Audit Report - 1994
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
SALINA AIRPORT AUTHORITY
A Component Unit of the
City of Salina, Kansas
For the Fiscal Year Ended December 31,1994
Prepared by the Management
of the
Salina Airport Authority
SALINA AIRPORT AUTHORITY
TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 1994
INTRODUCTORY SECTION
Letter of Transmittal
Principal Officers
Authority Staff Members
Organizational Chart
Certificate of Achievement
Salina Municipal Airport Aerial View
Page
1
10
11
12
13
14
FINANCIAL SECTION
Independent Auditor's Report
15
Financial Statements:
Comparative Balance Sheets
Comparative Statements of Operations and Changes
in Retained Earnings
Comparative Statements of Cash Flows (Direct Method)
Reconciliation of Operating Loss to Net Cash Flows
from Operating Activities
Notes to Financial Statements, December 31, 1994 and 1993
17-18
19
20
21
22
Supplemental Information:
Schedules of Operations and Changes in Retained Earnings
Capital Expenditures
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
General Obligation Bonds - Series 1993A
General Obligation Bonds - Series 1993B
Insurance in Force
Schedule of Federal Assistance
Comparison of Gross Cash Balances with Depository Security
Schedule of Independent Auditor's Findings
38-39
40
41
42
43
44
45
46
47
48
49
50
STATISTICAL SECTION
Operating Revenue History
Operating Expense History
Federal Financial Assistance History
Capital Expenditure History
Revenue Bond Coverage
Principal Customers
Local Government Property Tax Rates, Direct & Overlapping
Property Tax Revenue
Air Traffic, Fuel Flowage, Enplanements Trends
Major Employers
Salina Population, Demographic and Labor Statistics
OTHER INDEPENDENT AUDITOR'S REPORTS
Independent Auditor's Report on Internal Control Structure
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
Independent Auditors's Report on Compliance Based on an Audit
of Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor's Report on Schedule of Federal
Financial Assistance
Independent Auditor's Report on the Internal Control Structure
Used in Administering Federal Financial Assistance Programs
Independent Auditor's Report on Compliance with the General
Requirements Applicable to Federal Financial Assistance Programs
Independent Auditor's Report on Compliance with Specific
Requirements Applicable to Major Federal Financial Assistance
Program Transactions.
II
Page
51
52
53
54
55
56
57
58
59
60
61
62
64
65
66
69
70
~ Salina Airport Autholrity
d.A.~ Salina Municipal Airport ¡Industrial Ce!nter
Chairman Vice-Chairman Secretary Treasurer Assistant Secretary i Treasurer
DOROTHY W LYNCH RICHARD A. RENFRO CHARLES STEVENS, JR. JOSEPH M. RITTER JAMES C. MAES
Executive Director: TIMOTHY F. ROGERS, A.A.E. Operations Director: DONALD C. KNEUBUHL Board Attorney: La. BENGTSON
May 4, 1995
Salina Airport Authority Board of Directors
3237 Arnold Ave.
Salina, KS 67401
To the Board of Directors of the Salina Airport Authority:
The Comprehensive Annual Financial Report of the Salina Airport Authority (the
"Authority") for the fiscal year ended December 31, 1994 is hereby submitted in
accordance with the Kansas Statutes Annotated (K.S.A. 27-324). As required by the
statute, the City of Salina will be furnished copies of the Authority's 1994 CAFR.
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 the Authority as measured by its
financial activity, and that all disclosures necessary to enable the reader to gain
maximum understanding are included in the report.
ORGANIZATION OF THE REPORT
The Authority applies the standards for preparation of local government financial reports
recommended by the Government Finance Officers of the United States and Canada
(GFOA). The Authority's 1994 Component Unit Financial Report is pres€mted in four
sections:
Introductory Section - contains this letter of transmittal, a list of the
Authority's principal officers, a listing of Authority staff members, an
organizational chart, the GFOA Certificate of Achievement for Excellence
in Financial Reporting for fiscal year 1993, and an aerial photo of the
Salina Municipal and Airport Industrial Center.
Financial Section - includes the independent auditor's report, the
Authority's 1994 financial statements and supplemental schedules.
Statistical Section - includes selected financial and demographic
information which highlights economic and demographic trends.
(1)
3237 ARNOLD. SALINA, KS 67401-8190. Off: (913) 827-3914. Fax: (913) 827-2221
Other Independent Auditor's Reports Section - includes reports
concerning the Authority's internal control structure, compliance with
Comptroller General of the United States government audit standards and
compliance with audit standards due to receipt of federal financial
assistance, reporting on the presentation of the schedule of fE!deral
financial assistance, reporting on the internal control structure used in
administering federal financial assistance programs, compliance with
general requirements applicable to federal financial assistance programs,
and compliance with specific requirements applicable to major federal
financial assistance program transactions.
REPORTING ENTITY
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 AF.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 thirteen employees manage and
operate the Salina Municipal Airport and the Salina Airport Industrial Center.
Based upon the degree of fiscal and oversight responsibility exercised by the Authority's
governing board, the Authority is considered a component unit of the City of Salina under
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 ~(ansas State
University - Salina Aeronautical Technology Department. The campus of K.-State Salina
is located adjacent to the airport. The K-State Salina Department of Aeronautical
Technology offers degrees in professional flight training.
(2)
/~" Salina Airport Authority
.d~.. ~ Salina Municipal Airport I Industrial Center
The Salina Airport Industrial Center is home for sixty-seven businesses and
organizations. Forty-seven of the businesses and organizations are tenants of the
Authority. One of the primary functions of the Authority is to facilitate tile continued
growth of jobs and payroll at the Airport 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 business and industry and the recruitment of new
business and industry.
ECONOMIC CONDITIONS AND OUTLOOK
Local Economy
The City of Salina has continued to demonstrate economic strength, as compared to
other regions of the nation and state. There are 90 manufacturer/processors in the
City/County area. Manufacturing employment is approximately 6,425. 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.
Overall, during 1994, the Salina/Saline County civilian labor force increased by
approximately 937 workers or 3.3% (28,549, to 29,486), retail sales incmased $93.4
million or 16.8% ($555.7 million to $649.1 million), and population increased by 262
residents or .52% (50,188 to 50,450). Salina's manufacturing base rEimains well-
entrenched and is experiencing steady growth. With the availability of a well-trained
labor force, the presence of higher education, and access to national transportation
systems, Salina is a good location for the expansion of existing business and industry
and the location of 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, retail trade, and manufacturing sectors account for the greater
share of economic activity. 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, 1994 businesses and organizations at the Airport and Airport
Industrial Center employed an estimated 4,683 employees. Over 72% of the total
number of employees live within the Salina city limits. Eleven percent of Airport
Industrial Center employees live within Saline County and 13% live outside Saline
County. Total payroll for 1994 was an estimated $107,675,257. In 1994 local purchases
by Airport and Airport Industrial Center businesses and organizations totaled an
estimated $50,923,727. In 1994 capital expenditures equalled $17,546,220. Less than
(3)
/~" Salina Airport Authority
d...", ~ Salina Municipal Airport I Industrial Center
45% of total business volume was local, which means that over 55% of the goods and
services produced by all businesses are exported outside of the City of Salina.
In 1994 the Airport and Airport Industrial Center attracted an estimated 45,438 visitors
whose average stay was 2.7 days. Airport and Airport Industrial Center visitors
expended an estimated $3,091,345 while in Salina.
Future Economic Outlook
The future economic outlook for both Salina and the Authority continues to look
favorable. Continued growth in service, retail and manufacturing sectors is expected.
The Salina Area Chamber of Commerce forecasts that approximately 750 new jobs will
be added to the economy during 1995. Airport Industrial Center businesses such as
Raytheon Aircraft Corporation, Tony's Pizza, Inc., Score Rite, Plains Environmental
Services, and Luminous Neon continue to work on facility expansion plans. These
expansions will result in additional jobs and payroll.
INITIATIVES AND DEVELOPMENT
Salina Municipal Airport
Completed installation of new airfield guidance signs in order to comply with
Federal Aviation Regulations Part 139.
Secured a $1,950,433 Federal Aviation Administration Airport Improvement
Program grant for Phase I of a multi-phased reconstruction of aircraft parking
apron at the Salina Municipal Airport. The grant funds 90% of the project costs.
Bucher, Willis & Ratliff of Salina is the project engineer.
Completed three phases of the rehabilitation of aviation fuels pumplhouse #305.
Completion of the rehabilitation during 1995 will enable the Authority and its
tenants to meet the December, 1998 deadline for upgrading underground fuel
storage tanks.
Adopted a Revised five year (1996-2000) preapplication for I=AA Airport
Improvement Program grant funds.
Salina Airport Industrial Center
Supported building expansions, new building construction, and manufacturing
expansions completed or started by the following firms:
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/~" Salina Airport Authority
4'.... ~ Salina Municipal Airport ¡Industrial Center
Haahjem North America, Inc.
Exide Battery
Plains Environmental Services
Mac Air Corporation
GeoCore Services, Inc.
Tony's Pizza Service, Inc.
Building lease
Building lease extension
Land lease
Terminal Building and hangar lease
Building improvements
Began demolition of Buildings #256
and #258 for futu re plant expansion.
Financial Affairs
Completed the transition to a new software package for accounting and financial
report preparation.
Adoption of a 1.90 mill levy to match federal funds for airfield improvements
($160,000) and development of an industrial center replat and secondary street
development plan ($183,184) in 1995.
Established new insured values for SAA buildings using a commercial building
cost gu ide.
Staff Accomplishments
Staff training was enhanced by the Airport News and Training Nenvork and the
continued use of interactive television training equipment and programs.
1994 Airport Certification Inspection by the Federal Aviation Administration with
no items of correction.
Environmental
Completed the removal of aviation fuels pumphouse #605 and 13 associated
underground storage tanks.
Completed the removal of aviation fuels pumphouse #602 and 14 associated
underground storage tanks.
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.
(5)
/&" Salina Airport Authority
d..", ~ Salina Municipal Airport 'Industrial Center
Management of the Authority is responsible for establishing and maintainin~ 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 is 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 of 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 16.3% from the previous year. The
increase in rental revenues is the result of increases in industrial building occupancy.
The Authority realized a full year's income on its lease with Exide Battery Corporation for
a manufacturing building located at 1655 Wall Street. The increase in fixed base
operator (F.B.O.) fees is due to higher than projected fuel sales by the Authority's two
F.B.O.'s. The increase in landing fees is due to increased flights by US Air Express and
commercial charter operators. Other operating revenues decreased since tile Authority
did not realize out of the ordinary income.
A summary of operating revenues follows:
Increase Percent
( Decrease) Increase
Operating Revenues 1994 1993 From 1993 (Decrease)
Rental revenues $975,011 $800,575 $174,436 21.8%
Fixed base operator 90,511 78,392 12,119 15.4%
Landing fees 10,982 7.616 3,366 44.2%
Other operating revenues 5.914 43.744 (37,830) (86.5%)
Total ~ $930.327 1Þ152.09t 16.3 %
(6)
/~" Salina Airport Authority
".¡...... ~ Salina Municipal Airport !Industrial Center
Expenses
Total operating expenses before depreciation increased 2.2%. Office and administrative
expenses increased 1.9% due to increases in office salaries, engineering, Ilealth and life
insurance, and industrial development expenses. Maintenance expenses increased 2.4%
due to increases in maintenance salaries, building maintenance, airfield maintenance,
equipment repairs, and utilities.
