The URL can be used to link to this page

Audit Report - 1988 SALINA AIRPORT AUTHORITY Salina, Kansas AUDIT REPORT Year 1988 HARRISON & ARNETT, CHARTERED Certified Public Accountants Accounting Bldg., 719 East Crawford Salina, Kansas 67401 I TABLE OF CONTENTS I I Independent Auditor's Report I GENERAL PURPOSE FINANCIAL STATEMENTS I Financial Statements Balance Sheet Statement of Revenues, Expenses Statement of Cash Flows Capital Expenditures Notes to Financial Statements and Changes in Equity I I SUPPLEMENTAL INFORMATION I Financial Statements-Airport Revolving Account Balance Sheet Statement of Revenues, Expenses and Changes in Equity Statement of Cash Flows Capital Expenditures-Airport Revolving Account Financial Statements-Building Revenue Account Balance Sheet Statement of Revenues, Expenses and Changes in Equity Statement of Cash Flows Capital Expenditures-Building Revenue Account Bonds of Indebtedness (Summary) Building Revenue Bonds-Series 1984 Building Revenue Bonds-Series 1985 Reconcilement of Fiscal Agency Account Schedule of Investments Insurance in Force I I I I I ADDITIONAL INFORMATION REQUIRED BY OMB CIRCULAR A-128 I Report on Internal Accounting Controls Based Solely on a Study and Evaluation Made as Part of the Audit of the General Purpose Financial Statements Report on Compliance With Laws and Regulations Based on an Audit of General Purpose Financial Statements Performed in Accordance with the Standards for Audit Issued by the GAO Report on Internal Controls (Accounting and Administrative)-Based on a Study and Evaluation Made as a Part of an Audit of the General Purpose Financial Statements and the Additional Tests Required by the Single Audit Act Report on Compliance With Laws and Regulations Relating to Major and Nonmajor Federal Financial Assistance Programs Schedule of Findings and Questioned Costs Recipients Comments on Current and Prior Findings Independent Auditor's Report on Schedule of Federal Financial Assistance Schedule of Federal Assistance Programs Summary of Federal Assistance Programs I I I I I 1-2 3-4 5 6 7 8-10 11 12-13 14 15-16 17-18 19 20 21 21 22 23 24 24 25 26-27 28 29-31 32-33 34 34 35 36 37 t-IAI1I1IS0N & AnN Ell CHARTERED CERTIFIED PUBLIC ACCOUNTANTS ElImnE 0 "^IIf1IS0t1, C.P.A. TIIOfJ^S n MHIUT, CPA A H. LECKBNm, CPA (913) 827-7244 719 EAST Cf1^WFUI1D SALINA. KN~SAS 67401 January 27, 1989 INDEPENDENT AUDITOR'S REPORT The Board of Directors Salina Airport Authority Salina, Kansas We have audited the accompanying general purpose financial statements of the Salina Airport Authority, Salina, Kansas, a!~ of and for the years ended December 31, 1988 and December 31, 1987t as listed in the table of contents. These financial statements are the responsibility of the Salina Airport Authority's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the Minimum Standard Audit Program approved by the State Municipal Accounting Board. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basiA, evidence supporting the amounts and disclosures in tile financial statements. An audit also includes assessing the accounting principles used and significant estim-ates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Salina Airport Authority, Salina, Kansas, BS of December 31, 1988 and December 31, 1987, and the results of its operations and its cash flows for the years then ended in conform- ity with generally accepted accounting principles. (continued) MEMBEf1S AMEflICNIItI<;TlTUTF OF CFfHlflHJ I'UBLIC ACCOUtIIANTS Page 1 ~ . (continued) . . Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The individual fund financial statements and schedules listed in the table of contents are presented for purpose of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. . . . HARRISON & ARNETT, CHARTERED J~~92~-. . THOMAS G. ARNETT, CPA In charge of and actively engaged in this audit . . . -- . II 81 . ~ ~ ~ Page 2 CURRENT ASSETS Cash on hand Cash in banks Note 4 Certificates of deposit Accounts receivable Notes receivable-current portion TOTAL CURRENT ASSETS RESTRICTED ASSETS Certificates of deposit Bond reserve Note 5 Replacement and depreciation Cash in Bank Economic development Note 7 TOTAL RESTRICTED ASSETS FIXED ASSETS Equipment Buildings Other improvements Land Less-accumulated depreciation TOTAL FIXED ASSETS OTHER ASSETS Long-term notes receivable Less-current portion TOTAL OTHER ASSETS TOTAL ASSETS BALANCE SHEET ASSETS Note 6 (continued) December 31 1988 1987 $ 50.00 $ 50.00 594,287.78 709,507.24 2,000.00 15,221. 03 51,854.90 66,730.00 11,373.84 $ 676,288.81 $ 774,785.98 $ 60,664.32 $ 60, 00Ø. 0Ø 60,000.00 60,000.00 865,779.13 753,925.82 $ 986,443.45 $ 873,925.82 $ 864,537.79 $ 857,799.96 6,598,157.55 6,572,509.12 6,691,491. 77 5,762,221.24 1,069,057.50 1,018,057.50 $15,223,244.61 $Jl4, 210, 587.82 3,900,931. 31 3,394,494.06 $11,322,313.30 $10,816,093.76 $ 289,760.65 $ 47,156.87 66,730.00 11,373.84 $ 223,030.65 $ 35,783.03 $13,208,076.21 $12,500,588.59 -------------- --,------------ -------------- --,------------ The notes to financial statements are an integral part of this statement. PagE' 3 December 31 1988 1987 177,115.34 $ 23,618.21 9,666.02 5,170.44 110,000.00 145,0Ø0.00 3,719.00 5,626.69 9,460.00 10,937.78 65,378.01 375,338.37 $ 190,353.12 \ ~ ~ ~ ~ - -- -- (continued) LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable Payroll taxes payable Bond payable-current portion Deferred rent income Accrued bond interest Accrued property taxes $ TOTAL CURRENT LIABILITIES $ -- -- LONG-TERM LIABILITIES Bonds payable Less-current portion $ 1,000,0Ø0.00 110, Ø00. 