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Audit - 2008/2009' SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas i 1 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31, 2009 and 2008' CLUBINE AND RETTELE, CHARTERED CERTIFIED PUBLIC ACCOUNTANTS ' SALINA, KANSAS SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas TABLE OF CONTENTS FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS Exhibit I BALANCE SHEETS Exhibit II STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY - BUDGET AND ACTUAL Exhibit III STATEMENTS OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS SUPPLEMENTAL INFORMATION Schedule'1 GRANTS FROM THE STATE OF KANSAS Schedule 2 FEES FOR SERVICES 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 0 Page 1 -2 3 4 5 6 7 -10 11 12 13 -14 15 -16 17 18 19 20 21 SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas FINANCIAL SECTION CLUBINE& RETTELE Cord fled Public Accountants OW 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. Osner, 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 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, 2009 and 2008 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, 2009 and 2008, 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 18, 2010 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 considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on page 3 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. (1) 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 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 schedule of expenditures of federal awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the ' financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial ' statements as a while. Respectfully submitted, CLUBINE AND RETTELE, CHARTERED IAugust 18, 2010 0 (2) ' 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, 2009. Please read it in conjunction with the Board's financial statements which begin on page 4. ' Financial Highlights 1. With the H1N1 events, much of our time and effort was spent in setting up clinics throughout the county. We received federal dollars to assist us in education and prevention activities. ' 2. Commercial refrigerators were purchased with immunization funds and H1 N1 funds to accurately cool immunizations and flu vaccine. 3. We were notified in November, 2009 that our contract with the Kansas Department of Agriculture for food ' inspections would be cancelled after the first of the year 2010. 4. An energy audit was completed and new air conditioning /heating units were installed with the goal of reducing utility costs. ' Condensed Financial Information 2009 2008 ' Total Assets $ 2,200,333 $ 2,042,511 Total Liabilities 682,916 549,012 Deferred Income .18,088 25,239 Total Fund Equity 1,499,329 1,468,260 1 1 1 1 1 1 1 1 1 Revenues Appropriations Grants Fees for services Interest income Miscellaneous Total Revenues Expenses Personal services Contractual services Expendable supplies Total Expenses Excess of Revenue over Expenses Ending Fund Equity Future $ 1,790,225 $ 1,737,839 861,544 1,021,941 1,060,021 1,106,033 1,725 10,519 259,937 247,462 3,973,452 4,123,794 3,133,876 3,227,387 302,417 260,189 506,090 422,073 3,942,383 3,909,649 31,069 214,145 $ 1,499,329 $ .1,468,260 1. A natural gas generator will be installed in 2010 to support IT activities and power in the event of a power outage. 2. We will be developing an IT plan which will include replacing outdated computers and upgrading our server. 3. Our telephone system will be replaced. 4. The interior of the animal shelter's crematorium was rebuilt in 2010 (3) Cash Accounts receivable State of Kansas (Note 5) Medicare and Medicaid Other care services Totals SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas BALANCE SHEETS ASSETS LIABILITIES AND FUND EQUITY Liabilities Vouchers payable Accrued salaries Accrued liability for compensated absences Animal Shelter Reward fund payable Total Liabilities Deferred Income (Note 5) Fund Equity Unrestricted Designated for Health Department Designated for Animal Shelter Total Fund Equity Totals The accompanying notes are an integral part of these financial statements. (4) Exhibit I December 31, 2009 2008 $ 1,808,919 $ 1,487,564 104,820 165,988 159,885 225,994 126,709 162,965 $ 2,200,333 $ 2,042,511 $ 32,656 $ 52,865 126,748 128,987 269,775 236,803 253,737 130,357 682,916 549,012 18,088 25,239 1,321,254 1,330,058 178,075 138,202 1,499,329 1,468,260 $ 2,200,333 $ 2,042,511 SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas Exhibit II STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY - BUDGET AND ACTUAL