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Audit Report - 1975 IH)\KI1 01 !)IKH !"l<' '. í D \ --1 ,-, \ ,- ' , - ;'! C~-;~) , W'1 f' lI"n,,~ ; ",,<em." HEN E VI)R ( KSEN Va, Chwm.w IOHN I Zl'1MERMAN, S,-, -hoc DEAN 11" IER C J WERT! S.ALIN.A .AIRFOR T .A. UTHORJ:T"Y SALIN A MUNICIPAL AIRPORT I' 'i I', I " \ '-1\ '- ,,-,V, TFR\1INAl Bl'lLlJlN(' "O 120 f \1 I ,. IV\ I I SALlNA- KA""AS 67401 ,.co' ".-..,,; "'I"" S1.",,~'-' February 24, 1976 Gentlemen: The Salina Airport Authority submits an accounting of its operations for the calendar year 1975, as reported by A. H. Leckband & Co., its independent Certified Public Accountants. In general, 1975 was a very good year with increased air operations, increased construction, and increased employment at the Salina Airport IndustTial Center. Air operations increased 38% over 1974. This was due in large part to the increased operation of Aircraft Services Inc. including their pilot training school; also TWA pilot training in Lockheed 1011, conducted at Salina for All Air Nippon Airline, which was considerable last year. Construction continued at Tony's Pizza facility. A two-story addition was built on the northwest side of the plant. The top floor will house the executive offices and the bottom floor will give them increased warehouse space. Schwan's Sales Enterprises Inc. purchased the B & B Flight Inc. hangar on the ramp southwest of Fire Station #3 and leased a total of 5.9 acres of ramp space for a truck repair and distribution center for their fleet of refrigerated trucks. Beech Aircraft Corporation leased the 50,000 sq.ft. ElDorado Motor Home Plant building and remodeled it for aircraft manufacturing. This will provide space for complete manufacture of the pressurized Baron, and this operation will be complete sometime this spring and will increase Beech employment at Salina by 125 personnel. The former E1Dorado Building will also accommodate another manufacturing space for another aircraft at a later date. The Beech pressurized Baron was moved to Salina from Wichita and an assembly line installed in the big hangar along with the Beech Duke. The Airport Aid Development Project (ADAP) construction was completed; con- sisting of an overlay of Runway 4-22 and Taxiway #10; remarking of all runways and Taxiway #10 to conform to new FAA criteria; lighted wind socks at each end of Primary Runway 17-35; Omni Directional lead-in lights at the north end of Primary Runway 17-35; and some additional lighting controls. Completion of this work has resulted in considerable improvement to the runway facilities. The Authority received title to three blocks of barracks which were turned back to the U.S. Government by Kansas Technical Institute--two blocks east of the red and white water tower and the 200 block presently housing the ](ansas Military Page 2 Academy. The KMA has leased their present 200 block and the first block of barracks just east of the water tower from Salina Airport Authority and will start rehabilitating the block by the water tower in March of this year. The other block has been leased to Jarvis Construction Company and construction is underway to convert the barracks to an apartment complex. The Authority is working with the Salina Chamber of Commerce to get Jet service into Salina. This would be a Frontier Airlines Boeing 737 Jet and would service Salina, Topeka, Lincoln and Chicago. Frontier needs to finalize plans to go into O'Hara at Chicago with Civil Aeronautics Board. A planned and executed maintenance program for all Salina Airport Authority buildings, property, and the airfield facilities has been carried on during the year. We believe all properties are in good condition. The Salina Airport Authority appreciates the cooperation 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, tU~~OI~ITY ().