A summary of operating expenses follows:
Increase Percent
(Decrease) 11 ncrease
Operating Expenses .1illM. ~ From 1993 j'Decrease)
Office and Administration $467,803 $458,918 $8,885 1.9%
Maintenance 370.266 361 .4 1 2 8.854 2.4%
Total ~ ~ ~ 2.2%
FIDUCIARY OPERATIONS
In 1991 the Authority entered into an Interlocal Cooperative Agreement Witll 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 tile 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 $3,550,000 at December 31, 1994.
This debt consists of building revenue bonds, general obligation bonds, and leasehold
revenue bonds of the Authority. Maturities range from 1995 through 2010 and interest
rates range from 3.4% to 8.5%. Both principal and interest are payable from proceeds
of direct financing leases and the general revenues of the Authority. Details are shown
in Note 7: LONG-TERM DEBT.
CASH MANAGEMENT
All cash temporarily idle during 1994 was invested by the Executive Director of the
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/~" Salina Airport Authority
d..... ~ Salina Municipal Airport I Industrial Center
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 Kansas 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
wrongful 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
$4,835,800 of property insurance on airport commercial properties.
The Authority's commercial property insurance includes $1,635,446 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 insurancH in force at
December 31, 1994 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. All contractors and subcontractors
are required to submit evidence of insurance coverage naming the Salina Airport
Authority and the City of Salina as named additional insureds.
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 Program, the Government Auditory Standards issued by the Comptroller
General of the United States, and the provisions of the Office of ManalJement and
Budget Circular A-128, "Audits of State and Local Governments".
GFOA CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Salina
(8)
/~" Salina Airport Authority
,,¡.... ~ Salina Municipal Airport I Industrial Center
Airport Authority for its component unit financial report for the fiscal year ended
December 31, 1993. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local
government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial mport (CAFR),
whose contents conform to program standards. Such CAFR must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We; believe our
current report continues to conform to the Certificate of Achievement program
requirements, and we are submitting it to GFOA.
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 pmparation and
review of this report and is committed to responsible and progressive financial reporting.
Also acknowledged is the assistance of the Authority's auditor, Harrison & Arnett,
Chartered, Certified Public Accountants, Robert K. Biles, Director of Finance for the City
of Salina, Shirley J. Jacques, County Clerk for Saline County, and Gerald Cook,
President of the Salina Area Chamber of Commerce in the preparation of this report.
Respectfully submitted,
7~?~
Timothy F. Rogers, A.A.E.
Executive Director
Salina Airport Authority
cc:
The City of Salina Board of Commissioners
(9)
/~" Salina Airport Authority
.d'.... ~ Salina Municipal Airport I Industrial Center
SALINA AIRPORT AUTHORITY
PRINCIPAL OFFICERS AS OF DECEMBER 31. 1994
BOARD OF DIRECTORS
Bob E. Ott
Dorothy W. Lynch
Richard A. Renfro
Charles Stevens, Jr.
Joseph M. Ritter
Chairman
Vice-Chairman
Secretary
Treasurer
Asst. Secretary IT reasu rer
AUTHORITY'S COUNSEL
Larry O. Bengtson
Clark, Mize & Linville, Chartered
Salina, Kansas
AUTHORITY'S BOND COUNSEL
Gilmore & Bell
Kansas City, Missouri
AUTHORITY'S FINANCIAL ADVISOR
George K. Baum & Company
Kansas City, Missouri
AUTHORITY'S AUDITOR
Thomas G. Arnett
Harrison & Arnett, Chartered
Salina, Kansas
(10)
SALINA AIRPORT AUTHORITY
AUTHORITY STAFF MEMBERS
as of December 31.1994
ADMINISTRATION STAFF
Timothy F. Rogers, AA.E.
Donald C. Kneubuhl
Cathy Lentz
Shelli Swanson
Executive Director
Operations Director
Administrative Assistant
Secretary/Reception ist
OPERATIONS, MAINTENANCE, AIRCRAFT RESCUE & FIRE FIGHTING STAFF
John Banninger
Lore n Carleton
Kim Colby
Gary Hansen
Dale Mattison
David Nease
Rob Pejsha
Jason Pinnick
Supervisor
Operations, Maintenance & ARFF
Operations, Maintenance & ARFF
Operations, Maintenance & ARFF
Operations, Maintenance & ARFF
Operations, Maintenance & ARFF
Operations, Maintenance & ARFF
Operations, Maintenance & ARFF
TERMINAL BUILDING CUSTODIAL STAFF
Vachel Keaton
Francis Vestal
Custodian
Custodian
( 11 )
I--'
N
SALINA AIRPORT AUTHORITY
ORGANIZATIONAL CHART
As of December 31, 1994
SAA BOARD OF DIRECTORS
Bob E. Ott
Dorothy W. Lynch
Richard A. Renfro
Charles E. Stevens, Jr.
Joseph M. Ritter
3/89
3/91
7/92
3/93
3/93
- 2/28/95
- 2/28/97
- 2/28/97
- 2/28/96
- 2/28/96
EXECUTIVE DIRECTOR
Timothy F. Rogers, A.A.E.
DIRECTOR OF OPERATIONS
Donald Kneubuhl
Maintenance & Operations Supervisor
John Banninger
R. pejsha
D. Nease
R. Colby
D. Mattison
Administrative
Assistant
Cathy Lentz
Secretary
Shelli Swanson
Custodian
V. Keaton
L. Carleton
Custodian
F. Vestal
J. Pinnick
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Salina Airport Authority,
Kansas
For its Component Unit
Financial Report
for the Fiscal Year Ended
December 31, 1993
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose component unit financial
reports (CUFRs) achieve the highest
standards in government accounting
and financial reporting.
b-- ~~Q
President
jJfh/~
Executive Director
(13 )
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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
INDEPENDENT AIJDI'IDR' S REroRl'
To the Board of Directors
Salina Ab:port Authority
Sal ina , Kansas
We have audited the accompanying financial statements of the Salll1a Allport
Authority, a carrq:;x:>nent unit of the City of Salina, Salina, Kansas, as of
December 31, 1994 am December 31, 1993 am for the years then erxied as listed
in the table of contents. '!hese financial statements are the responsibility of
the Salina Ab:port Authority, Salina, Kansas, management. OUr responsibility
is to express an opinion on these financial statements based on our audit.
We comucted our audit in accordance with generally accepted audit:ing
st:an:3ards, am the Kansas Municipal Audit Guide, Govennnent Audi tinq Standards,
issued by the Camptroller General of the United States, am the provisions of
Office of Management am Budget Circular A-U8, "Audits of state am Iocal
Govennnents". '!hose st:an:3ards am œB Circular A-U8 require that we plan and
perfonn the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the annmts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
am significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Salina Airport
Authority, Salina, Kansas, as of December 31, 1994 and December 31, 1993, and
the results of its operations am its cash flows for the years then en:jed in
confonnity with generally accepted accounting principles.
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
(15)
our audit was conducted for the purpose of fornri..rg an opinion on the
financial statements taken as a whole. '!he suppleræntal infonnation listed in
the table of contents is presented for purpose of additional analysis am is
not a required part of the financial statements of the Salina Airport
Authority, Salina, Kansas. SUch infonnation has been subjected to thE:! auditirg
procedures applied in the examination of the financial statements am" in our
opinion, is fairly presented in all material respects in relation to the
financial statements taken as a whole.
~~~
Sal ina , Kansas
May 4, 1995
~~ CPA
Certified Public Accountant in charge
of and. actively engaged on this audit.
(16 )
(THIS PAGE INTENTIONALLY LEFT BLANK)
SALINA AIRroRl' AUIHORITY
<n-1PARATIVE BAIl\NCE SHEEI'S
ASSETS
aJRRENT ASSETS:
cash (Note 2 )
Accounts recei vahle-net of allowance for
uncollectible accounts of $1,000 and $1,000
respectively
Prepaid expenses
Notes receivahle-current portion
Total CUrrent Assets
RESTRICI'ED ASSETS: (Note 3)
cash and cash equivalents
Investment securities
Assets designated for deferred
compensation benefits
Total Restricted Assets
NEl' INVES'IMENT ill FINANClliG IEASES (Note 4)
NEl' INVES'IMENT ill FIXED ASSETS (Note 5)
OTHER ASSEl'S:
Bond issue aJSts, less accumulated
amortization of $21,050 and $15,525
respecti vel y
lDng-tenn notes receivable, less
current portion of $3,893 and $11,115
respectively
Total Other Assets
TOI'AL ASSETS
(continued)
December 31,
1994 199:!
$
$
787 j' 118
651,512
482
12,607
3,893
1j,024
23 j' 186
11,,115
668,494
822 ,,443
1,359,740 3,364,,177
60,000 100" 000
49,967 45,,116
1, 469 , 707 3 ,509,,293
2,408,665 2,570,,416
12,468,390 12,350.201
92,223 95f684
2.839
92,223 98.523
$17,107,479 $19,350,876
See notes to financial statements
(17)
SALrnA AIRroRr AI1IHORITY
CŒfi>ARATIVE BAIANCE SHEETS
LIABILITIES AND EXJUITY
aJRRENT LIABILITIES:
Acxx>unts payable-operations
Acxx>unts payable-capi tal
Aa::J:ued payroll am expenses
Deferred rent
Total CUrrent Liabilities
RES'IRICI'ED LIABILITIES:
Salina-KSU sales tax liability (Note 3)
Accn1ed interest payable
Deferred interest financing leases
CUrrent maturities of long-term debt
Deferred ccnrpensation payable
Total Restricted Liabilities
IDNG-'l'ERM LIABILITIES: (Note 7)
Bonds payable, less current maturities
'Ibtal Liabilities
Ð',¿UITY :
Contributed capital, Federal
Aviation Administration
Retained eanrings
Total Equity
'IDI'AL LIABILITIES AND EQUITY
December 31,
1994 1993
$ 9,395 $ 10,345
9,857 203,344
14,612 10,598
31. 360 :2,736
65,224 227,023
1,244,740 3,17B,681
81,280 79,299
78,634 80,170
305,000 350,000
49,967 4~¡. 116
1. 759,621 3,733:.266
3,550,000
3.855,000
5,374,845
7,815,289
4,301,825 4,394,851
7,430,809 7,140,736
11,732,634 11. 535,587
$17,107,479 $19,350 j' 876
See notes to financial statements
(18 )
SALINA .AIRroRl' AI1IHORI'IY
a:ffi>ARATIVE STA'.I.»ŒNI'S OF OPERATICNS AND æANGES
m REmINED FARNINGS
J aJ1UaIV 1 to December 31.
