6.2 Agr Audit CITY OF SALINA
REQUEST FOR COMMISSION ACTION
DATE T I ME
12/16/1985 4:00 P.M.
AGENDA SECTION:
NO. 6
Consent
ITEM
NO. 2
ORI GI NATI NG DEPARTMENT:
City Clerk
jBY: D. L. Harrison
APPROV ED FOR
AG :
Authorize the Mayor to sign an audit contract with Kennedy and Coe, Certified
Public Accountants, to audit the 1985 city accounts.
The total cost of the 1985 audit contract will be $25,690. This is the same
as the 1984 contract.
COMMISSION ACTION
MOTION BY
SECOND BY
TO:
MEMBERS OF AMERICAN INSTITUTE: OF CERTIFIED PUBLIC ACCOUNTANTS
ROBERT D WILBUR. C. P. A.
MANAGING PARTNER
P.O. BOX 1179. SALINA. KS 67402-~ ]79
OFFICES
KANSAS: SCOTT C~TY
ANTHONY SMITH CENTER
COLBY WICHITA
CONCORDIA NEBRASKA:
GOODLAND MCCOOK
GREAT SENO OKLAHOMA:
MARYSVILLE ALVA
PRATT COLORADO:
SALINA LAMAR
WESTMINSTER
KENNEDY AND COE
CERTIFIED PUBLIC ACCOUNTANTS
UNITED BUILDING P. O. BOX I 179
SALiNA. KANSAS 67402-1179
913 - 925-1561
December 4, 1985
RALPH E. REITZ. C.P.A. {RETIRED)
E. T SHEA. C.P A. {RETIRED)
L M MERTZ. CP.A. (RETIRED)
ROBERT D. WILBUR. C.P.A.
MANAGING PARTNER
R. MICHAEL BI;ATTY. C.P.A
PARTNER-IN*CHARGE
JOHN W. POO$. C.P.A.. PARTNER
ADLEY E. JOHNSON. C.P.A.. PARTNER
DON P. D~EDERICN. C.PA.. PARTNER
PAUL A. MOTT. C.P A., PARTNER
ALLEN WEBBER. C.P.A.. PARTNER
GERALD L. HUNTER. (;.P.A.. PARTNER
The Honorable Mayor
and The City Commissioners
City of Salina
Salina, Kansas 67401
We propose to make examinations of the financial statements of the City of
Salina, Kansas for the year 1985 listed on Appendix A. Our examinations will
be made in accordance with generally accepted auditing standards adopted by
the American Institute of Certified Public Accountants, the Minimum Standard
Audit Program approved by the State Municipal Accounting Board, and the
requirements of Office of Management and Budget Circular A-128 and will
include tests of accounting records and such other auditing procedures as we
consider necessary under the circumstances. In addition, supplemental
information (as listed in Appendix A), presented for the purpose of additional
analysis and not a required part of the basic financial statements, will be
~subjected to the audit procedures applied in the examination of the basic
financial statements.
It is our understanding that the funds subject to OMB Circular A-128
requirements for 1985 are Federal Revenue Sharing Funds.
The scope of our examinations will include all funds of the City except:
Salina Arts Commission
Salina Housing Authority
Salina - Saline County Board of Health
Saline County , City Building Authority
Salina Recreation Commission
Salina Airport Authority
Firemen's Relief Association
It is our understanding that the above organizations have contracted for
separate audits of their operations.
The objective of our engagement is the completion of examinations of the
financial statements of the City of Salina for the year 1985, and upon
completion and subject to our findings, the expression of opinions on such
financial statements. An examination made in accordance with generally
accepted auditing standards is subject to certain limitations and the
The Honorable Mayor
and The City Commissioners
December 4, 1985
Page 2
inherent risk that errors or irregularities, if they exist, will not be
detected. However, if, during the course of our examination, we become aware
of such errors or irregularities, we will bring them to your attention.
Should you then wish us to expand our normal auditing procedures, we will work
with you on developing a separate engagement for that purpose.
Our fee for services rendered for the engagement described in the preceding
paragraphs will be computed at our standard billing rates for municipalities.
However, our fee for this engagement will not exceed $25,690. Billings will
be rendered for payment on a monthly basis so that you may readily relate our
charges to the work performed. The maximum fee is based on the assumption that
the City will obtain the appropriate waiver from financial statements and
reports prepared in accordance with generally accepted accounting principles
for the year end December 31, 1985. In the event laws are enacted or the State
Municipal Accounting Board makes changes in the audit requirements for Kansas
municipalities, which in our judgment materially increases the time required
to perform the services set forth in this contract, we reserve the right to
renegotiate the maximum fee with the City Commissioners.
In order to facilitate the efficient conduct of our work, we will provide your
personnel with our requirements for audit documentation, schedules and
analyses, and develop a schedule for when such information is to be available
which is consistent with prior years. Preliminary work will be performed at
mutually acceptable times in order to complete the engagement as expedi-
tiously as possible.
We will be happy to discuss any aspects of this proposal with you at your
convenience. If you are in agreement with the terms of this letter, please
sign one copy and return it for our files. We appreciate the opportuhity to
work with you and to continue our pleasant association.
Very truly yours,
Certifie~/Public Accountants
Accepted this day of , 1985.
Mayor - City 'of Salina, Kansas
City Clerk - City of Salina, Kansas
CITY OF SALINA
Salina, Kansas
APPENDIX A
FINANCIAL STATEMENTS TO BE EXAMINED BY KENNEDY AND COE
FOR THE YEAR ENDED DECEMBER 31, 1985
I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY
RECORDING ENCUMBRANCES
SUMMARY STATEMENT OF RECIEPTS, EXPENDITURES, AND BALANCES BY FUNDS AND
COMPARISON OF CASH BALANCES WITH ENCUMBRANCES
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH
BALANCES COMPARED WITH BUDGET
NOTES TO FINANCIAL STATEMENTS
II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE
III.
STATEMENT OF INDEBTEDNESS
COMPOSITIION OF ENDING CASH BALANCES
COMPARISION OF GROSS CASH'BALANCES WITH DEPOSITORY SECURITY
COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO AUTHORIZATIONS
STATEMENT OF ACTIVE FEDERAL AWARDS
THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES
SEPARATE FINANCIAL STATEMENTS - WATER
AND SEWERAGE DEPARTMENT
BALANCE SHEETS
STATEMENTS OF INCOME
STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS
STATEMENTS OF CHANGES IN FINANCIAL POSITION
NOTES TO FINANCIAL STATEMENTS