ß ~A~ W. P. Horton Chairman WPH:ks SALINA AIRPORT AUTHORITY Salina, Kansas AUDIT REPORT Year 1975 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-5 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 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 February 3, 1976 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, 1975. 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 accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Salina Airport Authority has not maintained a record of its general fixed assets, and accordingly a statement of general fixed assets, required by generally accepted accounting principles, is not: included in this report. In our opinion, the accompanying exhibits and schedules reflect fairly the cash position of the Salina Airport: Authority at: December 31, 1975, and the results of its cash transactions for the year then ended on a basis consistent with that of the preceding year. // II, /;'_.::/1:( ;¡n,"- I (,;" I ,'- CERTIFIED PUBLIC ACCOUNTANTS L' ( : - 't;¿",--, (/, (,1/"""" Euge~e O. Harrison, Certified Public Accountant, Certificate No. 1401, in charge of and actively engaged on this audit. COMMENTS 1. The Salina Airport Authority is governed by a board of five directors appointed by the Ci ty Commiss ion of the City of Salina, KanSélS. The following directors served during the period of our examination: William P. Horton, Chairman Ben Vidricksen, Vice-Chairman C.F. Heath, Secretary-Treasurer-term John Zimmerman, Secretary-Treasurer Dean Tinkler C.J. Wertz-appointed April 26, 1975 expired April 26, 1975 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 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 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, 1975 Actual balances as of December 31, 1975 Bond Reserve Account $19,000.00 19,000.00 Replacement and pepreciation Account $12,000.00 12,000.00 :> S,;LI~A AIRPORT AUTHORITY GENERAL OPERATING F~~ EXHIBIT A STATE~ŒNT OF RECEIPTS, DISBL~SEME~ìS}_ABD COMPOSITION OF ENDING CASH BALANCES January 1 to December 31, 1975 January 1 to December 31, 1974 Airport Build ing General Airport Building General Revolving Revenue Operating Revolving Revenue Operating Account Account Fund Totals Account Account Fund Totals CASH AND INVESTMENTS - January 1 $296,801.80 $199,477 .61 $ 496,279.41 $210,162.01 $180,261.60 $ 390,423.61 RECEIPTS Operating revenues-Schedule A-I $410,603.72 $314,870,42 $ 725,474.14 $297,381.97 $307,678.11 $ 605,060.08 Proceeds from sale of Building Revenue Bonds - - - - 350,000.00 350,000.00 Accrued interest on sale of bonds - - - - 3,194.52 3,194.52 Proceeds of Airport Development Aid Program Grant 261,577 .33 - 261,577 .33 - - - TOTAL RECEIPTS $672,181.05 $314,870.42 $ 987,051.47 $297,381,97 $660,872.63 $ 958,25"'-.60 RECEIPTS AND BEGINNING BALANCE $968,982.85 $514,348,03 $1,483,330.88 $507,543,98 $841,134.23 $1,348,678.21 DISBURSEMENTS