Audit Report - 1986
SALIIL\ AIRPORT AUTHDRITY
Salina,
¡<ansa:::;
AUD I T !,:E?ORT
--------
Year 1'3.35
A. H. LECKBAND & CO., CPA, CHARTERED
Certified Public Accountants
Accounting Bldg., 719 East Crawford
Salina, Kansas 57401
SALInA AIRPCJF:T AUTHORITY
TABLE OF CONTENTS
Auditor's ¡~eport
1
Financial Statements
Balance Sheet
Statement of Revenues, Expenses and Changes
Statement af Changes in Financial Posltion
in Equity
2-]
4
5
Summary of Capital Expenditures
0
Notes to Financial Statements
7-3
SUPPLEMENTAL INFORMATION
----, "
-------
Financial Statements-Airport Revolving Account
Balance Sheet
Statement of Revenues, Expenses and Changes
Statement of Changes in Financial Position
in Equity
10
11-12
13
Capital Expenditures-Airport Revolvlng Account
14-15
Financial Statements-Building Revenue Account
Balance Sheet
Statement of Revenues, Expenses and Changes
Statement of Changes in Financial Position
H;-17
in Equity
13
19
Capital Expenditures-Building Revenue Account
20
Bonds of Indebtedness (Summary)
General Obligation Bonds
Building Revenue Bonds-Series 1984
Building Revenue Bonds-Series 1935
21
"-;>,
23
24
Reconcilement of Fiscal Agency Account
25
Schedule of Investments
2¡-:;
Insurance in Force
27
ADDITIONAL INFOf\MA Tlm¡ REQUIRED BY
0118 CIRCULAR A-128
Schedule of Federal Assistance Programs
Summary of Completed Federal Assistance
Auditor's Comments on Compliance
Auditor's Report on Internal Accounting
2E3
Programs
23
30
31-32
Control
A.
H.
LECKBAND
&
co.
CERTIFIED PUBLIC ACCOUNTANTS
719 EAST CRAWFORD SALINA, KANSAS 67401
A. H. LECK8AND, C.P.A.
EUGENE D. HARRISON, C.P.A.
THOMAS G. ARNETT, C.P.A.
MEM8ERS AMERICAN INSTITUTE OF CERTIFIED PU8L1C ACCOUNTANTS
ACCOUNTING DEPARTMENT (913) 827-7244
DATA PROCESSING DEPARTMENT (913) 827-7245
January 26,
1987
The Board of Directors
Salina Airport Authority
Sallna, Kansas
We have examined the financial statements listed ln the table of
contents of the Salina Airport Authority, Salina, Kansas, for the
year ended December 31, 1986. Our examination was made in accordance
with generally accepted auditing standards and the flinimum Standard
Audit Pro9ram approved by the State Municipal Accounting Board, and
accordingly included such tests of the accounting recor-ds and such
other auditing procedures as ~e considered necessary 1n the Clroum-
stances. We have previously ~xamined and reported on the financial
statements for the precedlng year, and have given an unqualified
opinion on them.
In our opinion, the aforementioned financial statements present fairly
the financial position of the General Operating Fund of the Salina
Airport Authori ty at December 31, 1936, and the results of its cper-
ations and changes in its financial position for the year then Ended,
in conformity with generally accepted accounting princlples applied on
a basis consistent with ~hat of t~e preceding year.
The accompanying supplemental information listed in the table of contents
lS not necessary for a fair presentation of the financial statements,
but is presented as additional analytical data. ;his information has
been subJected to the tests and other auditing procedures applled in
the examination of the financlal stateme~ts mentioned above and, ln our
opinion is fairly stated in all materlal respects in relation to the
financial statements tak~n 8S 3 whole.
A. H.
LECKBAND &. CO. t
CPA,
CHARTERED
-I / <r J "- /'
\ // / ::/ /. ~:lf
"=" ,.~~ ~~ '-._,
/ - ~
THOMAS G. ARNETT CPA
In charge of and actively
engaged in this audlt
Page 1
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
BALANCE SHEET
ASSETS
CURRENT ASSETS
Cash on hand
Cash in banks Note 4
Ce~tificates of deposit
Account receivable
Notes receivable-current
Note 5
portion
TOTAL CURRENT ASSETS
RESTRICTED ASSETS
Certificates of deposit
Bond Reserve Note 6
Replacement and depreciation
Cash in Bank
Economic development Note 8
Proceeds of land sale Note 9
TOTAL RESTRICTED ASSETS
FIXED ASSETS
Equipment
Buildings
Other improvements
Land
Less-accumulated depreciation
TOTAL FIXED ASSETS
OTHER ASSETS
Long-term notes receivable
Less-current portlon
TOTAL OTHER ASSETS
TOTAL ASSETS
Note 7
(continued)
$
$
$
$
Dece'l1ber 31
1986 1985
50.00 $
722,899.17 223,783.98
110,000.00 212,000.00
10,311.08 141,630.00
9,994.30 9,382.10
853,254.55 $ 585,796.08
40,000.00 $ 20,000.00
40,000.00 20,000.00
714,319.78
7,422.13 5,990.00
801,741. 91 $ 45,990.00
$ 828,070.45
6,510,900.07
3,240,158.16
1,018,057.50
$ 850,519.20
6,725,034.97
3,068,000.86
673,000.00
$11,597,186.19
2,835,202.89
$11,325,555.03
2,507,427.45
$ 8,761,983.30
$ 8,819,127.57
$ 57,151.17 $ 55,496.45
9,994.30 9.382.10
$ 47,155.87 $ 55,114.35
$ 9,509,028.00
$10,454,136.63
--------------
--------------
--------------
--------------
The notes to the financial statements are an integral part o:f this statement
Page 2
(continued)
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Ac=.ount payable
Payroll deductions
BcDd payable-current portion
Deferred rent income
Ac=.rued bond interest
TOTAL CURRENT LIABILITIES
LONG-TERM LIABILITIES
Bonds payable
Less-current portion
TOTAL LONG-TERM LIABILITIES
TOTAL LIABILITIES
RESTRICTED EQUITY
Bond reserve
Replacement & depreciation reserve
Economic development reserve
Proceeds o£ land sale reserve
TOTAL RESTRICTED EQUITY
EQUITY-UNRESTRICTED
TOT AL EQUITY
TOTAL LIABILITIES & EQUITY
December 31
1986 1985
$
$ 156,980.00
4,447.21 2,803.11
145,000.00 75,000.00
9,915.11 12,526.45
11,508.34 7,739.17
170,970.55 $ 255,048.74
$
$ 1,290,000.00
145,000.00
$ 515,000.00
75,000.00
$ 440,000.00
$ 595,048.74
$ 20,000.00
20,000.00
$ 1,145,000.00
$ 1,315,970.55
$
40,000.00
40,000.00
714,319.78
7,422.13
5,990.00
$ 801, 741. 91
8,345,424.05
$ 45,990.00
8,755,989.25
$ 9,148,16=,.97
$ 8,813,979.25
$10,454,135.53
$ 9,509,028.00
--------------
--------------
--------------
--------------
Page 3
The notes to financial statements are an integral part of ':his statement.
