Audit - 1989
CITY OF SALINA
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS
December 31, 1989
KENNEDY AND COE
Certified Public Accountants
Salina, Kansas
Exhibit A
Exhibit B
Schedule 1
Schedule 2
Schedule 3
CITY OF SALINA
Salina, Kansas
CONTENTS
INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL
STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERÞmENT
AUDITING STANDARDS
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH LAWS
AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION -
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROLS (ACCOUNTING
AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALU-
ATION MADE AS A PART OF AN AUDIT OF THE BASIC FINN~CIAL
STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE
SINGLE AUDIT ACT
SCHEDULE OF INDEPENDENT AUDITORS' FINDINGS
FINANCIAL STATEMENTS
SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BAù\NCES
BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCŒ1-
BRANCES
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN
UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
NOTES TO FINANCIAL STATEMENTS
Supplemental Information
Composition of Ending Cash Balances
Comparison of Gross Cash Balances with Depository
Security
Schedule of Federal Financial Assistance
Page
1-2
3 -4
5
6
7-9
10
11-12
13-29
30-39
40
41
42
Contents
Exhibit A
Exhibit B
Exhibit C
Exhibit D-l
Exhibit D- 2
CITY OF SALINA
Salina, Kansas
CONTENTS (CONTD.)
SEPARATE FINANCIAL STATEMENTS - WATER
AND SEWERAGE DEPARTMENT
INDEPENDENT AUDITORS' REPORT
BALANCE SHEETS
STATEMENTS OF INCOME
STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS
STATEMENT OF CASH FLOWS
STATEMENT OF CHANGES IN FINANCIAL POSITION
NOTES TO FINANCIAL STATEMENTS
Page
43
44
45
46
47
48
49-53
Contents
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS
To the Mayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, as of
and for the year ended December 31, 1989, as listed in the table of contents.
Our audit included all funds and account groups except
(1) Saline County-City Building Authority, Salina-Saline County Board
of Health, and Salina Public Library, which we audit and report
on separately.
(2) Firemen's Relief Association, Salina Arts Commission, Salina Housing
Authority, and the Salina Airport Authority, which are audited by
other auditors who issue their separate reports.
These financial statements are the responsibility of the City/s management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards,
Government Auditing Standards, issued by the Comptroller General of the United
States, the provisions of Office of Management and Budget Circular A-128,
"Audits of State and Local Governments," and the Kansas Minimum Standard Audit
Program. Those standards, and OMB Circular A-128, require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
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.
As discussed in Note 1, the City of Salina, Kansas, prepares its financial
statements on a prescribed basis of accounting that demonstrates compliance with
the cash basis and budget laws of the State of Kansas, which is a comprehensive
basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the cash and unencumbered cash balances of the City of
Salina, Kansas, as of December 31, 1989, and its receipts and expenditures for
the year then ended, in accordance with the basis of accounting described in
Note 1.
Our audit was made for the purpose of forming an opinion on the financial state-
ments taken as a whole. The accompanying supplemental information presented on
pages 40 to 42 is presented for purposes of additional analysis and is not a
required part of the financial statements. This information has been subjected
to the auditing procedures applied in the audit of the financial statements
mentioned above and, in our opinion, is fairly stated in all material respects
in relation to the financial statements taken as a whole.
-1-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
This report is intended solely for the information and use of the Mayor, Board
of City Commissioners and management of the City of Salina, Kansas, and for
filing with the Kansas Department of Administration, Division of Accounts and
Reports, the cognizant federal agency, and other applicable federal audit
agencies and should not be used for any other purpose. This restriction is not
intended to limit the distribution of this report which, upon acceptance by the
City of Salina, Kansas, is a matter of public record.
Salina, Kansas
September 7, 1990
Respectfully submitted,
~~~
~.~ C.P.A.
Certified Public Accountant in charge
of and actively engaged on this audit.
-2-
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL
STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Mayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, for the
year ended December 31, 1989, and have issued our report thereon dated September
7, 1990.
We conducted our audit in accordance with generally accepted auditing standards,
Government Auditing 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 Local Governments." Those standards and OMB Circular A-128
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
In planning and performing our audit of the financial statements of the City of
Salina, Kansas, for the year ended December 31, 1989, we considered its internal
control structure in order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and not to provide
assurance on the internal control structure.
The management of the City of Salina, Kansas, is responsible for establishing
and maintaining an internal control structure. In fulfilling this responsi-
bility, estimates and judgments by management are required to assess the ex-
pected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are safe-
guarded against loss from unauthorized use or disposition, and that transactions
are executed in accordance with management's authorization and recorded properly
to permit the preparation of financial statements in accordance with the method
of accounting described in Note 1 to the financial statements. Because of
inherent limitations in any internal control structure, errors or irregularities
may nevertheless occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that procedures may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation of policies and procedures may deteriorate.
For the purpose of this report, we have classified the significant internal
control structure policies and procedures in the following categories:
l.
2.
3.
4.
Receipts
Purchases/disbursements
Cash and investment balances
Financial reporting
-3-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
Our consideration of the internal control structure included all of the control
categories listed above. The purpose of ou~ consideration of the internal con-
trol structure was to determine the nature, timing and extent of the auditing
procedures necessary for expressing an opinion on the financial statements.
We noted certain matters involving the internal control structure and its oper-
ation that we consider to be reportable conditions under standards established
by the American Institute of Certified Public Accountants. Reportable con-
ditions involve matters coming to our attention relating to significant defi-
ciencies in the design or operation of the internal control structure that, in
our judgment, could adversely affect the entity/s ability to record, process,
summarize, and report financial data consistent with the assertions of manage-
ment in the financial statements.
1.
Cash balances from the financial records of the City were not timely
reconciled with bank balances. Cash accounts should be reconciled
monthly to detect any errors or irregularities.
2.
Encumbrances were not recorded during a portion of 1989. Recording of
encumbrances is essential to the monitoring of unencumbered cash
balances.
3.
Journal entries were not adequately supported by documentation and/or
detailed descriptions. Better documentation and descriptions would
improve the operation of the internal control structure.
A material weakness is a reportable condition in which the design or operation
of one or more of the specific internal control structure elements does not
reduce to a relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily dis-
close 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 none of the reportable conditions described abo've is a
material weakness.
We also noted other matters involving the internal control structure and its
operation that we have reported to the management of the City of Salina in a
separate letter dated September 7, 1990.
This report is intended solely for the information and use of the Mayor, Board
of City Commissioners and management of the City of Salina, Kansas, the Kansas
Department of Administration, Division of Accounts and Reports, the cognizant
federal agency, and other applicable federal audit agencies and should not be
used for any other purpose. This restriction is not intended to limit the
distribution of this report which, upon acceptance by the City of Salina,
Kansas, is a matter of public record.
Respectfully submitted,
Salina, Kansas
September 7, 1990
~ .....<: ~
-4-
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
LAWS AND REGULATIONS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Mayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, as of
and for the year ended December 31, 1989, and have issued our repor1: thereon
dated September 7, 1990.
We conducted our audit in accordance with generally accepted auditing standards,
Government Auditing 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 Local Governments." Those standards and OMB Circular A-128
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City
of Salina, Kansas, is the responsibility of the City's management. As part of
obtaining reasonable assurance about whether the financial statement:s are free
of material misstatement, we performed tests of the City's compliance with cer-
tain provisions of laws, regulations, contracts, and grants. However, our
objective was not to provide an opinion on overall compliance with such
provisions.
The results of our tests indicate that, with respect to the items tested, the
City of Salina, Kansas, complied, in all material respects, with the provisions
referred to in the preceding paragraph, except as described in Note 7. With
respect to items not tested, nothing came to our attention that caused us to
believe that the City of Salina, Kansas, had not complied, in all material
respects, with those provisions.
This report is intended solely for the information and use of the Mayor, Board
of City Commissioners and management of the City of Salina, Kansas, the Kansas
Department of Administration, Division of Accounts and Reports, the cognizant
federal agency, and other applicable federal audit agencies and should not be
used for any other purpose. This restriction is not intended to limit distri-
bution of this report which, upon acceptance by the City of Salina, Kansas, is a
matter of public record.
Respectfully submitted,
Salina, Kansas
September 7, 1990
~--t~
-5-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION -
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
To the Mayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, for the
year ended December 31, 1989, and have issued our report thereon dated September
7, 1990. These financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards,
Government Auditing 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 Local Governments." Those standards and OMB Circular A-128
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and dis-
closures in the financial statements. An audit also includes assessing the
accounting principles used and 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.
Our audit was made for the purpose of forming an opinion on the financial state-
ments of the City of Salina, Kansas, taken as a whole. The accompanying
schedule of federal financial assistance is presented for purposes of additional
analysis and is not a required part of the financial statements. The infor-
mation in that schedule has been subjected to the auditing procedures applied in
the audit of the City's financial statements and, in our opinion, is fairly
stated, on the basis of accounting described in Note 1 to the financial state-
ments, in all material respects in relation to the financial statements taken as
a whole.
Respectfully submitted,
Salina, Kansas
September 7, 1990
~~~
-6-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROLS
(ACCOUNTING AND ADMINISTRATIVE) -
BASED ON A STUDY AND EVALUATION MADE AS PART OF AN
AUDIT OF THE BASIC FINANCIAL STATEMENTS AND THE
ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT
To the Mayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, for the
year ended December 31, 1989, and have issued our report thereon dat:ed September
7, 1990. As part of our audit, we made a study and evaluation of the internal
control systems, including applicable internal administrative controls, used in
administering federal financial assistance programs to the extent we considered
necessary to evaluate the systems as required by generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller General of
the United States, the Single Audit Act of 1984, and the provisions of OMB
Circular A-128, "Audits of State and Local Governments." For the purpose of
this report, we have classified the significant internal accounting and ad-
ministrative controls used in administering federal financial assist:ance
programs in the following categories:
Accounting Controls
1. Receipts
2. Purchases/disbursements
3. Cash and investment balances
4. Financial reporting
Administrative Controls
1. General requirements
Political activity
Civil rights
Cash management
Federal financial
reports
2.
Specific requirements
Types of services
Reporting
Special requirements
-7-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
The management of the City of Salina, Kansas, is responsible for establishing
and maintaining internal control systems used in administering federal financial
assistance programs. In fulfilling that responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs of
control procedures. The objectives of internal control systems used in ad-
ministering federal financial assistance programs are to provide management with
reasonable, but not absolute, assurance that, with respect to federal financial
assistance programs, resource use is consistent with laws, regulatio.ns, and
policies; resources are safeguarded against waste, loss, and misuse; and
reliable data are obtained, maintained, and fairly disclosed in repo.rts.
Because of inherent limitations in any system of internal accounting and admini-
strative controls used in administering federal financial assistance programs,
errors or irregularities may nevertheless occur and not be detected. Also, pro-
jection of any evaluation of the systems to future periods is subject to the
risk that procedures may become inadequate because of changes in conditions or
that the degree of compliance with the procedures may deteriorate.
Our study included all of the applicable control categories listed above.
During the year ended December 31, 1989, the City of Salina, Kansas, had no
major federal financial assistance programs and expended 96% of its total
federal financial assistance under the following nonmajor federal financial
assistance program: U.S. Department of Housing and Urban Development -
Community Development Block Grant/Small Cities Program for Housing
Rehabilitation. With respect to internal control systems used in adIDinistering
this nonmajor federal financial assistance program, our study and ev'aluation
included considering the types of errors and irregularities that could occur,
determining the internal control procedures that should prevent or detect such
errors and irregularities, determining whether the necessary procedures are
prescribed and are being followed satisfactorily, and evaluating any weaknesses.
With respect to the internal control systems used solely in administ:ering the
other nonmajor federal financial assistance programs of the City of Salina,
Kansas, our study and evaluation was limited to a preliminary review' of the
systems to obtain an understanding of the control environment and thee flow of
transactions through the accounting system. Our study and evaluatio.n of the
internal control systems used solely in administering these nonmajor federal
financial assistance programs of the City of Salina, Kansas, did not extend
beyond this preliminary review phase.
Our study and evaluation was more limited than would be necessary to. express an
opinion on the internal control systems used in administering the federal
financial assistance programs of the City of Salina, Kansas. Accordingly, we do
not express an opinion on the internal control systems used in administering the
federal financial assistance programs of the City of Salina, Kansas.
Also, our audit, made in accordance with the standards mentioned abo.ve, would
not necessarily disclose material weaknesses in the internal control systems,
for which our study and evaluation was limited to a preliminary review of the
systems, as discussed in the fifth paragraph of this report.
-8-
However, our study and evaluation and our audit disclosed no condition that we
believe to be a material weakness in relation to a federal financial assistance
program of the City of Salina, Kansas.
This report is intended solely for the information and use of the Mayor, Board
of City Commissioners and management of the City of Salina, Kansas, the Kansas
Department of Administration, Division of Accounts and Reports, the cognizant
federal agency, and other applicable federal audit agencies and should not be
used for any other purpose. This restriction is not intended to linlit the
distribution of this report which, upon acceptance by the City of Salina,
Kansas, is a matter of public record.
Respectfully submitted,
Salina, Kansas
September 7, 1990
~~~
-9-
CITY OF SALINA
Salina, Kansas
SCHEDULE OF INDEPENDENT AUDITORS' FINDINGS
Year Ended December 31, 1989
None.
-10-
FINANCIAL STATEMENTS
CITY OF SALINA
Salina, Kansas
SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND
BALANCES BY FUNDS AND COMPARISON OF CASH
BALANCES WITH ENCUMBRANCES
Year Ended December 31, 1989
Fund
General Fund
Special Revenue Funds
Street Machinery
Special Gasoline Tax
Tourism and Convention Promotion
Employee Benefit Fund
Utility Fund
Special Parks and Recreation
Special Alcohol Programs
Special Law Enforcement
Special Liability Fund
Special Assessment Escrow
Business Improvement District
Equipment Reserve
Recreation
Debt Service Fund
Bond and Interest
Capital Projects Fund
Construction Fund
Enterprise Funds
Golf Course
Sanitation
Parking Meters
Bicentennial Center
Solid Waste Disposal
Water and Sewerage
Bicentennial Center
Data Processing
Events Fund
Water and Sewerage Principal and Interest
Account for Combined Water and Sewage System
Refunding Revenue Bonds, Series of 1984, and
Combined Water and Sewage System Revenue
Bonds, Series of 1987 and 1988
Unencumbered
Cash Balance
January 1, 1989
$2,899,010.53
63,380.31
130,574.70
155,038.96
128,328.76
8,465.79
9,235.41
14,936.91
20,118.65
113,661. 38
55,523.36
351,958.06
1,005,819.05
56,073.25
425,461. 02
34.60
174,047.06
510,350.26
341,532.19
14,465.47
64,773.03
409,199.50
Receipts
$11,150,712.07
859,505.37
249,126.38
1,677,442.15
656,476.27
59,791. 48
59,791. 48
31,029.14
172,968.78
20,452.90
61,275.98
778,525.23
2,392,933.37
3,110,265.33
427,571. 81
811,088.25
676,304.79
515,154.51
9,799,462.78
542,674.13
142,174.57
1,025,955.70
Exhibit A
Unencumbered
Cash Balance Encumbrances Cash Balance
Expenditures December 31, 1989 December 31, 1989 December 31, 1989
$ 9,854,825.11 $ 4,194,897.49 $ 434,110.40 $ 4,629,007.89
63,380.31 63,380.31
771,599.32 218,480.75 67,703.82 286,184.57
249,126.38
1,708,071. 11 124,410.00 65,684.59 190,094.59
642,745.89 142,059.14 62,578.24 204,637.38
53,150.00 15,107.27 15,107.27
53,920.00 15,106.89 15,106.89
29,619.97 1,409.17 1,409.17
178,144.00 9,761.69 9,761.69
20,452.90 20,452.90
80,896.54 498.09 498.09
113,661.38
779,934.24 54 , 114. 35 158,154.41 212,268.76
2,506,994.39 237,897.04 237,897.04
4,409,045.18 (292,960.80) 871,116.37 578,155.57
431,721.59 51,923.47 14,783.84 66,707.31
669,422.57 567,126.70 7,228.53 574,355.23
34.60
645,940.30 204,411.55 12,209.08 216,620.63
220,875.18 804,629.59 851. 95 805,481.54
8,239,450.01 1,901,544.96 2,618,976.92 4,520,521.88
537,259.52 19,880.08 19,880.08
159,881. 94 47,065.66 10,105.96 57,171.62
912,156.25
522,998.95
522,998.95
-11-
CITY OF SALINA
Salina, Kansas
SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND
BALANCES BY FUNDS AND COMPARISON OF CASH
BALANCES WITH ENCUMBRANCES
Year Ended December 31, 1989
Fund
Unencumbered
Cash Balance
January 1, 1989
Water and Sewerage Reserve Accounts for
Combined Water and Sewage System
Refunding Revenue Bonds, Series of 1984
Revenue Bonds, Series of 1987
Revenue Bonds, Series 1988
Depreciation and Emergency Replacement
Extension and Bond Retirement
$
449,868.14
265,000.00
350,000.00
979,758.20
Intragovernmenta1 Funds
Central Garage
Risk Management
2,243.01
26,553.65
Trust and Agency Funds
Citizenship Trust
HUD Community Development
Cemetery Endowment
Mausoleum Endowment
Fire Insurance Proceeds
13 , 911. 20
141,190.49
100,140.14
17,624.17
2,202.10
Totals (Memorandum Only)
$9,300,479.35
The accompanying notes are an integral
part of these financial statements.