00 TOTAL LONG-TERM LIABILITIES $ 890, 000. øø -- TOTAL LIABILITIES $ 1,265,338.37 RESTRICTED EQUITY Bond reserve Replacement & depreciation reserve Economic development reserve $ 80,0Ø0.Ø0 8Ø,000.00 865,779.13 I I TOTAL RESTRICTED EQUITY EQUITY-UNRESTRICTED $ 1,025,779.13 10,916,958.71 - 8 - - ~ - - TOTAL EQUITY $11,942,737.84 TOTAL LIABILITIES & EQUITY $13,208,076.21 -------------- -------------- $ 1, 145,000.Ø0 145,000.00 $ 1,0Ø0,00Ø.00 $ 1,190,353.12 $ 60, 0Ø0. 00 60, 0Ø0. 00 753,925.82 $ 873,925.82 1",436,309.65 $11, 31Ø, 235. 47 $12,50Ø,588.59 ---.----------- --------------- The notes to financial statements are an integral part of this statement. fag!'> 4 STATEMENT OF REVENUE, EXPENSES AND CHANGES IN EQUITY REVENUES Operating revenues Income from mill levy Proceeds of Airport Development Aid Program grants Sale of property Interest on property sales Interest on investments TOTAL REVENUES EXPENSES Office and administration Maintenance Bond interest and e~penses Depreciation TOTAL EXPENSES REVENUES LESS EXPENSES EQUITY-January 1 REVENUE LESS EXPENSES January 1 to December 31 1988 1987 $ 1,149,906.51 980,985.54 (77,863.07) 20,822.38 104,661. 29 $ 2,178,512.65 $ 456,770.20 326,346.08 92,958.47 669,925.53 $ 1,546,010.28 $ 632,502.37 -------------- -------------- $ tl, 310, 235. 47 632,502.37 $11,942,737.84 PROVISION FOR-Bond reserve (80,000.00> PROVISION FOR-Replacement & Depreciation reserve PROVISION FOR-Economic development reserve EQUITY-UNRESTRICTED-December 31 (80,000.00> (865,779.13> $10,916,958.71 -------------- -------------- $ 1,294,581. 23 227.59 2, l80, 711. 81 6,848.06 93,950.15 $ 3,576,318.84 <;; 386,226.31 364,977.97 97,935.69 565,109.37 $ 1,411,249.34 $ 2,162,069.50 -------------- -------------- $ 9, 11£1, 165.97 2,162,059.50 $11,310,235.47 (60,000.00) (60,000.00> (753,925.82) $10,136,309.65 -------------- -------------- The notes to financial statements are an integral part of tIlts statement. P'lge 5 II II II II STATEMENT OF CASH FLOWS (DIRECT METHOD) III II II II CASH FLOWS FROM OPERATING ACTIVITIES Cash received from leases Proceeds from Federal grants Other operating cash receipts Cash paid to suppliers and employees NET CASH PROVIDED BY OPERATING ACTIVITIES ACTIVITIES CASH FLOWS FROM INVESTING Interest Received Interest Paid Purchase of property, Proceeds from sale of plant and equipment building -- NET CASH USED IN INVESTING ACTIVITIES II -- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from new borrowing Principal payments on debt Payments received on long-term debt -- NET CASH PROVIDED BY FINANCING ACTIVITIES II DECREASE IN CASH & CASH EQUIVALENTS II CASH BALANCE-January 1 CASH BALANCE-December 31 III II ~ ~ III January 1 to December 31 1988 1987 $1,184,507.79 980,985.54 124.90 (729,622.20) $1,248,748.99 2,180,711. 81 227.59 (727,524.09) $1,435,996.03 $2,702,164.30 $ 125,483.67 (93,785.00) (1,761,792.75) 407,000.00 $ 100,798.21 (97,945.00) (2,619,219.83) $(1,323,094.08) $(2,616,366.62) $ $ (145,000.00) ( 145, 000. 00) 27,396.22 9,991.30 $ (117,603.78) $ (135,005.70) $ (4,701.83) $ (49,208.02) 1,585,483.06 1,634,691. 08 $1,580,781. 23 $1,585,483.06 ------------- ------------- ------------- ------------- The notes to financial statements are an integral part of this statement. Page 6 CAPITAL EXPENDITURES January 1 to December 31 1988 1987 Buildings $ 9,617.83 $ 39,426.50 886,649.72 61,609.05 1,034,740.59 2,522,063.08 Equipment Other improvements (A.I.P. Expenditures) Land TOTAL CAPITAL EXPENDITURES $1,931,008.14 $2,623,098.63 ------------- ------------- ------------- ------------- The notes to financial statements are an integral part of this statement. rAg'" 7 - - ~ - ~ - - - I I - - - I - I ~ - ~ NOTES TO FINANCIAL STATEMENTS December 31, 1988 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: Kenneth C. Stephenson, Chairman Roger Morrison, Vice-Chairman Charles Walker, Secretary Charles B. Roth, Treasurer Thomas J. Kennedy, 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 accounts, 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 as of the date of this report. JB. The accrual basis of accounting is used. C. Depository security is adequate for all accounts. D. Investments are stated at cost. E. Fixed assets are stated at cost. Depreciation is computed using the straight-line method based on estimated useful lives as follows: Equipment Buildings Other improvements 5 - 10 years 15 - 30 years 6 - 20 years 4. Composition of cash in bank balances 1988 1987 Bank IV, Salina, Kansas National Bank of America, Salina, Kansas $134,249.24 460,038.54 $ 69,972.06 539,535.18 $594,287.78 $709,507.24 ----------- ----------- ----------- ----------- (continued) Pag'? 8 (continued) 5. The Building Revenue Dond Agreements for the Series 1901 and Series 1985 Building Revenue Bonds require a set-aside Bond ReserVE> at Decem- ber 31, 1988 of $50, 0Ø0. Ø0 and $30,0Ø0.0Ø, respectively. The set-aside for 1988 in the amount of $20, ØØ0. Øø was m¡:Hle in January of 1989. Composition of Bond Reserve certificates of deposit: Bank IV, Salina, Kansas National Bank of America, Salina, Kansas " -0 70, 0QJ0. 0Ø 4Ø,664.32 ,~ -~ 6Ø,664.32 ,------------- ,------------- 6. The Building Revenue Bond agreements for the Series 1984 and Series 1985 Building Revenue Bonds require a set-aside Replacement and Dep- reciation Account at December 31, 1908 of ~5Ø,0Ø0.00 and $3Ø,ØØ0.ØØ respectively. The set-aside for 1988 in the amount of $20,ØØ0.ØØ was made in January of 1989. Composition of Replacement and Depreciation Account certificates of deposit: National Bank of America, Salina, Kansas First National Bank and Trust, Salina, Kansas 'S 4Ø,0fJ)1í').0Ø 20,ØØØ.