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Audit Report - 1969 ,'1-' '.,. ".", ,. "">.f SALIN A AIRFOR T A 1:JT:H:OR:rT"Y SALINA MUNICIPAL AIRPORT JOHN F SCAN! " E"""M V", h," Ilk" I , \! f¡ ¡ I [ I> I "'.. ,,() I: (0 PALl S "AI I ("",,,1 ".".,." , \ \ '.\'\S.\,S b"40[ Februarv 4, 1970 Gentlemen: We are pleased to submit th~ annual [ina¡¡cial report of the Salina Airport Authority for the year 1969, as presentt:'d j)\' A. H. Lechband and Company, Certified Public Accountants. This has been an eventful year for the Salina Airport Authority. High on the list, of course, was the unfortunate tornado wbich st ruck tbe center of the area and which seriously threatened Beech I s Salina operati,)[l. FI.Jr a few hectic hours, the possibility was considered of moving the entire spare parts in- ventory back to Wich.ita. Fortunately, Salina contractors were able to concen- trate on repairing and rehabiLitating the damaged buildings. All repairs and rehabilitation resulting fr"m the tornado have been substantially completed. This has been the result of help fn'm insurance coverage and the Federal Disaster Relief funds. The federal funds were obtained because of strong help and assistance from Senator Pearson, Senator Dole, and Governor Docking. With- out these funds a three mill tax lev ~uuld probably have been necessary. We are happy to report that we have interestp(j two top-flight air lines tn use our fine facilities for their crew flight training--Northwest Airlines an(1 T.W.A. We are particularly happy that till' famous ì47s of l.W.A. are training its crews here in Salina. As a part ) ~ his t raining program we have opened up our tremendous fuel tank farn, ai,- rl:~iu(,in¡: I" tor r,~tueling jet aircraft. This is going to open up trerneL.:OI¡-O; ,,"teut lal in rèfueling of transient p ¡ Hies. An arrangement has been mil,le wit I, " "-;';1 c Ai r Command for its dispersal t'ro- gram which will inr'iud,' air raft tueL. uur Fxec'lLlve Vi('t' ¡'resident, "Mike" Scanlan, is the man to s tlute ~i' this situation. In the field of industrial development, tile Authority is happy to report the building of a 12,000 square toot facility for Tony's Inc. Also of equa: im- portance is the fact that Rickel Inc. moved its plant to manufacture agri- cultural equipment to the Salina Ai rpC1r, Industrial Center. rhis firm has a potential for one of the real succesc nllsinesses we have ever had. Thev started with 14 people and now have increased t",~O emF Loyees. During the year the Saline County ;.:hops and administrative en~i' t:'e'ring ot! 1,'es moved to their new site at the Salina Airp,'[t Industrial C"'iìLt..'r. Newan re- modeled facilities make their net,..' fwme d welcome addition. '" ' !' ~: ' - I ,-;,:, i'o- ,1 , .,,- , ) , " , ~, "',;:. t. I "1 ~ ~ , :, I :, ~ ,te H:~I'Wd\' Depar'¡:>~'r': and ti,e ~al ij,: " r;urL c',,' most UP-L,' dar t: ,'r~L:;h :1' , :, c1 ; ; I,d r '." ;-,: r (' 1. ",,1 1 ! U, (- t, i,' k ., ¡. ,- : . j , .'. J: "..1 This :,"'03; tie h.¡er;i.l AVe.!: I'll \lb.i .'rat to a cümC1t:'lelv re;;l.'dlded :HI LL',,: <ilia, t': I This is d ver', 1.] ne La,- ] 1 j tv. :~,c \' '.'" ;. ~ " (it 'L.r " .r ~, é' r ¡ e St , i ,n1 r l te r; n" i hui ] 19 The control tower, opera ,~'d :¡"e Feje",¡[ \via: i,'n Adrninicc: rat ion under the capab:e guidance of Wall'! 