Revenues Appropriation from Saline County, Kansas (Note 4) Appropriation from City of Salina, Kansas (Note 4) Grants from the State of Kansas Fees for services Interest income Miscellaneous revenues Total Revenues Expenses Personal Services Salaries Social security Retirement Health insurance Unemployment insurance Professional services Contractual services Auditing Accounting Building and grounds - Remodeling and repair Telephone Mileage Service contracts and equipment lease Insurance Expendable supplies Office supplies Postage and express Books, dues and subscriptions Equipment maintenance and repair Gasoline and oil Clinical and medical supplies Chemicals Animal supplies and donation fund expenses Shelter refund Professional meetings Utilities and water Custodial services Health education Miscellaneous expense Capital equipment Total Expenses Excess of Revenues over Expenses Fund Equity, January 1 Fund Equity, December 31 For the Year Ended December 31, , 2009 2008 Actual Budget Actual Budget $ 772,124 $ 772,124 $ 749,449 $ 749,449 1,018,101 1,018,101 988,390 988,390 862,504 863,522 1,021,941 766,000 1,060,021 1,062,000 1,106, 033 1,081,170 1,725 10,800 10,519 35,000 258,977 254,320 247,462 150,000 3,973,452 3,980,867 4,123,794 3,770,009 2,322,978 2,349,616 2,268,678 2,260,306 159,621 180,227 157,322 172,969 128,225 137,758 123,843 116,063 351,314 329,910 312,934 322,410 6,190 2,356 2,222 2,261 165,548 268,000 362,388 241,000 8,300 8,000 7,900 8,000 700 800 675 800 9,957 14,000 13,481 14,000 23,771 30,000 26,920 24,500 56,966 80,000 66,689 73,000 85,343 73,000 57,640 52,000 117,380 75,000 86,884 70,000 41,991 35,600 44,461 34,600 9,921 14,500 15,725 14,000 4,362 5,500 5,034 7,000 1,802 1,600 1,116 1,600 7,317 12,000 13,441 12,000 153,269 160,000 147,350 151,000 3,262 8,000 6,766 8,000 95,617 25,000 23,045 21,100 55,122 45,000 47,624 35,000 18,206 25,000 31,350 30,000 50,976 65,000 59,631 54,400 4,804 5,000 8,027 4,000 59,416 30,000 16,107 36,000 25 - 1,396 4,000 - - 1,000 - __ 3,942,383 3,980,867 3,909,649 3,770,009 31,069 - 214,145 1,468,260 - 1,254,115 $ 1,499,329 $ . - $ 1,468,260 $ The accompanying notes are an integral part of these financial statements. (5) Increase in Cash Cash at Beginning of Year Cash at End of Year 321,355 382,520 1;487,564 1,105,044 $ 1,808,919 $_ 1,487,564 RECONCILIATION OF EXCESS OF REVENUES OVER EXPENSES TO NET CASH PROVIDED BY OPERATING ACTIVITIES Excess of Revenues over Expenses - Exhibit II Adjustments to reconcile excess of revenues over expenses to net cash provided by operating activities Decrease in accounts receivable Decrease in vouchers payable Increase (Decrease) in accrued salaries Increase in accrued compensated absences Increase in Animal Shelter Reward fund payable Increase (Decrease) in deferred income Total Adjustments Net Cash Provided by Operating Activities $ 31,069 $ 214,145 163,533 f (20,209) (16,119) (2,239) SALINA- SALINE COUNTY BOARD OF HEALTH 32,972 - 123,380 Salina, Kansas (7,151) - 290,286 168,375 Exhibit III ' STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2009 2008 ' Cash Flows From Operating Activities Saline County, Kansas, $ 772,124 $ 1,022,396 City of Salina, Kansas 1,018,101 988,390 Grants 916,521 956,353 . ' Fees 1,126,130 1,013,471 Miscellaneous 295,232 205,190 Interest income 1,725 10,519 Cash paid to suppliers and others (1,516,233) (1,591,024) ' Cash paid to employees for services (2,292,245) Net Cash Provided by Operating Activities 321,355 382,520 Increase in Cash Cash at Beginning of Year Cash at End of Year 321,355 382,520 1;487,564 1,105,044 $ 1,808,919 $_ 1,487,564 RECONCILIATION OF EXCESS OF REVENUES OVER EXPENSES TO NET CASH PROVIDED BY OPERATING ACTIVITIES Excess of Revenues over Expenses - Exhibit II Adjustments to reconcile excess of revenues over expenses to net cash provided by operating activities Decrease in accounts receivable Decrease in vouchers payable Increase (Decrease) in accrued salaries Increase in accrued compensated absences Increase in Animal Shelter Reward fund payable Increase (Decrease) in deferred income Total Adjustments Net Cash Provided by Operating Activities $ 31,069 $ 214,145 163,533 72;525 (20,209) (16,119) (2,239) 45,903 32,972 - 123,380 66,066 (7,151) - 290,286 168,375 $ . 321,355 $ 382,520 The. accompanying notes are an integral part of these financial statements. (6) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 SALINA- SALINE COUNTY BOARD OF HEALTH. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2009 and 2008 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. 