Receipts
$
34,834.87
300,000.00
584,640.16
739,279.27
725.40
223,657.35
2,631.74
375.00
133.85
$37,106,960.11
$
Expenditures
608,816.04
727,850.03
1,000.00
311,475.41
2,335.95
$34,899,952.90
Unencumbered
Cash Balance
December 31, 1989
$
484,703.01
265,000.00
300,000.00
350,000.00
979,758.20
(21,932.87)
37,982.89
13,636.60
53,372.43
102,771.88
17,999.17
$11,507,486.56
Encumbrances
December 31, 1989
$
44,500.53
13 3 . 04
31,325.17
$4,399,462.85
Exhibit A (Contd.)
Cash Balance
December 31, 1989
$
484,703.01
265,000.00
300,000.00
350,000.00
979,758.20
22,567.66
38,115.93
13,636.60
84,697.60
102,771.88
17,999.17
$15,906,949.41
-12-
CITY OF SALINA
Salina, Kansas
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
GENERAL FUND
Receipts
Current tangible tax
Delinquent taxes
Vehicle tax
Local sales tax
Bingo gross receipts tax
City liquor tax
Local ad valorem tax reduction
State shared taxes
Auto dealers tax stamps
Franchise taxes
Fees
Municipal court fines
Permits and inspection
Interest from investments
Miscellaneous
Reimbursement of expenditures
Transfers from other funds
Total Receipts
Expenditures
Department
City Commission
City Manager
Public information
Finance
Legal
Municipal Court
City Building
Engineering
Fire
Permits and inspection
Park
Police
Street
Human Relations
Emergency Medical Services
Traffic
Swimming Pools
Planning
Contingencies
Arts and Humanities
Cemetery
Parking meter
Actual
$ 2,045,224.13
39,819.26
465,623.70
3,435,319.55
11,199.52
59,791. 50
301,592.00
239,922.62
1,531.86
1,379,636.52
834,485.94
304,691.15
223,617.96
837,920.90
25,827.05
609,589.21
334,919.20
11,150,712.07
486,552.87
141,068.74
24,633.49
280,359.61
83,048.93
96,944.90
202,172.04
141,446.97
1,795,894.17
136,556.50
514,254.96
1,851,140.52
601,530.21
93,708.17
593,416.40
108,339.60
51,306.37
98,714.00
117,954.75
129,035.18
63,764.41
39,013.81
Budget
$ 2,068,337.00 $
41,000.00
412,000.00
3,330,000.00
11,000.00
51,150.00
301,592.00
235,616.00
1,451,000.00
732,800.00
360,000.00
230,000.00
325,000.00
28,600.00
499,500.00
339,550.00
10,417,145.00
477 ,804.00
162,600.00
251,900.00
69,700.00
93,155.00
208,740.00
153,710.00
1,737,230.00
135,434.00
510,000.00
1,839,230.00
619,850.00
105,020.00
603,870.00
107,000.00
48,800.00
96,700.00
1,049,780.00
125,600.00
63,140.00
41,910.00
Exhibit B
(Over) Under
Budget
23,112.87
1,180.74
(53,623.70)
(105,319.55)
(199.52)
(8,641.50)
(4,306.62)
(1,531.86)
71,363.48
(101,685.94)
55,308.85
6,382.04
(512,920.90)
2,772.95
(110,089.21)
4,630.80
(733,567.07)
(8,748.87)
21,531. 26
(24,633.49)
(28,459.61)
(13,348.93)
(3,789.90)
6,567.96
12,263.03
(58,664.17)
(1,122.50)
(4,254.96)
(11,910.52)
18,319.79
11,311.83
10,453.60
(1,339.60)
(2,506.37)
(2,014.00)
931,825.25
(3,435.18)
(624.41)
2,896.19
-13-
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
CITY OF SALINA
Salina, Kansas
Actual
Budget
(Over) Under
Budget
GENERAL FUND (CONTD.)
Expenditures (Contd.)
Department (Contd.)
Museum
Floodworks
Neighborhood Centers
Capital Outlay
Transfers to other funds
Total Expenditures
$ 176,200.28 $ 170,300.00 $ (5,900.28)
63,711.79 62,920.00 (791.79)
76,518.27 71,900.00 (4,618.27)
1,042,751.17 4,115,685.00 3,072,933.83
844,787.00 290,000.00 (554,787.00)
9,854,825.11 13,211,978.00 3,357,152.89
Receipts Over (Under) Expenditures
1,295,886.96
(2,794,833.00) (4,090,719.96)
Unencumbered Cash Balance, January 1
2,899,010.53
2,794,833.00
(104,177.53)
Unencumbered Cash Balance, December 31
$4,194,897.49
$
($4,194,897.49)
STREET MACHINERY (NOTE 2)
Receipts
$
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
63,380.31
Unencumbered Cash Balance, December 31
$
63,380.31
SPECIAL GASOLINE TAX
Receipts
Special gasoline tax $ 859,505.37 $ 820,000.00 ($ 39,505.37)
Expenditures
Personal services 67,724.83 72,020.00 4,295.17
Contractual services 550,000.00 550,000.00
Materials and supplies 148,447.74 154,700.00 6,252.26
Capital outlay 555,426.75 14,600.00 (540,826.75)
Reserve 116,069.00 116,069.00
Total Expenditures 771,599.32 907,389.00 135,789.68
Receipts Over (Under) Expenditures 87,906.05 (87,389.00) (175,295.05)
Unencumbered Cash Balance, January 1 130,574.70 87,389.00 (43,185.70)
Unencumbered Cash Balance, December 31 $ 218,480.75 $ ($ 218,480.75)
-14-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
TOURISM AND CONVENTION
PROMOTION
Receipts
Transient guest tax
Expenditures
Contractual services
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
EMPLOYEE BENEFIT FUND
Receipts
Current tangible taxes
Delinquent taxes
Vehicle tax
Social security contributions
Employees retirement contributions
Unemployment insurance contributions
Retiree insurance contributions
Reimbursement of expenditures
Transfers from General Fund
Total Receipts
Expenditures
Public officials and employee
liability insurance
Social security
Police and fire retirement
Employees retirement
Group insurance
Unemployment insurance
Workman's compensation
Earned leave
Reserve
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
Budget
(Over) Under
Budget
$
$
$
873.62
249,126.38
250,000.00
249,126.38
250,000.OC~
873.62
$
$
$
$1,240,018.58
22,022.12
251,477.45
$1,257,725.00
21,000.00
220,000.00
14,000.00
5,500.00
700.00
40,000.00
137,000.00
40,000.00
1,735,925.00
$
17,706.42
(1,022.12)
(31,477.45)
14,000.00
5,500.00
700.00
40,000.00
(11,724.00)
24,800.00
58,482.85
148,724.00
15,200.00
1,677,442.15
$
73,700.00 73,700.00
233,382.77 225,000.00 (8,382.77)
515,791.63 483,000.00 (32,791.63)
51,280.02 54,000.00 2,719.98
592,479.10 620,000.00 27,520.90
14,849.04 20,000.00 5,150.96
210,750.00 210,750.00
15,838.55 45,000.00 29,161. 45
180,000.00 180,000.00
1,708,071.11 1,911,450.00 203,378.89
(30,628.96) (175,525.00) (144,896.04)
155,038.96 175,525.00 20,486.04
124,410.00 $ ($ 124,410.00)
-15-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
(Over) Under
Actual Budget Budget
UTILITY FUND
Receipts
Current tangible taxes $ 519,865.09 $ 527,264.00 $ 7,398.91
Delinquent taxes 9,932.97 9,500.00 (432.97)
Vehicle taxes 112,678.21 100,000.00 (12,678.21)
Transfers from General Fund 14,000.00 14,000 . O(~
Total Receipts 656,476.27 650,764.00 (5,712.27)
Expenditures
Gas service 52,569.77 43,000.00 (9,569.77)
Light and power service 250,496.64 238,000.00 (12,496.64)
Water service 65,243.03 57,500.00 (7,743.03)
Traffic control signals 33,222.85 47,000.00 13,777.15
Street lighting 241,213.60 280,000.00 38,786.40
Reserve 130,000 . O(~ 130,000.00
Total Expenditures 642,745.89 795,500.0(~ 152,754.11
Receipts Over (Under) Expenditures 13,730.38 (144,736.00) (158,466.38)
Unencumbered Cash Balance, January 1 128,328.76 144, 736.0(~ 16,407.24
Unencumbered Cash Balance, December 31 $ 142,059.14 $ ($ 142,059.14)
SPECIAL PARKS AND RECREATION
Receipts
City liquor tax $ 59,791. 48 $ 51,150.00 ($ 8,641. 48)
Expenditures
Transfer to General Fund 53,150.00 53,150.00
Receipts Over (Under) Expenditures 6,641.48 (2,000.00) (8,641.48)
Unencumbered Cash Balance, January 1 8,465.79 2,000.00 (6,465.79)
Unencumbered Cash Balance, December 31 $ 15,107.27 $ ($ 15,107.27)
SPECIAL ALCOHOL PROGRAMS
Receipts
City liquor tax $ 59,791. 48 $ 51,150.00 ($ 8 , 641. 48)
Expenditures
Contractual services 53,920.00 53,920.00
Receipts Over (Under) Expenditures 5,871.48 (2,770.00) (8,641. 48)
Unencumbered Cash Balance, January 1 9,235.41 2, 770 . 00 (6,465.41)
Unencumbered Cash Balance, December 31 $ 15,106.89 $ ($ 15,106.89)
-16-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
Budget
(Over) Under
Budget
Actual
SPECIAL LAW ENFORCEMENT (NOTE 2)
Receipts
$
31,029.14
Expenditures
29,619.97
Receipts Over Expenditures
1,409.17
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
$
1,409.17
SPECIAL LIABILITY FUND
Receipts
Current tangible taxes $ 152,864.35 $ 155,000.00 $ 2,135.65
Delinquent tangible taxes 2,301.81 1,400.00 (901.81)
Vehicle taxes 17,802.62 15 , 000 . OC~ (2,802.62)
Total Receipts 172,968.78 171,400.0C~ (1,568.78)
Expenditures
Contractual services 178,144.00 178,144.00
Reserve 8,632.0C~ 8,632.00
Total Expenditures 178,144.00 186,776.0q 8,632.00
Receipts Over (Under) Expenditures (5,175.22) (15,376.00) (10,200.78)
Unencumbered Cash Balance, January 1 14,936.91 15,376.0C~ 439.09
Unencumbered Cash Balance, December 31 $ 9,761.69 $ ($ 9,761. 69)
SPECIAL ASSESSMENT ESCROW (NOTE 2)
Receipts
Prepaid special assessments $ 20,452.90
Expenditures
Receipts Over Expenditures
20,452.90
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
$
20,452.90
-17-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
(Over) Under
Actual Budget Budget
BUSINESS IMPROVEMENT DISTRICT
Receipts
Assessment fees $ 61,275.98 $ 104,889.0C~ $ 43 , 613 . 02
Expenditures
Contractual services 17,000.00 17,000.00
Sundry expenditures 63,896.54 107,475.0C~ 43,578.46
Total Expenditures 80,896.54 124 ,475 . OC~ 43,578.46
Receipts Over (Under) Expenditures (19,620.56) (19,586.00) 34.56
Unencumbered Cash Balance, January 1 20,118.65 19,586.0C~ (532.65)
Unencumbered Cash Balance, December 31 $ 498.09 $ = ($ 498.09)
EQUIPMENT RESERVE
Receipts $ $ $
Expenditures
Capital outlay 113,661.38 121,174. OQ 7,512.62
Receipts Over (Under) Expenditures (113,661. 38) (121,174.00) (7,512.62)
Unencumbered Cash Balance, January 1 113,661. 38 l21,174.0(~ 7,512.62
Unencumbered Cash Balance, December 31 $ $ $
RECREATION
Receipts
Current tangible taxes $ 424,717.51 $ 428,075.00 $ 3,357.49
Delinquent tangible taxes 10,684.35 12,842.00 2,157.65
Vehicle taxes 119,281.68 90,869.00 (28,412.68)
Recreation activities 105,821.20 93,300.00 (12,521.20)
Activity fund revenue 48,107.86 50,000.00 1,892.14
Concession revenue 35,419.99 33,500.00 (1,919.99)
Interest income 18,254.00 10,000.00 (8,254.00)
Reimbursement of expenditures 16,238.64 7,000.00 (9,238.64)
Total Receipts 778,525.23 725,586.00 (52,939.23)
-18-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
(Over) Under
Actual Budget Budget
RECREATION (CONTD.)
Expenditures
Personal services $ 317,289.92 $ 285,458.00 $ (31,831. 92)
Contractual services 89,126.91 94,100.00 4,973.09
Materials and supplies 61,534.47 53,850.00 (7,684.47)
Sundry expenditures 123,474.98 101,970.00 (21,504.98)
Capital outlay 188,507.96 177,622.00 (10,885.96)
Reverve 68,233.0C~ 68,233.00
Total Expenditures 779,934.24 781,233.0C~ 1,298.76
Receipts Over (Under) Expenditures (1,409.01) (55,647.00) (54,237.99)
Unencumbered Cash Balance, January 1 55,523.36 55,647 . O(~ 123.64
Unencumbered Cash Balance, December 31 $ 54,114.35 $ ($ 54,114.35)
BOND AND INTEREST
Receipts
Current tangible taxes $ 152,746.58 $ 154,995.00 $ 2,248.42
Delinquent tangible taxes 16,341. 56 17,000.00 658.44
Vehicle taxes 196,199.89 173,000.00 (23,199.89)
Current special assessment taxes 808,415.40 850,000.00 41,584.60
Delinquent special assessment taxes 33,800.05 140,000.00 106,199.95
Interest from investments 95,091. 87 (95,091.87)
Miscellaneous 39,188.54 (39,188.54)
Prepaid special assessments 69,149.48 (69,149.48)
Transfers from other funds 982,000.00 982,000.0(~
Total Receipts 2,392,933.37 2,316,995.00 (75,938.37)
Expenditures
General bond principal 465,000.00 585,000.00 120,000.00
General bond interest 171,637.50 275,200.00 103,562.50
Curb, gutter and paving principal
(City share) 507,202.50 473,000.00 (34,202.50)
Curb, gutter and paving principal
(Property owner share) 732,797.50 702,000.00 (30,797.50)
Curb, gutter and paving interest
(City share) 270,937.77 250,500.00 (20,437.77)
Curb, gutter and paving interest
(Property owner share) 358,525.31 351,700.00 (6,825.31)
Fiscal agency commission and postage 893.81 1,500.00 606.19
Reserve 100,000.00 100,000.00
Total Expenditures 2,506,994.39 2,738,900.00 231,905.61
-19-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
BONDS AND INTEREST (CONTD.)