Ø0 s 6rï1,0ØØ.Ø0 ------------- ------------- 7. The board of directors of the Salini Airport Authority resolved 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 Agreements First National Bank & Trust Co., Salina, Kansas $ 45,779.13 02Ø,0Ø0.Ø0 $ 065,779.13 ------------- -------------- 8. Defined Benefit Pension Plan Substantially all employees of the Salina Airport Authority participate in the Kansas Public Employees Retirement System (~SY8tem"), a multiple- employer public employee retirement system. The pAyroll for employees covered by the System for the year ended December 31, 1988 was $264,203.81. The total payroll was $286, 461. 88. (continued) P:I~~ 'J II I (continued) - I Substantially all employees of the Salina Airport Authority are eligible to participate in the System after one year of employment. Employees WllO retire at or after age 65 are entitled to a retirement benefit, payable monthly for life, equal to 1 percent of tlleir final average salary for each year of "prior" service and 1.25 to 1.5 percent for each year of "participating" service depending upon the number of years of service. Final average salary is tile employee's average salary over the highest four years of credited service. Benefits fully vest on reaching 10 years of service. Vested employees may retire at age 55 to 65 with 10 years of credited service and receive reduced retiIement benefits. The System also provides death and disability benefits. Benefits ale established by State statute. - - I - Covered employees are required by State statute to contribute 4 percent of their salary to the plan. The employer is required by tile same sta- tute to contribute the remaining amounts necessary to pay benefits when due. The contribution requirement for the year ended December 31, 1988 was $18,556.92, which consisted of $8,013.22 from the employer and $10,543.70 from employees: these contributions represented 4.00 1 and 3.041 of covered payroll respectively. I I - The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effect of pro- jected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected bellefits, is intended to help users assess the Syst~m's funding status on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among rublic Employee Retirement Systems and employers. The System does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligation at January 1, 1987 for the System as a whole, determined through an actuarial valuatioll performed as of that date, was $2.96 billion. The System's net assets available for benefits on that date were $2.59 billion, leaving an unfunded pen- sion benefit obligation estimated at $369 million. The contribution of the Salina Airport Authority for the period covered by this report rep- resents .0211 of contributions required of all participating entities, which totalled $88,384,386 for the year ended June 30, 1988. I I I I I other information related to the System can be found in the KrERS 1988 CAFR. This report is available from the Salina Airport Authority. ~ - - rage 1Ç') A lRfORT REVDL V 1 Nt, An :ULHH BALANCE SHEET ASSETS CURRENT ASSETS Cash on hand Cash in banks Accounts receivable Notes receivable-current portion TOTAL CURRENT ASSETS FIXED ASSETS Equipment Buildings Other improvements Land Less-accumulated depreciation TOTAL FIXED ASSETS RESTRICTED ASSETS OTHER ASSETS Long-term note receivable Less-current portion TOTAL OTHER ASSETS TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable Payroll deductions Deferred rent Accrued property taxes TOTAL CURRENT LIABILITIES RESTRICTED EQUITY Economic development reserve EQUITY-UNRESTRICTED TOTAL EQUITY TOTAL LIABILITIES & EQUITY nee l'r:'cernbE'r 31 .------.- 1:JOl 177,115.34 $ 23,618.21 9,655.02 5,170.41 3,719.00 5,466.69 65,378.01 255,878.37 $ 31,255.31 <;; sø.øø 131,71').21 9,GGf3.23 53,786.00 $ S0.ØØ 69,972.0)6 43,118.78 t. 197,753.17 $ 113,140.8'1 $ 864,537.79 3,098,452.22 6,691,491. 77 51,000.00 $10,705,491. 78 2,695,938.80 $ 8,009,552.98 $ 865,779.13 $ 857,799.96 2,917,551. 85 5,762,221.24 $9,537,673.05 2,231,211. 82 ~I, 303,131. 23 ~ 753.1~5. 82 $ $ $8,170,497.89 ------------- ------------- <; 753,925.82 $ 253,977.52 53,786.00 _Z,_.3Jg,_::!t§_.~-~ §jL 136,242.55 0;[\, 17fJJ, 137. 83 ------------- -----.--------- The notes to financial Rtatements arE' <111 illtegr"l p;:¡rt of this 8tat~f'1"'I\t. f<10P 11 $ 200, 191. 62 $ 9,273,277.20 -------------- -------------- $ $ $ 865,779.13 -~ , J 51 L~1-'~Lq, $ 9, 017 ,_39~83 ~ 9,27J,7.77.7.Ø -------------- --------------- - - ^IRPORT REVOLVING ACCOUNT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN EQUITY ~ ~ REVENUES OPERATING REVENUES Building rents Agricultural land rents Other land rents Hangar rents Tank farm 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 Interest of sale of property - - TOTAL OTHER REVENUES TOTAL REVENUES - EXPENSES - OPERATING EXPENSES Office and Administration Office salaries Office supplies Postage Travel expense Agricultural land expense Legal and auditing Insurance Engineering Property taKes Payroll taxes Employees retirement Telephone Industrial development program Promotion Other office and administration - II I - ~ - SUB-TOTAL (continued) ~ Page 12 January 1 to December 31 1988 1987 $ 508,855.87 $ 505,118.31 37,913.74 31,874.74 8,265.16 9,324.14 31,656.46 33,773.40 600.00 600.00 96,132.87 87,352.26 28,701. 58 5,988.45 8,973.29 11,511.94 10, 119.21 7,824.0Ø 124.90 390.00 $ 731,343.08 $ 693,757.24 $ 83,074.51 $ 980,985.54 21,180,711.81 227.59 59,539.38 51,815.66 15,353.86 $1,138,953.29 g,232,755.06 $1,870,296.37 g, 926, 512. 