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Audit - 1977 I I I SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas I I I I I I I I I I I I I I I I REPORT ON E~~INATION December 31, 1977 "WOODS & DURHAM Certified Public Accountants Salina, Kansas I I I I I I I SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas I I OFFICERS AND REPRESENTATIVES 1977 President: Thomas C. Girard I Vice President: James H. Yost I Secretary-Treasurer: James H. Young Representatives: Thomas W. Wright Richard Spracklin I I I I I I I I I I I I I I I I I I Exhibit "A" Exhibit "B" Exhibit "c" I Schedule 1 I Schedule 2 Schedule 3 I I I I I I I SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas INDEX Accountant'sReport................. . Balance Sheet. . . . . . . . . . . . . . . . . . . . . Revenues, Expenditures and Changes in Fund Balance. . . . . Note to Financial Statements. . . . . . . . . . . . . . . . Supplemental Information Investments........................ Comparison of Depository Security with Balances onDeposit .................... Treasurer's Fidelity Bond. . . . . . . . . . . . . . Compliance Questionnaire Page Number 1 2 3 4 5 6 7 :1 WOODS & DURHAM ~ ~ uJk ,ffixx)(mla~ (¡FrN "n c rllo4tme !3WaI Cflay ~ !J a /ÙUl I 605 W. NORTH STREET P.O. BOX 1324 I SALINA, KANSAS 67401 TELEPHONE - AREA 913 - 825-5494 1 1 I Board of Directors Salina Firemen's Relief Association Salina, Kansas I I We have examined the balance sheet of the Salina Firemen's Relief Association at December 31, 1976 and 1977, and the related statements of revenue, expendi- tures and changes in fund balance, for the years then ended. Our examination was made in accordance with generally accepted auditing standards and the ~lin- imum Standard Audit Program approved by the State Municipal Accounting Board March 19, 1976, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circum- stances. I I In our opinion, the aforementioned financial statements present fairly the fi- nancial position of the various funds and account groups of Salina Firemen's Relief Association at December 31, 1976 and 1977, and the results of operations of such funds for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. 1 I The accompanying supplemental schedules and related information listed in the table of contents are not necessary for a fair presentation of the financial statements, but are presented as additional analytical data. This information has been subjected to the tests and other auditing procedures applied in the examination of the financial statements mentioned above and, in our opinion, is fairly stated in all material respects in relation to the financial state- ments taken as a whole. I I I November 6~. 1.978, I jJ U til¿w41 W. Rex Woods, LMPA, CPA In Charge Of and Actively Engaged On This Audit "WOODIS & DUR~ ì J. . ¿~ rJhJø~ I I I I 1. I I I I I I 'I I 1 I I 1 I 1 I I I 1 I SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas BALANCE SHEET December 31, Exhibit "A" 1976 1977 ASSETS TOTAL ASSETS $ 5,427 $ 3,209 10,505 17,151 122,266 112,266 $138,198 $132,626 Cash Savings Account Certificate of Deposit LIABILITIES, RESERVES AND FUND BALANCES Fund Balance $138,198 $132,626 TOTAL LIABILITIES, RESERVES AND FUND BALANCES $J-38,198 $132,626 2. I I I I I I SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas REVENUES, EXPENDITURES, AND CR4NGES IN FUND BALANCE For The Years Ended December 31, I I I I I I I I I I I I I REVENUES Kansas Commissioner of Insurance Insurance Premium Refunds Interest Benefits Received From Insurance Policies TOTAL REVENUES EXPENDITURES Funeral Expenses of Deceased Firemen Gratuity to Widow Medical and Other Payments to Injured Firemen Life and Disability Insurance Premiums Blue Cross-Blue Shield Refund to Firemen's Benefit Fund of Overpayment to Blue Cross-Blue Shield Insurance Benefits Paid Out Other Treasurer's Bond TOTAL EXPENDITURES AND ENCUMB~~CES REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - January 1, FUND BALANCE - December 31, 1976 $ 31,342 339 8,639 11,717 52,037 10,000 86 18,256 19,967 88 2,613 325 25 51,360 677 137,521 $138,198 Exhibit "B" 1977 $ 32,207 282 8,982 3,032 44,503 1,636 78 . 