Audit - 2009/2010 �
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� SALINA-SALINE COUNTY BOARD OF HEALTH
' Salina, Kansas
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' FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
� December 31, 2010 and 2009
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' CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
' SALINA, KANSAS
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� SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
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TABLE OF CONTENTS
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FINANCIAL SECTION
, INDEPENDENT AUDITORS' REPORT 1-2
1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3
Exhibit I BALANCE SHEETS 4
� Exhibit II STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
FUND EQUITY -BUDGET AND ACTUAL 5
Exhibit III STATEMENTS OF CASH FLOWS 6
� NOTES TO FINANCIAL STATEMENTS 7-10
' SUPPLEMENTAL INFORMATION
Schedule 1 GRANTS FROM THE STATE OF KANSAS 11
' Schedule 2 FEES FOR SERVICES �2
� SINGLE AUDIT SECTION
INDEPENDENT AUDITORS' REPORT ON IN7ERNAL 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
' INDEPENDENTAUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 15-16
., SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 17
' NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 18
SCHEDULE OF FINDINGS AND QUESTIONE� COSTS �9
' CORRECTIVE ACTION PLAN 20
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 2�
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SALINA-SALWE COUNTY BOARD OF HEALTH
' Salina, Kansas
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� FINANCIAL SECTION
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� CLU�II�E&
' ��E�L�E INDEPENDENTAUDITORS' REPORT
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To the Governing Board
, C�nf�d Publtr Aa��a�cc 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, 2010 and 2009 as
listed in fhe table of contents. These financial statements are the responsibility of the
Board of Health's management. Our responsibility is to express opinions on these financial
statements based on our audits.
' We conducted our audits in accordance with auditing standards generally accepted in the
Roten i.qubine,c.P.a. United States of America, the standards applicable to financial audits contained in
' oavid a,.Retteie,c.P.n. Government Auditing Standards, issued by the Comptroller General of the United States
�ay o. �an9iey,c.a.n. and the Kansas Municipa!Audit Guide, prescribed by the Director of Accounts and
�on K.aeii,c.P.n. Reports, Department of Administration of the State of Kansas. Those standards require
Leslie M.Corbett,C.P.A. th8t W2 lan and perform the audit to obtain reasonable assurance about whether the
Stacy J.Osner, C.P.A. p
' financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disciosures in the financial statements.
Marci K. Foz,c.P.n. An audit also incfudes assessing the accounting principles used and significant estimates
John T.Millikin,C.P.A. rpad2 b mana� ement, as well as evaluatin the overall financial statement resentation.
' linda A.Suelter,C.P.A. Y 9 9 p
We believe that our audits provide a reasonable basis for our opinions.
As described in Note 1. B.(2), management has not included the capitalization and
, depreciation of property and equipment, which should be included In o�der 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 financiai statements referred to above present fairly, in ail
material respects, the financial position of the Salina-Saline County Board of Health at
December 31, 2010 and 2009, and changes in financial position and cash flows for the
' years then ended in conformity with accounting principles gerierally accepted in the United
States of America.
� In accordance with Government Audrting Standards, we have also issued our report dated
August 17, 2011 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, contrects, and grant agreements and other matters. The purpose of that
2is Soutn santa Fe report is to describe the scope of our testing of internal control over financial reporting and
' P.o. sox zzs� compliance and the results of that testing, and not to provide an opinion on the internal
saiina, Kansas control over financial reporting or on compliance. That report is an integral part of an audit
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performed in accordance with Government Auditing Standards and should be considered
' in assessing the results of our audit.
saiina Accounting principles generally accepted in the United States of America require that the
�es�azs-sa�s managemenYs discussion and analysis on page 3 be presented to supplement the basic
'. saiina Fax. financial statements. Such information, although not a part of the basic financial
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statements, is required by the Governmental Accounting Standards Board,who considers
euswortn it to be an essential part of financial reporting for placing the basic financial statements in
' �785l472-3915 an appropriate operational, economic or historical context. We have applied certain limited
Ellsworth Fax procedures to the required supplementary information in accordance with auditing
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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 evide�ce to
express an opinion or provide any assurance.
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' Our audits were conducted for the purpose of forming opinions on the basic financial statements taken as a whole.
