Audit - 1995/1996
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS
December 31,1996 and 1995
CLUBINE AND RETTELE, CHARTERED
Certified Public Accountants
Salina, Kansas
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
CONTENTS
Page
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
1
Exhibit A BALANCE SHEETS
2
Exhibit B STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE AND COMPARISON WITH BUDGET
3
Exhibit C STATEMENTS OF EXPENDITURES AND COMPARISON
WITH BUDGET
4
NOTES TO FINANCIAL STATEMENTS
5-10
Supplemental Information
Schedule 1 Grants from the Kansas State Department of Health
and Environment
11
Schedule 2 Fees for Services
12
SINGLE AUDIT SECTION
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
13-14
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
15
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE
USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
16-18
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE
PROGRAMS
19-20
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL
REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE
PROGRAMS
21
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
CONTENTS (CONTD.)
SINGLE AUDIT SECTION (CONTD.)
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL
ASSISTANCE
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Page
22
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Contents
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL SECTION
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CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langleyhc.p.A.
James R. Cola an, C.P.A.
Jon K Bell, C.PA
Offices in
Salina
Ellsworth
INDEPENDENT AUDITORS' REPORT
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas:
We have audited the accompanying financial statements of Salina-Saline County Board of Health,
Salina, Kansas, as of and for the years ended December 31, 1996 and 1995 as listed in the table of
contents. These financial statements are the responsibility of the Board of Health's management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards, the Kansas
Municipal Audit Guide, Government Auditing Standards, issued by the Comptroller General of the
United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of
State and Local Governments". Those standards and OMB Circular A-128 require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for
our opinion.
Salina-Saline County Board of Health does not maintain a general fixed assets account group and,
accordingly, the accompanying financial statements do not include the general fixed assets account
group, which should be included in order to conform with generally accepted accounting principles.
In our opinion, except for the effects on the financial statements of the omission of the general fixed
assets account group, the financial statements referred to in the first paragraph present fairly, in all
material respects, the financial position of the Salina-Saline County Board of Health at December 31,
1996 and 1995, and the results of its operations and changes in its fund balance for the years then
ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic financial statements taken
as a whole. The supplemental information on pages 11 and 12 is presented for purposes of
additional analysis and is not a required part of the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements
referred to above and, in our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
Respectfully submitted,
\11.. h.:- L' c.-S2 ~
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I SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit I
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I BALANCE SHEETS
I December 31,
1996 1995
ASSETS
I Cash $ 592,004 $ 628,405
Accounts receivable
I State of Kansas Department of Health and Environment
(Note 5) 51,291 89,521
Medicare and Medicaid 192,515 112,404
I Other home care services 42,347 13,106
Medicare adjustments receivable (Note 6) 2,372 8,553
I Totals $ 880,529 $ 851,989
I LIABILITIES AND FUND BALANCE
Liabilities
I Vouchers payable $ 30,088 $ 31,248
Payroll tax liabilities 3,077
Accrued salaries 75,634 59,276
I Accrued liability for compensated absences 111,205 98,417
Animal Shelter Reward Fund 4,966 3,212
Total Liabilities 221,893 195,230
I Deferred Income
Funds advanced for future restricted purposes (Note 5) 32,823 31,818
I Fund Balance (Exhibit II)
Unreserved 625,813 624,941
I I
Totals $ 880,529 $ 851,989
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I The accompanying notes are an integral part
of these financial statements.
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SALlNA- SALINE COUNTY BOARD OF HEALTH
I Salina, Kansas
Exhibit II
I
I STATEMENTS OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
I AND COMPARISON WITH BUDGET
I 1996 1995
Actual Budget Actual Budget
I Revenues
Appropriation from Saline
County, Kansas (Note 4) $ 276,900 $ 276,000 $ 272,947 $ 273,247
I Appropriation from City of
Salina, Kansas (Note 4) 389,742 389,742 382,947 382,947
Grants from the State
I Department of Health
and Environment 543,812 519,935 598,049 574,823
Fees for services 1,151,449 880,000 1,061,402 880,000
I Interest income 13,749 17,000 20,272 17,000
Miscellaneous revenues 207,623 15,000 97,719 15,000
Total Revenues 2,583,275 2,097,677 2,433,336 2,143,017
I Expenditures (Exhibit III) 2,582,403 2,360,616 2,293,432 2,249,562
I Excess (Deficit) of Revenues
over Expenditures 872 (262,939) 139,904 (106,545)
I Fund Balance, January 1 624,941 280,000 485,037 150,000
Fund Balance, December 31 $ 625,813 $ 17,061 $ 624,941 $ 43,455
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I The accompanying notes are an integral part
of these financial statements.
