Audit Report - 1992
SALINA AIRPORT AUTHORITY
Salina, Kansas
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Years Ended December 31, 1992 and 1991
Prepared by the Management
of the
Salina Airport Authority
/~ Salina Airport Authority
d~.....~ SALINA MUNICIPAL AIRPORT ¡INDUSTRIAL CENTER
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~ Sali na Ai rport Authority
d.".~ Salina Municipal Airport and Salina Airport Industrial Center
Chairman
BOB E, on
July 9, 1993
Vice-Chairman
DOROTHY W, LYNCH
The Honorable Pete Brungardt, Mayor
City of Salina
300 West Ash
Salina, KS 67401
Secretary
RICHARD A. RENFRO
Treasurer
CHARLES STEVENS. JR,
Dear Mayor Brungardt:
Assistant
SecretarylTreasurer
JOSEPH M, RITTER
Transmitted herewith in accordance with K.S.A. 27-324 are copies of the
Salina Airport Authority's Comprehensive Annual Financial Risport for the
Years Ended December 31, 1992 and 1991. Please distribute the
additional copies to the City Commissioners.
Executive Director
TIMOTHY F. ROGERS
Operations Director
DONALD C, KNEUBUHL
Board Attorney
L,O BENGTSON
On behalf of the SAA Board of Directors, I would like to thank you and your
fellow City Commissioners for your support during 1992. We look forward
to your continued support during the remainder of 1993.
Please call if you have any questions or comments concerning the report.
Respectfully submitted,
SALINA AIRPORT AUTHORITY
Tlmo~}~
Executive Director
TFR/ci
cc:
Dennis Kissinger, City Manager
Bob Biles, Director of Finance l
3237 Arnold Avenue
Salina, Kansas 67401-8190
(913) 827-3914 OFFICE
(913) 827-2221 FAX
SALINA AIRFORI' AUlliORITY
Sal ina , Kansas
a:MPREHENSIVE ANNUAL FINANCIAL REFORI'
TABIE OF CDNl'ENTS
INI'ROrnCIDRY SECI'ION
Letter of Transmittal
Principal Officials
Authority staffing am Stnlcture
organization Chart
Salina Airport Aerial view
FINANCIAL SECI'ION
Independent auditor's report
FINANCIAL STATEMENTS
Comparative Balance Sheets
Comparative stat.eIænts of Operations and Glanges
in Retained Earnings
Comparative stat.eIænts of Cash Flows
Notes to Financial stat.eIænts
SUPPilMENTAL rnFORMATION
Detailed stat.eIænts of Operations and Glanges in Retained Earnings
Capital Expenditures
130nds of Indebtedness
Building Revenue Bonds-Series 1984
Building Revenue Bonds-Series 1985
General Obligation Economic Development Bonds-Series 1990-A
General Obligation Economic Development Bonds-Series 1990-B
Leasehold Revenue Bonds-Series 1991
Insurance In Force
Schedule of Federal ThJmestic Assistance
Comparison of Gross Cash Balances with Depository Security
STATISTICAL SECI'ION
Capital experrli tures am FAA contributions
Operating receipts and operating experrlitures
Air traffic, fuel flowage, enplanerænts data
Property tax rates, direct and overlapping
~phic data
arHER JNDEPENDENT AUDrIOR' S REFORl'S
Independent auditor's re¡:x:>rt on internal control stnlcture
related ma.tters noted in a financial statement audit
conducted in aax>rdance with GOVERNMENT AUDITING STANDARŒ
Independent auditor's re¡:x:>rt on compliance with laws and
regulations based on an audit of financial statements
performed in aax>rdance with GOVERNMENT AUDITING STANDARŒ
Independent auditor's re¡:x:>rt on schedule of federal
financial assistance
Single audit re¡:x:>rt on the internal control stnlcture used in
administering federal financial assistance programs
1-9
10
11
12
13
14-15
16-17
18
19-20
21-36
37-38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54-55
56-57
58
59-61
Independent auditor's re¡:x:>rt on compliance with the general
requirerænts applicable to federal financial assistance programs
62
Independent auditor's re¡:x:>rt on compliance with specific
requirerænts applicable to l1'ajor federal financial assistance
program transactions
63-64
Schedule of independent auditor I s findings
65
~ Salina Airport Authority
d.".~ Salina Municipal Airport and Salina Airport Industrial CentHr
Chairman
BOB E, OTT
Vice-Chairman
DOROTHY W, LYNCH
Secretary
RICHARD A. RENFRO
Treasurer
CHARLES STEVENS, JR.
Assistant
SecretarylTreasurer
JOSEPH M. RITTER
Executive Director
TIMOTHY F. ROGERS
Operations Director
DONALD C KNEUBUHL
Board Attorney
L.O, BENGTSON
3237 Arnold Avenue
Salina, Kansas 67401-8190
(913) 827-3914 OFFICE
(913) 827-2221 FAX
June 30, 1993
Salina Airport Authority Board of Directors
3237 Arnold Ave.
Salina, KS 67401
To the Board of Directors ot the Salina Airport Authority:
The Comprehensive Annual Financial Report of the Salina Airport Authority
(the "Authority") for the fiscal year ended December 31, 1992 is hereby
submitted in accordance with the Kansas Statutes AnnotatEid (K.S.A. 27-
324). Responsibility for both the accuracy of the data presented and the
completeness and fairness of the presentation, including all disclosures,
rests with the Executive Director of the Authority. To the best of my
knowledge and belief, the data as presented is accurate in all material
aspects, that it is presented in a manner designed to fairly set forth the
fiscal position and results of the operation of th~ Authority as measured by
its financial activity, and that all disclosures necessary to enable the reader
to gain rnaximum understanding are included in the report.
The Authority's 1992 Comprehensive Annual Financial Repol1 is presented
in four sections: introductory, financial, statistical and other independent
auditor's reports. The introductory section includes this transmittal letter,
the Authority's organizational chart, a list of the Authority's principal officers
and a listing of Autllority staff members. The financial section includes the
independent auditor's report and the Authority's financial statements, and
supplemental schedules. The statistical section includes selective financial
and demographic information, generally presented on a multi-year basis.
Single audit information is found in the last section containing other
independent auditor's reports.
( 1 )
REPORTING ENTITY AND ITS SERVICES
The Salina Airport Authority
The Salina Airport Authority is a body corporate and politic. The Authority was created
by the City of Salina in April, 1965 (Sec. 4-16, Salina City Code) pursuant to the authority
granted by the City by the surplus property and public airport authority act of the State
of Kansas (KSA 27-315 et seq.) The Authority was created for the purpose of accepting
as surplus property portions of the former Schilling A.F.B. which was closed by the
United States Department of Defense in June, 1965. By quitclaim deed the Authority
received over 3,500 acres of land and numerous buildings for the purpose of operating
and developing the Salina Municipal Airport and the Salina Airport Industrial Center. The
Authority is managed and controlled by a five-member Board of Directors appointed by
the Salina City Commission.
The Board appoints the Executive Director, who is the chief executive and administrative
officer of the Authority. The Executive Director hires the remaining employees of the
Authority. The Executive Director and his staff of twelve employees manage and operate
the SÇllina Municipal Airport and the Salina Airport Industrial Center.
Based upon the degree of fiscal and oversight responsibility exercised by tile Authority's
governing board, the Authority is considered a separate reporting entity uncler the criteria
set forth by the Governmental Accounting Standard Board (GASB) Statement No. 14.
The Salina Municipal Airport is the only commercial service airport serving Salina/Saline
County and the 22-county area which comprises North Central Kansas. The Airport also
services the corporate, business, private aviation and flight training needs of industry,
business and individuals in the area. The Airport is also used by the Kansas State
University - Salina Aeronautical Technology Department. The campus of I-<:-State Salina
is located adjacent to the airport. The K-State Salina Department of Aeronautical
Technology offers degrees in professional flight training.
The Salina Airport Industrial Center is home for sixty-six businesses and organizations.
Forty-four of the businesses and organizations are tenants of the Authority. One of the
primary functions of the Authority is to facilitate the continued growth of jobs and payroll
at the Industrial Center. The Authority works in partnership with the City of Salina, Saline
County and the Salina Area Chamber of Commerce for the retention of existing
businesses and industry and the recruitment of new business and industry.
(2)
ECONOMIC CONDITIONS AND OUTLOOK
Local Economy
The City of Salina and Saline County have not experienced the same econornic changes
that were experienced in other areas of the nation. There are 90
manufacturer/processors in the City/County area. Manufacturing employment is
approximately 6,050. Salina has also developed into a regional health care center and
a retail trade center for the 22 county (365,200 people) area of North Central Kansas.
Salina's historic agricultural industry is still a strong economic contributor.
Unemployment for the Salina/Saline County area was in the mean range of 3.56% for
1992. This was in sharp contrast to the national rate of 7.1 %. The state average was
3.6%.
Retail sales increased 4% during 1992. Salina ranked 6th in the state by 'percent of
state total', and 4th in terms of annual growth rate.
Overall, during 1992, the Salina/Saline County area had above-average increases in
employment (3.5%), retail sales (4%), wage and salary income (3.0%) and an average
population growth (1.09%). Salina's manufacturing base remains well-entrenched and
is experiencing steady growth. With the availability of a qualified and well-trained labor
force, the presence of higher education, and access to national transportation systems,
Salina is a good candidate for attracting new businesses and industry. Saline County
is the only county in the state's North Central Kansas Region with a per capita income
above that of the state and has grown consistently at higher rates than the region in
terms of both employment and income. In Saline County, government accounts for a
smaller share of economic activity, whereas the service sector retail trade, and
manufacturing account for a greater share than for the region as a whole. In the future
Salina and Saline County should maintain steady economic growth.
Economic Condition of the Airport and Airport Industrial Center
As of December 31, 1992 businesses and organizations at the Airport and Airport
Industrial Center employed an estimated 4,156 employees. Over 82% of the total
number of employees live within the Salina city limits. Total payroll for 1992 was an
estimated $89,899,000. In 1992 local purchases by the Airport and Airport Industrial
Center businesses and organizations totaled an estimated $18,792,213. Less than 42%
of total business volume was local, which means that over 50% of the goods and
services produced by all businesses are exported outside of the City of Salina.
In 1992 the Airport and Airport Industrial Center attracted an estimated 44,799 visitors
whose average stay was 1.9 days. Airport and Airport Industrial Center visitors
expended an estimated $3,806,400 while in Salina.
(3)
Future Economic Outlook
The future economic outlook for the Airport and Airport Industrial Center and the
Salina/Saline County area continues to look favorable. Major Authority tenants, such as
Beech Aircraft Corporation, Tony's Pizza, Inc. and the Kansas Army National Guard
continue to work on facility expansion plans. These improvements will result in additional
jobs and payroll growth.
Beech Aircraft Corporation is planning a 150,000 sq. ft. manufacturing facility expansion
for additional aircraft subassembly production work. The additional manufacturing space
will enable Beech to employ up to 200 more people. Tony's Pizza Inc. is preparing plans
for expansion onto a 10-acre tract of land adjacent to its existing plant. The Kansas
Army National Guard has designed a new 10 million dollar Nickell Barracks Training
Center.
The Kansas State University-Salina College of Technology continues to grow. The
architectural designs of a new College Center and Residence Hall were started in 1992.
Upon completion of the new buildings in Summer of 1994, the College will be able to
meet its projected enrollment growth of 800 full-time equivalent students for the Fall of
1994.
The continued change and growth in the Salina economy and the tenants of the Airport
and Airport Industrial Center will have a positive impact on the Authority's future. The
Authority's overall priority is to support the economic growth of Salina and the
surrounding areas by providing access to a national air transportation system and by
providing industrial buildings and sites. The Authority will continue to devE310p projects
to accomplish its goals of providing a first class airport for the area air transportation
needs, and a first class industrial center for the further creation of jobs and payroll.
INITIATIVES AND DEVELOPMENT
Current Year Projects
Completion of a land exchange with Kansas State University-Salina for this purpose of
providing the Kansas Air National Guard with a site for the new Nickell Barracks Training
Center.
The Authority's Airport Master Plan Update was completed. The plan provides the
Authority a comprehensive outline for Airport development through the year 2010. The
plan outlines capital improvements totaling $31 ,466,598. Federal Aviation Administration
(FAA) Airport Improvement Program grant funds would fund $24,091,734 of the total
(4 )
capital improvement costs. The Authority would fund $7,374,864 of the total cost of the
Airport capitol improvements through the year 2010.
A significant feature of the Airport Master Plan Update was a comprehensive review of
both City of Salina and Saline County zoning laws and regulations related to the Airport.
Both the City and County adopted updates in the Salina Municipal Airport zoning
ordinances which serve to protect the airspace surrounding the Airport from incompatible
development.
