipment maintenance and repair 1,116 1,600 959 1,000
Gasoline and oil 13,441 12,000 9,782 7,000
I Clinical and medical supplies 147,350 151,000 157,878 120,000
Chemicals 6,766 8,000 6,738 4,000
Animal supplies and donation fund expenses 23,045 21,100 51,113 14,400
Shelter refund 47,624 35,000 43,155 50,500
I Professional meetings 31,350 30,000 21 ,421 27,000
Utilities and water 59,631 54,400 57,766 54,400
Custodial services 8,027 4,000 7,641 5,000
I Health education 16,107 36,000 27,658 26,000
Miscellaneous expense 1,396 4,000 708 1,426
Capital equipment 1,000 5,898 6,000
Total Expenses 3,909,649 3,770,009 3,615,881 3,482,497
I Excess of Revenues over Expenses 214,145 462,074
Fund Equity, January 1 1,254,115 792,041
I Fund Equity, December 31 $ 1,468,260 $ $ 1,254,115 $
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 ,
2008 2007
1,022,396 $ 454,912
988,390 958,390
956,353 991,107
1,013,471 1,123,849
205,190 304,443
10,519 33,872
(1,591,024) (1,548,708)
(2,222,775) (2,080,435)
382,520 237,430
382,520 237,430
1,105,044 867,614
1,487,564 $ 1,105,044
$
I ncrease 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
$
214,145 $
462,074
Adjustments to reconcile excess of revenues over
expenses to net cash provided by operating activities
Decrease (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
72,525 (210,181)
(16,119) 6,855
45,903 5,738
9,097
66,066 (34,952)
(1,201 )
168,375 (224,644)
$ 382,520 $ 237,430
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 31,2008 and 2007
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 Commissioners, 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 modified accrual basis of accounting.
The significant accounting policies followed by the Board of Health are described below.
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 (Le.,
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, 2008 and 2007, respectively, the carrying amount of the Board of Health's deposits
were $1,482,440 and $1,088,155, and the bank balances were $1,585,647 and $1,175,658. 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 in excess of FDIC coverage. Deposit balances were fully secured by FDIC and joint
custody receipts as of December 31, 2008.
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:
2008
2007
Saline County, Kansas
Regular tax appropriation
$
749,449 $
727,859
City of Salina, Kansas
Regular tax appropriation
$
988,390 $
958,390
5. Grants from the State of Kansas
Agreements were in effect during 2008 and 2007 with the State of Kansas regarding certain grants which were
funded by federal and state monies. Current agreements are for the state's fiscal year ended June 30, 2009.
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:
Federal 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 $38,076.
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 $129,072, plus any reallocated federal funds that may
become available. This program is on an October 1 through September 30 year-end.
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.
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 $71,000 payable in quarterly
amounts based on number of licenses issued.
(8)
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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 for elevated blood level inspection per protocols to identify lead hazards of children.
The current agreement provides a maximum payment of $200 per address per year for elevated blood
level inspection services.
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 $88,923
which includes $40,192 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 $39,417 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 $5,000.
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, 2008 and 2007:
Accounts Receivable
Special Supplemental Food Program for
Women, Infants, and Children
Food Service Licensing Program
Public Health Preparedness and Response
Total Accounts Receivable
Deferred Income
Local Environmental Protection Program
December 31,
2008 2007
$ 123,426 $ 65,953
31,224 24,720
11,338 9,727
$ 165,988 $ 100,400
$ 25,239 $ 25,239
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.
(9)
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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 K.S.A 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: K.S.A 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
2008 was 5.93%. The Board of Health employer contributions to KPERS for the years ended December 31, 2008,
2007 and 2006 were $123,843, $98,295 and $85,119, respectively, equal to the required contributions for each year.
8. Lease Agreement
Commencing March 17,2008, 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 $3,033 per month. Prior to March 17,2008, the
lease payment was $1,703 per month. Total rent expense under this lease was $32,406 and $20,796 for the years
ending December 31,2008 and 2007, respectively. Future minimum rental payments required under the lease are as
follows:
December 31,2009
December 31, 2010
December 31, 2011
December 31,2012
December 31, 2013
$
36,396
36,396
36,396
36,396
18,198
9. Compliance with Kansas Statutes
Deposits were not adequately secured for all months of the 2008 calendar year.
10. Other Post Employment Benefits
As provided by K.S.A 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. The American Recovery and Reinvestment Act of 2009 (ARRA) requires employers and
ultimately the federal government to make premium assistance payments for COBRA health plan continuation
coverage to certain assistance eligible individuals (AEI) whose employment is involuntarily terminated on any date
between September 1, 2008 and December 31, 2009. Under ARRA, the AEI pays 35% of the premium instead of
100% for a nine month period. The Board of Health had no qualifying terminations between September 1, 2008 and
December 31,2008.
