Audit - 1976
CITY OF SALINA
Salina, Kansas
REVENUE SHARING FUNDS
REPORT ON EXAMINATION
December 31, 1976
KENNEDY AND COE
Certified Public Accountants
Salina - Kansas
Exhibit A
Exhibit B
Exhibit C
CITY OF SALINA
Salina, Kansas
REVENUE SHARING FUNDS
INDEX
Page
ACCOUNTANTS' REPORT
1
STATEMENT OF CHANGES IN AVAILABLE FUNDS
2
STATEMENT OF OBLIGATIONS INCURRED
3
SUMMARY OF DATA SUBMITTED TO BUREAU OF CENSUS
4
Accountants' Comments
5-7
Index
KENNEDY AND CaE
MEMBERS
CERTIFIED PUBLIC ACCOUNTANTS
OF
OFF"lCES IN KANSAS
SALI NA
CONCORDIA
GREAT BEND
COLBY
GOODLAND
WICHITA
AMERICAN INSTITUTE
OF
CERTIFIED
PUBLIC ACCOUNTANTS
The Mayor and
The Board of City Commissioners:
We have examined the Revenue Sharing Fund Statement of Changes in Available Funds
and the Statement of Obligations Incurred of the City of Salina, Kansas, for the
year ended December 31, 1976, and have compared the financial data included on
Bureau of Census Form RS-9 with audited records of the City of Salina, Kansas, for
the year ended December 31, 1974. Our examination was made in accordance with
generally accepted auditing standards and the "Audit Guide and Standards for Revenue
Sharing Recipients" issued by the Office of Revenue Sharing, U.S. Department of the
Treasury, and accordingly, included such tests of the accounting records and such
other auditing procedures as we considered necessary in the circumstances.
In our opinion, the Statement of Changes in Available Funds and the Statement of
Obligations Incurred present fairly the revenue, expenditures, obligations incurred,
and status of revenue sharing funds of the City of Salina, Kansas, for the year
ended December 31, 1976, in conformity with generally accepted accounting principles
applied on a basis consistent with that of the preceding year. Further, except for
the adjustments as shown on Exhibit C,'the financial data shown on the Bureau of
Census Form RS-9 for the year ended December 31, 1974, is in agreement with audited
records of the City of Salina, Kansas.
Respectfully submitted,
Salina, Kansas
July 14, 1977
;r~~<?~
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CITY OF SALINA
Salina, Kansas
REVENUE SHARING FUNDS
Exhibit A
STATEMENT OF CHANGES IN AVAILABLE FUNDS
Year Ended December 31, 1976
Totals
Per
Books Adjustments Adjusted
$239,442 $ $239,442
239,442 239,442
Available Funds - January 1, 1976
Unappropriated
Unencumbered appropriations
Add - Revenue
Entitlement payments
Interest on investments
437,916 437,916
11,118 11,118
688,476 688,476
129,819 129,819
558,657 558,657
536,641 536,641
22,016 22,016
558,657 558,657
Totals
Less - Unappropriated - December 31, 1976
Available for obligation during the year
Less
Expenditures
Encumbrances
Total Obligations Incurred
Unencumbered Balance,- December 31, 1976
Unappropriated - December 31, 1976
129,819
129,819
Available Funds - December 31, 1976
$129.819
$129.819
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CITY OF SALINA
Salina, Kansas
REVENUE SHARING FUNDS
Exhibit B
STATEMENT OF OBLIGATIONS INCURRED
Year Ended December 31, 1976
Expenditures Per Books
Applicable Revenue
to Other Sharing Adjust- Questioned
Total Funds Funds ments Adjusted Costs
Operating/Maintenance
Expenditures
Pub lic safe ty $120,142 $ $120,142 $ $120,142 $
Public transpor-
tation 77 , 082 77,082 77 , 08 2
Health 122,000 122,000 122,000
Recreation 12,000 12,000 12,000
Social services 66,655 66,655 66,655
Financial admin-
istration 875 875 875
Total Operating/
Maintenance
Expenditures 398,754 398,754 398,1'54
Capital Expenditures
Multipurpose and
general government 45,543 45,543 45,543
Libraries 19,800 19,800 19,800
Environmental
conservation 544 544 544
Public safety 60,561 60,561 60,561
Recreation/Culture 33,455 33,455 33,455
Total Capital
Expenditures 159,903 159,903 159,903
Total Obligations
Incurred $558.657 $ $558.657 $ $558.657 $
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CITY OF SALINA
Salina, Kansas
REVENUE SHARING FUNDS
Exhibit C
SUMMARY OF DATA SUBMITTED TO BUREAU OF CENSUS
Year Ended December 31, 1974
PART I
Property taxes
Public utilities tax
Licenses, permits and fees
PART II
From State
General support
Property tax relief
All other
Streets and highways
Civil defense
From Other Local Governments
Rural fire protection
Streets and highways
From Federal Government Directly
Revenue sharing funds
Housing and urban renewal
(1)
(2)
Reported
to
Census
$2,279,594
273,742
79,520
2.632.856
75,504
95,732
312,796
16,044
88,129
2,602
449,229
74,438
$1.114.474
Audit
Adjustments
Adjusted
$
$2,279,594
273,742
79,520
2.632.856
75,504
(2,603)(1) 93,129
312,796
16,044
88,129
2,602
101,355(2) 550,584
74,438
$ 98.752 $1.213.226
Duplication of amount, also included in receipts from other local governments.