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 (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) ' 3. Deposits and Investments Deposits - At December 31, 2009 and 2008, respectively, the carrying amount of the Board of Health's deposits were $1,800,975 and $1,482,440, and the bank balances were $1,848,370 and $1,585,647. 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. One deposit balance was not fully secured at December 31, 2009. 1 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: Saline County, Kansas Regular tax appropriation City of Salina, Kansas Regular tax appropriation 5. Grants from the State of Kansas 2009 2008 $ 772,124 $ 749,449 $ 1,018,101 $ . 988,390 Agreements were in effect during 2009 and 2008 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, 2010. 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: IFederal 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 (WIC) 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 $215,513, plus any reallocated federal funds that may become available. This program is on an October 1 through September 30 fiscal year. ' 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 1 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) 1 1 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 $37,822 which includes $26,908 specifically for the Women, Infant Children (WIC) Immunization Collaboration. ` 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 Emergency 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 $328,748 which includes $39,427 for the specific threat of panademic influenza and $241,537 earmarked for H1 N1 emergency response activities and vaccination procedures. 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. This program was terminated effective January 9, 2010. 1 1 7- L 1 1 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 $39,110 payable in quarterly installments. HIV 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 $8,743. 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 $36,176. 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, 2009 and 2008: Accounts Receivable H1N1 Public Health Emergency Response Special Supplemental Food Program for Women, Infants, and Children Public Health Emergency Preparedness Food Service Licensing Program Tuberculosis Control Program Total Accounts Receivable Deferred Income Local Environmental Protection Program 6. Home Health Agency December 31, 2009 2008 $ 1 68,579 $ 123,426 12,229 11,338 23,384 31,224 628 - $ 104,820 $ 165,988 $ 18,088 $ _ .25,239 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) 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 1 results of an annual actuarial valuation. KPERS is funded on an actuarial reserve basis. State law sets a limitation on annual increases on the contribution rates for KPERS employers. The employer rate established for calendar year 2009 was 6.54 %. Included in this rate is the contribution for Group Death and Disability Insurance of 1.00°/x. From ' March 1, 2009 through November 30, 2009, there was a moratorium on the collection of the premium of 1.00% of the Group Death and Disability Insurance rate. The Board of Health employer contributions to KPERS for the years ended December 31, 2009, 2008 and 2007 were $128,225, $123,843 and $98,295, 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. Total rent expense under this lease was $37,604 and $32,406 for the years ending December 31, 2009 and 2008, respectively. Future minimum rental payments required under the lease are as follows: December 31, 2010 $ 36,396 December 31, 2011 36,396 December 31, 2012 36,396 ' December 31, 2013 18,198 9. Compliance with Kansas Statutes ' Deposits were not adequately secured for all months of the 2009 calendar year. 10. Other Post Employment Benefits ' As a joint venture between Salina County and the City of Salina, the Board of Health participates in the City's defined benefit healthcare plan that is administered by the City. The Employee Benefit Plan (the Plan) provides medical and ' dental benefits to eligible early retirees and their spouses. K.S.A. 12 -5040 requires all local governmental entities in the state that provide a group health care plan to make participation available to all retires and dependents until the retiree reaches the age of 65 years. No separate financial report is issued for the Plan. The OPEB cost, actuarial valuations of the ongoing plan and net OPEB obligations for the Board of Health as a sub - group of the plan, are calculated and recorded in the City's Comprehensive Annual Financial Report. 