The Authority completed the construction of a 20,810 sq. ft. addition to the K-State-Salina
Aeronautical Center. This improvement has allowed K-State-Salina to expanlj enrollment
in professional flight and airframe & powerplant training programs.
The Authority installed a new accounts receivable package during the year. The
software package will assist the Board and management by providing better and more
timely information regarding rentable properties. The new system identifies rentable
properties by a consistent property identification number rather than a variable tenant
name. This accomplishment will create a more efficient and effective operating accounts
receivable system.
Future Projects
The Authority is planning to continue improvements to the aircraft parking apron,
taxiways and runways of the Airport. The Authority is working with the FAA to develop
a five-year capital improvement program for airfield improvements.
The Authority is also developing a five-year capital improvement program for the Airport
Industrial Center. The program will address the need for notifications and upgrades to
the Authority's industrial center buildings and streets.
With five-year capital improvement plans in place for both the Airport and Airport
Industrial Center, a comprehensive multi-year financial forecast will be prepared during
1993. The forecasted balance sheets, statements of income and retained earnings, and
statements of cash flows of the Authority will assist both the Board and management in
making policy decisions affecting the future financial status of the Authority.
During 1993 the Authority will construct new above-ground aviation fuel storage tanks.
The new above-ground storage will replace the current former U.S,. Air Force
underground fuel storage tanks currently used by the Authority's two aviation fixed base
operators.
The Authority plans to continue to work with the U. S. Corps of Engineers on a long-term
basis for the purpose of environmental clean-up of portions of the former Schilling Air
Force Base.
(5)
FINANCIAL INFORMATION
Internal Control Structure and Budgetary Controls
The authority follows generally accepted accounting principles applicable to governmental
unit enterprise funds. Accordingly, the financial statements are prepared on the accrual
basis.
Management of the Authority is responsible for establishing and maintaininq an internal
control structure designed to ensure that the assets of the Authority are protected from
loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow
for the preparation of financial statements in conformity with generally accepted
accounting principles. The internal control structure is designed to provide reasonable,
but not absolute, assurance that these objectives are met. The concept o.r reasonable
assurance recognizes that: (1) the cost of a control should not exceed the benefits likely
to be derived; and (2) the valuation of costs and benefits requires estimates and
judgments by management.
An annual budget is prepared in accordance with the Authority's By-laws. The Authority
is specifically exempt from the budget laws of the State of Kansas (K.S.A. 27-322). The
Authority is not required to demonstrate statutory compliance with its annual operating
budget. Accordingly, budgetary data is not included in the accompanying financial
statements.
Results of Operations
Revenues
The operating revenues of the Authority increased 3.3 percent from the previous year.
The increase in rental revenues is the result of increases in building occupancy. The
decrease in fixed base operator (F.B.O.) fees is due to lower than projectød fuel sales
by the Authority's two F.B.O.'s. The increase in landing fees is due to incr,sased flights
by US Air Express and commercial charter operators. Other operating revenues
increased due to increases in rental commissions.
A summary of operating revenues follows:
Percent Increase
Increase (Decrease)
Operating Revenues 1992 li9.1 (Decrease) From 1991
Rental revenues $791,974 $762,984 3.8% $28,990
Fixed base operator 82,345 84,079 (7.5%) (6,734)
Landing fees 5,565 4,271 30.1% 1,294
Other operating revenues 1 6.1 36 11 . 002 46.7% 5.134
Total ~896.020 ~867 .336 3.3% $28.684
(6)
Expenses
Operating expenses before depreciation increased 3.5 percent. Office and aejministrative
expenses increased 1.8% due to increases in office salaries, travel and meetings,
insurance, engineering, telephone, and other administrative expenses. Maintenance
expenses increased 5.6% due to increases in maintenance salaries, building
maintenance, airfield maintenance, agri-Iand expenses, and other maintenance
expenses.
A summary of operating expenses follows:
Total
Percent Increase
Increase (Decrease)
1992 1991 (Decrease) From 1991
$415,819 $408,578 1.8% $ 7,241
347.498 329.137 5.6% 18.361
~763.31l ~ 3.5% $25.602
Operating Expenses
Office and Administration
Maintenance
Fiduciary Operations
In 1991 the Authority entered into an Interlocal Cooperative Agreement with the Kansas
Board of Regents, Kansas State University, and the City of Salina. Under the
agreement, the City transfers to the Authority the proceeds from a 1/2 cent retail sales
tax. The funds are designated for capital improvements to the campus of Kansas State
University--Salina, College of Technology located at the Airport Industrial! Center. In
accordance with the terms of the interlocal agreement, the Authority is responsible for
assuring that the sales tax proceeds are expended in a manner consistent with specific
project budgets previously approved by the Salina City Commission.
Debt Administration
The outstanding long-term debt of the Authority was $3,555,000 at December 31, 1992.
This debt consists of building revenue bonds, general obligation bonds, and leasehold
revenue bonds of the Authority. Maturities range from 1994 through 2006 and interest
rates range from 5.0% to 8.5%. Both principal and interest are payable from proceeds
of financing leases. The exception is the 53,300 sq. ft. manufacturing building located
in the Authority's industrial subdivision. The tenant of the building defaulted on the lease
in May, 1989. The building has been held subject to bond agreement and I.R.S. tax
code restrictions that require the purchaser to meet certain requirements regarding
exempt debt. These restrictions expire on August 1, 1993. An August, 1993 sale of the
building is expected. Proceeds of the sale will be sufficient to retire and will be used to
retire the portion of long-term debt allocated to the building. The proceeds will be held
as restricted cash-bonds until a 1996 call date. Details are shown in note 7: Long-Term
.Q.e.Qt to the Authority's financial statements included in the financial section of this report.
(7)
Cash Management
All cash temporarily idle during 1992 was invested by the Executive Director of the
Authority in short-term investments to attain the highest possible return consistent with
the Authority's liquidity needs. All investments are in compliance with K.S.A. 12-1675
which controls the investment of public funds by governmental units. All funds are
deposited daily and all accounts are interest bearing.
Risk Management
It is the policy of the Authority to eliminate or transfer risk where possible. The Kansas
Tort Claims Act (K.S.A. 75-6101 et seq.) generally limits tort liability for Kansas
governmental entities. The maximum liability for claims as specified by the Act is
$500,000 for any number of claims arising out of a single occurrence or accident. For
wrong acts Kansas governmental entities or their employees are exempted from liability.
The Authority carries $500,000 of comprehensive general liability insurance which
matches the limit established by the Kansas Tort Claims Act. The Authority also has
$4,423,000 of property insurance on airport properties.
The Authority's commercial property insurance includes $1,566,824 in loss of rents
coverage. All contractors and lessees are required to carry amounts of insurance with
limits and deductibles approved by the Authority. A schedule of insurance in force at
December 31 1992 is included in this report.
In addition, the Authority uses various risk management techniques. All contractors and
lessees are reviewed by the Authority's legal counsel.
(8)
OTHER INFORMATION
Independent Audit
Pursuant to K.S.A. 27-324, an audit of the books, accounts and financial statements has
been completed by the Authority's independent certified public accountants, Harrison &
Arnett, Chartered. The independent audit is in accordance with the Kansas Minimum
Standard Audit ProQram, the Government Auditory Standards issued by the Comptroller
General of the United States, and the provisions of the Office of Mana!Jement and
Budget Circular A-128, "Audits of State and Local Governments".
Acknowledgements
The support of the Authority's Board of Directors has been instrumental in the
preparation of this report. The Board has been actively involved in the preparation of this
report and is committed to responsible and progressive financial reporting. Thank you
for your support of the efforts to improve on the Authority's financial management and
reporting.
Also acknowledged is the assistance of the Authority's auditor, Harrison & Arnett,
Chartered, Certified Public Accountants, Mr. Robert K. Biles, Director of Finance for the
City of Salina, the Salina Area Chamber of Commerce, and Russell F1. D'Souza,
Assistant Professor of Businesses Administration and Finance, Kansas Wesleyan
University in the preparation of this report.
Respectfully submitted,
~)~
Timothy F. Rogers, A.A.E.
Executive Director
Salina Airport Authority
(9)
'lliIS PAGE INI'ENI'IONALLY IEFT BrANK
SALINA AIRPORT AUTHORITY
3237 Arnold Ave.
Salina, Kansas 67401
(913) 827-3914
AUTHORITY STAFFING AND STRUCTURE
as of December 31. 1992
ADMINISTRATION
Timothy F. Rogers
Executive Director
Donald C. Kneubuhl
Director of Operations
Cathy Lentz
Secretary
OPERATIONS, MAINTENANCE AND ARFF
John Banninger
Supervisor
Steve Atkins
Operations, Maintenance & ARFF worker
Loren Carleton
Operations, Maintenance & ARFF worker
Kim Colby
Operations, Maintenance & ARFF worker
Gary Hansen
Operations, Maintenance & ARFF worker
Dale Mattison
Operations, Maintenance & ARFF worker
David Nease
Operations, Maintenance & ARFF worker
Rob Pejsha
Operations, Maintenance & ARFF worker
TERMINAL BUILDING CUSTODIAL
Vachel Keaton
Custodian
Francis Vestal
Custodian
(11 )
SALINA AIRPORT AUTHORITY
3237 Arnold Ave.
Salina, Kansas 67401
(913) 827-3914
PRINCIPAL OFFICIALS AS OF DECEMBER 31.1992
BOARD OF DIRECTORS
Charles B. Roth
Chairman
Bob E. Ott
Vice-Chairman
Dorothy W. Lynch
Secretary
Richard A. Renfro
Treasurer
Roger Morrison
Asst. Secretary/Treasurer
ATTORNEY
Larry O. Bengtson
Clark, Mize & Linville, Chartered
AUDITOR
Thomas G. Arnett
Harrison & Arnett, Chartered
(10)
SALINA AIRPORT AUTHORITY
Organizational Chart
(As of December 31, 1992)
Salina City Commission
I
SAA BOARD OF DIRECTORS
Charles B. Roth
Roger Morrison
Dorothy W. Lynch
Richard A. Renfro
Bob E. ou
BOARD ATTORNEY
L.O. Bengtson
EXECUTIVE DIRECTOR
Timothy F. Rogers
SECRETARY/RECEPTIONIST
DIRECTOR OF OPERATIONS Cathy Lentz
Donald C. Kneubuhl
MAINTENANCE & OPERATIONS
SUPERVISOR I
John Banninger
I I [ CU.?:.O~I.AN Î
CUSTODIAN
\I 1/__._-
v. r'\t::alUII r. vestal I
Operations, Mair enance & ARFF
G. Hansen I R. Pejsha I I R. Colby I D. Nease I S. Atkins I I 0, Mattison I L. Carleton
I I I I
~
-"
~
SALINA AIRPORT AUTHORITY
SALINA MUNICIPAL AIRPORT & AIRPORT INDUSTRIAL CENTER
~
~
~
-"',
HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
EUGENE O. HARRISON. C.f>A.
THOMAS G. ARNETT, C.f>A.
119 EAST CRAWFORD. SALINA. KANSAS 67401
PHONE: (913) 627.7244
FAX: (913) 627.0046
JNDEPENDENT AUDrIOR I S REFDRI'
To the Board of Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the accarnpanying financial stat.eIænts of the S<ùina
Airport Authority, Salina, Kansas, as of December 31, 1992 and CecE~
31, 1991 and for the years then erxled as listed in the table of contents.
'Ihese financial staterœnts are the res¡:x:>nsibility of the Salina Ai:J:port
Authority, Salina, Kansas, ma.nagement. OUr res¡:x:>nsibility is to express
an opinion on these financial staterœnts based on our audit.
We corrlucted our audit in aax>rdance with generally accepted auditing
starrlards, and the Kansas MiniIm.nn Standard Audit Prcx::Jram, Govennnent;
Auditinq Standards, issued by the Comptroller General of the United
states, am the provisions of Office of Management and Budget Cira.ùar
A - 12 8 , "Audits a f state am Local Gov ernræ.n ts" . 'Ih ose standards and. CMB
Circular A-128 require that we plan am perfonn the audit to obtain
reasonable assurance about whether the financial stat.eIænts are fTI~ of
material misstat.eIænt. An audit includes examining, on a test basis,
evidence supporting the am:JUI1ts and disclosures in the financial
stat.eIænts. An audit also includes assessing the accounting principles
used am significant estimates ma.de by ma.nagement, as well as evaluating
the overall financial stat.eIænt presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all ma.terial respects, the financial position of the Salina
Airport Authority, Salina, Kansas, as of December 31, 1992 and December
31, 1991, and the results of its operations am its cash flows for the
years then erxled in confonnity with generally accepted accounting
principles.