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN EQUITY
January 1 to December 31
1986 1985
REVENUES
Operating revenues
Income from mill levy
Proceeds of Airport Development Aid
Program grants
Sale of property
Interest on property sales
Interest on investments
$1,243,068.17
36,445.31
126,055.22
60,543.32
7,345.98
83,336.06
TOTAL REVENUES
$1,556,794.06
EXPENSES
Office and administration
Maintenance
Bond interest and expenses
Depreciation
$
294,797.66
284,918.41
114,871. 42
459,840.90
TOTAL EXPENSES
$1,154,428.39
REVENUES LESS EXPENSES
$
402,365.67
-------------
-------------
EQUITY-January 1
PRIOR PERIOD ADJUSTMENT
$8,813,979.26
(68,178.96)
Note 10
RESTATED EQUITY-January 1
REVENUE LESS EXPENSES
$8,745,800.30
402,365.67
EQUITY-December 31
PROVISION FOR-Bond reserve
PROVISION FOR-Replacement &
Depreciated reserve
PROVISION FOR-Economic development
PROVISION FOR-Proceeds of bond sale
reserve
$9,148,155.97
(40,000.00)
reserve
(40,000.00)
(714,319.78)
(7,422.13)
EQUITY-UNRESTRICTED
$8,346,424.06
-------------
-------------
$1,089,903.00
73,278.43
736,356.82
6.990.00
9,218.18
94,802.28
$2,010,548.71
$
274,142.88
317,519.59
45,536.04
417,897.4.
$1,055,095.95
$
955,452.76
-------------
-------------
$7,858,526.50
$7,858,526.50
955,452.76
$8,813,979.26
(20,000.00)
(20,000.00)
(6,990.00)
$8,766,989.26
-------------
-------------
The notes to financial statements are an integral part of this statement.
Page 4
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
WORKING CAPITAL PROVIDED BY:
Revenues less expenses
Items not effecting working capital
Depreciation
Gain on sale of fixed assets
WORKING CAPITAL PROVIDED BY OPERATIONS
Proceeds from sale of fixed assets
Decrease in restricted assets
Decrease in long-term receivables
Increase in long-term debt
Undepreciated cost, asset traded
Decrease in working capital
TOTAL WORKING CAPITAL PROVIDED
WORKING CAPITAL APPLIED TO:
Capital expenditures
Reduction of long-term liabilities
Increase in restricted assets
Increase in working capital
TOTAL WORKING CAPITAL APPLIED
CHANGES IN WORKING CAPITAL
Current Assets-Increase (Decrease)
Cash in banks and cash on hand
Certificates of deposit
Accounts receivable
Notes receivable current portion
Prepaid bond interest
Current Liabilities-Decrease (Increase)
Accounts payable
Payroll deductions
Bonds payable-current portion
De£erred rent income
Accrued bond interest
TOTAL INCREASE (DECREASE) IN WORKING CAPITAL
January 1 to December
1986 1985
$
402,365.67
$
955,452.76
459,840.90
(60,543.32)
,..
;:;>
801,663.25
417,897.44
(6,990.00)
$1,366,360.20
6,990.00
16,010.00
9,883.67
'305,881,18
$2,306,125.05
-------------
-------------
$2,231,125.05
75,000.00
$2,306,125.05
-------------
-------------
$
45,179.66
(908,000.00)
141,530.00
( 471.62)
( 3,978.75)
597,750.00
8,957.48
705,000.00
471. 10
$2, 113, 841. 83
-------------
-------------
$1,008,553.37
754,751. 91
350,536.55
$2,113,841.83
-------------
-------------
$ 499,155.19
(102,000.00)
(131,318.92)
612.20
156,980.00
(1,644.10)
(70,000.00)
2, 611. 35
(3,869.17)
$
350,536.55
(156,980.00)
( 482.75)
( 20,000.00)
( 6,610.43)
2,832.71
$ (906,881,18)
--------------
--------------
The notes to financial sta~ements are an integral part of this statement.
