Audit Report - 1972
SALINA AIRPORT AUTHORITY
Salina, Kansas
AUDIT REPORT
Year 1972
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
EXHIBIT F
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 -8
Reconcilement of Fiscal Agency Account
9
Schedule of Investments
10
Insurance in Force
11
Schedule of Audit Adjustments
12
February 12, 1973
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, 1972.
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 amendrnents 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, 1972,
and the results of its cash transactions for the year then ended.
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CERTIFIED ÚBLIC ACCOUNTANTS
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Eugene~O. Harrison, Certified
Public Accountant, Certificate No. 1401,
in charge of and actively engaged on
this audit.
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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
Edward H. Bell, Vice-Chairman - term
William P. Horton, Vice-Chairman
C. F. Heath, Secretary-Treasurer
Ben Vidricksen
W. M. Usher
expired April 26, 1972
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, General Manager and Airport Manager
3.
The Salina Airport Authority believes it is exempt from the cash
basis law under the provisions 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.
A building Revenue Bond issue of $500,000.00 was sold to the four
Salina banks on August 29, 1972.
6.
A Bond Reserve Account and a Replacement and Depreciation Account
were established during 1971 as provided by the Building Revenue
Bond issue. $2,000.00 was transferred to each of thesle accounts
during 1972.
2
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
EXHIBIT A
STATEMENT OF RECEIPTS, DISBURSEMENTS, AND COMPOSITION OF ENDING CASH BALANCES
January 1 to December 31, 1972
CASH AND INVESTMENTS-January I, 1972
Airport
Revolving
Account
$148,166.96
Building
Revenue
Account
$ 89,889.:28
General
Operating
Fund Totals
$ 238,056.24
RECE IPTS
Operating revenues-Schedule I $199,022.08 $113,719.95 $ 312,742.03
Proceeds from sale of Building
Revenue Bonds 500,000.00 500,000.00
Accrued interest on sale of bonds 3,896.05 3,896.05
Reimbursement of expense relating
to bond issue 100.00 100.00
TOTAL RECEIPTS $199,022.08 $617,716.00 $ 816,738.08
RECEIPTS AND BEGINNING BALANCE $347,189.04 $707,605.28 $1.054,794.32
DISBURSEMENTS
Operating expenditures-Schedule 2 $182,135.30 $120,592.14 $ 302,727.44
Capital expenditures-Schedule 3 400.00 509,495.85 509,895.85
TOTAL DISBURSEMENTS $182,535.30 $630,087.99 $ 812,623.29
CASH AND INVESTMENTS-December 31,1972 $164.653.74 $ 77.517.29 $ 242.171.03
AVAILABLE CASH AND INVESTMENTS-December
First National Bank and Trust Co. $
Planters State Bank and Trust Co.
National Bank of America
Certificates of Deposit
Certificates of Deposit-
Bond Reserve
Certificates of Deposit-Replacement
and Depreciation Reserve
31, 1972
$ 4,741.76 $ 4,741. 76
2,145.20 2,145.20
11,775.53 11 , 77 5.53
165,000.00 55,000.00 220,000.00
TOTAL
$167,145.20
3,000.00 3,000.00
3,000.00 3,000.00
$ 77,517.29 $ 244,662.49
DEDUCT-Amounts withheld from payroll
2,491.46
2,491.46
TOTAL CASH AND INVESTMENTS-
December 31, 1972
$164.653.74
$ 77 .517 .29
$141,743.75
32,612.50
$
242.171.03
Bond and interest payments due in 1973
DEDUCT-Amount paid December 28, 1972
$109.131.25
3
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
OPERATING REVENUES
January 1 to December 31, 1972
Schedule 1
Airport Build ins General
Revolving Revenue Operating