~ilA~HS Oé
DIVISION fUR CPA fiRMS f'HIVATF COMPANICS f'HAC! :;r CT!(JN
M~i:RICAN 'NSTITUT~ CERTlf,[[) PIÆIIC ,vXOur,rANTS
KANSAS SOCIE-TY or CUHlflfU I'UB; '\CCCJU'":ANTS
OUr audit was conducted for the pur¡:x:>se of fanning an opinion on the
financial stat.eIænts taken as a whole. 'Ihe supplemental infonration
listed in the table of contents is presented for pur¡:x:>se of additional
analysis am is not a required part of the financial stat.eIænts of the
Salina Airport Authority, Salina, Kansas. SUch information has been
subjected to the auditing procedures applied in the examination of the
financial statements and, in our opinion, is fairly presented in all
ma.terial respects in relation to the financial statements taken as a
whole.
~~/~
Sal ina , Kansas
March 26, 1993
~~ CPA
Certified Public Aax>untant in charge
of and actively engaged on this audit.
(15)
'lEIS PAGE INTENTIONAILY lEFT BlANK
SALINA AIRFDRI' AUIHORITY
Cll1PARATIVE BAlANCE SHEETS
ASSETS
aJRRENT ASSETS:
Cash (Note 2)
Aax>unts receivable-net of allowance for
uncollectible accounts of $1,898 and $5,000
Prepaid expenses
Notes recei vable-current ¡:x:>rtion
Total CUrrent Assets
RESTRICI'ED ASSETS: (Note 3)
Cash and cash equivalents
Invesbnent securities
Accrued interest receivable
Interest receivable-financing
Building
Constnlction in prcx;:¡ress
Assets designated for deferred
compensation benefits
1 eases
Total Restricted Assets
NEI' rnvES'IMENT ill FlliANClliG LFASES (Note 4)
NEI' rnvES'IMENT ill FIXED ASSETS (Note 5)
arHER ASSETS:
Bond issue costs, less aCC\.lll1lÙ.ated
amortization of $10,100 and $4,597
IDng-tenn notes receivable, less
current portion of $10,850 and $49,079
Total Other Assets
'IDI'AL ASS ETS
( continued)
December 31L
1992 J991
$ 97,735 $ 97,084
9,570 17,909
22,623 17,306
10,850 49,079
140,778 181. 378
3,227,564 3,329,515
1,573,872 :200,000
18,359
30,000
940,631 940,631
81,167
43,009 41. 590
5,803,435 ~522 , 903
2,693,072 ~)84 , 516
10,193,911 ~381. 112
85,015 70,093
13,083 133 , 050
98,098 :203,143
$18,929,294 $17,473,052
See notes to financial staterænts
(16)
SALINA AIRroRI' AUI'HORITY
CX11P ARATIVE PAIAN CE SHEErS
LIABILITIES AND EQUITY
C1JRRENT LIABILTIES:
Accounts payable-operations
Aax>unts payable-capital
Accrued payroll and expenses
Deferred rent
Total CUrrent Liabilities
RESTRICI'ED LIABILITIES:
Salina-KSU sales tax liabilities (Note 3)
Accrued interest payable
Deferred interest financing leases
CUrrent ma.turities of long-term debt
TerrpJrary notes
Deferred compensation payable
Total Restricted Liabilities
IDNG-TERM LIABILITIES: (Note 7)
Bonds payable, less current ma.turities
Total Liabilities
EQUITY :
Contributed capital, Federal
Aviation Administration
Retained earnings
Total Equity
TOI'AL LIABILITIES AND EQUITY
December 3 1 '.
1992 J991
$ 14,949 $ 24,506
29,701
12,604 11,146
2,274
29,827 65,353
4,326,565
81,195
85,361
265,000
1,937,958
83,731
36,900
260,000
450,000
41,590
43,009
4,801, 130
~~10,179
3,555,000
~~20, 000
8,385,957
~¡95,532
4,303,725 4,368,366
6,239,612 ~f09 , 154
10,543,337 10,777,520
$18,929,294 $17, ~,73, 052
See notes to financial statements
(17)
SALINA AIRFORI' AUIHORITY
CXMPARATIVE STATEMENTS OF OPERATIONS AND CEANGES
IN RErAINED EARNINGS
January 1 to December 31 ,
1992 1991
OPERATING REVENUES:
Rental revenues
Fixed base operator
Landing fees
Other operating revenues
Total Operating Revenues
$ 791,974 $ 762,984
82,345 89,079
5,565 4,271
16 ,136 11,002
896,020 867,336
415,819 408,578
347,498 329,137
OPERATING EXPENSES BEFORE DEPRECIATION
Office am administration
Ma intenance
Total Operating Expenses Before
Depreciation
DEPRECIATION
763 , 317 737,715
132,703 129,621
728,299 707,660
(595,596) ~78,039)
OPERATING INexME BEFORE DEPRECIATION
OPERATING IDSS
NON-oPERATING INexME (EXPENSE):
Interest on investments am
financing 1 eases
Interest expense
Net Non-Gperating Income
310,128 286,926
(284,063) ~68 , 056)
26,065 18,870
(569,531) (~;59, 169)
399,989 395,634
(169,542) (163,535)
6,409,154 ~¡72 , 689
$6,239,612 $ 6,409,154
NET IDSS
ADD DEPRECIATION ON ASSEI'S ACQUIRED THROUGH
FEDERAL CDNI'RIBUITONS
DECREASE IN REI'AINED EARNINGS
RETAINED EARNINGS, January 1
RETAINED EARNINGS, December 31
See notes to financial statements
(18)
SALINA AIRFDRI' AUIHORITY
ŒMPARATIVE STATEMENTS OF CASH FLOWS
(DIRECT METHOD)
CASH FLOWS FRCM OPERATING ACITVITIES:
Cash received from sales, cormnissions
fees am rents
Cash paid employees for services
Cash paid to suppliers for goods and services
Proceeds from sales tax (Note 3)
Cash paid to KSU-Salina proj ect contractors
Net Cash Provided By
Operating Activities
January 1 to December 31,
1992 1991
$
906,633
(333,750)
(442,982)
2,557,906
(305,525)
2,382,282
CASH FLOWS FRCM CAPITAL AND RElATED FINANCING ACITVITIES:
Purchase of property, plant and equipment (1,325,100)
Proceeds from capital grants (FAA) 335,349
Bond issue costs (20,426)
Reimbursements of constnlction costs
Proceeds from new borrowing
PrinciPal payments on debt
PrinciPal received on financing leases
Interest received on financing leases
Principal received on long-tenn notes
Interest paid
Net Cash Provided (Used) In Capital Arrl
Related Financing Activities
CASH FLOWS FRCM INVESTING ACI'IVITIES:
Purchase investments
Interest received
Net Cash Provided (Used)
By Investing Activities
INCREASE (DECREASE) IN CASH & CASH
EQUIVAIENTS
CASH BAlANCE-ùanuary 1
CASH BAlANCE-December 3 1
( continued)
(710,000)
244,344
335,489
158,196
(298,529)
(1,280,677 )
(1,373,874)
170,969
(1,202,905)
(101,300)
3,426,599
$3,325,299
See notes to financial statements
(19)
$
865,061
(344,886)
(411,318)
1,988,596
(64,719)
;;! , 032,734
(513,005)
29,430
(11,694)
49,039
1,300,000
(203,000)
208,012
229,036
53,389
(269,924)
871,283
78,759
78,759
2,982,776
443,823
$3,426,599
Decernber 3 1 ,
1992 1991
CASH AND CASH :EXPIVALENTS
m END OF YEAR CDNSISTS OF:
unrestricted cash
Restricted cash am cash equivalents
$ 97,735
3.227.564
$ 97,084
~29 . 515
$3,325,299
$3,426,599
RECDNCILIATION OF OPERATING IDSS 'ID NET
CASH F'IŒS FR::M OPERATING ACI'IVITIES
Decernber 3 1 ,
1992 1991
OPERATING IDSS
$ (595,596)
$ (578,039)
ADJUS'IMENTS RECDNCILING OPERATING IDSS
'ID NET CASH PROVIDED BY OPERATING
ACITVITIES :
Depreciation
Proceeds from sales tax
Payments to contractors
728,299
2,557,906
(305,525)
707,660
1,988,596
(64,719)
CHANGES IN ASSETS AND LIABILITIES:
Decrease ( increase) in
accounts receivable
Increase ( decrease) in
aax>unts payable
Increase ( decrease) in
a ecru ed expenses
Decrease ( increase ) in
prepaid expense
Increase ( decrease) in
deferred rent
NET CASH PROVIDED BY OPERATING ACITVITIES
8,339 11,889
(9,557) 12,017
1,458 (27,059)
(5,316) (3,447)
2.274 (14 .164)
$2,382,282 $2,032,734
See notes to financial statements
(20)
SALINA AIRroRI' AUlliORITY
NarES 'ill FINANCIAL STATEMENTS
December 31, 1992 and 1991
NOI'E 1:
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACOJUNITNG roLICIES
A. ORGANIZATION - 'Ihe Salina Airport Authority (the IIAuthority"l) is an
authority estabilished by the City of Salina, pursuant to ŒLapter
27, Article 3, of the Kansas statutes Annotated. 'The Authority was
established for the pur¡:x:>se of acquiring Sillplus federal gO\/ernment
property specifically the Schilling Air Force B3.se located near
the City of Salina. 'The Authority administers the airport,
carnrnercial development and rental of associated real estate.
B.
REroRTING ENTITY - 'Ihe Authority's Board consists of five TI\E!IIÙJerS
ap¡:x:>inted by the city commission of the City of Salina. Although
the mayor and city commissioners ap¡:x:>int the members to the Board,
that is the extent of their oversight res¡:x:>nsibility.
Based upon the degree of fiscal and oversight res¡:x:>nsibility
exercised by the Authority's Board, the Authority is considETed a
separate re¡:x:>rting entity under the criteria set forth by the
Governmental ACCOill1ting Standards Board (GASB) statement No. 14.
In reaching the above conclusion, the Authority considered the
follCMing re¡:x:>rting entity definition criteria:
1.
Legally Separate Organization - 'The Authority has its CMl1
name, has the right to sue and be sued in its CMl1 naITe with-
out recourse to a state or local governmental unit and has
the right to buy, sell, lease and mortgage property in its
CMl1 name.
2.
Imposition Of will - 'Ihe City of Salina, although appoint-
ing all Board members, may not remove appointed members at
will, may not mcxiify or approve the budget of the Authority,
may not mcxiify or approve rates of fees charged, may not
veto, overrule or mcxiify the decisions of the Board and. the
City does not have the ability to appoint, hire, reassign
or dismiss persons res¡:x:>nsible for the day-~y operations
of the Authority.
3.
Financial Benefit Or Burden - 'Ihe City is not legally
entitled to am can not otherwise access the resources of
the Authority nor is the City legally obligated for or
otherwise assumed the obligation to finance the deficits or
provide financial suP¡:x:>rt to the Authority. 'Ihe City is not
obligated for the debt of the Authority.
(21)
4.
Financial Aax>untability - The Authority determines its
budget without the city having the authority to approve or
m:xlify that budget.
K.S.A. 27-322(a) provides that with the consent of ele
city, the Authority ma.y annually levy a tax not to exceed
three mills on each dollar of assessed tangible valuation
of the property of the City for the furtherance of ele
purpose of the Authority. '!he Authority does not currently
levy under this provision.
K.S.A. 27-322 (b) provides that if the Authority is
required to provide ma.tching funds in order to qualify
for any federal or state grant relating to the develop-
ment, improvement, operation of ma.intenance of the public
airport, am such funds are not otherwise available :from
revenue of the airport facilities, the Authority nay levy
a tax of not to exceed one mill for such purposes without
the corisent of the governing body of the City. 'Ihe
Authority does not currently levy under this provision.
K.S.A. 27-322 (a) provides that the Authority shall have
the power to issue its ChIll general obligation bonds 1,olith
the approval of the governing body of the City. ono~ the
approval of the City Cormnission is granted, the Authority,
by resolution, issues its general obligation bonds which
provides that the Authority will annually levy a tax
sufficient to pay the principal and interest on the bonds
as they become due. 'Ihe statute further provides th3.t"
"The full faith am credit of the Authority
shall be pledged to the payment of the general
obligation bonds of the Authority, includ.i.nJ
principal and interest, and the Authority shall
annually levy a tax on all taxable tangible
property within the city, in addition to all
other levies authorized by law, in an aIOC>unt
sufficient to pay the interest on am the
principal of the bonds as the same become due. II
The Authority does not currently levy under this provision.
C.
:E3ASIS OF ACCDUNrING - The Authority consists of an enterprise fund.