The supplemental information o� pages 11 and 12 is presented tor 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 supplemental information and the schedule of expenditures of federal
t awards are the responsibility of management and were derived from and relate 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 financiai
' statements or to the financial statements themseNes and other additional procedures in accordance with audlfing
standards generally accepted in the United States of America. In our opinion, tlie information is fairly stated in all
" material respecta in relation to the financial statements as a whole.
� Respectfully submitted,
\`��M.�a/V.�Ul�`�7_ �"""—�
' CLUBINE AND RETTELE, CHARTERED
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' August 17, 2011
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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 Heatth's financial
statements an overview and analysis of the Salina-Saline County Boerd of Health's financial activities for the year
ended December 31, 2010. Please read it in conjunction with the Board's financial statements which begin on page 4.
' Financial Hiqhliqhts
1. A natural gas generator was installed that allows minimum phone, intemet and electricify in the event of a power
' outage. ,
2. Installed a new WIC service window in the clinic to assist with client flow upon check-in.
3:. A large screen television and compute[were installed in the large conference room for department educational
and other community presentations.
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Condensed Financial Information
' 2010 2009
Total Assets $ 2,332,904 $ 2,200,333
Total Liabilities (556,275) (682,916)
' Deferred Income (16,537) (18,088)
TotalFundEquity $ 1,760,092 $ 1,499,329
' Revenues
Appropriations $ 1,790,225 $ 1,790,225
Grants 914,637 . 861,544
' Feesforservices �"1,118,653 1,060,021
Interest income 2,466 1,725
Miscellaneous 301,396 259,937
' Total Revenues 4,127,377 3,973,452
Expenses
Personal services 3,127,890 3,133,876
' , Contractual services 291,979 302,417
Expendable supplies 446,745 506,090
' Total Expenses 3,866,614 3,942,383
Excess of Revenue over Expenses 260,763 31,069
' Beginning Fund Equity 1,499,329 1,468,260
Ending Fund Equity $ 1,760,092 $ 1,499,329
, Future
' 1: Additional home health soflware and laptops will be purchased to assist the home health nurses in the field.
2. There will be potential costs in the next one to lwo years to apply for national accreditation recognition.
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' SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' Exhibit I
' BALANCE SHEETS
� ASSETS
, December 31,
' 2010 2009
Cash 5 1,905,850 $ 1,808,919
' Accounts receivable
State of Kansas (Note 5) 104,270 104,820
Medicare and Medicaid 201,129 159,885
Other care services 121,655 126,709
' Totals 5 2,332,904 $ 2,200,333
' LIABILITIES'AND FUND EQUITY
Liabilities
' Vouchers payable $ 41,630 $ 32,656
Accrued salaries 42,926 126,748
Accrued liability for compensated absences 260,824 269,775
' Animal Shelter Reward fund payable 210,895 253,737
Total Liabilities 556,275 682,916
tDeferred Income (Note 5) 16,537 18,088
Fund Equity
' Unrestricted
Designated for Health Department 1,585,836 1,321,254
Designated for Animal Shelter 174,256 178,075
' Total Fund Equity 1,760,092 1,499,329
Totals � 2,332,904 � 2,200,333
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' The accompanying notes are an integral part
of these financial statements.