Account Account Fund Totals
$148,974.48 $ 83,128.50 $232,102.98
5,365.00 12,703.00 18,068.00
2,175.00 1,000.00 3,175.00
7,700.00 7,700.00
50.00 50.00
21,411.34 21,411.34
12,628.45 12,628.45
931. 91 931.91
7,032.25 7,377.17 14,409.42
759.59 759.59
1,051.69 1,051.69
173 .00 173 .00
280.65 280.65
Building rents
Agriculture land rents
Other land rents
Hangar rents
Other rents
Fixed base operator
Landing fees
Commissions
Interest on investments
Interest on sale of property
Sale of property on contract
Reimbursement - FAA mowing
Miscellaneous income
TOTAL OPERATING REVENUES
$199.022 .08
$113.719.95
$312.742.03
4
$ 65,000.00 $ 65,000.00
53,118.75 53,118 .75
40.31 40.31
2 , 12l~ . 74 2,124.74
$120,283.80 $120,283.80
$120.592.14 $302.727.44
5
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
OPERATING EXPENDITURES
January 1 to December 31, 1972
Airpor t Building
Revolving Revenue
OFFICE AND ADMINISTRATION Account Accou::J.t
Office salaries $ 39,002.00 $
Office supplies 556.21
Postage 178.67
Car expense 1,941.40
Travel expense 720.33
Legal and auditing 3,642.27
Insurance 26,316.02
Appraisal fees 308.34
Engineering 94.98
Social security tax 4,070.33
Employees retirement 3,175.62
Telephone 1,463.18
Reimbursable charges 3.34
Other office and administration 1,366.72
TOTAL OFFICE AND ADMINISTRATION $ 82,531.07 $ 308.34
MAINTENANCE
Building maintenance
Runways, taxiways and ramps
Equipment gas, oil and repairs
Ut i1 it ies
Grounds maintenance
Janitor supplies
Maintenance salaries
Snow removal
Airfield lighting equipment
Signs
Other maintenance expense
$
$
6,548.45
13,245.68
2,473.02
10,154.61
6,431.18
467.46
55,410.69
53.23
89.50
101.43
4,628.98
$ 99,604.23
$
TOTAL MAINTENANCE
BOND AND INTEREST
Bond principal redeemed
Bond interest expense
Bond commission and postage
Expense relating to bond issue
$
TOTAL BOND AND INTEREST
$
TOTAL OPERATING EXPENDITURES
$182.135.30
Schedule 2
General
Operating
Fund Totals
$ 39,002.00
556.21
178.67
1,941.40
720.33
3,642.27
26,316.02
308.34
94.98
4,070.33
3,175.62
1,463.18
3.34
1,366.72
$ 82,839.41
$
6,548.45
13 , 245 . 68
2,473 .02
10,154.61
6,431. 18
467.46
55,410.69
53.23
89.50
101.43
4,628.98
$ 99,604.23
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
CAPITAL EXPENDITURES
January 1 to December 31, 1972
Schedule 3
Airpor t
Revolving
Account
Build ing
Revenue
Account
General
Operating
Fund Totals
Building improvements
Building 266-Schwan's Sales
Enterprises, Inc.
Building 620-Continental Aluminum
Compressor-Building 673-Salina
Poultry Co.
$
$507,595.85 $507,595.85
1,900.00 1,900.00
400.00 400.00
400.00 $509.495.85 $509.895.85
TOTAL CAPITAL EXPENDITURES
$
6
SALINA AIRPORT AUTHORITY
BONDS OF INDEBTEDNESS
December 31, 1972
Building Revenue Bonds dated January I,
1971, issued for the purpose of purchasing,
constructing, repairing, extending and
improving the property and facilities of
the Salina Airport Authority
TOTAL ORIGINAL ISSUE
DEDUCT - Bonds paid in year 1972
Maturity
Date
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
BUILDING REVENUE BONDS (SERIES 1971) OUTSTANDING -
December 31, 1972
Building Revenue Bonds dated July I, 1972,
issued for the purpose of purchasing,
constructing, repairing, extending and
improving the property and facilities of
the Salina Airport Authority
7 -1-73
7 -1-74
7 -1-75
7-1-76
7 -1-77
7-1-78
7-1-79
7 -1-80
7 -1 -81
7 -1-82
7-1-83
7 -1-84
BUILDING REVENUE BONDS (SERIES 1972) OUTSTANDING -
December 31, 1972
Interest
Rate
--
5
5
5
5
5
5
5
5
5
5
4.5
4.5
4.5
4.5
4.5
4.5
4.5
4.5
5
5
5
5
EXHIBIT B
Total