Enterprise funds are classified as proprietary funds by the GASB
and are aax>unted for using a total economic resource measurement
focus. The enterprise fund is used to aax>unt for operations that
are financed and operated in a manner similar to private business
enterprises. The intent of the Board is that the costs of pro-
vicii.nJ services on a continuing basis be recovered through user
fees and rents. The financial statements are prepared on the
accrual basis of aax>unting. Under the accrual basis, revenues are
recognized as earned and expenses as incurred.
(22)
D.
CASH AND CASH Ð;¿UIVAIENTS - For the purpose of the comparative
stat.eIænt of cash flows, the Authority considers all highly
liquid investments (including restricted assets) with ma.turities
of three months or less when purchased to be cash equi valen1:s.
At December 31, 1992 and 1991, cash equivalents, which are stated
at cost, include daily repurchase agreements.
E.
INVES'IMENI'S - All investments are stated at cost. '!he Authority's
investments consist of Certificates of Deposit and Treasury Bills.
F.
PRO PERrY AND Ð;:2UIFMENT - On September 9, 19 66 , the united S1:a tes of
America pursuant to section 13 (g) of the SUrplus Property Act of
1944, transferred certain ¡:x:>rtions of the Smoky Hill Air Force Base
to the Authority.
Property and equipment assrnned by the Authority on september 9,
1966 is carried at fair ma.rket value at that date of $529,872
less accumulated depreciation of $44,180. SUbsequent additions
to property am equipment are recorded at cost.
Maintenance and repairs are expensed as incurred. When properties
are disrx:>sed. of, the related cost and accumulated depreciation are
removed from the respective aax>unts am any gain or loss on dis-
position is credited or charged to operations. Runways, taJdways,
parking areas, sewers am other similar items are written off when
fully depreciated unless clearly identified as still being in use.
Assets are depreciated using the straight-line method over the
estimated useful lives of the assets as follows:
Buildings and Improvements
Infrastnlcture Items
Equipment
Years
5-40
10-40
5-10
Depreciation applicable to certain property and equipment which
have been furrled by or contributed to the Authority by the federal
governrænt is charged against the respective capital grant E~ ty
balance. '!his charge is effected by transferring the applicable
depreciation from retained earnings and has no effect on income.
In aax>rdance with Financial Aax>unting Standard Board Statement
No. 62, interest during constnlction periods, when signifiCémt, is
capitalized and included in the cost of property am net investment
in financing leases. In 1992 $17,334 of interest was capit¿ùized.
In 1991 no interest was capitalized. (Note 5)
(23)
G.
BJNΠISSUE CDSTS - Bond issue costs are deferred and aIOC>rtized
using the straight-line method over the life of the bonds to which
it relates.
H.
<XMPENSATED ABSENCFS - SUbstantially all full-time employees
receive compensation for vacations, holidays, illness and certain
other qualifying absences. 'Ihe number of days compensated for
various categories of absence is generally based on l~ of
service. Liabilities relating to these absences are recognized
as incurred and included in accrued expenses. 'Ihe aIOC>unt of
accrued vacation pay at December 31, 1992 and 1991 was $7,41.8
am $7,423 respectively. (Note 13)
I.
CAPITAL GRANT FUNI:E - Certain expenditures for capital improve-
ments receive significant federal funding through the Airport
Improvement Program (AIP) of the Federal Aviation Administration
(FAA). 'Ihe Authority funds the rermining balance of such expendi-
tures. Capital funding provided under government grants is con-
sidered earned as the related approved capital improvement E!XpeI1-
di tures are disbursed .
J.
INVEN'IORY - 'Ihe Authority ma.intains no significant inventory of
office and ma.Ï:ntenance supplies. 'Ihese items are expensed as pur-
chased am no inventory is recorded in these financial statements.
K.
ALI.OWANCE FOR UNCDLŒCI'IBlE ACOJUNI'S - 'Ihe Authority calculates its
allowance for specific aax>unts using specific account analysis.
L.
IEASES - 'Ihe Authority is a lessor under numerous lease agrE~ts.
'Ihe leases are classified as operating leases, except for certain
special facility leases which are aax>unted for as direct financing
leases.
M.
TAXES - 'Ihe Authority is exempt from payment of federal and state
income, property and certain other taxes.
N.
RECIASSIFICATIONS - Certain amounts in the 1991 financial s1:ate-
ments have been reclassified to conform to 1992 presentations.
o.
I3lJffiEI'S - 'Ihe Authority is specifically exempt from Kansas Budget
Law. 'Ihe Authority is not required to demonstrate statutorf com-
pliance with its annual operating budget. Accorc:li.rBly, budgetary
data is not included in the financial statements.
(24)
NOI'E 2: CASH, CASH ~ AND INVES'IMENT SEaJRITIES
Cash, cash equivalents am invesb11ent securities included in the com-
parative balance sheets consist of the following:
December 3 1 ,
1992 1991
Cash am cash equivalents
CUrrent
Restricted
Total Cash am Cash Equivalents
$ 97,735 $ 97,084
3,227,564 --..L.B9,515
3,325,299 --1Æ6,599
1,573,872 200,000
43,009 -.11,590
Invesb11ent securities-restricted
Deferred compensation plan assets
Total Cash, Cash Equivalents and
Invesb11ent securities
$4,942,180
$3,668,189
--
--
Kansas statues authorize the Authority to invest in United states
Obligations, secured repurchase agreements, certificates of deposit,
tÌ1ne deposits and open aax>unts.
The carrying amount of deposits and investments securities by type of
investment are as follows:
Carrying value
December 3 1.L
1992 ],991
Cash deposits
Certificates of deposit
Total Deposits
$2,108,259 $1,941,627
206,500 ~O,OOO
2,314,759 ~1, 627
2,359,412 1,404,972
225,000 80,000
43,009 --11,590
2,627,421 ~6, 562
$4,942,180 $3,668,189
u. S. Government obligations
Repurd1ase agreements
Deferred compensation plan assets
Total Investment securities
Total Deposits and Investment securities
(25)
Deposits of the Authority with financial institutions are catagorized
by credit risk as follows:
December 3 1
1992
1991
Carry ing
Value
B:mk
Balance
Carry ing
Value
B:mk
Balance
Cash on deposit
Insured by federal
deposit insurance
corporation
Collateralized with
securities held
by pledging
financial institution
in Authority I s name
$
300,000
$
300,000
$
300,000
$
300,000
2,014,709
1,800,073
1,841,577
1,929,679
2,314,709
2,100,073
2,141,577
2,229,679
Cash on ham
(petty cash)
50
50
$2,314,759
$2,100,073
$2,141,627
$2,229,679
The Authority's deposits are entirely covered by federal depository
insurance or by collateral held by pledging financial institutions in
the Authority's name.
The Authority's investments are categorized to give an indication of the
level of risk assumed by the entity. Category 1 includes invesbnents
that are insured or registered, or securities held by the Authority or
its agent in the Authority's name. Category 2 includes uninsured and
unregistered investments for which the securities are held by the counter-
party' s trust department or agent in the Authority's name. Category 3
includes uninsured and unregistered investments for which the securities
are held by the counterparty or by its trust deparbnent or agent but not
in the Authority's name.
1
December 3 1 , 1992
Catecrorv Carry ing Market
2 3 Value Value
$2,359,412 $2,359,412 $2,377,771
u. S. Treasury Obligations
Repurchase agreements
secured by U. s.
Treasury or Federal
Agency securities
$-
225,000 225,000 225,000
$- $2,584,412 2,584,412 2,602,771
43,009 43,009
$2,627,421 $2,645,780
Deferred compensation
plan investments
(26)
1
December 31, 1991
CateGOry Carry ing Market
2 3 Value Value
$1,404,972 $1,404,972 $1,404,972
u. s. Treasury Obligations
Repurchase agreements,
secured by U. S .
Treasury or Federal
Ageyy;:;y securities
$-
80,000 80,OOQ 80,000
$ -- $1,484,972 1,484,972 1,484,972
41, 59Q 41, 590
$1,526,562 $1,526,562
Deferred corrpensation
plan investments
Investment yields range from 3.35% to 4.01% at December 31, 1992 am mature
on various dates through June 30, 1993. Investment transactions made
during the years errled December 31, 1992 and 1991 were limited 1:0 the
classifications above.
NarE 3: RESTRI CI'ED ASSEI'S
Restricted assets consists of the foIl CJV.l ing at December 3 1, 1992 and 1991:
1992
Cash and Accrued
Cash Interest Total Total
Equivalents Investments Receivable 1992 1991
RESTRICI'ED BY IDND
AGREEMENT :
Borrl reserves:
Revenue bonds-84 $ 10,547 $ 100,000 $ $ 110,547 $ 110,547
Revenue bonds-85 24,610 100,000 124,610 114,610
GOB-90A 83,200 83,200 30,000
Building 940,631 940,631
GOB-90B 45,228 45,228
Leasehold bonds-91 49,500 6,500 56,000
Unexperrled
constnlction costs 768,833
Constnlction in
pD:X¥ess 81,167
Temporary notes 450,000
INTERLOCAL AGREEMENT
KSU / SALINA SAlES
TAX 2,940,834 1,367,374 18,359 4,326,567 1,937,958
IDARD DESIGNATED
IDND RESERVES 73,643 73,643 147,567
DEFERRED cx:MPEN -
SATION PIAN 43,009 43 , OO~~ 41, 590
$3,227,562 $1,616,883 $18,359 $5,803,43:) $4,622,903
All restricted êll1K)unts are held by the Authority except for asS(~ts in the
deferred compensation plan which are held by the trustee of the plan.
(27)
Revenue Bonds-1984 am 1985:
The proceeds of the 1984 and 1985 revenue bonds were used to constnlct
buildings that were leased to a ma.nufacturing tenant of the Authority.
The leases are financing leases that transfer ownership of the buildings
at the errl of the lease. The bond agreements established certain reserve
requirements which the Authority has Iæt.
General obligation Bonds-1990A and 1990B:
The proceeds of the 1990A and 1990B General Obligation Bonds were used to
purchase a building that was leased to a ma.nufacturing tenant, o::>nstnlct a
building that was leased to a ma.nufacturing tenant and to construct a
building that was leased to a state university. The leases are financing
leases that transfer ownership of the buildings at the end of the lease.
The bond agreements established certain reserve requirements which the
Authority has met.
The lease on the ma.nufacturing building constnlcted has been terminated and
the lessee has rellobursed part of the constnlction costs. The building is
held subject to bond agreement restrictions that require the purchaser/
leaser to meet certain requirements regarding exempt debt. These
restrictions expire August 1, 1993.
TeIrporary Notes:
The temporary notes were used to constnlct a building. The notEs were
repaid with proceeds of the leasehold revenue bonds of 1991.
Leasehold Revenue Bonds-1991
The proceeds of the 1991 leasehold revenue bonds were used to constnlct a
building that was leased to a state university. The lease is a financing
lease that transfers ownership at the errl of the lease. The bond agreement
established certain reserve requirements which the Authority has met.
Inter local Sales Tax Agreement:
The Authority has entered into an Inter local Cooperation Agreement with
the Kansas Board of Regents, a state agency of Kansas; Kansas Si:ate
university, a state university and the city of Salina. Under this
agreement, the Authority receives from the city the proceeds from a 1/2
cent retailers sales tax, holds am invests these receipts and in
aax>rdance with agreed procedures disburses these proceeds for :Î1Tprove-
ments to the KSU-Salina campus.
(28)
'Ihe follCMing schedule sunurarizes the activity under this agreement.
Aax>unt beginning balance
Receipts
Retail sales tax
Interest
YearEnd ed
December 3 1
1992 1991
$1,937,958 $
2,557,902
136,229
1,988,596
13,969
Total Receipts
2,694,131
2,002,565
Disbursements
Residence hall
South bourrlary road
North bourrlary road
Main entrance
Infrastnlcture equiprænt
College center
Teclmical center
237,384
10,486
4,760
59,847
46
57,608
Total Disbursements
305,524
64,607
Aax>unt Balance
$4,326,565
$1,937,958
Cumulative
Total
$
4,~A6,498
150,198
~;96 , 696
242,144
70,333
46
57,608
370,131
$4,326,565
'Ihe North Bourrlary Road am South Boundary Road improvements aId any
dedicated utility improvements constnlcted with sales tax proceeds be-
come the property of the City. All other capital improvements or
capital equipment paid for with sales tax proceeds becarre the property
of the state of Kansas.
Board Designated Bom Reserves:
'Ihe board has established an aax>unt to accumulate financing leêLSes
receipts. 'Ihe êlIIK)unt in the aax>unt is the excess of lease recE~ipts
over bond agreement requirements.
(29)
NOIE 4: NEI' INVES'IMENT ill FINANCING LEASES
Net investment in financing leases consist of the folla,.¡ing:
December 3 1
1992 .1991
Minimum lease payments to be
received, net of born issue costs
Less : Unearned i.ncorre
$5,306,576
2,613 ,504
Net investment in financing leases
$2,693,072
See Note 3 for projects financed through these leases.