(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 STATE OF KANSAS
Federal Programs
Maternal and Child Health Program
Family Planning Program
Women, Infants, and Children Supplemental Food Program
Outreach Clinic Services
HIV Case Management
Child Care Licensing Program
Immunization Action Plan
STD Control Grant
Lead Poisoning Prevention
Bioterrorism Preparedness and Response Program
AIDS Health Education/Risk Reduction Program
Clean Water Act
Total Federal Programs
For the Year Ended
December 31 ,
2008 2007
$ 74,626 $ 74,626
38,192 39,651
510,664 397,180
3,900
57,700 62,361
70,877 73,227
9,480 12,680
175
1,200 800
95,045 80,933
8,112 8,451
2,773
868,844 753,809
53,088 62,228
39,509 39,716
50,478 51,944
3,752 3,752
1,592
6,270 3,682
153,097 162,914
$ 1,021,941 $ 916,723
State Programs
Food Service Licensing Program
General Health Services - State Formula Grant
Local Environmental Protection Program
AIDS Counseling and Testing Site Program
West Nile Virus Program
Tuberculosis Control Program
Total State Programs
Total Grants
(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 ,
2008 2007
445,737 $ 399,271
239,888 232,714
98,934 98,405
20,159 25,840
5,817 5,923
41,500 40,481
10,999 92,112
23,758 30,057
13,072 9,860
4,940 3,480
204 4,267
201,025 147,175
1,106,033 $ 1,089,585
$
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SINGLE AUDIT SECTION
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CLUBlNE&
RETTELE
CHARfERED
Certified Public Accountants
rr
Robert I. Clubine, C.PA
David A. Rettele, C.PA
Jay D. Langley, C.P.A.
Jon K. Bell, C.PA
Leslie M. Corbett, C.PA
Stacy J. Sokol, C.PA
Marci K. Fox, C.P.A.
John T. Millikin, C.PA
Linda A. Suelter, C.PA
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
Salina Fax
785 1 825-2446
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 31,2008 and 2007 and have issued our report thereon
dated July 10, 2009. 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 Generall 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 Reportinq
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.
Compliance 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 July 10, 2009.
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.
Respectf lIy submitted,
J~
CLUBINE AND RETTELE, CHARTERED
July 10, 2009
(14)
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CLUBlNE&
RETTELE
CHARrERED
Certified Public Accountants
rr
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.PA
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
Stacy J. Sokol, C.PA
Marci K. Fox, C.PA
John T. Millikin, C.P.A.
Linda A. Suelter, C.PA
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
Salina Fax
785 1 825-2446
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
Compliance
We have audited the compliance of the Salina-Saline County Board of Health with the
types of compliance requirements described in the OMB Circular A-133 Compliance
Supplement that are applicable to each of its major federal programs for the year ended
December 31,2008. 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 GOlfernments, 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, 2008.
Internal Control Over Compliance
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
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.
(15)
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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.
~b:::e~
CLUBINE AND RETTELE, CHARTERED
July 10, 2009
(16)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2008
Federal Grantor/Pass-Through Grantor/Program Title
U.S. Department of Aqriculture
Passed Through State of Kansas Department of Health and Environment
Special Supplemental Nutrition Program for Women, Infants,
and Children
U.S. Department of Health and Human Services
Passed Through State of Kansas Department of Health and Environment
Maternal and Child Health Services
Family Planning - Services
Immunization Action Plan
Acquired Immunodeficiency Syndrome (AIDS) Activity
AIDS/HERR
HIV Case Management
Child Welfare Services
Child Care Institutions Licensing
Lead Poisoning Prevention
Bioterrorism
Public Health Preparedness and Response
Preventive Health Services
STD Control Grant
Environmental Protection Aqencv
Passed Through State of Kansas Department of Health and Environment
Clean Water Act
Total
The accompanying notes are an integral part
of these financial statements.
(17)
Federal
CFDA
Number
Federal
Expenditures
10.557
$ 510,664
93.994 74,626
93.217 38,192
93.268 9,480
93.118 8,112
93.917 57,700
93.596 70,877
66.707 1,200
93.283 95,045
93.977 175
66.460
2,773
$ 868,844
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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, 2008
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 $ 116,860
(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, 2008
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:
Unqualified
Any audit findings disclosed that are required to be reported
in accordance with section 51 O(a) of Circular A-133?
No
Identification of Maior proqrams:
10.557
Special Supplemental Food Program
for Women, Infants and Children
Dollar threshold used to distinguish between type A
and type B programs:
$ 300,000
Auditee qualified as low-risk auditee:
Yes
Section II - Financial Statement Findings:
None
Section III - Federal Award Findinqs 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, 2008
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 31,2008
There are no prior audit findings.
(21 )