Operating expenditures-Schedule A-2 $264,541.01 $226,444.56 $ 490,985.57 $209,342.18 $236,604.09 $ 445,946.27 Capital expenditures-Schedule A-3 1,535.25 61,000.00 62,535.25 1,400.00 222,052.53 223,452.53 Loan repayment-Planters State Bank and Trust Co. - - - - 183,000.00 183,000.00 Airport Development Aid Program project expenditures 347,061.53 - 347,061.53 Overpayment to Kansas Public Employees Retirement Fund 2,062.61 - 2,062.61 TOTAL DISBURSEMENTS $615,200.40 $287,444.56 $ 902,644.96 $210,742,18 $641,656.62 $ 852,398.80 CASH AND INVESTMENTS-December 31 $353.782.45 $226,903.47 $ 580,685.92 $296,801.80 $199,477 .61 $ 496,279.41 AVAILABLE CASH AND INVESTMENTS-December 31 First National Bank & Trust Co. $ - $ 25,163,35 $ L5,163.35 $ - $ 37,356.64 $ 37,356,64 Planters State Bank & Trust Co. 53,873.46 - 53,873.46 10,527.36 - 10,527,36 National Bank of America - 90,740.12 90,740,12 - 129,120.97 129,120.97 First State Bank & Trust Co. 3,934.67 - 3,934.67 29,877.71 - 29,877.71 Certificates of Deposit 300,000.00 80,000.00 380,000.00 260,000.00 15,000.00 275,000.00 Certificates of Deposit-Bond Reserve - 19,000.00 19,000.00 - 11 ,000 .00 11,000.00 Certificates of Deposit-Replacement and Depreciation Reserve - 12,000.00 12,000.00 - 7,000.00 7,000.00 TOTAL $357,808.13 $226,903.47 $ 584,711.60 $300,405.07 $199,477 .61 $ 499,882.68 DEDUCT - Amounts withheld from payroll 4,025.68 - 4,025.68 3,603.27 - 3,603.27 TOTAL CASH M~ INVESr::D.ìS-December 31 ~353.782.45 ~J26.903.47 $n 580,685.92 $296,801.80 $199.477 .61 $ 496,279.41 3 January 1 ro December 31, 1975 Airport Building General Revolving Revenue Operating Account Account Fund Totals $186,983.99 $281,391.48 $468,375.47 6,721.83 5,185.00 11,906.83 5,975.00 1,090.00 7,065.00 14,380.00 14,380.00 4,677.50 4,777.50 58,867.64 67,384.59 77 5 .94 24,743.80 484.12 1,327.16 165.00 7,777.93 55,585.16 1,858.00 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND OPERATING REVENUES 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 Reimbursement-Airport security Insurance proceeds Miscellaneous income 100.00 58,867.64 67,384.59 77 5 . 94 18,511.64 165.00 7,777.93 55,585.16 1,755.00 TOTAL OPERATING REVENUES $410,603.72 Schedule A-l 6,232.16 484.12 1,327.16 103.00 lli3~870 .42 $725,474.14 ~ January 1 to December 31, 1974 Airport Building General Revolving Revenue Operating Account Account Fund Totals $184,480.15 $253,068.52 $437,548.67 5,365.00 5,185.00 10,550.00 3,96J.00 1,000.00 4,980.00 8,820.00 8,820.00 7,056.15 7,156.15 50,411.60 33,186.61 77 5 . 54 26,391.51 730 .26 22 , 513 . 84 180.00 100.00 5(,411.60 33,186.61 77 5 . 54 17,187.17 180.00 1, 715 .90 i297,381.97 9,204.34 730.26 22 , 513 . 84 100.00 $307_,678.11 1,815.90 $60.5,060.08 SALI~A AIRPORT AllHORITY GE~ERAL OPE~~TING FU~~ OPERATING EXPE~~ITL~ES OFFICE AND ADMINISTRATION Office salaries Office supplies Postage Car expense Travel expense Legal and auditing Insurance Interest on note Appraisal and abstract fees Engineering Social security tax Employees retirement Telephone Reimbursable charges Airport security Other office and administration TOTALS MAINTENANCE Building maintenance Runways, taxiways and ramps Equipment, gas, oil & repairs Utilities Grounds maintenance Janitor supplies Maintenance salaries Snow removal Airfield lighting equipment Signs Other maintenance expense TOTALS BOND AND INTEREST Bond principal redemmed Bond interest expense Bond commission and postage Expense relating to bond issue TOTALS TOTAL OPERATING EXPENDITURES Schedule A-2 January 1 to December 31, 1975 Airport Building General Revolving Revenue Operating Account Account Fund Totals $ 50,460.00 0/'\ 0 /'\ C ;JV7.V'" 277 .60 2,799.28 802.08 5 , 177 . 