11. Subsequent Events The Board of Health's management has evaluated events and transactions occurring after December 31, 2009 through August 18, 2010. The aforementioned date represents the date the financial statements were available to be ' issued. 1 1 (10) SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas SUPPLEMENTAL INFORMATION SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas GRANTS FROM THE STATE OF KANSAS Federal Programs Maternal and Child Health Program Family Planning Program Women, Infants and Children Supplemental Food Program Women, Infants and Children Immunization Collaboration HIV Case Management Child Care Licensing Program Immunization Action Plan STD Control Grant Lead Poisoning Prevention Public Health Preparedness and Response Program AIDS Health Education /Risk Reduction Program Clean Water Act Total Federal Programs State Programs Food Service Licensing Program General Health Services - State Formula Grant Local Environmental Protection Program HIV Counseling and Testing Site Program Tuberculosis Control Program Total State Programs Total Grants (11) Schedule 1 For the Year Ended December 31, 2009 2008 $ 74,626 $, 74,626 38,519 38,192 219,217 492,054 20,407 18,610 60,000 57,700 71,000 70,877 10,997 9,480 - 175 3,075 1,200 222,516 95,045 8,413 8,112 - 2,773 728,770 868,844 40,824 53,088 39;265 39,509 43,327 50,478 6,248 3,752 4,070 6,270 133,734 153,097 $ 862,504 $ title XVIII ritle XIX 'atients and insurance tome care services iomemaker services =amity planning services 3eneral nursing clinics ;nvironmental health fees )ay care provider fees Senior care fees '.hild health assessment fees mmunizations f otal Fees for Services SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas FEES FOR SERVICES (12) Schedule 2 For the Year Ended December 31, 2009 2008 $ 394,219 $ 445,737 261,124 239,888 82,065 98,934 27,086 20,159 6,314 5,817 32,980 41,500 16,818 10,999 27,620 23,758 12,820. 131072 1,978 4,940 - 204 197,177 201,025 $ 1.,060,201 $ 1,106,033 1 SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas SINGLE AUDIT SECTION DCLUBIM REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING ' lei LE& AND OFF FINANCIAL STATEMENTS PERFORMED N ACCORDANCE DIT CHUG ERM WITH GOVERNMENT AUDITING STANDARDS ' Certified Public Acwunwts To the Governing Board Salina - Saline County Board of Health OW Salina, Kansas ' We have audited the financial statements of Salina - Saline County Board of Health, as of and for the years ended December 31, 2009 and 2008 and have issued our report thereon Robert I. Clubine, C.P.A. dated August 18, 2010. We conducted our audit in accordance with auditing standards ' David A. Rettele, C.P.A. generally accepted in the United States of America, the standards applicable to Jay D. Langley, C.P.A. Government Auditing Standards, issued by the Comptroller General of the United States Jon K. Bell, C.P.A. and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and Leslie M. Corbett, C.P. p A. Reports, Department of the Administration of the State of Kansas. Stacy J. Osner, C.P.A. Internal_ Control Over Financial Reporting Marc! K. Fox, C.P.A. ' John T. Mlllikin, C.P.A. In planning and performing our audit, we considered Salina- Saline County Board of Linda A. Suelter, C.P.A. 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 deficiency in internal control 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 and correct misstatements on a timely basis. A material 1 weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material 218 South Santa Fe weaknesses. We did not identify any deficiencies in internal control over financial reporting P.O. Box 2267 that we consider to be material weaknesses, as defined above. Salina, Kansas 67402 -2267 Compliance and Other Matters As part of obtaining reasonable assurance about whether Salina- Saline County Board of Salina Health's financial statements are free of material misstatement, we performed tests of its 785 / 825 -5479 compliance with certain provisions of laws, regulations, contracts and grant agreements, Salina Fax 785 / 825 -2446 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 Ellsworth provisions was not an objective of our audit and, accordingly, we do not express such an ' 785 / 472 -3915 opinion. The results of our tests disclosed no instances of noncompliance that are required Ellsworth Fax to be reported under Government Auditing Standards. 