' (4)
, SALINA-SALINE COUNTY BOARD OF HEALTN
Salina, Kansas
Exhibit II
' STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
FUND EQUIIY- BUDGET AND ACTUAL
' For the Year Ended December 31,
2010 2009
Actual Budget Actual Budget
' Retenues
Appropnation from Saline County, Kansas (Note 4) S 772,124 $ 772,124 $ 772,124 $ 772,124
AppropnationfromCityofSalina, Kansas (Note4) 1,018,101 1,018,101 1,018,101 1,018,101
Grants ftnm the State ofKansas 9}5,957 872,069 862,504 863,522
' Feesforsen,ices 1,117,253 1,129,988 1,D60,021 1,062,000
Interestincome 2,466 1,000 1,725 10,800
Miscellaneous re�enues 301,476 170,578 258,977 254,320
' Total Reeenues 4,127,377 3,963,860 3,973,452 3,980,867
Expenses
' Personal SeNices
Salaries 2,289,272 2,308,819 2,322,978 2,349,616
Social security 167,212 176,737 159,621 180,227
Retirement 161,430 162,127 128,225 137,758
, Healthinsurance 317,671 339,975 351,314 329,910
Unemployment insurance 8,575 8,358 6,190 2,356
Professionalservices 183,730 151,485 165,548 268,000
' Contractual sertices
Auditing 8,000 8,000 8,300 8,000
Accounting 850 700 700 800
' Building and grounds -Remodeling and repair 30,975 11,571 9,957 14,000
Telephone 31,549 26,176 23,771 30,000
Mileage 54,362 62,692 56,966 80,000
1 SeMCe contracts and equipmentlease 91,083 58,OOD 85,343 73,000
I�surance 75,160 87,000 117,380 75,000
Expendable supplies
Office supplies 64,196 34,438 41,991 35,600
, Postage and express 10,321 16,000 9,921 14,500
Books, dues and subscnptions 5,395 5,450 4,362 5,500
Equipment maintenance and repair 125 1,200 1,802 1,600
' Gasoline and oil 10,564 13,500 7,317 12,000
Clinical and medical supplies 103,041 145,431 153,269 160,00�
Chemicals 1,441 4,538 3,262 8,000
' Animal supplies and donation tund expenses 19,644 24,000 95,617 25,000
ShelterreTund 59,045 48,000 55,122 45,000
Professional meetings 15,732 22,792 18,206 25,000
, Utilities and water 53,917 55,000 50,976 65,000
Custodial services 12,415 6,535 4,804 5,000
Health education 68,488 34,463 59,416 30,000
Miscellaneous expense - 1,500 25 -
, Capital equipment 22,421 48,000 - -
Total Expenses 3,866,614 3,862,487 3,942,383 3,980,867
1 Excess of Re+.enues o�.er Expenses 260,763 S 101,373 31,069 $ -
Fund Equity, January 1 1,499,329 1,468,260
' FundEquity, December31 $ 1,760,092 $ 1,499,329
The accompanying notes are an integral part
of these financial statements
' (5)
1 SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' Exhibit III
' STATEMENTS OF CASH FLOWS
For the Year Ended
' Decem be r 31,
2010 2009
Cash Flows From Operating Activities
' Saline County, Kansas $ 772,124 $ 772,124
CityofSalina, Kansas 1,018,101 1,018,101
Grants 907,524 916,521
' Fees 1,090,046 1,126,130
Miscellaneous 301,476 295,232
Interest income 2,466 1,725
Cash paid to suppliers and others (1,612,761) (1,516,233)
' Cash paid to employees for services (2,382,045) (2 292,245)
Net Cash Provided by Operating Activities 96,931 321,355
' Increasein Cash 96,931 321,355
Cash at Beginning of Year 1,8Q8,919 1,487,564
' Cash at End of Year $ 1,905,850 $ 1,808,919
RECONCILIATION OF EXCESS OF REVENUES OVER EXPENSES
' TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Excess of Revenues over Expenses- Exhibit II � 260,763 � 31,069
' Adjustments to reconcile excess of revenues over
expenses to net cash provided by operating activities
' Decrease (Increase) in accounts receivable (35,640) 163,533
Increase (Decrease) in vouchers payable 8,974 (2D,209)
Decreasein accrued salaries (83,s22) (2,239)
' Increase (Decrease) in accrued compensated absences (8,951) 32,972
Increase(Decrease) in Animal Shelter Reward fund payable (42,842) 123,380
Decrease in deferred income (1,551) (7,151)
1 Total Adjustments (163,832) 290,286
Net Cash Provided by Operating Activities $ 96,931 $ 321,355
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' The accompanying notes are an integral part
of these financial statements.
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' SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
1 1. Summary of Signifcant 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 counry arid city. The Governing Body of the
' Board of Health is composed of eleven members, three appointed Ciry 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 Counry 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.
1 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.
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' (7)
� 3. Deposits and Investments
' Deposits-The carrying amount of the Board of Health's deposits were $1,890,287 and $1,800,975, and the bank
balances were $2,110,171 and S1,848,370 at December 31, 2010 and 2009, respectively. The differences are
cash on hand, outstanding checks and deposits. In accordance with Kansas statutes, collateral securities were
held underjoint custody receipts issued by a third-party bank, which is independent of the depository financial
, institution, to secure balances in excess of the $250,000 FDIC coverage.
