Audit Report - 1973
SALINA AIRPORT AUTHORITY
Salina, Kansas
AUDIT REPORT
Year 1973
A. H. LECKBAND & CO.
Certified Public Accountants
Accounting Bldg., 719 East Crawford
Salina, Kansas 67401
EXHIBIT A
Schedule A-l
Schedule A-2
Schedule A-3
EXHIBIT B
Schedule B-1
Schedule B-2
Schedule B-3
Schedule B-4
Schedule B-S
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
General Obligation Bonds
Building Revenue Bonds - Series 1971
Building Revenue Bonds - Series 1972
Building Revenue Bonds - Series 1973
Building Revenue Bonds - Series 1973-2
7
8
9
10
11
12
Reconcilement of Fiscal Agency Account
13
Schedule of Investments
14
Insurance in Force
15
Schedule of Audit Adjustments
16
January 31, 1974
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, 1973.
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, 1973, and
the results of its cash transactions for the year then ended.
/-/ ~ /ß/c./'l:~ 7'<..[ / {:,---
CERTIFIED PUBLIC ACCOUNTANTS
(() ..._~/~- Ç-/<. -.'~
Lé.- -:.c' ..~ - L /:, ",-.- -. .
Eugene O. Harrision, Certified
Public Accountant, Certificate No. 1401,
in charge of and 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 - term expired
William P. Horton, Chairman
Ben Vidricksen, Vice-Chairman
C.F. Heath, Secretary-Treasurer
W.M. Usher - resigned April 15, 1973
John L. Zimmerman
Dean Tinkler
April 26, 1973
2.
The following officials, appointed by the Salina Airport Authority
Board of Directors, 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.
Two series of Building Revenue Bonds were issued in 1973. Each
series was for $350,000.00. Proceeds of the second s~ries (dated
December 1, 1973) were not received until January 23, 1974.
$183,000.00 was borrowed from Planters State Bank & Trust Co. on
December 21, 1973. Loan proceeds were used to pay for construction
costs on Building 266. The loan was repaid upon receipt of the
proceeds of the Building Revenue Bond Series 1973-2.
6.
A Bond Reserve Account and a Replacement and Depreciation Account
were established during 1971 in accordance with the Building Revenue
Bond issues. The requirements and balances of these accounts are
as follows:
Balances required as of December 31, 1973
Actual balances as of December 31, 1973
Bond
Reserve
Account
$9,000.00
7,000.00
Replacement and
Depreciation
Account
$6,000.00
5,000.00
2
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
EXHIBIT A
STATEMENT OF RECE IPTS LQISBUßSEMENTS, AND COMPOS ITION OF ENDING CASH BALANCES
January 1 to December 31, 1973 January 1 to December 31, 1972
Airport Building General Airpor t Building General
Revolving Revenue Opera ring Revolving Revenue Operating
Account Account Fund Totals Account Account Fund Totals
CASH AND INVESTMENTS-January 1 $164,653.74 $77,517.29 $ 242,171.03 $148,166.96 $ 89,889.28 $ 238,056.24
RECEIPTS
Operating revenues-Schedule A-I $254,129.25 $328,790.54 $ 582,919.79 $199,022.08 $113,719.95 $ 312,742.03
Proceeds from sale of Building
Revenue Bonds - 350,000.00 350,000.00 - 500,000.00 500,000.00
Accrued interest on sale of bonds - 2,970.20 2,970.20 - 3,896.05 3,896.05
Reimbursement of expense relating
to bond issue - - - - 100.00 100.00
Loan-Planters State Bank & Trust Co. - 183,000.00 183,000.00 - - -
TOTAL RECEIPTS $254,129.25 $864,760.74 $1,118,889.99 $199,022.08 $617,716.00 $ 816,738.08
RECEIPTS AND BEGINNING BALANCE $418,782.99 $942,278.03 $1,361,061.02 $347,189.04 $707,605.28 $1,054,794.32
DISBURSEMENTS
Operating expenditures-Schedule A-2 $207,484.08 $122,965.44 $ 330,449.52 $182,135.30 $120,592.14 $ 302,727.44
Capital expenditures-Schedule A-3 1 , 13 6 . 90 639,050.99 640,187.89 400.00 509,495.85 509,895.85
TOTAL DISBURSEMENTS $208,620.98 $762,016.43 $ 970,637.41 $182,535.30 $630,087.99 $ 812,623.29
CASH AND INVESTMENTS-December 31 .$110.162.01 .li80.261.60 $ 390~423 .61 $164,653.74 $~7,517.29 ~2...171.03
AVAILABLE CASH AND INVESTMENTS-December 31
First National Bank and Trust Co. $
Planters State Bank and Trust Co.