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
CONSTRUCTION FUND (NOTE 2)
Receipts
Temporary notes
Issuance of general obligation
internal improvement bonds
Transfers from other funds
Reimbursements of expenditures
Accrued interest collected on bonds
issued
Total Receipts
Expenditures
Payment of temporary notes, interest
and issuance costs
Contractual services
Transfers to other funds
Construction and capital outlay
Total Expenditures
Receipts Over (Under) Expenditures
Actual
(Over) Under
Budget
Budget
($
114,061.02)($
421,905.00)($
307,843.98)
351,958.06
421,905 . OC~
69,946.94
$
$
($
237,897.04
237,897.04)
$1,835,000.00
1,175,000.00
69,743.34
13,860.55
16,661.44
3,110,265.33
1,228,561.35
39,306.59
867,518.05
2,273,659.19
4,409,045.18
(1,298,779.85)
Unencumbered Cash Balance, January 1 1,005,819.05
Unencumbered Cash Balance, December 31 ($ 292,960.80)
GOLF COURSE
Receipts
Membership and green fees
Cart rental
Cart storage
Cart user fees
Oil well lease
Sales
Reimbursement of expenditures
Sales tax
Total Receipts
$ 206,143.00 $ 196,000.00 ($ 10,143.00)
82,604.86 86,000.00 3,395.14
4,720.00 5,000.00 280.00
5,893.00 6,000.00 107.00
3,891.16 4,000.00 108.84
106,344.65 122,000.00 15,655.35
11,594.47 2,000.00 (9,594.47)
6,380.67 (6,380.67)
427,571. 81 421 , 000 . OC~ (6,571.81)
-20-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
GOLF COURSE (CONTD.)
Expenditures
Personal services
Contractual services
Materials and supplies
Sundry expenditures
Capital outlay
Transfer to General Fund
Reserve
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
SANITATION
Receipts
Service fees
Interest from investments
Miscellaneous sales and services
Reimbursement of expenditures
Transfer from Construction Fund
Total Receipts
Expenditures
Personal services
Contractual services
Materials and supplies
Transfer to General Fund
Capital outlay
Reserve
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
PARKING METERS
Receipts
Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
$
196,522.31
20,601. 02
94,625.04
75,859.94
44,113.28
431,721. 59
(4,149.78)
56,073.25
$
51,923.47
$
727,505.14
31,705.00
1,878.11
50,000.00
811,088.25
399,410.57
95,830.46
97,139.26
45,000.00
32,042.28
669,422.57
141,665.68
425,461.02
$
567,126.70
$
34.60
(34.60)
34.60
$
Budget
$
157,000.00
85,625.00
78,000.00
50,500.00
21,000.00
16,000.00
67,891.00
476,016.0Q
(55,016.00)
55,016.0Q
$
$
704,000.00
20,000.00
2,000.00
1,000.00
50,000.00
777,000.00
316,230.00
181,760.00
100,700.00
45,000.00
42,260.00
457,110.00
1,143,060.00
(366,060.00)
366,060.00
$
$
$
(Over) Under
Budget
$
(39,522.31)
65,023.98
(16,625.04)
(25,359.94)
(23,113.28)
16,000.00
67,891. 00
44,294.41
(50,866.22)
(1,1057.25)
($
51,923.47)
$
(23,505.14)
(11,705.00)
121. 89
1,000.00
(34,088.25)
(83,180.57)
85,929.54
3,560.74
10,217.72
457,110.00
473,637.43
(507,725.68)
(59,401.02)
($
567,126.70)
$
(34.60)
34.60
(34.60)
$
-21-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
BICENTENNIAL CENTER
Receipts
Rent
Concessions
Reimbursement of expenditures
Transfers from other funds
Total Receipts
Expenditures
Personal services
Contractual services
Materials and supplies
Sundry expenditures
Capital outlay
Reserve
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
SOLID WASTE DISPOSAL
Receipts
Service fees
Income from leased land
Interest from investments
Transfer from Construction Fund
Total Receipts
Expenditures
Personal services
Contractual services
Materials and supplies
Capital outlay
Transfer to General Fund
Reserve
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
$
150,986.30
312,111. 69
10,284.17
202,922.63
676,304.79
371,242.71
454.96
37,076.28
215,434.49
21,731. 86
645,940.30
30,364.49
174,047.06
$
204,411.55
$
295,629.88
2,412.12
48,948.00
168,164.51
515,154.51
106,240.52
7,262.09
67,746.91
26,225.66
13,400.00
220,875.18
294,279.33
510,350.26
$
804,629.59
Budget
$
195,000.00
260,000.00
2,000.00
211,375.00
668,375.00
364,000.00
86,700.00
51,500.00
101,900.00
18,840.00
214,576.00
837,516.00
(169,141. 00)
169,141. 012
$
$
285,000.00
100.00
23,000.00
193,025.012
501,125.00
87,550.00
38,465.00
76,600.00
13,400.00
713,589.00
929,604.012
{428,479.00)
428,479.00
$
(Over) Under
Budget
$
44,013.70
(52,111. 69)
(8 , 284.17)
8,452.37
(7,929.79)
(7 , 242 . 71)
86,245.04
14,423.72
(113,534.49)
(2,891.86)
214,576.00
191,575.70
(199,505.49)
(4,906.06)
($
204,411.55)
$
(10,629.88)
(2,312.12)
(25,948.00)
24,860.49
(14,029.51)
(18,690.52)
31,202.91
8,853.09
(26,225.66)
713,589.00
708,728.82
(722,758.33)
(81,871.26)
($
804,629.59)
-22-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
WATER AND SEWERAGE FUND
Receipts
Water
Sewerage
Kansas Water Protection revenue
Tapping and front footage service
Service charge - Sanitation department
Meter repair and service line revenue
Interest income
Miscellaneous income
Sales tax collections
Meter deposits
Bond proceeds
Rental income
Total Receipts
Expenditures
Water supply
Softening and treatment
Pumping
Distribution
Customer accounting and collection
Administrative and general
Sewage treatment and collection
Bond ordinance requirements
Capital expenditures
Sales tax remitted
Meter deposits refunded
Bond issue costs
Transfer to Reserve for Combined
Water and Sewage System Revenue
Bonds Series 1988
Reserve
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
$ 4,851,563.62
1,273,605.50
19,785.64
20,134.68
14,293.66
16,365.45
346,011.15
117,789.89
99,763.19
40,150.00
3,000,000.00
9,799,462.78
116,283.55
997,067.05
205,860.03
507,011.12
321,128.55
1,062,451.04
642,272.41
972,368.86
2,973,243.86
99,763.19
37,425.00
4,575.35
300,000.00
8,239,450.01
1,560,012.77
341,532.19
$1,901,544.96
Budget
(Over) Under
Budget
$4,737,440.00 ($ 114,123.62)
1,327,140.00 53,534.50
(19,785.64)
865.32
(1,293.66)
(6,365.45)
(96,011.15)
(97,789.89)
(3,763.19)
(8,150.00)
(3,000,000.00)
12,000.OQ 12,000.00
6,518,580.00 (3,280,882.78)
21,000.00
13,000.00
10,000.00
250,000.00
20,000.00
96,000.00
32,000.00
124,584.00
884,120.00
199,100.00
712,120.00
385,565.00
1,188,880.00
688,000.00
871,750.00
400,000.00
2,878,169.00
8,332,288.00
8,300.45
(112,947.05)
(6,760.03)
205,108.88
64,436.45
126,428.96
45,727.59
(100,618.86)
(2,573,243.86)
(99,763.19)
(37,425.00)
(4,575.35)
(300,000.00)
2,878,169.00
92,837.99
(1,813,708.00) (3,373,720.77)
1,472,175.81
1,813,708.0Q
$
($1,901,544.96)
-23-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
Actual
Budget
(Over) Under
Budget
BICENTENNIAL CENTER EVENTS
FUND
Receipts
$
542,674.13
Expenditures
Transfer of net rental fees to
Bicentennial Center Fund
Special events expenditures
Total Expenditures
56,520.16
480,739.36
537,259.52
Receipts Over Expenditures
5,414.61
Unencumbered Cash Balance, January 1
14,465.47
Unencumbered Cash Balance, December 31
$
19,880.08
DATA PROCESSING
Receipts
Sale of commodities $ 1,647.15 $ 750.00 ($ 897.15)
Fees 138,497.42 135,900.00 (2,597.42)
Computer programming service 2,030.00 2,000.00 (30.00)
Total Receipts 142,174.57 l38,650.0Q (3,524.57)
Expenditures
Personal services 126,127.34 103,642.00 (22,485.34)
Contractual services 28,799.20 54,270.00 25,470.80
Materials and supplies 4,699.46 5,000.00 300.54
Reserve 23,180.00 23,180.00
Capital outlay 255.94 (255.94)
Total Expenditures 159,881. 94 186,092.00 26,210.06
Receipts Over (Under) Expenditures (17,707.37) (47,442.00) (29,734.63)
Unencumbered Cash Balance, January 1 64,773.03 47,442.0Q (17,331.03)
Unencumbered Cash Balance, December 31 $ 47,065.66 $ ($ 47,065.66)
-24-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
Actual
Budget
(Over) Under
Budget
PRINCIPAL AND INTEREST ACCOUNT FOR
COMBINED WATER AND SEWAGE SYSTEM
REFUNDING REVENUE BONDS, SERIES OF
1984, AND COMBINED WATER AND SEWAGE
SYSTEM REVENUE BONDS, SERIES OF
1987 and 1988 (NOTE 2)
Receipts
Interest from investments
Accrued interest collected on
bonds issued
Transfers from Water and Sewerage
Fund
Total Receipts
$
29,094.03
24,492.81
972,368.86
1,025,955.70
Expenditures
Bond principal
Bond interest
Total Expenditures
390,000.00
522,156.25
912,156.25
Receipts Over Expenditures
113,799.45
Unencumbered Cash Balance, January 1
409,199.50
Unencumbered Cash Balance, December 31
$
522,998.95
RESERVE ACCOUNT FOR COMBINED WATER
AND SEWAGE SYSTEM REFUNDING REVENUE
BONDS, SERIES OF 1984 (NOTE 2)
Receipts
Interest from investments
$
34,834.87
Expenditures
Receipts Over (Under) Expenditures
34,834.87
Unencumbered Cash Balance, January 1
449,868.14
Unencumbered Cash Balance, December 31
$
484,703.01
-25-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
Actual
Budget
(Over) Under
Budget
RESERVE ACCOUNT FOR COMBINED WATER
AND SEWAGE SYSTEM REVENUE BONDS,
SERIES OF 1987 (NOTE 2)
Receipts
$
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
265,000.00
Unencumbered Cash Balance, December 31
$
265,000.00
RESERVE ACCOUNT FOR COMBINED WATER
AND SEWAGE SYSTEM REVENUE BONDS,
SERIES 1988 (NOTE 2)
Receipts
Transfer from Water and Sewerage Fund $
300,000.00
Expenditures
Receipts Over Expenditures
300,000.00
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
$
300,000.00
RESERVE ACCOUNT FOR COMBINED WATER
AND SEWAGE SYSTEM DEPRECIATION AND
EMERGENCY REPLACEMENT (NOTE 2)
Receipts
$
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
350,000.00
Unencumbered Cash Balance, December 31
$
350,000.00
-26-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
Budget
(Over) Under
Budget
Actual
RESERVE ACCOUNT FOR COMBINED WATER
AND SEWAGE SYSTEM EXTENSION AND
BOND RETIREMENT (NOTE 2)
Receipts
$
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
979,758.20
Unencumbered Cash Balance, December 31
$
979,758.20
CENTRAL GARAGE (NOTE 2)
Receipts
Reimbursement of expenditures
$
584,640.16
Expenditures
Personal services
Materials and supplies
Sundry expenditures
Capital outlay
Total Expenditures
133,994.01
458,044.68
6,459.41
10,317.94
608,816.04
Receipts Over (Under) Expenditures
(24,175.88)
Unencumbered Cash Balance, January 1
2,243.01
Unencumbered Cash Balance, December 31 ($
21,932.87)
RISK MANAGEMENT (NOTE 2)
Receipts
Reimbursement of expenditures
$
739,279.27
Expenditures
Personal services
Contractual services
Materials and supplies
Sundry expenditures
Capital outlay
Total Expenditures
38,844.40
684,700.37
1,360.90
2,866.42
77 .94
727,850.03
Receipts Over (Under) Expenditures
11,429.24
Unencumbered Cash Balance, January 1
26,553.65
Unencumbered Cash Balance, December 31
$
37,982.89
-27-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
CITIZENSHIP TRUST (NOTE 2)
Receipts
Interest from investments
Expenditures
Contractual services
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31 $
HUD COMMUNITY DEVELOPMENT (NOTE 2)
Receipts
Interest from investments
Community Development Block Grants
Reimbursement of expenditures
Total Receipts
Expenditures
Personal services
Contractual services
Materials and supplies
Return of Community Development Block
Grant funds to State of Kansas
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
(Over) Under
Budget
Budget
$
725.40
1,000.00
(274.60)
13 , 911. 20
13,636.60
$
10,181. 82
201,000.00
12,475.53
223,657.35
35,824.84
188,007.38
743.19
86,900.00
311,475.41
(87,818.06)
141,190.49
$
53,372.43
-28-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1989
CEMETERY ENDOWMENT (NOTE 2)
Budget
(Over) Under
Budget
Actual
Receipts
Perpetual care deposits
$
2,631.74
Expenditures
Receipts Over Expenditures
2,631. 74
Unencumbered Cash Balance, January 1
100,140.14
Unencumbered Cash Balance, December 31
$
102,771.88
MAUSOLEUM ENDOWMENT (NOTE 2)
Receipts
$
375.00
Expenditures
Receipts Over Expenditures 375.00
Unencumbered Cash Balance, January 1 17,624.17
Unencumbered Cash Balance, December 31 $ 17,999.17
FIRE INSURANCE PROCEEDS (NOTE 2)
Receipts
Income from investments
$
133.85
Expenditures
2,335.95
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31 $
(2,202.10)
2,202.10
The accompanying notes are an integral
part of these financial statements.
-29-
CITY OF SALINA
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1989
1.
Summary of Significant Accounting Policies
a.
Reporting Entity
The accompanying financial statements include all funds and account groups except
Saline County-City Building Authority, Salina-Saline County Board of Health,
Salina Public Library, Firemen's Relief Association, Salina Arts Commission,
Salina Housing Authority, and Salina Airport Authority. Separa1~e financial
statements are prepared for each of these entities.
b.
Basis of Statement Presentation
The City maintains its accounting records in accordance with the principles
of fund accounting in order to ensure observance of limitations and restric-
tions placed on the use of resources available. This is the procedure by
which resources are classified for accounting and reporting into funds estab-
lished according to their nature and purposes.
The City of Salina maintains its accounting records for all funds on the cash
basis, except that expenditures incurred but not paid and purchase commitments
at December 31 are recorded as encumbrances at that date. This method serves
to develop information relative to compliance with the budget, cash basis,
and other statutes applicable to municipalities within the State of Kansas.
The method is not, however, in accordance with generally accepted accounting
principles for municipalities. Generally accepted accounting principles
require:
a. Revenues of governmental funds to be recorded on the modified
accrual basis whereby receivables are recorded for amounts
available and measurable, and deferred revenues are recorded
for amounts measurable but not available. The City does not
record receivables and deferred revenues.
b. Expenditures to be recorded generally on the accrual basis.
The City records purchase commitments as encumbrances at
year-end, and any loss from loss contingencies and expense
for compensated absences are recorded when such amounts
are payable.
c. The General Fixed Assets and the General Long-Term Debt Account
Groups to be maintained. The City does not maintain these
account groups.
d. Transfers between funds to be recorded as reductions to fund
balance of the fund making the transfers and as additions
to fund balance of the fund receiving the transfer. The
City records such transfers as expenditures of the fund
making the transfer and as receipts of the fund receiving
the transfer.
-30-
e. The annual financial statements to include a combined balance
sheet for all fund types and account groups; a combined
statement of revenues, expenditures, and changes in fund
balance for all governmental fund types and expendable
trust funds; a combined statement of revenues, expenses,
and changes in retained earnings, and changes in financial
position for all proprietary fund types; and a combined
statement of revenues, expenditures, and changes in fund
balance and combined comparison with budget for all govern-
mental fund types. These required financial statements are
not included in this report.
The City has, by charter ordinance, elected to exempt itself from the Kansas
statutory requirement to maintain fixed asset records, and has requested the
Director of Accounts and Reports to waive the requirements of K,S.A. 75-ll20a
as related to the preparation of financial statements in conformity with gener-
ally accepted accounting principles.
2.
Budgetary Information
Kansas statutes require that an annual operating budget be legally adopted for
the general fund, special revenue funds (unless specifically exempted by
statute), debt service funds, and enterprise funds. The statutes provide for the
following sequence and timetable in the adoption of the legal annual operating
budget:
a.
Preparation of the budget for the succeeding calendar year on or
before August 1st.
Publication in local newspaper of the proposed budget and notice of
public hearing on the budget on or before August 5th.