Page 5
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-------------
SALINA AIRPORT AUTHORITY
GENERAL OPERATING FUND
CAPITAL EXPENDITURES
January 1 to December 31
1986 1985
Equipment
$
48,267.45
$
189,396.85
Buildings
443,071. 12
1,101,393.30
Other improvements
172,157.30
745,344.90
Land
345,057.50
195,000.00
TOTAL CAPITAL EXPENDITURES
$1,008,553.37
$2,231,125.05
-------------
-------------
-------------
-------------
The notes to financial statements are an integral part of this statement.
Page 6
THE SALINA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
December 31, 1986
,
~.
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:
Thomas J. Kennedy, Chairman
Kenneth C. Stephenson, Vice-Chairman
Ed D. Pogue, Secretary
Charles Walker, Treasurer
Robert D. Wilbur, Assistant Secretary-Treasurer
2.
The following officials, appointed by the Salina Airport Authority
Board of Directors, served during the period of our examination:
Timothy F. Rogers, Executive Director
Donald C. Kneubuhl, Director of Operations
3.
Summary of accounting policies
A. The General Operating Fund is composed of two account~3-the Airport
Revolving Account and the Building Revenue Account. The Airport
Revolving Account is used for general airport operations and the
Building Revenue Account is for segregation of monies and estab-
lishment of reserves as provided by the bond ordinances. The
provisions of the bond ordinances have been complied with.
B.
The accrual basis of accounting is used.
C.
Depository security is adequate for all accounts.
D.
Investments are stated at cost.
~
~.
Fixed assets are stated at cost. Depreciation is computed uslng
the straight-line method based on estimated useful llves as
follows:
Equipment
Buildings
Other improvements
5 - 10 years
15 - 30 years
20 years
4.
Composition of cash in bank balances
Bank IV, Salina, Kansas
National Bank of America, Salina, Kansas
$
222,436.66
500,452.51
$
722,899.17
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-------------
Page 7
5.
5.
SALINA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 1985
Composition of certificates of deposit
National Bank of America, Salina, Kansas
Bank IV, Salina, Kansas
First Bank and Trust Co., Salina, Kansas
$
4,000.00
5,000.00
100,000.00
$
110,000.00
-----,--------
-------------
The Building Revenue Bond agreements for this Series 1984 and Series
1985 Building Revenue Bonds, require set-aside Bond Reserve at Decem-
ber 31, 1986 of $30,000.00 and $10,000.00, respectively.
Composition of Bond Reserve certificates of deposit
Bank IV, Salina, Kansas
National Bank of America, Salina, Kansas
$
20,000.00
20,000.00
$
40,000.00
-------------
-------------
The Building Revenue Bond agreements for the Series 1984 and Series
1985 Building Revenue Bonds require set-aside Replacement and Dep-
reciation Account at December 31, 1985 of $30,000.00 and 510,000.00
respectively.
7.
Composition of Replacement and Depreciation Account
certificates of deposit
National Bank of America, Salina, Kansas
First National Bank and Trust, Salina, Kansas
$
20,000.00
20,000.00
$
40,000.00
-------------
-------------
8.
The board of directors of the Salina, Airport Authority rt?solved on
May 14, 1986 to create a restricted account for economic development.
Composition of Economic Development account
Cash in bank, First National Bank & Trust Co.,
Salina, Kansas
Repurchase Agreement First National Bank & Trust Co.,
Salina, Kansas
$
11,005.78
703,313.00
$
714,319.78
-------------
-------------
The proceeds from a 1985 land sale and earnings on those proceeds
by the Authority are restricted to distributions to be approved
by the Federal Aviation Administration.
9.
Composition of cash in bank balance
Bank IV, Salina, Kansas
Page 8
$
7,422.13
-------------
-------------
SALINA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 1985
10.
The December 31, 1985 inventory of fixed assets revealed that
certain fixed assets had not been removed from the accounts when
the assets were sold, abandoned or demolished in prior years.
This adJustment recognizes the removal of these fixed assets
from the accounts.
Cost
Accumulated Depreciation
$ 155,154.53
87,985.57
Undepreciated Cost
$
58,178.95
------------
------------
Page 9
SALINA AIRPORT AUTHORITY
AIRPORT REVOLVING ACCOUNT
BALANCE SHEET
ASSETS
CURRENT ASSETS
Cash on hand
Cash in banks
Accounts receivable
TOTAL CURRENT ASSETS
FIXED ASSETS
Equipment
Buildings
Other improvements
Less-accumulated depreciation
TOTAL FIXED ASSETS
RESTRICTED ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Payroll deductions
Deferred rent
AND EQUITY
TOTAL CURRENT LIABILITIES
RESTRICTED EQUITY
Economic development reserve
Proceeds of bond sale reserve
TOTAL RESTRICTED EQUITY
EQUITY-UNRESTRICTED
TOTAL EQUITY
TOTAL LIABILITIES & EQUITY
Decem':>er 31
1986
$
50.00
222,436.66
10, 161. 08
1985
$
54,702.40
141,282.00
s
195,984.40
$
232,647.74
$ 860,519.20
2,994,999.66
3,068,000.86
$6,923,519.72
1,379,515.75
$5,544,003.97
$
6,990.00
$ 828,070.46
2,459,201. 30
3,240,158.16
$6,527,429.92
1,600,012.40
$4,927,417.52
$
721,741. 91
$5,746.978.37
-------------
-------------
$
156,980.00
2,803.11
12,526.46
$5,881,807.17
-------------
-------------
$
4,447.21
9,715.11
$
14,162.32
s
172,309.57
$
714,319.78
7,422.13
$
6,990.00
$ 6,990.00
5,567,678.80
$5,574,668.80
$5,746,978.37
-------------
-------------
Page 10
The notes to financial statements are an integral part of this statement.