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SALINA-SALINE COUNTY BOARD OF HEALTH
I Salina, Kansas
Exhibit III
I STATEMENTS OF EXPENDITURES
AND COMPARISON WITH BUDGET
I 1996 1995
Actual Budget Actual Budget
I Personal Services
Salaries $ 1,640,513 $ 1,372,669 $ 1,437,744 $ 1,325,000
Social security 117,993 105,010 106,279 101,362
I Retirement 34,267 34,043 27,717 28,000
Health insurance 118,415 180,000 172,864 155,000
Unemployment insurance 20,855 18,394 1 ,443 1,200
I Professional services 153,318 235,000 161,515 235,000
Contractual services
Therapeutic devices and
I appliances 900
Auditing 6,000 8,500 8,066 8,000
Accounting 151 500 500
I Building and grounds - Remodeling
and repair 23,866 15,000 16,311 15,000
Telephone 6,611 10,000 7,380 9,000
Mileage 84,957 70,000 73,220 70,000
I Service contracts and equipment
lease 5,183 3,500 4,379 3,500
Insurance 77,027 55,000 52,588 53,000
I Expendable supplies
Office supplies 69,159 55,000 52,522 55,000
Office repair and maintenance 213
I Postage and express 14,744 13,000 11,854 11 ,000
Books, dues and subscriptions 8,265 6,000 3,917 6,000
Equipment maintenance and repair 5,839 3,000 4,087 3,000
I Gasoline and oil 3,393 3,000 2,053 3,000
Clinical and medical supplies 108,834 85,000 83,815 85,000
Chemicals 4,410 10,000 4,300 10,000
I Veterinary and medical services 7,333 6,000 4,382 6,000
Animal maintenance 1,563 6,000 2,148 3,000
Professional meetings 23,852 15,000 12,411 15,000
II Utilities and water 14,272 20,000 13,083 17,000
Custodial services 2,212 6,000 5,632 6,000
Miscellaneous expense 13,419 9,521
:1 Capital equipment 15,952 25,000 13,088 25,000
Total Expenditures $ 2,582,403 $ 2,360,616 $ 2,293,432 $ 2,249,562
I The accompanying notes are an integral part
I of these financial statements.
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
1. Summary of Significant Accounting Policies
A. Reporting Entity
The Salina-Saline County Board of Health was formed on June 28, 1955, under the Joint
Resolution and Agreement of the County of Saline and the City of Salina. The Board of Health
is a joint venture organized for the purpose of promoting the public health and sanitation of the
county and city. The Governing Body of the Board of Health is composed of eleven members,
three appointed City Commissioners, three appointed County Commissioners, and five
members selected by the six appointed Commissioners.
Based on the criteria set forth in Statement No. 14 of the Governmental Accounting Standards
Board, the Board of Health is considered a joint venture between the County of Saline and the
City of Salina due to ongoing financial responsibility of those governments for the Board of
Health.
B. Basis of Statement Presentation
The Board of Health maintains its accounting records in accordance with the principles of fund
accounting in order to ensure observance of limitations and restrictions placed on the use of
resources available. This is the procedure by which resources are classified for accounting
and reporting into funds established according to their nature and purposes. The significant
accounting policies followed by the Board of Health are described below to enhance the
usefulness of the financial statements to the reader.
1) The accompanying financial statements have been prepared on the modified accrual basis
of accounting. Under the modified accrual basis of accounting, revenues are recognized
when susceptible to accrual (Le., when they become both measurable and available).
"Measurable" means the amount of the transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. Revenues from cost-reimbursement grants are recognized
in the period the expenditure is made.
Deferred revenues arise when grant monies are received prior to the incurrence of
qualifying expenditures. In subsequent periods, when both revenue recognition criteria are
met, or when the Board of Health has a legal claim to the resources, the liability for
deferred revenue is removed from the balance sheet and revenue is recognized.
