Audit Report - 1971
~
BOARD Of DIRECTORS
C. J WERTZ. Chairman
EDWAIW H. IIELL. Vice Cham..
C. F HBATH. Se<..T"u.
WM. P. HORTON III!N J!. VlDRICKSJ!N
SA.LIN A. A.IRPOR T A. UTFJ:OR..ITY
SALIN A :MUNICIPAL AIRPORT
JOHN f. SCANLAN
Executi.. Vice Pmident
TERMINAL BUILDUIG NO 120
SALINA. KANSAS 61401
PAUL S. WALL
Gene...] """!Ie< - Aj,po<t "'nap<
February 22,1972
Gentlemen:
The Salina Airport Authority herewith submits an accounting of its
operations for the calendar year 1971, as reported by A. H. Leckband and
Company, its independent Certified Public Accountants.
It is interesting to note that even with a substantial reduction of
income from fixed base operation and landing fees, we continued to have some
excess of operating revenues over operating expenditures.
During the year 1971 substantial additions have been made to Building 266
for Schwans Sales of Marshall, Inc. and to Building 1021 for Rickel, Inc.
The additions to these buildings have resulted in the doubling of the number
of employees of these two firms.
A carefully planned and executed maintenance program for all buildings,
property and the runways has been carried on during the year. We believe all
properties are in good condition.
Progress has been made during the year in renting additional buildings
in the Airport Complex. Only two major buildings are still unoccupied. If
demand continues these and a few minor structures should be occupied in the
not too distant future.
The Salina Airport Authority is deeply grateful for the coopl~ration it
has received from all segments of the Salina Community during the past year,
and pledges its efforts toward continued progress in its area of responsibility.
Sincerely,
SALINA AIRPORT AUTHORI1~
~- t (
-, '1 ~ --
C. J./Wertz
Chairman
CJW:ks
SALINA AIRPORT AUTHORITY
Salina, Kansas
AUDIT REPORT
Year 1971
A. H. LECKBAND & CO.
Certified Public Accountants
Accounting Bldg., 719 East Crawford
Salina, Kansas 67401
EXHIBIT A
Schedule 1
Schedule 2
Schedule 3
EXHIBIT B
EXHIBIT C
EXHIBIT D
EXHIBIT E
SALINA AIRPORT AUTHORITY
TABLE OF CONTENTS
Page
Auditor's Report
1
Comments
2
Statement of Receipts, Disbursements, and
Composition of Ending Cash Balances
Operating Revenues
Operating Expenditures
Capital Expenditures
3
4
5
6
Bonds of Indebtedness
7
Reconcilement of Fiscal Agency Account
8
Schedule of Investments
9
Insurance in Force
10
January 27, 1972
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, 1971.
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 exhibits and schedules reflect
the cash position of the Salina Airport Authority at December 31, 1971,
and the results of its cash transactions for the year then ended.
/// . { ¿' ft
e. c..-l,if;,;-,' 7l( L I L ~
D PUBLIC ACCOUNTANTS
cq;~~~/~ /J ~L/~~'7\/
Eugene O. Harrison, Certlfied
Public Accountant, Certificate No. 1401,
in charge of the actively engaged on
this audit.
1
COMMENTS
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:
C. J. Wertz, Chairman
M. J. Kennedy, Chairman - term expired
Edward H. Bell, Vice-Chairman
C. F. Heath, Secretary-Treasurer
Bill Horton
Ben Vidricksen
April 26, 1971
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.
We recommend that a determination of the values of the capital assets
be recorded on the books and that a realistic depreciation charge be
computed and recorded annually.
5.
The Building Revenue Bond issue of $250,000.00 was sold to the First
National Bank and Trust Co., Salina, Kansas on February 16, 1971.
6.
A Bond Reserve Account and a Replacement and Depreciation Account
were established during 1971 as provided by the Building Revenue
Bond issue. $1,000.00 was transferred to each of these accounts
during 1971.