Payment received January 6, 1975, recorded on books in 1974.
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CITY OF SALINA
Salina, Kansas
REVENUE SHARING FUNDS
ACCOUNTANTS' COMMENTS
December 31, 1976
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CITY OF SALINA
Salina, Kansas
REVENUE SHARING FUNDS
COMMENTS ON COMPLIANCE AND INTERNAL CONTROL
We have examined the Revenue Sharing Fund Statements of Changes in Available Funds
and Obligations Incurred, and have compared the financial data included on the Bureau
of the Census Form RS-9 with the audited records of the City of Salina, Kansas for
the year ended December 31, 1976. Our report thereon is qualified as it pertains to
Exhibit C for the reasons set forth therein. Our examination was m¡~de in accordance
with generally accepted auditing standards and the "Audit Guide and Standards for
Revenue Sharing Recipients" (Guide) issued by the Office of Revenue Sharing, U.S.
Department of the Treasury, and accordingly included such tests of the accounting
records and such other auditing procedures as we considered necessary in the circum-
stances. As part of our examination, we made a study of those internal accounting
and administrative control procedures and compliance matters that we considered rele-
vant to the criteria established by the Office of Revenue Sharing as set forth in
Section V.D. of its "Guide."
The objective of internal accounting control is to provide reasonable, but not abso-
lute, assurance as to the safe-guarding of assets against loss from unauthorized use
or disposition, and the reliability of financial records for preparing financial
statements and maintaining accountability for assets. We understand that the objec-
tive of those administrative control procedures comprehended in the Office of Revenue
Sharing's criteria is to provide similar assurance as to compliance with its related
requirements. The concept of reasonable assurance recognizes that the cost of a
system of internal control should not exceed the benefits derived and also recognizes
that the evaluation of these factors necessarily requires estimates and judgments by
management.
There are inherent limitations that should be recognized in considering the potential
effectiveness of any system of internal control. In the performance of most control
procedures, errors can result from misunderstanding of instructions, mistakes of
judgment, carelessness or other personal factors. Control procedures whose effective-
ness depends upon segregation of duties can be circumvented by collusion. Similarly,
control procedures can be circumvented intentionally by management with respect either
to the execution and recording of transactions or with respect to thE~ estimates and
judgments required in the preparation of financial statements. Further, projection
of any evaluation of internal control to future periods is subject to the risk that
the procedures may become inadequate because of changes in conditions, and that the
degree of compliance with the procedures may deteriorate.
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We understand that procedures in conformity with the criteria referred to in the
first paragraph of this report are considered by the Office of Revenue Sharing to
be adequate for its purposes in determining the adequacy of internal control and
compliance with laws and regulations applicable to the revenue sharing program, and
that procedures that are not in conformity .therewith indicate some inadequacy for
such purposes. Based on this understanding and on our study, we believe that the
City of Salina's procedures were adequate for the purposes of the Office of Revenue
Sharing.
We did not audit $161,455.00 of revenue sharing funds transferred to the following
secondary recipients during the year ended December 31, 1976:
Salina Public Library
Central Kansas Alcoholic Foundation, Inc.
Salina-Saline County Board of Health
Passport For Adventure
$ 19,800.00
14,655.00
122,000.00
5,000.00
$161.455.00
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