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Audit - 1981 CITY OF SALINA Salina, Kansas REPORT ON EXAMINATION December 31, 1981 KENNEDY AND COE Certified Public Accountants Salina, Kansas Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit A Exhibit B Exhibit C Exhibit D CITY OF SALINA Salina, Kansas TABLE OF CONTENTS Page ACCOUNTANTS' OPINION 1 SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUM- BRANCES 2-3 STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET 4-20 STATEMENT OF BONDED INDEBTEDNESS 21 COMPOSITION OF ENDING CASH BALANCES 22 COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY 23 Notes to Financial Statements 24-26 SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT ACCOUNTANTS' OPINION 27 BALANCE SHEET 28 INCOME STATEMENT 29 STATEMENT OF CONTRIBUTIONS AND RETAINED EARNINGS 30 STATEMENT OF CHANGES IN FINANCIAL POSITION 31 Notes to Financial Statements 32 Table of Contents MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND CaE HOME OFFICE: P. O. BOX I 179 CERTIFIED PUBLIC ACCOUNTANTS SALINA. KANSAS 67401 913-B25-1561 OFFICES IN KANSAS NEBRASKA OKLAHOMA To the Mayor and The Board of City Commissioners: We have examined the financial statements of the City of Salina, Kansas for the year ended December 31, 1981, included herein on pages 2 to 26. Our examination included all funds and account groups except . Saline County-City Building Authority, Salina-Saline County Board of Health, and Salina Public Library, which we have previously examined and reported on separately. . Firemen's Relief Association, Salina Recreation Commission, and the Salina Airport Authority, which were examined by other auditors who issued their separate reports. Our examination was made in accordance with generally accepted auditing standards and the Minimum Standard Audit Program approved by the State Municipal Accounting Board and, accordingly, included such tests of the accounting records and such other audit- ing procedures as we considered necessary in the circumstances. The City of Salina maintains its accounting records and prepares its financial state- ments on the cash basis, modified by recording encumbrances. As discussed in Note 1, this basis of accounting and presentation differs in some respects from generally accepted accounting principles. Accordingly, the accompanying financial statements are not intended to present financial position and results of operations in conform- ity with generally accepted accounting principles. The City of Salina has not recorded its obligations to the Kansas Public Employees Retirement Fund as of December 31, 1981 and 1980, for the fourth quarter expense which, in our opinion, should be recorded as an encumbrance in order to conform with the City's method of accounting. If such obligations were recorded, the unencumbered cash balances of the City would decrease by $231,835.52 at January 1, 1981, and $211,804.81 at December 31, 1981, and expenditures would decrease $20,030.71 for the year 1981. In our opinion, except for the effects of not encumbering the obligations as dis- cussed in the preceding paragraph, the accompanying financial statements present fairly the cash and unencumbered cash balances of the City of Salina" Kansas at December 31, 1981, and its receipts and expenditures for the year then ended in accordance with the method of accounting described in the preceding paragraph, which method has been applied in a manner consistent with that of the preceding year. Respectfully submitted, Salina, Kansas July 9, 1982 ~.~W ~~ LJ,~ C.P.A. Certified Public Accountant in charge of and actively engaged on this audit. -1- 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, 1981 Fund General Fund Special Revenue Funds Emergency Preparedness Street Machinery Special Gasoline Tax Federal Revenue Sharing Special Reserve Alcohol Safety Action Program Emergency Jobs Act Tourism and Convention Promotion Employee Benefit Fund Utility Fund Special Parks and Recreation Special Alcohol Programs Special Liability Fund Bicycle Safety 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 Events Fund (Note 6) Water and Sewerage Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Water and Sewerage Reserve Accounts for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Depreciation and Emergency Replacement Extension and Bond Retirement UnencuÍnbered Cash Balance January 1, 1981 $ 413,659.32 76.68 89,322.90 1,681. 64 29,392.68 40,949.39 4,831. 53 1,214.27 71,178.69 137,192.40 106,640.47 4,303.30 19,080.40 119,882.15 58,538.19 13,059.77 107,561.13 6,314.09 127,517.82 21,438.09 329,259.24 6,777.89 715,977.20 480,750.10 429,404.50 199,040.04 Receipts $ 4,892,734.93 77,107.24 39,384.39 413,271. 43 452,816.00 1,994.76 12,537.55 13,445.34 107,298.16 1,612,357.17 374,957.78 54,877.66 54,877.65 93,192.95 4,872.36 2,062,820.61 2,175,343.20 122,412.65 569,331.83 101,356.73 532,579.37 205,400.62 3,419,041.82 426,144.84 442,479.12 56,985.96 49,941.57 55,290.58 Exhibit A Unencumbered Cash Balance Cash Balance Encumbrances December 31, 1981 Expenditures December 31, 1981 December 31, 1981 (Exhibit D) $ 4,552,526.72 $ 753,867.53 $ 51,47 9. 90 $ 805,347.43 78,857.93 (1,674.01) 138.50 (1,535.51) 16,084.45 112,622.84 112,622.84 374,921.77 40,031. 30 3,583.63 43,614.93 374,818.83 107,389.85 9,975.54 117,365.39 42,944.15 42,944.15 17,369.08 14,659.61 94,824.33 83,652.52 83,652.52 1,493,068.75 256,480.82 256,480.82 362,153.70 119,444.55 119,444.55 35,540.00 19,337.66 19,337.66 35,540.00 23,640.95 23,640.95 51,000.00 61,273.35 61,273.35 7,325.16 (2,452.80) (2,452.80) 1,992,812.81 189,889.95 65,455.42 255,345.37 1,658,676.99 575,204.40 597.10 575,801.50 122,274.24 13,198.18 1,463.20 14,661. 38 515,594.31 161,298.65 161,298.65 101,084.23 6,586.59 4,675.06 11,261.65 495,572.63 164,524.56 7,203.82 171,728.38 155,563.75 71,274.96 71,274.96 3,320,745.30 427,555.76 75,603.11 503,158.87 400,301.20 32,621.53 32,621.53 278,827.50 879,628.82 879,628.82 19,063.28 35,481. 