40 25,087.19 6,589.61 5,817.73 1,752.66 (9.30) 5,211.38 2,943.53 $107,818.21 $ 17,987.43 10,912.88 5,407.70 14,079.68 11,6"1.07 1,033.88 79,368.59 149.32 16,182.25 $156,722.80 $ $ $264~541.01 January 1 to December 31, 1974 Airport Building General Revolving Revenue Operating Account Account Fund Totals $ $50,460.00 $ 45,665.07 $ 909.05 614.32 277 .60 244.60 2,799.28 3,263.96 802.08 1,290.52 5,177 .40 6,419.09 25,087.19 23,841.43 1,052.72 147.50 268.98 6,589.61 5,482.86 5,817.73 4, 320 .71 1,752.66 1,601.93 (9.30) 22.27 5,211.38 3,551.78 2,943.53 2,576.23 1.00 $107,818.21 $ 99,163.75 1-L201.22 $ 17,987.43 $ 9,419.12 $ 10,912.88 6,928.87 5,407.70 5,388,60 14,079.68 10,535.89 11,601.07 7,233.75 1,033,88 1,014.82 79,368.59 63,905.83 - 248.10 149.32 849.44 - 1.69 16,182.25 4,652.32 - $156,722.80 $110,178.43 $ $ $ $ $140,000.00 $140,000.00 86,109.41 86,109.41 35.15 35.15 300.00 300.00 $226,444.56 $226,444.56 $226,444.56 $490,985.57 5 $ $140,000.00 92,678.16 36.67 2,688.04 $ $235,402.87 ~1~,342 .18 i.236. 604 .09 $ 45,665,07 614.32 244.60 3,263.96 1,290.52 6,419.09 23,841,43 1,052.72 147.50 268.98 5,482.86 4,320,71 1,601.93 22.27 3,551.78 2,577 ,23 $100,364,97 $ 9,419.12 6,928.87 5,388.60 10,535.89 7,233.75 1,014.82 63,905,83 248,10 849.44 1.69 4,652.32 $110,178.43 $140,000.00 92,678.16 36.67 2,688.04 $235,402.87 ~42.. 946.27 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND CAPITAL EXPENDITURES Equipment Self-propelled paint striper 1965 Ford truck Building improvements Building 1021-Rickel Manufacturing Corporation Building 266-Schwan's Sales Enterprises, Inc. Hangar-Nelson Aviation Building 986-Hastings Dynamold TOTAL CAPITAL EXPENDITURES Schedule A-3 January 1 to December 31, 1975 Airport Building General Revolving Revenue Operating Account Account Fund Totals $1,535.25 $ 25,000.00 36,000.00 ~535.25 $61,000.00 $ 1,535.25 25,000.00 36,000.00 $R535.25 6 January 1 to December 31, 1974 Airport Building General Revolving Revenue Operating Account Account Fund Totals $ 1,400.00 ~.L400 .00 $ 51,955.88 142,096.65 28~000.00 $222.. 052.53 $ 1,400.00 51,955.88 142,096.65 28,000.00 .t21.l.. 45 2 .53 SALINA AIRPORT AUTHORITY BONDS OF INDEBTEDNESS December 31, 1975 EXHIBIT B Original Principal Outstanding Issue Paid Balance -- General Obligation Bonds Schedule B-1 $ 790,000.00 $235,000.00 $ 555,000.00 Building Revenue Bonds - Series 1971 Schedule B-2 250,000.00 70,000.00 180,000.00 Building Revenue Bonds - Series 1972 Schedule B-3 500,000.00 105,000.00 395,000.00 Building Revenue Bonds - Series 1973 Schedule B-4 350,000.00 50,000.00 300,000.00 Building Revenue Bonds - Series 1973-2 Schedule B-5 350,000.00 50,000.00 300,000.00 $2,240,000.00 $510,000.00 $1,730,000.00 7 SALINA AIRPORT AUTHORITY GENERAL OBLIGATION BONDS December 31, 1975 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 $235,000.00 $555,000.00 Schedule of Payments Due in Bond Bond Year Principal Int:erest 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 $555.000.00 $126,731.58 p, SALINA AIRPORT AUTHORITY BUILDING REVENUE BONDS - SERIES 1971 