2) Generally accepted accounting principles require that a general fixed assets account group
be maintained. The accompanying financial statements do not conform with generally
accepted accounting principles in that a general fixed assets account group is not included.
The Board of Health has obtained a waiver from the Director of Accounts and Reports of
the requirements of K.S.A. 75-1120a as related to the preparation and maintenance of a
general fixed assets account group.
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3) Individual accounts receivable are written off to bad debt expense in the period in which it
is determined that they are uncollectible. The Board of Health considers accounts
receivable to be fully collectible; accordingly, no allowance for doubtful accounts is
required.
4) Reimbursements under the Medicare program are subject to adjustment after the end of
the year, based upon audited "reasonable costs" incurred in providing the services.
Estimated settlements receivable from or payable to Medicare are recognized in the year
services are provided. Differences between estimated settlements and final settlements as
determined by the Intermediary are recorded as an adjustment in the year settled.
2. Budget
The Board of Health does not have tax levying powers and is not required to publish a budget-. A
budget is adopted annually by the Governing Board for the purpose of determining appropriations
to be requested from Saline County and the City of Salina. The budget is prepared on the
modified accrual basis of accounting.
3. Cash and Investments
Deposits - At December 31, 1996 and 1995, respectively, the carrying amount of the Board of
Health's deposits were $585,481 and $628,305, and the bank balances were $638,962 and
$619,049. In accordance with Kansas statutes, the collateral securities were held under joint
custody receipts issued by a third-party bank, which bank is independent of the depository
financial institution.
Board of Health money on deposit is categorized into one of three risk categories to give an
indication of the level of risk assumed by the Board of Health at year end. Category 1 includes
deposits insured or collateralized with securities held by the Board of Health or by its agent in the
Board of Health's name. Category 2 includes deposits collateralized with securities held by the
pledging financial institution's trust department or agent in the Board of Health's name. Category
3 includes deposits that are uncollateralized, including any deposits that are collateralized with
securities held by the pledging financial institution, or by its trust department or agent, but not in
the Board of Health's name. All deposits of the Board of Health in excess of FDIC insurance
coverage are Risk Category 2.
Investments - Kansas municipalities, such as the Salina-Saline County Board of Health, are
authorized by Kansas statutes to invest cash balances generally in:
(1) Temporary notes or no fund warrants issued by the investing governmental unit,
(2) Time deposits, open accounts,
(3) Time certificates of deposit, and
(4) Repurchase agreements.
Other investment options are available if eligible financial institutions cannot or will not make the
investments described in (2) and (3) above available at interest rates equal to or greater than the
statutory investment rate. The Board of Health had no such investments during the years 1996
and 1995.
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4. Appropriations from Taxing Authorities
Saline County and the City of Salina share the net operating costs of the Board of Health.
Necessary funds are included in the tax levies of the respective municipalities, and are
summarized by the following schedule:
1996 1995
Saline County, Kansas
Regular tax appropriation
$276900 $272.947
City of Salina, Kansas
Regular tax appropriation
$389742 $382.947
5. Grants from the State of Kansas Department of Health and Environment
Agreements were in effect during 1996 and 1995 with the State of Kansas Department of Health
and Environment regarding certain grants which were funded by federal and state monies. Current
agreements are for the state's fiscal year ended June 30, 1997. Unless specifically noted, the
grants are payable 25% on or about July 1, and 12.5% on our about October 1, November 15,
January 1, February 15, April 1, and May 15. Unexpended grant amounts are periodically withheld
from grant payments. If expenditures for these programs exceed the grant award, the Board of
Health is responsible for the excess. Descriptions of the grants follow:
Federal Programs
Child Health Program
Matching funds are provided to furnish programs to promote optimum health for
children. The current agreement provides that the Board of Health will receive $8,500.
Maternal and Infant Program
Matching funds are provided to furnish comprehensive health care for adolescent and
other high risk mothers and their infants. The current agreement provides that the
Board of Health will receive $77,421.
Family Planning Program
Matching funds are provided to establish and maintain family planning centers to
furnish and disseminate information concerning planned parenthood. The current
agreement provides that the Board of Health will receive $33,611.
Special Supplemental Food Program for Women, Infants, and Children
Reimbursements are provided for administrative costs of the Women, Infants and
Children Supplemental Food Program. The program provides nutritious foods for
pregnant and nursing women, infants up to age 1 year, and children up to age 5 years.
