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Audit - 1960 SALINA-SALINE COUNTY JOINT BOARD OF HEALTH Salina, Kansas REPORT ON EXAMINATION December 31, 1961 KENNEDY AND COE Certified Public Accountants Salina - Kansas EXHIBIT "A" EXHIBIT "B" SALINA- SALINE COUNTY JOINT BOARD OF HEALTH Salina, Kansas INDEX COMMENTS........................ COMPARISON OF RECEIPTS, DISBURSEMENTS, AND BALANCES WITH BUDGET. . . . . . . . . . . . . . . . . STATEMENT OF RECEIPTS AND EXPENDITURES - TUBERCULOSIS CLINIC FUND (NONBUDGETED) . . . . . . . . INDEX Page Number 1 to 4 5 6 MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND CaE C. L. COE, C.P.A. 11"°3"""°) CERTIFIED PUBLIC ACCOUNTANTS M. J. KENNEDY, C.P.A. RALPH E. REITZ. C.P.A. JOHN W. POOS. C.P.A. E. T. SHEA. C.P.A. LESTER M. MERTZ. C.P.A. C. E. ROBERTS. C.P.A. WILLIAM H. MONROE. C.P.A. RANDALL P. ANDERSON. C.P.A. UNITED BUILDING OFFICES SALINA. KANSAS TELEPHONE TAYLOR 3-22'" SALINA. KANSAS CONCORDIA. KANSAS TELEPHONE "51" GREAT BEND. KANSAS TELEPHONE GLADSTONE 3-54'" February 23, 1962. To the Salina-Saline County Joint Board of Health, Salina, Kansas. Gentlemen: We have examined the financial books and records of the Salina-Saline County Joint Board of Health, Salina, Kansas, for the period January 1 to December 31, 1961, inclusive. The report of such examination is herewith submitted. SCOPE OF EXAMINATION The examination was performed in accordance with the requirements of the Minimum Standard Audit Program approved by the State Municipal Accounting Board. RECEIPTS, DISBURSEMENTS AND BALANCES - HEALTH DEPARTMENT AND GUIDANCE CENTER A statement of the receipts, disbursements and balances of the Health Department and the Guidance Center of the Salina-Saline County Joint Board of Health, Salina, Kansas, for the year 1961 is presented under Exhibit "A". Both the Health Depart- ment and the Guidance Center made their own tax levy for Saline County for the year 1960 and budget for the year 1961 under the provisions of G.S. 1949 65-204 and G.S. 1959, Supplement 65-212, respectively. The Health Department also made its own tax levy for the City of Salina for the year 1960 and budget for the year 1961. Receipts of the proceeds from the tax levies from these two taxing authorities were verified by an examination of the records of such taxing authorities and may be summarized as follows: Balance in the Taxing Authorities Hands January 1, 1961 Guidance Health Department Center - Saline City of Saline County Salina County $ 317 .28 $ 870.99 $ 284.55 I Add - Collections by the taxing authorities 1960 taxes 1960 sales taxes 1959 and prior years taxes 17,845.87 18,537.35 16,044.80 786.33 1,403.52 684.87 99.35 128,37 86.58 $19,048.83 $20,940.23 $17,100.80 296.24 501..52 266.34 $18.752.59 $20.438.71 $16.834.46 1. Deduct - Balance in taxing authorities hands December 31, 1961 Total Receipts from Taxing Authorities Checks which cleared through the banks during the period were examined as to date, payee, payee endorsement, signature and bank cancellation. All prenumbered warrant check forms used during the year were accounted for. Claim vouchers paid during the period were compared on a test basis with invoices and with the amounts of the warrant checks issued in payment thereof as recorded in the warrant register, The vouchers were examined as to the legality and propriety of expenditure. The bank balance at December 31, 1961, was reconciled to the balance confirmed by the bank. Cash on hand was counted on February 8, 1962, and reconciled to the balance on hand at December 31, 1961. COMPLIANCE WITH CASH BASIS AND BUDGET LAWS Under the provisions of the Cash Basis Law (G. S. 1949, 10-1101 to 1122) it is unlawful to make payment out of or to create an indebtedness against any fund in excess of money actually on hand in the treasury to the credit of the fund. The accounting procedures do not make it practical to determine the extent of compliance or noncompliance with the Cash Basis Law, The Joint Board of Health complied with the Budget Law (G.S. 1949, 79-2935 to 2937) during 1961. Expenditures in excess of budget for the Guidance Center as indicated in Exhibit "A" can be offset against excess budgeted expenditures in the Health Department insofôr as county funds are concerned according to Public Health Laws (G.S. 1961 Supplement, 65-206). The amount of indebtedness created during the year 1961, which was unpaid at De- cember 31, 1961, was determined by an examination of claim vouchers paid during the month of January, 1962, by an examination of payroll tax returns and by reference to the minutes of the meetings of the Joint Board of Heal th. The unencumbered cash balance at December 31, 1961, is presented in Exhibit "A". TUBERCULOSIS CLINIC FUND (NONBUDGETED) The Joint Board of Health received funds during 1961 from the State of Kansas as reimbursement of expenses incurred or to be incurred in connection with the