30 $ 105,762.36 $ 98,470.01 3,492.12 4,701. 90 2,909.35 2,016.86 13,791. 95 6,249.06 5,878.74 5,116.36 36,250.57 31,524.43 71,706.74 62,107.90 36,915.47 36,305.20 65,378.01 32,634.39 29,638. 11 7,377.13 8,823.35 6,018.82 5,315.39 20,0ØØ.00 20,0ØØ.ØØ 23,548.57 51,339.69 22,730.56 18,772.55 $ 454,391.78 $ 383,300.01 (continued) .Maintenance Building maintenance Runways, taxiways, and ramps Equipment, gas, oil and repairs Utili ties Grounds maintenance Maintenance salaries Fire department expense Other maintenance expense SUB-TOTAL Depreciation TOTAL EXPENSES REVENUES LESS EXPENSES EQUITY-January 1 REVENUE LESS EXPENSES TRANSFERS FROM BUILDING REVENUE ACCOUNT PROVISION FOR-Economic development reserve EQUITY-UNRESTRICTED-December 31 I I Ja~I.!!~IY 1 to December 31 1908 1987 $ 28,711.05 $ 51,601. 11 26,728.24 60,000.11 24,713.37 23,887.37 42,915.47 35,249.55 3,810.30 8,474.86 180,699.52 169,976.41 7,203.53 3,902.20 11,501. 60 11,886.33 $ 325,345.08 ~, 364,9"77.97 ~, $ 548,925.12 ~, 443,522.83 ~, $1,329,655.98 ~;1, 191,881. 67 $ 540,6JØ.39 ~;1. 734, 630. 63 ------------- -.------------ ------------- -.------------ $8,136,242.55 ~;5, 867,644.85 540,630.39 340,525.89 1,731,630.63 533,967.07 $9,0l7,398.83 $8,136,212.55 (865,779.13) (753,925.82) $8,151,619.70 ~;7, 382, 316. 73 ------------- ------------- ..------------ ..------------ The notes to financial statements are an integral part of thi!~ statement. P"ge 13 81 - ~ ~ ~ -- - - - - AIRPORT REVOLVING ACCOUNT STATEMENT OF CASH FLOWS <DIRECT METHOD) January 1 to December 31 1988 1987 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from leases Proceeds form Federal grants Other operating cash receipts Cash paid to suppliers and employees $ 762,921. 04 980,985.54 124.90 (726,585.53) NET CASH PROVIDED IN OPERATING ACTIVITIES $1,017,445.95 CASH FLOWS FROM INVESTING ACTIVITIES Interest received $ 74,893.24 Purchase of property, plant and equipment (1,761,792.75) Proceeds from sale of building 387,000.00 NET CASH USED IN INVESTING ACTIVITIES $(1,299,899.51) CASH FLOWS FROM FINANCING ACTIVITIES Payments received on long-term debt $ 16,022.38 - NET CASH PROVIDED IN FINANCING ACTIVITIES 16,022.38 $ - - CASH TRANSFERS FROM BUILDING REVOLVING ACCOUNT 442,561. 67 $ INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS $ 176,130.49 I CASH BALANCE-January 1 CASH BALANCE-December 31 $1,000,078.37 823,947.88 ------------- ------------- I - I I $ 656,551. 12 2" 180,711. 81 227.59 (724,017.34) g 113,473.18 $ 51,815.65 (2,604,693.06) Sib 552, 877.40) $ $ $ 319,123.53 $ <120,280.69) 944,228.57 $ 823,947.88 ------------- ------------- I The notes to financial statements are an integral part of this statement. Page 14 AIRPORT REVOLVING ACCOUNT CAPITAL EXPENDITURES January 1 to December 31 1988 1987 EQUIPMENT Office equipment $ 2,796.00 $ 2,160.43 1987 Oldsmobile Ciera 9,293.80 Motor grader 3, 000. Ø0 1987 GMC dump truck 20,970.25 Plate compactor 1, 0Ø0. 00 Communication equipment 3,055.90 3, 002. Ø2 Portable welder 1,491. 45 Restaurant equipment 1,424.48 Shop equipment 850.00 TOTAL EQUIPMENT $ 9,617.83 $ 39,426.50 BUILDINGS A. S. 1. hangar door $ $ 28,046.67 A. S. 1. hangar 6,483.00 Terminal bldg. improvement 43,242.00 1,680.39 Airport Industrial paving 4,396.70 Airport Industrial Center 475,573.71 6,475.52 Building 1673 5,784.13 Building 1509 25,636.76 MMA/FAA/KHP construction 223,073.23 Incubator 23,114.89 Salina Vortex, Bldg. 1217 improvement 66,825.00 Tank improvements 23,400.00 TOTAL BUILDINGS $ 886,649.72 $ 47,082.28 (continued) Page 15 I I (continued) - - - OTHER IMPROVEMENTS AIP 05 Master plan update ALP 06 Runway overlay, fire station and supporting communications ALP 07 Lighting project ALP 08 Runway taxiway paving AIP 09 Runway 12/30 paving ALP 10 Lighting project I I TOTAL OTHER IMPROVEMENTS I TOTAL CAPITAL EXPENDITURES I I I I I II - I I , I January 1 to December 31 1988 1987 $ 5,370.00 $ 21,480.00 2,029.61 12,556.19 988,289.70 26,459.09 $1, 034, 740. 59 $1,931,008.14 ------------- ------------- 955,907.06 445,565.41 1,087,483.85 11,626.76 g 522, 063. 08 $2,608, 571. 86 --..---------- -------------- - The notes to financial statements are an integral part of this statement. Page 16 BUILDING REVENUE ACCOUNT BALANCE SHEET CURRENT ASSETS Cash in banks Certificates of deposit Accounts receivable Notes receivable-current portion December 31 1988 1987 $ 460,038.54 ~. 639,535.18 ~. 2,000.00 5,552.80 8,736.12 12,944.00 11,373.84 $ 478,535.34 ~- 661,645.14 ~, ASSETS TOTAL CURRENT ASSETS RESTRICTED ASSETS Certificates of deposit Provision for bond reserve Provision for replacement and depreciation TOTAL RESTRICTED ASSETS $ 60,664.32 $: 60,000.00 60,000.00 60,000.00 $ 120,664.32 $ 120,000.00 FIXED ASSETS Buildings Land $ 3,499,695.33 1,018,057.50 $3,654,857.27 _1,018,057.50 Less-accumulated depreciation $ 4,517,752.83 1,204,992.51 $4,672,914.77 _1,160,252.24 TOTAL FIXED ASSETS $ 3,312,760.32 $3,512,662.53 OTHER ASSETS Long-term notes receivable Less-current portion $ 35,783.03 12,944.00 $ 47,156.87 11, 373. 84 TOTAL OTHER ASSETS $ 22,839.03 $ 35,783.03 TOTAL ASSETS $ 3,934,799.01 $4,330,090.70 -------------- -------------- ------------- ------------- (continued) The notes to financial statements are an integral part of th:Ls statement. Page 17 - - (continued) I . LIABILITIES AND EQUITY CURRENT LIABILITIES Bonds payable-current portion Deferred rent income Accrued bond interest - - TOTAL CURRENT LIABILITIES I LONG-TERM LIABILITIES Bonds payable Less-current portion I TOTAL LONG-TERM LIABILITIES TOTAL LIABILITIES 8 RESTRICTED EQUITY Bond reserve Replacement and depreciation reserves I TOTAL RESTRICTED EQUITY I EQUITY-UNRESTRICTED TOTAL EQUITY I TOTAL LIABILITIES & EQUITY I I I - I ~ - December 31 - 1988 !987 $ 110,000.00 $ 145,000.00 160.00 9,460.00 10,937.78 $ 119,460.00 $ 156,097.78 $1,000,000.00 110, Ø00. 