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Audit - 1981CITY OF SALINA Salina, Kansas REVENUE SHARING FUNDS ORS Account Number of Jurisdiction 17 -2- 085 -005 REPORT ON COMPLIANCE EXAMINATION December 31, 1981 KENNEDY AND COE Certified Public Accountants Salina, Kansas MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS HOME OFFICE: OFFICES IN P. O. BOX 1179 KANSAS SALINA. KANSAS 67401 NEBRASKA 913-825-1561 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, and have issued our report thereon dated July 9, 1982. 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, _ accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. We have also (1) performed tests of compliance with the Revenue Sharing Act and regulations as detailed in the Commentary on the Audit Requirements of the 1980 Amendments to the State and Local -- Fiscal Assistance Act issued by the office of Revenue Sharing, U.S. Department of the Treasury, and (2) compared the data on the Bureau of Census forms F -21A and RS -9 _ with the audited financial statements of the City of Salina for the year ended December 31, 1980. In our opinion, for the items tested, the City of Salina complied with the afore - - mentioned provisions of the Revenue Sharing Act and regulations, except for the following matters. • Information reported on Bureau of Census forms did not agree with the City's annual financial statements, as shown in the accompany- ing schedule. • No interest earned on entitlement funds was credited to the fund for the year 1981 as appears to be required by Regulation Section 51.101(a). `>0 Memorandum records of expenditures of the Bicentennial Center share of entitlement funds were not maintained as appears to be required by Regulation Section 51.101(c)(2). Total Revenue Sharing Funds transferred to the Bicentennial Center Fund were $250,000 in 1981. • Property records as appears to be required by Regulation Section 51.70 were not maintained by the City. Except for the matters described above, no matters came to our attention to indicate that the City of Salina had not complied with the aforementioned provisions of the Revenue Sharing Act and regulations. Salina, Kansas July 13, 1982 Respectfully submitted, 441t44 a-1101 ce-e_ CITY OF SALINA Salina, Kansas DETAIL OF MATERIAL VARIANCES BETWEEN FINANCIAL STATEMENTS AND BUREAU OF CENSUS FORMS Year Ended December 31, 1980 Capital Outlay Purchase Current Operation of Land Salaries Construc- Equipment, and Wages Other tion etc. Total Form F -21A, Part IIA, Line 19 - Parks and other recreation as reported $245,746 78 374 = 17 157 $341,277 Add golf course expenditures which appear should be in- cluded 105,767 Total as Adjusted $447,044 Form RS -9, Part II, Line 8, Column (C) Other intergovernmental revenue HUD - as reported $552,520 Audit adjustment to reflect actual 1980 Federal grants (certain transactions are recorded on an annual basis from separate accounting records) 177,286 Total as Adjusted $729,806