Activity in net investment in financing leases was as follows:
$3,998,829
~914 ,313
$2,084,516
Year Ende:i
December 3 1 ,
1992 .1991
Beginning balance
Collected principal
Building additions
$2,084,516
(244,344)
852,900
Ending balance
$2,693,072
$2,292,527
(208,011)
$2,084,516
NOIE 5: NEI' INVES'IMENT ill FIXED ASSEI'S AND CDNSTRUCrION ill PR.C:GRESS
Net investment in fixed assets consists of the folla,.¡ing:
December 3 1 ,
1992 1991
FIXED ASSEI'S:
Lan::l
Buildings am improvements
Airfield and infrastnlcture
Equipment
$ 1,161,904
6,744,452
7,792,862
958,518
$ 1,148,648
6,576,844
7,435,276
956,002
Less-accumulated depreciation
16,657,736 16,116,770
(6,463,825) -12,735,658)
Net Fixed Assets
$10,193,911
$10,381,112
Total interest capitalized in 1992 and 1991 was 17 ,334 and zero,
respectively.
(30)
Activity in the fixed asset aax>unts for 1992 was as follows:
Land
Beginning balance $1,148,648
Additions 13,256
Ending bal ance
$1,161,904
Beg inning bal ance
Additions
Trans fer to
f inanc inJ 1 eases
Ending bal ance
Bui 1 ding and Airfield am
Imp rev emen ts Infrastnlcture EQtii pment
$6,576,844 $7,435,276 $956,002
167,608 357,586 2,516
$6,744,452 $7,792,862 $958,518
Constnlction in
Proqress
$ 81,167
744,399
(825,566)
$
0
NOI'E 6: RENTAL lliCU1E UNDER OPERATING lEASES
A significant ¡:x:>rtion of the operating revenue of the Authority is
generated through the leasing of airport and building space to airport
fixed base operators and others on a fixed fee as well as a continJent
rental basis. CMnership risks are retained by the Authority and,
aax>rdingly such leases are treated as operatinJ leases.
'Ihe follCMing is a schedule of minimum future rentals on noncancellable
operatinJ leases to be received in each of the next five years and
thereafter :
Years ended
D3cernber 3 1 ,
1993
1994
1995
1996
1997
Later years
Total
$
556,281
415,719
355,372
324,697
122,726
218,314
$1,993,109
(31)
D3CeIT1ber 31 ,
199~ 1991
NOIE 7: IDNG TERM OEm'
Building revenue lx>nds series 1984, originally
issued May 1, 1984, due in annual installments
increasing from $50,000 in 1992 and 1993 to $60,000
in 1994, plus interest at 80% of the base lerrling
rate of 'Ihe National Bank of America, Salina, Kansas.
$
110,000
$
160,000
Building revenue lx>nds series 1985, originally
issued December 1, 1985, due in annual installments
increasing from $110,000 for 1992 and 1993 to
$130,000 in 1995, plus interest at 80% of the base
lerrling rate of 'Ihe National Bank of America, Salina,
Kansas .
350,000
460,000
General obligation economic development lx>nds
series 1990A, originally issued July 1, 1990 due
in annual installments increasing from $45,000 in
1992 to $175,000 in 2010 plus interest ranging from
6.4% to 8.375%
1,810,000
1,855,000
General obligation economic development lx>nds
series 1990-B, originally issued October 1, 1990
due in annual installments increasing from $20,000
in 1992 to $70,000 in 2010 plus interest ranging
from 6.5% to 8.5%
735,000
755,000
Leasehold revenue lx>nds series 1991, originally
issued November 1, 1991, due in annual installments
increasing from $35,000 in 1992 to $90,000 in 2006
plus interest ranging from 5% to 7.25%
Total
Less current ma.turities
815,000 850,000
3,820,000 4,080,000
265,000 260,000
$3,555,000 $3,820,000
IDng-tenn debt, less current ma.turi ties
'!he proceeds of all of these lx>nd issues were used to purchase or
constnlct CCJll'Il1ErCial real property transferred under direct financing
leases. (See Note 4). The lx>nds are expected to be repaid from pro-
ceeds of the financing leases. One financing lease in the original
princiPal amount of $1,077,422 is in default. Bonds relating to the
defaulted lease are expected to be repaid from the proceeds from sale
of the building.
(32)
The annual bond principal for all bonds outstanding as of December 31,
1992, are as follows:
Payable in General Leasehold
Year Ended Obligation Revenue Revenue Interest
December 3 1 Bonds Bonds Bonds Payments Total
1993 $ 70,000 $160,000 $ 35,000 $ 265,525* $ 530,525
1994 80,000 170,000 40,000 246,600* 536,600
1995 85,000 130,000 40,000 225,769* 480,769
1996 90,000 45,000 207,219 342,219
1997 95,000 50,000 196,950 341,950
'Ihereafter 2,125,000 605,000 1.411.997 4,141.997
Total $2,545,000 $460,000 $815,000 $2,554,060 $6,374,060
*Interest on revenue bonds estima.ted at 7%
Activity in long term debts for 1992 was as follows:
Beg i.nnirq Bonds Pr inc i Pal Ending
Balance Issued Paid Balance
Building Revenue Bonds
Series 1984 $ 160,000 $ $ 50,000 C' 110,000
~)
Building Revenue Bonds
Series 1985 460,000 110,000 350,000
General Obligation Economic
Development Bonds
Series 1990-A 1,855,000 45,000 1,810,000
General Obligation Economic
Development Bonds
Series 1990-B 755,000 20,000 735,000
Leasehold Revenue Bonds
Series 1991 850,000 35,000 815,000
Totals $4,080,000 $ $260,000 ~;3, 820,000
(33)
NarE 8: DEFINED BENEFIT PENSION PIAN
Substantially all employees of the Salina Airport Authority participate
in the Kansas Public Employees Retirement System ("System"), a multiple
employer public employee cost sharing retirement system. 'Ihe payroll for
employees covered by the System for the years errled IE:::ernber 31, 1992 and
1991 was $321,923 and $333,207. 'Ihe total payroll was $334,685 and $345,249
respectively.
Substantially all employees of the Salina Airport Authority are eligible
to participate in the System after one year of employment. Employees who
retire at or after age 65 are entitled to a retirement benefit, payable
monthly for life, equal to 1 percent of their final average salary for
each year of "prior" service and 1. 25 to 1. 5 percent for each YEer of
"participating" service depending upon the m.nnber of years of service.
Final average salary is the employee I s average salary over the highest
four years of credited service. Benefits fully vest on reaching 10 years
of service. Vested employees nay retire at age 55 to 65 with 10 years of
credited service am receive reduced retirement benefits. 'Ihe System
also provides death am disability benefits. Benefits are established by
state statute.
Covered employees are required by state statute to contribute 4 percent
of their salary to the plan. 'Ihe employer is required by the same
statute to contribute the remaining amounts necessary to pay benefits
when due. 'Ihe contribution requirement for the years ended December 31,
1992 am 1991 was $20,848 and $23,469, which consisted of $6,041 and
$7,807 from the employer and $14,807 am $15,662 from employees
respectively; these contributions represented 6.50% am 7.00% of covered
payroll respectively.
'Ihe "pension benefit obligation" is a starrlardized disclosure measure
of the present value of pension benefits, adjusted for the effect of
projected salary increases and step-rate benefits, estimated to be
payable in the future as a result of employee service to date. 'Ihe
measure, which is the actuarial present value of credited projected
benefits, is intended to help users assess the System's funding status
on a going concern basis, assess p~s ma.de in accumulating
sufficient assets to pay benefits when due, and make comparisons among
Public Employee Retirement Systems and employers. 'Ihe System does not
make separate measurements of assets and pension benefit obligat~ion for
irrlividual employers. 'Ihe pension benefit obligation at JW1e 30,
1992 for the System as a whole, determined through an actuarial
valuation performed as of that date, was $4.08 billion. 'Ihe System's
net assets available for benefits on that date were $4.12 billion. Net
assets available for benefits exceeded the pension benefit obliçration
by $42 million. 'Ihe contribution of the Salina Airport Authority for
the period covered by this re¡:x:>rt represents .02% of total contribu-
tions required of all participating entities.
The ten-year historical trend infonnation showing the system I s progress
in accumulating sufficient assets to pay benefits when due is presented
in KPERS 1992 Comprehensive Armual Financial Re¡:x:>rt.
(34)
NarE 9: DEFERRED cx::l1PENSATI ON PIAN
'Ihe Authority offers its employees a deferred compensation plan formed
in aax>rdance with Internal Revenue Code Section 457. 'Ihe plan,
available to all employees, penni ts them to defer a portion of their
salary until future years. 'Ihe deferred compensation assets, which are
furrled currently with a third party trustee, are not available 1:0
employees until tennination, retirement, death or unforeseeable
emergency .
All anvunts of compensation deferred under the plan, all property and
rights purchased with those aIIDunts, and all incaræ attributablE:! to
those anvunts, property, or rights are (until paid or ma.de available to
the employee or other beneficiary) solely the property and rights of
the Authority, subject only to the claims of the Authority's general
creditors. Participants' rights under the plan are equal to those of
general creditors of the Authority in an aIIDunt equal to the fair
ma.rket value of the deferred aax>unt for each participant.
It is the opinion of the Authority's legal counsel that the Authority
has no liability for losses under the plan but does have the du1:y of
care that would be required of an ordinary prudent investor. 'Ihe
Authority believes that it is unlikely that it will use the asSE~ts to
satisfy the claims of general creditors in the future.
Authority payroll and contributions of employees electing to partici-
pate follows:
December 3 I ,
1992 1991
Authority's total payroll
Electing employees payroll
Electing employees contributions
$334,685
93,088
1,890
$345,249
81,934
7,760
'Ihe Authority offers no past employment benefits other than those
available through Kansas Public Employment Retirement.
NarE 10: RErArnED EARNINGS AND CDNI'RIBUITONS IN AID
Under the provisions of various bond agreements, certain assets are
restricted for specific uses (Note 3). Retained earnings which have
been reseJ::Ved relating to these restricted assets consist of the
following:
Reserved retained earnings
December 31,
1992 1991
$ 100,000 $ 100,000
100,000 100,000
6,500
206,500 200,000
6,033,112 6.209,154
$6,239,612 $6,409,154
Reserved retained earnings:
Bond reserves:
Revenue bonds-84
Revenue bonds-85
Leasehold bonds-91
UnreseJ::Ved retained earnings
Total retained earnings
Board designated restricted assets are not re¡:x:>rted as reserved retained
earnings .
(35)
O1anges in grants and contributions are summarized as follows:
Federal Aviation
Administration
Balance January 1, 1991
$4,734,570
1991 additions, AlP grants
29,430
Depreciation on property and equipment
acquired by government grants
(395,634)
Balance December 31 , 19 91
4,368,366
1992 additions, AlP grants
335,349
Depreciation on property and equipment
acquired by government grants
(399,989)
Bal ance December 3 1 , 19 9 2
$4,303,726
NOI'E 11: MAJOR aJS'KMERS
The Authority receives significant operating revenue from two
ma.nufacturers. Rentals from these two ma.nufacturers aggregated
approxima.tely 33% of operating revenue for the year errled
December 31, 1992.
NOI'E 12: NON-oPERATING lliCU>1E
Net non-operating income consisted of the following for the years
errled December 31, 1992 am 1991:
Total
1992 1991
$257,028 $222,135
53,100 64,790
310,128 286,925
50,000 50,000
227,909 214,140
6,153 3,915
284,062 268,055
$ 26,066 $ 18,870
Interest am invesbnent income
Finane ing 1 eases
Other interest
Interest expense
Revenue tonds
General obligation tonds
Amortization tom issue costs
Total
Net non-operating income
NOIE 13: ERROR CDRRECI'ION
The Authority did not provide an accrual of its vacation pay payable at
December 31, 1991. The adjusbnent to accrue vacation pay increases
1991 salaries expense am the liability for accrued salaries by $7,423
and reduces retained earnings the same amount.