48 537,736.06 460,282.79 218,849.14 537,736.06 460,282.79 218,849.14 -2- 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, 1981 Fund Unencumbered Cash Balance January 1, 1981 Intragovernmental Fund Central Garage $ 23,390.83 Trust and Agency Funds Citizenship Trust HUD Community Development Cemetery Endowment Mausoleum Trust Mausoleum Endowment State Witholding Tax 12,574.82 172,597.37 48,1l8.5l 17,505.17 Totals (Memorandum Only) $3.809.230.58 See accompanying notes to financial statements which are an integral part hereof. Receipts $ 495,289.03 872.33 250,354.51 6,040.76 490.00 70.00 121, 972.30 $19.299.943.20 Expenditures $ 500,505.79 315,609.17 121,972.30 $17.542.775.31 Unencumbered Cash Balance December 31, 1981 $ 18,174.07 13,447.15 107,342.71 54,159.27 490.00 17,575.17 $5.566.398.47 Encumbrances December 31, 1981 $ 97.16 $220,272.44 Exhibit A (Contd.) Cash Balance December 31, 1981 (Exhibit D) $ 18,271.23 13,447.15 107,342. 71 54,159.27 490.00 17,575.17 $5,786.670.91 -3- CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1981 (Over) Under Actual Budget Budget $1,451,189.34 $1,463,307.00 $ 12,117.66 453,784.85 400,000.00 (53,784.85) 240,222.82 207,700.00 02,522.82) 25,618.32 31,000.00 5,381.68 1l,543.29 10,400.00 (1,143.29) 54,877.65 35,540.00 (19,337.65) 196,900.41 199,780.00 2,879.59 136,121.43 138,000.00 1,878.57 2,093.20 7,200.00 5,106.80 3,090.00 3,100.00 10.00 149,433.63 162,020.00 12,586.37 325,818.00 414,000.00 88,182.00 745,898.82 691,500.00 (54,398.82) 8,846.79 9,530.00 683.21 607,805.28 150,000.00 (457,805.28) 141,504.38 311,780.00 170,275.62 81,342.40 55,000.00 (26,342.40) 23,735.24 17,000.00 (6,735.24) 232,909.08 215,540.00 (17,369.08) 4,892,734.93 4,522,397.00 070,337.93) GENERAL FUND Receipts Current tangible tax Current intangible tax Vehicle tax Delinquent taxes Bingo gross receipts tax City liquor tax Sales tax State shared taxes Auto dealers tax stamps Highway maintenance Licenses, fees and permits Municipal court fines Franchise taxes Rents and concessions Interest from investments Services and sales Fire protection - Outside city Reimbursement of expenditures Transfers from other funds Total Receipts limits Expenditures Department City Commission City Manager City Clerk City Attorney Hunicipal Court City Building Engineering Fire Inspection Park Police Street* Human Relations Animal Shelter Traffic Swimming Pools Administration and Planning Insurance and Contingencies Arts Commission Cemetery 173,493.39 66,730.78 181,572 . 10 40,466.14 36,346.47 100,728.03 1l3,607.58 1,142,253.72 67,982.81 294,083.50 1,243,637.15 461,490.43 40,045.59 41,439.81 64,323.34 39,955.19 98,827.53 104,135.00 55,429.10 52,961.19 171 , 830 . 00 66,330.00 182,420.00 40,800.00 57,820.00 103,950.00 125,570.00 1,172,230.00 75,500.00 289,510.00 1,353,840.00 467,870.00 39,810.00 41,890.00 64,710.00 36,400.00 lll,960.00 70,300.00 55,430.00 52,450.00 Exhibit B (1,663.39) (400.78) 847.90 333.86 21,473.53 3,221. 97 1l,962.42 29,976.28 7,517.19 (4,573.50) 1l0,202.85 6,379.57 (235.59) 450.19 386.66 0,555.19) 13,132.47 03,835.00) .90 (511.19) -4- CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1981 Exhibit B (Contd.) (Over) Under Budget GENERAL FUND (CONTD.) Expenditures (Contd.) Department (Contd.) General Improvement $ 31,921. 01 $ 36,650.00 $ 4,728.99 Floodworks 42,868.46 50,840.00 7,971.54 Neighborhood Centers 58,228.40 68,890.00 10,661. 60 Total Expenditures 4,552,526.72 4,737,000.00 184,473.28 Receipts Over (Under) Expenditures 340,208.21 (214,603.00) (554,811.21) Unencumbered Cash Balance, January 1 413,659.32 214,603.00 (199,056.32) Unencumbered Cash Balance, December 31 $ 753.867.53 $ ($753.867.53) Actual Budget *Street Department expenditures include transfers to the Street Hachinery Fund of $38,000.00 EMERGENCY PREPAREDNESS (Note 2) Receipts Other apportionments and grants Hatching funds from the State of Kansas Reimbursement of expenditures Total Receipts $ 51,340.00 22,255.07 3,512.17 77,107.24 42,744.74 20,509.44 3,742.75 103.00 1l,758.00 78,857.93 (1,750.69) 76.68 ($ 1.674.01) Expenditures Personal services Contractual services Haterials and supplies Sundry expenditures Capital outlay Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance (Deficit), December 31 (Note 7) -5- CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET Year Ended December 31, 1981 Exhibit B (Contd.) (Over) Under Actual Budget Budget STREET MACHINERY (NOTE 2) Receipts Interest from investments $ 1,384.39 Transfer from General Fund 38,000.00 Total Receipts 39,384.39 Expenditures Capital outlay 16,084.45 Revenues Over (Under) Expenditures 23,299.94 Unencumbered Cash Balance, January 1 89,322.90 Unencumbered Cash Balance, December 31 $ 112.622.84 SPECIAL GASOLINE TAX Receipts Special gasoline tax $ 413 ,271. 43 $ 375,000.00 ($ 38,271.43) Expenditures Personal services 29,335.61 33,850.00 4,514.39 Contractual services 83,207.96 80,000.00 (3,207.96) Materials and supplies 82,378.20 81,150.00 (1,228.20) Transferred to General Fund 180,000.00 180,000.00 Total Expenditures 374,921. 77 375,000.00 78.23 Receipts Over (Under) Expenditures 38,349.66 (38,349.66) Unencumbered Cash Balance, January 1 1,681. 64 2,392.00 710. 36 Unenc umbered Cash Balance, December 31 $ 40.031. 30 $ 2,392.00 ($ 37.639.30) -6- CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUHBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1981 (Over) Under Actual Budget Budget FEDERAL REVENUE SHARING Receipts Grants from Federal government $ 452,816.00 $ 375,000.00 ($ 77,816.00) Expenditures Contractual service 13,600.00 10,000.00 (3,600.00) Transfers to Bicentennial Center 250,000.00 250,000.00 Transfers to Construction Fund 6,000.00 6,000.00 Capital outlay 105,218.83 109,000.00 3,781.17 Total Expenditures 374,818.83 375,000.00 181.17 Receipts Over Expenditures 77,997.17 (77,997.17) Unencumbered Cash Balance, January 1 29,392.68 (29,392.68) Unencumbered Cash Balance, December 31 $ 107.389.85 $ ($107,389.85) SPECIAL RESERVE (NOTE 2) Receipts Interest from investments $ 1, 994. 