National Bank of America
U.S. Treasury Bills
Certificates of Deposit
Certificates of Deposit-Bond Reserve
Certificates of Deposit-Replacement
and Depreciation Reserve
$ 80,762.36
7,908.84
145,074.00
60,000.00
72,499.24
15,000.00
7,000.00
5,000.00
TOTAL
$212,982.84
$180,261.60
DEDUCT-Amounts withheld from payroll
2,820.83
TOTAL CASH AND INVESTMENTS-December 31
$210~162.0l
$180,261.60
$ 80,762.36
7,908.84
72,499.24
145,074.00
75,000.00
7,000.00
5,000.00
$ 393,244.44
2.820.83
$ 390,423.61
3
$
2,145.20
165,000.00
$167,145.20
2,491.46
~L64,653.74
$ 4,741.76 $ 4,741.76
- 2,145.20
11 , 77 5 .53 11,775.53
- -
55,000.00 220,000.00
3,000.00 3,000.00
3,000.00 3,000.00
$ 77,517.29 $ 244,662.49
- 2,491.46
fLn_,517.29 $ 242,171.03
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
Schedule A-I
OPERATING REVENUES
TOTAL OPERATING REVENUES
January 1 to December 31, 1973 January 1 to December 31, 1972
Airport Building General Airport Building General
Revolving Revenue Operating Revolving Revenue Operating
Account Account Fund Totals Account Account Fund Totals
$162,309.67 $175,626.19 $337,935.86 $148,974.48 $ 83,128.50 $232,102.98
5,365.00 5,185.00 10,550.00 5,365.00 12,703.00 18,068.00
2,665.00 1,000.00 3,665.00 2,175.00 1,000.00 3,175.00
- 10,010.00 10,010.00 - 7,700.00 7,700.00
50.00 - 50.00 50.00 - 50.00
24,059.33 - 24,059.33 21,411.34 - 21,411.34
48,814.82 - 48,814.82 12,628.45 - 12,628.45
811.68 - 811.68 931.91 - 931.91
8,640.50 8 , 507 . 13 17,147.63 7,032.25 7,377.17 14,409.42
736.94 736.94 - 759.59 759.59
127,725.28 127,725.28 - 1,051.69 1,051.69
371. 00 - 371.00 173.00 - 173 .00
1,042.25 - 1,042.25 280.65 - 280.65
$254,.12.2.. 25 §]28 .]90, 54 $582,919.79 $199,022.08 $113,719.95 §312,742.03
Building rents
Agricultural 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
Reimbursement-FAA mowing
Miscellaneous income
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
Schedule A-2
OPERATING EXPENDITURES
January 1 to December 31, 1973
Airport Building General
Revolving Revenue Operating
Account Account Fund Totals
OFFICE AND ADMINISTRATION
Office salaries $ 40,976.00 $
Office supplies 724.84
Postage 161.00
Car expense 2,341.76
Travel expense 665.70
Legal and auditing 5,149.25
Insurance 25,387.72
Appraisal and abstract fees -
Engineering 500.00
Social security tax 4,824.92
Employees retirement 3,473.97
Telephone 1,547.46
Reimbursable charges ( .14)
Airport security 3,486.69
Other office and administration 1,676.06
-
TOTAL $ 90,915.23 $
527.75
$ 40,976.00
724.84
161.00
2,341.76
665.70
5,149.25
25,387.72
527.75
500.00
4,824.92
3,473.97
1,547.46
( .14)
3,486.69
1,676.06
527.75
$ 91,442.98
MAINTENANCE
Building maintenance
Runways, taxiways and ramps
Equipment gas, oil and repairs
Utilities
Grounds maintenance
Janitor supplies
Maintenance salaries
Snow removal
Airfield lighting equipment
Signs
Other maintenance expense
$
9,348.29
18,671.12
4,599.97
10,725.73
7,041. 27
628.50
56,649.62
82.50
$
975.00
$ 10,323.29
18,671.12
4,599.97
10,725.73
7,041. 27
628.50
56,649.62
82.50
50.04
8,771.81
50.04
8,771.81
TOTAL
$116,568.85
$
975.00
$117,543.85
BOND AND INTEREST
Bond principal redeemed
Bond interest expense
Bond commission and postage
Expense relating to bond issues
$
$ 70,000.00 $ 70,000.00
49,850.35 49,850.35
38.40 38.40
1 , 573 . 94 1 , 573 . 94
$121,462,.69 $121,462.69
$122,965.44 $330,449.52
5
TOTAL
$
TOTAL OPERATING EXPENDITURES
$207,484.08
January 1 to December 31, 1972
Airport Building General
Revolving Revenue Operating
Account Account Fund Totals
$ 39,002.00
556.21
178.67
1,941.40
720.33
3,642.27
26,316.02
94.98
4,070.33
3,175.62
1,463.18
3.34
1,366.72
$ 82,531.07
$
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
$
$
$1131.. 13 5.30
$
$ 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
308.34
1,366.72
$
308.34
$ 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
$ 65,000.00 $ 65,000.00
53,118.75 53,118.75
40.31 40.31
2,124.74 2,124.74
$120,283.80 $120,283.80
$120,592.14 $302,727.44
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
CAPITAL EXPENDITURES
Schedule A-3
January 1 to December 31, 1973
Airport Building General
Revolving Revenue Operating
Account Account Fund Totals
Equipment
3M copy machine
Mobile radio
Building improvements
Building 266 - Schwan's Sales
Enterprises, Inc.