1994 199::~
0 PE:RA'.I'DiG REVENUES:
Rental revenues
Fixed base operator
I.arrling fees
Other operating revenues
$ 975,011
90,511
10,982
5.914
'Ibtal Operatirg Revenues
OPE:RA'.I'DiG EXPENSES BEFORE DEPRECIATION
Office am administration
Maintenance
1. 082.418
467,803
370.266
'Ibtal Operatirg Expenses Before
Depreciation
838.069
OPERATING lli<XME BEFORE DEPRECIATION
244,349
DEPRECIATION
619.820
OPERATING LOSS
(375.471)
NON-QPERATING lli<XME (EXPENSE):
Mill levy
Interest on investIœnts am
f inanc irg leases
Interest expense
301,829
272,885
(272.388)
Net Non-{)peratirg Income
302.326
NEI' LOSS
(73,145)
ADD DEPRECIATION ON ASSEI'S AQ'JJIRED 'IHRaJGH
FEDERAL CX:>NTRIHJI'IONS
363.218
lli~E (DECREASE) lli RETAlliED EARNINGS
290,073
REl'AmED EARNINGS, J anUaJ:Y 1
REl'AmED EARNlliGS, Decerober 31
7,140.736
$7,430,809
See notes to financial stateIænts
(19 )
$ 800,575
78,392
7,616
43.744
930.327
458,918
361.412
820.330
109,997
610.254
(500.257)
309,678
(267,017)
42.661
(457,596)
355.B07
(101,789)
7.242.525
$7,140,736
SALINA AIRroRl' AI1IHoRITY
a:ro> ARATIVE STATEMENIs OF CASH F'I.CMS
(DIRECr ME:lHOD)
CASH FlDWS rnct'1 OPERATING ACTIVITIEs:
Cash received from sales, carrunissions
fees arrl rents
Cash paid employees for seJ:Vices
Cash paid to suppliers for goods and seJ:Vices
Proceeds from sales tax (Note 3)
Cash paid to KSU-Salina project contractors
Net Cash Provided (Used) In
Operating Activities
January 1 to Dece!!!1ber 31,
1994 1993
$1,116,831
(346, 754)
(477,672)
(2,000,385)
(1, 707 ,980)
CASH FI.CMS rnct'1 CAPITAL AND REIATED FINANCING ACI'IVITIES:
Purchase of property, plant and equipment (953,438)
Proceeds from capital grants (FM) 270,191
Proceeds from property tax 301,829
130m issue costs (2, 064)
Proceeds from new borrowing
Principal payments on debt
Principal received on financing leases
Interest received on financing leases
Principal received on long-term notes
Interest paid
Net Cash Provided (Used) In Capital And
Related Financing Activities
CASH FlDWS FRCM INVESTING ACTIVITIEs:
Sale (purchase) of investments
Interest received
Net Cash Provided (Used)
In Investing Acti vi ties
illŒFASE (DEŒEASE) ill CASH & CASH
Ð',¿UIVAI.ENrs
CASH BAlANCE-January 1
CASH BAlANCE-December 31
CASH AND CASH Ð',¿UIVAI.ENrs
Nr END OF YEAR CDNSISTS OF:
Unrestricted cash
Restricted cash and cash equivalents
( continued)
(350,000)
178,446
243,108
10,061
(264,879)
(566,746)
40,000
94,686
$ 940,629
(343,745)
(483,758)
493,453
..(l¡756,536)
l.L.J49.957)
(236,001)
30,161
(16,093)
650,000
(:;:~65,000)
154,480
280,898
9,978
--Í2 63 , 489)
344,934
1,473,872
1'57,147
134 , 686 -h§.;3l,019
(2,140,040) 825,996
4 , 151, 292 3.325,299
$2,011,252 $4, l!:Ü, 295
$ 651,512
1, 359,740
$2,011,252
See notes to financial statements
(20)
$ 787,118
.....LJ..§4,177
$4,151,295
--
--
RECDNCILIATION OF OPERATJNG IDSS 'ID NEI'
CASH F'I.CMS FRCM OPERATJNG ACI'IVITIES
December 31,
1994 1993
OPERATING IDSS
$
(375,471)
$ (500,257)
ADJUS'IMENI'S RECDNCILING OPERATING IDSS
'IO NET' CASH PROVIDED BY OPERATING
ACrIVITIES :
Depreciation
Proceeds from sales tax (KSU)
Payments to contractors (KSU projects)
Basis of asset sold
NET' CASH PROVIDED BY OPERATING ACI'IVITIES
619,820 610,254
493:,453
(2,000,385) (1,756,536)
5,247 1.,294
542 8,546
(950) (4,604)
4,014 (2:,006)
10,579 (563)
28,624 462
$(1,707,980) $(1,149,957)
ŒJANGES IN ASSEl'S AND LIABILITIES:
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase ( decrease ) in accrued expenses
Decrease ( increase) in prepaid expense
Increase (decrease) in deferred rent
NONCASH CAPITAL TRANSACI'IONS
D.1ring 1994 the Authority junked equipment having a basis of $5,247 ani
traded equipment having a basis of $5,489. Dlring 1993 the Authority sold lam
having a basis of $1,294.
See notes to financial statements
( 21 )
SALINA AIRFORI' AU'IHORITY
NarES 'lU FINANCIAL S'l'ATlliENTS
December 31, 1994 arrl 1993
NOl'E 1 :
ORGANIZATION AND SUMMARY OF SIGNIFICANT A<XXXJNI'ING POLICIES
A. OR;ANIZATION - '!he Salina Airport Authority (the "Authority") is an
authority established by the City of Salina, pursuant to C1apter
27, Article 3, of the Kansas statutes Armotated. '!he Authority was
established for the pw:pose of acquiring surplus federal gove:J:nrœnt
property specifically the Schilling Air Force Base located near
the City of Salina. '!he Authority administers the airport,
conunercial development arrl rental of associated real estate.
B.
REFORI'ING ENTITY - '!he Authority's Board consists of five members
ap{X)inted by the city commission of the City of Salina.
Based upon the degree of fiscal arrl oversight responsibility
exercised by the Authority's Board, the Authority is considered a
component unit of the City of Salina under the criteria set forth
by the Governmental Accounting Standards Board (GAS B) Statement
No. 14.
In reaching the above conclusion, the Authority considered the
follCMing reporting entity definition criteria:
1.
Legally Separate Organization - 'Ihe Authority has its own
name, has the right to sue arrl be sued in its own name 'wi th-
out recourse to a state or local governmental unit arrl has
the right to buy, sell, lease arrl mortgage property in its
own name.
2.
Imposition Of Will - The City of Salina, although appoint-
ing all Board IneInbers, may not remove appointed IneInbers at
will, may not Irodify or approve the budget of the Authority,
may not Irodify or approve rates of fees charged, may no1:
veto, over:rule or Irodify the decisions of the Board arxi the
City does not have the ability to appoint, hire, reassiçJ11
or dismiss persons responsible for the day-to-day operai:ions
of the Authority.
Financial Benefit Or Burden - The City is not legally
entitled to arrl cannot othenvise access the resources of
the Authority nor is the City legally obligated to assume
the obligation to finance the deficits or provide financial
support to the Authority. The City is not obligated for the
debt of the Authority.
3.
(22)
4.
Financial Aa:::ountability - '!he Authority detennines its
budget without the city havirg the authority to approve or
m:xlify that budget.
K.S.A. 27-322 (a) provides that with the consent of the
City, the Authority may armuall y levy a tax not to exceE:rl
three mills on each dollar of assessed ~ible valuation
of the property of the City for the furtherance of the
purpose of the Authority. '!he Authority has levied 1.9 mills
which provided $301,829 which was used for capital ilrproveIæI1ts
in 1994.
K.S.A. 27-322 (b) provides that if the Authority is
required to provide matching furrls in order to qualify
for any federal or state grant relatirg to the develop-
IreI1t, improvement, operation of maintenance of the public
airport, and such funds are not otherwise available from
revenue of the airport facilities, the Authority may levy
a tax of not to exceed one mill for such pw:poses without
the consent of the governing body of the City. '!he
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 am general obligation boms with
the approval of the governing body of the City. Once the
approval of the City Conmlission is granted, the Authorit:y,
by resolution, issues its general obligation borns which
provides that the Authority will annually levy a tax
sufficient to pay the principal and interest on the borx:1s
as they becoræ due. The statute further provides that"
"The full faith and credit of the Authority
shall be pledged to the payment of the general
obligation bonds of the Authority, including
principal and interest, and the Authority shall
annually levy a tax on all taxable ~ible
property within the City, in addition to all
other levies authorized by law, in an aIOC>\.lllt
sufficient to pay the interest on and the
principal of the bonds as the saIæ become due."
C.
'Ihe Authority does not currently levy under this provision.
Bl\SIS OF AcaxJNITNG - The Authority consists of an enterprise f'urxi.
Enterprise furrls are classified as proprietary furrls by the GASB
and are accounted for usirg a total economic resource IæaSU1:'elTIEnt
focus . '!he enterprise fund is used to account for operations that
are financed and operated in a manner similar to private business
enterprises. '!he intent of the Board is that the costs of pro-
viding services on a continuing basis be recovered through user
fees and rents. '!he financial statements are prepared on the
accrual basis of accounting. Under the accrual basis, revenues are
recognized as earned and expenses as incurred.
(23)
D.
CASH AND CASH ~ - For the pw:pose of the comparative
statement of cash flO'iNS, the Authority cx>nsiders all highly
liquid investments (including restricted assets) with maturities
of three lOOnths or less when purchased to be cash equivalents.
At December 31, 1994 and 1993, cash equivalents, which are stated
at cost, include daily repurchase agreements.
INVES'IMENTS - Investments relating to the deferred compensation plan
are reported at market value. All other invesbnents are repc:>rted at
cost. '!he Authority's other investIœnts cx>nsist of Certificates of
Deposit.
E.
F.
PROPERI'Y AND ~FMENT - On September 9, 1966, the United states of
America pursuant to section 13 (g) of the SW:plus Property Act: of
1944, transferred certain portions of the Schilling Air FOrcE~ Base
to the Authority.
Property and equipment assumed by the Authority on September 9,
1966 is can-ied at fair market value at that date of $529,872
less accurnulated depreciation of $44,180. SUbsequent additions
to property and equipment are recorded at cost .
Maintenance and repairs are expensed as incurred. When properties
are disposed of, the related cost and accurnulated depreciation are
reIrKJVed from the respective accounts and any gain or loss on dis-
position is credited or charged to operations. Runways, taxhlays ,
parking areas, sewers and 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 thj:
estimated useful lives of the assets as follO'iNS:
Buildings and Improvements
InfrastnIcture Items
Equipment
Years
5-50
10-40
5-25
Depreciation applicable to certain property and equipment which
have been funded by or cx>ntributed to the Authority by the federal
government is charged against the respective capital grant equity
balance. 'Ibis charge is effected by transferring the applicable
depreciation from retained eanllngs and has no effect on income.
In accordance with Financial Accounting Standard Board Statement
No. 62, interest during constnIction periods, when significant., is
capitalized and included in the cost of property and net invesbnent
in financing leases. In 1993 and 1994 no interest was capitalized.
(24)
G.
00Nœ ISSUE Q)STS - Borrl issue CX>Sts are deferred and æoortized
using the straight-line method over the life of the borrls to \tJhich
it relates.
H.
CXI>1PENSATED ABSENCES - SUbstantially all full-tiIre employees
receive compensation for vacations, holidays, illness and certain
other qualifying absences. 'Ihe rn.nnber of days compensated for
various categories of absence is generally based on length of
service. Liabilities relating to these absences are reaJgI1ized
as incurred and included in accrued expenses. 'Ihe amount of
accrued vacation pay at December 31, 1994 and 1993 was $7,382
and $4,322 respectively.
CAPITAL GRAN!' FUNæ - Certain experrli tures for capital improve-
ments receive significant federal furrling through the Airport
Improvement Program (ArP) of the Federal Aviation Administration
(FAA). 'Ihe Authority funds the remaining balance of such e.xperrli-
tures. Capital furrling provided under goverrnænt grants is con-
sidered eæ:ned as the related approved capital improveIæI1t expen-
di tures are disbursed .
1.
J.
INVEN'IORY - 'Ihe Authority maintains no significant inventory of
office and maintenance supplies. 'Ihese items are expensed as pur-
chased and no inventory is recorded in these financial statements.
ALIDWANCE FOR UNCDLIECl'IBIE Acx:nJNIS - 'Ihe Authority calculates its
allowance for specific accounts using specific account analysis.
K.
L.
lEASES - 'Ihe Authority is a lessor under numerous lease agreements.
'Ihe leases are classified as operating leases, except for certain
special facility leases which are accounted for as direct financing
leases.
M.
TAXES - 'Ihe Authority is exempt from payment of federal and st3.te
income, property and certain other taxes. 'Ihe Authority is subj ect
to property tax on non airport use property acquired after 1990.