Public hearing on or before August 15th, but at least ten days after
publication of notice of hearing.
Adoption of the final budget on or before August 25th.
b.
c.
d.
The statutes allow for the governing body to increase the originally adopted
budget for previously unbudgeted increases in revenue other than ad valorem
property taxes. To do this, a notice of public hearing to amend the budget must
be published in the local newspaper. At least ten days after publication the
hearing may be held and the governing body may amend the budget at that time.
The following amendment to the original budget was approved by the governing
body: Recreation Fund expenditures of $781,233.00.
The statutes permit transferring budgeted amounts between line items within an
individual fund. However, such statutes prohibit expenditures in excess of the
total amount of the adopted budget of expenditures of individual funds. Budget
comparison statements are presented for each fund showing actual receipts and
expenditures compared to legally budgeted receipts and expenditures.
All legal annual operating budgets are prepared using the cash basis of
accounting, modified by the recording of encumbrances as expenditures. Receipts
are recognized when cash is received. Expenditures include disbursements,
accounts payable, and encumbrances. Encumbrances are commitments by the muni-
cipality for future payments and are supported by a document evidencing the com-
mitment, such as a purchase order or contract. All unencumbered appropriations
(legal budget expenditure authority) lapse at year-end.
-31-
A legal operating budget is not required for the following funds:
Special Revenue Funds - Certain of the special revenue funds
are not budgeted since their revenues are designated for a
special purpose or the fund represents a clearing account.
Capital Projects Fund - The capital projects fund is not
budgeted since provision for payment of expenditure is
from the issuance of bonds, temporary notes, and special
assessments and charges.
Bicentennial Center Event Fund - This fund is used as a
clearing account for special events when the City acts
as the promoter's agent. The City's rental fees from such
events are transferred from the fund to the Bicentennial
Center Fund.
Water and Sewerage Bond Fund and Reserve Accounts - These
funds are not budgeted since receipts and expenditures
are in accordance with requirements of applicable bond
issues.
Central Garage and Risk Management - These funds are intra-
governmental funds whose expenditures are reimbursable by
other funds.
Trust and Agency Funds - The individual trust and agency funds
are not subject to the budget law since the assets do not
belong to the City of Salina.
3.
Cash
Kansas municipalities, such as the City of Salina, are authorized by Kansas
statutes to invest funds in:
(1)
Temporary notes or no-fund warrants issued by the investing
governmental unit,
Time deposit, open accounts or certificates of deposit,
Time certificates of deposit,
Repurchase agreements, and
United States Treasury bills or notes with maturities
not exceeding six months.
(2)
(3)
(4)
(5)
Deposits or investments with qualifying financial institutions are to be secured
by a bond or by the pledge of certain types of securities specified by statute.
Cash and investments of the City of Salina deposited with financial institutions
were 100% insured or collateralized by securities provided by such depository
financial institutions at December 31, 1989.
Cash and investments were comprised of the following as of December 31, 1989.
Petty cash funds
Cash in checking and temporarily
invested in repurchase agreements
Cash in NOW accounts
Certificates of deposit
Treasury bills, at cost (Market value,
$993,393.06)
$
4,890.00
3,491,356.51
88,237.83
11,326,000.00
992,059.35
Total
$15,902,543.69
-32-
4.
Long-Term Obligations
a.
Changes in Long-Term Debt
The following is a summary of bond transactions of the City for the year
ended December 31, 1989:
General
Obligation
Revenue
Total
Outstanding bonds at
January 1, 1989 $11,825,000.00 $4,110,000.00 $15,935,000.00
New bonds issued:
1989 Internal improvement 1,175,000.00 1,175,000.00
1988 Water and Sewage
revenue 3,000,000.00 3,000,000.00
Bonds retired 1,705,000.00 390,000.00 2,095,000.00
Outstanding Bonds at
December 31, 1989 $11,295,000.00 $6,720,000.00 $18,015,000.00
Outstanding bonds at December 31, 1989, are comprised of the following indi-
vidual issues:
General Obligation Bonds:
$8,115,000 General Obligation Refunding Bonds,
Series 1985, due in semi-annual installments
of $160,000 to $400,000 through April 1, 1996,
interest at 7.75% to 9.00%.
$ 3,500,000.00
$1,983,000 General Obligation Internal Improvement
Bonds, Series 1986, due in annual installments of
$180,000 to $270,000 through December 1, 1996,
interest at 5.2% to 5.7%.
1,630,000.00
$5,000,000 General Obligation Internal Improvement
Bonds, Series 1987, due in annual installments of
$500,000 through December 1, 1997, interest at
6.10% to 6.65%.
4,000,000.00
$1,115,000 General Obligation Internal Improvement
Bonds, Series 1988, due in annual installments of
$90,000 to $125,000 through December 1, 1998, interest
at 6.15% to 8.15%.
990,000.00
$1,175,000 General Obligation Internal Improvement
Bonds, Series 1989, due in annual installments of
$115,000 to $120,000 through December 1, 1999,
interest at 5.800% to 7.875%.
1,175,000.00
Total
$11,295,000.00
-33-
Revenue Bonds:
$2,770,000 Combined Water and Sewage System Refunding
Revenue Bonds, Series of 1984, due in annual install-
ments of $160,000 to $345,000 through February 15,
1994, interest at 9.00% to 9.75%.
$ 1,280,000.00
$2,650,000 Combined Water and Sewage System Revenue
Bonds, Series of 1987, due in annual installments
of $80,000 to $230,000 through October 1, 2007,
interest at 7.0% to 8.5%.
2,505,000.00
$3,000,000 Combined Water and Sewage System Revenue
Bonds, Series 1988, due in annual installments
of $70,000 to $285,000 through October 1, 2008,
interest at 6.0% to 9.5%.
$ 2,935,000.00
Total
$ 6,720,000.00
The annual requirements to amortize all bonds outstanding as of December 31,
1989, are as follows:
Payable in
Year Ended General
December 31, Obligation Revenue Total
Principal
1990 $ 1,710,000.00 $ 425,000.00 $ 2,135,000.00
1991 1,580,000.00 350,000.00 1,930,000.00
1992 1,485,000.00 485,000.00 1,970,000.00
1993 1,515,000.00 530,000.00 2,045,000.00
1994 1,430,000.00 355,000.00 1,785,000.00
Thereafter 3,575,000.00 4,575,000.00 8,150,000.00
Total Principal 11,295,000.00 6,720,000.00 18,015,000.00
Interest
1990 758,721.25 523,600.00 1,282,321.25
1991 639,455.00 489,035.00 1,128,490.00
1992 532,033.75 451,375.00 983,408.75
1993 432,015.00 404,970.00 836,985.00
1994 329,123.00 364,460.00 693,583.00
Thereafter 459,674.50 2,777,585.00 3,237,259.50
Total Interest 3,151,022.50 5,01l,025.00 8,162,047.50
Total Principal and
Interest $14,446,022.50 $1l,73l,025.00 $26,177,047.50
The City's share and property owner's share of the general obligation bonds
outstanding are $8,227,463.20 and $6,218,559.30, respectively.
-34-
b.
Revenue Bonds
The City has established certain reserve accounts pursuant to bond
ordinances authorizing the issuance of Combined Water and Sewage System
Refunding Revenue Bonds, Series of 1984 and the Combined Water and
Sewage System Revenue Bonds, Series of 1987 and 1988, to provide funds for
the retirement of the bonds and payment of interest thereon and for making
replacements to the system in the event other funds are not available.
The gross revenues of the Water and Sewerage Department are pledged to
secure payment of the bonds; however, the pledge is subordinate to a
similar pledge to secure payment of certain defeased bonds.
The amounts required to be maintained in the reserve accounts estab-
lished by the bond ordinances authorizing issuance of the 1984, 1987 and
1988 bonds have been provided and the total revenues of the water and
sewerage system appear sufficient to meet the requirements of the ordinance.
c.
Prior-Year Defeasance of Debt
In prior years, the City defeased certain general obligation and revenue
bonds by placing the proceeds of new bonds and cash and certain investments
in irrevocable trusts to provide for all future debt service payments on the
old bonds. Accordingly, the trust accounts assets and the liability for the
defeased bonds are not included in the City's financial statements. On
December 31, 1989, a total of $4,069,000.00 of general obligation and
$6,948,000.00 of revenue bonds are considered defeased.
5.
Capital Projects Fund
The Capital Projects Fund is used to account for the purchase or construction
of capital facilities, equipment, and public improvements.
A summary of the fund's unencumbered cash balance at December 31, 1989, follows:
Cash balance resulting from
Capital projects completed
Capital projects in process
Special assessments projects
$ 257.12
(17,367.48)
(275,850.44)
Total
($292,960.80)
The deficit balance of unencumbered cash will be funded by the issuance of bonds
in 1990. General funds are being used to temporarily finance the deficit cash
balance as of December 31, 1989 in accordance with K.S.A. 10-1116(a)(2).
6.
Financing of Deficit Cash Balance
Expenditures of the Central Garage are reimbursable by other funds. Accrued
revenues of the fund exceed the unencumbered cash deficit at December 31, 1989;
accordingly, such deficit is not a violation of the Kansas cash basis law.
-35-
7.
Compliance with Kansas Statutes
A summary of statutory violations related to 1989 follows.
Quarterly financial statements of the City were not published
for the quarters ended September 30 and December 3l, 1989, which
appears to be a violation of K.S.A. 12-1608.
a.
b.
The City did not maintain a record of encumbrances during May
to September 1989, which appears to be a violation of
K.S.A. 10-1117.
Expenditures of the Parking Meters fund exceeded budgeted
expenditures for the year ended December 31, 1989, by
$34.60, which appears to be a violation of the Kansas
budget law (K.S.A. 79-2935).
c.
8.
Fund Transfers
Following is a schedule of transfers between funds for the year 1989.
From
Special Parks and Recreation
Parking meters
General Fund
Bicentennial Center Events Fund
Water and Sewerage - Bond
Ordinance requirements
General Fund - Museum
General Fund
General Fund
General Fund
Solid waste
Sanitation
Business Improvement District -
Contractual Services
Construction
Construction
Construction Fund
Construction Fund
Construction Fund
Construction Fund
Water and Sewerage
Fund
To
General Fund
General Fund
Employee Benefit Fund
Bicentennial Center - Rent
Principal and Interest
Account for Combined
Water and Sewage System
Refunding Revenue Bonds,
Series of 1984, and Com-
bined Water and Sewage
System Revenue Bonds,
Series of 1987 and 1988
Utili ty Fund
Bicentennial Center
Bond and Interest
Construction Fund
General Fund
General Fund
General Fund
Sanitation
Solid Waste
General Fund - Engineering
fees
General Fund
Bicentennial Center
Bond and interest
Reserve Account for Combined
Water and Sewage System
Revenue Bonds, Series 1988
Amount
$ 53,150.00
34.60
15,200.00
56,520.16
972,368.86
14,000.00
200,000.00
582,000.00
47,587.00
13,400.00
45,000.00
17,000.00
50,000.00
168,164.51
233,385.13
9,300.00
2,922.63
400,000.00
300,000.00
-36-
9.
Defined Benefit Pension Plan
Substantially all full-time employees of the City of Salina par1~icipate in the
Kansas Public Employees Retirement System (the System), a multiple-employer
public employee retirement system. A group of employees participate in the
Kansas Police and Firemen System (KP&F), a separate program administered by
the System.
Following is a summary of covered payroll and contributions to 1~he System for
the year ended December 31, 1989.
Covered Contributions
Payroll Employer Employee Total
General employees $4,398,327.85 $ 87,872.40 $195,122.54 c' 282,994.94
,?
Police and firemen 3,434,791.67 515,791. 63 220,448.32 736,239.95
Totals $7,833,119.52 $603,664.03 $415,570.86 ~?1,019,234.89
The total payroll for the City of Salina was $8,686,550.50 for 1:he year ended
December 31, 1989.
Substantially all general employees of the City of Salina are eligible to par-
ticipate in the System after one year of employment. Employees who retire at
or after age 65 are entitled to a retirement benefit, payable monthly for life,
equal to 1 percent of their final average salary for each year of "prior" ser-
vice and 1.25 to 1.5 percent for each year of "participating" service depending
upon the number of years of service. Final average salary is the employee's
average salary over the highest four years of credited service. Benefits
fully vest on reaching lO years of service. Vested employees may retire at
age 55 to 65 with 10 years of credited service and receive redueed retirement
benefits. The system also provides death and disability benefi1:s. Benefits
are established by State statute.
Covered general employees are required by State statute to contribute 4% of
their salary to the plan; in addition, there are various options available to
covered employees, where the employees may make additional contributions. The
employer is required by the same statute to contribute the remaining amounts
necessary to pay benefits when due. The employer's contribution was 2% of
covered payroll for 1989.
The retirement benefits for participants in KP&F are different from those
described above for other participants in the System. Normal retirement
for KP&F participants is at age 55. They can retire at age 50 \vith 20
years of service, but with reduced benefits. The contribution rate was
3% to 7% for employees and 15% for the employer for 1989.
The "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. The measure, which is the
actuarial present value of credited projected benefits, is intended to help
users assess the System's funding status on a going-concern basis and assess
-37-
progress made in accumulating sufficient assets to pay benefits when due.
The System does not make separate measurements of assets and pension benefit
obligation for individual employers. The pension benefit obligation at
January 1, 1989, for the System as a whole, determined through an actuarial
valuation performed as of that date, was $3.61 billion. The System's net
assets available for benefits on that date were estimated to be $3.03
billion, leaving an unfunded pension benefit obligation estimated at
$584 million.
Other information related to the system can be found in the System's 1989
comprehensive annual financial report.
10.
Construction Fund Projects
Construction fund projects cumulative expenditures through December 31,
1989, are compared to project authorizations as follows:
Proiect Name
Street and Drainage Improvements
and Water Line and Sanitary
Sewer Extensions (Georgetown
Addition
Downtown Redevelopment
Street and Drainage Improvements
and Water Line and Sanitary
Sewer Extensions (Country Club
Heights)
Sidewalk Improvements (Project 88-765)
Ohio Street and Iron Avenue Inter-
section and Ohio Street South
Improvements
Broadway Overpass
Street Improvements at Crawford
Street and Ninth Street
Intersection
Second Street Drainage Improvements
Widening of Crawford Street between
Ohio Street and 1-135
Water and Sanitary Sewer Extensions
and Street Improvements (Country
Club Estates)
Sidewalk Improvements (Project 89-791)
Proj ect
Authorization
$ 758,907.88
6,500,000.00
400,533.79
99,998.84
800,000.00
395,000.00
480,000.00
12,500.00
1,525,504.50
91,717.42
Cumulative
Expenditures
$ 684,494.03
5,199,506.41
353,486.56
68,895.10
816,830.29
380,599.37
49,621. 94
463,761. 98
12,500.00
1,241,763.46
64,833.00
Cumulative expenditures through December 31, 1989, exceeded the project
authorization as of December 31, 1989, for (a) Ohio Street and Iron Avenue
Intersection and Ohio Street South Improvements project and (b) Street
Improvements at Crawford Street and Ninth Street Intersection project,
which appear to be in violation of the Kansas budget law (K.S.A. 79-2935).
A project authorization of $720,000.00 was subsequently approved for the
latter project in April 1990.
-38-
11.
Temporary Notes
The following is a summary of temporary note transactions of the City for the
year ended December 31, 1989:
Outstanding debt at January 1, 1989
Temporary notes issued
Temporary notes paid
$1,125,000.00
1,835,000.00
(1,125,000.00)
Outstanding Debt at December 31, 1989
$1,835,000.00
Outstanding debt at December 31, 1989, is comprised of a $395,000.00 temporary
note issued on April 1, 1989, at an interest rate of 7.5%; a $480,000.00
temporary note issued on November 1, 1989, at an interest rate of 6.6%; and a
$960,000.00 temporary note issued on November 1, 1989, at an interest rate
of 6.8%.
12.
Compensated Leave
All employees of the City, except temporary and part-time employees, may
accumulate sick leave at a rate of 8 or 11 hours per month, depending on their
work duty schedule. There is no limit on the amount of sick leave which can be
accumulated. Employees with more than five years of service with the City are
paid for one-third of their accumulated sick leave at their current wage scale,
upon termination of employment in good standing.
All regular employees with at least one year of service are entitled to paid
vacation time. Such leave is granted each year of employment and unused leave
may accumulate to a maximum of one year's accumulation of vacation leave.
Employees are paid for all accumulated vacation leave at their eurrent wage
scale upon termination of employment.
