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Audit Report - 1968 ~-ri\ ¡,n ~J~ II< ""f> "F n'eEl'1 ,,"S M. J ".',"Oy. c", "'" (, ""'.'S'.!»! ",1'.ALlL'.'. c.). ~n.T¿ C C.Sl""'" S .P:::.. T-I I :N~ ..E~ .ð. .L I::7"¿, J;:j 0 :F;:' "-r A. u- r-.L'"' :F-.I 0 J~:I r-r Y' SAJ-,IN A :l,,1:UN-ICIPAL AIRPORT JOHN F. SCAN L.-\:, E"C'òti'~ y", p, "dcnt lER~!I:\AL IJCILDI:\G :\0. 120 PAUL S. WALL SALI:\A. KA:-'SAS 67401 June 13, 1969 - Genna! """";"' Gentlemen: A. H. Leckband and Co. have completed the annual audit of the Salina Airport Authority for the year 1968, and a copy of the audit report is enclosed. Both the Airport Revolving Fund and the Bond and Interest Fund ,{ere self- supporting. The Airport Revolving Fund resulted in a modest excess of receipts over dis- bursements of approxi~ately $20,000 for the year. The balance in this fund at the year's end was $154,530.00. The expenditures out of this fund are subject to accountability to the Federal Aviation Administration and may be expended only for airport expenditures because the facilities that a=e rente¿ and produce the income in this fund were given to the Airport Authority solely to produce support revenues for airport maintenance and expenditures. It is ccnternplated that capital expenditures out of this fund for airport activities during 1969 will exceed $100,000.00. The income from the Bond and Interest Fund for the year, exclusive of the sale of property which will be non-recurring, ,{as $56,783.20. The bond interest expense ,,!as $42,243.35, so the fUEd ",as self-supporting for the year, and no mill levy of any kind Has necessary in 1968. It is contemplated also that additional income will be generated in 1969 so that the bond interest and principal payments each year of approximately $57,000 will be met without the necessity of a mill lev)'. The balance in this fund at the year I s end was $235,985.04. A new rental building construction contract in the amount of $131,000.00 was let early in 1969, to be financed out of the money in this fund. It is anticipated also that the remaining balance Hill be used to finance ne", buildings to be rented to ne\{ industrial and commercial businesses. We now have approximately fifty separate businesses employing about 2000 people in the area, exclusive of the Waiting Wives and families which total 3000 women and children. Sincerely, '} l' , X ~ .;-;' ....:: ,~ '" ",~ \ SALgA AIRPORT AUTHORITY .<. '-", '-c" ~" ,! ~r i'-c~ "-\ ' ~r ,."\~"' ./ \' \~.)J M.. J. Kennedy Chairman / / SALINA AIRPORT AUTHORITY Salina, Kansas AUDIT REPORT Year 1968 A. H. LECKBAND & CO. Certified Public Accountants Salina, Kansas EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EÀ'1UBIT E E1.'HIBIT F SALINA AIRPORT AUTHORITY Table of Contents Auditor's Report Page 1 Comments 2 Statement of Receipts, Disbursements, and Composition of Ending Cash Balance Airport Revolving Fund Bond and Interest Fund 3 -4 5 Statement of Bonds of Indebtedness 6 Reconcilement of Fiscal Agency 7 Schedule of Investments 8 Insurance in Force 9 May 26, 1969 To the Directors Salina Airport Authority Salina, Kansas 67401 Gentlemen: We have examined the financial and related general records of the Salina Airport Authority for the year ended December 31, 1968. Our examination was performed in accordance with the provisions of the Minimum Standard Audit Program approved by the State Municipal Accounting Board, September 28, 1963, and included such tests as we considered necessary in the circumstances. In our opinion, the accompanying schedules reflect the cash position of the Salina Airport Authority at December 31, 1968, and the results of its cash transactions for the year then ended. il Ii' /,J ( d /Î ~ (?