76 Expenditures Receipts Over Expenditures 1,994.76 Unencumbered Cash Balance, January 1 40,949.39 Unencumbered Cash Balance, December 31 $ 42,944.15 ALCOHOL SAFETY ACTION PROGRAH (NOTE 2) Receipts Reimbursement of expenditures Expenditures Transfers to other funds $ 12,537.55 17,369.08 (4,831.53) 4,831. 53 $ Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 -7- CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET Year Ended December 31, 1981 EMERGENCY JOBS ACT (NOTE 2) Receipts Grants from Federal government Expenditures Personal services Contractual services Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 TOURISM AND CONVENTION PROMOTION (NOTE 2) Receipts Transient guest tax Expenditures Professional services Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 EMPLOYEE BENEFIT FUND Receipts Current tangible taxes Delinquent taxes Auto dealers tax stamps Interest on investments Employees contributions to Kansas Firemen's and Policemen's Retirement Fund Social security contributions Employees retirement contributions Unemployment insurance contributions Reimbursement of expenditures Vehicle tax Total Receipts Actual (Over) Under Budget Budget $ 13 ,445. 34 1l,741.65 2,917.96 14,659.61 (1,214.27) 1,214.27 $ ---- $ 107,298.16 94,824.33 12,473.83 71,178.69 $ 83,652.52 $ 954,040.80 $ 962,667.00 $ 8,626.20 10,112.82 7,000.00 (3,112.82) 1,380.38 2,930.00 1,549.62 18,684.50 18,000.00 (684.50) 135,083.91 135,000.00 (83.91) 211,784.75 197,000.00 (14,784.75) 114,486.60 116,000.00 1,513.40 120.67 400.00 279.33 8,517.16 1,000.00 (7,517.16) 158,145.58 86,040.00 (72,105.58) 1,612,357.17 1,526,037.00 (86,320.17) -8- CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET Year Ended December 31, 1981 EMPLOYEE BENEFIT FUND (CONTD.) Expenditures Public officials and employee liability insurance Social security Police and fire retirement Employees retirement Group insurance Unemployment insurance Workman's compensation Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 UTILITY FUND Receipts Current tangible taxes Delinquent taxes Auto dealers tax stamps Interest on investments Vehicle taxes Total Receipts Expenditures Gas service Light and power service Water service Traffic control signals Street lighting Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 Actual $ 6,221.52 326,989.12 686,408.13 211,111. 28 188,306.46 3,422.24 70,610.00 1,493,068.75 119,288.42 137,192.40 $ 256.480.82 $ 314,013.07 5,431. 94 451. 55 3,077.82 51,983.40 374,957.78 28,295.55 60,109.78 20,168.34 22,751.33 230,828.70 362,153.70 12,804.08 106,640.47 $ 1l9,444.55 Budget $ 9,800.00 360,000.00 689,500.00 215,000.00 199,000.00 12,300.00 68,000.00 1,553,600.00 (27,563.00) 27,563.00 $ $ 316,545.00 2,400.00 1,550.00 3,000.00 45,570.00 369,065.00 52,000.00 80,000.00 16,000.00 28,000.00 259,000.00 435,000.00 (65,935.00) 65,935.00 $ (Over) Under Budget $ 3,578.48 33,010.88 3,091.87 3,888. 72 10,693.54 8,877.76 (2,610.00) 60,531.25 (146,851. 42) (109,629.40) ($256.480.82) $ 2,531.93 (3,031. 94) 1,098.45 (6,413.40) (77.82) (5,892.78) 23,704.45 19,890.22 (4,168.34) 5,248.67 28,171.30 72,846.30 (78,739.08) (40,705.47) ($119.444.55) -9- CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1981 Actual SPECIAL PARKS AND RECREATION Receipts City liquor tax $ 54,877.66 Expenditures Transfer to General Fund 35,540.00 Receipts Over Expenditures 19,337.66 Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ 19.337.66 SPECIAL ALCOHOL PROGRAMS Receipts City liquor tax $ 54,877.65 Expenditures Contractual services 35,540.00 Receipts Over Expenditures 19,337.65 Unencumbered Cash Balance, January 1 4,303.30 Unencumbered Cash Balance, December 31 $ 23,640.95 SPECIAL LIABILITY FUND Receipts Current tangible taxes Delinquent tangible taxes Auto dealers tax stamps Transfers from other funds Vehicle taxes Total Receipts $ 61,814.57 744.70 89.61 20,300.00 10,244.07 93,192.95 Expenditures Liability insurance Professional services Total Expenditures 51,000.00 51,000.00 Receipts Over Expenditures 42,192.95 Unencumbered Cash Balance, January 1 19,080.40 Unencumbered Cash Balance, December 31 $ 61.273.35 Budget $ 35,540.00 35,540.00 $ $ 35,540.00 35,540.00 $ $ 62,900.00 240.00 19,000.00 6,860.00 89,000.00 58,000.00 20,000.00 78,000.00 $ 11,000.00 18,000.00 $ 29.000.00, Exhibit B (Contd.) (Over) Under Budget ($ 19,337.66) (19,337.66) ($ 19.337.66) ($ 19,337.65) (19,337.65) (4,303.30) ($ 23,640.95) $ 1,085.43 (744.70) 150.39 (1,300.00 ) (3,384.07) (4,192.95) 7,000.00 20,000.00 27,000.00 ($ 31,192.95) (1,080.40) ($ 32.273.35) -10- CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEHENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET Year Ended December 31, 1981 BICYCLE SAFETY (NOTE 2) Receipts Reimbursement of expenditures Expenditures Contractual services Materials and supplies Capital outlay Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance (Deficit), December 31 (Note 7) BOND AND INTEREST Receipts Current tangible taxes Delinquent tangible taxes Current special assessment taxes Delinquent special assessment taxes Auto dealers tax stamps Interest from investments Accrued interest on bonds sold Special assessments Transfers from parking meters, water and sewerage, and golf course funds Vehicle taxes Total Receipts Expenditures General bond principal General bond interest Curb, gutter and paving principal (City share) Curb, gutter and paving principal (Property owner share) Curb, gutter and paving interest (City share) Curb, gutter and paving interest (property owner share) Actual Budget $ 4,872.36 2,745.89 1.427.74 3,151.53 7,325.16 (2,452.80) (Over) Under Budget ($ 2.452.80) $1,029,587.64 $1,038,353.00 $ 8,765.36 13,946.76 12,000.00 (1,946.76) 694,500.88 635,450.00 (59,050.88) 24,011.56 20,000.00 (4,011.56) 1,483.82 3,900.00 2,416.18 56,474.22 30,000.00 (26,474.22) 7,399.35 2,000.00 (5,399.35) 3,000.00 3,000.00 64,850.00 64,850.00 170,566.38 114,300.00 (56,266.38) 2,062,820.61 1,923,853.00 (138,967.61) 585,000.00 585,000.00 340,850.54 343,550.00 2,699.46 164,202.98 165,950.00 1,747.02 606,797.02 605,100.00 (1,697 . 