As of December 31, 1989, the estimated amount of liability for ,~he vested
portion of unused sick leave and accumulated vacation leave is ~?640,998.00 and
$327,755.00, respectively. Substantially all the liability is not payable from
currently available unencumbered cash and, accordingly, has not been recorded in
the accompanying financial statements.
13.
Subsequent Bond Issue
The City issued $7,865,000.00 Combined Water and Sewage System Revenue Bonds
dated July 1, 1990, for the purpose of refunding all outstanding revenue bond
issues and to finance certain improvements to the water and sewerage system.
14.
Contingencies
A number of claims have been filed against the City alleging unlawful conduct by
certain members of the City's police department. The claimants seek actual and
punitive damages. Only one of these claims has been filed in a court of
jurisdiction, and such claim is in the process of discovery. The ultimate
resolution of these pending claims cannot presently be determined.
-39-
Supplemental Information
Cash in Depositories
Bank IV - Salina,
N .A., Salina,
Kansas
National Bank of
America, Salina,
Kansas
First National
Bank and Trust,
Salina, Kansas
First Bank and
Trus t Co.,
Salina, Kansas
Total Cash in
Depositories
CITY OF SALINA
Salina, Kansas
COMPOSITION OF ENDING CASH BALANCES
December 31, 1989
Cash in
Checking
Cash in
NOW Accounts
$
$
3,491,356.51(1)
38,890.60
49,347.23
$3,491,356.51
$ 88,237.83
Petty Cash Funds
U.S. Treasury bills, due June 21, 1990
Total
Certificates
of Deposit
$ 1,316,000.00
1,000,000.00
7,010,000.00
2,000,000.00
$11,326,000.0(~
(1) Includes Repurchase Agreement Balance of $3,480,000.00
Schedule 1
Total
$ 1,316,000.00
1,000,000.00
10,540,247.11
2,049,347.23
14,905,594.34
992,059.35
4,890.00
$15,902,543.69
-40-
CITY OF SALINA
Salina, Kansas
Schedule 2
COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY
December 31, 1989
Gross Cash Balances
Demand Deposit
Cash in checking
Time Deposits
Cash in NOW account
Certificates of
deposit
Total Time Deposits
Repurchase agreements
- Totals
Less FDIC Coverage
Demand deposits
Time deposits
Total FDIC Coverage
- Balances Securable
by Collateral
- Security required
(100%)
Security provided
by depositories
Amount Undersecured
by Statute
First National First Bank
Bank IV National Bank Bank and and Trust
-Salina, N.A. of America Trust Co.
$ $ 5,543.41 $ 775,477.26 $
38,890.60 50,973.30
1,316,000.00 1,000,000.00 7,010,000.00 2,000,000.00
1,316,000.00 1,000,000.00 7,048,890.60 2,050,973.30
3,480,000.00
1,316,000.00 1,005,543.41 11,304,367.86 2,050,973.30
5,543.41 100,000.00
100,000.00 100,000.00 100,000.00 100,000.00
100,000.00 105,543.41 200,000.00 100,000.00
$1,216,000.00 $ 900,000.00 $11,104,367.86 $1,950,973.30
$1,216,000.00 $ 900,000.00 $11,104,367.86 $1,950,973.30
1,816,906.05 1,095,449.22 13,491,727.81 2,017,031.95
$ $ $ $
-41-
CITY OF SALINA
Salina, Kansas
Schedule 3
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Year Ended December 31, 1989
Federal Grantor/ Unencumbered Unencumbered
Pass Through Federal Cash Balance Cash Balance
Grantor/ CFDA January 1, December 31,
Program Title Number. 1989 Receipts Expenditures 1989
- U.S. Department of
Housing and Urban
Development - Emergency
Shelter Grants Program
(Passed through De-
partment of Social and
Rehabilitation Services) 14.231 $ $ 4,008.00 $ 4,008.00 $
U.S. Department of Housing
and Urban Development -
Community Development
Block Grant/Small Cities
Program (Passed Through
Kansas Department of
Commerce)
Housing, Grant No.
87-HR-088
Housing, Grant No.
88-HR-027
14.219
8,000.00 8,000.00(1)
193,000.00 193,000.00
201,000.00 201,000.00
205,008.00 205,008.00
Total U.S. Department of Housing
and Urban Development
U.S. Department of Justice -
Bureau of Justice Assistance/
Criminal Justice Block
Grant Program (Passed
Through Kansas Bureau
of Investigation)
16.573
1,626.00
3,961.14
(2,335.14)
Total Federal Financial
Assistance
$
$206,634.00
$208,969.14
($2,335.14)
(1) Expenditures included $101.00 of funds returned to the Kansas Depart:ment of Commerce.
The above information does not include $86,900.00 of U.S. Department of Housing and Urban
Development Community Development Block Grant/Small Cities Program - Xetec, Grant No. 85-
BF-280 funds received from the subrecipient and returned to the Kansas Department of
Commerce during the year ended December 3l, 1989.
-42-
SEPARATE FINANCIAL STATEMENTS
WATER AND SEWERAGE DEPARTMENT
CITY OF SALINA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31, 1989 and 1988
KENNEDY AND COE
Certified Public Accountants
Salina, Kansas
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
HOME OFFICE:
P.O, BOX 1100
SALINA, KANSAS 67402.1100
913-825-1561
INDEPENDENT AUDITORS' REPORT
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
To the Mayor and
The Board of City Commissioners:
We have audited the balance sheets of the Water and Sewerage Department of the
City of Salina, Kansas, as of December 31, 1989 and 1988, and the related state-
ments of income and contributed capital and retained earnings for the years then
ended, the statement of cash flows for the year ended December 31, 1989, and
the statement of changes in financial position for the year ended December 31,
1988. These financial statements are the responsibility of the City's management.
Our responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
As discussed in Note 1, the financial statements present only the w"ater and Sewerage
Department and are not intended to present fairly the financial position of City of
Salina, Kansas, and the results of its operations, cash flows and changes in
financial position of its proprietary and similar trust fund types in conformity with
generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the Water and Sewerage Department of
the City of Salina, Kansas, as of December 31, 1989 and 1988, and the results of
its operations for the years then ended, its cash flows for the year ended December
31, 1989, and the changes in its financial position for the year ended December 31,
1988, in conformity with generally accepted accounting principles applied on a con-
sistent basis, except for the change, with which we concur, in the presentation of a
statement of cash flows in place of a statement of changes in financial position for
the year ended December 31, 1989, as described in Note 8 to the financial statements.
Respectfully submitted,
Salina, Kansas
September 7, 1990
~-L~
~,~ C.P.A.
Certified Public Accountant in charge
of and actively engaged on this audit.
-43-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
CITY OF SALINA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
BALANCE SHEETS
ASSETS
Current Assets
Cash and cash equivalents
Accounts receivable, net of
doubtful accounts - 1989,
Accrued interest receivable
Total Current Assets
allowance for
$61,003; 1988, $46,632
Restricted Assets
Cash and cash equivalents - Revenue bonds accounts
Construction
Current debt service
Reserves for future debt service
Depreciation and emergency replacement
Extension and bond retirement
Total Restricted Assets
Property, Plant, and Equipment
Land
Water plant and equipment
Sewerage plant and equipment
Furniture and office equipment
Construction in progress (Notes
4 and 6)
Less accumulated depreciation
Total Property, Plant, and Equipment
Other Assets
Prepaid supplies
Deferred bond issuance costs, net
accumulated amortization - 1989,
1988, $80,668
Total Other Assets
of
$101,632;
Totals
December 31,
1989 1988
$ 3,205,959
$ 1,650,617
441,763
32,592
3,680,314
382,459
22,807
2,055,883
1,314,563 493,615
522,999 409,200
1,049,703 714,868
350,000 350,000
979,758 979,758
4,217,023 2,947,441
323,322 291,939
17,421,979 17,003,660
10,641,741 10,605,126
360,088 315,816
2,775,494 1,030,510
31,522,624 29,247,051
15,163,127 14,575,944
16,359,497 14,671,107
269,204 213,453
138,004 154,393
407,208 367,846
$24,664,042 $20,042,277
The accompanying notes are an integral part
of these financial statements.
LIABILITIES
Current Liabilities
Accounts payable
Customers' meter deposits
Accrued interest payable
Accrued liability for compensated absences
Revenue bonds payable due within one year (Note 3)
Total Current Liabilities
Long-Term Obligations
Accounts payable, construction
Revenue bonds due after one year (Note 3)
Total Liabilities
Contributed Capital and Retained Earnings (Exhibit C)
Reserved retained earnings
Current debt service
Future debt service
Depreciation and emergency replacement
Extension and bond retirement
Total Reserved Retained Earnings
Contributed capital and unreserved retained
earnings
Total Contributed Capital and Retained
Earnings
Totals
Exhibit A
December 31,
1989 1988
$ 117,374 $ 50,442
66,335 63,610
149,005 103,917
146,476 146,517
425,000 325,000
904,190 689,486
271,950
6,295,000
7,471,140
153,996
3,785,000
4,628,482
522,999 409,200
1,049,703 714,868
350,000 350,000
979,758 979,758
2,902,460 2,453,826
14,290,442 12,959,969
17,192,902 15,413,795
$24,664,042 $20,042,277
-44-
CITY OF SALINA
Salina, Kansas
Exhibit B
WATER AND SEWERAGE DEPARTMENT
STATEMENTS OF INCOME
Operating Revenues
Water revenue
Sewerage revenue
Tapping, repair and other service revenue
Total Operating Revenues
Year Ended December 31,
1989 1988
$4,929,583 $4,130,483
1,294,645 1,230,075
76,036 127,607
6,300,264 5,488,165
115,737 97,441
966,673 978,339
205,860 195,329
439,858 466,097
320,910 347,412
1,068,559 717,534
641,937 618,647
790,128 792,601
4,549,662 4,213,400
1,750,602 1,274,765
233,334 155,932
93,864 93,864
327,198 249, 796
256,582 188,402
18,290 17,675
23,821 26,078
298,693 232,155
$1,779,107 $1,292,406
Operating Expenses
Water supply
Softening and treatment
Pumping
Distribution
Customers' accounting and collection
Administrative and general
Sewage treatment and collection
Depreciation
Total Operating Expenses
Operating Income
Other Income
Interest on invested cash
Miscellaneous
Total Other Income
Other Expenses
Interest on revenue bonds (Note 4)
Amortization of deferred bond issuance costs
Loss on retirement of assets
Total Other Expenses
Net Income
The accompanying notes are an integral part
of these financial statements.
-45-
CITY OF SALINA
Salina, Kansas
Exhibit C
WATER AND SEWERAGE DEPARTMENT
STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS
Balance, Beginning of Year
Year Ended December 31,
1989 1988
$15,413,795 $13,969,023
1,779,107 1,292,406
152,366
$17,192,902 $15,413,795
Additions
Net income for the year (Exhibit B)
Contributions of property, plant and equipment
Balance, End of Year
The accompanying notes are an integral part
of these financial statements.
-46-
CITY OF SALINA
Salina, Kansas
Exhibit D-l
WATER AND SEWERAGE DEPARTMENT
STATEMENT OF CASH FLOWS
Year Ended December 31, 1989
Cash Flows from Operating Activities
Operating income (Exhibit B)
Adjustments to reconcile operating income to
net cash provided by operating activities
Depreciation
Provision for uncollectible accounts receivable
Change in assets and liabilities
Accounts receivable
Prepaid supplies
Accounts payable
Customers' meter deposits
Accrued liability for compensated absences
Total Adjustments
Net Cash Provided by Operating Activities
$1,750,602
790,128
24,218
(83,522)
(55,751)
66,932
2,725
(41)
744,689
2,495,291
Cash Flows from Capital and Related Financing Activities
Proceeds from issuance of revenue bonds (including interest)
Acquisition and construction of capital assets
Principal paid on maturing revenue bonds
Interest paid on revenue bonds
Bond issuance costs paid
Miscellaneous income
Net Cash Used for Capital and Related Financing Activities
3,024,493
(2,281,933)
(390,000)
(522,156)
(4,575)
93,864
(80,307)
Cash Flows from Investing Activities
Interest on invested cash
409,940
Net Increase in Cash and Cash Equivalents
2,824,924
Cash and Cash Equivalents at Beginning of Year
4,598,058
Cash and Cash Equivalents at End of Year
$7,422,982
End of Year Cash and Cash Equivalents comprised of
Current
Restricted
$3,205,959
4,217,023
Total
$7,422,982
Noncash Capital and Financing Activities
Property, plant and equipment with a net book value of $23,821 was disposed of during
the year.
Deferred bond costs were amortized during the year as follows:
Capitalized as interest
Charged to other expenses
$
2,674
18,290
Total
$
20,964
The accompanying notes are an integral part
of these financial statements.
-47-
CITY OF SALINA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
STATEMENT OF CHANGES IN FINANCIAL POSITION
Year Ended December 31, 1988
Sources of Working Capital
From Operations
Net income (Exhibit B)
Charges against net income not affecting
working capital
Depreciation
Amortization of deferred bond issuance costs
Loss on dispositions of property, plant, and
equipment
Working capital provided by operations
Decrease in prepaid supplies
Decrease in restricted assets
Proceeds from sale of property, plant, and
equipment
Total Sources of Working Capital
Applications of Working Capital
Decrease in long-term obligations
Increase in bond issuance costs
Additions to property, plant, and equipment
Contributions
Increase in long-term construction accounts
Net Additions
Total Applications of Working Capital
$2,835,501
(152,366)
payable (153,996)
Increase in Working Capital
Changes in Components of Working Capital
Increase (Decrease) in Current Assets
Cash and investments
Accounts receivable
Accrued interest
Total Increase in Current Assets
Increase (Decrease) in Current Liabilities
Accounts payable
Customers' meter deposits
Accrued expenses
Long-term obligations due within one year
Total Increase (Decrease) in Current Liabilities
Increase in Working Capital
The accompanying notes are an integral part
of these financial statements.
Exhibit D-2
$1,292,406
792,601
17,675
26,078
2,128,760
21,720
1,769,929
6,649
3,927,058
325,000
38,753
2,529,139
2,892,892
$1,034,166
951,836
61,342
(46,959)
966,219
(98,173)
770
4,456
25,000
(67,947)
$1,034,166
-48-
1.
CITY OF SALINA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
NOTES TO FINANCIAL STATEMENTS
December 31, 1989 and 1988
Summary of Significant Accounting Policies
a.
Fund Accounting: The City maintains its accounting records in accordance
with the principles of fund accounting in order to ensure observance
of limitations and restrictions placed on the use of resources available.
Resources are classified for accounting and reporting into funds
established according to their nature and purposes. The Water and
Sewerage Department of the City of Salina is a separate fund of the
City which is supported by user charges from its customers rather than
by tax monies.
The Department uses the accrual method of accounting in the preparation
of its financial statements. Revenue is recorded as earned and expenses
as incurred.
b.
Deferred Issuance Costs: Deferred issuance costs are amortized to expense
over the term of the related revenue bonds.
c.
Property, Plant, and Equipment and Depreciation: Property, plant, and
equipment are stated at cost. Assets acquired prior to 1981 have been
adjusted to reflect cost as determined by a firm of professional
appraisers.
Interest is capitalized on property, plant and equipment acquired with
revenue bonds proceeds. The amount of interest capitalized is calculated
by offsetting interest expense incurred from the date of the borrowing
until completion of the project with interest earned on invested proceeds
over the same period.
Depreciation is determined using the straight-line method o,rer the
estimated useful life of each asset.
d.
Cash Equivalents: For purposes of the statement of cash flows, the
City considers all highly liquid investments (including rest:ricted
assets) with a maturity of six months or less when purchased to be
cash equivalents.
e.
Restricted Assets: Certain proceeds of revenue bonds, as well as
certain resources set aside for their repayment, are classified as
restricted assets on the balance sheet because their use is limited by
terms of applicable bond ordinances. The "construction" account includes
proceeds of revenue bond issuances that are restricted for use in
construction. The "current debt service" account is used to segregate
-49-
resources accumulated for debt service payments over the next twelve
months. The "reserves for future debt service" account is used to report
resources set aside to make up potential future deficiencies in the
revenue bond current debt service account. The "depreciation and emergency
replacement" account and the "extension and bond retirement" account are
resources set aside for operation, maintenance, repair, inprovement and
debt service purposes, as specified by certain bond ordinances.
2.