/']t'7l~ y- ¿¿5. IC ACCOJNTANTS CERTIFIED PU ¿~/ /....-, - :/ cjC' /" ,,7/ - , Euge e 0, Harrison, Certified Public Accountant, Certificate No. 1401, in charge of and actively engaged on this audit. 1 COlf'AENTS 1. The Salina Airport Authority is governed by a board of five directors appointed by the City Co~~ission of the City of Salina, Kansas. The following directors served during the period of our examination: M. J, Kennedy, Chairman C. J. Wertz, Vice-Chairman Edward H. Bell, Secretary-Treasurer Allen R. Dodge Dale Lyon 2. The following officials, appointed by the Salina Airport Authority Board of Directors, also served during the period of our examination: Paul Wall - Assistant Secretary - Appointed December 30, 1967 John F. Scanlan - Executive Vice-President - Appointed October 1, 1968 3. The Salina Airport Authority believes it is not subject: to the cash basis law of K.S.A. 10-1116 as stated in the audit reports of prior years. 4. Warrant checks were not signed by three officials as required by K.S.A. 10-803 and K.S.A. 10-805 as amended by the 1968 Kansas Legislature. With this exception, all cash receipts and disbursements appear to have been properly made and accounted for. 5. We recommend that a determination of the values of the plant and property assets be recorded on the books and that a realistic depreciation char be computed and recorded annually. 2 S~LINA AIR?CR7 AUTHORITY AIRPORT REVOLVI:\G FUND EXHIBIT A ----- --.-----.. STATE1.2:'\T OF RECEIPTS, DIS BUL.... J.ENTS , A~; CC:'IPOSITIO~ OF ENDING CASH BALANCE Janua:y 1 to December 31, 1968 CAsrr AND INVEST,ŒNTS - Ja,-¡uary 1, 1968 RECEIPTS Building rents Agricultural land rencs Fixed base operator Landing fees Comlllissions Ad valorem tax Interest on investments Reimbursement of expenditures Miscellaneous income TOTAL RECEIPTS RECEIPTS AND BEGINNING BALANCE DIS3URSEMENTS Office and Administrative Office salaries Office supplies Postage Car expense Travel expense Legal and auditing Insurance Property tax Interest Engineering Office equipment rental Social security tax Employee retirement Telephone Other office and administrative Expense: Maintenance Expense: Building maintenance Runways, taxiways and ramps Equipment gas, oil and repair Utilities Ground maintenance Janitor supplies Maintenance salaries Snow removal Airfield lighting Signs Other maintenance expense $ 20,389.38 412.94 99.36 454.10 243.46 2,936.11 10,199.11 22,565.75 10.33 3,150.00 127.08 2,085.43 643.55 1,004.37 expense 1,573,13 $ 7,904.97 23,278.48 3,246.52 10,331.23 624.81 404.74 36,826.23 412.00 360.69 40.00 10,088,33 $134,085.74 5,150.00 18,409.73 10,603.:50 1,035.96 2,300.22 6,543.51 24.36 967.75 $ 65,894.10 93,518.00 $111,484.61 179,120.77 $290,605.38 3 SALIXA AIRPœ:c AUTHORITY A I,,? 01<.':::' . C \T~~?':G FUND EXHIBIT .-\ -- S':'ATEMENT OF RECEIPTS, DISBURSEl,:ŒNlS, .-'.?';::; CCYPCSITION OF ENDING CASH BALAKCE January 1 to December 31, 1968 Capital Expenditures: Bench grinder, drill press, operaLional kit, and motor TOTAL DISBURSEMENTS CASH fu~D INVESTMENTS - December 31, 1968 AVAILABLE CASH AND INíJEST:'fENTS - December 31, 1968 First National Bank and Trust Company - Checking Planters State Bank - Checking account U. S. Treasury Bills TOTAL DEDUCT - Amounts withhe1a from payroll Due to Bond and Interest Fund TOTAL CASH AND INVESTI'ŒNTS - December 31, 1968 account 101.95 $ 1,807.99 75.00 159,514.05 S131.091.33 $ 2,842.42 2,829.90 127,302.00 $132,974.32 1.882.99 $13 L 0 9.LJ..l 4 S':'.LINA AIRPŒZT ':ÚJTì-i.ORITY EOXD "ND ISTi-:cŒST FUND EXHIBIT B ------.