HJIX;EI'S - 'Ihe Authority is specifically exempt from Kansas Budq-et
law. 'Ihe Authority is not required to derocmstrate statutory OJrn-
pliance with its annual operating budget. Accordingly, budget:u:y
data is not included in the financial staterœnts.
N.
(25)
NŒ.'E 2: CASH , CASH Ð;¿UI\1AIENTS AND lliVES'IMENr SEaJRITIES
Cash, cash equivalents an:! invesbnent securities included in the c0m-
parative balance sheets exmsist of the following:
Cash arrl cash equivalents
CUrrent
Restricted
December 31 ,
1994 1993
'Ibtal cash arrl cash Equivalents
$ 651,512 $ 787,118
L 359.740 3.364.177
2,011,252 4,151,295
60,000 100,,000
49.967 45.116
Investment securities-restricted
Deferred compensation plan assets
'Ibtal cash, cash Equivalents arrl
Investment Securities
$2,121,219
$4,296,,411
Kansas statutes authorize the Authority to invest in United states
Obligations, secured repurchase agreements, certificates of deposit,
tbne deposits arrl open accounts.
'!he can:ying anx:>unt of deposits arrl investments securities by type~ of
investment are as follows:
Canvinq val ue~
December 31.
1994 199J
cash deposits
Certificates of deposit
'Ibtal Depos its
$2,011,252 $4,006,295
60.000 100.000
2,071,252 4,106,295
145,000
49.967 45.116
$2,121,219 $4,296,411
Repurchase agreements
Deferred compensation plan assets
Total Deposits arrl Investment Securities
(26)
reposits of the Authority with financial institutions are catagori~~ed
by credit risk as follows:
December 31
1994
earr.ying Bank
Value Balance
1993
earr.ying Bank
Value Balance
Cash on deposit
Insured by federal
deposit insurance
corporation
Collateralized with
securities held
by pledging
financial institution
in Authority's name 1.771.202
$ 300,000
$ 300,000
$ 300,000
1. 803 .690
3.806.245
2,071,202
2,103,690
4,106,245
Cash on hand
(petty cash)
50
50
$2,071,252
$4,106,295
$2,103,690
$ 300,000
3.809.887
4,109,887
$4,109,887
'!he Authority's deposits are entirely covered by federal depository
insurance or by collateral held by pledging financial institutions in
the Authority's name.
'!he Authority's invest:lœnts are categorized to give an in:tication of the
level of risk assumed by the entity. Catego:ty 1 includes investments
that are insured or registered, or' securities held by the Authority or
its agent in the Authority's name. Catego:ty 2 includes uninsured am
unregistered invest:lœnts for which the securities are held by the cnmter-
party's trust deparbnent or agent in the Authority's name. CategO1:Y 3
includes uninsured and unregistered invest:lœnts for which the secw~ities
are held by the counterparty or by its trust department or agent but not
in the Authority's name.
1
December 31. 1994
Catecrorv Carrying
2 3 Value
Repurchase agreements
secured by U. S .
Treasw:y or Federal
Agency Securities
$
$
$
$ -
$ -
$ -
$ -
Deferred compensation
plan invesbnents
49.967
$ 49,967
(27)
Market
Value
$
49.967
$ 49,967
1
December 31. 1993
Cateqorv Canying
2 3 Value
Market
Value
Repurchase agreements,
secured. by U. S .
Treasury or Federal
Agency Securities
$ -
$ -
$ - $145,000 $145.000 $145.000
$ - $145,000
45.116 45.116
$190,116 :?190 ,116
~ferred c:::cJITpenSation
plan investments
Investment yields range fram 3.0% to 4.5% at December 31, 1994 and mature
on various dates through June 30, 1995. Investment transactions made
during the years errled December 31, 1994 and 1993 were limited to the
classifications above.
NOI'E 3: RESTRICI'ED ASSETS
Restricted assets consists of the follCMing at December 31, 1994 ël1'rl 1993:
1994
Cash and
Cash Total Total
Ecmi val ents Investments 1994 1993
RESTRI CI'ED BY OOND
AGREEMENT:
130m reserves:
Revenue bonds-84 $ $ $ $ 100,000
Revenue bonds-85 30,000 60,000 90,000 90,000
leasehold bonds-91 85,000 85,000 95,496
INI'ERI.OCAL AGREEMENT
KSU / SALINA SAIES
TAX 1,244,740 1,244,740 3..178,681
DEFERRED a:ro:ŒNSATI ON
PIAN 49.967 49.967 45.116
$1,359,740 $ 109,967 $1,469,707 $3,509,293
All restricted amounts are held by the Authority except for assets in the
deferred c:::cJITpenSation plan which are held by the trustee of the plan.
(28)
Revenue 130005-1984 arrl1985:
'!he proceeds of the 1984 arrl 1985 revenue boOO5 were used to a:mstJ:uct
builcUn:Js that were leased to a manufacturing tenant of the Authority.
'!he leases are financing leases that transfer ownership of the buiJ.cii.ms
at the end of the lease. '!he borrl agreements established certain reserve
requirements which the Authority has met.
Leasehold Revenue 130005-1991:
'!he proceeds of the 1991 leasehold revenue bon::1s were used to const:ru.ct a
building that was leased to a state university. '!he lease is a financing
lease that transfers ownership at the end of the lease. '!he borrl êlgree¡œnt
established certain reserve requirements whid1 the Authority has Iœ~t.
Interlocal Sales Tax Agree¡œnt:
'!he Authority has entered into an Interlocal Cooperation Agreement with
the Kansas Board of Regents, a state agency of Kansas; Kansas state!
University, a state university; arrl the city of Salina. Urrler this:
agreement, the Authority receives from the City the proceeds from a 1/2
cent retailers sales tax, holds arrl invests these receipts arrl in
accordance with agreed procedures disburses these proceeds for improve-
IæI1ts to the KS(J-Salina campus.
'!he follCMÍIlg schedule summarizes the activity urrler this agreement~.
Year Ended DeceIOber 31
1994 1993 Prior Total
Account beginning balance $3,178,681 $4.326,565 $ ~
Receipts
Retail sales tax 493,453 4,546,498 5,,039,951
Interest 66,444 115 . 199 150,198 331,841
Total Receipts 66,444 608,652 4,696,696 5;,371,792
Disbursements
Residence hall (2,350) 802,350 800,000
South bounda1:y road 6,000 6,000
North bourrlary road 1,997 3,619 242,144 247,760
Main entrance 1,019 70,333 71,352
Infrastructure equipment 818,873 70,000 888,873
College center 1,193,911 233,497 46 1,427,454
Technical center (18.046) 646.051 57.608 685,613
Total Disbursements 2,000.385 1, 756,536 370,131 4,127,052
Account Balance $1,244,740 $3,178,681 $4,326,565 $1,244,740
'!he North Boundary Road arrl South Boundary Road improvements arrl an¥
dedicated utility improvements constructed with sales tax proceeds be-
came the property of the City. All other capital improvements or
capital equipment paid for with sales tax proceeds become the property
of the state of Kansas.
(29)
NOl'E 4: NEl' llNES'IMENT IN FINANCING IFA5ES
Net investment in financing leases consist of the following:
~31
1994 199Q
Minimum lease payments to be
received, net of bon::1 issue costs
Less : Unearned i.ncoræ
$4,581,101
2,172,436
Net investment in financing leases
$2,408,665
See Note 3 for projects financed through these leases.
Activity in net investment in financing leases was as follows:
$4,967,522
~7,106
$2,570,416
Year EOOed
~31,
1994 1993
Beginning balance
Collected principal
&lllding additions
EOOing balance
$2,570,416
(178,446)
16,695
$2,408,665
$2,693,072
(154,480)
31,824
$2,570,416
NOl'E 5: NEl' llNES'IMENT ill FIXED ASSErS AND CDNS'IRUCrION ill PR:X;RESs
Net invesbnent in fixed assets consists of the following:
~31,
1994 199:1
FIXED ASSErS:
land
&llldings and improvements
Airfield and infrastructure
Equipment
$ 2,206,748 $ 2,086,948
7,389,105 7,111,803
8,135,769 7,826,554
996,295 978,826
Less-accumulated depreciation
18,727,917
(6,259,527)
Net Fixed Assets
18,004,131
(5,653,930)
$12,468,390 $12,350,201
No interest was capitalized in 1994 or 1993.
(30)
Activity in the fixed asset acx:ounts for 1994 was as follows:
Builcli.n;J am Airfield am
I.arrl Improvements Infrastnlcture ~-pment
Beginning balance $2,086,948 $7,111,803 $7,826,554 $ 978,826
Additions 119,800 288,432 309,215 31,289
Disposals (11.130) __J13 ,820)
Errling balance $2,206,748 $7,389,105 $8,135,769 $ 996,295
NOl'E 6: RENTAL llicn.m UNDER OPERATING IEASES
A significant };X)rtion of the operating revenue of the Authority is
generated through the leasing of airport am builcli.n;J space to auport
fixed base operators arrl others on a fixed fee as well as a contir¥,:rent
rental basis. OWnership risks are retained by the Authority arrl,
accordingly such leases are treated as operating leases.
'!he followin:J is a schedule of minimum future rentals on noncancellable
operating leases to be received in each of the next five years am
thereafter :
Years ended
D=cernber 3 1 ,
1995
1996
1997
1998
1999
later years
$ 845,218
595,193
251,785
116,638
89,994
277,740
Total
$2,176,568
(31)
NOI'E 7: IDNG TERM DEB!'
Building revenue bonds series 1984, originally
issued May 1, 1984 , due in annual insta11me.nts
increasing fram $50,000 in 1992 and 1993 to $60,000
in 1994, plus interest at 80% of the base lerrling
rate of '!he National Bank of America, Salina, Kansas.
December 31.
1994 1993
$
$
60,000
Building revenue bonds series 1985, originally
issued December 1, 1985, due in annual installments
increasing fram $110,000 for 1992 and 1993 to
$130,000 in 1995, plus interest at 80% of the base
len::iing rate of '!he National Bank of America, Salina,
Kansas .
130,000
240,000
General obligation economic development bonds
series 1990A, originally issued July 1, 1990 due
in annual installments increasing fram $45,000 in
1992 to $175,000 in 2010 plus interest ranging fram
6.4% to 8.375%
1,705,000
1,760,000
General obligation economic development bonds
series 1990B, originally issued October 1, 1990
due in annual installments increasing fram $20,000
in 1992 to $70,000 in 2010 plus interest ranging
fram 6.5% to 8.5%
690,000
715,000
leasehold revenue bonds series 1991, originally
issued November 1, 1991, due in annual installments
increasing fram $35,000 in 1992 to $90,000 in 2006
plus interest ranging fram 5% to 7.25%
General obligation bonds series 1993A, originally
issued December 1, 1993, due in annual installments
increasing fram $35,000 in 1994 to $45,000 in 2003
plus interest at 3.4% to 5%
740,000
780,000
340,0001
375,000
General obligation bonds series 1993B, originally
issued December 1, 1993 due in annual installments
increasing fram $25,000 in 1994 to $35,000 in 2003
plus interest at 3.85% to 4.75%
250,000 275,000
3,855,000 4,205,000
305,000 350,000
$3,550,000 $3,855,000
Total
Less current maturities
IDng-tenn debt, less current maturities
'!he proceeds of all of bonds issued 1984 through 1991 were used to
purchase or construct conunercial real property transferred under direct
financing leases. (See Note 4). '!he bonds are ~ to be repaid fram
proceeds of the financing leases. One financing lease in the origb1éÙ
principal amount of $1,077,422 is in default. Bonds relating to thE~
defaulted lease are ~ to be repaid from the proceeds from sale
of the building or fram building rents.