(36)
THIS PAGE INrENTIONALLY IEFI' BlANK
SALINA AIRFORI' AUIHORITY
DETAIlED STATEMENTS OF OPERATIONS AND CEANGES
IN REI'AINED EARNINGS
January 1 to I:ecernber 31 ,
1992 1991
OPERATING REVENUES
Building rents
RaIrp rents
Larrl rents
Agri lam rents
Hangar rents
Tank fann rent
Fixed base operator
Larrling fees
Cormni ss ions -car rentals
Cormnissions-other
Other incorne
'IDI'AL OPERATING REVENUES
$ 665,579 $ 647,617
11,802 11,537
28,523 27,171
50,359 35,738
35,351 34,428
360 6,493
82,345 89,079
5,565 4,271
7,487 7,474
1,314 1,533
7,335 1, 995
896,020 867,336
OPERATING EXPENSES BEFORE DEPRECIATION
AI:MINISTRATIVE EXPENSES
Office salaries
Office supplies
Postage
Travel am meetings
Agri lam expense
Legal am accounting
Insurance
Engineering
IT CA tax
Kansas unemployment tax
Employees retirement
Telephone
Industrial development
Airport prorrotion
ProPerty taxes
Dles and subscriptions
Property appraisals
Other administrative expenses
Provision for bad debts
'IDI'AL AI:MINISTRATIVE EXPENSES
144,690 135,042
7,174 7,699
3,865 4,297
8,522 7,013
4,282
30,160 36,474
117,283 114,105
18,334 6,041
24,437 25,473
378 587
6,041 7,807
6,687 6,579
21,250 21,250
7,642 8,913
291 300
7,092 7,667
1,200 2,650
10,773 7,399
5,000
$ 415,819 ~08 , 578
(37)
MAINI'ENANCE EXPENSES
Maintenance salaries
Building ma.intenance
Airfield ma.intenance
Grourrls ma.intenance
Equipment gas, oil & repairs
utilities
Fire department expense
Agri lam expense
Other maintenance expenses
'IUI'AL MAINI'ENANCE EXPENSES
'IUI'AL OPERATING EXPENSES BEFDRE
DEPRECIATION
OPERATING EARNlliGS BEFDRE DEPRECIATION
DEPRECIATION EXPENSE
OPERATING LOSS
NON-oPERATING llic:ll1E (EXPENSE)
Interest income-capital leases
Interest income
Borrl interest-expense
Borrl issue costs
Amortization borrl costs
Interest on temporary notes
NET NON-oPERATING llic:ll1E (EXPENSE)
NET LOSS
ADD DEPRECIATION ON ASSEI'S A~ THROUGH
FEDERAL CDmRIIUI'IONS (Note 1)
lliCRFASE (DECREASE) lli REI'AINED EARNJNGS
REl'AINED EARNINGS, January 1
REI'AINED EARNlliGS, December 31
(38)
January 1 to December 31,
1992 J991
$ 190,518 $ 182,785
31,795 20,045
26,543 20,639
10,355 15,608
17,626 25,706
50,809 50,178
2,481 3,846
4,562
12,809 10,330
347,498 329,137
763,317 737,715
132,703 129,621
728,299 707,660
(595,596) ~)78 , 039)
257,028 222,135
53,100 64,790
(277,753) (256,920)
(650) ( 650)
(5,504) (3,265)
(156) (7 , 220)
26,065 18,870
(569,531) (559,169)
399,989 ]95,634
(169,542) (163,535)
6,409,154 ~)72 , 689
$ 6,239,612 $ 6,409,154
SALINA AIRFORI' AUlliORITY
CAPITAL EXPEND I'IURES
lAND
Engineering costs
'IOI'AL lAND
EÇUI FMENI'
staff vehicles
ConnTIunication equipment
Paving equipment
Office equipment
'IOI'AL EÇUIFMENI'
BUIIDINGS AND I:MPROVEMENTS
Irrlustrial paving
Kansas Army National Guard Armory
K-State lab addition (constnlction in progress)
AIM hanger
Beech parking lot
AIM parking lot
53,000 sq. ft. Mfg. Bldg.
Salina development center improvements
Terminal bldg. improvement
Schilling road
Salina Snack
'IOI'AL BUIIDlliGS
AIRFIEID AND INFRASTRU CIURE
AlP 11 Engineering
AlP 12 Runway protection zone
AlP 13 SUbdrain am vehicle
AlP 14 Airfield signage
'IOI'AL OIHER IMPROVEMENTS
'ID1'AL CAPITAL EXPEND I'IURES
(39)
January 1 to December 31,
1992 1991
$
~
13.256
13 . 256
22,162
2,453
200
2.316
11.653
2.516
36.268
5,839
451
744,399 81,167
95,341
28,675
1,000
(41,700)
18,893 203,478
4,767
118,589
7.450
912.007 356.342
9,256 32,700
20,452 18,193
322,317 11,364
5.561
357.586 62.257
$1,285,365 $ 454,867
SALINA AIRFORI' AUTHORITY
IDNΠOF JNDEBI'ELNESS
From Issue to ~ 31, 1992
Building Revenue Bonds
Series 1984
Building Revenue Bonds
Series 1985
General Obligation Economic
Development Bonds
Series 1990-A
General Obligation Economic
Development Bonds
Series 1990-B
Leasehold Revenue Bonds
Series 1991
original Principal outs"tarrling
Issue Paid Balance
$ 400,000 $ 290,000 $ :no, 000
900,000 550,000 350,000
1,900,000
90,000
1,810,000
773,000 38,000 735,000
850,000 35,000 815,000
$4,823,000 $1,003,000 $3,820,000
( 40)
SALlliA AIRFORI' AIJIHORITY
BUIIDlliG REVENUE IDNŒ-SERIES 1984
December 31, 1992
Date of Issue:
AIrount of Issue:
Interest Rate:
Maturity Date:
PrinciPal Paid:
OUtstarrling Balance:
May 1, 1984
$400,000
*
May 1, 1994
$290,000
$110,000
Schedule of Bond Principal Payments
IÅle in
Year
Bond
Principal
1993
1994
$ 50,000
60,000
$110,000
*'!he interest rate for each six month payment
will be eighty percent (80%) of the National
Bank of America, Salina, Kansas base lerrling
rate in effect on the beginning date of each
six lIDnth period.
( 41)
SALINA AIRfORI' AUIHORITY
BUIIDlliG REVENUE OONŒ)-SERIES 1985
December 31, 1992
Date of Issue
Amount of Issue
Interest Rate
Ma. tur i ty Date
Principal Paid
OUtstarrling Balance
January 17, 1986
$900,000
*
December 1, 199~)
$550,000
$350,000
Schedule of Bond PrinciPal Payments
Dùe in
Year
Bond
Principal
1993
1994
1995
$110,000
110,000
130,000
$350,000
*The interest rate for each six m:>nth payment
will be eighty percent (80%) of the National
B3.nk a f America, Sal ina , Kansas base 1 ending
rate in effect on the beginning date of each
six m::>nth pericxl.
(42)
SALINA ArnFDRI' AIJIHORITY
GENERAL OBLIGATION ECDNŒIC DEVEI.OFMENT OONDS
SERIES 1990-A
December 31, 1992
Date of Issue:
Am:>unt of Issue:
Interest Rate
Maturity Date:
PrinciPal Paid:
outstanding Balance :
July 1, 1990
$1,900,000
*
September 1, 2010
$90,000
$1,810,000
Schedule of Bond Principal Payments
IÅle in
Year
Bond
Principal
1993
1994
1995
1996
1997
'!hereafter
$
50,000
55,000
60,000
65,000
65,000
1, 515 . 000
$1,810,000
*'The interest rate varies from 8.375% to 6.4%
over the life of the bond issue.
(43)
SALINA AIRFORI' AUlliORITY
GENERAL OBLIGATION ECDNCMIC DEVEIDFMENT OONŒ
SERIES 1990-B
December 31, 1992
Da.te of Issue:
Amount of Issue:
Interest Rate:
Maturity Da.te:
Principal Paid:
Outstanding Balance :
October 1, 1990
$773,000
*
September 1, 2010
$38,000
$735,000
Schedule of Bond Principal Payments
Dle in
Year
Bond
Principal
1993
1994
1995
1996
1997
'!hereafter
$ 20,000
25,000
25,000
25,000
30,000
610,000
$735,000
*'!he interest rate varies from 8. 5% to 6. 5%
over the life of the rond issue.
( 44)
SALINA AIRFORI' AUlliORITY
IEASEHOLD REVENUE IDNŒ
SERIES 1991
December 31, 1992
Date of Issue:
Arrount of Issue:
Interest Rate:
Maturity Date:
PrinciPal Paid:
outstanding Balance :
November 1, 1991
$850,000
*
September 1, 2006
$35,000
$815,000
Schedule of Bond Principal Payments
Ole in
Year
Bond
Principal
1993
1994
1995
1996
1997
'!hereafter
$ 35,000
40,000
40,000
45,000
50,000
605,000
$815,000
'!he interest rate varies from 7.25% to 5%
over the life of the born issue.
( 45)
Workmen's Compensation
and Employer's Liability
CoITprehensi ve General
Liability
Rental Buildings-
Industrial
Airport Terminal am
Rental Buildings
Vehicles am Equipment
Public Employees
Blanket Bond
Public Officials and
Employees Liability
SALINA AIRroRI' AUIHORITY
lliSURANCE lli FDRCE
December 31, 1992
Type of Coveraqe
Bodily injury and
property damage
F ire and 1 i gh tning ,
exterrled coverage,
varrlalism and ma.licious
mischief-loss of rents
Fire and lightning,
exterrled coverage,
varrlal ism and ma.l i c i ous
mischief
Liability
Fhysical damage-equipment
Medical payments
uninsured motorists
Honesty blanket
position bond coverage
Errors & omissions
excluding asbestos, excluding
¡:x:>llution coverage on a
claims ma.de basis,
5,000 deductible
(46)
AIrount of
Coveraqe
$
500,000
500,000
1,566,824
4,423,000
500,000
569,380
2,000
500,000
100,000
500,000
SALINA AIRFORI' AUlliORITY
SCHEIULE OF FEDERAL ASSISTANCE
CATAI.CX; OF FEDERAL IXMESTIC ASSISTANCE NUMBER 20.106
For the year ended December 31, 1992
Prcqram Title
Federal 10
Number
Expenditures
D1r ing
Year
Amount
of Awards
OEPARIMENT OF TRANSFORl'ATION
Federal Aviation Administration 3-20-0072-11
Master plan up::la te
$
9,256
C'
"
Federal Aviation Administration 3-20-0072-12
. Runway protection' zone
20,452
35,416
Federal Aviation Administration 3-20-0072-13
SUbdra in and vehi c 1 e
322,317
299,933
Federal Aviation Administration 3-20-0072-14
Airfield signage
5,562
$357,587
~~335, 349
(47)
SALINA AIRFORI' AUlliORITY
<n1PARISON OF GROSS CASH BA.lANCES WI'IH DEIŒrIORY SEOJRITY
December 31, 1992
Bank IV National Bank
Salina, N.A. of America SUnflower Bank
GROSS CASH BA.lANCES
Dernarrl deposit
Cash in checkÏ.r¥J $ 131. 456 $1. 701. 169 $ 60,948
Time deposits
Certificates of
deposit 40,000 146,500 20,000
REIURŒASE AGREEMENTS 225,000
'IOI'AI.S 171.456 1. 847 , 669 305,948
LESS FDIC CDVERAGE 100,000 100,000 100,000
BA.lAN CES S Ea.JRABIE
BY CDLIATERAL 71,456 1,747,669 205,948
SEaJRITY ~
(100%) 71,456 1,747,669 205,948
SEQJRITY PROVIDED
BY DEIDSITORIES 2,985,288 2,000,000 540,712
AÞUJNr UNDERSEaJRED
BY STA'lUI'E $ $ $
(48)
December 31
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
SALINA AIRFORI' AUIHORITY
Last Ten Years
CAPITAL EXPENDTIURES
EQuipment
$ 41,127
46,386
189,397
48,267
39,427
9,618
94,524
17,489
36,268
2,516
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
Buildinq
$ 196,079
1,063,231
1,101,383
443,071
61,609
886,650
2,243,128
1,700,740
400,406
912,007
CDNrRIBUITON- FAA
$ 706,622
514,616
736,357
126,055
2,180,711
980,986
613,642
40,917
29,430
335,349
( 49)
land
$
195,000
345,058
130,590
13 , 258
Airfield
$
703,854
594,191
745,345
172,157
2,522,063
1,034,741
648,583
32,943
62,257
357,587
December 3 1
Rental
Revenue
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
$636,479
670,746
699,956
772,988
807,511
783,958
791,433
736,242
762,984
791,974
December 31
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
SALINA AIRFORI' AUI'HORITY
last Ten Years
OPERATlliG RECEIPTS
Fixed
Base
Operator
$ 57,649
69,211
77,907
85,050
87,352
96,133
106,432
127,765
89,079
82,345
SALINA AIRFüRI' AUI'HORITY
last Ten Years
OPERATlliG EXPENDI'IURES
Office &
Administrative
Expenses
$206,739
193,322
277,561
294,798
386,227
456,770
483,907
430,225
408,578
415,819
(50)
Landing
Fees
$21,865
7,722
16,731
6,302
5,988
28,702
5,913
7,599
4,271
5,565
Other
Operating
Receipts
$11,945
6,927
20,703
17,995
19,726
19,217
23,447
9,220
11,002
16,136
Ma j 11 tenance
Expenses
$245,543
269,048
313,518
284,918
364,978
326,346
336,117
338,936
329,137
347,498
SALINA AIRFORI' AUIHORITY
last Ten Years
December 3 1 Air Traffic Fuel Flowaqe Gallons J~lanernents
1983 70,410 1,152,986 7,241
1984 62,010 1,428,491 6,272
1985 51,560 1,767,135 6,520
1986 64,846 2,190,069 6,527
1987 60,678 2,547,120 7,965
1988 80,411 2,872,298 8,916
1989 79,068 2,890,341 9,463
1990 96,254 3,136,668 5,267
1991 83,372 2,681,605 4,760
1992 71,697 2,552,156 5,649
(51)
SAUNA AIRRRr AUIH:ffi'IY
~ 'lax Rltes
Dire:::t am. OIerlawinJ GJveITUrents
last 'Ten Years
CTIY OF SAUNA SALINE CIIJNIY
Fis::a1 Cþ:>.ratirg D:bt SeJ:vi.cE Total City Cþ:>.ratirg D:bt SeJ:vi.cE 'Ibtal Ch1nty
Year Millë:Q3 Mil~ Mil~ Millë:Q3 Millë:Q3 Mil~
1983 27.610 8.750 36.360 17.814 .342 18.156
1984 27.950 8.410 36.360 17.565 .591 18.156
1985 29.750 6.610 36.360 17 .917 .239 18.156
1986 28.620 7.740 36.360 20.466 .534 21. 000
1987 29.345 7.015 36.360 21. 000 21. 000
1988 29.513 6.847 36.360 21. 000 21. 000
1989 35.007 1. 353 36.360 23.460 23.460
1990 22.643 7.372 30.015 19.074 19.074
1991 26.357 3.671 30.028 20.122 20.122
1992 22.764 7.064 29.828 20.464 20.464
D.S.D. 305 SAUNA Allil-U<.l ' lÐIHRI'IY
Fis::a1 Cþ:>.ratirg D:bt SeJ:vi.cE Total T13D 3 05 Cþ:>.ratirg Total Airprt
Year ~ Mil~ Mill~ Millë:Q3 Mil~ !~ 'Ibtal
1983 55.640 2.410 58.050 3.000 3.000 4.680 120.246
1984 58.860 2.460 61.320 3.000 3.000 4.805 123 .641
1985 70.736 2.214 72.950 '5.674 133.140
1986 77.607 2.441 80.048 '5. 777 143.185
1987 79.779 2.094 81.873 '5.790 145.023
1988 84.023 4.756 88.779 6.487 152.626
1989 90.097 5.542 95.639 6.653 162.112
1990 72.065 4.427 76.492 !5 . 599 131.180
1991 76.378 3.094 79.472 '5.818 135.440
1992 80.343 3.029 83.372 6.074 139.738
SAUNA AIRRRr Ar.JIIffiI'IY
lR)F£RIY 'lAX CDilECI'ICNS
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
$310,086
345,800
73,278
36,445
227
(52)
SALINA AIRroRI' AUlliORITY
Demographic Ißta
Ten I.arqest Employers (City of Salina and Saline CountYl
Employer Name
Number of Employees
Tony's Pizza
Hllllips Lighting Co.