02) 45,850.64 48,160.00 2,309.36 249,436.38 266,420.00 16,983.62 -11- 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, 1981 BOND AND INTEREST (CONTD.) Expenditures (Contd.) Fiscal agency commission and postage $ 320.25 $ 1,000.00 $ 679.75 Estimated interest - Bonds to be issued 355.00 50,000.00 49,645.00 Total Expenditures 1,992,812.81 2,065,180.00 72,367.19 Receipts Over (Under) Expenditures 70,007.80 (141,327.00) (211,334.80) Unencumbered Cash Balance, January 1 1l9,882.l5 141,327.00 21,444.85 Unencumbered Cash Balance, December 31 $ 189.889.95 $ ($189.889.95) Budget (Over) Under Budget Actual CONSTRUCTION FUND (NOTE 2) Receipts Special assessments and charges Issuance of bonds Total Receipts $ 159,343.20 2,016,000.00 2,175,343.20 Expenditures 1,658,676.99 Receipts Over (Under) Expenditures 515,666.21 Unencumbered Cash Balance, January 1 58,538.19 Unencumbered Cash Balance, December 31 $ 575,204.40 GOLF COURSE Receipts Membership and green fees Cart rental Cart storage Cart user fees Oil well lease Total Receipts $ 106,933.00 $ 99,000.00 ($ 7,933.00) 1,014.00 3,500.00 2,486.00 3,217.50 4,800.00 1,582.50 9,935.00 9,000.00 (935.00) 1,313.15 5,000.00 3,686.85 122,412.65 121,300.00 (1,112.65) 55,080.35 55,910.00 829.65 26,300.71 25,330.00 (970.71) 23,859.00 23,300.00 (559.00) 15,060.00 15,060.00 1,974.18 3,230.00 1,255.82 122,274.24 122,830.00 555.76 -12- Expenditures Personal services Contractual services Materials and supplies Transfer to other funds Capital outlay Total Expenditures 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, 1981 Actual GOLF COURSE (CONTD.) Receipts Over (Under) Expenditures $ 138.41 ($ Unencumbered Cash Balance, January 1 13 ,059. 77 Unencumbered Cash Balance, December 31 $ 13.198.18 SANITATION Receipts Interest from investments Þliscellaneous sales and services Service fees Reimbursement of expenditures Total Receipts $ 4,430.08 2,305.44 561,000.00 1,596.31 569,331.83 Expenditures Personal services Contractual services Haterials and supplies Capital outlay Total Expenditures 266,387.35 128,363.41 105,135.22 15,708.33 515,594.31 Receipts Over Expenditures 53,737.52 Unencumbered Cash Balance, January 1 107,561.13 Unencumbered Cash Balance, December 31 $ 161. 2 98.65 PARKING METERS Receipts Parking meter receipts Parking meter permits Reimbursement of expenditures Total Receipts $ 86,416.73 14,860.00 80.00 101,356.73 Expenditures Personal services Contractual services Materials and supplies Transfers to Debt Service Fund Capital outlay Total Expenditures 38,230.31 13,585.67 11,478.25 37,790.00 101,084.23 Budget 1,530.00) ($ 2,596.00 $ 1.066.00 $ 5,000.00 300.00 644,100.00 649,400.00 341,950.00 149,490.00 101, 390.00 23,000.00 615,830.00 33,570.00 71,130.00 $ 104.700.00 $ 88,000.00 15,000.00 103,000.00 39,670.00 20,060.00 6,960.00 37,790.00 600.00 105,080.00 (Over) Under Budget 1, 668.41) (10,463.77) ($ 12.132.18) $ 569.92 (2,005.44) 83,100.00 (1, 596.31) 80,068.17 75,562.65 21,126.59 (3,745.22) 7,291.67 100,235.69 (20,167.52) (36,431.13 ) ($ 56.598.65) $ 1,583.27 140.00 (80.00) 1,643.27 1,439.69 6,474.33 (4,518.25) 600.00 3,995.77 -13- CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET Year Ended December 31, 1981 (Over) Under Actual Budget Budget PARKING HETERS (CONTD.) Receipts Over (Under) Expenditures $ 272.50 ($ 2,080.00) ($ 2,352.50) Unencumbered Cash Balance, January 1 6,314.09 8,490.00 2,175.91 Unencumbered Cash Balance, December 31 $ 6.586.59 $ 6.410.00 ($ 176.59) BICENTENNIAL CENTER Receipts Rent $ 1l4,476.98 $ 110,000.00 ($ 4,476.98) Concessions 159,831. 43 200,000.00 40,168.57 Reimbursement of expenditures 6,602.77 (6,602.77) Transfers from Federal Revenue Sharing Fund 250,000.00 250,000.00 Interest income 1,668.19 (1,668.19) Total Receipts 532,579.37 560,000.00 27,420.63 Expenditures Personal services 229,454.98 264,100.00 34,645.02 Contractual services 171,398.47 189,700.00 18,301. 53 Materials and supplies 34,949.60 33,750.00 (1,199.60) Sundry expenditures 59,769.58 102,450.00 42,680.42 Total Expenditures 495,572.63 590,000.00 94,427.37 Receipts Over (Under) Expenditures 37,006.74 00,000.00) (67,006.74) Unencumbered Cash Balance, January 1 127,517.82 40,291. 00 (87,226.82) Unencumbered Cash Balance, December 31 $ 164.524.56 $ 10.291. 00 ($154.233.56) SOLID WASTE DISPOSAL Receipts Income from leased land $ 37,120.62 $ 15,000.00 ($ 22,120.62) Service fees 168,227.50 182,000.00 13,77 2.50 Reimbursement of expenditures 52.50 (52.50) Total Receipts 205,400.62 197,000.00 (8,400.62) Expenditures Personal services 59,044.35 78,100.00 19,055.65 Contractual services 22,619.12 26,620.00 4,000.88 Haterials and supplies 53,900.28 62,730.00 8,829.72 Sundry expenditures 20,000.00 20,000.00 Total Expenditures 155,563.75 187,450.00 31,886.25 -14- CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET Year Ended December 31, 1981 SOLID WASTE DISPOSAL (CONTD.) Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 WATER AND SEWERAGE FUND Receipts Water Sewerage Sanitation fees Tapping and front footage service Service charge - Sanitation department Miscellaneous income Sales tax collections Heter deposits Reserve for Extension and Bond Re- tirement Reserve for Depreciation and Emergency Computer cost reimbursement Fire hydrant reimbursements Total Receipts Expenditures Water supply Softening and treatment Pumping Distribution Customer accounting and collection Administrative and general Sewage treatment and collection Bond ordinance requirements Transfer to Sanitation Department Capital expenditures Sales tax remitted Heter deposits refunded Other refunds to customers Reserve for Extension and Bond Re- tirement Reserve for Depreciation and Emergency Total Expenditures $ (Over) Under Actual Budget Budget 49,836.87 $ 9,550.00 ($ 40,286.87) 21,438.09 28,875.00 7,436.91 71 . 2} 4. 