00 $1,145,000.00 145,000.00 $ 890,000.00 $1, Ø00, 000. Ø0 $1,009,460.00 $1,156,097.78 $ 80,000.00 $ 60, Ø00. 0Ø 80,000.00 60,000.00 $ 160,000.00 $ 120,000.00 2,765,339.01 ~153, 992. 92 $2,925,339.01 $3,173,992.92 $3,934,799.01 $4, :D0, 090. 70 ------------- ------------- ------------- ------------- ~ The notes to financial statements are an integral part of this statement. Page 18 BUILDING REVENUE ACCOUNT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN EQUITY REVENUES January 1 to December 31 1988 1987 $ 371,764.23 <' 530,447.97 -~ 25,004.17 18,528.66 21,270.03 17,722.36 525.00 34,125.00 $ 418,563.43 c' 600,823.99 ,~ $ 5,468.52 c' 6,848.Ø6 ,~ 45,121. 91 42,134.49 $ 50,590.43 c' 48,982.55 ,~ $ 469,153.86 C' 649,806.54 ,~ OPERATING REVENUES Building rents Agricultural land Other land rents Tank farm rent Other rents rents TOTAL OPERATING REVENUES OTHER REVENUES Interest on sale of property Interest on investments TOTAL OTHER REVENUES TOTAL REVENUES EXPENSES OPERATING EXPENSES Agricultural land expenses Bond interest expense Expense relating to bond issues Depreciation TOTAL OPERATING EXPENSES $ 2,375.42 c' 2,845.50 ,> 92,307.22 97,274.44 661. 25 661. 25 121,000.41 121,586.48 $ 216,344.30 c' 222,367.67 ,> $ 160,937.58 C' ,> $ 377,281. 88 C' 222,367.67 ,> $ 91,871. 98 c' 427,438.87 ,> ------------- .------------- ------------- .------------- $3,173,992.92 ~¡3, 280, 521. 12 91,871. 98 127,438.87 (340,525.89) (533,967. 0n $2,925,339.01 ~;3, 173,992.92 (80,000.00) (60,000.00) (80,000,00> (60,000.Ø0) $2,765,339.01 ~;3, 053, 992. 92 ------------- -,------------ ------------- -,------------ OTHER EXPENSES Loss on sale of building TOTAL EXPENSES REVENUES LESS EXPENSES EQUITY-January 1 REVENUES LESS EXPENSES TRANSFERS TO AIRPORT REVOLVING ACCOUNT PROVISIONS FOR-Bond reserve PROVISIONS FOR-Replacement & depreciation reserve EQUITY-UNRESTRICTED-December 31 The notes to financial statements are an integral part of this statement. Page 19 I I BUILDING REVENUE ACCOUNT STATEMENT OF CASH FLOWS <DIRECT METHOD) II NET CASH PROVIDED IN OPERATING ACTIVITIES January 1 to December 31 1988 1987 $ 421,586.75 $ 592,197.87 (3,036.67) (3,506.75) $ 418,550.08 $ 588,691. 12 81 II CASH FLOW FROn OPERATING ACTIVITIES Cash received from leases Other operating cash receipts Cash paid to suppliers and employees II CASH FLOW FROn INVESTING Interest received Interest paid Purchase of property, Proceeds from sale of ACTIVITIES $ 50,590.43 (93,785.00) $ 48,982.55 (97,945.00) (14,526.77) I plant and equipment building 20,000.00 II NET CASH (USED) IN INVESTING ACTIVITIES $ (23, 194. 57> $ (63,489.22) $ $ (145,000.00) ( 145, 000. 00) $ 11,373.84 9,994.30 $ (133,626.16) $ <135,005.70) $ (442,561. 67> $(:319,123.53) I CASH FLOW FINANCING ACTIVITIES Proceeds from new borrowing Principal payments on debt Payments received on long-term debt II I NET CASH USED BY FINANCING ACTIVITIES CASH TRANSFERS TO AIRPORT REVOLVING ACCOUNT I INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS $ (180,832.32) $ 71,072.67 I CASH BALANCE-January 1 $ 761,535.18 $ 690,462.51 I CASH BALANCE-December 31 $ 580,702.86 $ 761,535.18 ------------- ------------- --.---------- ------------- II I II I 81 The notes to financial statements are an integral part of thia statement. Page 20 , BUILDING REVENUE ACCUUllT CAPITAL EXPENDITURES J ~ J an~<::J~'LL_~~DE'_(~!fI Þ ~ 1_;3---1 1988 1987 ~ BUILDING Schwan's bldg. 820 improvement $ $ 11,526.77 TOTAL CAPITAL EXPENDITURES $ $ 14,325.77 , ----------- ----------- ------------ ------------- J , , J BONDS OF INDEBTEDNESS December 31, 1988 J Building Revenue Bonds Series 1985 Original Principal Issue Paid $ 400,Ø00.ØØ $ 11Ø, 0ØØ. øø 900,000.00 190,ØØØ.Øø $1,300,000.0Ø $ 300,0ØØ.ØØ ------------- ------------- ------------- ------------- Outstanding Balance , Building Revenue Bonds Series 1984 $ 290,ØØØ.00 I 7lØ, Ø0Ø. øø S1,ØØØ,ØØ0.00 ------------- ------------- The notes to financial statements are an integral palt of this stRtpment. P<=1gP. 21 BUILDING REVENUE BONDS-SERIES 1984 December 31, 1988 Date of Issue: Amount of Issue: Interest Rate: Maturity Date: Principal Paid: Outstanding Balance: May 1, 1984 $40Ø,0Ø0.Ø0 . Hay 1, 1994 $110. 0Ø0. øØ $290,000.00 Schedule of Bond Principal Payments Due in Year Bond Principal 1989 1990 1991 1992 1993 1994 $ 40, 000. 0Ø 40, 0ØØ. Ø0 5Ø,0Ø0.0Ø 5Ø,0Ø0.Ø0 5Ø,Ø0Ø.0Ø 60, ØØ0. 00 $29Ø, 000. 00 ----------- ----------- -The interest rate for each six month payment will be eighty percent (80X) of the National Bank of America, Salina, Kansas base lending rate in effect on the beginning date of each six month period. Page 22 - BUILDING REVENUE BONDS-SERIES 1985 December 31, 1988 - Date of Bonds Date of Issue Interest Rate Maturity Date Principal Amount Outstanding Balance December 1, 1985 January 17, 1986 - - December 1, 1995 $9Ø0,000.0Ø $710,000.00 - - Schedule of Bond Principal Payments Due in Year Bond Principal I 1989 1990 1991 1992 1993 1994 1995 $ 70, Ø0Ø. øØ 90,0Ø0.0Ø 9Ø,ØØ0.ØØ 11Ø, 000. 0Ø 110, 0Ø0. Ø0 110, 0Ø0. Ø0 130,0Ø0.Ø0 I I I $ 710, 000. Ø0 ------------ ------------ I -The interest rate for each six month payment will be eighty percent (80X) of the National Bank of America, Salina, Kansas base lending rate in effect on the beginning date of each six month period. The rate of interest shall not be less than a rate of eight percent (8%). I I I Page 23 RECONCILEMENT OF FISCAL AGENCY ACCOUNT December 31, 1988 BALANCE WITH FISCAL AGENCY-January 1, 1988 $ PAID TO FISCAL AGENT FOR: Matured bonds Interest coupons Bond commission and postage $45,000.00 2,295.00 ~295.