Building 614 - Eldorado Industries, Inc.
Building 620 - Continental Aluminum
Co, Inc.
Building 1021 - Rickel, Inc.
Compressor - Building 673 - Salina
Poultry Co.
$
670.00
466.90
TOTAL CAPITAL EXPENDITURES
~ 1,136.90
$
182,912.93
173,682.00
89,762.16
192,693.90
$639,050.99
$
670.00
466.90
182,912.93
173,682.00
89,762.16
192,693.90
$640,187.89
January 1 to December 31, 1972
Airport Building General
Revolving Revenue Operating
Account Account Fund Totals
$
$
$
507,595.85 507,595.85
- -
1,900.00 1,900.00
- - -
400.00 - 400.00
$ 400.00 ~509~495,85 i5~,895.85
SALINA AIRPORT AUTHORITY
BONDS OF INDEBTEDNESS
December 31, 1973
EXHIBIT B
Original Principal Outstanding
Issue Paid Balance
General Ob liga Lion Bonds
Schedule B-1 $ 790,000.00 $165,000.00 $ 625,000.00
Building Revenue Bonds - Series 1971
Schedule B-2 250,000.00 30,000.00 220,000.00
Building Revenue Bonds - Series 1972
Schedule B-3 500,000.00 35,000.00 465,000.00
Building Revenue Bonds - Series 1973
Schedule B-4 350,000.00 350,000.00
*Bui1ding Revenue Bonds - Series 1973-2
Schedule B-5 350,000.00 350,000.00
$2,240,000.00 $230,000.00 $2,010,000.00
*Proceeds of this bond issue were not received until January 23, 1974.
7
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION BONDS
December 31, 1973
Schedule B-1
Date of Issue:
Amount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
Outstanding Balance:
February 1, 1967
$790,000,00
4.25,3.375, 3.4%
February 1, 1988
$165,000.00
$625,000,00
Schedule of Payments
Due In Bond Bond
Year Principal Interest
1974 $ 35,000,00 $ 20,559,41
1975 35,000.00 19,378.16
1976 35,000,00 18,196.91
1977 40,000.00 16,931.29
1978 40,000.00 15,581.29
1979 40,000.00 14,231.29
1980 40,000,00 12,881.29
1981 45,000.00 11,446.92
1982 45,000.00 9,928.17
1983 45,000.00 8,409.42
1984 45,000.00 6,885,00
1985 45,000.00 5,355.00
1986 45,000.00 3,825.00
1987 45,000.00 2,295.00
1988 45,000.00 765.00
$625,000.00 $166.669.15
8
SALINA AIRPORT AUTHORITY
BUILDING REVENUE BONDS - Series 1971
December 31, 1973
Schedule B-2
Date of Issue:
Amount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
Outstanding Balance:
January L, 1971
$250,000.00
5%
January 1, 1981
$ 30,000.00
$220,000.00
Schedule of Payments
Due In Bond Bond
Year Principal Interest
1974 $ 20,000.00 $10,500.00
1975 20,000.00 9,500.00
1976 25,000.00 8,375.00
1977 25,000.00 7,125.00
1978 30,000.00 5,750.00
1979 30,000.00 4,250.00
1980 35,000.00 2,625.00
1981 35,000.00 875.00
$220,000.00 $49.000.00
9
SALINA AIRPORT AUTHORITY
BUILDING REVENUE BONDS - Series 1972
December 31, 1973
Date of Issue:
Amount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
Outstanding Balance:
July 1, 1972
$500,000.00
4 .5, 5/0
July 1, 1984
$ 35,000.00
$465,000.00
Schedule of Payments
Due In Bond Bond
Year Principal Interest
1974 $ 35,000,00 $ 21,900.00
1975 35,000,00 20,325.00
1976 35,000.00 18,750.00
1977 40,000.00 17,175.00
1978 40,000.00 15,375.00
1979 40,000.00 13 ,575.00
1980 45,000.00 11,775.00
1981 45,000.00 9,750.00
1982 50,000.00 7,500.00
1983 50,000.00 5,000,00
1984 50,000.00 2,500.00
$465,000.00 $143.625.00
Schedule B-3
10
SALINA AIRPORT AUTHORITY
BUILDING REVENUE BONDS - Series 1973
December 31, 1973
Schedule B-4
Date of Issue:
Amount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
Outstanding Balance:
January 1, 1973
$350,000.00
5.25%
February 1, 1985
$350,000,00
Schedule of Payments
Due In Bond Bond
Year Princ ipa1 Interest