2
SALINA AIRPORT A~THORITY
GENERAL OPERATING FL~D
iX:C;3IT A
STATEMENT OF RECEIPTS, DISBuKSE~ŒNTS, AND COMPOSITION OF ENDING CASH BALANCES
January 1 to December 3l, 1971
AVAILABLE CASH AND INVESTMENTS-December 31, 1971
First National Bank and Trust Co. $
Planters State Bank
National Bank of America
Certificates of Deposit
Bond Reserve
Replacement and Depreciation Reserve
CASH AND INVESTMENTS-January 1, 1971
RECEIPTS
Operating revenues-Schedule 1
Insurance proceeds
Proceeds from Office of Emergency
Preparedness
Proceeds from sale of Building
Revenue Bonds
Accrued interest on sale of bonds
Inter-account transfer
TOTAL RECEIPTS
RECEIPTS AND BEGINNING BALANCE
DISBURSEHENTS
Operating expenditures-Schedule 2
Capital expenditures-Schedule 3
Inter-account transfer
TOTAL DISBURSEMENTS
CASH AND INVESTMENTS-December 31, 1971
TOTAL
DEDUCT-Amounts withheld from payroll
TOTAL CASH AND INVESTMENTS-
December 31, 1971
Bond and interest payments due in 1972
Airport
Revolving
Account
$136,586.30
$237,004.81
2,685.66
50,459.69
$290,150.16
$426,736.46
$205,595.94
361.71
72,611.85
$278.569.50
$148,166.96
10,511.93
140,000.00
$150,511.93
2,344.97
$148,166.96
Building
Revenue
Account
$ 67,942,21
$ 76,977.61
250,00J.00
1,597.40
72,611.85
$401,186.86
$469,129.07
$ 69,132.33
310,107.46
$379,239.79
$ 89.889.28
$ 23,805.63
34,082.65
30,000.00
1,000.00
1,000.00
$ 89,889.28
$ 89,889.28
$ 85.131. 25
General
Oper&tiC1g
Fund Totals
$204,528.51
$313,982.42
2,685.66
50,459.69
250,000.00
1,597.40
72,611.85
$691,337.02
$895,865.53
$274,728,27
310,469.17
72,611.85
$657,809.29
$238.056.24
$ 23,806.63
10,511.93
34,082.65
170, O,JO .00
1,000.00
1,000.00
$240,401. 21
2,344.97
$238,056.24
3
SALIKA AIRPORT AUTHORITY
G~~ERAL OPERATI~G FUND
OPERATING REVENUES
January 1 to December 31, 1971
Building rents
Agriculture land rents
Hangar rents
Reimbursed cost of cancelled
Other rents
Fixed base operator
Landing fees
Commissions
Interest on investments
Interest on sale of property
Sale of property on contract
Reimbursement - FAA Howing
Other reimbursable charges
Miscellaneous income
Airport
Revolving
Account
$148,516.46
5,365.00
lease
50.00
23,907 .73
50,188.25
938.32
6,434.80
164.50
178.75
1,261.00
TOTAL OPERATING REVENUES
$237,004.81
Bu ilc. ing
Revenue
Account
$ 48,713.50
10,567.00
7,700.00
1,469.19
6 , 71 6 . 64
830.50
980.78
$ 76,977,61
SCEEDULE l
General
O)eracing
Fucci ',['ot:a:s
$197,229.96
15,932.00
7,700.00
1,469.19
50.00
23,907 .73
50,188.25
938.32
13,151.44
330.50
980.78
164.50
178.75
1,261.00
$313,982.42
4
SALINA AIR?ORT AUTHORITY
GENERAL OPERATI~G Fu~D
OPERATING EX?E~ùITL~ES
January 1 to December 31, 1971
OFFICE A~~ ADMINISTRATION
Office salaries
Office supplies
Postage
Car expense
Travel expense
Legal and auditing
Insurance
Architectural services
Engineering
Social security tax
Employees retirement
Telephone
Reimbursable charges
Other office and administration
TOTAL OFFICE AND ADMINISTRATION
MAINTENANCE
Building maintenance
Runways, taxiways and ramps
Equipment gas, oil and repairs
Utilities
Grounds maintenance
Janitor supplies
Contract labor
Xaintenance salaries
Snmv removal
Airfield lighting equipffient
Signs
Other maintenance expense
TOTAL MAINTENANCE
BOND AND INTEREST
Bond principal redeemed
Bond interest expense
Bond commission and postage
Expenses relating to bond issue
TOTAL BOND AND INTEREST
TOTAL OPERATING EXPENDITURES
Airport Building
" l' Revenue
KeVO.LVlng
Account Accourt
$ 37,667.99 $
417.96
149.20
2,740.59
1,467.23
3,954.44
10,818.88
778.75
206.26
3,867.23
3,038.20
1,312.96
192.00
2,360,58
$ 68,193.52 $
77c..75
$ 17,321.25
30,137.79
5,468.60
10,238.58
7,471.67
356.35
358.50
54,475.57
2,781.00
765.81
56.00
7,971.30
$137,402.42
$
$
$
$ 35,00(' .00
31,lU:.75
4=:.23
2,192.60
$
$ 68,353.58
$205,595.94
$ 69,132.33
Sche¿t:le 2
General
Operating
Furld 'i.'ots.ls
$ 37,667.99
4-~7 .96
1¿,9 .2,)
2,740.59
1,467.23
3,954.44
10,818.88
778.75
206.26
3,867.23
3,038.20
1,312.96
192 .00
2,360.58
$ 68,972.27
$ 17,321.25
30,137.79
5,468.60
10,238.58
7,Lc7L67
356.35
358.50
54,475.57
2,781.00
765.81
56.00
7,9E.30
$137,402.42
$ 35,000.00
31,118.75
42.23
2,192.60
$ 68,353.58
$274,728.27
5
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
CAPITAL EXPENDITURES
January 1 to December 31, 1971
Airport
Revolving
Account
Building
Revenue
Account
Building Improvements
Building 266-Schwan's of Marshall, Inc.$
Building 1021-Rickel, Inc.