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:
' 2010 2009
Saline County, Kansas
Regular tax appropriation S 772,124 $ 772,124
' City of Salina, Kansas
Regulartaxappropriation � 1,018,101 $ 1,018,101
' 5. Grants from the State of Kansas
Agreements were in effect during 2010 and 2009 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, 2011.
Unless specifically noted, the grants are payable 25% on or about July 1, and 12.5°/o 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
tMatemal 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 $34,267.
' 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 agreemanl provides that the Board of Health wilf be
' reimbursed monthly for actual expenses up to$298,444, 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
cur�ent agreement provides that the Board of Health will receive S53,338.
, AIDS Health Education/Risk Reduction Program
Funds are provided to identify, coordinate, and provide public information and education regarding
Acquired Immune Deficiency Syndrome. The agreement was not renewed at July 1, 2010. The Board of
Health received the remaining award for the June 30, 2010 fiscal year end contract.
1 Child Care Institutions Licensing Program
Funds are provided for the evaluation, registration, and licensing of homes and/or centers caring for
t children. The current agreement provides that the Board of Health will receive $71,000 payable in quarterly
amounts based on number of licenses issued.
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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
' $37,622 which includes 526,908 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 currenl agreement provides that the Board of Health will receive $196,883
which includes $38,876 for the specific threat of panademic influenza and $110,985 earmarked for H1N1
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. The Board of Health received $4,800 in 2010. This program was terminated effective January 9,
2010.
' 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 $38,719 payable in
' quarterly installments.
HIV Counseling and Testing Site Program
Funds are provided for the counseling and testing of Acquired Immune Deficiency Syndrome. The
, agreement was not renewed at July 1, 2010. The Board of Health received the remaining award for the
June 30, 2010 fiscal year end contract.
Local Environmentai 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$33,073.
, 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 53,000.
' 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, 2010 and 2009:
� December31,
' 2010 2009
Accounts Receivable
' H1N1 Public Health Emergency Response $ - 5 68,579
Special Supplemental Food Program for
Women, Infants, and Children 83,861
Public Health Emergency Preparedness 13,908 12,229
' Food Service Licensing Program - 23,384
Tuberculosis Control Program 118 628
Total Accounts Receivable � 97,887 $ 104,820
' Deferred Income
Local Environmental Protection Program $ 16,537 S 18,088
' 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)
� 7. Defined Benefit Pension Plan
1 Plan Description: The Board of Health participates in the Kansas Pubiic 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 intormation. 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°/o of covered salary.
The employer collects and remits member-employee contributions according to the provisions of section 414(h) of the
Internai Revenue Code. State law provides that the employer contribution rate be determined annually based on the
' results of an annuai 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
2010 was 7.14%. Included in this rate is the contribution for Group Death and Disability Insurance of 1.00%. From
April 1, 2010 through June 30, 2010, there was a moratorium on the collection of the premium of 1.00°/o of the Group
' Death and Disability Insurance rate. The Board of Health employer contributions to KPERS for the years ended
December 31,201Q,2009 and 2008 were$161,43�, $128,225 and�123,843, respectivefy, equal to ihe required
contrihutions 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$42,829 and $37,604 for the years ending December 31, 2010 and 2009, respectively. Future minimum
rental payments required under the lease are as follows:
' December 31, 2011 $ 36,396
December 31, 2012 36,396
December 31, 2D13 �s.�98
' 9. Other Post Employment Benefits
' As a joint venture between Salina County and the City of Salina, the Board of Health participates in the Ciry'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 8oard of Heaith is not
required to make contributions to the plan.
' The OPEB cost, actuarial valuations of the ongoing plan and net OPEB obligations for the Board of Heaith as a sub-
group of the plan, are calculated and recorded in the City's Comprehensive Annual Financial Report.
' 10. Subsequent Events
The Board of Health's management has evaluated events and transactions occurring after December 31, 2010
through August 17, 2011. The aforementioned date represents the date the financial statements were available to be
� issued.