$ 721, 741. 91
5,145,902.94
$5,867,644.85
$5,881,807.17
-------------
-------------
SALINA AIRPORT AUTHORITY
AIRPORT REVOLVING ACCOUNT
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN EQUITY
TOTAL OTHER REVENUES
January 1 to December 31
1986 1985
$ 469,145.16 $ 382,685.81
20,690.01 10,924.67
10, 991. 43 30,159.86
36,169.80 43,257.00
500.00 2,184.74
85,050.14 77,907.41
6,302.22 16, 731. 06
9,183.44 7,444.62
7,544.00 10, 131. 36
1,267.48 3,127.01
$ 646,843.68 $ 584.553.54
$ 60,543.32 $ 6,990.00
126,055.22 736,356.82
36,445.31 73,278.43
33,724.25 12,048.44
$ 256,768.10 $ 828,673.69
$ 903,611.78 $1,413.227.23
REVENUES
OPERATING REVENUES
Building rents
Agricultural land rents
Other land rents
Hangar rents
Other rents
Fixed base operator
Landing fees
Commissions
Ramp rents
Miscellaneous income
TOTAL OPERATING REVENUES
OTHER REVENUES
Sale of Property
Proceeds from Airport Development Aid
program grants
Income from mill levy
Interest on investments
TOTAL REVENUES
EXPENSES
OPERATING EXPENSES
Office and Administration
Office salaries
Office supplies
Postage
Travel expense
Agricultural land expense
Legal and auditing
Insurance
Engineering
Payroll taxes
Employees retirement
Telephone
Industrial development program
Promotion
Other office and administration
SUB-TOTAL
$ 92,862.11 $ 82,903.81
3,242.96 3,090.47
2,352,54 3,050.13
6,750.57 5,883.04
4,652.65 5,110.97
28,896.05 28,010.32
60,370.68 43,975.57
20,517.81 18,646.67
16,880.65 14,636.13
6,364.01 7,050.06
4,973.58 5,071. 34
20,000.00 15,000.00
13,949.01 9,000.62
11,074.38 29,971.88
$ 292,887.00 $ 271,401.01
(continued)
Page 11
SALINA AIRPORT AUTHORITY
AIRPORT REVOLVING ACCOUNT
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN EQUITY
(continued)
January: to December 31
1986 1985
Maintenance
Building maintenance
Runways, taxiways, and ramps
Equipment, gas, oil and repairs
Utilities
Grounds maintenance
Maintenance salaries
Snow removal
Fire department expense
Other maintenance expense
$
36,419.98
22,204.81
19,732.48
36,186.94
11,067.013
143, 144. 2:2
$
30,354.23
23,887.10
39,627.86
49, 121. 00
12,229.20
108,015.89
2,545.75
15,297.09
24,086.56
5, 357. 913
10,804.92
Depreciation
$ 284,918.41 $ 305, 164.68
$ 329,973.01 $ 301,462.32
$ 907,778.42 $ 878,028.01
$ (4,166.64) $ 535, 199.22
------------.- -------------
------------- -------------
SUB-TOTAL
TOTAL EXPENSES
REV~NUES LESS EXPENSES
EQUITY-January 1
PRIOR PERIOD ADJUSTMENT
$5,574,668.80 $3,311,103.21
(33,508.0'7)
EQUITY-December 31
REVENUE LESS EXPENSES
TRANSFERS FROM BUILDING REVENUE ACCOUNT
5,541,160.7:3
(4,166.64)
330,650.76
3,311, 103.21
535,199.22
1,728,366.37
PROVISION FOR-Economic development reserve
PROVISION FOR-Proceeds of land sale reserve
$5,867,644.85 $5,574,668.80
(714,319.78)
(7,422.13) (6,990.00)
EQUITY-UNRESTRICTED
$5,145,902.94
$5,567,678,80
-------------
-------------
-------------
-------------
The notes to financial statements are an integral part of this statement.
Page 12
SALINA AIRPORT AUTHORITY
AIRPORT REVOLVING ACCOUNT
STATEMENT OF CHANGES IN FINANCIAL POSITION
WORKING CAPITAL PROVIDED BY:
Revenues less expenses
Items not effecting working capital
Depreciation
Gain on sale of fixed assets
WORKING CAPITAL PROVIDED BY OPERATIONS $
Proceeds from sale of fixed assets
Transfers from Building Revenue Account
Undepreciated cost, asset traded
TOTAL WORKING CAPITAL PROVIDED
WORKING CAPITAL APPLIED TO:
Capital expenditures
Buildings transferred from Building
Revenue Account
Increase in restricted assets
Increase in working capital
TOTAL WORKING CAPITAL APPLIED
CHANGES IN WORKING CAPITAL
Current Assets-Increase (Decrease)
Cash in banks & cash on hand
Certificates of deposit
Accounts receivable
Current Liabilities-Decrease (Increase)
Accounts payable
Payroll deductions
Deferred rent
Due to Building Revenue Account
TOTAL INCREASE (DECREASE) IN WORKING CAPITAL $
January 1 to December 31
1986 1985
(4,166.64) $ 535,199.22
329,973.01 301,462.32
(60,543.32) (6,990.00)
265,263.05 $ 829,671. 54
597,750.00 6,990.00
330,650.76 1,728,366.37
471.10
$
$1,194,134.91
-------------
-------------
$
284,572.41
$2,565,027.91
-------------
-------------
$1,479,551. 75
234,516.18
6,990.00
843,959.98
$2,565,027.91
-------------
-------------
$ 14,981. 56
( 50,000.00)
141,282.00
(156,980.00)
( 482.75)
( 12,526,46)
907,685.63
$ 843,959.98
--------------
--------------
The notes to financial stat€ments are an integral part of this statement.