$ 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
30,000.00
$220.000.00
$ 35,000.00
35,000.00
35,000.00
35,000.00
40,000.00
40,000.00
40,000.00
45,000.00
45,000.00
50,000.00
50,000.00
50,000.00
$500.000.00
7
SALINA AIRPORT AUTHORITY
BONDS OF INDEBTEDNESS
December 31, 1972
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
Bonds paid in year 1972
Maturity
Date
2 -1-6 9
2-1-70
2-l-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
35,000.00
GENERAL OBLIGATION BONDS OUTSTANDING - December 31, 1972
SUMMARY OF BONDS OUTSTANDING
Building Revenue Bonds (Series 1971)
Building Revenue Bonds (Series 1972)
General Obligation Bonds
TOTAL BONDS OUTSTANDING - December 31, 1972
EXHIBIT B
Total
$ 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
130,000.00
$660.000.00
$
220,000.00
500,000.00
660,000.00
$1.380.000.00
8
SALINA AIRPORT AUTHORITY
RECONCILEMENT OF FISCAL AGENCY ACCOUNT
December 31, 1972
BALANCE WITH FISCAL AGENCY - January 1, 1972
REMITTANCES
Matured bonds
Interest coupons
Commission and postage
$ 35,000.00
23,381.25
40.31
TOTAL REMITTANCES AND BEGINNING BALANCE
RETURNS
Cancelled bonds
Interest coupons paid
Commission and postage retained
$ 35,000.00
22,875.03
40.31
BALANCE WITH FISCAL AGENCY - December 31, 1972
ANALYSIS OF BALANCE
December 31, 1972
UNREDEEMED INTEREST COUPONS (General Obligation Bonds)
Date Due
8-1-72
8-1-72
8 -1-72
8-1-72
8-1-72
8-1-72
Coupon No.
73
74
75
76
77
78
BALANCE WITH FISCAL AGENCY - December 31, 1972
EXHIBIT C
$
58.421.56
$ 58,421.56
$
57,915.34
506.22
Amount
$ 84.37
84.37
84.37
84.37
84.37
84.37
$ 506.22
9
SALINA AIRPORT AUTHORITY
SCHEDULE OF INVESTMENTS
December 31, 1972
EXHIBIT D
Balance Purchases Redemptions Balance
1-1-72 1972 1972 12 -31-72
AIRPORT REVOLVING ACCOUNT
Certificates of Deposit $140,000.00 $105,000.00 $ 80,000.00 $165,000.00
BUILDING REVENUE ACCOUNT
Certificates of Deposit 30,000.00 583,000.00 552,000.00 61,000.00
TOTAL -
GENERAL OPERATING FUND $170.000.00 $688.000.00 $632.000.00 $226.000.00
10
SALINA AIRPORT AUTHORITY
INSURANCE IN FORCE
December 31, 1972
EXHIBIT E
Type of Coverage
Amount of Co-Insurance
Coverage Percentage
$ 100,000.00
5,000,000.00
1,000,000.00
Workmen's Compensation
and Employers' Liability
Comprehensive General
Liability
Manufacturers' and
Contractors'Liability
Rental Building 266
Rental Buildings -
Industrial
Rental Buildings -
Dwellings
Airport Terminal and
Rental Buildings
Vehicles
Fire, lightning, windstorm
and hail, explosion, smoke
damage, vehicle or aircraft,
riot, vandalism or malicious
mischief, replacement cost
475,000.00
80
Fire and lightning, extended
coverage, rental value
insurance 206,140.00
Fire and lightning
extended coverage
37,000.00
Fire and lightning, removal,
windstorm and hail, smoke,
explosion, riot, aircraft and
vehicles, vandalism and
malicious mischief
90
1,989,000.00
Bodily injury 100/300,000.00
Property damage 50,000.00
Fire, theft, and combined
additional coverage
11
SALINA AIRPORT AUTHORITY
BUILDING REVENUE ACCOUNT
SCHEDULE OF AUDIT ADJUSTMENTS
December 31, 1972
( 1)
Accrued Interest on Sale of Bonds
Bond Interest Expense
Interest on Investments
To reclassify various interest payments
received on certificates of deposit during
1972 which were credited in error to Accrued
Interest on Sale of Bonds and Bond Interest
Expense.
(2)
Capital Expenditures
Engineering
To reclassify payments to White, Hamele
and Hunsley which represents one-half of the
cost of plans for addition to Continental
Aluminum building #620
Debit
$ 382.97
6,020.01
$ 1,900.00
EXHIBIT F
Cred it
$ 6,402.98
$ 1,900.00
12