(32)
'!he proceeds of the series 1993A bonds are to be used to finance irrprove-'
Iæ11ts to the Allport am the proceeds of the series 1993B borrls are to be
used to finance matching furrls for a Federal Aviation Administration grant.
'!he 1993A am 1993B series bonds are to be repaid from the general revenue
of the Authority.
'!he annual born principal for all bonds outstan:li.ng as of ~ 31, 1994,
are as follows:
Payable in General I.sasehold
Year Errled Obligation Revenue Revenue Interest
December 31 Bonds Bonds Bonds Pavments Total
1995 $ 135,000 $130,000 $ 40,000 $ 250,468* $ 555,468
1996 145,000 45,000 229,729 419,729
1997 155,000 50,000 216,772 421,772
1998 165,000 50,000 205,178 420,178
1999 180,000 55,000 193,055 428,055
'!hereafter 2,205,000 500,000 1. 079 , 015 3,784,015
Total $2,985,000 $130,000 $740,000 $2,174,217 $6,029,217
*Interest on revenue bonds estimated at 6.8%
'!he annual born interest for all bonds outstan:li.ng as of December 31, 1994,
are as follows:
Payable in General
Year Errled Obligation
Decelnber 31 Bonds
1995 $ 191,851
1996 182,251
1997 171,995
1998 163,475
1999 154,503
'!hereafter 927,040
Total $1,791,115
$ 8,840
I.sasehold Total
Revenue Interest
Bonds Pavments
$ 49,777 $ 250,468
47,478 229,729
44,777 216,772
41,703 205,178
38,552 193,055
151,975 1. 079 , 015
$374,262 $2,174,217
Revenue
Bonds .
$ 8,840
(33)
Activity in lCD] tenn debts for 1994 was as follows:
Beginning Borrls Principal ]ID:lin;J
Balance Issued Paid j3alance
Builciinq Revenue Bonds
Series 1984 $ 60,000 $ $ 60,000 $
Builciinq Revenue Bonds
Series 1985 240,000 110,000 130,000
General Obligation Economic
Developrænt Borrls
Series 199OA 1,760,000 55,000 1,705,000
General Obligation Economic
Development Borrls
Series 1990B 715,000 25,000 690,000
Leasehold Revenue Bonds
Series 1991 780,000 40,000 740,000
General Obligation Bonds
Series 1993A 375,000 35,000 340,000
General Obligation Bonds
Series 1993B 275,000 25,000 :250,000
Totals $4,205,000 $ $350,000 $3,855,000
(34)
NOI'E 8: DEFrnED BENEFIT PENSION PIAN
SUbstantially all employees of the Salina Airport Authority participate
in the Kansas Public Enployees Retirement System ("System"), a multiple
employer public employee cost sharÍD3' retirement system. '!he payroll for
employees covered by the System for the years errled J:)E>Œ>mher 31, 1994 am
1993 was $316,204 and $317,870. The total payroll was $350,768 am $344,195
respectively.
SUbstantially all employees of the Salina Airport Authority are eligible
to participate in the System after one year of employment. Enployees who
retire at or after age 65 or age 62 with ten years service credit or at any
age when years of service plus age equal 85 "points" are entitled to a
retirement benefit, payable monthly for life, equal to one percent of their
final average salary for each year of "prior" service am 1.75 percent for
each year of IlparticipatÍD3'" service. Final average salary is the employee's
average salary over the higher of four years of credited service, including
add-ons such as accrued sick leave and vacation leave or a three year average
without add-ons. For those hired July 1, 1993 or later, final average salary
is a three year average with no add-ons. Benefits fully vest on reac.hin:J ten
years of service. Vested employees may retire at age 55 and receive reduced
retirement benefits. '!he System also provides death am disability benefits.
Benefits are established by state statute.
Covered employees are required by state statute to contribute four percent
of their salary to the plan. '!he employer is required by the sæœ
statute to contribute the remaining amounts necessary to pay benefits
when due. '!he contribution requirelrent for the years errled December 31,
1994 am 1993 was $20,994 am $20,704, which consisted of $6,870 am
$5,926 from the employer am $14,124 and $14,778 from employees, respectively;
these contributions represented 2. 2 percent and four percent of covered
payroll respectively. Employer contribution required of all participatÍD3'
entities for the year errled June 30, 1994 was $117,581,813.
'!he "pension benefit obligation" is a standardized disclosure measure
of the present value of pension benefits, adjusted for the effects of
projected salary increases and step-rate benefits, estimated to be
payable in the future as a result of employee service to date. '!he
measure, which is the actuarial present value of credited projected
benefits, is interrled to help users assess the System's furrling status
on a goÍD3' concern basis, assess progress made in accumulatÍD3'
sufficient assets to pay benefits when due, and make comparisons aroc>m
Public Employee Retirement Systems and employers. '!he System does not
make separate n-easurerænts of assets and pension benefit obligation for
irxlividual employers. '!he pension benefit obligation at June 30,
1994 for the System as a whole, determined through an actuarial
valuation perfonned as of that date, was $6.42 billion. '!he System's
net assets available for benefits on that date (valued at market) were
estimated to be $5.04 billion, leaving an unfurrled pension benefit obligation
estimated at $1. 38 billion. '!he contribution of the Salina Airport Authority
for the period covered by this report represents. 01 percent of total
contributions required of all participatÍD3' entities.
'!he ten-year historical trend infonnation shCMing the System's progress
in accumulating sufficient assets to pay benefits when due is presented
in the System's June 30, 1994 Comprehensive Annual Financial Report.
(35)
NOl'E 9: DEFERRED (D.1PENSATION PIAN
'!he Authority offers its employees a deferred compensation plan fonæd
in accordance with Intenla1. Revenue Code Section 457. '!he plan,
available to all employees, permits them to defer a portion of their
sala:ry until future years. '!he deferred compensation assets, which are
furrled currently with a third party trustee, are not available to
employees until tennination, retirerænt, death or unforeseeable
emergency .
All amounts of compensation deferred urrler the plan, all property arrl
rights purchased with those amounts, arxi all i.ncaæ attributable to
those amounts, property, or rights are (until paid or made available to
the employee or other beneficia:ry) solely the property arxi rights of
the Authority, subj ect only to the clabns of the Authority's general
creditors. Participants' rights under the plan are equal to those of
general creditors of the Authority in an amount equal to the fair
market value of the deferred account 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 duty of
care that would be required of an ordi.na1:y prudent investor. '!he
Authority believes that it is unlikely that it will use the assets to
satisfy the clabns of general creditors in the future.
Authority payroll arxi contributions of employees electing to partici-
pate follo;vs:
December 3 I,
1994 1993
Authority's total payroll
Electing employees payroll
Electing employees contributions
$350,768
173,022
5,750
$344,195
170,107
2,950
'!he Authority offers no post employment benefits other than those
available through Kansas Public Employment Retirement.
Nom 10: REl'AINED EARNINGS AND CONTRIBUI'IONS IN AID
Under the provisions of various bond agreements, certain assets are
restricted for specific uses (Note 3). Retained earnings which have
been rese1:Ved relating to these restricted assets consist of the
following:
Reserved retained earnings:
Bond rese1:Ves:
Revenue boOOs-84
Revenue boOOs-85
Leasehold boOOs-91
December 31,
1994 1993
Reserved retained earnings
$ $ 100,000
90,000 90,000
85,000 95,496
175,000 285,496
7,255,809 6,855,240
$7,430,809 $7,140,736
Unreserved retained earnings
Total retained earnings
Board designated restricted assets are not reported as reseI:Ved retained
earnings .
(36)
O1anges in grants and contributions are SUIlUTIarized as follows:
Federal Aviation
Administration
Balance Janum:y 1, 1993
$4,720,497
1993 additions, AlP grants
30,161
Depreciation on property and equipment
acquired by government grants
(355,807)
Balance December 31, 1993
4,394,851
1994 additions, AlP grants
270,191
Depreciation on property and equipment
acquired by government grants
(363,217)
Balance December 31, 1994
$4,301,825
NOIE 11: MAJOR æS'KMERS
'!he Authority receives significant operating and capital lease revenue
from Schwan's Sales and Raytheon Aircraft Company (fonnerly Beech
Aircraft Corporation). Rentals from these two manufacturers aggregated
approximately 36% of operating and capital lease revenue for the y,ear
ended D=cernber 31, 1994.
NaI'E 12: NON-oPERATING INCX>ME
Net non-operating income consisted of the following for the years
ended D=cernber 31, 1994 and 1993:
Total
1994 1993
$ 301,829 $
244,643 286 j' 089
28,242 23,.589
574,714 309.678
68,300 81,411
198,563 180,181
5,525 5,425
272,388 267,017
$ 302,326 $ 42,661
Mill levy
Interest and investment income
Financing leases
other interest
Interest expense
Revenue bonds
General obligation bonds
Amortization bond issue costs
Total
Net non-operating income
(37)
(THIS PAGE INTENTIONALLY LEFT BLANK)
SALINA AIRroRl' AUlHORITY
SœEI:XJIES OF OPERATIONS AND æANGES
IN REI'AINED EARNINGS
January 1 to December 31,
1994 1993
OPERATING REVENUES
Building rents
Ra1rp rents
Iarrl rents
Agri lam rents
H'an;Jar rents
Tank fann rent
Fixed base operator
Larrlin:J fees
Conunissions-car rentals
Cammiss i ens -other
Other income
'lUl'AL 0 PERMING REVENUES
$ 832,084 $ 678,806
9,458 9,608
47,390 31,832
51,078 43,994
33,493 36,017
1,508 318
90,511 78,392
10,982 7,616
7,747 7,383
:;::,247
(1,833) 34,114
1, 082 ,418 930,327
OPERATING EXPENSES BEFORE DEPRECIATION
AI:r1INJ:S<mATI EXPENSES
Office salaries
Office supplies
Postage
Travel and Iœetings
Legal and accounting
Insurance-Property/liability
Insurance- Iædi cal
Engineering
FI CA tax
Kansas unemployment tax
Enployees retirement
Telephone
Irrlustrial development
Allport prarrotion
Property taxes
DJ.es and subscriptions
Property appraisals
Other administrative ~
150,303
6,737
4,675
9,981
36,190
62,872
44,260
12, 794
26,285
331
6,967
9,135
23,33;3
8,432
44,359
8,593
3,240
9,316
146,855
5,481
3,293
8,775
39,161
63,072
50,666
19,512
25,290
232
5,926
8,029
21.,250
5,,181
37,,894
8,,247
1,.200
8.854
'lUl'AL AI:MINISTRATIVE EXPENSES
$ 467,803
$
458,918
(38)
MAINTENANCE EXPENSES
Maintenance salaries
Building maintenance
Airfield maintenance
Groun:1s maintenance
Equipment gas, oil & repairs
Utilities
Fire deparbnent expense
Agri land expense
Other maintenance expenses
IDl'AL MAINTENANCE EXPENSES
IDl'AL OPERA'l'lliG EXPENSES BEFORE
DEPRECIATION
0 PERAT!NG EARNINGs BEFORE DEPRECIATION
DEPRECIATION EXPENSE
OPERATlliG IDSS
NON-<>PERAT!NG lliCQ.1E (EXPENSE)
Mill levy
Interest income-capital leases
Interest income
Borrl interest-expense
Borrl issue costs
Am:>rtization borrl costs
NEI' NON-<>PERA'l'lliG lliCQ.1E
NEI' IDSS
ADD DEPRECIATION ON ASSEl'S AWITREIJ THROUGH
FEDERAL (x)NI'RIBUI'IONS (Note 1)
lliCREASE (DECREASE) lli REI'AlliED EARN1NGS
RETAINED EARNINGS, January 1
RETAINED EARNINGS, IÆcember 31
(39)
January 1 to Decembex 31,
1994 1993
$ 200,465
47,253
34,471
3,936
26,017
41,052
4,279
12.793
370.266
838.069
244,349
619.820
(375.471)
301,829
244,644
28,242
(266,864 )
(5.525)
302.326
(73,145)
363.218
290,073
7.140.736
$7,430,809
$ 194,884
24,796
35,305
:2,863
2:2,981
67,025
1,654
401
11.503
361.412
820.330
109,997
610,254
(500.257)
286,089
23,589
(261,342)
(250)
(5.425)
42.661
(457,,596)
355,.807
(101,789)
7.242.525
$ 7,140,736
SALINA AIRroRI' AUlliORITY
CAPITAL EXPENDITURES
J anuarv 1 to December 31 ,
1994 1993
lAND
IIrprovements
$ 119,800
~~50, 279
'IDI'AL lAND
119,800
250,279
Ð;2UIFMENT
Communication equipment
Airfield equipment
Office equipment & remodel
4,160
27,129
12,017
5,668
3,088
'IDI'AL Ð;2UI FMENT
31.289
20,773
BJIIDINGS AND IMPROVEMENTS
2818 Scanlan
KASA
Paving
Bldg #1021
Roofing
Bldg #217
Purnphouse #305
53,000 sq. ft. Mfg. Bldg.