The current agreement provides that the Board of Health will be reimbursed monthly for
actual expenses up to an annual total of $259,530.
Outreach Clinic Services
Reimbursements are provided for coordination of Cardiac and Neurology Outreach
Clinics at Salina. The current agreement provides that the Board of Health will be
reimbursed quarterly for actual expenses up to an annual total of $10,675.
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Healthy Start/Home Visitor Program
Matching funds are provided to furnish home and hospital visits by trained lay visitors to
families with a newborn infant and to pregnant women. The current agreement provides
that the Board of Health will receive $16,721.
AIDS Counseling and Testing Site Program
Funds are provided for the counseling and testing of Acquired Immune Deficiency
Syndrome. The current agreement provides that the Board of Health will receive $4,027.
HIV Case Management Program
Funds are provided for services performed for new and previously diagnosed HIV positive
persons. The current agreement provides that the Board of Health will receive $15,800.
Child Care Licensing Program
Funds are provided for the evaluation, registration, and licensing of homes and/or centers
caring for children. The current agreement provides that the Board of Health will receive
$14,523 payable in quarterly amounts based on number of licenses issued.
Child Health Assessment
Funds are provided to furnish child health assessments at school entry for kindergartners
and other first time school entrants. The current agreement, which expired June 30, 1995
provided that the Board of Health received $4,342 for the fiscal year July 1, 1994 through
June 30, 1995.
Immunization Action Plan
Funds are provided for the implementation of an increased age-appropriate level of
immunization for children aged birth to two years. The current agreement provides that
Board of Health will receive $15,700.
State Programs
Food Service Licensing Program
Funds are provided for the evaluation, registration, and licensing of food service
establishments. The current agreement provides that the Board of Health will receive 80%
of annual licensing fees, payable monthly.
General Health Services - State Formula Grant
Matching funds are provided to help insure that adequate health services are available to
the Saline County Community. The current agreement provides that the Board of Health
will receive $34,145 payable in quarterly installments.
AIDS Health Education/Risk Reduction Program
Funds are provided to identify, coordinate, and provide public information and education
regarding Acquired Immune Deficiency Syndrome. The current agreement provides that
the Board of Health will receive $4,492.
Local Environmental Protection Program
Funds are provided for the development and implementation of the Lincoln, Ellsworth,
Ottawa, and Saline County Sanitary Codes. The current agreement provides that the
Board will receive $61,480.
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The Board of Health periodically receives payments in advance or reimbursements to finance
expenditures incurred in administering the above programs. The following schedules summarize
accounts receivable and deferred income at December 31, 1996 and 1995:
Accounts Receivable
Special Supplemenal Food Program for
Women, Infants, and Children
Food Service Licensing Program
Outreach Clinic Services
Total Accounts Receivable
December 31.
1996 1995
$ 41,844 $ 74,551
7,504 11,640
1.943 3.330
$ 51.291 $ 89.521
$ 8,536 $ 8,934
2,090 2,131
1,063 1,063
9,678 9,864
4,201 4,423
4,937 3,588
1.815 1.815
$ 32.320 $ 31.818
Deferred Income
General Health Services - State Formula Grant
Healthy Start/Home Visitor Program
Child Health Program
Maternal and Infant Program
Family Planning
Immunization Action Plan
Child Care Licensing Program
Total Deferred Income
6. Home Health Agency
The Board of Health provides services to patients which are reimbursed by third party payers,
principally Medicare and Medicaid. Total fees for services include reimbursements made under the
Medicare and Medicaid programs. Reimbursements under these programs are subject to adjustment
after the end of the year, as discussed in Note 1 above.
Accounts receivable at December 31, 1996 and 1995, include $2,372 and $8,553, respectively, for
the estimated settlement of the annual Medicare cost statement.
7. Defined Benefit Pension Plan
Substantially all full-time employees of the Board of Health participate in the Kansas Public
Employees Retirement System ("System"), a multiple-employer public employee retirement system.
The payroll for employees covered by the System for the years 1996 and 1995 was $1,377,700 and
$1,268,649, respectively. The total payroll was $1,554,939 and $1,380,441 for the years 1996 and
1995, respectively.
