SCEDO Audited Financial Statement 12-31-2021SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
AUDITED FINANCIAL STATEMENTS
December 31, 2021
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina, Kansas
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
TABLE OF CONTENTS
Page
Numbers
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 2
Statement of Financ ial Position 3
Statement of Activit ies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 - 9
ce rtified
pub lic
C H A R T E R E D accountants
INDEPENDENT AUDITORS' REPORT
To the Members of
Sal ina Community Economic Development Organization
Opinion
We have audited the accompanying financial statements of Salina Community Economic Development
Organization (a nonprofit organization), which compr ise the statement of financial position as of December
31 , 2021 , and the related statement of act ivities for the year then ended , and the related notes to the
financial statements.
In our op inion , the financial statements referred to above present fairly , in all material respects , the
financial position of Salina Community Economic Development Organization as of December 31 , 2021 ,
and the results of its operations and its cash flows for the years then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance w ith auditing standards generally accepted in the United States of
America . Our responsibil ities under those standards are further described in the Auditor 's. Responsibilities
for the Audit of the Financial Statements section of our report. We are required to be independent of
Salina Community Economic Development Organization and to meet our other ethical respons ibilities in
accordance with the relevant ethical requirements relating to our audits. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion .
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America , and for the
design , implementation , and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement , whether due to fraud or
error.
In preparing the financial statements , management is required to evaluate whether there are conditions or
events , cons idered in the aggregate , that ra ise substantial doubt about Salina Community Economic
Development Organization 's ability to continue as a going concern within one year after the date that the
financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error , and to issue an auditor's report that
includes our opinion . Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted audit ing
standards will always detect a material misstatement when it exists . The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error , as fraud may involve
collusion , forgery, intentional omissions , misrepresentations , or the overr ide of internal contro l.
Misstatements , including omissions , are considered material if there is a substantial likelihood that ,
·individually or in the aggregate , they would influence the judgment made by a reasonable user based on
the financial statements .
1619 E. Iron Avenue • P.O. Box 1516 • Salina, Kansas 67402-1516 • Phone 785-825-5494
Fax 785-825-4450 • www.woodsanddurham.com
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks . Such procedures
include examining , on a test basis , evidence regarding the amounts and disclosures in the financial
statements .
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances , but not for the purpose of expressing an opinion on the
effectiveness of Salina Community Economic Development Organization's internal control.
Accordingly, no such opinion is expressed
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements .
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate , that
raise substantial doubt about Salina Community Economic Development Organization's ability to
continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings , and certain internal control related matters
that we identified during the audit.
July 15, 2022
2
Woods el, <Durham, Cfitd.
WOODS & DURHAM , CHTD .
Certified Public Accountants
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
STATEMENT OF FINANCIAL POSITION
December 31, 2021
ASSETS
Current Assets
Cash
Unconditional promises to give :
Member contributions receivable -current
Prepaid health insurance
Total Current Assets
Long-term Unconditional Promises to Give
Member contribution receivable -non-current
Property and Equipment
Furniture and equipment
Less: accumulated depreciation
Net Property and Equipment
TOT AL ASSETS
Current Liabilities
Accounts payable
Payroll liabilities
TOT AL LIABILITIES
Net Assets
Without donor restrictions
With donor restrictions
TOTAL NET ASSETS
LIABILITIES AND NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
See Independent Auditors' Report and Notes to Financial Statements.
3
$
$
$
$
222 ,579
360,000
1,413
583 ,992
698 ,962
7,413
(4,750)
2 ,663
1,285 ,617
791
449
1 ,240
585,415
698 ,962
1,284 ,377
1,285,617
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2021
CHANGES IN NET ASSETS WITHOUT DONOR RESTRICTIONS
Private Support
Member contributions
Other income
Gifts in kind
Interest income
Total Support and Revenue Without Donor Restrictions
Net Assets Released From Restrictions
Restrictions satisfied by payments
Total Revenue and Other Support Without Donor Restrictions
Expenses
Program Services
Economic Development Expenses
Marketing events
Travel and meetings
Payroll and benefits
Contract services
Advertising and promotion
Other program services
Total Program Services
Supporting Services
Contract services
Payroll and benefits
Office expense
Depreciation
Insurance
Donated facilities
Other supporting services
Total Supporting Services
Total Expenses Without Donor Restrictions
Change in Net Assets Without Donor Restrictions
CHANGES IN NET ASSETS WITH DONOR RESTRICTIONS
Unconditional promises to give -member contributions
Restrictions satisfied by payments
Change in Net Assets With Donor Restrictions
NET ASSETS -BEGINNING OF YEAR
NET ASSETS -END OF YEAR
$ 651 ,000
2 ,533
20 ,000
632
20 ,000
5 ,000
6,373
193 ,146
26 ,710
19 ,300
2,550
11 ,375
23,437
5 ,307
1,474
5 ,437
20 ,000
358
698 ,962
(20,000)
See Independent Auditors' Report and Notes to Financial Statements .
