Audit - 2017 1
' SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
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AUDITED FINANCIAL STATEMENTS
1 December 31, 2017
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' WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina, Kansas
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ISALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
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ITABLE OF CONTENTS
1 Page
Numbers
IIndependent Auditor's Report 1
IStatement of Financial Position 2
Statement of Activities 3
IStatement of Cash Flows 4
INotes to Financial Statements 5 - 6
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\Xida&
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CHARTERED accountants
. INDEPENDENT AUDITOR'S REPORT
Members
Salina Community Economic Development Organization
Salina, Kansas
We have audited the accompanying financial statements of Salina Community Economic Development
Organization (a nonprofit organization), which comprise the statement of financial position as of
December 31, 2017, and the related statements of activities and cash flows for the year then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
1 the design, implementation, and the maintenance of internalcontrol relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
I America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
I An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
• error. In making those risk assessments, the auditors considers internal control relevant to the entity's
I preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
' Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Salina Community Economic Development Organization as of December 31, 2017,
and the changes in its net assets and its cash flows for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Woods eh' Durham, Chtd.
WOODS & DURHAM, CHTD.
IJune 29, 2018 Certified Public Accountants
I1619 E. Iron Avenue • P.O. Box 1516 • Salina, Kansas 67402-1516 • Phone 785-825-5494
Fax 785-825-4450 • www.woodsanddurham.com
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1 SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
STATEMENT OF FINANCIAL POSITION
December 31, 2017
ASSETS
Current Assets
Cash S 252,766
Member contributions receivable - current 320,000
Prepaid health insurance 1,096
Total Current Assets 573,862
Property and Equipment
Furniture and equipment 4,510
Less: Accumulated depreciation (1,469)
Net Property and Equipment 3,041
aTOTAL ASSETS S 576,903
LIABILITIES AND NET ASSETS
Current Liabilities
Accounts payable S 1,838
Payroll liabilities 8,902
Deferred member contributions -current 320,000
Total Current Liabilities 330,740
TOTAL LIABILITIES 330,740
Net Assets
Unrestricted 246,163
TOTAL LIABILITIES AND NET ASSETS S 576,903
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See Independent Auditors'Report and Notes to Financial Statements.
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' SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
' STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2017
1 SUPPORT AND REVENUE
Private Support
' Member contributions S 320,000
Total Support and Revenue 320,000
1 Expenses
Program Services
Economic Development Expenses
Marketing event 24,354
Travel and meetings 19,780
' Payroll and benefits 171,720
Memberships 12,470
Contract services - strategic planning 21,750
Advertising and promotion 46,698
Other program services 2,082
Total Program Services 298,854
Supporting Services
Contract services 23,669
Payroll and benefits 13,942
Miscellaneous 1,755
' Training fee 2,185
Supplies 4,752
Telephone 3,470
Depreciation 1,397
Insurance 4,738
Total Supporting Services 55,908
Total Expenses 354,762
Change in Net Assets - Unrestricted (34,762)
Net Assets - Unrestricted - January 1, 2017 280,925
Net Assets - Unrestricted - December 31, 2017 S 246,163
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See Independent Auditors'Report and Notes to Financial Statements.
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SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
STATEMENT OF CASH FLOWS
December 31, 2017
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CASH FLOWS FROM OPERATING ACTIVITIES:
1 Decrease in Net Assets S (34,762)
ADJUSTMENTS TO RECONCILE CHANGE IN
1 NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation 1,397
1 (Increase) Decrease in:
Increase in Payroll Liabilities 5,375
(Decrease) Increase in:
1 Decrease in Accounts Payable (16,890)
Prepaid Health Insurance (1,096)
1 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (11,214)
CASH FLOWS FROM INVESTING ACTIVITIES
1 Purchase of equipment (1,915)
NET CASH USED BY INVESTING ACTIVITIES (1,915)
1 NET DECREASE IN CASH (47,891)
1 CASH - BEGINNING OF YEAR 300,657
CASH - END OF YEAR S 252,766
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1 See Independent Auditors'Report and Notes to Financial Statements.