Bldg #500 roof
Tenninal bldg. improvement
unit D. IOC
Highway Patrol Building
Salina Vortex
2,500
3,389
5,546
137,186
20,577
32,360
91,429
38,286
4,470
4,302
22,987
9,480
18,698
'TOI'AL BUIIDINGS
288,432
102,778
CAPITAL lEASE ADDITIONS
16,695
31.824
AIRFIEID AND INFRAS'IRUCIURE
AlP 12 Runway protection zone
AlP 14 Airfield signage
AlP 15 Airfield parking
AlP 16
800
185,204
123,161
50
178
33,514
'TOI'AL OI'HER IMPROVEMENTS
309,215
33,692
'TOI'AL CAPITAL EXPENDI'IURES
$ 765,431
$ 439,346
(40)
SALINA AIRroRr AIJlHORITY
WIIDING REVENUE OONœ-SERIES 1985
December 31, 1994
Date of Issue:
Amount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
0Utst:an:ling Balance :
January 17, 1986
$900,000
*
December 1, 1995
$770,000
$130,000
Schedule of Bond Principal Payments
[Ue in
Year
Bond
Principal
1995
130,000
*'!he interest rate for each six IIDnth payment
will be eighty percent (80%) of the National
Bank 0 f America, Sa! ina , Kansas base 1 en::lirq
rate in effect on the beginning date of each
six IIDnth period.
( 41 )
SALINA .A1RroRr AUIHORITY
GENERAL OBLIGATION ECX:>N<:MIc DF..VEIDFMENl' 00NnS
SERIES 199OA
December 31, 1994
Date of Issue:
Anount of Issue:
Interest Rate
Maturity Date:
Principal Paid:
o.rt:stan:ling Balance:
July 1, 1990
$1,900,000
*
September 1, 2010
$195,000
$1,705,000
Schedule of Bond Principal Pavments
Dle in
Year
Bond
Principal
1995
1996
1997
1998
1999
'Ihereafter
$
60,000
65,000
65,000
75,000
80,000
1.360.000
$1,705,000
*'!he interest rate varies from 8.375% to 6.4%
over the life of the bond issue.
(42)
SALINA AmroRI' AU'lliORITY
GENERAL OBLIGATION ECX>N<:Hrc DEVErDFMENT 00Nr:6
SERIES 1990B
December 31, 1994
Date of Issue:
Annmt of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
OUtstanding Balance :
October 1, 1990
$773,000
*
September 1 , 2 0 1 0
$83,000
$690,000
Schedule of Bond Principal Pavments
Dle in
Year
Bond
Principal
1995
1996
1997
1998
1999
'!hereafter
$ 25,000
25,000
30,000
30,000
30,000
550,000
$690,000
*'!he interest rate varies from 8. 5% to 6. 5%
over the life of the bond issue.
(43)
SALINA AIRroRl' AUlHORITY
IEASEHOID REVENUE OONæ
SERIES 1991
December 31, 1994
Date of Issue:
A1rount of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
OUtstanding B:ùance:
November 1, 1991
$850,000
*
September 1 , 2 0 0 6
$110,000
$740,000
Schedule of Bond Principal Payments
DJe in
Year
Borrl
Principal
1995
1996
1997
1998
1999
'!hereafter
$ 40,000
45,000
50,000
50,000
55,000
500,000
$740,000
'!he interest rate varies from 7.25% to 5%
over the life of the bond issue.
(44)
SALINA AIRroRr AUlHORITY
GENERAL 0 BLI GATI ON 00Næ
SERIES 1993A
December 31, 1994
Date of Issue:
AnxJt.n1t of Issue:
Interest Rate:
Maturity Date:
Principal paid:
0Utstarxling Balance :
December 1, 1993
$375,000
3.4% to 5%
September I, 2 0 0 3
$35,000
$340,000
Schedule of Bond Principal Pavments
D..1e in
Year
Boni
Principal
1995
1996
1997
1998
1999
'!hereafter
$ 30,000
30,000
35,000
35,000
40,000
170,000
$340,000
(45)
SALINA AIRroRl' AU'lliORITY
GENERAL 0 BLI GAT! ON 00Nœ
SERIES 1993B
December 31, 1994
Date of Issue:
AnDtmt of Issue:
Interest Rate:
Maturity Date:
Principal Paid:
outstanding Balance :
December 1, 1993
$275,000
3.85% to 4.75%
S~ 1,2003
$25,000
$250,000
Schedule of Bond Principal Payments
lÅle in
Year
Bond
Principal
1995
1996
1997
1998
1999
'!hereafter
$ 20,000
25,000
25,000
25,000
30,000
125.000
$250,000
(46)
INSURANCE FOLICY
Workmen's Compensation
an:i Errployer's Liability
AiJ:port & Carrprehensi ve
General Liability
Carnrærcial Property
Boiler & MachineJ:y
Vehicles & Equipment
Public Errployees
Blanket Bond
Public Officials &
Errployees Liability
SALINA AIRFORI' AUlHORITY
INSURANCE IN FORCE
December 31, 1994
TYPE OF <X>VERAGE
Bodily Inj tn:y arrl
Property Damage
Hangar Keepers
Fire arrl Lightning,
extended coverage,
vandalism arrl malicious
mischief
IossofRents
Business Personal Prop.
Liability
Physical damage-equip.
Medical pay¡œnts
Uninsured IIDtorists
Honesty blanket
position bond coverage
Errors & omissions
excluding asbestos,
excluding pollution coverage
on a claims made basis,
5,000 deductible
(47)
AMJUNr OF
CXJVJ1:RAGE
$ 500,000
500,000
500,000
4,835,800
1,635,446
181,200
1,000,000
500,000
1,203,380
:~, 000
500,000
100,000
500,000
SALINA AIRFORr AI1IHORITY
SŒEI:UIE OF FEDERAL ASSISTANCE
CATALOG OF FEDERAL IX!vIESTIC ASSISTANCE NUMBER 20.106
For the year erXled December 31, 1994
Proqram T i tl e
Federal ID
Number
DEPARlMENT OF 'ffiANSroRI'ATION
Federal Aviation Administration 3-20-0072-12
Runway protection zone
Federal Aviation Administration 3-20-0072-14
Airfield signage
Federal Aviation Administration 3-20-0072-15
Airfield parking
Federal Aviation Administration 3-20-0072-16
(48)
Expen:li tures
rming
Year
Amount
of Awards
$ 800 $
185,203 174,780
123,162 9~) ,411
50 -
--
$309,215 $270,191
--
--
SALINA AIRroRl' AUlliORITY
<n1PARISON OF GRa3S CASH BAlANCES wrrn DEFQSI'IDRY SEaJRITY
December 31, 1994
Bank IV National Bank
Salina, N.A. of America SUnfl (Mer Bank
GROSS CASH BAlANCES
Dernan:l deposit
Cash in checking $ 693,200 $1,309,574 $ 40,916
Ti1æ deposits
Certificates of
deposit 40,000 20,000
'IOI'AIS 693.200 1.349.574 60, 91Ei
lESS FDIC OJVERAGE 100,000 100.000 100,0001
BAlANCES SEOJRABIE
BY (X)LIATERAL $ 593,200 $1,249,574 $
SEaJRITY RÐ';¿UIRED
(100%) 593,200 1,249,574
SEaJRITY PROVIDED
BY DEFOSI'roRIES 636.786 4.500.000 140.712
AMXJNr UNDERSEaJRED
BY STAWI'E $ $ $
(49)
SALINA AIRroRI' AUIHORITY
sal ina , Kansas
SæEIXJIE . OF INDEPENDENT AUDrIDR' S FINDINGS
Year Ended December 31, 1994
NONE
(50)
Salina Airport Authority
OPERATING REVENUE HISTORY
Ten Years Ended December 31 , 1994
Other Total
Fiscal Rental Fixed Base Landing Operating Operating
Year Revenue Operator Fees Receipts Revenue
1985 699,956 77,907 16,731 20,703 815,297
1986 772,988 85,050 6,302 17,995 882,335
1987 807,511 87,352 5,988 19,726 920,577
U1 1988 783,958 96,133 28,702 19,217 928,010
f-'
-
1989 791,433 106,432 5,913 23,447 927,225
1990 736,242 127,765 7,599 9,220 880,826
1991 762,984 89,079 4,271 11,002 867,336
1992 791,974 82,345 5,565 16,136 896,020
1993 800,575 78,392 7,616 43,744 930,327
1994 975,011 90,511 10,982 5,914 1,082,418
Source:
Salina Airport Authority Records
Salina Airport Authority
OPERATING EXPENSE HISTORY
Ten Years Ended December 31 , 1994
Office & Total
Administrative Maintenance Operating
Fiscal Year Expense Ex~ense Expense
1985 277,561 313,518 591,079
1986 294,798 284,918 579,716
1987 386,227 364,978 751,205
U1 1988 456,770 326,346 783,116
N
-
1989 483,907 336,117 820,024
1990 430,225 338,936 769,161
1991 408,578 329,137 737,715
1992 415,819 347,498 763,317
1993 458,918 361,412 820,330
1994 467,803 370,266 838,069
Source: Salina Airport Authority Records
Salina Airport Authority
FEDERAL FINANCIAL ASSISTANCE HISTORY
Ten Years Ended December 31,1994
n n._-._n.--nnn_-
Fiscal Year
Federal Aviation
Administration
Airport
I rTlQI..ove.menL Grall!
1985
736,357
1986
126,055
1987
2,180,711
1988
980,986
1989
613,642
1990
40,917
1991
29,430
1992
335,349
1993
30,162
1994
270,191
Source: Salina Airport Authority Records
(53)
Salina Airport Authority
CAPITAL EXPENDITURE HISTORY
Ten Years Ended December 31, 1994
Buildings &
Fiscal Capital Lease
Year ~uipment Additions
1985 189,397 1,101,383
1986 48,267 443,071
1987 39,427 61,609
1988 9,618 886,650
~
U1 1989 94,524 2,243,128
..,.