1974 $ 25,000.00 $ 18,375.00
1975 25,000,00 17,062.50
1976 25,000.00 15,750.00
1977 25,000.00 14,437.50
1978 25,000,00 13,125.00
1979 25,000.00 11,812.50
1980 25,000,00 10,500.00
1981 25,000.00 9,187.50
1982 40,000,00 7,875.00
1983 40,000.00 5,775.00
1984 35,000.00 3,675.00
1985 35,000.00 918 .75
$350,000.00 $128,493.75
11
SALINA AIRPORT AUTHORITY
BUILDING REVENUE BONDS - Series 1973-2
December 31, 1973
Schedule B-5
Date of Issue:
Amount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
Outstanding Balance:
December 1, 1973
$350,000.00
6, 6,5%
December 1, 1985
$350,000.00
Schedule of Payments
Due in Bond Bond
Year Principal Interest
1974 $ 25,000.00 $ 22,000,00
1975 25,000.00 20,500.00
1976 25,000.00 19,000,00
1977 25,000.00 17,500,00
1978 25,000,00 16,000.00
1979 25,000.00 14,500.00
1980 25,000.00 13 ,000,00
1981 25,000.00 11,375.00
1982 40,000.00 9,750.00
1983 40,000.00 7,150.00
1984 35,000,00 4,550,00
1985 35,000,00 2,275.00
$350,000.00 $157,600.00
NOTE:
Proceeds of this bond issue were not received
until January 23, 1974.
12
SALINA AIRPORT AUTHORITY
RECONCILEMENT OF FISCAL AGENCY ACCOUNT
December 31, 1973
BALANCE WITH FISCAL AGENCY - January 1, 1973
REMITTANCES
Matured bonds
Interest coupons
Commission and postage
TOTAL REMITTANCES AND BEGINNING BALANCE
RETURNS
Cancelled bonds
Interest coupons paid
Commission and postage retained
BALANCE WITH FISCAL AGENCY - December 31, 1973
$ 35,000.00
21,893.75
38.40
$ 35,000,00
22,399.97
38.40
EXHIB IT C
$
506.22
56,932.15
$57,438.37
57,438.37
$
13
SALINA AIRPORT AUTHORITY
SCHEDULE OF INVESTMENTS
December 31, 1973
EXHIBIT D
Balance
1-1-73
Purchases
Year 1973
Redemptions
Year 1973
Balance
12-31-73
AIRPORT REVOLVING ACCOUNT
Certificates of deposit $165,000.00 $ 60,000.00 $ 165,000.00 $ 60,000.00
U.S. Treasury Bills 145,074.00 145,074.00
BUILDING REVENUE ACCOUNT
Certificates of deposit 61,000.00 622,000.00 656,000.00 27,000.00
U.S. Treasury Bills 206,714.93 206, 71¿f , 93
TOTAL -
GENERAL OPERATING FUND $226,000.00 $1.033,788,93 $1.027. 71¿f.93 $232,074.00
14
Workmen's Compensation
and Employer's
Liability
Comprehensive General
Liability
Manufacturers' and
Contractors'Liability
Rental Building 266
Rental Buildings -
Industrial
Rental Buildings -
Dwellings
Airport Terminal and
Rental Buildings
Vehicles
SALINA AIRPORT AUTHORITY
INSURANCE IN FORCE
December 31, 1973
Type of Coverage
Fire and lightning,
extended coverage,
vandalism and mali-
cious mischief
Fire and lightning,
extended coverage,
vandalism and mali-
cious mischief-rental
value insurance
Fire and lightning,
extended coverage
Fire and lightning,
extended coverage,
vandalism and mali-
cious mischief
Bodily injury
Property damage
Fire, lightning or
transportation, theft,
combined additional
coverage
EXHIBIT E
Amount of Co-Insurance
Coverage Percentage
$ 100,000.00
5,000,000.00
1,000,000.00
1,821,500.00
301,930.00
37,000.00
1,989,000.00
90
100/300,000.00
50,000.00
15
SALINA AIRPORT AUTHORITY
AIRPORT REVOLVING ACCOUNT
SCHEDULE OF AUDIT ADJUSTMENTS
December 31, 1973
Miscellaneous Income
Building Rents
To reverse correcting entry on sale of
two 1959 Ford pickups. Sales proceeds were
originally credited to Building Rents and
the correcting entry was recorded twice.
Fixed Base Operator
Landing Fees
To reclassify September 28, 1973, receipt
from TWA which was credited to the Fixed
Base Operator account in error.
Debit
$300.00
$872.50
EXHIB IT F
Credit
$300.00
$872,50
16