Beech Aircraft Corp .
Salina Public Schools
Asbury Regional Health Care Center
Exide Battery
st. John's Regional Hospital
City of Salina
Western Auto
Kansas state University-Salina
2,100
640
580
1,000
799
540
450
380
224
138
Population
Year
city of Salina
Sal ine County
1970
1980
1990
1992
37,714
41,843
42,303
42,841
46,592
48,905
49,301
49,400
Notes
1.
Employer data from the Salina Area Chamber of Commerce 1992 Economic
Profile.
2.
PoPulation data from the city of Salina Planning am Zoning Department and
the Saline County Clerk.
(53)
HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
EUGENE O. HARRISON, C.P.A.
THOMAS G. ARNETT. C.P.A.
719 EAST CRAWFORD. SALINA. KANSAS 67401
PHONE: (913) 827.7244
FAX: (913) 827.0048
JNDEPENDENT AUDI'IDR I S REFüRI' ON INTERNAL CDNTROL SIRUCIUHE REIATED
MATrERS NOl'ED ill A FJNANCIAL STATEMENT AUDIT CDNIJJerED
ill ACCDRDi\NCE WTIH GOVERNMENT AUDITING S'I'ANDARLS
To the Board of Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the financial statelœnts of Salina Airport lM:hority,
Salina, Kansas, as of arrl for the years ended Lecernber 31, 1992 and Lecernber
31, 1991, am have issued our re¡:x:>rt thereon dated March 26, 1993.
We corrlucted our audit in aax>rdance with generally accepted auditing
starrlards, the Kansas Minimum Standard Audit Proqram, Government: Auditinq
Standards, issued by the Comptroller General of the United States am the
provisions of Office of Management am Budget Circular A-U8, "Audits of state
am Local Goven-nœnts." '!hose starrlards arrl CI1B Circular A-128 require that we
plan am perfonn the audit to obtain reasonable assurance about whether the
financial statelœnts are free of material misstat.eIænt.
In planning am perfonning our audit of the financial statements of Salina
Airport Authority, Salina, Kansas, for the years ended Lecernber 31, 1992 and
December 31, 1991, we considered its internal control stnlcture in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial stat.eIænts am not to provide assurance on the internal control
stnlcture .
'!he management of Salina Airport Authority, Salina, Kansas, is res¡:x:>nsible
for establishin:J am maintaining an inten1al control stnlcture. In fulfilling
this res¡:x:>nsibility, esti1nates am judgrænts by management are required to
assess the ~ benefits arrl related costs of internal control stnlcture
¡:x:>licies arrl procedures. '!he objectives of an internal control structure are
to provide management with reasonable, but not absolute, assurance that assets
are safeguarded against loss from 1.lllauthorized use or disposition, arrl that
transactions are executed in aax>rdance with management's authorization am
recorded properly to permit the preparation of financial staterænts in
aax>rdance with generally accepted accounting principles. Because of inherent
limitations in any internal control stnlcture, errors or irregularities may
nevertheless occur am not be detected. Also, projection of any evaluation of
the stnlcture to future periods is subj ect to the risk that p:roo3dures ma.y
becaræ inadequate because of changes in corrlitions, or that the 4~ffectiveness
of the design arrl operation of ¡:x:>licies arrl procedures ma.y deteriorate.
MEMB¡(rB4I~
DIVISION FOR CPA FIRMS PRIVATE' CO;)'PANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CEcRTIFIED PUBLIC ACCOUNTANTS
For the purpose of this re¡:x:>rt, we have classified the significant internal
control stnlcture policies am procedures in the following categories:
l.
2.
3.
4.
Receipts
Purchases/disbursements
Cash am invesbnent balances
Financial re¡:x:>rting
For all of the internal control stnlcture categories listed above, we
obtained an urrlerstarrling of the design of relevant ¡:x:>licies am procedures and
whether they have been placed in operation, and we assessed control risk.
We noted certain ma.tters involving the internal control stnlc1:ure am its
operation that we consider to be reportable conditions urrler stan::lards
established by the American Institute of Certified Public Accountmts.
Reportable conditions involve ma.tters corning to our attention relating to
significant deficiencies in the design or operation of the internal control
stnlcture that, in our judgment, could adversely affect the entity's ability to
record, process, summarize, and re¡:x:>rt financial data consistent ,.¡ith the
assertions of ma.nagement in the general purpose financial statements.
DJe to sma.ll number of staff persons in the administrative office, the
Authority is not able to provide the segregation of duties cormnon in larger
organizations. .
A ma.terial weakness is a re¡:x:>rtable condition in which the design or
operation of the specific internal control stnlcture elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial stat.eIænts being audited
may occur am not be detected within a tÌ1nely period by employees in the nonnal
course of perfonning their assigned functions.
OUr consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be re¡:x:>rtable
conditions and, aax>rdingly, would not necessarily disclose all re¡:x:>rtable
conditions that are also considered to be material weaknesses as defined
above. However, we believe the re¡:x:>rtable condition described above is not a
material weakness.
'Ibis re¡:x:>rt is intended for the information of ma.nagement am the Board of
Directors. 'Ibis restriction is not intended to limit the distribution of this
report, which is a ma.tter of public record.
~f~
Sal ina , Kansas
March 26, 1993
(55)
HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
EUGENE O. HARRISON. C.f'A.
THOMAS G. ARNETT, C.P.A.
719 EAST CRAWFORD' SALINA. KANSAS 67401
PHONE: (913) 827.7244
FAX: (913) 827.0048
llIDEPENDENI' AIJDrIOR' S REFDRr ON CXMPLIANCE WI'llf IAWE3 AND
REŒJI.ATIONS BASED ON AN AUDIT OF FINANCIAL STATÐ1EN'IS
PERFORMED ill ACCDRDi\NCE WI'llf GOVERNMENI' AUDITlliG STANffiRŒ
To the Board of Directors
Sal ina Airport Authority
Sal ina , Kansas
We have audited the financial stat.eIænts of Salina Airport Authority,
Salina, Kansas, as of am for the years erx:led December 31, 1992 arrl December
31, 1991, am have issued our report thereon dated March 26, 1993.
We conducted our audit in aax>rdance with generally accepted auditing
starrlards, the Kansas Minimum Standard Audit ProGram, GoveTIImeI1t Auditinq
Standards, issued by the Comptroller General of the united States and the
provisions of Office of Management ani Budget Circular A-U8, "Audits of state
am Local Goverrnænts." '!hose starrlards am Œ1B Circular A-128 :require that we
plan am perform the audit to obtain reasonable assurance about ~I/hether the
financial statements are free of material misstat.eIænt.
Compliance with laws, regulations, contracts, am grants applicable to
Salina Airport Authority, Salina, Kansas, is the responsibility of Salina
Airport Authority, Salina, Kansas management. As part of obtaining reasonable
assurance alx:Jut whether the financial stat.eIænts are free of material
misstatement, we performed tests of the Authority's exnnpliance with certain
provisions of laws, regulations, contracts, am grants. Ha.vever,. the objective
of our audit of the financial stat.eIænts was not to provide an opinion on
overall compliance with such provisions. Accordingly, we do not express such
an opinion.
MEMBl§6Jf
DIVISION FOR CPA FIRMS PRIVAT~ CO~PANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
The results of our tests indicate that, with respect to the it:erns tested,
Salina Airport Authority, Salina, Kansas, complied, in all materÌéù respects,
with the provisions referred to in the preceding paragraph. With respect to
items not tested, nothing came to our attention that caused us to believe that
the Salina Air¡:x:>rt Authority had not complied, in all ma.terial respects, with
those provisions.
This re¡:x:>rt is intended for the information of ma.nagement and the Board of
Directors. This restriction is not intended to limit the distribution of this
re¡:x:>rt, which is a matter of public record.
7~~
Sal ina , Kansas
March 26, 1993
(57)
HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
- -----.--.-- ----
~------
_._-_.._-_.._--~
EUGENE O. HARRISON, c.PA.
THOMAS G. ARNETT, C.P.A.
119 feAST CRAWFORD. SALINA. KANSAS 674(J1
PHONE: (913) 827.7244
FAX: (913) 827-0048
INDEPENDENT AIJDrIOR' S REFüRI' ON SŒIEIXJIE OF
FEDERAL FINANCIAL ASSISTANΠ-
To the Board of Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the financial statements of Salina Airport Authority,
Salina, Kansas, for the years errled December 31, 1992 am December 31, 1991
and have issued our re¡:x:>rt thereon dated March 26, 1993. 'Ihese financial
stat.eIænts are the res¡:x:>nsibility of Salina Airport Authority, SëÙina, Kansas
management. our res¡:x:>nsibility is to express an opinion on these financial
stat.eIænts based on our audit.
We conducted our audit in aax>rdance with generally accepted auditing
starrlards , the Kansas Minimum Standard Audit Prcx:mm1 , Gove.ITII1lel1t Audit inq
Standards, issued by the Corrptroller General of the united States arrl the
provisions of Office of Management am Budget Circular A-128, "Audits of state
am I.Dcal Govel:11IIE1ts." 'Ihose starrlards am CI1B Circular A-128 require that we
plan am perform the audit to obtain reasonable assurance aOOut vlÌlether the
financial statements are free of ma.terial misstat.eIænt. An audit: includes
exaInÏninJ, on a test basis, evidence supporting the aIOCJlll1ts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used arrl significant estimates ma.de by management, as well as
evaluating the overall financial stateIœnt presentation. We believe that our
audit provides a reasonable basis for our opinion.
our audit was ma.de for the purpose of fanning an opinion on the financial
stat.eIænts of Salina AirPort Authority, Salina, Kansas, taken as a whole. '!he
aa::ornpanying schedule of federal financial assistance is presented for purposes
of additional analysis and is not a required part of the financiêù statements.