1:1','<:";, rep( res a tren:: idOllS Ì;iCrf:ase l'>ÍS last year in activity as follows: 1969 totaled 7\.'f¡j ope rat: !Iii l(¡68 t.)taled ~L,..dl ('rerations Frontier Airlines substantiaJlv imprc'ved Sp v and operatin~ results this year and they hope to increase Its performance and service to its customers " the coming year. Beech Aircraft Corporation, the lalhest user of our facilities, increased its activities in Salina during the year, in spite of the tornad,) dnd a ,ompany- wide strike. We are particularly inder'è:1 to Beech ft,r the fi:1e cooperat.,Jll we received from the Salina officials and the ì~i,'[¡ita urficials during t:'t' trying period of recovery and rehabiliLatl,'n from tne effect:' uf t), tornddo, During the year a change occur:ed In thE' pers,)nnel of the '-Ii Ina Airport Authority. Allan Dodge, an original member at the Auth,)Tity from its lnception, rl"JUestt:'r1 to be relieved of his duties because of the pressure of perÞJnal business re- quirements. Mr. Dodge has the deep apprec iation of all the members f t tiP Authority for the long and faithful !I,1urs he contI lbuted to the we} t are the Authority, and we will continue to call ,m him for advice in his special t ields in the future. His successor, Mr. Cha;! es Heath, is we] 'omed as a new m~..."her who has not only been successful as a ¡'us j ness man. but has al so prevL contributed generouslv of hi;', time :md talents to \ ommunity affairs ii- Representative of the Salina Distri~[. : , te The year 1970 promises to be d vet" ex\'iting \C.',tr. Among the mort' dnportant plans are: (a) The expansion ,-,j fj fght training .)[(,.;rams "f 'najor air 1 ines at the airport, particularly training of Îf.7 crews by r.W.A. d:1d other,.., (1-1) Tht:' development of a first-class restauLmt at [I" terrn¡na1 building I..':ch the co- operation and assistance of the Aviation Lammi: tee of the ',amber:'f Commerl:l~. (c) The development of new businesses in the industrial areas, (d) ':11." rt'furb- ishing of the terminal building, including a modern dining room, modern land- scaping of the grassed area, and a "new luok" In the airfield li¡.;"ting in front of the termina] building. r t L~ hoped to develop an at trac t ¡ ve and pleasall t "image" of Salina to the traveler '",ill) arrives bvlfr ~n Sllina. Substantially improved ()perating cllc!itiullS'Y fr ill!,-! \irint's in and out of the airport and the po3si . J it)' non--stur jt, "er'lll ,-' t: 'm Sa: .na to Kansas City and Denvc'r Ln the f"rf" Ta' " ~ u~ 1: ,'. The Salina Airport Authorìt\' i1['cratc".; duri¡'g t;. in its operating funds, in spite 0' the tornad , unforeseen catastrophies, ',vi'l he d'Le ti' CI,¡¡ùuct calling on the taxpayers fur any L,:. Ie- "ear ] 'Jhi) wi th a ,,('dest surplus dl\ J isonf ldant tllat, barring its affair :n Ii ¡ without The success of the year's èhtivitv is the result l'f fine (uoperat the various agencies involved---City, ß ;}f t, Cham1'er ot I'UI1erce, local flyers, our elected sL¡te ane: n ,t Lundl represt'ntdtives, and our tenants and ¡irUnL' C¡¡stoler 'n From aI- 'Jew" media, m,'.,t important, Sircerelv, St\LJ N.'\ t\ I Rb J!{T\PTHORITY :1.,. l\.enned, CbB irman SALINA AIRPORT AUTHORITY Salina, Kansas AUDIT REPORT Year 1969 A. H, LECKBAND & CO. Certified Public Accountants Accounting Bldg" 719 East Crawford Salina, Kansas 67401 EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E EXHIBIT 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 January 29, 1970 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, 1969. 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 subsequent amendments thereto, 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, 1969, and the results of its cash transactions for the year then ended. . /J I ~ //1/ f tJ //. h ' ß<:--,;; ('-;eN of: (~ , CERTIFIED PUBLIC ACCOUNTANTS /,' '/ ?