96 $ 38.425.00 ($ 32.849.96) $ $2,116,095.79 $2,025,000.00 ($ 91,095. 79) 643,442.69 680,000.00 36,557.31 562,812.91 472,500.00 (90,312.91) 16,041. 91 14,000.00 (2,041. 91) 11 , 685 . 00 7,000.00 (4,685.00) 8,461.51 10,000.00 1,538.49 13,583.68 40,000.00 26,416.32 37,250.00 30,000.00 (7,250.00) 200,000.00 200,000.00 200,000.00 200,000.00 7,710.00 (7,710.00) 1,958.33 (1,958.33) 3,419,041.82 3,678,500.00 259,458.18 57,037.20 55,420.00 (1,617.20) 597,135.24 573,950.00 (23,185.24) 142,965.66 127,420.00 (15,545.66) 196,120.10 188,700.00 (7,420.10) 256,508.42 238,470.00 (18,038.42) 422,015.38 481,450.00 59,434.62 481,312.22 468,790.00 (12,522.22) 389,965.34 394,000.00 4,034.66 561,000.00 472 ,500.00 (88,500.00) 162,513.73 300,000.00 137,486.27 13,583.68 40,000.00 26,416.32 27 , 984 .19 30,000.00 2,015.81 12,604.14 (12,604.14) 200,000.00 200,000.00 200,000.00 200,000.00 3,320,745.30 3,770,700.00 449,954.70 -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, 1981 WATER AND SEWERAGE FUND (CONTD.) Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 (Note 5) Unencumbered Cash Balance, December 31 BOND FUND FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1978 (NOTE 2) Receipts Interest from investments Transfers from Water and Sewage Fund Total Receipts Expenditures Bond principal Bond interest Total Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1978 (NOTE 2) Receipts Interest from investments Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 Actual Budget (Over) Under Budget $ 98,296.52 ($ 92,200.00) ($190,496.52) 329,259.24 174,300.00 (154,959.24) $ 427.555.76 $ 82.100.00 ($345.455.76) $ 52,513.78 389,965.34 442,479.12 1,000.00 277,827.50 278,827 .50 163,651. 62 715,977.20 $ 879.628.82 $ 56,985.96 56,985.96 480,750.10 $ 537,736.06 -16- CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1981 RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM DEPRECIATION AND EMERGENCY REPLACEMENT (NOTE 2) Receipts Interest from investments Expenditures Repairs and improvements Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 RESERVE ACCOUNT FOR COMBINED AND SEWAGE SYSTEM EXTENSION BOND RETIREMENT (NOTE 2) Receipts Interest from investments WATER AND Expenditures Repairs and improvements Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 CENTRAL GARAGE (NOTE 2) Receipts Reimbursement of expenditures Transfer from other funds Total Receipts Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures Actual Budget $ 49,941.57 19,063.28 30,878.29 429,404.50 $ 460.282.79 $ 55,290.58 35,481. 48 19,809.10 199,040.04 $ 218.849.14 $ 485,589.03 9,700.00 495,289.03 89,547.60 33,935.28 365,200.92 7,729.03 4,092.96 500,505.79 Exhibit B (Contd.) (Over) Under Budget -17- CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1981 CENTRAL GARAGE (NOTE 2) (CONTD.) Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 CITIZENSHIP TRUST (NOTE 2) Receipts Interest from investments Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 HUD COMMUNITY DEVELOPMENT (NOTE 2) Receipts Grants from Federal government Interest from investments Collection of housing and winteri- zation loans - Principal and interest Total Receipts Expenditures Personal services Contractual services Materials and supplies Housing and winterization and grants Capital outlay Total Expenditures loans Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 Actual Budget ($ 5,216.76) 23,390.83 $ 18,174.07 $ 872.33 872.33 12,574.82 $ 13,447.15 $ 220,848.41 5,245.99 24,260.1l 250,354.51 44,1l4.42 25,779.39 3,370.66 174,339.81 68,004.89 315,609.17 (65,254.66) 172,597.37 $ 107.342.71 Exhibit B (Contd.) (Over) Under Budget -18- CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1981 CEMETERY ENDOWMENT (NOTE 2) Receipts Interest from investments Perpectual care deposits Total Receipts Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 MAUSOLEUM TRUST (NOTE 2) Receipts Sale of mausoleum space Expenditures Sales proceeds remitted to District Court Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 MAUSOLEUM ENDOWMENT (NOTE 2) Receipts Sale of mausoleum space Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 Actual Budget $ 2,765.76 3,275.00 6,040.76 6,040.76 48,118.51 $ 54.159.27 $ 490.00 490.00 $ 490.00 $ 70.00 70.00 17,505.17 $ 17.575.17 Exhibit B (Contd.) (Over) Under Budget -19- CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1981 Actual Budget STATE WITHHOLDING TAX (NOTE 2) Receipts State witholding tax deductions $ 121,972.30 Expenditures State witholding tax deductions remitted 121,972.30 Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ See accompanying notes to financial statements which are an integral part hereof. Exhibit B (Contd.) (Over) Under Budget -20- Purpose General Obligation Bonds Flood control Flood control Library City-County building Municipal golf course Municipal golf course Park improvements Bicentennial Center Park improvements Park improvements Bridge improvements Solid waste Fire equipment Revenue Bonds Water and sewerage Totals Payable in Year Ended December 31, CITY OF SALINA Salina, Kansas STATEMENT OF BONDED INDEBTEDNESS December 31,1981 Date of Issue 5-01-61 1l-0l-63 1l-0l-65 11-01-66 12-01-67 10-01-68 4-01-74 4-01- 77 12-15- 77 6-01- 79 6-01-80 3-01-81 3-01-81 5-01-78 Final Maturity Date 1l-01-8l 11-01-84 1l-0l-86 11-01-87 12-01-86 10-01-86 10-01-84 10-01-97 3-01-88 12-01-89 12-01-90 9-01-87 9-01-91 2-15-07 Rate 3% and 3.5% 2.875%, 3.0%, 3.125%, and 3.5% 3.25%, 3.3%, and 3.375% 3.75%,3.8%, and 5.0% 3.75%, 4.0%, and 4.25% 3.75%, 4.0%, and 4.25% 4.1% and 4.2% 4.6%, 4.7%, 5.0%, 5.2%, and 5.25% 4.375%, 4.4%, 4.5%, and 4.75% 5.375%, 5.4%, 5.75%, and 6.0% 5.7%, 5.75%, 5.8%, 5.9%, and 6.75% 7.25%, 7.3%, 7.4%, 7.875%, and 8.0% 7.5%, 7.6%, 7.7%, 7.8%, and 8.0% 6.25% SCHEDULE OF MATURITIES December 31, 1981 General Obligation Bonds Principal Interest Revenue Bonds Principal Interest $ 730,000.00 $ 401,748.64 $ 1,000.00 $ 277,765.00 730,000.00 350,335.53 1,000.00 277,702.50 740,000.00 309,584.47 1,000.00 277 , 640. 