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SALINA-SALINE COUNTY BOARD OF HEALTH
' Salina, Kansas
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� SUPPLEMENTALINFORMATION
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, SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' Schedule 1
, GRANTS FROM THE STATE OF KANSAS
For the Year Ended
' December 31,
2010 2009
Federal Programs
� Maternal and Child Health Program S 74,625 $ 74,626
Family Planning Program 36,170 38,519
Women, Infants and Children Supplemental Food Program 325,071 219,217
1 Women, Infants and Children Immunization Collaboration 27,013 20,407
HIV Case Management 56,669 60,000
Child Care Licensing Program 71,000 71,000
Immunization Action Plan 10,914 10,997
' Lead Poisoning Prevention 1,400 3,075
Public Health Preparedness and Response Program 197,076 222,516
AIDS Health Education/Risk Reduction Program 4,320 8,413
' Immunization and Vaccines for Children 4,375 -
Total Federal Programs 808,633 728,770
' State Programs
Food Service Licensing Program 4,800 40,824
General Health Services- State Formula Grant 38,914 39,265
, Local Environmental Protection Program 58,001 43,327
HIV Counseling and Testing Site Program 4,371 6,248
Tuberculosis Control Program 1,238 4,070
' Total State Programs 107,324 133,734
Total Grants $ 915,957 $ 862,504
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1 SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' Schedule 2
1 FEES FOR SERVICES
For the Year Ended
December 31,
, 2010 2009
Title XVIII $ 456,949 $ 394,219
� TitIeXIX 250,980 261,124
Patients and insurance 130,650 82,065
Home care services 28,338 27,086
' Homemakerservices 5,800 6,314
Family planning services 27,420 32,980
General nursing clinlcs 14,596 16,818
Environmental health fees 34,028 27,620
' Day care provider fees 14,949 12,820
Senior care fees 2,752 �,9�8
Immunizations 150,791 197,177
' Total Fees for Services $ 1,117,253 $ 1,060,201
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' SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
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� CLUBINE �NDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
' '[��+�� RE OCCORDANCE WI HOGOVERNMEN A�UDT T/NG SFTOANDARDSED
i�G
, Certi(ied Public Acroumm�ts
' � 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
tzoben i.ctub�ne,c.P.n. and for the years ended December 31, 2010 and 2009 and have issued our report thereon
David A.Rettele,C.P.A. dat2d AUgUSt 17, 2011. We conducted our audit in accordance with auditing standards
' �ay o, �an9iey,c.P.n. generally accepted in the United States of America, the standards applicable to
�on K. eeu,C.a.n. Government Audifing Sfandards, issued by the Comptroller General of the United States
�esiie M.corben,c.P.n. and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and
Slacy J. Osner,C.P.A.
' Reports, Department of the Administration of the State of Kansas.
n�tarci rc.Fox,C.P.n. Internal Control Over Financial Reqortinq
John T. Millikin,C.P.A.
' Linda A.Suelter,C.P.A.
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 fnancial 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
' 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
218 South Santa Fe deficiencies in internal control that might be significant deficiencies or materiai
1 P o eoz zzs� weaknesses We did not identify any deficiencies in internal control over financial reporting
Salina,Kansas that we consider to be material weaknesses, as defined above.
67402-2267
, Compliance and Other Matters
saiina As part of obtaining reasonable assurance about whether Salina-Saline County Board of
785!825-5479 � HB81th's financial statements are free of material misstatement, we performed tests of its
1 saiina Fax compliance with certain provisions of laws, regulations, contracts and grant agreements,
785/825-2446
noncompliance with which could have a direct and material effect on the determination of
Ellsworth financial statement amounts. However, providing an opinion on compliance with those �
' 785/4723915 provisions was not an objective of our audit and, accordingly, we do not express such an
Ellsworth Fax opinion. The results of our tests disclosed no instances of noncompliance that are required
785!472-5478
to be reported under Government Auditing Standards.
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, This report is intended for the information and use of the governing board, management, others within the organization
' and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone
other than these specified parties.
Respectfully submitted,
� l��W-�^^�`^� l�-��h-"'�'""'-
CLUBINE AND RETTELE, CHARTERED
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' CLUBINE �NDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS
' ��& APOVER COMPL NCE I�N AOCCORDANCE WIT�H OMB CIRCULAR A-�ROL
' Crrd�ed Publir An-oun�unu 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. Otfrce of Management and Budget
' (OMB) CrrcularA-i33 Compliance Supplement that are applicable to each of its major
federal programs for the year ended December 31, 2010. Salina-Saline County Board of
Robert I.Clubine, C.P.A. H281fh's major federal programs are identifed in�the summary of auditor's results section of
oavid n.Retteie,c.a.n. the accompanying schedule of findings and questioned costs. Compliance with the
' �ay o.�an9iey,c.a.n. requirements of laws, regulations, contracts and grants applicable to each of its major
�on K.eeii,c.P.a. federal programs is the responsibility of Salina-Saline County Board of Health's
Leslie M.Corbett,C.P.A.