18,066~ 26,858 3,O3~ 375 30 50,075 (5,572) 138,198 $132,626 3. I I I I I I NOTE 1 - I I I I I I I I I I I I I SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas NOTE TO FINANCIAL STATEMENTS For The Year Ended December 31, 1977 Exhibit "c" SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Salina Firemen's Relief Association conform to generally accepted accounting principles. BASIS OF ACCOUNTING The modified accrual basis of accounting is used. Modifications in such method from the accrual basis follow: 1. Revenues are recorded as received in cash except for: a. Revenues susceptible to accrual b. Material revenues that are not received at the normal time of receipt 2. Expenditures are recorded on an accrual basis except for: a. Disbursements for inventory type items which are consid- ered expenditures at the time of purchase or at the time the items are used b. Prepaid expenses which normally are not recorded c. Interest on long-term debt which is normally an expendi- ture when due and paid d. The encumbrance method of accounting which is adopted as an additional modification INVESTMENTS Investments are stated at cost. FIXED ASSETS Firemen's Relief Association has no fixed assets. 4. I I I I I I I I II II I I I I I I I I I Certificate of Deposit Certificate of Deposit Certificate of Deposit SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas INVESTMENTS December 31, 1977 Issue Maturity Date Date Number Rate -- 4- 1-74 4- 1- 7 8 10472 7.00% 7-16-75 7-16-79 10777 7.25% 8-24-76 8-24-80 12974 7.25% Schedule 1 Maturity Cost Value $ 52,265.87 $ 52,265.87 50,000.00 50,000.00 -19,000.00 10,000.00 $~12,265.87 $J-12, 265.87 5. I I I I I I I I I I I I I I I I I I I SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas COMPARISON OF DEPOSITORY SECURITY WITH BALANCES ON DEPOSIT December 31, 1977 Schedule 2 Bank F. D. 1. C. Coverage Bank Balance Balance Unsecured By Bank Security Pledged Bank Balance Unsecured First National Bank and Trust Company TOTALS $ 40,000 $ 20,360 $ $ 100,000 112,266 12,266 10,000 $140,000 $132,626 $12,266 $10,000 $2,266* Demand Deposits Investments *Legally Adequate Per K.S.A. 9-1402. 6. I I I I I I I I I SALINA FIREMEN'S RELIEF ASSOCIATION Salina, Kansas I I I I Treasurer, Salina Firemen's Relief Association I I I I I I TREASURER'S FIDELITY BOND December 31, 1977 Date Effective 9-10- 77 Date of Expiration 9-10-78 Schedule 3 Amount $10,000 7. I STATE OF KANSAS I I STATUTORY COMPLIANCE QUESTIONNAIRE I Firemen's Relief Association Ci ty of Salina, Kansas I For the year ended 12- 31- 77 I I I Prescribed By Director of Accounts and Reports I March 19, 1976 I I THIS QUESTIONNAIRE SHALL BE MADE A PART OF THE AUDITED FINANCIAL STATEMENT I I I Instructions I If the answer to any question indicates s:atutory violation, the matter should be fully discussed in the comments section. I Questions are designed to be answered yes or no. "Not Applicable" is not a useful answer. Independent auditors should amend questions which do not exactly fit a particular city so that substitute or supplementary provisions of the statutes or local regulations are reflected in the question and answered by the auditor. See Part V, Section C, Paragraph 2 of the Minimum Standard Audit Program. I I I I I I I I I I I I I I I I I I I I I I GENERAL ---- 1. Was there an adequate system of internal control, properly maintained (K. S.A. 12-101)? 2. Were liquid assets accounted for properly (K.S .A. 21-3701 and 21-3703)? 3. Were fixed assets accounted for properly (K. S .A. 12-101)? 4. Did the district or county attorney's copy of the audited financial statement include a copy of this audit questionnaire (K.S.A.75-1126)? 5. Were audit adjustments to correct erroneous or un- lawful transactions placed on the books of account during the course of the examination, whenever possible (~ Valley Drainage District v. Zimmer, 141 Kan. 623) ? 6. Was income from investments accounted for and credited to proper funds (K.S.A. 10-131 and 12-1675)? 7. Were all boards, commissions, departments, or sub- divisions of City audited? (If not, give reason for their omission, K.S.A. 75-1117?) This report covers only the Salina Firemen's Relief Association, which comes as a result of a separate engagement. 8. Were expenditures for the library made on order of the library board (K. S.A. 12-1225)? 