00 637,000.00 272,479.94 1,000.00 277,577.50 637,000.00 239,649.39 1,000.00 277 ,515.00 4,115,000.00 1,159,832.50 4,386,000.00 4,429,354.37 $7.589.000.00 $2.733.630.47 $4,391.000.00 $5.817.554.37 1982 1983 1984 1985 1986 Thereafter Totals See accompanying notes to financial statements which are an integral part hereof. Exhibit C Amount of Bonds Year Ended December 31, 1981 Bonds Original Outstanding Bonds Bonds Outstanding Issue January 1, 1981 Issued Retired December 31, 1981 $ 1,132,000.00 $ 60,000.00 $ $ 60,000.00 $ 260,000.00 52,000.00 13,000.00 39,000.00 675,000.00 185,000.00 35,000.00 150,000.00 1,100,000.00 385,000.00 55,000.00 330,000.00 75,000.00 36,000.00 6,000.00 30,000.00 75,000.00 36,000.00 6,000.00 30,000.00 100,000.00 40,000.00 10,000.00 30,000.00 6,500,000.00 5,525,000.00 325,000.00 5,200,000.00 250,000.00 200,000.00 25,000.00 175,000.00 250,000.00 225,000.00 25,000.00 200,000.00 250,000.00 250,000.00 25,000.00 225,000.00 900,000.00 900,000.00 900,000.00 280,000.00 280,000.00 280,000.00 11,847,000.00 6,994,000.00 1,180,000.00 585,000.00 7,589,000.00 4,394,000.00 4,392,000.00 1,000.00 i~,391,000.00 $16.241. 000.00 $1l,386,000.00 $1.180,000.00 $586,000.00 .ß.LL. 980,000.00 -21- Cash in Depositories Planters Bank and Trust Company, Salina, Kansas National Bank of America, Salina, Kansas First National Bank and Trust Company, Salina, Kansas First Bank and Trust Co., Salina, Kansas Capitol Federal Savings and Loan Association, Salina, Kansas Colonial Savings and Loan Association, Salina, Kansas Homestead Savings Association, Salina, Kansas Security Savings and Loan Association, Salina, Kansas CITY OF SALINA Salina, Kansas COMPOSITION OF ENDING CASH BALANCES December 31, 1981 Cash in Checking Cash in Savings Certificates of Deposit Repurchase Agreements ($70,384.52) $100,000.00 $1,326,000.00 $ 15,016.87 (2,454.60) 33,591. 00 151,000.00 1,385,000.00 355,940.85 1,087,000.00 30,000.00 550,000.00 33,000.00 35,000.00 40,000.00 30,000.00 Total Cash in Depositories ($24.231.25) $744.940.85 $4,348.000.00 $30,000.00 U.S. Treasury Bonds Petty Cash Water and Sewerage Department Bicentennial Center Total Petty Cash Total (Exhibit A) See accompanying notes to financial statements which are an integral part hereof. Exhibit D Total $1,355,615.48 1,551,016.87 1,470,486.25 583,591. 00 33,000.00 35,000.00 40,000.00 30,000.00 5,098,709.60 681,041.31 2,500.00 4,420.00 6,920.00 $5.786.670.91 -22- CITY OF SALINA Salina, Kansas COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY December 31, 1981 Planters First National Bank and National Bank Bank and Trust Company of America Trust Company Gross Cash Balances Cash in checking $ 358,901. 73 $ 15,047.87 $ 23,874.60 Cash in savings 101,394.96 151,000.00 357,275.95 Certificates of deposit 1,326,000.00 1, 385 , 000 . 00 1,087,000.00 Totals 1,786,296.69 1,551,047.87 1,468,150.55 Less FDIC or FSLIC coverage 200,000.00 115,047.87 123,874.60 Balances securable by collateral 1,586,296.69 1,436,000.00 1,344,275.95 Security required (70%) 1,1l0,407.68 1,005,200.00 940,993.17 Security provided by depositories 2,308,000.00 1,827,000.00 1,931,000.00 Amount Undersecured by Statute $ $ $ See accompanying notes to financial statements which are an integral part hereof. First Bank and Trust Co. $ 34,734.79 550,000.00 584,734.79 134,734.79 450.000.00 315,000.00 600,000.00 $ Exhibit E Capitol Federal Colonial Security S av ings Savings Homestead Savings and Loan and Loan Savings and Loan Association Association Association Association $ $ $ $ 33,000.00 35,000.00 40,000.00 30,000.00 33,000.00 35,000.00 40,000.00 30,000.00 33,000.00 35,000.00 40,000.00 30,000.00 $ $ $ $ -23- CITY OF SALINA Salina, Kansas NOTES TO FINANCIAL STATEMENTS 1. Summary of significant accounting policies: 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: . Certain accounts receivable to be recorded in the financial statements. The City does not record these receivables until they are collected in cash. . Expenditures to be recorded generally on the accrual basis. As discussed above, purchase commitments are recorded as encumbrances at year-end. . The General Fixed Assets and the General Long-Term Debt Account Groups to be maintained. The City does not maintain these account groups. . 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. . 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; and a combined statement of revenues, expendi- tures, and changes in fund balance and combined comparison with budget for all governmental 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. 75-1l20a as related to the preparation of financial statements in conformity with gener- ally accepted accounting principles. -24- 2. The accompanying financial statements contain several funds for which budgets were not prepared. The reasons for omitting certain budget comparisons are shown below. . Central Garage - The fund is an intragovernmental fund 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. . 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 expenditures is from the issuance of bonds, temporary notes, and special assessments and charges. . 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. 3. The City has outstanding an issue of Combined Water and Sewer System Revenue Bonds, Series of 1961, of which the principal amount of $1,010,000 remains out- standing at December 31, 1981, and an issue of Combined Water and Sewer System Revenue Bonds, Series of 1977, of which the principal amount of $3,000,000 remains outstanding at December 31,1981. The City has provided for the payment of all principal and interest on the bonds by depositing United States government obligations with an escrow agent, as explained in Note 2 on page 32. Neither the assets deposited with the escrow agent for retirement of the 1961 and 1977 bonds issues, nor the outstanding 1961 and 1977 obligations, are reflec- ted in the accompanying financial statements. The amounts required to be maintained in the reserve accounts established by the bond ordinance authorizing issuance of the Waterworks and Sewage System Refunding Revenue Bonds, Series of 1978, explained in Note 2, on page 32, have been provided and the net operating income of the water and sewerage system appears sufficient to meet the requirements of the ordinance. 