- STAT~MENT OF RECEIPTS, DISBURSEHEW':S. A:\D C:O~lPOSITION OF ENDING CASH BALAKCE January 1 co Dec¿~ber 31, 1~u8 CASH AND INVES~Œ~lS - January 1, 1968 RECEIPTS Build ing rents Agricultural land rents i::.mgar rents Other rents Sale of property Interest on investments Miscellaneous income TOTAL RECEIPTS RECEIPTS AND BEGINNING BALANCE DISBURSDlliNTS Bond interest expense Bond cohmission and posta;e Construction of Building #266 TOTAL DISBURSEMENTS CASH AND INVESTMENTS - December 31, 1968 AVAILABLE CASH AND IN\ŒST~ŒNTS - December 3~, 1968 National Bank of America - Checking account U. S. Treasury Bills Due from Airport Revolving Fund TOTAL CASH AND INVEST~ŒNTS - December 31, 1968 $ 23,515.00 10,502.00 11,250 .00 485.';.6 112,000.00 9,246.87 1,783.87 $ 42,243.35 18, :~6 5,850.00 $115,313.35 168,783.20 $284,096.55 48,111.51 5235.985.04 $ 7,063.75 228,8L¡.6.29 75.00 5235.985.04 5 SALINA AIRPO~T AUTHORITY BONDS "lê LJ);~BTEDNESS ~~~_..~er 31, 1968 General Obligation Bonds d&ted February 1, 1967, issued for the purpose of acquiring surplus property from the United StaLes. TOTAL BONDS OUTSTANDING - December 31, 1968 EXHIB IT C ::!a turi ty Inten,s t D,_ce Rate Total 2-1-69 4.25 $ 30,000.00 2-1-70 4.25 30,000.00 2-1-ì 1 4.25 35,000.00 2-1-72 4.25 35,000.00 2-1-73 4.25 35,000.00 2-1-74 3.375 35,000.00 2-1-75 3.375 35,000.00 2-1-76 3.375 35,000.00 2-1-77 3.375 40,00,0 .00 2-1-78 3.375 40,000.00 2-1-79 3.375 40,000.00 2-1-80 3.375 40,000.00 2-1-81 3.3 j' 5 45,000.00 2-1-82 3.375 45,000.00 2-1-83 3.375 45,0[::;.00 2-1-84 3.4 45,000.00 2 -1-85 3.4 45,000.00 2-1-86 3.4 45,000.00 2-1-87 3.4 45,000.00 2-1-88 3.4 L;-5..JOO .00 ~790.000.00 6 SALINA AIRPOR'.L AUTHORITY RECONCILE~fL\:T OF FISCAL AGENCY ACCOUNT December 31, 1968 BALili~CE WITH FISCAL AGENCY - January 1, 1968 RENITTANCE S Interest coupons COMilission and postage TOTAL REMITTANCES AND B~GINNING BALANCE RETURNS Interest coupons paid CoTI@ission and postage retained BALANCE WITH FISCAL AGENCY - December 31, 1968 $ 42,243.35 18.16 :;> 42,243.35 18.16 EXHIBIT D $ 42,261. 51 $ 42,261.51 42,261.51 s 7 AIRPORT REVOLVING FUND U. S. Treasury Bills BOND AND INTEREST FUND U. S. Treasury Bills Sh~INA AIRPORT AUTHORITY SC:'è~:'JLE OF INVEST1'fENTS December 31, 1968 Balance- 1-1. ".. :.~ ~~) 23,53 9 ...Q~2 S 79,057.95 Purchases 1968 SS17.056.90 .$gSL541.47 Redemptions 1968 ll.U. 293.95 $701, 753 . :.3 EXHIBIT E Balance 12-31-68 .$127,302.JO $228.846.29 8 Workmen's Compensation Comprehensive General Liability Aircraft Hangar Aircraft Hangar Aircraft Hangar Rental Buildings - Industrial Rental Building - Dwellings Airport Terminal and Rental Buildings SALINA AIRPORT AUTHORITY INSURANCE IX FORCE December 3~, 1968 TYDe of Cover¿2¿ Fire and lightning, ex- tended coverage, van¿alism and malicious mischier Fire and lightning, ex- tended coverage, vandalism and malicious mischief Fire and lightning, ex- tended coverage, vandalism and malicious mischief Fire and lightning, ex- tended coverage, rental value insurance Fire and lightning, ex- tended coverage Fire, lightning, windstorm and hail, explosion, riots, aircraft and vehicles, smoke Bodily injury Property damage $ Amount or Coverage - 100,000.00 1,000,000.00 40,000.00 40,000.00 20,000.00 162,989.00 37,000.00 1,500,000.00 1/1,000,000.00 1/1,000,000.00 EXHIBIT F Co-Insurance Percentage 80 90 80 90 9