Page 13
714,751. 91
194,810.59
$1,194,134.91
-------------
-------------
$
167,784.26
(131,120.92)
156,980.00
(1,644.10)
2, 811. 35
194,810.59
-------------
-------------
SALINA AIRPORT AUTHORITY
AIRPORT REVOLVING ACCOUNT
CAPITAL EXPENDITURES
EQUIPMENT
Office equipment
Hesston tractor
Regancy Scanner
Mobile Radio
Bush Hog Mower
1985 Dodge Pick-Up
Restaurant equipment
ProJector Case &.Screen
Idaho Norland snow blower-AlP 04
Mower
1986 Chevrolet pick-up
Mobil radios
Office equipment
Spraying equipment
Shop equipment
TOTAL EQUIPMENT
BUI~DINGS
A.S.I. Hangar door
A.S.I. Hangar
Terminal bldg. improvement
Maintenance shed
Scientific eng. bldg. 512 lmprovement
Keystone Railway Equipment bldg.
improvement
Bldg. 959 improvement
Eldorado Motor Corporation bldg.
Federal Express bldg. improvement
Airport Industrial Center
TOTAL BUILDINGS
(continued)
Page 14
January 1 to December 31
1986 1985
$ $ 4,961.92
10,360.00
430.90
875.00
5,430.00
9,400.00
464.84
494.19
156,980.00
9,885.00
10,497.00
7,380.55
14, 901. 69
1,205.43
4,397.78
$ 48,267.45 $ 189,396.85
$ 10,553.00 $ 35,000.00
300,000.00
12,692.64 18,121. 55
15,338.50
20,000.00
36,367.00
42,350.00
45, 511. 52
32, 121. 43
40,902.02
$ 64,147.66 $ 544,820.00
SALINA AIRPORT AUTHORITY
AIRPORT REVOLVING ACCOUNT
CAPITAL EXPENDITURES
(continued)
OTHER IMPROVEMENTS
Fencing
Xetec paving
Runway AIP-04
Taxiway overlay AIP-03
MMA paving
Federal Express paving
AlP 05 Master plan update
AlP 06 Runway overlay fire station
and supporting communications
AlP 07 Lighting proJect
AlP 08 Runway taxiway paving
AlP 09 Runway 12/30 paving
TOTAL OTHER IMPROVEMENTS
TOTAL CAPITAL EXPENDITURES
January 1 to December 31
1986 1985
$
25,808.18
108,037.00
26,653.12
5,079.00
6,580.00
$
172,157.30
$
45,001. 32
5,227.25
609,107.71
39,436.04
20,950.75
17,745.60
1,396.47
$
284,572.41
5,479.76
$
745,344.90
-------------
-------------
$1,479,561. 75
-------------
-------------
The notes to financial statements are an integral part of this statement.
Page 15
SALINA AIRPORT AUTHORITY
BUILDING REVENUE ACCOUNT
BALANCE SHEET
ASSETS
CURRENT ASSETS
Cash in banks
Certificates of deposit
Accounts receivable
Notes receivable current
portion
TOTAL CURRENT ASSETS
RESTRICTED ASSETS
Certificates of deposit
Provision for Bond Reserve
Provision for Replacement and
Depreciation
TOTAL RESTRICTED ASSETS
FIXED ASSETS
Buildings
Land
Less-accumulated depreciation
TOTAL FIXED ASSETS
OTHER ASSETS
Long-term notes receivable
Less-current portion
TOTAL OTHER ASSETS
TOTAL ASSETS
(continued)
December 31
1986 1985
$ 500,462.51 $ 169, 081. 58
110,000.00 212,000.00
150.00 348.00
9,994.30 9,382,10
$ 620,606.81 $ 390,811. 68
$ 40,000.00 $ 20,000.00
40,000.00 20,000.00
$ 80,000.00 $ 40,000.00
$4,051,698.77
1,018,057.50
$3,730,035.31
673,000.00
$5,069,756.27
1,235,190.49
$4,403,035.31
1, 127, 911. 71
$3,834,565.78
$3,275,123.60
$
57,151.17
9,994.30
65,496.45
9,382.10
$
$
47,156.87
56,114.35
$
$4,582,329.46
$3,762,049.63
-------------
-------------
-------------
-------------
The notes to financial statements are an integral part of this statement.
Page 16
(continued)
December 31
1986 1985
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Bonds payable-current portion
Deferred rent income
Accrued bond interest
$
145,000.00
200.00
11,608.34
TOTAL CURRENT LIABILITIES
$
156,808.34
LONG-TERM LIABILITIES
Bonds payable
Less-current portion
$1,290,000.00
145,000.00
TOTAL LONG-TERM LIABILITIES
$1,145,000.00
TOTAL LIABILITIES
$1,301,808.34
RESTRICTED EQUITY
Bond reserve
Replacement and depreciation reserves
$
40,000.00
40,000.00
TOTAL RESTRICTED EQUITY
EQUITY-UNRESTRICTED
$ 80,000.00
3, 200, 521. 12
TOTAL EQUITY
$3,280,521. 12
TOTAL LIABILITIES & EQUITY
$4,582,329.46
-------------
-------------
$
75,000.00
7,739.17
$
82,739.17
s
515,000.00
75,000.00
$
440,000.00
$
522,739.17
$
20,000.00
20,000.00
$ 40,000.00
3,199,310.46
$3,239,310.46
$3,762,049.63
-------------
-------------
The notes to financial statements are an integral part of this statement.