'Ihe information in that schedule has been subj ected to the audi tÜ1g procedures
applied in the audit of the financial stateIœnts and, in our opinion, is fairly
presented in all material respects in relation to the financial statements
taken as a whole.
~~f~
Sal ina , Kansas
March 26, 1993
MEM~S8-).
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMFRICAN INSTITUTE OF CeRTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CFRTlflED PUBLIC ACCOUNTANTS
HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
---- _.. ---- ------
---------~---
EUGENE O. HARRISON, c.rA
THOMAS G. ARNETT, C.rA.
719 EAST CRAWcORD . SALINA. KANS/\S £17401
PHONE: (913) 827.7244
FAX: (913) 827.0048
SillGIE AUDIT REroRI' ON 'mE INI'ERNAL CDNIROL
STRUCIURE USED ill AININISTERING FEDERAL FINANCIAL
ASSISI'ANCE PRCX;RAMS
To the Board of Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the financial statements of Salina Airport Authority,
Salina, Kansas, for the years ended December 31, 1992 and December 31, 1991
am have issued our re¡:x:>rt thereon dated March 26, 1993. We have also audited
Salina Airport Authority, Salina, Kansas, compliance with requirements
applicable to major federal financial assistance prcx:JraII1S am have issued our
re¡:x:>rt thereon dated March 26, 1993.
We corrlucted our audit in accordance with generally accepted auditing
starrlards, the Kansas MinÌJm.Im Standard Audit Proqram, Goverrnnent Auditinq
Standards, issued by the Comptroller General of the united states, am Office
of Managerænt and Budget(CMB) Circular A-128, "Audits of state aId Local
Goverrnnents. II Those starrlards am CMB Circular A-128 require thëlt we plan and
perform the audit to obtain reasonable assurance aOOut whether the financial
statements are free of material misstatement, and whether Salina Airport
Authority, Salina, Kansas complied with laws and regulations, noncompliance
with which would be material to a major federal financial assÌ5tëll1Ce prcgram.
In planning and performing our audit for the years ended December 31, 1992
and December 31, 1991 we considered the Authority's internal control stnlcture
in order to detennine our auditing procedures for the purpose of expressing our
opinion on the Authority's financial stat.eIænts and on its CCIlTpliance with
requirerænts applicable to ma.jor prcgrams not to provide assurance on the
internal control stnlcture. 'Ihis report addresses our considerat~ion of
internal control stnlcture ¡:x:>licies am procedures relevant to cxlITlpliance with
requirerænts applicable to federal financial assistance prcgrams. We have
addressed ¡:x:>licies am procedures relevant to our audit of the financial
statements in a separate re¡:x:>rt dated March 26, 1993.
'!he ma.nagerænt of Salina Airport Authority, is res¡:x:>nsible for establishing
am ma.intaining an internal control stnlcture. In fulfilling this
res¡:x:>nsibility, est.i1rates am judgrænts by ma.nagerænt are required to assess
the expected benefits am related costs of internal control stnlcture ¡:x:>licies
am procedures. The objectives of an internal control stnlcture are to provide
ma.nagerænt with reasonable, but not absolute, assurance that asse~ts are
safeguarded against loss from unauthorized use or dis¡:x:>sition, that
transactions are executed in accordance with managerænt' s authorization and
recorded proPerly to permit the preparation of financial statements in
aax>rdance with generally accepted accounting principles, am that federal
MEcMB~~~
DIVISION FOR CPA FIRMS PRIVAT~ l'ÓMPANIES PRACTICE SEcCTION
AMERICAN INSTITUTE OE CF RTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERT"IEO PUBLIC ACCOUNTANTS
financial assistance programs are ma.naged in compliance with applicable laws
and regulations. Because of ÌIù1erent limitations in any internal control
stnlcture, errors, irregularities, or instances of noncompliance ma.y
nevertheless occur am not be detected. Also, projection of any evaluation of
the stnlcture to future periods is subject to the risk that procedures may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation of ¡:x:>licies am procedures may deteriorate.
For the purpose of this re¡:x:>rt, we have classified the significant internal
control stnlcture ¡:x:>licies am procedures used in administering federal
financial assistance programs in the follo;ving categories:
Accounting Controls
1. Receipts
2 . Purd1ase/ disbursement
3 . Claims for reimbursement
Administrative Controls
1 . General Requirements
Political activity
Davis-B3.con Act
civil Rights
Federal financial re¡:x:>rts
Drug-Free Workplace Act
2. Eligibility
For all the internal control stnlcture categories listed above, we obtained
an understarrling of the design of relevant ¡:x:>licies and procedures am
detennined whether they have been placed in operation, and we assessed control
risk.
IÅlring the year ended December 31, 1992, Salina Airport Authority expended
100 percent of its total federal financial assistance under the follo;ving major
federal financial assistance program: Federal Aviation Administration, Airport
Development Prcgram.
We performed tests of controls, as required by a1B Circular þ,-128, to
evaluate the effectiveness of the design am operation of internal control
stnlcture ¡:x:>licies am procedures that we have considered relevant to
preventing or detecting material noncompliance with specific requirements,
general requireIœ.nts, am require:rœnts governing claims for advances and
reimbursements am amounts claimed or used for matching that are applicable to
the aforementioned ma.jor program. OUr procedures were less in scope than would
be necessary to render an opinion on these internal control structure ¡:x:>licies
am procedures. Accordingly, we do not express such an opinion.
(60)
We noted certain ma.tters involving the internal control stnlct:ure and its
operation that we consider to be re¡:x:>rtable conditions under standards
established by the American Institute of certified Public Aax>untmts.
Re¡:x:>rtable conditions involve ma.tters corning to our attention relating to
significant deficiencies in the design or operation of the internëù control
structure that, in our judgment, could adversely affect the Authority's ability
to administer federal financial assistance programs in accordance with
applicable laws am regulations.
IÅle to small numbers of staff persons in the administrative office, the
Authority is not able to provide the segregation of duties cormnon to larger
organizations.
A ma.terial weakness is a re¡:x:>rtable condition in which the design or
operation of one or more of the internal control stnlcture elemen1:s does not
reduce to a relatively lo.v level the risk that noncompliance with laws and
regulations that would be ma.terial to a federal financial assistance program
ma.y occur am not be detected within a timely period by employees in the normal
course of perfo:r:minJ their assigned functions.
OUr consideration of the internal control stnlcture would not necessarily
disclose all ma.tters in the internal control stnlcture that might be reportable
conditions am, aax>rdingly, would not necessarily disclose all reportable
conditions that are also considered to be ma.terial weaknesses as defined
above. However, we believe the re¡:x:>rtable condition described al:xJVe is not a
ma.terial weakness.
'!his re¡:x:>rt is intended for the information of ma.nagement am the Board of
Directors. '!his restriction is not intended to lilni t the distribution of this
re¡:x:>rt, which is a ma.tter of public record.
~~{~
Sal ina , Kansas
March 26, 1993
(61)
HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
EUGENE O. HARRISON, C.P.A.
THOMAS G. ARNETT, C.P.A.
719 EAST CRAWFORD. SALINA. KANSAS 67401
PHONE: (913) 827.7244
FAX: (913) 827.0048
JNDEPENDENl' AUDrIOR I S REFORI' ON ŒMPLIANCE
WI'IH '!HE GENERAL ~ APPLI CABIE 'ill
FEDERAL FlliANCIAL ASSISTANCE PRCGRAMS
To the Board a f Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the financial stat.eIænts of Salina Airport Authority,
Salina, Kansas, as of am for the years en::led December 31, 1992 ,3I1d December
31, 1991, am have issued our re¡:x:>rt thereon dated March 26, 1993.
We have applied procedures to test Salina Airport Authority, Salina,
Kansas, compliance with the following requirerænts applicable to each of its
federal financial assistance programs, the ma.jor program which is identified in
the schedule of federal financial assistance, for the year en::led December 31,
1992: ¡:x:>litical activity, lÈvis-Bacon Act, civil rights, cash management,
federal financial re¡:x:>rts, allowable costs, Drug-free Workplace Act,
administrative requirerænts.
OUr procedures were limited to the applicable procedures described in the
Office of Management and Budget's "Carrpliance SUpplement for Sinqle Audits of
state am Local Goverrnnents". OUr procedures were substantially less in scope
than an audit, the objective of which is the expression of an opinion on Salina
Airport Authority, Salina, Kansas, compliance with the requirerænts listed in
the preceding paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed
no material instances of noncompliance with the requirerænts listed in the
secooo paragraph of this report. With respect to items not testØ:1, nothirx]
CaIœ to our attention that caused us to believe that Salina AUp::)rt Authority,
Salina, Kansas, had not complied, in all ma.terial respects, with those
requirerænts .
'!his report is intended for the infonnation of ma.nagement aId the Board of
Directors. '!his restriction is not intended to limit the distribution of this
report, which is a ma.tter of public record.
7~ o/~
Sal ina , Kansas
March 26, 1993
MEMB'~
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOClfrY OF CERTIFIED PUBLIC ACCOUNTANTS
HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
EUGENE O. HARRISON, C.P.A.
THOMAS G. ARNETT, C.P.A.
719 EAST CRAWFORD' SALINA. KANSAS 67401
PHONE: (913) 827.7244
FAX: (913) 827.0048
JNDEPENDENl' AUDI'IDR' S REFORI' ON CXMPLIANCE WI'IH
SPECIFIC R:Ð;NIREMENTS APPLICABIE TO MAJOR FEDERAL
Fll-W{CIAL ASSISTANCE PRCGRAM TRANSACI'IONS
To the Board of Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the financial stat.eIænts of Salina Airport Authority,
Salina, Kansas, as of am for the years errled December 31, 1992 aoo December
31, 1991, arrl have issued our re¡:x:>rt thereon dated March 26, 1993.
We have also audited Salina Airport Authority, Salina, Kansas, compliance
with the requireIænts governing types of services allCMed or unallCMed;
eligibility; matching, level of effort, or eannarking; reporting; claims for
advances am reimburseræ.nts; am aITOunts claiID:::d or used for matching that are
applicable to each of its major federal financial assistance prcqrams, which
are identified in the accarnpanying schedule of federal financial assistance,
for the years erxled December 31, 1992 am December 31, 1991. '!he! ma.nagernent of
Salina Airport Authority, Salina, Kansas, is res¡:x:>nsible for the Salina Airport
Authority, Salina, Kansas, compliance with those requireIænts. Our
res¡:x:>nsibility is to express an opinion on compliance with those requireIænts
based on our audit.
We corrlucted our audit of compliance with those requireIænts in accordance
with generally accepted auditing standards, Kansas Minimum Standard Audit
Proqram, Government Auditinq standards, issued by the Comptroller General of
the united States, am Office of Managernent am Budget Circular A.-128, "Audits
of state am Local Governments." '!hose standards and CMB Circular A-128
require that we plan and perfonn the audit to obtain reasonable assurance about
whether material noncompliance with the requirerœnts referred to above
occurred. An audit includes examining, on a test basis, evidence about Salina
Airport Authority, Salina, Kansas, compliance with those requiren1ents. We
believe that our audit provides a reasonable basis for our opinion.
With respect to the items tested, the results of those procedures disclosed
no material instances of noncompliance with the requireIænts listed in the
preceding paragraph. With respect to items not tested, nothing caræ to our
attention that caused us to believe that Salina Airport Authority, Salina,
Kansas had not complied, in all material respects, with those requireIœnts.
Also, the results of our procedures did not disclose any ilmnaterial instances
of non-campliance with these requireIænts, as described in the accompanying
schedule of firrlings am questioned costs.
MEMB~c6D~
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
In our opinion, Salina Airport Authority, Salina, Kansas, complied, in all
material respects, with the requirements governing tyPes of services allowed or
unallowed; eligibility; ma.tching, level of effort, or eannarking; re¡:x:>rting;
claims for advances am reimburserænts; and amounts claimed or used for
matching that are applicable to each of its major federal financial assistance
programs for the years ended December 31, 1992 am December 31, 1991.
'Ihis re¡:x:>rt is intended for the info:mation of management ancl the Board of
Directors. 'Ihis restriction is not int.errled to limit the distribution of this
re¡:x:>rt, which is a matter of public record.
7~ ,,~
Sal ina , Kansas
March 26, 1993
(64)
SALINA AIRFORI' AUllIORITY
Sal ina , Kansas
SŒ1EIUIE OF INDEPENDENT AIJDrIOR I S FJNDINGS
Year Ended December 31, 1992
NONE
(65)