Audit - 1976
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
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REPORT ON EXAMINATION
December 31, 1976
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WOODS & DURHAM
Certified Public Accountants
Salina, Kansas
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
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Officers and Representatives
1976
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President:
Thomas C. Girard
Vice President:
James H. Yost
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Secretary:
Guy R. Ryan
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Treasurer:
James H. Young
Representatives:
Thomas W. Wright
Gerald L. Beach
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I Exhibit "A"
Exhibit "B"
I Exhibit IIC"
I Schedule 1
Schedule 2
Schedule 3
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
INDEX
Accountant's Report. . . . . . . . . . . . . . . . .
Balance Sheet. . . . . . . . . . . . . . . . . . . .
Receipts, Expenditures and Changes in Fund Balance
Note to Financial Statements. . . . . . . . . . . .
Supplemental Information
Investments. . . . . . . . . . . . . . . . . .
Comparison of Depository Security With Balances
on Deposit. . . . . . . . . . .
Treasurer's Fidelity Bond. . . . . . . . . . . . . .
Compliance Questionnaire
Page
Number
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WOODS
,rl~
~dI
Way~
fJJ alma
&
DURHAM
ry¡:<'ro in
~t¿f1.ed fliuUú: ,;1<'Â<JUn~
605 W. NORTH STREET
P.O. BOX 1324
SALINA, KANSAS 67401
TELEPHONE - AREA 913 - 825-5494
Board of Directors
Salina Firemen's Relief Association
Salina, Kansas
We have examined the financial statements of the various funds and account groups
listed in the table of contents of Salina Firemen's Relief Association for the
years ended December 31, 1975 and 1976. Our examination was made in accordance
with generally accepted auditing standards and the Minimum 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 circumstances.
In our opinion, the aforementioned financial statements present fairly the finan-
cial position of the various funds and account groups of Salina Firemen's Relief
Association at December 31, 1975 and 1976, 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.
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 ex-
amination of the financial statements mentioned above and, in our opinion, is
fairly stated in all material respects in relation to the financial statements
taken as a whole.
July W 1977
tJ L~ Cú{&.ð-elJ
W. Rex Woods, LMPA, CPA
in charge of and actively
engaged on this audit
WOODS & DURHAM J
éb~þ7 ;;¿¡£/J!a-f~ '
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Cash
Savings Account
Certificate of Deposit
TOTAL ASSETS
SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
BALANCE SHEET
December 31,
ASSETS
1975
$ 3,073.15
32,182.08
102,265.87
$137,521.10
Fund Balance
LIABILITIES, RESERVES &~ FUND BALANCES
TOTAL LIABILITIES, RESERVES
AND FUND BALANCES
$137,521.10
$137,521.10
Exhibit "A"
1976
$ 5,427.12
10,504.60
122,265.87
$138,197.59
$138,197.59
$138,197.59
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
For The Years Ended December 31,
1975
REVENUE
Kansas Commissioner of Insurance
Insurance premium refunds
Interest
Benefits received from insurance policies
$ 24,215.47
6,729.71
8,941. 62
5,869.25
TOTAL REVENUE
45,756.05
EXPENDITURES
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
1,688.74
10,823.30
15,892.45
4,329.05
3,213.97
388.25
25.00
TOTAL EXPENDITURES AND ENCUMBRANCES
36,360.76
REVENUE OVER (UNDER) EXPENDITURES
9,395.29
FUND BALANCE - January 1,
128,125.81
FUND BALANCE - December 31,
$137 , 521.10
Exhibit "B"
1976
$ 31,342.15
338.83
8,638.98
11,716.64
52,036.60
10,000.00
86.17
18,255.64
19,966.56
88.38
2,613.36
325.00
25.00
51,360.11
676.49
137,521.10
$138,197.59
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I NOTE 1 -
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
NOTE TO FINANCIAL STATEMENTS
For The Year Ended December 31, 1976
Exhibit "c"
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Salina Firemen's Relief Association con-
form 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
a. Disbursements for inventory
sidered expenditures 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 expen-
diture when due and paid
d. The encumbrance method of accounting which is adopted
as an additional modification.
accrual basis except for:
type items which are con-
time of purchase or at the
INVESTMENTS
Investments are stated at cost.
FIXED ASSETS
Firemen's Relief Association has no fixed assets.