Magnolia Road expenditure
Sclledule 3
General
Operating
Fund Totals
$280,835.3ó $280,835.36
29,272.10 29,272.10
361.71 361.71
361.71 $310,107.46 $310,469.17
$
TOTAL CAPITAL EXPENDITURES
6
SALINA AIRPORT AUTHORITY
BONDS OF INDEBTEDNESS
December 31, 1971
General Obligation Bonds dated February 1,
1967, issued for the purpose of acquiring
surplus property from the United States
TOTAL ORIGINAL ISSUE
DEDUCT - Bonds paid in year 1969
Bonds paid in year 1970
Bonds paid in year 1971
Maturity
Date
2-1-69
2-1-70
2-1-71
2-1-72
2-1-73
2 -1-74
2-1-75
2-1-76
2-1-77
2-1-78
2-1-79
2 -1-80
2 -1-81
2 -1 -82
2 -1-83
2-1-84
2 -1-85
2 -1 -86
2 -1 -87
2-1-88
Interest
Rate
--
4,25
4.25
4.25
4.25
4.25
3.375
3.375
3.375
3.375
3.375
3.375
3.375
3.375
3.375
3.375
3.4
3.4
3,4
3.4
3.4
$ 30,000.00
30,000.00
35,000.00
GENERAL OBLIGATION BONDS OUTSTANDING - December 31, 1971
Building Revenue Bonds dated January 1,
1971, issued for the purpose of purchasing,
constructing, repairing, extending and
improving the property and facilities of
the Salina Airport Authority.
1-1-72
1-1-73
1-1-74
1-1-75
1-1-76
1-1-77
1-1-78
1-1-79
1-1-80
1 -1 -81
5
5
5
5
5
5
5
5
5
5
BUILDING REVENUE BONDS OUTSTANDING - December 31, 1971
TOTAL BONDS OUTSTANDING $945.000.00
EXHIB IT B
Totol
$ 30,000.00
30,000.00
35,000.00
35,000.00
35,000.00
35,000.00
35,000.00
35,000.00
40,000.00
,40,000.00
40,000,00
40,000.00
45,000.00
45,000.00
45,000.00
45,000.00
45,000.00
45,000.00
45,000.00
45,000.00
$790,000.00
95,000.00
$695,000.00
$ 15,000.00
15,000.00
20,000.00
20,000.00
25,000,00
25,000.00
30,000.00
30,000.00
35,000.00
35,000.00
$250,000.00
7
SALINA AIRPORT AUTHORITY
RECONCILEW~NT OF FISCAL AGENCY ACCOUNT
December 31, 1971
BA~k~CE WITH FISCAL AGENCY - January 1, 1971
REMITTANCES
Xatured bonds
InLerest coupons
Commission and postage
TOTAL REMITTANCES AND BEGINNING BALANCE
RETURNS
Cancelled bonds
InLeresL coupons paid
Co~wíssion and postage retained
BALANCE WITH FISCAL AGENCY - December 31, 1971
$ 35,000.00
24,868.75
42.33
$ 35,000.00
24,868.75
42.33
EXHIBIT C
$
59,911.08
$ 59,911.08
59,911.08
$
8
SALINA AIRPORT AUTHORITY
SCHEDULE OF INVEST~mNTS
December 31, 1971
EXHIBIT D
Balance Purchases Redemptions Balance
1-1-71 1971 1971 12 -31-71
AIRPORT REVOLVING ACCOUNT
U. S. Treasury Bills $128,195.00 $148,220 .20 $276,415.20 $
Certificates of Deposit 380,000.00 240,000.00 140,000.00
BUILDING REVENUE ACCOUNT
U. S. Treasury Bills 19,734,10 9,901.30 29,635.40
Certificates of Deposit 315,000.00 285,000.00 30,000.00
TOTAL -
GENERAL OPERATING FUND $147,929.10 $853,121.50 $83 L050. 60 $170,000.00
9
Wû~kmen's Compensation
Comprehensive General
Liability
Aircraft Hangar
Rental Building 266
Rental Buildings -
Industrial
Rental Buildings -
Dwellings
Airport Terminal and
Rental Buildings
Vehicles
SALINA AIRPORT AUTHORITY
INSURANCE IN FORCE
December 31, 1971
Type of Coverage
Fire and lightning, ex-
tended coverage, vandalism
an¿ malicious mischief
Fire, lightning, windstorm
and hail, explosion, smoke
damage, vehicle or aircraft,
riot, vandalism or malicious
mischief, replacement cost
Fire and lightning, ex-
tended coverage, rental
value insurance
Fire and 1ighLning,
extended coverage
Fire and lightning, ex-
tended coverage, vandalism
and malicious mischief
Bodily injury
Property damage
Bodily injury
Property damage
Fire, theft, and combined
additional coverage
Affiount of
Coverage
$ 100,000.00
5,000,OCO.00
20,000.00
275,000.00
180,300.00
37,000.00
1,974,000.00
1/1,000,000.00
1/1,000,000.00
100/300,000.00
50,000.00
EXHIBIT E
Co-Insurance
Percentag,e
80
80
90
10