oper- ation of a Tuberculosis Clinic. The unexpended portion of these funds at Decem- ber 31, 1961, were or deposit in the First State Bank of Salina, Salina, Kansas, and we reconciled the balance per books to the balance confirmed to us by the bank. A summary of the transactions in this account is presented under Exhibit "B". INSURANCE AND FIDELITY BONDS A summary of insurance and fidelity bond coverage at December 31, 1961, is as follows: 2. Company Coverage Expiration Date Amount Maryland Casualty Company Fire and extended coverage on contents and office equip- ment located at Washington School - 100% coinsurance 1-3-67* $5,000.00 Western Surety Company Treasurer: Carl Rundquist Continuous 5,000.00 * Coverage at December 31, 1961, was in the form of a binder, binding coverage from December 4, 1961, to January 3, 1962, the date of the policy. It would appear that the insurance coverage of the property on hand at December 31, 1961, is adequate. We confirmed the details of the bonding company's liability on the above boni with the bonding company. In view of the expanding activities of the Guidance Center, the board should consider expanding the fidelity bond coverage to include those employees in positions of trust in the Guidance Center. The depository security coverage at December 31, 1961, was adequate as shown in the following summary: Planters State Bank balance per confirmation $13.210.84 Security FDIC protection Municipal securities pledged $10,000.00 15,000.00 Total $25.000.00 GENERAL The purchase order and claim voucher system used by the Joint Board of Health does not include a record which indicates the amounts of indebtedness created, and consequently the system does not meet the requirements of systems prescribed for use by Kansas Municipalities. Since approximately 92% of the actual expenditures are for salaries and mileage expense allowances, there is effective control over the major portion of the indebtedness created by the Joint Board of Health. The minutes of the meetings of the Joint Board of Health were exé~ined for matters pertaining to the audit. 3. OPINION In our opinion, subject to the foregoing comments, the accompanying exhibits present fairly the cash position of the Salina-Saline County Joint Board of Health, Salina, Kansas, as of December 31, 1961, and the financial transactions for the period January 1 to December 31, 1961. Respectfully submitted, KENNEDY AND COE ~è!:ÞÞ~7 C.P.A. Licensed Municipal Public Accountant in charge of and actively engaged on this audit. SALINA-SALINE COUNTY JOINT BOARD OF HEALTH Salina, Kansas Exhibit "A" COMPARISON OF RECEIPTS, DISBURSEMENTS, AND BALANCES WITH BUDGET January 1 to December 31, 1961 Unencumbered Cash January 1, 1961 Receipts Appropriation from Saline County, Kansas Appropriation from City of Salina, Kansas Guidance Center fees Reimbursed expenses and miscellaneous receipts Total Receipts Total Receipts and Begi~~ißg Balance Expenditures Salaries Nileage Social security taxes Capital equipment Telephone Postage and freight Office supplies Office repairs and maintenance Professional meetings Professional publications Niscel1aneous Total Expenditures Unencumbered Balance December 31, 1961 Represented By Cash on hand Cash in bank Total Cash Deduct - Unpaid purchase commitments Total Health Department Guidance Center Amount Over Amount Over or (Under) or (Under) Actual Budgeted Budge t Actual Budgeted Budget $ 7,973.94 $ 3,730.59 $4,243.35 $ 3,720.88 $ 2,571.73 $1,149.15 $18,752.59 $19,229.70 $ (477 .11) $16,834.46 $17 ,328.27 $ (493.81) 20,438.71 20,438.71 - - - - - - 4,532 .00 2,600.00 1,932.00 5.81 - 5.81 17.68 - 17.68 $39,197.11 $39,668.41 $ (471.30) $21,384.14 $19,928.27 $1,455.87 $47 , 171 .05 $43,399.00 $3,772.05 $25,105.02 $22,500.00 $2,605.02 $31,325.05 $36,080.00 ($4,754.95) $23,083.16 $19,980.00 $3,103.16 2,568.07 3,640.00 (1,071.93) 876.94 450.00 426.94 996.64 963.00 33.64 667.23 520.00 147.23 - 500.00 (500.00) - 100.00 (100.00) 455.20 450.00 5.20 455.15 420.00 35.15 270.65 400,00 (129.35) 80.00 130.00 (50.00) 996.82 500.00 496.82 380.36 300.00 80.36 75.22 100.00 (24.78) 97.89 200.00 (102.11) 314. 12 400.00 (85.88) 106.68 200.00 (93.32) 5.00 50.00 (45.00) - - - 194.64 316.00 (121.36) 185 . 11 200.00 (14.89) $37,201.41 $43,399.00 ($6,197 .59) $25,932.52 $22,500.00 $3,432.52 $ 9.969. 64 $ - $9 .969 . 64 ($ 827.50) $ - ($ 827.50) $ 100.00 $ 30.00 10,179.98 (684.54) $10,279.98 $ (654.54) 310.34 172 .96 U.969 .64 ($ 827.50) SALINA-SALINE COUNTY JOINT BOARD OF HEALTH Salina, Kansas STATEMENT OF RECEIPTS AND EXPENDITURES - TUBERCULOSIS CLINIC FUND (NONBUDGETED) January 1 to December 31, 1961 Receipts Reimbursed expenses Expenditures Salaries Social security taxes Total Expenditures Unencumbered Fund Balance December 31, 1961 Represented By Cash in bank Deduct - Unpaid purchase commitments Total Exhibit "B" $ 70.43 $677.50 $589.40 17.67 $607.07 $ 70.43 $105.79 35.36 6.