4
674,165
694 ,1 65
253 ,079
67 ,388
320,467
373 ,698
678 ,962
231 ,717
$ 1,284,377
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
STATEMENT OF CASH FLOWS
December 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Increase in Net Assets
Adjustments to reconcile decrease in net assets to
net cash used in operating activities :
Depreciation
Contributions restricted for long-term purposes
Increase in:
Member contributions receivable
Prepaid health insurance
Decrease in :
Accounts payable
Payroll liabilities
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment
NET DECREASE IN CASH
CASH -BEGINNING OF YEAR
CASH -END OF YEAR
SUPPLEMENTAL CASH FLOW DISCLOSURES
Cash paid for income taxes
Cash paid for interest
See Independent Auditors ' Report and Notes to Financial Statements.
5
$ 1 ,052 ,660
1,474
(698,962)
(360 ,000)
(50)
(1,419)
(3 ,562)
(9 ,8 59 )
(3 , 182)
(13 ,041)
235 ,620
$ 222 ,579
$
$
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
NOTE 1 -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Salina Community Economic Development Organization was created by an agreement dated November
17 , 2015 , between the members : Saline County, Kansas , The Salina Airport Authority, The City of Salina ,
Kansas , and the Salina Area Chamber of Commerce , to be the community's primary economic development
entity. It is funded solely by member contributions on a three-year contractual basis .
Basis of Accounting -The Organization prepares its Financial Statements on the accrual basis of accounting,
which is a basis of accounting in compliance with generally approved accounting principles . Under this basis ,
revenues are recorded when earned and expenses are recorded when they are incurred .
Basis of Presentation -The Organization is required to report information regarding its financial position and
activities according to two classes of net assets : with donor restrictions and without donor restrictions.
Net Assets -Net assets , revenues , gains , and losses are classified based on the existence or absence of
donor-or-grantor-imposed restrictions . Net assets without donor restrictions are available for use in general
operations and not subject to donor restrictions. Net assets with donor restrictions are subject to donor-
imposed restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met
by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual
in nature , where the donor stipulates that resources be maintained in perpetuity .
Contributions -Contributions of cash and other assets rece ived without donor stipulations are reported as
support and net assets without donor restrictions. Contributions received with a donor stipulation that limits their
use are reported as support and net assets with donor restrictions. When a donor-stipulated time restriction
ends , or purpose restriction is accomplished , net assets with donor restrictions are reclassified to net assets
without donor restrictions and reported in the statement of activities as net assets released from restrictions .
Promises to Give -Conditional promises to give are not recognized in the financial statements until the
conditions are substantially met or explicitly waived by the donor. Unconditional promises to give that are
expected to be collected within one year are recorded at net realizable value. Unconditional promises to give
that are expected to be collected in more than one year are recorded at fair value , which is measured as the
present value of their future cash flows . The discounts on those amounts are computed using a rounded
average risk-free rate .
Property and Equipment -The amount recorded as Property and Equipment represents equipment
purchased by the Salina Community Economic Development Organization and is recorded at cost.
Depreciation has been provided for those assets based upon the straight-line method over the useful life of the
assets . It is the policy of the Organization to capitalize equipment in excess of $1 ,000. There are no restrictions
placed , nor liens against any of these assets .
Cash and Cash Equivalents -Cash and Cash Equivalents includes all monies in the Organization's bank
account. Fair market value equals carrying amounts .
Use of Estimates -The preparation of financial statements requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from
those estimates .
Income Taxes -The Salina Community Economic Development Organization is exempt from federal income
taxes under Section 501 (c)(6) of the Internal Revenue Code , and is classified as "other than a private
foundation ." Therefore , no provision for income taxes is reflected in these financial statements .
6
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
NOTE 1 -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Grants with Donor Restrictions -The Salina Community Economic Development Organization received a
$20,000 grant during 2020, in which the donor stipulated that the funds were to be used for updating of the
organization's strategic plan to address COVID-related issues and their impact. As of December 31, 2021, all of
the funds have been used for this purpose . The funds were released from Net Assets with Donor Restrictions
during the current year .
Advertising Costs -Advertising and promotional costs are charged to expense as incurred . During the year,
the Organization spent $19,300 for advertising and promotional expense .
Fair Value of Financial Instruments -The amounts reported on the Statement of Financial Position for
member contributions receivable, accounts payable and payroll and other liabilities , are reported at actual
value, which is considered to be fair value, due to the short-term nature of these financial instruments .