9. Were funds of the firemen's relief association invested (K. S. A. 40-1706) or disbursed as authorized (K. S.A. 40-1707)? 10. Were disbursements from the band fund made in accordance with the terms of a written contract with the band (K. S .A. 12-14a04)? 11. Were inter fund transactions made upon legislative authority (K.S.A.79-2934)? 12. Do the minutes contain an adequate record of the proceedings of the governing body (K.S.A.13-518, 13-2106, etc.)? 1. m §J [TI I [Ð CJ No ftJd fssets IX ¡ LJ ŒJ 0 ŒJ D D !TI Not covered in this report. 0 D ŒJ D Not covered in this íepïrb None. DO [LJ 0 I I I I I 1 I 1 :1 :1 I I I I I I I I ,I 13 . Were the minutes properly approved by the governing body 13-518, 13-2106, etc.)? (K. S. A. 14 . Were the directives of the governing body with fi- nancial import carried out (K.S.A. 12-101)? 15. Were depositories designated for all city officials receiving public moneys (K. S .A. 9-1401)? 16. Were all public moneys deposited in designated de- positories (K.S.A.9-1401)? 17. Are bank deposits of all city officials adequately secured (K.S.A.9-1402)? 18. Did the governing body approve collateral security and personal bonds furnished to secure deposits (K. S.A. 9-1402)? 19. Are fidelity bonds and insurance policies properly filed (K. S. A. 13-518,13-2106, etc.)? 20. Were investments made in accordance with statutory provisions? 21. Were proceeds from city obligations expended for authorized purposes (K.S.A.I0-117, etc. ) ? 22. Were sinking or reserve funds created and used in accordance with statutory provisions (K. S. A. 10-113, etc) ? 23. itemized, Were claims internally audited and approved as provided by law (K.S.A. 12-105b)? 24. Did the governing body approve a budget appropriating by funds as required by the budget law (K. S. A. 79- 2925 et. s eg. ) ? 25. Were expenditures from city funds made in compliance with the budget law (K. S .A. 79-2935)? 26. Were expenditures from city funds made in compliance with the cash~basis law (K.S.A. 10-1113)? CITY CLERK 27. Did Clerk maintain a fund ledger (K.S .A. 10-1117)? 28. Does clerk maintain required fund encumbrance re- cords (K. S.A. 10-1117)? 2. [YE 51 ~~ ŒJ I 1 [TI 0 Ix I CJ LX] n [X] 0 CÐ 0 IX I 0 CÐ 0 ~nb None D Il tXJ D None II 0 None II D IX I D DOh I Nïnb I I I I I I I 1 I I I I I I I I I I I 29. Did Clerk open and keep an account of each fund showing the unencumbered budget balance as required (K. S .A. 79-2934)? 30. Was the fiscal agency balance reconciled with out- standing matured bonds and coupons (K.S.A.13-518, 13-2106, etc.)? 31. Were unpaid special assessments certified to the County Clerk to be placed on tax roll (K.S.A. 12 - 608, 12-6al0, etc.)? CITY TREASURER 32. Were City funds disbursed as provided by K.S.A. 12-105a, 105b and 10-801 ~ seq? 33. Did the City Treasurer maintain records independently of those maintained by the City Clerk (K.S.A. 10-1118)? 34. Were there frequent reconciliations between the City Treasurer and the City Clerk (K. S.A. 13-518; 13-526; etc.)? 35. Did the Treasurer maintain a chronological record of collateral securities pledged to secure deposits (K. S. A. 9-1405)1 36. Did the City Treasurer pay over to Library Treasurer the funds appropriated and collected for maintenance of such public library (K.S.A. 12-1226)? 37. Did the City Treasurer publish quarterly reports as required (K.S.A. 12-1608)? ENTERPRISE (UTILITY) FUNDS (Not applicable to this report) 38. Were operations of these funds budgeted (K.S .A. 79-2925)? 39. Were transfers of utility "surpluses" anticipated in the current budget (K.S.A. 12-825d)? 40. Were utility fund transfers made in compliance with statutory provisions (K.S.A. 10-1204, 12-825d and K.S.A. 79 -2935) ? 3. w ëJnb æ ~Esl ~ None DO ~~rb CjntJ m D 0 CJ Not covered in this deL~f" None 0 11 DO D D D I I I I I I I I I I I I I I I I I I 1 I I 41. Was petty cash fund confined to statutory use (K. S.A. 12-825a) or as provided by local home rule? 42. Were charges for utility services in accordance with rates fixed by ordinance (K.S.A. 10-1202, 12-829, etc.)? 43. Did the balance in the customers' deposit fund equal the amount of deposits in effect (K .S. A. 12-822)? 44. Was interest credited on œposits annually as re- quired by statute (K. S.A. 12-822)? COMMENTS 4. Þ' Esl ~ DO D D D 0 D 0