4. A summary of statutory violations related to 1981 follows. a. Securities pledged by Planters Bank and Trust Company to secure the City's cash deposits in the bank were insufficient in amount to meet the statutory requirement of K.S.A. 9-1402 on March 18, 1981. b. Unclaimed customers' meter deposits collected by the water and sewerage department are placed in the operating fund of the utility without publishing the newspaper notice required by K.S.A. 12-822. -25- 5. Following is a reconciliation of the Water and Sewerage Fund balance as pre- viously reported at December 31, 1980, to the beginning unencumbered cash balance as reported in these financial statements. Fund balance, December 31, 1980 (as previously reported) $10,461,018.74 Accounts receivable Inventories Utility plant in service Deferred issuance costs Customers' meter deposits Accrued interest payable Long-term liabilities (146,214.55) (89,116.24) (14,399,571. 72) (60,238.39) 67,184.37 104,197.03 4,392,000.00 Unencumbered Cash Balance, December 31, 1980 $ 329,259.24 Represented by: Cash and investments Accounts payable Accrued employees' retirement $ 410,141. 00 (62,379.07) (18,502.69) $ 329,259.24 6. The Bicentennial Center Events Fund is used as a clearing account for special events when the City acts as the promoter's agent. Receipts from special events are deposited in the fund and related expenses are disbursed from the fund. The City's rental fees from such events are transferred from the fund to the Bicentennial Center Fund. Receipts and expenditures of the fund have not been previously reported in the City's financial statements. 7. Certain expenditures of the Emergency Preparedness and Bicycle Safety funds are reimburseable by Federal agencies. General funds are being used to tem- porarily finance the deficit cash balances of these funds as of December 31, 1981, in accordance with K.S.A. 12-1664. -26- SEPARATE FINANCIAL STATEMENTS WATER AND SEWERAGE DEPARTMENT MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND CaE HOME OFFICE: CERTIFIED PUBLIC ACCOUNTANTS P O. BOX 1 179 SALINA. KANSAS 67401 OFFICES IN KANSAS 91 3.825,1 561 NEBRASKA OKLAHOMA To the Mayor and The Board of City Commissioners: We have examined the balance sheet of the water and sewerage department of the City of Salina, Kansas, as of December 31,1981 and 1980, and the related statements of income, contributions and retained earnings, and changes in financial position for the years then ended. Except as set forth in the following paragraph, our examina- tion was made in accordance with generally accepted auditing standards and, accord- ingly, included such tests of the accounting records and such other auditing pro- cedures as we considered necessary in the circumstances. We did not perform procedures sufficient to of inventories or utility plant in service. adequate record of utility plant in service audit procedures. verify the existence or recorded cost The City does not have available an to permit application of alternative Since we did not perform procedures sufficient to verify the cost of inventories and utility plant in service, as noted in the preceding paragraph, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements referred to above. During our examination, we became aware of the following departures from generally accepted accounting principles. Utility plant in service includes only amounts paid from the water and sewerage fund of the City of Salina. Amounts paid by other funds of the City of Salina are not recorded. Additionally, charges to expense for depreciation of fixed assets over their useful life has not been recorded in the accompanying financial statements. Respectfully submitted, Salina, Kansas July 9, 1982 ~~ éÄ-e ~~ I? ~ C.P.A. Certified Public Accounta t In charge of and actively engaged on this audit. -27- CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT BALANCE SHEET December 31, 1981 (With comparative figures for the preceding year) 1981 1980 ASSETS Current Assets Cash and investments Accounts receivable Inventories Total Current Assets $ 503,158.87 197,760.96 111,345.75 812,265.58 $ 410,141. 00 146,214.55 89,116.24 645,471. 79 Restricted Assets System sinking fund Cash and investments Plant reserve fund Cash and investments System reserve fund Cash and investments Total Restricted Assets Total Assets 879,628.82 715,977 .20 537,736.06 480,750.10 679,131. 93 628,444.54 2,096,496.81 1,825,171.84 119,402.66 114,397.00 14,474,998.04 14,285,174.72 14,594,400.70 14,399,571. 72 58,007.35 60,238.39 $17 ,561,170.44 $16,930,453.74 Utility Plant in Service Furniture and fixtures Plants, mains, equipment and other property Total Utility Plant in Service Other Assets Deferred issuance costs See accompanying notes to financial statements on page 32 which are an integral part hereof. LIABILITIES, RESERVES, CONTRIBUTIONS AND Current Liabilities Accounts payable Customers' meter deposits Accrued interest payable Accrued employees' retirement Long-term obligations due within one year Total Current Liabilities Long-Term Liabilities Revenue bonds due after one year Reserves System sinking fund Plant reserve fund System reserve fund Total Reserves Contributions and retained earnings (Exhibit C) Total Liabilities Exhibit A 1981 1980 RETAINED EARNINGS $ 66,268.54 $ 62,379.07 76,450.18 67,184.37 104,173.59 104,197.03 9,334.57 18,502.69 1,000.00 1,000.00 257,226.88 253,263.16 4,390,000.00 879,628.82 537,736.06 679,131. 93 2,096,496.81 10,817,446.75 $17,561,170.44 4,391,000.00 715,977.20 480,750.10 628,444.54 1,825,171. 