Functional A/location of Expenses -The costs of providing various programs and other activities have been
summarized on a functional basis in the Statement of Activities . The Statement of Functional Expenses
presents the natural classification of expenses by function . Accordingly, certain costs have been allocated
among the programs and supporting services benefited . The expenses allocated include salaries and benefits,
which were allocated on the basis of estimated time and effort.
Contributed Services -No amounts have been reflected in the financial statements for donated services. The
Organization generally pays for services requiring specific expertise . Some individuals volunteer their time and
perform tasks that assist the Organization ; however, these services do not meet the criteria for recognition .
NOTE 2 -LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS
Financial assets available for general expenditure, that is, without donor or other restrictions limiting their use ,
within one year of December 31 , 2021, is comprised of the following :
Total financial assets
Promises to give, current
Donor-imposed restrictions
Financial assets available within one year
for general expenditures within one year
$
$
222,579
360,000
582,579
As part of the Organization's liquidity management, the account is set up for automatic transfers between the
operating bank account and commercial sweep account. The sweep account is set up to monitor the balance of
the checking account and will transfer funds as needed.
7
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
NOTE 3 -SUPPORT -MEMBER CONTRIBUTION/PROMISES TO GIVE
The funding for the Organization is based upon ~hedu )d~~itional member contr ibutions over a three-
year funding model. "{ J. ~ c;f ('11'( JD~ :; "~ ,..,-tf(AL
The current funding schedule is as follows : z .7(, 6'
2019 2020 2021
City of Salina $ 250 ,000 $ 225 ,000 $ 250 ,000
Saline County 20 ,000 20 ,000 20 ,000
Salina Airport Authority 20 ,000 20 ,500 21 ,000
$ 290 ,000 $ 265 ,500 $ 291 ,000
The future funding schedule is as follows :
2022 2023 2024
City of Salina $ 275 ,000 $ 275 ,000 $ 275 ,000
Saline County 35 ,000 35 ,000 35 ,000
Salina Airport Authority 50 ,000 50 ,000 50 ,000
$ 360 ,000 $ 360 ,000 $ 360,000
The future funding schedule calculated at net present value with a 2% discount rate is as follows :
2022 2023 2024
City of Salina $ 275 ,000 $ 269 ,608 $ 264 ,322
Saline County 35 ,000 34 ,313 33 ,641
Salina Airport Authority 50 ,000 49 ,020 48 ,058
$ 36 0 ,000 $ 352 ,941 $ 346 ,021
The Organization considers these contribution receivables as fully collectible in the year which the agreement
states, so , accordingly, no allowance for uncollectibility is recorded .
NOTE 4 -CONCENTRATION OF CREDIT RISK
For certain periods prior to year-end, the cash balance of the Organization exceeded the FDIC account limits at
the banking institution. The Organization believes there is minimal credit risk relative to its cash accounts .
NOTE 5 -CONCENTRATION OF REVENUE RISK
During the year ended December 31 , 2021 , the Organization's member contributions made up approx imately
99% of total revenues and 100% of total receivables .
NOTE 6 -UNCERTAIN INCOME TAX POSITION
The Organization follows the provision of uncertain tax positions as addressed in FASB Accounting Standards .
The Organization believes that it has appropriate support for any tax position taken , and as such , does not have
any uncertain tax positions that are material to the financial statements .
NOTE 7 -COMPENSATED ABSENCES
Employees are not permitted to carry over unused vacation or illness allowances. Accordingly, no accrual for
such is included in these financial statements.
8
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
NOTE 8 -RETIREMENT EXPENSE
Retirement expense for the year ending December 31 , 2021 was $11 ,053. The retirement plan is essentially an
IRA contribution made on behalf of the employee , recorded as additional compensation to the employee .
NOTE 9 -GIFTS IN-KIND
The Organization utilizes office space, furnishings, and staff support from the Salina Area Chamber of
Commerce. The facilities and support are provided at no cost to the Organization , but based on current market
rates , the Organization would have paid $20 ,000 for the year ended December 31 , 2021.
NOTE 10 -RELATED PARTIES
The Organization has a revenue agreement (see Note 3) with three related party organizations. Member
contributions from related parties were $291 ,000 for the year ending December 31, 2021 . Gifts in-kind from
related parties were $20 ,000 for the year ending December 31 , 2021 (see Note 9). During the year , the
Organization received a $2,500 contribution from the Salina Airport Authority in addition to their member dues
noted in the revenue agreement.
NOTE11-SUBSEQUENTEVENTS
Management has evaluated subsequent events through July 15 , 2022 , the date on which these financial
statements were available to be issued . Management concluded that there were no material subsequent
events or transactions that required additional disclosure in these financial statements.
9