Page 17
SALINA AIRPORT AUTHORITY
BUILDING REVENUE ACCOUNT
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN EQUITY
TOTAL OTHER REVENUES
January 1 to December 31
1986 1985
$ 511,935.10 $ 412,754.44
19,467.03 31,767.47
19,272.36 13,295.00
45,450.00 45,000.00
100.00 2,532.55
$ 596,224.49 $ 505,349.46
$ 7,345.98 $ 9,218.18
49,611.81 82,753.84
$ 56,957.79 $ 91,972.02
$ 653,182.28 $ 597, 321. 48
REVENUES
OPERATING REVENUES
Building rents
Agricultural land rents
Other land rents
Tank farm rent
Other rents
TOTAL OPERATING REVENUES
OTHER REVENUES
Interest on sale of property
Interest on investments
TOTAL REVENUES
EXPENSES
OPERATING EXPENSES
Agricultural land expenses
Building maintenance
Engineering
Bond interest expense
Expense relating to bond issues
Depreciation
$ 1,910.66 $ 2,158.12
8,352.79
4,002.12
108,494.17 45,536.04
6,377.25 583.75
129,867.89 116,435.12
$ 246,649.97 $ 177,067.94
$ 406,532.31 $ 420,253.54
------------- -------------
------------- -------------
TOTAL EXPENSES
REVENUES LESS EXPENSES
EQUITY-January 1
PRIOR PERIOD ADJUSTMENT
$3,239,310.46
(34,670.89)
$4,547,423.:29
REVENUES LESS EXPENSES
TRANSFERS TO AIRPORT REVOLVING ACCOUNT
$3,204,639.57
406,532.31
(330,650.76)
$4,547,4:23.29
420,253.54
(1,728,366.37)
EQUITY-December 31
PROVISIONS FOR-Bond reserve
PROVISIONS FOR-Replacement &
Depreciation reserve
$3, 280, 521. 12
(40,000.00)
$3,239,310.46
(20,000.00)
(40,000,00)
(20,000.00)
EQUITY-UNRESTRICTED
$3, 200, 521. 12
$3,199,310.46
-------------
-------------
-------------
-------------
The notes to financial statements are an integral part of this statement.
Page 18
SALINA AIRPORT AUTHORITY
BUILDING REVENUE ACCOUNT
STATEMENT OF CHANGES IN FINANCIAL POSITION
WORKING CAPITAL PROVIDED BY:
Revenues over expenses
Items not effecting working capital
Depreciation
WORKING CAPITAL PROVIDED BY OPERATIONS $
receivable
debt
to Airport
Decrease in long-term
Increase in long-term
Buildings transferred
Revolving Account
Decrease in restricted assets
Decrease in working capital
TOTAL WORKING CAPITAL PROVIDED
WORKING CAPITAL APPLIED TO:
Capital expenditures
Transfers to Airport Revolving
Increase in restricted assets
Increase in working capital
Account
TOTAL WORKING CAPITAL APPLIED
CHANGES IN WORKING CAPITAL
Current Assets-Increase (Decrease)
Cash in banks
Certificates of deposit
Accounts receivable
Notes receivable current portion
Prepaid bond interest
Due from Airport Revolving Account
Current Liabilities-Decrease (Increase)
Bonds payable current portion
Deferred rent income
Accrued bond interest
TOTAL INCREASE (DECREASE) IN WORKING CAPITAL $
January 1 to December 31
1986 1985
$
406,532.31
$
420,253.54
129,867.89
536,400.20
8,957.48
705,000.00
$ 1,250,357.68
--------------
--------------
$
723,980.96
330,650.76
40,000.00
155,725.96
116,435.12
$
563,688.66
$ 1,250,357.68
--------------
--------------
$
331,380.93
(102,000.00)
(198.00)
612.20
9,883.67
234,516.18
23,000.00
1,750,841. 15
$ 2,554,929.67
--------------
--------------
$ 751,563.30
1,728,366.37
75,000.00
$ 2,554,929.67
--------------
--------------
$
30,198.10
(858,000.00)
348.00
( 471. 52)
( 3,978.75)
( 907,685.53)
(70,000.00)
(200.00)
(3, 869. 17)
155,725.96
--------------
--------------
20,000.00)
5,916.03
2,832.71
$ (1,750,841. 16)
--------------
--------------
The notes to financial statements are an integral part of this statement.
Page 19
SALINA AIRPORT AUTHORITY
BUILDING REVENUE ACCOUNT
CAPITAL EXPENDITURES
January 1 to December 31
1986 1985
BUILDING
Ag Chem Building 1021 improvements
Schwan's Tech Center
Schwan's Ingredients Cooler
Schwan's Bldg. 820 Improvement
$ 15,000.00 $ 156,563.30
400,000.00
350,000.00
13,923.46
185,000.00
115,212.50 10,000.00
229,845.00
$ 723,980.96 $ 751,563.30
------------- ------------
------------- ------------
LAND
Hocking 80 acres
Johnson 80 acres
S.R. & G. 77 acres
TOTAL CAPITAL EXPENDITURES
The notes to financial statements are an integral part of this statement.
