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Audit - 1987 THE SMOKY HILL RIVER FESTIVAL Salina, Kansas REPORT ON EXAMINATION September 30, 1987 WOODS & DURHAM Certified Public Accountants Salina, Kansas WOODS & DURHAM CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS 605 W. NORTH STREET P.O. BOX 1516 SALINA, KANSAS 67402-1516 AREA 913 825-5494 Smoky Hill River Festival Salina, Kansas We have examined the statement of assets, liabilities, and fund balance arising from cash transactions of the Smoky Hill River Festival as of September 30, 1987, and the related statements of receipts, disbursements and changes in fund balance for the year then ended. 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. As described in Note 1, the Commission's policy is to prepare its financial statements on the basis of cash receipts and disburse- ments; consequently, certain revenue and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred. Accordingly, the accompanying financial statements are not intended to present financial position and results of operations in conformity with generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly the assets and liabilities arising from cash transactions of the Smoky Hill River Festival as of September 30, 1987, and the revenues collected and disbursements made during the year then ended, on the basis of accounting described in Note 1, which has been applied in a manner consistent with that of the preceding year. u ~..¿ L9~run October 19, 1987 WOODS & DURHAM THE SMOKY HILL RIVER FESTIVAL Salina, Kansas STATEMENT OF ASSETS, LIABILITIES, AND FUND BALANCE September 30, 1987 Current Assets Cash Investments Total Equipment Fund Balance Unrestricted ASSETS $ 6,589 127,824 134,413 4,087 $138,500 ------- ------- LIABILITIES AND FUND BALANCE $ !~~L~QQ ------- See Notes to Financial Statements. THE SMOKY HILL RIVER FESTIVAL Salina, Kansas STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN UNRESTRICTED FUND BALANCE September 30, 1987 OPERATING RECEIPTS General Government Grants and Contracts Saline County Private Charitable Contributions Individual donations Business donations Sponsorships Art Auction Miscellaneous Earned Revenue Admissions Fees Shirt sales TOTAL OPERATING RECEIPTS OPERATING DISBURSEMENTS General Administration Special Projects Arts programs Marketing and promotion Technical Shirt Expenses Sales Tax Art Auction Expenses Miscellaneous TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) Interest Income TOTAL INCOME (LOSS) UNRESTRICTED FUND BALANCE - October 1, 1986 UNRESTRICTED FUND BALANCE - September 30, 1987 $ 6,834 7,607 6,864 17,600 6,867 1,083 79,223 32,712 5,831 28,502 82,799 38,491 15,383 6,678 4,190 1,607 2,229 See Notes to Financial Statements. $164,621 179,879 (15,258) 8,283 (6,975) 145,475 $!~~!.~QQ ------- THE SMOKY HILL RIVER FESTIVAL Salina, Kansas NOTES TO FINANCIAL STATEMENTS September 30, 1987 NOTE 1 - SUMMARY OF ACCOUNTING POLICIES A. Basis of Presentation - The accompanying financial state- ments are presented on the cash basis, where revenue is recorded as received and expenditures are recorded as disbursed. B. The Smoky Hill River Festival is a program of the Salina Arts and Humanities Commission. Separate accounting records are maintained by the two entities, and separate audit reports have been issued. C. Property, Plant and equipment represents Hill River Festival. on this equipment. Equipment - The amount recorded as equipment purchased by the Smoky Depreciation has not been provided D. Investments are stated at cost. E. The Smoky Hill River Festival, as a program of the Salina Arts and Humanities Commission, is exempt from federal income tax under Section 501 of the Internal Revenue Code. NOTE 2 - The Salina expenditure Hill River marketing. Arts and Humanities Commission authorized the of $10,000 from investments for the 1987 Smoky Festival for the purpose of promotion and