scacy a.osner,C.P.n. management. Our responsibility is to express an opinion on Salina-Saline County Board of
' Health's compliance based on our audit.
n�tarci K.Fox,c.a.a. We conducted our audit of compliance in accordance with auditing standards generally
�onn r. M�u�w�,c.a.n. accepted in the United States of America; the standards applicable to financial audits
, �inda n.suei�er,c.a.n. 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 Saiina-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 ali material respects, with
the requirements referred to above that are applicable to each of its major federal
' programs for the year ended December 31, 2010.
Internal Control Over Comaliance
1 218 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
a�aoz-zzs� 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
saiina expressing our opinion on compliance and to test and report on internal control over
785 f 825-5479 compliance in accordance with OMB CircularA-133, but not for the purpose of expressing
' saiina Fax an o inion on the effectiveness of internal control over compliance. Accordingly, we do not
7B5!825-2446 p
express an opinion on the effectiveness of Salina-Saline County Board of Health's internal
Euswortn control over compliance.
, 785/4723915
Ellsworth Fax A deficiency in internal control over compliance exists when the design or operation of a
785!472-5478 control does not allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect and correct noncompiiance with a type of
1 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 there is a reasonable possibility that material
� noncompliance with a type of compiianoe requirement of a federal program will not be
prevented or detecied and corrected on a timely basis.
' (15)
1 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 controi over that might be 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.
' Res ectf�tted, F-�""_
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' CLUBINE AND RETTELE, CHARTERED
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/ SALINA-SALINE COUNTY 80ARD OF HEALTH
Salina, Kansas
' SCHEDULE OF EXPENDITURES OF FEDER.4L AWARDS
For the Year Ended December 31, 2010
' Federal
CFDA Federal
Federal Grantor/Pass-Through Grantor/Program Title Number Expenditures
� U.S. DepartmentofAqriculture
' Passed Through State of Kansas Department of Health and Entironment
Special Supplemental Nutrition Program for Women,
Infants and Children 10.557 $ 325,071
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U S Department of Health and Human Services
' Passed Through State of Kansas Department of Health and En�ironment
, Maternal and Child Health Sen�ices 93.994 74,625
Family Planning - Services 93.217 36,170
' - Immunization Action Plan 93.268 10,914
Women, Infants and Children Immunization Collaboration �93.268 27,013
, Acquired Immunodeficiency Syndrome (AIDS) Acti�ity
AIDS/HERR 93.118 4,320
HIV Case Management 93.917 56,669
' Child Welfare Sen-ices
Child Care Institutions Licensing 93.596 71,000
' ARRA-317, Immunization and Vaccines for Children 93.712 4,375
' Lead Poisoning Pre�ention 66.707 1,400
Bioterrorism
' Public Health Preparedness and Response 93.069 197,076
Total $ 808,633
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The accompanying notes are an integral part
' of these financial statements.
(17)
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' SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2010
' 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, Loca!
Governments, and Non-Profit Organizafions.
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1 SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2010
' 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
1 Internal control over major programs:
Material weakness(es) identified? No
' Significant deficiencies identified that are
not considered to be material weakness(es) None reported
1 Type of auditor's report issued on compfiance Por major programs: Unqualified
Any audit findings disclosed that are required to be reported
' in accordance with section 510(a) of Circular A-133? No
Identification of Maior proqrams:
1 10.557 Special Supplemental Food Program
for Women, Infants and Children
' 93.994 Matemal and Chlld Health Services
93.596 Child Care Institutions Licensing
' Dollar threshold used to distinguish between type A
and type B programs: � 300,000
' Auditee qualified as low-risk auditee: No
Section II - Financial Statement Findin s:
' None
' Section III - Federal Award Findinqs and Questioned Costs:
None
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' SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' CORRECTIVE ACTION PLAN
For the Year Ended December 31, 2010
' None required.
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' SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
' SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended December 31, 2010
� There are no prior audit findings.
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