Page 20
General Obligation Bonds
Building Revenue Bonds
Series 1984
Building Revenue Bonds
Ser~es 1985
SALINA AIRPORT AUTHORITY
BONDS OF INDEBTEDNESS
December 31, 1986
Original
Issue
$
790,000.00
400,000.00
900,000.00
$2,090,000.00
-------------
-------------
Page 21
Principal
Paid
$
700,000.00
50,000.00
50,000.00
$
800,000.00
-------------
-------------
Outstanding
Balance
$
90,000.00
350,000.00
850,000.00
$1,290,000.00
-------------
-------------
THE SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION BONDS
December 31, 1986
Date of Issue:
Amount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
Outstanding Balance:
February 1, 1967
$790,000.00
4.25, 3.375, 3.4X
February 1, 1988
$700,000.00
$ 90,000.00
Schedule of Payments
Due in
Year
1987
1988
Bond
Principal
$ 45,000.00
45,000.00
$ 90,000.00
-----------
-----------
Page 22
Bond
Interest
$ 2,295.00
765.00
$ 3,060.00
----------
----------
SALINA AIRPORT AUTHORITY
BUILDING REVENUE BONDS-SERIES 1984
December 31, 1986
Date of Issue:
Amount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
Outstanding Balance:
Schedule of Payments
Due in
Year
Bond
Principal
1987
1988
1989
1990
1991
1992
1993
1994
$ 30,000.00
30,000.00
40,000.00
40,000.00
50,000.00
50,000.00
50,000.00
60,000.00
$350,000.00
-----------
-----------
*Interest rate to be calculated on each interest
payment date for the ensuing six months period.
Page 23
May 1, 1984
$400,000.00
*
May 1, 199<;,
$400,000.00
$350,000.00
Bond
Interest
$ *
*
*
*
*
*
*
*
$
*
--_u_-----
-----------
THE SALINA AIRPORT AUTHORITY
BUILDING REVENUE BONDS-SERIES 1985
December 31, 1986
Maturity Date
Principal amount
Outstanding balance
December 1, 198:5
January 17, 198E;
Variable, Maximum
10.04%-Minimum 8.00%
December 1, 199:5
$900,000.00
850,000.00
Date of Bonds
Date of Issue
Interest rate
SCHEDULE OF PAYMENTS
Bond
Principal
Due in
Year
1987
1988
1989
1990
1991
1992
1993
1994
1995
$
70,000.00
70,000.00
70,000.00
90,000.00
90,000.00
110,000.00
110,000.00
110,000.00
130,000.00
$ 850,000.00
------------
------------
Page 24
SALINA AIRPORT AUTHORITY
RECONCILEMENT OF FISCAL AGENCY ACCOUNT
December 31, 1986
BALANCE WITH FISCAL AGENCY-January 1,
1986
REMITTANCES
Matured bonds
Interest coupons
Bond commission and postage
TOTAL REMITTANCES AND BEGINNING BALANCE
RETURNS
Cancelled bonds
Interest coupons
Commission and postage retained
BALANCE WITH FISCAL AGENCY-December 31,
1986
Page 25
$45,000.00
3,825.00
$45,000.00
3,825.00
$
48,825.00
$48,825.00
$48,825.00
$
----------
----------
AIRPORT REVOLVING ACCOUNT
Certificates of deposit
BUILDING REVENUE ACCOUNT
Certificates of deposit
TOTAL GENERAL OPERATING
Fund
SALINA AIRPORT AUTHORITY
SCHEDULE OF INVESTMENTS
December 31, 1986
Balance Purchases Redemptions Balance
1-1-86 Year 1986 Year 1986 12-31-86
$ $ $ $
212,000- 102,000 110,000
$
212,000
$
$
102,000
$
110,000
----------
----------
---------
---------
----------
----------
----------
----------
Page 26
Workmen's Compensation
and Employer's Liability
Comprehensive General
Liability
Owners', Landlords', and
Tenants' Liability
Rental Buildings-
Industrial
Airport Terminal and
Rental Buildings
Vehicles and Equipment
Public Employees
Blanket Bond
Public officials and
Employees liability
SALINA AIRPORT AUTHORITY
INSURANCE IN FORCE
December 31, 1986
Type of Coverage
Bodily inJury and
property damage
Bodily inJury and
property damage
Fire and lightning,
extended coverage,
vandalism and malicious
mischief-loss of rents
Amount of
Coverage
Co-Insurance
Percentage
$
100,000.00
500,000.00
500,000.00
772,479.00
Fire and lightning,
extended coverage,
vandalism and malicious
mischief 3,657,000.00
Liability
Physical damage
Medical payments
Uninsured motorists
Honesty blanket
position bond coverage
90%
500,000.00
577,260.00
2,000.00
25/50,000.00
100,000.00
Errors & omissions
including asbestos &
pollution coverage on a
claims made basis 1,000,000.00
Page 27
SALINA AIRPORT AUTHORITY
SCHEDULE OF FEDERAL ASSISTANCE
CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER 20.106
For the year ended December 31, 1986
Program
Title
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Runway overlay snow blower
Federal Aviation Administration
Master plan update 1985-1991
Federal Aviation Administration
Runway overlay, Fire Station
and supporting communications
Expenditures
During
Federal ID Number Year
3-30-0072-04
$
3-20-0072-05
25,808.18
3-20-0072-06
108,037.00
Federal Aviation Administration 3-20-0072-07
lighting proJect, preapplication
26,653.12
Federal Aviation Administration 3-02-0072-08
runway fareway paving, preapplication
5,079.00
Federal Aviation Administration 3-02-0072-09
Runway 12/30 paving, preapplication
6,580.00
$172,157.20
------------
------------
Page 28
Amount
of Awards
$
85.50
24,188.94
101,780.78
$126,055.22
-----------
-----------
CATALOG OF
SALINA AIRPORT AUTHORITY
SUMMARY OF COMPLETED FEDERAL
ASSISTANCE PROGRAMS
FEDERAL DOMESTIC ASSISTANCE
For year ended December 31,
NUMBEH 20.105
1985
Program Title
Federal ID Number
Expenditures
During
Year
Federal Aviation Administration
Runway overlay and
Snow blower 3-20-0072-04
1983
1984
1985
1985
1985
$ 1,393.09
3,526.00
765,992.71
95.00
TOTAL
$771,005.80
-----------
-----------
Amount of
Awards
$
593,820.52
85.50
$693,905.12
-----------
-----------
CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER 20.105
For year ended December 31, 1985
Program Title
Federal ID Number
Expenditures
During
Year
Federal Aviation Administration
Taxiway overlay 3-20-0072-03
1983
1984
1985
$ 5,382.15
395,619.13
39,436.04
TOTAL
$441,437.33
-----------
-----------
Page 29
Amount of
Awards
$
353,587.28
43,506.32
$397,293.60
-----------
-----------
A.