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SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
' NOTES TO FINANCIAL STATEMENTS
December 31, 2017
' NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Salina Community Economic Development Organization was created by an agreement dated November
17, 2015, between the members: Saline County, Kansas, The Salina Airport Authority, The City of Salina,
' Kansas, and the Salina Area Chamber of Commerce, to be the community's primary economic development
entity. It is funded solely by member contributions on a three-year contractual basis.
Basis of Accounting -The Organization prepares its Financial Statements on the accrual basis of accounting,
which is a basis of accounting in compliance with generally approved accounting principles. Under this basis,
revenues are recorded when earned and expenses are recorded when they are incurred.
' Basis of Presentation - The Organization is required to report information regarding its financial position and
activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and
permanently restricted net assets. As of December 31, 2017, the entire balance of net assets is classified as
' Unrestricted Net Assets, as no restrictions have been placed on the net assets of the Organization.
Property and Equipment - The amount recorded as Property and Equipment represents equipment
purchased by the Salina Community Economic Development Organization and is recorded at cost.
Depreciation has been provided for those assets based upon the straight-line method over the useful life of the
assets. It is the policy of the Organization to capitalize equipment in excess of 51,000.
Cash and Cash Equivalents - Cash and Cash Equivalents includes all monies in the Organization's bank
account. Fair market value equals carrying amounts.
Use of Estimates - The preparation of financial statements requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from
those estimates.
' Income Taxes - The Salina Community Economic Development Organization is exempt from federal income
taxes under Section 501(c)(6) of the Internal Revenue Code, and is classified as "other than a private
foundation." Therefore, no provision for income taxes is reflected in these financial statements.
' Advertising Costs - Advertising and promotional costs are charged to expense as incurred. During the year,
the Organization spent S46,698 for advertising and promotional expense.
' Fair Value of Financial Instruments - The amounts reported on the Statement of Financial Position for
member contributions receivable, accounts payable and payroll and other liabilities, are reported at actual
value, which is considered to be fair value, due to the short-term nature of these financial instruments.
NOTE 2 - SUPPORT - MEMBER CONTRIBUTION
The funding for the Organization is based upon scheduled member contributions over a three-year funding
model beginning in 2016. A new funding schedule for 2019-2021 is under negotiation.
The current funding schedule is as follows:
2018
' City of Salina S 250,000
Saline County 20,000
Salina Airport Authority 50,000
S 320,000
The Organization considers these contribution receivables as fully collectible, so, accordingly, no allowance for
' uncollectibility is recorded.
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SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
NOTE 3 - CONCENTRATION OF CREDIT RISK
As of December 31, 2017, and for certain periods prior to year-end, the cash balance of the Organization
' exceeded the FDIC account limits at the banking institution.
NOTE 4 - UNCERTAIN INCOME TAX POSITION
The Organization follows the provision of uncertain tax positions as addressed in FASB Accounting Standards.
The Organization believes that it has appropriate support for any tax position taken, and as such, does not have
any uncertain tax positions that are material to the financial statements. The Organization recognizes interest
accrued related to unreconciled tax benefits in interest expense and penalties in operating expenses. No such
interest or penalties were recognized during the period presented.
The Organization files a Federal Exempt Organization Income Tax Return (Form 990). The Organization is not
■ subject to the statute of limitations for tax examinations by tax authorities because it has not been in operation
® for greater than three years. Accordingly, the December 31, 2017 and 2016 Forms 990 could be subject to IRS
examination.
NOTE 5 - COMPENSATED ABSENCES
Employees are not permitted to carry over unused vacation or illness allowances. Accordingly, no accrual for
such is included in these financial statements.
NOTE 6 - FUNCTIONAL ALLOCATION OF EXPENSES
The costs of providing the various programs and activities have been summarized on a functional basis in the
Statement of Activities. Accordingly, certain costs have been allocated among the programs and supporting
services benefited.
NOTE 7 - SUBSEQUENT EVENTS
Management has evaluated subsequent events through June 29, 2018, the date on which these financial
statements were available to be issued. Management concluded that there were no material subsequent
events or transactions that required additional disclosure in these financial statements.
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