84 10,461,018.74 j;16,930,453.74 -28- CITY OF SALINA Salina, Kansas Exhibit B WATER AND SEWERAGE DEPARTMENT INCOME STATEMENT Year Ended December 31, 1981 (With comparative figures for the preceding year) Operating Revenues Water revenue Sewage revenue Tapping service and frontage charges Service charge - Sanitation department Fire hydrant revenue Miscellaneous income Total Operating Revenues 1981 1980 $2,157,547.09 $1,779,918.61 642,746.57 642,201.55 16,041. 91 13,909.70 11,685.00 6,514.58 1,958.33 3,109.80 8,461. 51 6,572.08 2,838,440.41 2,452,226.32 57,037.20 56,571.09 597,135.24 636,041. 86 142,965.66 129,133.20 196,120.10 132,854.70 248,798.42 238,826.97 422,015.38 437,870.32 481,312.22 416,100.91 2,145,384.22 2,047,399.05 693,056.19 404,827.27 214,731. 89 211,014.25 49,125.59 214,731. 89 260,139.84 277 ,804.06 277,864.01 2,231. 04 2,231. 04 280,035.10 280,095.05 $ 627,752.98 $ 384,872.06 Operating Expenses Water supply Softening and treatment Pumping Distribution Customers' accounting and collection Administrative and general Sewage treatment and collection Total Operating Expenses Operating Income Other Income Interest on investments Special assessments and charges Total Other Income Other Expenses Interest on revenue bonds Amortization of deferred issuance costs Total Other Expenses Net Income See accompanying notes to financial statements on page 32 which are an integral part hereof. -29- 1981 1980 $10,461,018.74 $ 9,653,545.11 627,752.98 384,872.06 278,827.50 278,890.00 54,544.76 770,287.33 897.34 961,125.24 1,434,946.73 CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT STATEMENT OF CONTRIBUTIONS AND RETAINED EARNINGS Year Ended December 31, 1981 (With comparative figures for the preceding year) Balance, Beginning of Year Additions Net income for the year (Exhibit B) Transfers from restricted reserves System sinking fund System reserve fund Adjustment for prior year encumbrances Total Additions Deductions Transfers to restricted System sinking fund Plant reserve fund System reserve fund Total Deductions reserves 442,479.12 56,985.96 105,232.15 604,697.23 Balance, End of Year $10.817,446.75 See accompanying notes to financial statements on page 32 which are an integral part hereof. Exhibit C 433,403.41 42,215.26 151,854.43 627,473.10 $10,461.018.74 -30- CITY OF SALINA Salina, Kansas Exhibit D WATER AND SEWERAGE DEPARTMENT STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended December 31,1981 (With comparative figures for the preceding year) SOURCE OF FUNDS 1981 1980 $627,752.98 $ 384,872.06 2,231. 04 2,231. 04 897.34 (271,324.97) 421,704.23 489,947.18 358,659.05 1,299,651. 85 44,391.06 358,659.05 1,344,042.91 Net income (Exhibit B) Charges against (additions to) net income not affecting working capital Amortization of deferred issuance costs Adjustment for prior years encumbrances Decrease (increase) in reserve account assets Decrease in construction fund assets Funds provided by operations Decrease in working capital (see below) Totals APPLICATION OF FUNDS Additions to utility plant in service Decrease in long-term liabilities Increase in working capital (see below) 194,828.98 1,000.00 162,830.07 1,343,042.91 1,000.00 Totals 358,659.05 1,344,042.91 CHANGES IN WORKING CAPITAL Change in Current Assets Cash and investments Accounts receivable Inventories Net Change in Current Assets Increase or (Decrease) 93,017.87 (8,925.11) 51,546.41 (3,097.84) 22,229.51 (17,546.26) 166,793.79 (29,569.21) 3,889.47 42,347.51 9,265.81 (4,595.00) (9,191.56) (22,930.66) 3,963.72 14,821. 85 $162,830.07 ($ 44.391. 06) Change in Current Liabilities Accounts payable Customers' meter deposits Accrued expenses Net Change in Current Liabilities Net Change in Working Capital See accompanying notes to financial statements on page 32 which are an integral part hereof. -31- CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT NOTES TO FINANCIAL STATEMENTS 1. Significant accounting policies: (a) The accrual method of accounting is used in the preparation of these financial statements. Income is recorded as earned and expenses as incurred. (b) Inventories are stated at original cost and consist primarily of utility plant supplies and equipment not placed in service. (c) Utility plant and other fixed assets are recorded as assets ~rhen acquired; however, depreciation is not recorded in the financial statements. (d) Investments are stated at cost, which approximates market. (e) The direct write-off method is used to record uncollectible accounts receivable. (f) Grants from governmental agencies are recorded as non-operating income. 2. The City issued its Waterworks and Sewage System Refunding Revenue Bonds, Series of 1978, on May 1, 1978, for the purpose of refunding its Combined Water and Sewage System Revenue Bonds of 1961 and 1977. Proceeds of the 1978 bond issue were invested in United States government obligations deposited with Planters Bank and Trust Company, Salina, Kansas, pursuant to an escrow trust agreement dated May 1, 1978. Total funds deposited and interest earned on such funds will be sufficient to pay all principal and interest on the 1961 and 1977 bonds as they become due. Neither the assets deposited with the escrow agent nor the outstanding 1961 and 1977 obligations are reflected in the accompanying financial statements. The new bond issue in the original amount of $4,394,000 matures serially between February 15, 1979, and February 15, 2007, and bears interest at rates varying from 6 1/4 to 6 3/8 percent per annum. Principal of $1,000 is payable on the 1978 bond issue for each of the next five years. The City has established certain reserve accounts pursuant to the bond ordinance 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 pay- ment of the bonds; however, the pledge is subordinate to a similar pledge to secure payment of the 1961 and 1977 bonds. The amounts required to be maintained in the reserve accounts established by the 1978 bond ordinance have been provided and the net operating income of the system for 1981 and 1980 appears sufficient to meet the requirements of the ordinance. -32-