December 31, 1975 Date of Issue: Amount of Issue: Interes t Ra te: Maturity Date: Principal Paid: Outstanding Balance: January 1, 1971 $250,000.00 5/0 January 1, 1981 $70,000.00 $180,000.00 Schedule of Payments Due in Bond Bond Year Principal Interest 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 $ 180.000.00 $ 29.000.00 Schedule B-2 9 SALINA AIRPORT AUTHORITY BUILDING REVENUE BONDS - SERIES 1972 December 31, 1975 Date of Issue: Amount of Issue: Interest Rate: Maturity Date: Principal Paid: Outstanding Balance: July 1, 1972 $500,000.00 4.5, 5% July 1, 1984 $105,000.00 $395,000.00 Schedule of Payments Due in Bond Bond Year Principal Interest 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, 77 5.00 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 $395,000.00 $101,400.00 Schedule B-3 10 SALINA AIRPORT AUTHORITY BUILDING REVENUE BONDS - SERIES 1973 December 31, 1975 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 $50,000.00 $300,000.00 Schedule of Payments Due in Bond Bond Yeélr Principal Interest 1976 $ 25,000.00 $ 15,093.75 1977 25,000.00 13,781.25 1978 25,000.00 12,468.75 1979 25,000.00 11,156.25 1980 25,000.00 9,843.75 1981 25,000.00 8,531.25 1982 40,000.00 6,825.00 1983 40,000.00 4,725.00 1984 35,000.00 2,756.25 1985 35,000.00 918.75 $300,000.00 $ 86,100.00 Schedule B-4 11 SALINA AIRPORT AUTHORITY BUILDING REVENUE BONDS - SERIES 1973-2 December 31, 1975 Schedule B-5 Date of Issue: Amount of Issue: Interest Rate: Maturity Date: Principal Paid: Outstanding Balance: December 31, 1973 $350,000.00 6, 6.5/0 December 1, 1985 $50,000.00 $300,000.00 Schedule of Payments Due in Bond Bond Year Principal Interest 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 D,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 $300,000.00 $115,100.00 12 SALINA AIRPORT AUTHORITY RECONCILEMENT OF FISCAL AGENCY ACCOUNT December 31, 1975 BALANCE WITH FISCAL AGENCY - January 1, 1975 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, 1975 $35,000.00 19,378.16 35.15 $35,000.00 18,871.94 35.15 ANALYSIS OF BALANCE WITH FISCAL AGENCY UNREDEMMED MATURED INTEREST COUPONS Bond No. 73 74 75 76 77 78 Coupon No. 16 16 16 16 16 16 EXHIBIT C $ 54 ,413 .31 $54,413 .31 53,907.09 $ 506.22 Amount $ 84.37 84.37 8¿¡. 3 7 84.37 84.37 84.37 $506.22 n SALINA AIRPORT AUTHORITY SCHEDULE OF INVESTMENTS December 31, 1975 Balance 1-1-75 AIRPORT REVOLVING ACCOUNT Certificates of deposit $260,000.00 BUILDING REVENUE ACCOUNT Certificates of deposit TOTAL - GENERAL OPERATING FUND 33,000.00 $293,000.00 Purchases Year 1975 $1,580,000.00 323,000.00 $1.903,000.00 Redemptions Year 1975 $1,540,000.00 245,000.00 $1. 785,000.00 EXHIBIT D Balance 17. -31-75 $300,000.00 111 ,000 .00 $411 ,000.00 14 Workmen's Compensation and Employer's Liability Comprehensive General Liability Owners, Landlords, and Tenants Liability Rental Building 266 Rental Buildings - Industrial Rental Buildings - Dwe 11 ings Airport Terminal and Rental Buildings Vehicles SALINA AIRPORT AUTHORITY INSURANCE IN FORCE December 31, 1975 Type of Coverage Bodily injury and property damage 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 Medical payments Uninsured motorists Amount of Coverage $ 100,000.00 5,000,000.00 1,000,000.00 1,821,500.00 301,930.00 37,000.00 1,824,000.00 100/300,000.00 50,000.00 31,300.00 2,000.00 15/30,000.00 EXHIBIT E Co-Insurance Percentage 90/0 15