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Audit - 1985 THE SALINA ARTS AND HUMANITIES COMMISSION Salina, Kansas REPORT ON EXAMINATION December 31, 1985 WOODS & DURHAM Certified Public Accountants Salina, Kansas WOODS & DURHAM CERTIAED PUBLIC ACCOUNTANTS SALINA, KANSAS 605 W, NORTH STREET P,O, BOX '1516 SALINA, KANSAS 67402.1516 AREA 913 825.5494 Salina Arts and Humanities Commission Salina, Kansas We have examined the statement of assets, liabilities, and fund balance arising from cash transactions of the Salina Arts and Humanities Commission as of December 31, 1985, and the related statement 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 disbursements; 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 Salina Arts and Humanities Commission as of December 31, 1985, and the revenues collected and disbursements made during the year then ended, on the basis of accounting described in Note 1, applied in a manner consistent with the preceding year. ø~ NJ~Mn-- January 29, 1986 WOODS & DURHAM THE SALINA ARTS k"'ID HUMANITIES COMMISSION Salina, Kansas STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE December 31, 1985 Cash Investments Equipment Fund Balance ASSETS LIABILITIES AND FUND BALANCE See Notes to Financial Statements. $ 1,952 5,827 4,221 $12,000 $12,000 THE SALINA ARTS AND HUMANITIES COMMISSION Salina, Kansas STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN FUND BALANCE December 31,1985 RECEIPTS General Government contracts City of Salina K.A.C. Contracted revenue USD 305 Other Interest Miscellaneous Earned revenue Admissions and grants $89,638 14,150 13,500 1,923 697 235 875 $121,018 DISBURSEMENTS Salaries General, administrative Travel Miscellaneous Arts programs Services Loss on sale of assets and operating 67,138 7,882 1,809 522 31,396 5,756 900 115,403 RECEIPTS OVER (UNDER) DISBURSEMENTS 5,615 FUND BALANCE - January 1, 1985 6,385 FUND BALANCE - December 31, 1985 $12,000 See Notes to Financial Statements. THE SALINA ARTS AND HUMANITIES COMMISSION Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,1985 NOTE 1 - SUMMARY OF ACCOUNTING POLICIES A. Basis of Presentation - The accompanying financial statements are prepared on the cash basis; consequently, revenues are recorded when received and expenses are recognized when disbursed. B. A separate audit report has been issued for the Smoky Hill River Festival as of September 30,1985, and for the Artist in Residence Program as of December 31, 1985. Both arE:~ programs of the Salina Arts and Humanities Commission. C. Property, Plant and Equipment - The amount recorded as fixed assets represents equipment purchased by the Salina Arts and Humanities Commission. Such assets are recorded at cost. Depreciation has not been provided on these assets. D. Investments are recorded at cost. E. The Salina Arts and Humanities Commission is exempt from federal income taxes under Section 501 of the Internal Revenue Code.