1990 17,489 1,700,740
1991 36,268 400,406
1992 2,516 803,418
1993 20,773 134,602
1994 31,289 305,127
Note:
Land
195,000
345,058
130,590
131,845
250,279
119,800
FRnRr::!1 Avi::!tinn Arlminictr~tif'\n nr,..,n+", f"n"" onol ,...,f ,...,;~f;,...,I"" ;~~-,...,. .,...,~,...,-¿-
-----.. ...-..-... '~"""'~"u."~,, ~'UI"v 'UII\..4 oJV/O VI allllC;IU II I IIJI UVt:IIIt:1 Il;:'
Source:
Salina Airport Authority Records
Total
Capital
Airfield Expenditures
745,345 2,231,125
172,157 1,008,553
2,522,063 2,623,099
1,034,741 1,931,009
648,583 2,986,235
32,943 1,881,762
62,257 498,931
357,586 1,295,365
33,692 439,346
309,215 765,431
Salina Airport Authority
REVENUE BOND COVERAGE
Ten Years Ended December 31, 1994
Fiscal Pledged Revenue Bond
Year Revenue Debt Service Coverage
1985 503,191 56,987 8.83
1986 594,313 191,046 3.11
1987 597,978 195,640 3.05
1988 416,188 192,203 2.16
lJ1
lJ1 1989 523,307 214,586 2.43
1990 409,915 211,780 1.93
1991 426,707 206,570 2.06
1992 531,761 286,024 1.86
1993 414,514 278,395 1.50
1994 421,554 280,578 1.50
Notes:
1. Revenues pledged to service Building Revenue Bonds, Series 1984
and Series 1985 and Leasehold Revenue Bonds, Series 1991
Source: Salina Airport Authority Records
Salina Airport Authority
PRINCIPAL CUSTOMERS
Year Ended December 31, 1994
GQIDPélny
Revenue
Schwan's Sales Enterprises, Inc.
$292,183
Raytheon Aircraft Company
244,083
Kansas State University - Salina
189,446
Exide Corporation
114,000
Soo Plastics, Inc.
108,600
Moore's Midway Aviation, Inc.
72,803
KASA FAB, Inc.
54,564
Flower Aviation of Kansas, Inc.
44,119
GeoCore Services, Inc.
27,333
Salina Vortex Corporation
18,994
Federal Aviation Administration
18,600
Palleton of Kansas, Inc.
17,618
M&K Carpet Warehouse & Decorating Center
16,778
Two Rivers Vending Company
13,200
Blick's Agri Farm Center, Inc.
13,000
Note:
Total of Operating Lease and Direct Finance Lease Revenue for
1994 was $1,503,972
Source: Salina Airport Authority Records
(56)
%of
Operating &
Direct Finance
Lease Bevenue
--------- ----- ----
19.4%
16.2%
12..6%
7.6%
7.:2%
4.13%
3.6%
2.9%
1.B%
1.~¡%
1.~~%
1.~~%
1.1%
1.0%
1.0%
Salina Airport Authority
LOCAL GOVERNMENT PROPERTY TAX RATES, DIRECT AND OVERLAPPING
Ten Years Ended December 31, 1994
Other
Unified Salina State Special
Fiscal Saline City of School Airport of Taxing
Year County Salina Dist. #305 Authority Kansas Districts Total
1985 18.156 36.360 72.950 - - 5.674 133.140
1986 21.000 36.360 80.048 - - 5.777 143.185
1987 21.000 36.360 81.873 - 5.790 145.023
1988 21.000 36.360 88.779 - 6.487 152.626
1989 23.460 36.360 95.639 - 6.653 162.112
~ ~
U1 1990 19.074 30.015 76.492 - 5.599 131.180
-..J
1991 20.122 30.028 79.472 5.818 135.440
1992 20.464 29.828 83.372 - 6.074 139.738
1993 24.562 29.461 40.685 1.900 1.5 5.121 103.229
1994 26.575 28.709 42.401 1.900 1.5 5.015 106.100
Note:
The Salina Airport Authority's 1994 mill levy will be available during calendar year 1995
and is budgeted for 1995.
Source: Q",linð (""""n+.. f"1~.I,
~....,,' ", '-'VUI "1 Vlvll\
Salina Airport Authority
PROPERTY TAX REVENUE
Ten Years Ended December 31,1994
Fiscal Year
Property Tax
Revenue
- --- -- --- .
1985
73,278
1986
36,445
1987
227
1988
0
1989
0
1990
0
1991
0
1992
0
1993
0
1994
301,829
Source: Salina Airport Authority Records
(58)
Salina Airport Authority
AIR TRAFFIC, FUEL FLOWAGE AND ENPLANEMENT TRENDS
Ten Years Ended December 31 , 1994
Fiscal Fuel Flowage
Year Air Traffic Gallons Enplanements
1985 51,560 1,767,135 7,353
1986 64,846 2,190,069 6,987
1987 60,678 2,547,120 8,721
1988 80,411 2,872,298 9,159
U1
'" 1989 79,068 2,890,341 1 0,252
1990 96,254 3,136,668 5,707
1991 83,372 2,681,605 5,391
1992 71,697 2,552,156 5,799
1993 66,144 2,126,230 5,591
1994 61,215 2,424,880 7,175
Source: Salina Airport Authority Records
Salina Airport Authority
MAJOR EMPLOYERS IN THE SALINA/SALINE COUNTY AREA
Major Private Employers
Com~ny
Approx. #
Empjoyees
C'\
0
Tony's Pizza
Great Plains Manufacturing
Asbury Regional Health Care Center
Exide Corporation
Phillips Lighting Co.
St. John's Regional Health Center
Raytheon Aircraft Corp.
Western Auto
Morrison Grain
Eldorado National, Inc.
KASNKASA Fab
2,100
1,100
843
610
590
575
519
260
200
166
102
Major Public Employers
Public Body
Approx. #
EmQtoyees
Unified School District #305
City of Salina
Kansas State University - Salina
1,000
658
150
Source: Salina Area Chamber of Commerce
Type of
Business
Frozen Foods Manufacturer
Farm Implements
Health Care
Battery Manufacturing
Fluorescent Lamp Manufacture
Health Care
Aircraft Sub-assemblies Manuf.
Warehouse Distribution
Agricultural Products
Medium & Small Shuttle Buses
Industrial Controls & Steel
Fabrication
Type of Public Body
School System
City Government
Engineering Technology College
Salina Airport Authority
SALINA POPULATION, DEMOGRAPHIC AND
LABOR STATISTICS
Population
Year
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
Source: Saline County Clerk
pe_m()grap!1ic~
Measure
Median Age
Average # Per Household
Number of Households
Median Effective Buying
Income by Household
Effective Buying Income
(000)
Çity j)JS~1 i na
Saline Countv
-- ----------------:1-
41 ,882
41 ,932
42,007
42,092
42,188
42,303
42,510
42,841
43,202
43,304
48,940
48,973
49,062
49,155
49,210
49,301
49,301
49,301
49,400
50,450
City of Salina Saline County
33.7 34.1
2.4 2.4
1 7,700 20,400
$28,622 $29,438
$624,244 $736,847
Source: Salina Area Chamber of Commerce
Labor
Year
1989
1990
1991
1992
1993
1994
Civilian
Labor Force
- - --
27,384
28,454
29,321
30,409
28,549
28,902
j; 1l~'-oye_cf
26,130
27,261
28,073
29,270
27,261
27,692
UJ'!~mpl()yeQ
1.250
1,193
1,248
1,139
1,288
1,210
Rate
4.6%
4.2%
4.3%
3.7%
4.5%
4.2%
Source: Salina Area Chamber of Commerce
(61 ì
(THIS PAGE INTENTIONALLY LEFT BLANK)
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
INDEPENDENT AUDI'roR' S REroRI' ON INTERNAL <X>NTROL STRUCIURE
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
rn ACCDRDANCE wrrn GOVERNMENI' AUDITING ~
To the Board of Directors
Salina Ahport Authority
Sal ina , Kansas
We have audited the financial statements of Salina Ahport Authority, a
component unit of the City of Salina, Salina, Kansas, as of and for the year
ended December 31, 1994 and have issued our report thereon dated May 4, 1995.
We conducted our audit in accordance with generally accepted audi t:ing
standards, the Kansas Municipal Audit Guide, Government Auditincr Standards,
issued by the Comptroller General of the United states and the provisions of
Office of Management and Budget Circular A-128, "Audits of State and IJxal
Governrœnts. " '!hose standards and a.m Circular A-128 require that we plan and
perfonn the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
'!he management of Salina Ahport Authority, a component unit of the City of
Salina, Salina Kansas, is responsible for establishing and maintaininc:r an
inte1:nal control structure. In fulfilling this responsibility, estimaltes and
judgments by management are required to assess the expected benefits am
related costs of internal control structure policies and 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 unauthorized use or disposition, and that transactions are e:xecuted
in accordance with management's authorization and recorded properly to permit
the preparation of general purpose financial statements in accordance with
generally accepted accounting principles. Because of inherent limitations in
any inte1:nal control structure, errors or irregularities may nevertheless occur
and not be detected. Also, projection of any evaluation of the structure to
future periods is subj ect to the risk that procedures may becaræ inadequate
because of changes in conditions or that the effectiveness of the desi'gn and
operation of policies and procedures may deteriorate.
In planning and perfonning our audit of the general purpose financial
statements of Salina AiJ::port Authority, for the year ended December 31, 1994,
we obtained an urrlerstarrling of the internal control structure. With:respect
to the internal control structure, we obtained an urrlerstarrling of the design
of relevant policies and procedures for the purpose of expressing our opinion
on the general purpose financial statements and not to provide an opinion on
the internal control structure. Accordingly, we do not express such an
opinion.
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
(62)
Our consideration of the i.ntemal control structure would not nec~essari1y
disclose all matters in the i.ntemal control st:J:ucture that might be material
weaknesses urrler starrlards established by the AIœrican Institute of Certified
Public Acx::ountants. A material weakness is a condition in which the design or
operation of one or IOC>re of the internal control st:J:ucture elen-ents does not
reduce to a relatively low level the risk that errors and irregulari t:ies in
amJUrlts that would be material in relation to the general purpose flllaI1Cial
statements bei.rg audited may occur and not be detected within a tilnely period
by employees in the nonnal course of performing their assigned ftmctions. We
noted no matters involvi.rg the internal control st:J:ucture and its opexation
that we consider to be material weaknesses as defined above.
However, we noted certain matters invol vi.rg the i.ntemal control st:J:ucture
and its operation that we have reported to the management of Salina Ab:port
Authority, in a separate letter dated May 4, 1995.
7~~
Sal ina , Kansas
May 4, 1995
(63)
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'()()48
INDEPENDENT AUDrroR' S REFORl' ON a:MPLIANCE B.Z\SED ON
AN AUDIT OF FINANCIAL STATEMENl'S PERroRMED m
ACOJRDANCE wrrn GOVERNMENT AUDITING s:rANIll\Rœ
'Ib the Board of Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the financial statements of Salina Airport Authority, a
component unit of the City of Salina, Salina, Kansas, as of ani for the year
ended Decernber 31, 1994 ani have issued our report thereon dated May 4, 1995.
We corrlucted our audit in accordance with generally accepted auditing
starrlard.s, the Kansas Munici?éll Audit Guide, Government Audi tinq Standards,
issued by the Cœptroller General of the united states ani the provisions of
Office of Management ani Budget Circular A-128, ttAudits of State ani IDCéÙ
Governments. tt '!hose starrlard.s ani CMB Circular A-l28 require that we plan ani
perfonn the audit to obtain reasonable assurance about whether the fll1anCial
stat:erænts are free of material misstatement.
Compliance with laws, regulations, contracts, ani grants applicable to
Salina Airport Authority, Salina, Kansas, is the responsibility of Salina
Airport Authority, Salina, Kansas management. As part of obtaining :rE~le
assurance about whether the financial statements are free of material
misstat:erænt, we perfonœd tests of the Authority's compliance with CE~in
provisions of laws, regulations, contracts, and grants. However, the objective
of our audit of the financial statements was not to provide an opinion on
overall compliance with such provisions. Accordingly, we do not exp:rE!SS such
an opinion.