Cash and Cash Equivalents
The City of Salina invests funds in time certificates of deposit, repurchase
agreements, and United States Treasury bills or notes with maturities not
exceeding six months, all of which are authorized investments under Kansas
statutes.
Deposits or investments with qualifying financial institutions are to be
secured by a bond or by the pledge of certain types of securities specified
by statute. Cash deposits of the City of Salina with financial institutions
were 100% insured or collateralized by securities provided by such depository
financial institutions at December 31, 1989.
Cash and investments of the Water and Sewerage Department are
other funds of the City for deposit and investment purposes.
equivalents of the City included petty cash, cash in checking
accounts, repurchase agreements, certificates of deposit, and
bills as of December 31, 1989 and 1988.
pooled with
Cash and cash
and savings
U.S. Treasury
3.
Revenue Bonds Payable
Revenue bonds payable are comprised of the following:
December 31,
1989 1988
Combined Water and Sewage System Refunding
Revenue Bonds, Series of 1984 (the 1984
Bonds), matures serially each February 15
through 1994, remaining maturities bear
interest at rates varying from 9% to
9 3/4% per annum.
$1,280,000
$1,530,000
Combined Water and Sewage System Revenue
Bonds, Series of 1987 (the 1987 Bonds),
mature serially each October 1 through
2007, maturities bear interest at rates
varying from 7% to 8 1/2% per annum.
2,505,000
2,580,000
Combined Water and Sewage System Revenue
Bonds, Series 1988 (the 1988 Bonds),
mature serially each October 1 through
2008, maturities bear interest at rates
varying from 6% to 9 1/2% per annum
2,935,000
6,720,000
425,000
Less amounts due within one year
4,110,000
325,000
Amounts Due After One Year
$6,295,000
$3,785,000
-50-
Aggregate maturities of the above obligations in subsequent years are as follows:
Year
Amount
1990
1991
1992
1993
1994
Thereafter
$
425,000
350,000
485,000
530,000
355,000
4,575,000
Total Bonds Outstanding,
December 31, 1989
$6,720,000
The City has established certain reserve accounts pursuant to the 1984, 1987,
and 1988 bond ordinances to provide funds for the retirement of the bonds and
payment of interest thereon and for making replacements to the system in the
event other funds are not available. The gross revenues of the Department
are pledged to secure payment of the bonds; however, the pledge is subordinate
to a similar pledge to secure payment of certain defeased bonds.
The amounts required to be maintained in the reserve accounts established
by the 1984, 1987 and 1988 bond ordinances have been provided and the total
revenues of the system for 1989 appear sufficient to meet the requirements of
the ordinances.
In prior years, the City defeased certain revenue bond issues by placing the
proceeds of new bonds and cash and certain investments in irrevocable trusts
to provide for all future debt service payments on the old bonds. Ac-
cordingly, the trust accounts assets and the liability for the defeased
bonds are not included in the Department's financial statements. On
December 31, 1989, a total of $6,948,000 of revenue bonds outstanding are
considered defeased.
4.
Interest Cost
A summary of interest cost follows:
Interest Expense
Year Ended December 31,
1989 1988
$542,751 $352,119
(286,169) (163,717)
$256,582 $188,402
$286,169 $163,717
(186,391) (91,866)
$ 99,778 $ 71,851
Total interest cost
Capitalized interest cost
Capitalized interest cost
Related interest earned on unexpended
bond proceeds whose use is limited
Net Interest Cost Capitalized
-51-
5.
Defined Benefit Pension Plan
Substantially all full-time employees of the City of Salina participate in the
Kansas Public Employees Retirement System ("System"), a multiple-employer
public employees retirement system. The payroll for employees of the Water
and Sewerage Department covered by the System for the years ended December 31,
1989 and 1988, respectively, was $1,154,727 and $1,125,203; the total payroll
for the Department was $1,253,597 and $1,211,510.
Substantially all employees of the City of Salina are eligible to participate
in the System after one year of employment. Employees who retire at or after
age 65 are entitled to a retirement benefit, payable monthly for life, equal
to 1 percent of their final average salary for each year of "prior" service
and 1.25 to 1.5 percent for each year of "participating" service depending
upon the number of years of service. Final average salary is the employee's
average salary over the highest four years of credited service. Benefits
fully vest on reaching 10 years of service. Vested employees may retire at
age 55 to 65 with 10 years of credited service and receive reduced retire-
ment benefits. The system also provides death and disability benefits.
Benefits are established by State statute.
Covered employees are required by State statute to contribute 4% of their
salary to the plan; in addition, there are various options available to
covered employees, where the employees may make additional contributions.
The employer is required by the same statute to contribute the remaining
amounts necessary to pay benefits when due. The Water and Sewerage
Department's contribution requirement for the year ended December 31, 1989
was $77,218, which consisted of $22,805 from the employer and $54,413 from
employees; these contributions represented 2.0% and 4.7% of covered payroll,
respectively. The Water and Sewerage Department's contribution requirement
for the year ended December 31, 1988, was $84,968, which consisted of
$34,514 from the employer and $50,454 from employees; these contributions
represented 3.04% and 4.5% of covered payroll, respectively.
The "penson 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. The measure, ~hich is the
actuarial present value of credited projected benefits, is intended to help
users assess the System's funding status on a going-concern basis and assess
progress made in accumulating sufficient assets to pay benefits when due.
The System does not make separate measurements of assets and pe~asion benefit
obligation for individual employers. The pension benefit obligation at
January 1, 1989, for the System as a whole, determined through an actuarial
valuation performed as of that date, was $3.61 billion. The System's net
assets available for benefits on that date were estimated to be $3.03
billion, leaving an unfunded pension benefit obligation estimated at
$584 million.
Other information related to the system can be found in the System's 1989
comprehensive annual financial report.
-52-
6.
Commitments
The Department has entered into contractual commitments totaling $2,183,022 to
complete certain projects included in construction in process at December 31,
1989.
7.
Related Party Transactions
Transactions with other funds and departments of the City included in the
Statements of Income are summarized below.
Year Ended December 31,
1989 1988
Administrative and General Expense
Franchise fees
Overhead
$240,000
197,000
$110,000
Customers' Accounting and Collection
Data processing
53,500
54,500
The Department also paid $90,000 as its share of data processing equipment
purchased by the City of Salina, Data Processing Fund in 1988.
8.
Statement of Cash Flows
In accordance with Statement No.9 of the Governmental Accounting Standards
Board, issued in September, 1989, a Statement of Cash Flows is presented in
place of a Statement of Changes in Financial Position for the year ended
December 31, 1989. As permitted by the Statement, the City has elected not
to present a Statement of Cash Flows for the year ended December 31, 1988.
9.
Subsequent Bond Issue
The City issued $7,865,000 Combined Water and Sewage System Revenue Bonds
dated July 1, 1990, for the purpose of refunding the 1984, 1987 and 1988
bond issues and to finance certain improvements to the water and sewerage
system.
10.
Reclassification
Accounts payable related to construction of improvements to the water and
sewerage system have been reclassified from the prior presentation at
December 31, 1988, to non-current since this amount is payable from re-
stricted cash. Such reclassification had the effect of increasing working
capital by $153,996.
-53-
STATE OF KANSAS
DEPARTMENT OF ADMINISTRATION
DIVISION OF ACCOUNTS AND REPORTS
August 30, 1989
CITY OF SALINA -
CITY HALL
F.O. BOX 736
SALINA, KS 67401
In regard to the audit of : CITY OF SALINA, fiscal year
ending December 31 , 1989.
As provided by K.S.A. 75-1120a(c ) , I hereby waive the following
requirements of K.S.A. 75-1120a to the extent requested by
the governing body:
X GAAP-PRESCRIBED FINANCIAL STATEMENTS
GENERAL FIXED ASSETS ACCOUNTING ONLY
A waiver from generally accepted accounting principles-prescribed
(GAAP-prescribed ) financial statements permits a municipality to
prepare its financial statements on a basis of accounting which
demonstrates compliance with the cash basis and budget laws of
Kansas. Such a waiver automatically includes a waiver from general
fixed assets accounting because fixed assets accounting is a part
GAAF'. Because of the importance of public disclosure of -the
municipality' s financial condition , as well as the need for
additional information by users of the financial reports , such as
bond rating companies, we believe every municipality should work
toward the goal of presenting its financial statements in
conformity with generally accepted accounting principles. For many
municipalities, this would require only minor changes to the
accounting system. We urge you to work toward GAAF' compliance with
your auditor.
If we can be of any further assistance please don ' t hesitate to
contact the Municipal Accounting Section at 913-296-3436 .
Very truly yours,
James R. Cobler, Director
Division of Accounts and Reports
b VV '�•
Y
Chief , Municipal Accounting Section
< J
C I T Y • O F 1
sfLIna
Office of
City Clerk
Room 206
300 West Ash Street
PO.Box 736
Salina.KS 67402-0736 August 25, 1989
Telephone 1913)827-9653
James R. Cobler, Director
Division of Accounts and Reports
Municipal Accounting Section
Room 253 - Landon State Office Building
Topeka, KS 66612-1248
Dear Mr. Cobler:
Pursuant to Resolution Number 89-4114, adopted on August 21 ,
1989, the governing body found that financial statements and
financial reports prepared in conformity with generally accepted
accounting principles are not relevant to the requirements of the
cash basis law and budget laws of Kansas and are of no
significant value to the governing body or members of the general
public of this municipality.
The governing body hereby requests a waiver from the following
components of generally accepted accounting principles for the
fiscal year ended December December 31 , 1989 in accordance with
the provisions of K.S.A. 75-1120a.
GAAP - prescribed financial statements
General fixed assets accounting
Very truly yours,
°�`•�„a.. CtSt.:wa1_
Jacqueftine Shiever
City Clerk
•
JS/js
Enclosure: Resolution Number 89-4114
cc: Dave Mills, CPA
Kennedy and Coe, Certified Public Accountants
CITY CLERK P. O. Box 1 100
DIRECTOR OF FINANCE Salina, KS 67402-1100
ROBERT K.BILES.CPA
PERSONNEL DIRECTOR
M.E.ABBOTT MEMBER...LEAGUE OF KANSAS MUNICIPALITIES • NATIONAL LEAGUE OF CfES
RESOLUTION NUMBER 89-4114
A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS
AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE
PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS
PURSUANT TO K .S.A. 75-1120a, FOR THE YEAR 1989.
BE IT RESOLVED by the Governing Body of the City of Salina,
Kansas:
Section 1 . That the Board of Commissioners hereby finds that
financial statements ana financial reports prepared in conformity with generally
accepted accounting principles are not relevant to requirements of the cash basis
and budget laws of Kansas and are of no significance and value to the governing
body or the general public of the City of Salina.
Section 2. That the Director of Accounts and Reports is hereby
requested to waive the requirements of law relating to the preparation of
financial statements and financial reports that conform to generally accepted
accounting principles pursuant to K.S.A. 75-1120a.
Section 3. That this Resolution shall be in full force and effect from
and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this
21st day of August, 1969.
eI Warner, Mayor
[SEAL]
ATTEST:
Jacqueline Shiever, City Clerk
..
RESOLUTION NUMBER 89-4114
A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS
AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE
PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS
PURSUANT TO K.S.A. 75-1120a, FOR THE YEAR 1989.
BE IT RESOLVED by the Governing Body of the City of Salina,
Kansas:
Section 1 . That the Board of Commissioners hereby finds that
financial statements and financial reports prepared in conformity with generally
accepted accounting principles are not relevant to requirements of the cash basis
and budget laws of Kansas and are of no significance and value to the governing
body or the general public of the City of Salina.
Section 2. That the Director of Accounts and Reports is hereby
requested to waive the requirements of law relating to the preparation of
financial statements and financial reports that conform to generally accepted
accounting principles pursuant to K.S.A. 75-1120a.
Section 3. That this Resolution shall be in full force and effect from
and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this
21st day of August, 1969.
co ..
`. Or Warner, Mayor
I
[SEAL]
ATTEST:
Jacqueline Shiever, City Clerk
KENNEDY AND COE
• R.MICHAEL BEATTY.c v.A. CERTIFIED PUBLIC ACCOUNTANTS R.MICHAEL BEATTY.C.I.A.
MANAGING PARTNER PARTNEP4N.CHARGE
P.O.BOX 1100.SAUNA.RS 074024100 UNITED BUILDING P.0.BOX 1100
SALINA. KANSAS 67402-1100 ROBERT D.WILBUR.C.P.A.PARTNER
OFFICES ADLET E.JOHNSON.C V.A..PARTNER
913•825.1581 DON P.DIEDERICH.C.P.A..PARTNER
KANSAS: SCOTT CITY
ANTHONY SMITH CENTER FAX 913-B2S-5371 ALLEN WEBBER.C.P.A PARTNER
COLEY WICHITA GERALD L.HUNTER.C P.A.PARTNER
cONC On DIA NEBRASKA: RURTIS G.EIEMERS.C.P.A..PARTNER
GARDEN CITY MCCOOK DALE A.MEUSZEL.C.P.•..PARTNER
0000.AND OKLAHOMA: C SHANNON L.BUCHANAN.C.P.•.PARTNER
GREAT BEND ALVA August 1J, 19 89 SHARON K.SMITH.C.P.A..PARTNER
-
MARYSVRLE COLORADO:
PRATT LAMAR R.BARTON FARMER.PRINCIPAL
SALINA WESTMINSTER
RALPH E.REITZ.C.P A.IRETIREDI
JOHN W.PO05.C.P.A.IRETIREDI
The Honorable Mayor L.M.MERT.CA.(RETIRDI
L.M.HERTZ.C.P.A.NETIREp
and The City Commissioners PAUL A.MOTT.C.P.A.WETIREDI
City of Salina
Salina, Kansas 67401
We propose to audit the financial statements of the City of Salina, Kansas, for
the year 1989 listed on Appendix A. Our audits will be made in accordance with
generally accepted auditing standards adopted by the American Institute of
Certified Public Accountants, the Minimum Standard Audit Program approved by
the State Municipal Accounting Board, and the requirements of Office of
Management and Budget Circular A-128 and will include our examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. In addition, supplemental information (as listed in Appendix A) ,
presented for the purpose of additional analysis and not a required part of the
basic financial statements, will be subjected to the audit procedures applied
in the audit of the basic financial statements.
It is our understanding that the funds subject to OMB Circular A-128
requirements for 1989 are (1) Community Development Block Grants - Small Cities
Program - Housing Rehabilitation Grants and (2) Fair Housing Assistance
Program.
The scope of our audit will include all funds of the City except:
Salina Arts Commission
Salina Housing Authority
Salina - Saline County Board of Health
Saline County - City Building Authority
Salina Airport Authority
Firemen's Relief Association
It is our understanding that the above organizations have contracted for
separate audits of their operations.
The objective of our engagement is the completion of the foregoing audits and,
upon their completion and subject to their findings, the rendering of our
reports. As you know, the financial statements are the responsibility of the
management of the City who are primarily responsible for the data and
information set forth therein, as well as for the maintenance of an appropriate
internal control structure (which includes adequate accounting records and
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
The Honorable Mayor
and The City Commissioners
City of Salina
August 15, 1989
Page 2
procedures to safeguard the City's assets) . Accordingly, as required by
generally accepted auditing standards, our procedures will include obtaining
written confirmation from management concerning important representations which
we will rely upon.
As also required by generally accepted auditing standards, we will plan and
perform our audit to obtain reasonable, but not absolute, assurance about
whether the financial statements are free of material misstatement.
Accordingly, any such audit is not a guarantee of the accuracy of the financial
statements and is subject to the risk that errors, irregularities, or illegal
acts, if they exist, might not be detected. If we become aware of any such
matters during the course of our audit, we will bring them to your attention.
Should you then wish us to expand our normal auditing procedures, we would be
pleased to work with you to develop a separate engagement for that purpose.
Our fee for services rendered for the engagement described in the preceding
paragraphs will be computed at our standard billing rates for municipalities.
However, our fee for this engagement will not exceed $25,000. If our charges
at standard rates are less than this maximum fee, you will be charged the
lesser amount. Billings will be rendered for payment on a monthly basis so
that you may readily relate our charges to the work performed. The maximum fee
is based on the assumption that the City will obtain the appropriate waiver
from financial statements and reports prepared in accordance with generally
accepted accounting principles for the year ending December 31, 1989. In the
event laws are enacted or the State Municipal Accounting Board makes changes in
the audit requirements for Kansas municipalities, which in our judgment
materially increases the time required to perform the services set forth in
this contract, we reserve the right to renegotiate the maximum fee with the
City Commissioners.