Ø0 TOTAL REMITTANCES AND BEGINNING BALANCE $47,295.00 RECEIVED FROM FISCAL AGENT: Cancelled bonds Interest coupons Commission and postage retained $45,000.00 2,295.00 ~295.00 BALANCE WITH FISCAL AGENCY-December 31, 1988 $ ---------- ---------- SCHEDULE OF INVESTMENTS December 31, 1988 Balance Purchases Redemptions Balance 1-1-88 Year 1988 Year 1988 12-31-88 AIRPORT REVOLVING ACCOUNT Certificates of deposit $ $ $ .~ -;> BUILDING REVENUE ACCOUNT Certificates of deposit 2,000.00 2,00Ø.Ø0 TOTAL GENERAL OPERATING Fund $ 2,000.00 $ $ " -;> ---------- ---------- --------- --------- ---------- ---------- ----------- ----------- Page 24 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 INSURANCE IN FORCE December 31, 1988 Type of Coveraqe Bodily injury and property damage Bodily injury and property damage Fire and lightning, extended coverage, vandalism and malicious mischief-loss of rents Fire and lightning, extended coverage, vandalism and malicious mischief Amount of Coveraqe $ 1ØØ,ØØ0.ØØ 500,ØØØ.Øø 5Ø0,0Ø0.ØØ 1,276,612.ØØ 1,935,0Ø0.ØØ Liability S0Ø,ØØØ.øø Physical damage-equipment 453, 760. Øø Medical payments 2,Ø~Ø.Øø Uninsured motorists 25/50, 0ØØ. Øø Honesty blanket position bond coverage 1Ø0,ØØ0.ØØ Errors & omissions including 8sbpstoR, excluding pollution coverage on a claims made basis 500,ØØ0.ØØ Page 25 ~ ~ ~ Co-Insurance Percentaqe - - - - - J 9Øi'. J 90ï. I I I I I I I I I HARRISON & ARNETT CHARTERED CERTIFIED PUBLIC ACCOUNTANTS (913) 827- 7244 /19 EAST CRAWFORD SALINA. KANSAS 67401 EUGENE O. HARRISON, CPA THOMAS G ARNETT, CPA AH LECKBAND, CPA January 27, 1989 REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS PART OF AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS The Board of Directors Salina Airport Authority Salina, Kansas 67401 We have audited the accompanying general purpose financial statements of the Salina Airport Authority, Salina, Kansas, for the years ended December 31, 1988 and December 31, 1987, and have issued our reports thereon dated January 27, 1989 and February 3, 1988, respectively. As part of our examinations, we made a study and evaluation of the system of internal accounting control of the Salina Airport Authority, Salina, Kansas, to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial and compliance audits contained in the U.S. General Accounting Office Standards for Audit of Governmental Orqanizations Proqrams. Activities. and Functions. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: A. Cycles of the Entities' Activity Revenue/receipts Purchases/disbursements External financial reporting B. Financial Statement Captions Cash and cash equivalents Receivables Property and equipment Payables and accrued liabilities C. Accountinq Applications Billings Receivables Cash receipts Purchasing and receiving Accounts payable Cash disbursements Payroll Property and equipment General ledger MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 26 - (continued) - Our study included all of the control categories list above. The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the entity's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. - - - The management of the Salina Airport Authority, Salina, Kansan, is responsible for establishing and maintaining a system of intE~rnal accounting control. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss frpm unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, erro¡,s or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. I I I I I Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all mat4?rial weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the Salina Airport Authority, Salina, Kansas, taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and evaluation disclosed no condition that we believe to be a material weakness. I I I This report is intended solely for the use of management and the Salina Airport Authority's Board of Directors, and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Board of Directors, is a matter of public record. I I HARRISON & ARNETT, CHARTERED ~ I THOMAS G. ARNETT, CPA I I I Page 27 HARRISON & ARNETT CHARTERED CERTIFIED PUBLIC ACCOUNTANTS EUGFt1E a H^nmSON, C,PA THOMAS G AnNETT, CPA A.H LEC'j'~~\r¡{r'y 27, 1989 (913) B27-7244 719 EAST CflAWFOflD SALIN!\, KANSAS 67401 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE GAO The Board of Directors Salina Airport Authority Salina, Kansas 67401 We have audited the accompanying general purpose financial statements of the Salina Airport Authority, Salina, Kansas, for thl? years ended December 31, 1988 and December 31, 1987, and have issued our reports thereon dated January 27, 1989 and February 3, 1988, respectively. Our examinations were made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations. ProQrams. Activities, and Functions, issued by the U.S. General Accounting Office, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the Salina Airport Authority is responsible for the Salina Airport Authority's compliance with laws and regula- tions. In connection with our examination referred to above, we selected and tested transactions and records to determine the Salina Airport Authority's compliance with laws and regulationl3 noncompliance with which could have a material effect on the general purpose financial statements of the Salina Airport Authority. The results of our tests