H.
LECKBAND
&
co.
CERTIFIED PUBLIC ACCOUNTANTS
719 EAST CRAWFORD SALINA, KANSAS 67401
A. H. LECK8AND, C.P.A.
EUGENE O. HARRISON, C.P.A.
THOMAS G. ARNETT, C.P.A.
MEM8ERS AMERICAN INSTITUTE OF CERTIFIED PU8LIC ACCOUNTANTS
ACCOUNTING DEF'ARTMENT (913) 827-7244
DATA PROCESSING OEF'ARTMENT (913) 827-7245
January 26,
1987
The Board of Directors
Salina Airport Authority
Salina, Kansas 67401
We have examined the flnancial statements of the Salina Alrport Authority
for the years ended December 31, 1935, and December 31, 1~ì85 and have
issued our reports thereon dated January 29, 1985 and January 25, 1937
respectively. Our examinations were made in accordance WJ.th generally
accepted government auditlng standards; the provisions of Standards for
Audit of Governmental Organizations, Programs, Activities, and Functions,
promulgated by the U.S. Comptroller General, as they pertaln to financlal
and compliance audits; the provlsions of the Office of Management and
Budget's <OM B) Compliance-Supplement - Uniform Requirements of Programs
for Grants to State and Local Governments; the provisions of OMB's
Circular A-128, and accordlngly, included such test of the accounting
records and such other auditing procedures as we considerE~d necessary in
the circumstances.
Based on our examination, we found that, for the items tested, the Sallna
Airport Authority compIled with the material terms and conditions of the
federal award agreements. Further, based on our e):amination and the pro-
cedures referred to abo~e, nothlng came to our attention to indicate that
the Salina Airport Authority had not complied with the slgnlficant compli-
ance terms and conditions of the awards referred to above.
This report is intended solely for the use of the Salina Alrport Author-
ity, the cognizant audit agency, and other federal audit agencies and
should not be used for any other purpose.
A. H. LECKBAND & CO., CPA,
~/ ~ "/'"} t',
~ /i/; >it
.f! V~ '---
,1~~1
CHARTERED
Thomas G.
Arnett CPA
Page 30
A.
H.
LECKBAND
&
co.
CERTIFIED PUBLIC ACCOUNTANTS
719 EAST CRAWFORD SALINA, KANSAS 67401
A. H. LECKBAND, C.P.A.
EUGENE D. HARRISON, C.P.A.
THOMAS G. ARNETT, C.P.A.
MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ACCOUNTING DEFARTMENT (913) 827-7244
DATA PROCESSING DEPARTMENT (913) B27-7245
January 26,
1987
The Board of Directors
Salina Airport Authority
Sallna, Kansas 57401
We have examined the financial statements of the Salina Airpor~ Authority
for the years ended December 31, 1985 and December 31, 19Ei5 and ha ve
issued our reports thereon dated Janual-Y 29, :986 and JarJuary 2S, 1987
respectively. As part of our examinations, we made a study and evaluation
of the system of internal accounting control of the Salina Airport
Authority to the extent we considered necessary ~o evaluate the system
as required by generally accepted government auditing standards a~d the
standards for financial and compliance audits contained in the U.S. General
Accounting Offlce's Standards for Audit of Governmental Orqanizations,
Programs, Activities, and Functlons. For the purpose of ~his report, we
have classified the signiflcant internal accountlng controls in the
following categories:
Financi~; Statement Captions
Cas!! and cash equivalents
Investments
Property and equipment
Payables aDd accrued llajilities
D",bt
Fund BaL1nce
Our study included all of the control categories llsted above. The
purpose of our study and evaluatlon was to determine the nature, tlmlng,
and extent of performing the audlt~ng procedures necessary for expresslng
an opinion on the entity's financial statements. Our study and evaluatlon
was more limited than would be necessary to express an op:_nion on the
system of internal accountlng control taken as a whole or on any of the
categories of control identified above.
(continued)
Page 31
The management o£ the Salina Airport Authority is responsible for estab-
lishing and maintaining a system o£ internal accounting control. In ful-
filling this responsibility, estimates and Judgments by management are
required to assess the expected benefits and related cost of control
procedures. The obJectives of a system are to provide management with
reasonable, but not absolute, assurance that assets are sa£eguarded
against loss from unauthorized use or disposition, and that transactions
are executed in accordance with management's authorization and recorded
properly to permit the preparation of £inancial statements in accordance
with generally accepted accounting principles.
Because o£ inherent limitations in any system of internal accounting con-
trol, errors or irregularities may nevertheless occur and not be detected.
Also, proJection of any evaluation of the system to future periods is sub-
Ject to the risk that procedures may become inadequate be=ause o£ changes
in conditions or that the degree of compliance with the procedures may
deteriorate.
Our study and evaluation made for the limited purpose described in the
first paragraph would not necessarily disclose all material weaknesses
the system. Accordingly, we do not express an opinion on the system of
internal accounting control of the Salina Airport Authority taken as a
whole or on any of the categories o£ controls identified in the £irst
paragraph.
in
This report is intended solely for the use of management and the Federal
Aviation Administration and should not be used for any other purpose.
A.
H.
LECKBAND & CO.,
CPA,
CHARTERED
Thomas G.
/
Arnett
CPA
Page 32