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Issue Maturity Maturity
Date Date Number Rate Cost Value
Certificate of Deposit 4- 1-74 4- 1-78 10472 7.00% $ 52,265.87 $ 52,265.87
Certificate of Deposit 7-16-75 7-16-79 10777 7.25% 50,000.00 50,000.00
Certificate of Deposit 8-24-76 8-24-80 12858 7.25% 20,000.00 20,000.00
$122,265.87 $122,265.87
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
INVESTMENTS
December 31, 1976
Schedule 1
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
COMPARISON OF DEPOSITORY SECURITY WITH BALANCES ON DEPOSIT
December 31, 1976
Bank
First National Bank and
Trust Company
Demand Deposits
Investments
TOTALS
Schedule 2
FDIC
Coverage
Bank
Balance
Unsecured
Security
Pledged
Total
Coverage
Bank
Balance
$ 40,000.00 $100,000.00 $140,000.00 $ 15,931. 72 $
100,000.00 30,000.00 130,000.00 122 ,265.87
$140,000.00 $130,000.00 $270,000.00 $138,197.59 $
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
TREASURER'S FIDELITY BOND
December 31, 1976
Schedule 3
Treasurer, Salina Firemen's
Relief Association
Date Date of
Effective Expiration Amount
9-10-76 9-10-77 $10,000.00
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STATE OF KANSAS
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STATUTORY COMPLIANCE QUESTIONNAIRE
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Firemen's Relief Association
City of Salina, Kansas
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For the year ended
12-31-76
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Prescribed By
Director of Accounts and Reports
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March 19, 1976
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THIS QUESTIONNAIRE SHALL BE MADE A PART OF THE AUDITED FINANCIAL STATEMENT
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Instructions
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If the answer to any question indicates statutory violation,
the matter should be fully discussed in the comments 'section.
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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.
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GENERAL
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1.
Was there an adequate system of internal control,
properly maintained
(K. S.A.
12-101)7
2.
Were liquid assets accounted for properly
(K.S.A.
21-3701 and 21-3703)7
3.
Were fixed assets accounted for properly
(K.S .A.
12-101)7
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) 7
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 Re-
lief 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)7
9.
Were funds of the firemen's relief association
invested
(K. S. A.
40-1706)
or disbursed as authorized
(K. S .A.
40-1707)7
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)7
11.
Were interfund 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.)7
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No fixed assets
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Not covered in
r=Js íep ort.
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Not covered in
e:r L5ort.
None
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Were the minutes properly approved by the governing
body
(K. S.A.
13-518,13-2106, etc.)?
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)7
16.
Were all public moneys deposited in designated de-
positories
(K.S.A.9-1401)7
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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.IO-117,
etc. )?
22 .
Were sinking or reserve funds created and used in
accordance with statutory provisions
(K.S.A. 10-113,
etc)?
23.
Were claims itemized, 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.
~.)?
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
(Records maintained by Treasurer of Firemen's Relief Assn)
Did Clerk maintain a fund ledger (K.S.A. 10-1117)7
Does clerk maintain required fund encumbrance re-
cords
(K.S.A. 10-1117)?
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0 aëJicable.
None
no
None
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29.
Did Clerk open and keep an account of each fund
showing the unencumbered budget balance as required
(K. S .A.
79-2934)7
30.
Was the fiscal agency balance reconciled with out-
standing matured bonds and coupons
(K.S.A.13-518,
13-2106, etc.)7
31.
Were unpaid special assessments certified to the
County Clerk to be placed on tax roll
(K.S.A.
12 -
608,
12-6alO, etc.)?
XgcJl;!»' TREASURER
32.
Were City funds disbursed as provided by K.S.A.
12-105a, 105b and 10-801 ~ seq7
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)7
ENTERPRISE
(UTILITY)
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None
DO
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Not covered in
trn ~rt.
_:NQne
Oil
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)7
40.
Were utility fund transfers made in compliance with
statutory provisions
(K.S.A. 10-1204, 12-825d and
K.S.A.
79-2935) 7
3.
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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.)7
43.
Did the balance in the customers' deposit fund equal
the amount of deposits in effect (K.S.A. 12-822)7
44.
Was interest credited on
œposits annually as re-
quired by statute (K.S.A.
12-822)7
COMMENTS
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