785 / 472 -5478 1 1 `13' 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 18, 2010 Respectfully submitted, CLUBINE AND RETTELE, CHARTERED (14) n 1 1 CLVDI E REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR i�LE& INTERNAL CONTROL OVER COMPLIANCE iV ACCORDANCE CHArGERM WITH OMB CIRCULAR A -133 Certified Public Amunumts 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 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, 2009. Salina - Saline County Board of Robert 1. Clubine, C.P.A. Health's major federal programs are identified in the summary of auditor's results section of David A. Rettele, C.P.A. the accompanying schedule of findings and questioned costs. Compliance with the Jay D. Langley, C.P.A. requirements of laws, regulations, contracts and grants applicable to each of its major Jon K. Bell, C.P.A. federal programs is the responsibility of Salina - Saline County Board of Health's Leslie M. Corbett, C.P.A. p g p ty ty Stacy J. Osner, C.P.A. management. Our responsibility is to express an opinion on Salina- Saline County Board of Health's compliance based on our audit. Marci K. Fox, C.P.A. We conducted our audit of compliance in accordance with auditing standards generally John T. Millikin, C.P.A. accepted in the United. States of America; the standards applicable to financial audits Linda A. Suelter, C.P.A. 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, 2009. Internal. Control Over Compliance 218 South Santa Fe The management of Salina - Saline County Board of Health is responsible for establishing P.O. Box 2267 and maintaining effective internal control over compliance with requirements of laws, Salina, Kansas regulations, contracts and grants applicable to federal programs. In planning and 67402 -2267 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 Salina expressing our opinion on compliance but not for the purpose of expressing an opinion on 785 / 825 -5479 the effectiveness of internal control over compliance. Accordingly, we do not express an Salina Fax opinion on the effectiveness of Salina - Saline County 785 / 825 -2446 P Board of Health's internal control over compliance. Ellsworth 785 / 472 -3915 A deficiency in internal control over compliance exists when the design or operation of a Ellsworth Fax control does not allow management or employees, in the normal course of performing their 785 / 472 -5478 assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that a type of compliance requirement of a federal program will not be prevented or detected and corrected on a timely basis. (15) Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over that might be compliance deficiencies 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. August 18, 2010 Res c Ily submitted; CLUBINE AND RETTELE, CHARTERED (16) SALINA- SALINE COUNTY BOARD OF HEALTH Salina; Kansas SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2009 Federal CFDA Federal Federal Grantor /Pass - Through Grantor /Program Title Number Expenditures U.S. Department of Agriculture Passed Through State of Kansas Department of Health and Environment Special Supplemental Nutrition Program for Women, Infants and Children 10.557 $ 239,624 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 Total The accompanying notes are an integral part of these financial statements. (17) 93.994 74,626 93.217 38,519 93.268 10,997 93.118 8,413 93.917 60,000 93.596 711,000 66.707 3,075 93.069 222,516 $ 728,770 SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2009 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. (18) ' SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2009 ' Summary of Auditor's Results Financial Statements Type of auditor's report issued: ' Internal control over financial reporting: Material weaknesses) identified ' Significant deficiencies identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards ' Internal control over major programs: Material weakness(es) identified? Significant deficiencies identified that are not considered to be material weakness(es) ' 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? Identification of Major programs: ' 10.557 93.217 93.994 93.596 ' Dollar threshold used to distinguish between type A and type B programs: ' Auditee qualified as low -risk auditee: ' Section II - Financial Statement Findings: None Section III - Federal Award Findings and Questioned Costs: ' None (19) Qualified No None reported No None reported Unqualified [Me Special Supplemental Food Program for Women, Infants and Children Family Planning Services Maternal and Child Health Services Child Care Institution Licensing $ 300,000 No ' SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas ' CORRECTIVE ACTION PLAN For the Year Ended December 31, 2009 ' None required. (20) SALINA- SALINE COUNTY BOARD OF HEALTH Salina, Kansas SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended December 31, 2009 There are no prior audit findings. (21)