~ //..0_,./'/ C. ~<:'<'V>,"<_':7' j Euge~e O. Harrison, Certified Public Accountant, Certificate No. 1401, in charge of and actively engaged on this audit. 1 COlvL'ŒNTS 1. The Salina Airport Authority is governed by a board of five directors appointed by the City Commission 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-Tre~surer Allen R. Dodge - resigned December 23, 1969 Dale Lyon C. F. Heath - appointed December 23, 1969 2. The following officials, appointed by the Salina Airport Authority Board of Directors, also served during the period of our examination: John F. Scanlan - Executive Vice-President Paul Wall - Assistant Secretary and Airport Manager 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. Beginning August 31, 1969, warrant checks were signed by three officials ~S required by K.S.A. 10-803 and K.S.A. 10-805 as amended by the 1968 Kansas Legislature. ~'.'ith the exception of omitting this requirement prior to August 31, 1969, 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 charge be computed and recorded annually. 6. The Salina Airport Industrial Area suffered extensive storm damage on June 21, 1969. Although necessary rep~i~s are still being made, it is believed the entire cost will be covered by insurance proceeds and Federal Disaster funds. 2 SALINA AIRPORT AUTHORITY AIRPORT REVOLVING FUND EXHIBIT A S'lATEHENT OF RECEIPTS, DISBURSEYENTS, A~m COMPOSITION OF E::JDING CASH BALANCE January I to December 31, 1969 CASH AND INVESTMENTS - January 1, 1969 RECE IPTS Building rents Agricultural land rents Fixed base operator Landing fees Commissions Aè. valorem tax I~terest on investments Reimbursement of expendicures Insurance proceeds-storm damage Proceeds from Office of Emergency Miscellaneous income TOTAL RECE IPTS R~CEIPTS A~~ BEGINNING BALANCE DISBù'RSEHENTS Office and Administrative Expense: Office salaries Office supplies Postage Car expease Travel expense Legal and auditing Insurance Property tax Engineering Office equipment rental Social security tax Employee retirement Telephone Other office and administrative expense ~aintenance Expense: Building maintenance Runv7ays, taxiways a.'td ra',~'ps Equipment gas, oil and repair Utilities Ground maintenance Janitor supplies Mainte~ance salaries Preparedness $ 32,598.00 182.01 106.43 3,127.54 2,303.06 2,257.25 10,779.40 27,224.14 80.00 133.67 3,235.22 1,437.46 1,552.61 1,941.83 $ 10,790.66 3,338.92 4, 114.20 10,623.40 3,673.96 612 .01 47,033.53 $131,091.33 $133,541.73 5,150.00 28,708.38 46,600.00 1,087.99 957.94 8,765.72 7,468.91 240,770.28 92,060.00 2,927.23 568,038.18 $699,129.51 $ 86,958.62 3 SALINA AIRPORT AUTHORITY AIRPORT RE\ "LVIXG FUND EXHIBIT A STATEMENT OF RECEIPTS. DISBURSEMENTS., Alill CŒvÚ'JSITION OF ENDING CASH BALANCE January 1 to December 31, 1969 Snmv removal Airfield lighting Signs Tornado damage to buildings Tornado damage to vehicles and equipment Tornado grounds cleanup Other maintenance expense 507.00 2,749.72 154.09 315,922.20 1,890.88 5,379.10 4,990.22 411,779.89 Capital Expenditures: Addition~l concrete drive at airport terminal building Parking lot surfacing at building 266 $ 831.38 1,437.50 2,268.88 TOTAL DISBuRSEMENTS 501,007.39 CASH AND INVESTMENTS - December 31, 1969 $198.122,12 AVAIUuLE CASH AND INVESnŒ~JTS - December 31, 1969 First National Bank and Trust Company - Checking account Planters State Bank - Checking account U. S. Treasury Bills $ 2,925.22 5,675.19 191,493.05 TOTAL DEDUCT - Amounts withheld from payroll $200,093.46 1,971.34 TOTAL CASH AND IN\ŒSTMENTS - December 31, 1969 $198.122.12 4 SALINA AIRPORT AUTHORITY 30Ì\'1) AND ET.