In order to facilitate the efficient conduct of our work, we will provide the
Director of Finance our requirements for audit documentation, schedules and
analyses, and develop a schedule for when such information is to be available.
We will be happy to discuss any aspects of this proposal with you at your
convenience. If you are in agreement with the terms of this letter, please
sign the original and return it for our files. The copy is for your files. We
appreciate the opportunity to continue to work with you.
Very truly yours,
Certified Public Accountants
The Honorable Mayor
and The City Commissioners
City of Salina
August 15, 1989
Page 3
Accepted this 11 day of ,, 1989.
ditI . - • ist,_ t
_ - tff y of Salina, Kansas
w w
City CAerk - City of Salina, Kansas
CITY OF SALINA
SALINA, KANSAS
Appendix A
FINANCIAL STATEMENTS TO BE AUDITED BY KENNEDY AND COE
FOR THE YEAR ENDED DECEMBER 31, 1989
I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS,
MODIFIED BY RECORDING ENCUMBRANCES
SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND
COMPARISON OF CASH BALANCES WITH ENCUMBRANCES
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH
BALANCES COMPARED WITH BUDGET
NOTES TO FINANCIAL STATEMENTS
II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE
COMPOSITION OF ENDING CASH BALANCES
COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
SEPARATE FINANCIAL STATEMENTS - WATER
AND SEWERAGE DEPARTMENT
BALANCE SHEET
STATEMENT OF INCOME
STATEMENT OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS
STATEMENT OF CHANGES IN FINANCIAL POSITION OR STATEMENT OF CASH FLOWS,
AS APPLICABLE
NOTES TO FINANCIAL STATEMENTS
KENNEDY AND COE
P MICHAEL BEni:v.c P♦ CERTIFIED PUBLIC ACCOUNTANTS
°-MICN•EL aunv.c.P•
MANAGING PARTNER
ART NEPiN L»•aGE
e O BO. I LOD.s•LUl•.RS 67•02-1100 UNITED BUILDING P.O.BOX 1100
OFFICES SALINA. KANSAS 67402-1100 RoBERTD.WILBUR.C P•.PARTNER
•DLEY E.JOHNSON.C P•.PARTNER
913 6251561 CON P DIEOERIC N.CP•,PARTNER
KANSAS: SCOTT CITY
ANTHONY SHOW CENTER FAX 913.925-5371 ALLEN WEBBER.C.P•..PARTNER
COLBY WICHITA GERALD L.HUNTER.C P•.PARTNER
.
concoaaA NEBRASKA: URTIS G.SIEMEPS,C P•.PARTNER
GARDEN CITY MCCOOR TALE A.HEV SZEL.C.P.•.PARTNER
GOODLAND OKLAHOMA: AllgUS t 18, 1989 SHANNON L.BUCHANAN,C P....PARTNER
GREAT BEND ALVA - SHARON A.SMITH.CP.•..PARTNER
HARTSVILLE COLORADO:
PRATT LAM•p
_.e•RTON FARMER.P R IHaP.L
S Wn• WESTMINSTER
R• PH E.REITZ.CP•.,PE:IRLDI
JOHN W.PO05,C P.•.IRETIREDI
T.SHE•.C.•A.IRETIREDI
The Honorable Mayor L.M.MERi:.EP..IP EiIREP
and The City Commissioners nut•.MOTT,C P.• IRETIREDI
City of Salina
Salina, Kansas 67401
We propose to audit the financial statements of the City of Salina, Kansas . for
the year 1989 listed on Appendix A. Our audits will be made in accordance with
generally accepted auditing standards adopted by the American Institute of
Certified Public Accountants, the Minimum Standard Audit Program approved by
the State Municipal Accounting Board, and the requirements of Office of
Management and Budget Circular A-128 and will include our examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. In addition, supplemental information (as listed in Appendix A) ,
presented for the purpose of additional analysis and not a required part of the
basic financial statements, will be subjected to the audit procedures applied
in the audit of the basic financial statements.
It is our understanding that the funds subject to OMB Circular A-128
requirements for 1989 are (1) Community Development Block Grants - Small Cities
Program - Housing Rehabilitation Grants and (2) Fair Housing Assistance
Program.
The scope of our audit will include all funds of the City except:
Salina Arts Commission
Salina Housing Authority
Salina - Saline County Board of Health
Saline County - City Building Authority
Salina Airport Authority
Firemen's Relief Association
It is our understanding that the above organizations have contracted for
separate audits of their operations.
The objective of our engagement is the completion of the foregoing audits and,
upon their completion and subject to their findings, the rendering of our
reports.. As you know, the financial statements are the responsibility of the
management of the City who are primarily responsible for the data and
information set forth therein, as well as for the maintenance of an appropriate
internal control structure (which includes adequate accounting records and
MEMBERS OF:AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
The Honorable Mayor
and The City Commissioners
City of Salina
August 15, 1989
Page 2
procedures to safeguard the City's assets) . Accordingly, as required by
generally accepted auditing standards, our procedures will include obtaining
written confirmation from management concerning important representations which
we will rely upon.
As also required by generally accepted auditing standards, we will plan and
perform our audit to obtain reasonable, but not absolute, assurance about
whether the financial statements are free of material misstatement.
Accordingly, any such audit is not a guarantee of the accuracy of the financial
statements and is subject to the risk that errors, irregularities, or illegal
acts, if they exist, might not be detected. If we become aware of any such
matters during the course of our audit, we will bring them to your attention.
Should you then wish us to expand our normal auditing procedures, we would be
pleased to work with you to develop a separate engagement for that purpose.
Our fee for services rendered for the engagement described in the preceding
paragraphs will be computed at our standard billing rates for municipalities.
However, our fee for this engagement will not exceed $25,000. If our charges
at standard rates are less than this maximum fee, you will be charged the
lesser amount. Billings will be rendered for payment on a monthly basis so
that you may readily relate our charges to the work performed. The maximum fee
is based on the assumption that the City will obtain the appropriate waiver
from financial statements and reports prepared in accordance with generally
accepted accounting principles for the year ending December 31, 1989. In the
event laws are enacted or the State Municipal Accounting Board makes changes in
the audit requirements for Kansas municipalities, which in our judgment
materially increases the time required to perform the services set forth in
this contract, we reserve the right to renegotiate the maximum fee with the
City Commissioners.
In order to facilitate the efficient conduct of our work, we will provide the
Director of Finance our requirements for audit documentation, schedules and
analyses, and develop a schedule for when such information is to be available.
We will be happy to discuss any aspects of this proposal with you at your
convenience. If you are in agreement with the terms of this letter, please
sign the original and return it for our files. The copy is for your files. We
appreciate the opportunity to continue to work with you.
Very truly yours,
-
i
Certified Public Accountants
The Honorable Mayor
and The City Commissioners
City of Salina
August 15, 1989
Page 3
Accepted this I i day of S„l. w , 1989.
Ai Alf.
i
M- 7. - ' y of Salina, Kansas
_t a«, ,.a_. �..0 cv w
City Clerk - City of Salina, Kansas
•
CITY OF SALINA
SALINA, KANSAS
Appendix A
FINANCIAL STATEMENTS TO BE AUDITED BY KENNEDY AND COE
FOR THE YEAR ENDED DECEMBER 31, 1989
I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS,
MODIFIED BY RECORDING ENCUMBRANCES
SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND
COMPARISON OF CASH BALANCES WITH ENCUMBRANCES
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH
BALANCES COMPARED WITH BUDGET
NOTES TO FINANCIAL STATEMENTS
II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE
COMPOSITION OF ENDING CASH BALANCES
COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
SEPARATE FINANCIAL STATEMENTS - WATER
AND SEWERAGE DEPARTMENT
BALANCE SHEET
STATEMENT OF INCOME
STATEMENT OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS
STATEMENT OF CHANGES IN FINANCIAL POSITION OR STATEMENT OF CASH FLOWS,
AS APPLICABLE
NOTES TO FINANCIAL STATEMENTS
CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
9/11 /89 4 :00 P.M.
AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR
NO. 8 Department of Finance AGENDA:
ITEM
ND. 5
' BY: Robert K. Biles /J„..gt BY:
•
Resolution Number 89-4120, authorizing the Mayor to execute and the City Clerk
to attest an agreement between the City of Salina and Kennedy and Coe, Certified
Public Accountants for an audit of city records for the year ending December 31 ,
1989, in an amount not to exceed $25,000.
The accounting firm of Kennedy and Coe has presented the City with a proposal
to audit the 1989 financial statements for an amount not to exceed $25,000. The
proposal is attached.
Due to the conversion of the accounting data to a new accounting system, staff
believes the continuance of the relationship with Kennedy-and Coe will be of
benefit to the auditor and the City in terms of time required by both parties
involved.
Recommended action
Accept the proposal from Kennedy and Coe to audit the 1989 financial statements,
and adopt Resolution Number 89-4120, authorizing the Mayor to sign the contract.
•
COMM ISSION ACTION
MOTION BY SECOND BY
TO:
KENNEDY AND COE
R MICHAEL BETTY.C •.
u•N•GINO PARTNER
CERTIFIED PUBLIC ACCOUNTANTS R mEL BEATT r,c P•
•RTNTNER•IN.CHARGE
O.BOr 1I GO.SAUNA,KS 69.02-1I0J UNITED BUILDING P.O. BOX 1100
OFFICES SALINA. KANSAS 67402-1100 ROBERT O.WRBUR.CPA_PARTNER
913 1325-1561 AOLEV E.JOHNSON.C P.•.PARTNER
KANSAS: DON P.DIEDERICH,C P.A.PARTNER
SCOTT CITY
ANTHON, SMITH CENTER FAX 913-825-5371 ALLEN WEBBER.C.P•
COLBY WICHITA GERALD L"HUNTER.C.P•.PARTNER
CONCORDIA NEBRASKA: KURTIS G.SIEVERS,CPA_PARTNER
GARDEN CITY MCCOOR DALE• HEUSZEL.C P.•.PARTNER
0000LAND OKLAHOMA:
August 15, 1989 SHANNON L.BUCHANAN,C.P.A PARTNER
GREAT BEND •LV•
SH•PDH R.SMITH.C.P.A..PARTNER
MARVSVILLE COLORADO:
PR•TT LAMAR
R.B•RTON FARMER,PRINCIPAL
SAUNA WESTMINSTER
RALPH E.REITZ.C.P.A.IRETIREOI
JOHN W.P005.C.P.A.(RETIRED,
The Honorable Mayor E.T.SHEA.C PA IRETIREDI
L.M.MERTZ.C.P•.(RETIRED,
and The City Commissioners PAL.A.MOTT.C.P•.IRETIREDI
City of Salina
Salina, Kansas 67401
We propose to audit the financial statements of the City of Salina, Kansas, for
the year 1989 listed on Appendix A. Our audits will be made in accordance with
generally accepted auditing standards adopted by the American Institute of
Certified Public Accountants, the Minimum Standard Audit Program approved by
the State Municipal Accounting Board, and the requirements of Office of
Management and Budget Circular A-128 and will include our examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. In addition, supplemental information (as listed in Appendix A) ,
presented for the purpose of additional analysis and not a required part of the
basic financial statements, will be subjected to the audit procedures applied
in the audit of the basic financial statements .
It is our understanding that the funds subject to OMB Circular A-128
requirements for 1989 are (1) Community Development Block Grants - Small Cities
Program - Housing Rehabilitation Grants and (2) Fair Housing Assistance
Program.
The scope of our audit will include all funds of the City except:
Salina Arts Commission
Salina Housing Authority
Salina - Saline County Board of Health
Saline County - City Building Authority
Salina Airport Authority
Firemen's Relief Association
It is our understanding that the above organizations have contracted for
separate audits of their operations.
The objective of our engagement is the completion of the foregoing audits and,
upon their completion and subject to their findings, the rendering of our
reports. As you know, the financial statements are the responsibility of the
management of the City who are primarily responsible for the data and
information set forth therein, as well as for the maintenance of an appropriate
internal control structure (which includes adequate accounting records and
MEMBERS OF:AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
The Honorable Mayor
and The City Commissioners
City of Salina
August 15, 1989
Page 3
Accepted this _ day of , 1989.
Mayor - City of Salina, Kansas
City Clerk - City of Salina, Kansas
CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
7/21/1989 11 :00 P.M.
AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR
NO. 8 AGENDA:
Department of Finance
ITEM
N0. Z •
BY: Robert K. Riles BY: `�
Receive and review the 1989 audit report from Kennedy and Coe.
Included in this week's information packet is a copy of the 1988 audit report.
This report includes the auditor's opinion in seven different areas, the financial
statements for the year, notes to the financial statements and supplemental
information. Please note their opinion on page 1 which states the financial
statements are presented fairly. This is, of course, our goal as a department.
Representatives from Kennedy and Coe will be at the meeting to discuss this
report. We have attached staff responses to the auditor's comments and findings.
Recommended action
Accept the 1988 audit report.
•
COMM SSION ACTION
MOTION BY SECOND BY
TO:
r.
SnLinn
Office of
City Clerk
Room 206
300 West Ash Street
P.O-Box 736
Salina,KS TO: Dennis M. Kissinger, City Manager
Telephone e(913)(913)827-9653 g y g
FROM: Robert K. Biles, Director of Finance
SUBJECT: 1988 Audit report comments
DATE: July 18, 1989
On page 36 of the 1988 audit report, in Note 8 to
the financial statements, the auditors point to two apparent
statutory violations.
The first occurs in the Bond and Interest Fund.
As you will recall, we discussed this with the Commission during
the 1989 budget process. At that time, we explained the violation
would occur due to the issuance of the 1987 downtown bonds on a
level principal basis rather than a level debt service basis. The
level principal basis was very well received by the purchasers
and resulted in an extremely good (low) bid for the bonds. As
shown on page 20 of the report, cash available at December 31 ,
1988 exceeded $351 ,000. Thus, adequate funds were available to
meet the additional expenditure.
The second apparent violation is in the area of
depository security on cash deposits. When investments are
made, the successful bidder for our funds determines whether he
meets the statutory guidelines for depository security, In those
instances where the institution must acquire more depository
security, the City receives a commitment letter from the financial
institution to provide the necessary security. Usually, within two
days, the formal depository security is given to the City
Treasurer and is dated the date of its issuance rather than the
date the commitment letter is dated. We are discussing this with
each financial institution.
CITY CLERK
DIRECTOR OF FINANCE
ROBERT K.BILES,CPA
PERSONNEL DIRECTOR
M.E.ABBOTT MEMBER...LEAGUE OF KANSAS MUNICIPALITIES • NATIONAL LEAGUE OF CRES
CI T Y • O '-F i page 2
saunana The second reason a shortfall was recorded involved the cost of
demolition of dilapidated structures. It was anticipated that such
Department of Planning work would cost $10,000. Before the project was bid, several
and Community Development property owners completed repairs and/or removal , thus reducing the
Oty-County Building number of structures to be demolished by the City. Finally, an
300 West Ash Street extremely favorable bid was received from a local contractor
PD.Box736 ($2,630) . The very nature of such work makes cost estimating
Salina,KS 67402-0736
Telephone(913)827-8781 extremely difficult.
Salina City Planning Commission Although the actual expenditures from sources comprising local
Salina Board of Zoning Appeals
Salina City Heritage Commission matching funds did not equal budgeted amounts, the shortfall was very
slight (5.3%) and could have been reached by recording a larger
match from one source - NCRPC weatherization.
Please advise if you have any questions or need additional
information.
RD/ms
MEMBER...LEAGUE OF KANSAS MUN1C7PALJI ES • NATIONAL LEAGUE OF CMES
RESOLUTION NUMBER 89-4120
1 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE
II CITY CLERK TO ATTEST AN AGREEMENT BETWEEN THE CITY OF SALINA AND
� KENNEDY AND COE, CERTIFIED PUBLIC ACCOUNTANTS, FOR AN AUDIT OF
� CITY RECORDS FOR THE YEAR ENDING DECEMBER 31 , 1989, FOR A COST NOT
11 TO EXCEED TWENTY-FIVE THOUSAND DOLLARS ($25,000) .
BE IT RESOLVED by the Governing Body of the City of Salina,
I' Kansas: _
Section 1 . That the Mayor and City Clerk of the City of Salina are
it
hereby authorized to execute an agreement between the City of Salina and
1! Kennedy and Coe, Certified Public Accountants for an audit of city records for
it
ii the year ending December 31 , 1989, at a cost not to exceed Twenty-five
Thousand Dollars ($25,000) .