Substantially all employees of the Board of Health are eligible to participate in the System after one
year of employment. Employees who retire at or after age 65 or age 62 with ten years service credit
or at any age when years of service plus age equal 85 "points" are entitled to a retirement benefit,
payable monthly for life, equal to one percent of their final average salary for each year of "prior"
service and 1.75 percent for each year of "participating" service. Final average salary is the
employee's average salary over the higher of four years of credited service including add-ons such as
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accrued sick leave and vacation leave or a three year average without add-ons. For those hired
July 1, 1993 or later, final average salary is a three year average with no add-ons. Benefits fully vest
on reaching ten years of service. Vested employees may retire at age 55 and receive reduced
retirement benefits. The system also provides death and disability benefits. Benefits are established
by State statute.
Covered employees are required by State statute to contribute four percent of their salary to the plan.
The employer is required by the same statute to contribute the remaining amounts necessary to pay
benefits when due. The contribution requirement for the years 1996 and 1995, respectively, was
$97,456 and $78,617, which consisted of $34,256 and $27,871 from the employer and $63,200 and
$50,746 from employees; these contributions represented 2.2% and 4% of covered payroll for 1996
and 2.0% and 4% of covered payroll for 1995.
8. Compliance with Kansas Statutes
No statutory violations were noted.
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUPPLEMENTAL INFORMATION
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Schedule 1
GRANTS FROM THE KANSAS STATE DEPARTMENT
OF HEALTH AND ENVIRONMENT
1996 1995
Federal Programs
Child Health Program $ 8,500 $ 8,500
Maternal and Infant Program 78,167 78,912
Family Planning Program 34,494 35,380
Women, Infants, and Children Supplemental Food
Program 228,270 271,910
Outreach Clinic Services 9,288 11,848
Healthy Start/Home Visitor Program 16,882 17,045
AIDS Counseling and Testing Site Program 4,027 4,027
HIV Case Management 16,151 14,539
Child Care Licensing Program 14,523 18,523
Immunization Action Plan 14,351 23,760
Child Health Assessment Program 1,022
Total Federal Programs 424,653 485,466
State Programs
Food Service Licensing Program 15,672 22,104
General Health Services - State Formula Grant 35,116 36,672
AIDS Health Education/Risk Reduction Program 4,492 4,701
Local Environmental Protection Program 62,517 44,661
Miscellaneous 1,362 4,445
Total State Programs 119,159 112,583
Total Grants $ 543,812 $ 598,049
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Schedule 2
FEES FOR SERVICES
1996 1995
Title XVIII $ 653,755 $ 520,360
Title XIX 280,846 341,965
Patients and insurance 38,161 54,437
Home care services 6,245 5,244
Homemaker services 7,723 13,502
Family planning services 40,267 41,876
General nursing clinics 105,852 61,854
Environmental health fees 5,662 5,015
Day care provider fees 5,706 6,209
Senior care fees 5,335 6,044
Child health assessment fees 1,897 4,896
Total Fees for Services $ 1,151,449 $ 1,061,402
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SINGLE AUDIT SECTION
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CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langleyhc.p.A.
James R. Cola an, C.P.A.
Jon K Bell, C.PA
Offices in
Salina
Ellsworth
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
STRUCTURE BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas:
We have audited the accompanying financial statements of Salina-Saline County Board of Health, for
the year ended December 31. 1996 and have issued our report thereon dated May 1, 1997. In our
report, our opinion on the financial statements was qualified because the financial statements do not
include the general fixed assets account group, which should be included in order for the financial
statements to conform with generally accepted accounting principles.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards. issued by the Comptroller General of the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
The management of the Salina-Saline County Board of Health is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control structure are to provide
management with reasonable. but not absolute. assurance that assets are safeguarded against loss
from unauthorized use or disposition. and that transactions are executed in accordance with
management's authorization and recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles. Because of inherent limitations in any
internal control structure, errors, or irregularities may nevertheless occur and not be detected. Also,
projection of any evaluation of the structure to future periods is subject to the risk that procedures may
become inadequate because of changes in conditions or that the effectiveness of the design and
operation of policies and procedures may deteriorate.
In planning and performing our audit of the financial statements of Salina-Saline County Board of
Health, for the year ended December 31, 1996, we obtained an understanding of the internal control
structure. With respect to the internal control structure, we obtained an understanding of the design
of relevant policies and procedures and whether they have been placed in operation, and we
assessed control risk in order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and not to provide an opinion on the internal control structure.