indicate that for the items tested, the Salina Airport Authority, Salina, Kansas, complied with those provisions of laws and regulations noncompliance with which could have a material effect on the general purpose financial state- ments. Nothing came to our attention that caused us to believe that for the items not tested the Salina Airport Authority, Salina, Kansas was not in compliance with laws or regulations noncompliance with which could have a material effect on the Salina Airport Authority's general purpose financial statements. HARRISON & ARNETT, CHARTERED J THOMAS G. ARNETT, CPA MEMBEflS AMEnIC^N INSTifUTE OF CEnrlriED rUBlIC ACcOUmNITS Plq.28 HARRISON & ARN ETT CHARTERED - CERTIFIED PUBLIC ACCOUNTANTS EUGENE 0 H^nmSON, C,PA THOMAS G. AnNE1T, CPA, A.H LECKBAND, CPA (913) 827-7244 119 EAST cnAWFonD SALINA. KANSAS 67401 - January 27, 1989 - REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMIN 1ST RAT IV E)-BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT - - The Board of Directors Salina Airport Authority Salina, Kansas 67401 I We have audited the accompanying general purpose financial statements of the Salina Airport Authority, Salina, Kansas, for the years ended December 31, 1988 and December 31, 1987, and have issued our reports thereon dated January 27, 1989 and February 3, 1988, respectively. As part of our examinations, we made a Btudy and evaluation of the internal control systems, including applicable internal administrative controls, used in administering federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Governmental OrQanizations, ProQrams, ActivitiesL--and Functions, issued by the U.S. General Accounting Office, the Single Audit Act of 1984, and the provisions of OMB Circular A-128, Audits of State and Local Governments. For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: I I I I I I A. Cycles of Entities' Activity Revenues/receipts Purchases/disbursements External financial reporting I I B. Financial Statement Captions Cash and cash equivalents Receivables Inventory Property and equipment Payables and accrued liabilities I I I (continued) I ME~1BEf1S MAFflICAN INSflTUTE OF cEflTlf lED PUBlIC ^CCOUNTNHS I PBfJe 29 ~ (continued) c. AccountinQ Applications Billings Receivables Cash receipts Purchasing and receiving Accounts payable Cash disbursements Payroll Property and equipment General ledger The management of the Salina Airport Authority, Salina, Kansas, is responsible for establishing and maintaining internal control systems used in administering federal financial assistance programs. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objecttves of internal control systems used in administering federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that, with respect to federal finanGial assistance programs, resource use is consistent with laws, regula- tions, and policies; resources are safeguarded against waste, loss, and misuse; and reliable data are obtained, maintained, and fa:Lrly disclosed in reports. I Because of inherent limitations in any system of internal account- ing and administrative controls used in administering federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject to the J~isk that procedures may become inadequate because of changes in condi- tions or that the degree of compliance with the procedures may deteriorate. I Our study included all of the applicable control categories listed above. During the years ended December 31, 1988 and December 31, 1987, the Salina Airport Authority, Salina, Kansas, expended 100% of its total federal financial assistance under major federal financial assistance programs. With respect to internal control systems used in administering major federal financial assistance programs, our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. I I ~ I 1 Page 30 (continued) -- . .. Our study and evaluation vas more limited than would be necessary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the Salina Airport Authority, Salina, Kansas. Accordingly, we do not express an opinion on the internal control systems used in admin- istering the federal financial assistance programs of the Salina Airport Authority, Salina, Kansas. However, condition a federal Authority, our study and evaluation and our examination disclosed no that we believe to be a material weakness in relation to financial assistance program of the Salina Airport Salina, Kansas. This report is intended solely for the use of management and the Federal Aviation Administration and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the Salina Airport Authority, Salina, Kansas, is matter of public record. ~~~ i . -- HARRISON & ARNETT, CHARTERED THOMAS G. ARNETT, CPA Page 31 HARRISON & ARN ETI CHARTERED CERTIFIED PUBLIC ACCOUNTANTS EUGENE 0 HARRISON, CPA, THOMAS G. ARNE IT, C.P.A A.H. LECKBAND, CPA (913) 827-7244 719 EAST CRAWFORD SALINA. KANSAS 67401 January 27, 1989 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS The Board of Directors Salina Airport Authority Salina, Kansas 67401 We have audited the accompanying general purpose financial statements of the Salina Airport Authority, Salina, Kansas for the years ended December 31, 1988 and December 31, 1987, and have issued our reports thereon dated January 27, 1989 and February 3, 1988, respectively. Our examinations were made in accordance with generally accepted auditing standards: the standards for financial and compliance audits contained in the Standards for Audit of Gover~mental Orqanizations, Proqrams, Activities, and Functic~ issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments and, accordingly, included such tests of the accounting records and such other auditing procedures as ve c:on- sidered necessary in the circumstances. ~ The management of the Salina Airport Authority, Salina, Kansas, is responsible for the Salina Airport Authority's compliance with laws and regulations. In connection with the examination referred to above, we selected and tested transactions and records from each federal financial assistance program. The purpose of our testing of transactions and records from these federal financial assistance programs was to obtain reasonable assurance that the Salina Air?ort Authority, Salina, Kansas, had, in all material respects, ad~in- istered major programs, in compliance with laws and regulatiDns, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. I I I ~ (continued) I , MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 32 (continued) Our testing of transactions and records selected from major Fe?deral financial assistance programs disclosed instances of noncompliance with those laws and regulations. All instances of noncompliance that we found and the programs to which they relate are identified in the accompanying schedule of findings and questioned costs. We believe that the ultimate resolution of the instances of noncompli- ance identified in the accompanying schedule of findings and questioned costs could not have a material effect on the allouabil- ity of expenditures of the programs identified in the schedule. In our opinion, for the years ended December 31, 1988 and December 31, 1987, the Salina Airport Authority, Salina, Kansas, administer- ed each of its major federal financial assistance programs in compliance, in all material respects, with laws and regulations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we bE~lieve could have a material effect on the allowability of program expenditures. HARRISON & ARNETT, CHARTERED THOMAS G. ARNETT, CPA P~ge 33 , I , SALINA AIRPORT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS NONE Page 34 CHARTERED - HARRISON & ARNETT CERTIFIED PUBLIC ACCOUNTANTS EUGENE 0 H^f1f1IS0N, C.PA TIIOM^S G Af1NETT, C.PA A.H. LEcKBAND, CPA (913) 827-7244 71g EASr Cl1AwForm S/\LINA, KANSAS 67401 I I January 27, 1989 - INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE - The Board of Directors Salina Airport Authority Salina, Kansas I We have audited the accompanying general purpose financial statements of the Salina Airport Authority, Salina, Kansas, as of and for the years ended December 31, 1988 and December 31, 1987, and have issued our reports thereon dated January 27, 1989 and February 3, 1988, respectfully. Our audit of such general purpose financial statements was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Orqanizations, Proqrams, Acti vi ties, and Functions issued by the U.S. General Accounting Office, and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. I I I I Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. I I I HARRISON & ARNETT, CHARTERED - ~~~--- - THOMAS G. ARNETT, CPA I I I MEMBEns ^MHllcAN INSflTUTE or CHlTlFIED PUBLIC ACCOUNTANTS Page 35 II SCHEDULE OF FEDERAL ASSISTANCE CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER 20.106 For the year ended December 31,1988 ProQram Title DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Master plan update 1985-1991 Federal Aviation Administration Runway overlay, fire station and supporting communications Federal Aviation Administration Lighting project Federal Aviation Administration Runway taxiway paving Federal Aviation Administration Runway 12/30 paving Federal Aviation Administration Lighting project Federal ID Number 3-20-0072-05 3-20-0072-06 3-20-0072-07 3-20-0072-08 3-20-0072-09 3-20-0072-10 Expenditures During Year $ 5,370.00 2,029.61 12,556.19 988,289.70 26,459.09 II $1,034,740.59 ------------- ------------- II See AIRPORT REVOLVING ACCOUNT, CAPITAL EXPENDITURES at page 15. Page 36 Amount of Awards $ 4,513.81 05,611.60 3,099.75 J.l, 581. 38 876,179.00 $ 9€:0, 985. 54 ------------- ------------- SUMMARY OF FEDERAL ASSISTANCE PROGRAMS FEDERAL DOMESTIC ASSISTANCE NUMBER 20.106 For the year ended December 31, 1988 ProQram Title Federal ID Federal Aviation Administration Master plan update 1985-1991 1985 1986 1987 1988 Number 3-20-0072-05 TOTAL Federal Aviation Administration Runway overlay, fire 3-20-0072-06 station and supporting communications 1985 1986 1987 1988 TOTAL Federal Aviation Administration Lighting project, 3-20-0072-07 1986 1987 1988 TOTAL Federal Aviation Administration Runway taxiway paving 3-20-0072-08 1986 1987 1988 TOTAL Federal Aviation Administration Taxiway overlay 3-20-0072-09 1986 1987 1988 TOTAL Federal Aviation Administration Lighting project 3-20-0072-10 1988 Page 37 Expenditures DurinQ Year Amount of Awards $ 1,396.47 25,808.18 21,480.00 5,370.00 $ 24,188.94 19,627.25 4,513.81 $ 54,054.65 $ 48,330.00 ------------- ------------- -------------- -------------- $ 5,479.76 108,037.00 955,907.06 $ 101,780.78 754,335.22 85,611. 60 $1,069,423.82 $ 941,727.60 ------------- ------------- --,----------- --,----------- $ 26,653.12 $ 445,565.41 423,723.58 2,029.61 3,099.75 $ 474,248.14 $ 426,823.33 ------------- --,----------- ------------- ------------- $ 5,079.00 $ 1,087,483.85 983,025.76 12,556.19 11,581. 38 $1,105,119.04 $ 994,607.14 ------------- --,----------- ------------- --.----------- $ 6,580.00 11,626.76 988,289.70 8'16,179.00 $ $1,006,496.46 876,179.00 $ ------------- ------------- __'0______---- --,----------- $ $ 26,459.09 ------------- ------------- __-0____------ --,-----------