'!he results of our tests disclosed no instances of non<::'OI!pliance that are
required to be reported under Government Auditing Starrlards.
'!his report is intended for the infonnation of management ani the Board of
Directors. '!his restriction is not intended to limit the distribution of this
report, which is a matter of public record.
~
~
Sal ina , Kansas
May 4, 1995
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY O( 6~TrIED 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
INDEPENDENT AUDITOR I S REroRl' ON SCHEI:XJI.E OF
FEDERAL FINANCIAL ASSISTANCE
'Ib the Board of Directors
Salina AiJ:port Authority
Sal ina , Kansas
We have audited the financial stateœnts of Salina AiJ:port Authority, a
component unit of the City of Salina, Salina, Kansas, for the year erded
Decernber 31, 1994 and have issued our report thereon dated May 4, 1995. 'Ihese
financial stateœnts are the responsibility of Salina AiJ:port Authori'ty,
Salina, Kansas managemant. OUr responsibility is to express an opinion on
these financial statements based on our audit.
We corrlucted our audit in accordance with generally accepted audi1t:irg
starrlards, the Kansas Municipal Audit Guide, Government Audi tineJ stan::Iards,
issued by the Comptroller General of the united States an:i the provisions of
Office of Managemant and Budget Circular A-12S, "Audits of State an:i ]J:x:::al
Goverrnnents. " 'll1ose starrlards an:i (!vffi Circular A-12S require that we plan an::l
perfo:nn the audit to obtain reasonable assurance about whether the financial
statements are free of material misstateœnt. An audit includes examining, on
a test basis, evidence supporting the ærounts an::l disclosures in the financial
stateœnts. :'ill audit also includes assessing the accountirg principlE~ used
an::l significant estinates made by management, as well as evaluating tile overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
OUr audit was made for the purpose of fornUng an opinion on the financial
statements of Salina Airport Authority, Salina, Kansas, taken as a whole. 'll1e
accampanying schedule of federal financial assistance is presented for purposes
of additional analysis an::l is not a required part of the financial statements.
'll1e ÍI1fo:rmation in that schedule has been subjected to the auditing procedures
applied in the audit of the financial statements an::l, in our opinion, is fairly
presented in all material respects in relation to the financial statelIlents
taken as a whole.
~~
Sal ina , Kansas
May 4, 1995
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
(65)
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
INDEPENDENT AUDITOR'S REroRI' ON '!HE INTERNAL CDN'ffiOL
STRUCIURE USED rn AI:MINISTERING FEDERAL FINANCIAL
ASSISTANCE PRO3RAMS
To the Board of Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the financial statements of Salina Allport Authority, a
carrponent unit of the city of Salina, Salina, Kansas, for the year en:::led
December 31, 1994 and have issued our report thereon dated May 4, 1995i.
We conducted our audit in accordance with generally accepted audit:ing
st.arrlards, the Kansas Municipal Audit Guide, Government Auditing Standards,
issued by the Cc:Inptroller General of the United states, and Office of
ManageIœI1t and Budget(a1B)Circu1ar A-128, "Audits of state and Local
Governments. " '!hose st.arrlards and a1B Circular A-l28 require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement and about whether the Salina
Airport Authority carrplied with laws and regulations, noncompliance with which
would be material to a major federal financial assistance program.
In planning and performing our audit for the year en:l.ed December 31, 1994,
we considered the Authority's internal control structure in order to detennine
our auditing procedures for the purpose of expressing our opinion on the
Authority's financial statements and on its compliance with requirerrents
applicable to major programs not to provide assurance on the internal control
structure. 'Ibis report addresses our consideration of internal control
structure policies and procedures relevant to compliance with requirements
applicable to federal financial assistance programs. We have addressej
internal control policies and procedures relevant to our audit of the financial
statements in a separate report dated May 4, 1995.
'!he manageIœI1t of Salina Airport Authority, is responsible for estililishing
and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess
the expected benefits and related costs of internal control structure policies
and procedures. '!he obj ecti ves of an internal control structure are to provide
manageIœI1t with reasonable, but not absolute, assurance that assets aD:~
safeguarded against loss from unauthorized use or disposition, that
transactions are executed in accordance with management's authorization and
recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles, and that fedE~
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
(66)
financial assistance programs are managed in compliance with applicilile laws
am regulations. Because of inherent limitations in any internal OJI1trol
structure, errors, irregularities, or instances of noI1COlTpliance ma.y
nevertheless occur am not be detected. Also, projection of any evaluation of
the structure to future periods is subj ect to the risk that procedures ma.y
bec::ane inadequate because of c.han;'es in con:litions or that the effec::tiveness of
the design am operation of policies am procedures ma.y deteriorate"
For the pm:pose of this report, we have classified the significant inten1al
control structure policies and procedures used in administering fedE~
financial assistance programs in the follCMing categories:
Accounting Controls
1. Receipts
2 . Purchase/disbursement
3 . Claims for reimbursement
Administrative Controls
1. General Requirements
Political activity
Davis-Bacon Act
Civil Rights
Federal financial reports
Drug-Free Workplace Act
2. Eligibility
For all the internal control structure categories listed above, ';.¡e obtained
an UIñerstanding of the design of relevant policies and procedures arrl
detennined whether they have been placed in operation, am we assess~ control
risk.
D.1ring the year ended December 31, 1994, Salina Airport Authority had no
ma.jor federal financial assistance programs am experrled 100 percent of its
total federal financial assistance UIñer the follCMing ma.jor federal financial
assistance program: Federal Aviation Administration, Airport Development
Program .
We perfonned tests of controls, as required by a.m Circular A-128, to
evaluate the effectiveness of the design and operation of internal cx>ntrol
structure policies and procedures that we have considered relevant to
preventing or detecting ma.terial noncompliance with specific requirements,
general requireIænts, and requirements gove:rning claims for advances am
reimburseIœnts and amounts cla.i1ned or used for ma.tchi.ng that are applicable to
the aforementioned ma.jor program. OUr procedures were less in scope than would
be necessa1:}' to render an opinion on these internal control st:nIcture~ policies
and procedures. Accordingly, we do not express sum an opinion.
(67)
We noted certain matters ÍIWolving the internal control structure an:} its
operation that we consider to be reportable conditions urrler starmrds
established by the American Institute of Certified Public Accountants.
Reportable conditions ÍIWolve matters coming to our attention relating to
significant deficiencies in the design or operation of the internal control
structure that, in our judgIœnt, could adversely affect the Authority's ability
to administer federal financial assistance programs in accordance with
applicable laws and regulations.
IÅ1e to small mnnbers of staff persons in the administrative office, the
Authority is not able to provide the segregation of duties conunon to larger
organizations.
A material weakness is a reportable condition in which the design or
operation of one or more of the internal control structure elements does not
reduce to a relatively low level the risk that noncompliance with la1NS an:}
regulations that would be material to a federal financial assistance program
may occur an:} not be detected within a ti1nely pericx:i by employees in the nonnal
course of performing their assigned functions.
OUr consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be reportable
conditions and, accordingly, would not necessarily disclose all reportable
conditions that are also considered to be material weaknesses as defined
above. However, we believe the reportable condition described above is not a
material weakness.
'!his report is intended for the infonnation of management and thE! Board of
Directors. 'lhis restriction is not intended to limit the distribution of this
report, which is a matter of public record.
~{~
Sal ina , Kansas
May 4, 1995
( 68)
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
llIDEPENDENT AUDI'roR t S REroRl' ON a:MPLIANCE
wrrn 'mE GENERAL ~ APPLICABlE 'IO
FEDERAL FlNANCIAL ASSISTANCE PRCGRAM5
To the Board of Directors
Salina Ai1:port Authority
Sal ina , Kansas
We have audited the financial statements of Salina Airport Authority, a
component unit of the City of Salina, Salina, Kansas, as of ani for the year
ended December 31, 1994 and have issued our report thereon dated May 4, 1995.
We have applied procedures to test Salina Ai1:port Authority, Salina,
Kansas, compliance with the following requireIœnts applicable to eadl of its
federal financial assistance programs, the nornnajor program which is identified
in the schedule of federal financial assistance, for the year en::led December
31, 1994: political activity, Davis-Bacon Act, civil rights, cash management,
federal financial reports, allowable costs, Drug-free Workplace Act,
administrative requirements.
D..1r procedures were limited to the applicable procedures descr1b:rl. in the
Office of Management and Budget t s "Compliance SUpplement for Single Audits of
state and Local Governments". OUr prcx::edures were substantially less in scope
than an aucli t , the abj ecti ve of which is the expression of an opinion on Salina
Airport Authority, Salina, Kansas, compliance with the requireIœnts listed in
the preceding paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures ctisclosed
no m3.terial instances of noI1COIIpliance with the requirements listed in the
secorrl paragraph of this report. With respect to items not tested, nothing
carne to our attention that caused us to believe that Salina Airport lillthority,
Salina, Kansas, had not complied, in all m3.terial respects, with those
requirements .
'!his report is intended for the information of management and thH Board of
Directors. '!his restriction is not intended to limit the distribution of this
report, which is a matter of public record.
{~
~
Sal ina , Kansas
May 4, 1995
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
(69)
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
INDEPENDENT' AUDI'roR' S REroRl' ON CX1MPLIANCE wrrn:
SPECIFIC RE:QUIR:EMENTS APPLICABLE 'l'O MAJOR FEDERAL
FlliANCIAL ASSISTANCE PROGRAM TRANSACrIONS
To the Board of Directors
Salina Airport Authority
Sal ina , Kansas
We have audited the financial statements of Salina Ai.1:port Authority, a
COlTJtX>nent unit of the City of Salina, Salina, Kansas, as of and for tile year
ended December 31, 1994 and have issued our report thereon dated May 4, 1995.
We have also audited Salina Ai.1:port Authority's compliance with the
requirements governing types of se1:Vices allowed or unallowed; eligibility;
matching, level of effort, or earmarking; reporting; clains for advances arrl
reiInbursements; and ærounts claimed or used for matdring that are applicable to
each of its major federal financial assistance programs, which are identified
in the accorrpanying Schedule of Federal Financial Assistance, for the year
ended December 31, 1994. '!he management of Salina Airport Authority, is
responsible for the Salina Airport Authority's compliance with those
requirements. OUr responsibility is to express an opinion on compliance with
those requirements based on our audit.
We conducted our audit of COIrpliance with those requirements in ao::::ordance
with generally accepted auditing standards, Kansas Municipal Audit Guide,
Govenmtent Auditinq Standards, issued by the ColTptroller General of thl= United
States; and Office of Management and Budget (CMB) Circular A-U8, "Audits of
state and I.ocal Govenmtents." '!hose standards and CMB Circular A-U8 :require
that we plan arrl perfonn the audit to obtain reasonable assurance abou1t whether
material nonCOIrpliance with the requirements referred to above occurred. An
audit includes examining, on a test basis, evidence about the Salina Ab:port
Authority's COIrpliance with those requirements. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, Salina Airport Authority, COIrplied, in all material
respects, with the requirements governing types of se1:Vices allowed or
unallowed; eligibility; matching, level of effort, or earmarking; reporting;
claÍ1ns for advances and reimbursements; and amounts claimed or used for
matching that are applicable to each of its major federal financial assistance
programs for the year ended December 31, 1994.
~¿~
Sal ina , Kansas
May 4, 1995
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
(70)
(THIS PAGE INTENTIONALLY LEFT BLANK)