=,ŒST FUND EXHIEIT B STATE"l>fENT OF RECEIPTS, DISBUl'ZSEj\lENTS, AND COH?OSITION OF ENDING CASH BALAc\'CE Ja~uary. 1 to December 31, 1969 CASH A:m INVESTIŒNTS - January 1, 1969 RECEIPTS B:Ülding rents Agricultural land rents Hangar rents Reimbursement of construction Sale or property Interest on investments Miscellaneous income costs-Building 266 TOTAL RECEIPTS RECEIPTS AND BEGINNING BALANCE D IS BiJRSEMENTS Bond ¿rincipal redeemed Bond interest expense Bond commission and postage Construction or Building 266 Property tax TOTAL DISBURS~j\ŒNTS CASH AND INVESTMENTS - December 31, 1969 AVAILABLE CASH AND INVESTj\ŒNTS - December 31, 1969 National Bank or America - Checking account U. S. Treasury Bills ~OTAL CASH AND INVESTMENTS - December 31, 1969 $ 19,685.00 10,502.00 7,290.00 2,781.74 3,000.00 10,12'+.28 152.50 $ 30,000.00 27,525.00 74.20 127,081.68 2,595.49 $235,985.04 53,535.52 $289,520.56 1.87,276.37 $102,244,19 $ 19,665.54 82,578,65 $102.244.19 5 SALINA AIRPORT AUTHORITY EXHIBIT C BONDS OF I~mEBTED:X2SS Decembe~ 31, 1969 General Obligation Bonds dated February 1, 1967, issJed for the purpose of acquiring surp:us pëoperty from the United States TOTAL ORIGINAL ISSUE DEDUCT - Bonds paid in year 1969 TOTAL BONDS OUTSTANDING - December 31, 1969 Haturity Interest Date Rate ',- 0 ~~, 1 -- 2-1-69 ¿: .:::5 $ 30,000.00 2-1-70 4.::: 5 30,000.00 2-1-71 4.:::5 35,000.00 2-1-72 4.:25 35,000.00 2-1-73 4.:25 35,000,00 2-1-74 3.~75 35,000.00 2-1-75 3.:'75 35,000.00 2-1-76 3.375 35,000.00 2-1-77 3.375 40,000.00 2-1-78 3.375 40,000.00 2-1-79 3 .~, 7 5 40,000.00 2 -1-80 3.~7j 40,000.00 2 -1 -81 3, ~,7 5 L.-5,00C.OO 2-1-82 3.~, 75 45,000.00 2-1-83 3 .~,7 5 45,000.00 2 -1-84 3. L 45,000.00 2-1-85 3.L 45,OCO.OC 2-1-86 3. L 45,0'::0, 2 -1 -87 3. L L,.5,000.00 2-1-88 ~ I 45,0\'::0,00 .) . L, $790,000.00 3D.OOO.00 $76°"°00.00 6 SALINA AIRPORT AUTHORITY RECQ~':CILElŒNT OF FISCAL AGENCY ACCOUNT December Jl, 1969 BALA~CE WITH FISCAL AGENCY - January 1, 1969 REHITTANCES Matured bonds Interest coupons Commission and postage TOTAL REMITTANCES AND BEGINNING B~LANC= RETURNS Cancelled bonds Interest coupons paid Comoission and postage retained BALANCE WITH FISCAL AGENCY - December 31, 1969 $30,000.00 27,525.00 74.2C $30,OOO.OC 27,525.0C 74.2C EXHIBIT D $ 57,599.20 $57,599.20 57,599.20 $ .., I AIRPORT REVOLVING FUND U. S. Treasury B_-ls BO~~ AND INTEREST FUND :. S. Treasury Bills SALINA AIRPOR~ AUTHORITY SCHED1JL)~ OF INVESTHENTS Decembe~ 31, 1969 BaLlflce 1-1-69 ,,127.302.00 $228.846.2C) Purchases 1969 $f21.383.00 $534.251.27 Redemptio,~s 1969 $75?,,191.9~ $680,518,C'.l E:--:Ti3IT E Bal2.Clc", 12-~l-ó9 $191 ,493 .OS $ 82 578. 65 8 WorRmen's Compensation Cú~prehensive General Liability ,Ürcraft Hangar Rent~l Building 266 Rental Buildings- Ind~. crial ~ental Buildings- D\'Je 11 ings Ai-~ort Terminal and Rental Buildings SALINA AIRPORT AUTHORITY INSURA~JC:-: \; FORCE EXEIB=:T F Amount or Coverage $ 100,000.00 Co-Ins',lrance Percentage 1,000,000"JO 20,000.00 lS0,000.00 lS7,369,OO 37,000.00 1,S77,000.OC 1/1,OOO,CJO.CC 1/ 1,000,000 . CO Note: ~ new hangar to re?lace one destroyej by the tornado is ~rEsent1y under construct:on ~d is insured oy the con~ractor under ¿ Dui1ders risk policy. -, December 31, 1969 Tvpe of Coverage Fire and lightnin;, ex- tended coverage,vanda1ism and malicious mischief Fire and lig~tnin , ex- tended cover~gc,vundali3m and malicious mischief Fire and lighcning, ex- tended coverage, rental value insurance Fire and lightning, ex- tended coverage Fire, lightning, wind- s taL-', a:1Q hail, e::plos ion, r~c-, vE~icles and air- cra.::t, srr.oke Bodily injury Property dawage 30 9J 9