1 Adopted by the Board of Commissioners and signed by the Mayor this
11th day of September, 1989.
o .c l of
ph Warner, Mayor
(i [SEAL]
Ii ATTEST:
it
iiJacque! ne Shiever, City Clerk
•
II
STATE OF KANSAS )
) SS
COUNTY OF SALINE )
I , Jacqueline Shiever, City Clerk of the City of Salina, Kansas, do
hereby certify that Resolution Number 89-4120 was adopted by the Board of
Commissioners at its regular meeting on September 11 , 1989, and that the above
and foregoing is a true and correct copy of the original on file in my office.
WITNESS my hand and official seal this 12th day of September, 1989.
I' [SEAL] •
1 wew�
Jacqueline Shiever, City Clerk
CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
10/15/90 4:00P.M.
AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR
NO. 8 Department of Finance AGENDA:
ITEM
NO. 3
BY: Robert K. Giles BY: vy
Receive and review the 1989 Audit report from Kennedy and Coe.
Included in this week's information packet is a copy of the 1989 audited financial
statements and the auditor's report on those statements (pages 1 and 2) . Several
other reports required by government auditing standards and the Federal
Government are included in pages 3 through 10. Following the financial
statements, notes to the financial statements and the supplemental information, the
auditors have presented a separate report on the Water and Sewerage accrual
basis financial statements. This is required by our revenue bond covenants.
Representatives from Kennedy and Coe will be in attendance to discuss their
report. We have attached responses to the auditor's comments and findings.
Recommended action
Accept the 1989 Audit Report.
COMI SSION ACTION
MOTION BY SECOND BY
TO:
A -
i re
_
m:- (V #c
.: . ?ii..`'
4 C 1 T Y • O F '
sauna
Office of
City Clerk
Suite 206
300 West Ash Street
P.O. Box 736
Salina.KS 67402-0736 TO: Dennis M. Kissinger, City Manager
Telephone(913)527-9653
FROM: Robert K. Biles, Director of Finance and
Administration
SUBJECT: 1989 Audit report comments
DATE: October 10, 1990
As a part of each year's audit report, the auditors are required
to comment on material internal control weaknesses or statutory
violations which might have come to their attention. The 1989
audit report describes 6 areas on pages 4 and 36 which will
require our attention.
Page 4
The first item notes the bank statements have not been reconciled
on a timely basis. We have had problems in this area; however,
we have the bank statement reconciliations current for 1990 and
will be allowing sufficient staff time each month to perform this
reconciliation on a monthly basis.
The second item notes encumbrances were not recorded for a
portion of 1989. As we installed our software in 1989 , we
intentionally did not record encumbrances from May 1 to
September 1 to allow us to adequately train personnel in the basic
software operation before adding the purchase order module. All
remaining encumbrances incurred during that period were
recorded in September. Recording of encumbrances has occurred
since then. We also had a problem after year-end with properly
applying payments to outstanding 1989 encumbrances. With the
Salina auditors guidance and additional personnel training, I believe this
Mari has been rectified.
ALI.IMERICA CITY
I I I II / The third comment relates to the clarity of explanations attached
to the journal entries we make. We upgraded our explanations
1489 shortly after the auditors brought this to our attention.
CITY CLERK
JACQUELINE R SHIEVER.CMC
DIRECTOR OF FINANCE
ROBERT K.BILES.CPA
PERSONNEL DIRECTOR
M.E.ABBOTT MEMBER. ..LEAGUE OF KANSAS MUNICIPALITIES • NATIONAL LEAGUE OF CT7ES
f1 .
Dennis M. Kissinger
October 10, 1990
Page 2
Page 36
The first violation relates to the statutory requirement in K .S.A.
12-1608 that the City publish a financial statement each
quarter. These have not been published since the third quarter
of 1989. Subsequent to our meeting with the auditors today, you
directed me to prepare the financial statements for each of the
quarters and publish them along with the September 1990
statement. Work has begun and we will do our best to meet the
publishing date of the 20th with all five statements. You also
directed me to oversee the preparation and publication of future
financial statements as an addition to my current duties. I will
ensure this is done.
The second comment corresponds to one discussed above and has
been corrected. The third violation relates to the closing of the
Parking Meter Fund's balance of $34.60 to the General Fund.
Rather than carry the balance for over a year until a formal
budget for the transfer could be established, I made the transfer
in 1989 in order to close the fund.
Please let me know if you need any additional information
regarding these items.
CITY OF
SALINA, KANSAS
City Attorney 129 South 8th
Greg A.Bengtson P.O.Boa 380
(913)823-6325 Salina,KS 67402-0380
August 8, 1990
Kennedy nd Coe
P.O. x 1100
Salizra, Kansas 67402-1100
-- Re: Audit of City of Salina, Kansas
Dear Auditors:
The following is my response to your request for information on
matters to which I have devoted substantive attention on behalf
of the City in the form of legal consultation or representation.
This response includes matters that existed at December 31, 1989,'
and during the period from that date to the date above.
PENDING OR THREATENED LITIGATION, CLAIMS AND ASSESSMENTS
(EXCLUDING UNASSERTED CLAIMS AND ASSESSMENTS)
1. Claim by John P. Bengtson. On October 5, 1989, John P.
Bengtson, through his counsel, David R. Platt of Junction City,
Kansas, filed a claim under the Kansas Tort Claims Act alleging
that during the early morning hours of April 17 , 1989, he was
taken from his home to the Salina Police Department for
questioning against his will. The claim alleged monetary damages
of $20, 000 for "false arrest, false imprisonment, illegal search
and seizure, violation of constitutional rights and numerous
other theories in tort. " On February 6, 1990, the matter was
settled by the City' s police liability carrier for $6, 000 with a
$5, 000 deductible.
2 . EPA v. City of Salina. In September of 1989 the City of
Salina was advised of administrative proceedings initiated by the
Environmental Protection Agency seeking to assess a penalty of
$55, 000 for alleged violation of the Clean Water Act regarding
implementation of its pretreatment ordinance. The exchange of
information regarding the status of the pretreatment program and
negotiations with EPA resulted in a penalty assessment of
$25, 000, which was paid by the City in January, 1990.
3 . James Peoples v. City of Salina, et al. , Case No. 88-4280-S,
Federal District Court. Plaintiff, a former firefighter, alleged
Kennedy and Coe
Page 2
August 8 , 1990
that he was discriminated against due to his race and physical
handicap in his termination from employment as a firefighter.
The suit was filed November 22 , 1988, against the City of Salina,
Fire Chief Tom Girard, Personnel Director Mel Abbott, and then
acting City Manager Bill Harris seeking reinstatement as well as
compensatory and punitive damages. On March 20, 1990, the Court
entered its order upholding the City's motion for summary
judgment on all counts. No appeal was taken by the plaintiff.
The case is now closed.
4 . Jim Vint v. City of Salina, et al. , Case No. 90-1190-C,
Federal District Court. On April 4, 1990, Plaintiff brought an
action seeking damages in excess of $50, 000 and for an order
enjoining the City' s allegedly "unconstitutional practice of
arresting people without have probable cause to believe they have
committed a crime. " The matter was referred to insurance defense
-- counsel under the City' s police liability policy. The case was
settled on approximately July 24 , 1990, for the monetary sum of
$7, 620, to which a $5, 000 deductible applied.
5. Claims by Billy L. Walter, Douglas Chegwidden, and Barbara
Wicks. On the evening of May 13 and into the morning hours of
May 14 , 1989, Billy L. Walter, Douglas Chegwidden, and Barbara
Wicks were involved in a matter with the Salina Police
Department. In February, 1990, separate claims were filed by
each through their counsel, Richard F. Waters, Junction City,
Kansas. All three claims have been submitted to the City's
police liability carrier, subject to a $5, 000 deductible and an
exclusion from coverage for any award of punitive damages. It is
my understanding that these claims are not under negotiation by
the insurance carrier at this time; however, suit has not been
filed. The following is an outline of each claim.
A. Chegwidden. On February 27 , 1989 , the City received a claim
on behalf of Douglas Chegwidden alleging that he was
physically and mentally assaulted and battered by members of
the Salina Police Department, both on a street and at the
police station. He also claims to have been illegally
arrested and unlawfully imprisoned. The claim seeks actual
damages of $350, 000 and punitive damages of $1, 000, 750. 00.
B. Walter. On February 28 , 1989 , the City received a claim on
behalf of Billy L. Walter alleging the same theory and
damages as the claim by Billy L. Walter.
C. Wicks. On February 28, 1989 , the City received a claim on
behalf of Barbara A. Wicks alleging the same theory as the
claim by Billy L. Walter. The claim alleges actual damages
of $200, 000 and punitive damages of $750, 000.
6. Claim by John and Sharon Swan, and Swans Formal Wear, Inc. ,
d/b/a/ J.B. Enterprises. On February 18 , 1989, the Swans were
Kennedy and Coe
Page 3
August 10, 1990
scheduled to have a sale of bridal merchandise at one of the
local motels. At 9 : 00 a.m. that morning the sale was closed down
by the Salina police department since the Swan's did not have a
license for itinerant merchants. At 11: 45 a.m. that same morning
the Swans were advised that their sale did not require a license
and that they could resume. On June 23 , 1989 , the Swans filed a
claim against the City through their counsel, Les E. Diehl of
Topeka, Kansas. The claim alleged total damages of $32, 360 for
additional advertising, lost profits, and damage to business
reputation.
The matter was referred to the City's police liability
carrier, subject to a $5, 000 deductible. After lengthy
negotiations the City was advised by letter from its insurance
carrier dated August 13 , 1990, that the matter was settled for
$11, 350.
7. Randall Leiker v. City of Salina, John Woody, Don Poore and
Hector Saniurio, Case No. 90-2219-V, Federal District Court.
Leiker alleges that on August 9, 1989, the City through its
employee, police officer Don Poore, deprived him of his
constitutional rights by the "unjustified use of excessive force"
during his arrest following a high speed chase from Salina into
Ottawa County. Both officer Poore and Kansas Highway Patrolman
Hector Sanjurjo were involved in the arrest. Then Police Chief
John Woody is also a named defendant on the basis of his
responsibility for the training and supervision of Salina police
officers. Leiker alleges actual damages of $250, 000 and requests
punitive damages of $1, 500, 000.
Defense of the suit has been assumed by the City' s police
liability carrier, subject to a $5, 000 deductible and an
exclusion from coverage for any award of punitive damages. The
case is in the early discovery stages. The civil proceedings are
somewhat complicated by criminal charges that have been brought
against both Officer Poore and Patrolman Sanjurjo by the Ottawa
County Attorney. Officer Poore is charged with misdemeanor
battery and felony terroristic threat. Officer Poore is
represented by his own private counsel in the criminal case.
The City through its insurance defense counsel is contesting
the case at this time. Shortly after the incident, an internal
investigation by the City resulted in a determination that
Officer Poore had used excessive force and a three day suspension
was imposed. Since the case is in the very early stages of
discovery and since the criminal proceedings are currently
pending, any effort to indicate prospects for settlement or the
amount of exposure at this time would be purely conjecture.
Kennedy and Coe
Page 4
August 10, 1990
UNASSERTED CLAIMS AND ASSESSMENTS:
This will confirm my understanding that whenever, in the
course of performing legal services for the City of Salina with
respect to a matter recognized to involve an unasserted possible
claim or assessment that may call for financial statement
disclosure, if I have formed a professional conclusion that the
City should disclose or consider disclosure concerning such
possible claim or assessment, as a matter of professional
responsibility to the City, I will so advise the City and will
consult with the City concerning the question of such disclosure
and the applicable requirements of Statement of Financial
Accounting Standards No. 5.
Please let me know if you have any questions.
Very truly yours,
URINAL if
GREG A. 1_,..;,.,;01\1
Greg A. Bengtson
City Attorney
GAB
cc: Robert K. Biles, Director of Finance .
„t
i C I T Y
S O F
ALina
Office of June 26, 1990
City Clerk
Suite 206
300 West Ash Street
P.O.Box 736 Mr. Greg Bengtson
Salina,KS 67402-0736 City Attorney
Telephone(913)827-9653 P.O. Box 380
Salina, KS 67402-0380
Dear Mr Bengtson:
In connection with an audit of our financial statements at December 31 ,
1989, and for the year then ended, please furnish to our auditors,
Kennedy and Coe, P.O. Box 1100, Salina, Kansas 67402-1100, the
information requested below involving matters as to which you have
devoted substantive attention on behalf of the City in the form of legal
consultation or representation. Your response should include matters
that existed at December 31 , 1989, and during the period from that
date to the effective date of your response. (Please specify the
effective date of your response if it is other than the date of reply) .
PENDING OR THREATENED LITIGATION , CLAIMS AND ASSESSMENTS
(EXCLUDING UNASSERTED CLAIMS AND ASSESSMENTS) :
Please furnish a list of all litigation, claims and assessments (excluding
unasserted claims and assessments) asserted against the City even
though legal proceedings have not started. Information regarding each
case should include but not be limited to:
1 . The nature of the litigation including identification of:
a. The proceedings
b. The claim(s) asserted
c. The amount of monetary or other damages sought. ( If
no amounts are stated in preliminary case filings, please
so state. )
d. Whether or not the potential damages are covered by
insurance and, if so, to what extent (policy limits,
deductibles, etc. )
Salina e. The objectives sought by the plaintiff (if any) other
WOW than monetary or other damages (such as performance
Au4YmIGlrm or discontinued performance of certain actions. )
I I2. The progress of the case to date (in the process of
II !' discovery, trial or appeal.)
CITY CLERIC 3. How the City is responding or intends to respond to the
JACQUELINE B SHIEVER,CMC litigation, e.g. , to contest the case vigorously or to seek
out-of-court settlement.
DIRECTOR OF FINANCE
ROBERT K.BILES,CPA
PERSONNEL DIRECTOR
M.E.ABBOTT MEMBER.. .LEAGUE OF KANSAS MUNICIPALITIES • NATIONAL LEAGUE OF CITIES
Mr. Greg Bengtson
City Attorney
June 26, 1990
Page 2
4. Your evaluation of the likelihood of an unfavorable outcome.
(To avoid potential misunderstandings of your opinion,
please avoid vague phrases such as or similar to "meritorious
defense," "without substantial merit," or "reasonable chance
of dismissal.") If no opinion can be expressed, please so
state and explain the reasons.
5. An estimate as to the amount or range of potential loss. It
is important that you express an upper limit on possible and
probable losses. If no range or upper limits can be
expressed, please so state and explain the reasons.
Also, please identify any pending or threatened litigation, claims and
assessments with respect to which you have been engaged, but as to
which you have not yet devoted substantive attention.
UNASSERTED CLAIMS AND ASSESSMENTS:
We understand that whenever, in the course of performing legal
services for us with respect to a matter recognized to involve an
unasserted possible claim or assessment that may call for financial
statement disclosure, if you have formed a professional conclusion that
we should disclose or consider disclosure concerning such possible
claim or assessment, as a matter of professional responsibility to us,
you will so advise us and will consult with us concerning the question
of such disclosure and the applicable requirements of Statement of
Financial Accounting Standards No. 5. Please specifically confirm to
our auditors that our understanding is correct.
We have advised our auditors that we are aware of no unasserted
claims and assessments which shall be disclosed.
Please specifically identify the nature of and reasons for any limitation
on your response.
Please return your response directly to our auditors in the enclosed
return envelope.
Very truly yours,
Robert K. Biles
Director of Finance
RKB/sp
cc: Kennedy and Coe
P.O. Box 1100
Salina, KS 67402-1100 City Attorney
STATE OF KANSAS
DEPARTMENT OF ADMINISTRATION
DIVISION OF ACCOUNTS AND REPORTS
October 17, 1990
KENNEDY & COE
P.O. BOX 1100
SALINA, KS 67402-1100
In reoard to the audit of : CITY OF SALINA
The following described audit report has been filed as a.-
public record in the office of the Director of Accounts
and Reports as required by K.S.A. 75-1124.
Audit Period (Year Ended ) : 891231
Date Received in This Office: 901017
Certified Public Accountant in Charge of Audit:
DAVID J . MILLS, CPA Permit No. : 2682
Very truly yours.
James R. Cobler, Director
Division of Accounts and Reports
by e�.l6�c-
Chief , Municipal Accounting Section
This copy to be attached to voucher and filed with clerk of municipality.
AR-102 ( 10-1-87)