Accordingly, we do not express such an opinion.
Our consideration of the internal control structure would not necessarily disclose all matters in the
internal control structure that might be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material weakness is a condition in which the
design or operation of one or more of the internal control structure elements does not reduce to a
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relatively low level the risk that errors and irregularities in amounts that would be material in relation to
the financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control structure and its operation that we consider to be material weaknesses as
defined above.
However, we noted certain matters involving the internal control structure and its operation that we
have reported to the management of the Salina-Saline County Board of Health, in a separate letter
dated May 1, 1997.
This report is intended for the information of the Governing Board and management of the Salina-
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency. and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report which, upon acceptance by the Salina-Saline County Board of
Health, is a matter of public record.
Salina, Kansas
May 1. 1997
Respectfully submitted,
CJhj.: . __Q~R.
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CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
Robert I. Clubine, C.P.A.
David A. Retlele, C.P.A.
Jay D. Langley, C.P.A.
James R. Colahan, C.P.A.
Jon K Bell, C.P.A.
Offices in
Salina
Ellsworth
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas:
We have audited the financial statements of the Salina-Saline County Board of Health for the year
ended December 31, 1996, and have issued our report thereon dated May 1, 1997. In our report, our
opinion on the financial statements was qualified because the financial statements do not include the
general fixed assets account group, which should be included in order for the financial statements to
conform with generally accepted accounting principles.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States.Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the Salina-Saline County Board
of Health is the responsibility of the Board of Health's management. As part of obtaining reasonable
assurance about whether the financial statements are free of material misstatement, we performed
tests of the Board of Health's compliance with certain provisions of laws, regulations, contracts and
grants. However, the objective of our audit of the financial statements was not to provide an opinion
on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests, disclosed no instances of noncompliance that are required to be reported
under government Auditing Standards.
This report is intended for the information of the Governing Board and management of the Salina-
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report which, upon acceptance by the Salina-Saline County Board of
Health, is a matter of public record.
Salina, Kansas
May 1, 1997
Respectfully submitted,
~~l.~..'-,.. ,~ ~
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CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. LangleYhC.p.A.
James R. Cola an, C.P.A.
Jon K. Bell. C.PA
Offices in
Salina
Ellsworth
INDEPENDENT AUDITORS' REPORT ON INTERNAL
CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL
FINANCIAL ASSISTANCE PROGRAMS
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas:
We have audited the financial statements of Salina-Saline County Board of Health, for the year ended
December 31, 1996, and have issued our report thereon dated May 1, 1997. In our report, our
opinion on the financial statements was qualified because the financial statements do not include the
general fixed assets account group, which should be included in order for the financial statements to
conform with generally accepted accounting principles. We have also audited the Salina-Saline
County Board of Health's compliance with requirements applicable to major federal financial
assistance programs and have issued our report thereon dated May 1, 1997.
We conducted our audit in accordance with generally accepted auditing standards; Government
Auditing Standards, issued by the Comptroller General of the United States; and Office of
Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments." Those
standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement and about
whether the Salina-Saline County Board of Health complied with laws and regulations, noncompliance
with which would be material to a major federal financial assistance program.
In planning and performing our audits for the year ended December 31, 1996, we considered the
internal control structure of the Board of Health in order to determine our auditing procedures for the
purpose of expressing our opinions on the Board of Health's financial statements and on its
compliance with requirements applicable to major federal financial assistance programs and to report
on the internal control structure in accordance with OMB Circular A-128. This report addresses our
consideration of internal control structure policies and procedures relevant to compliance with
requirements applicable to federal financial assistance programs. We have addressed internal control
structure policies and procedures relevant to our audit of the financial statements in a separate report
dated May 1, 1997.
The management of the Salina-Saline County Board of Health is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition, that transactions are executed in accordance with
management's authorization and recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles, and that federal financial assistance
programs are managed in compliance with applicable laws and regulations. Because of inherent
limitations in any internal control structure, errors, irregularities, or instances of noncompliance
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may nevertheless occur and not be detected. Also, projection of any evaluation the structure to future
periods is subject to the risk that procedures may become inadequate because of changes in
conditions or that the effectiveness of the design and operation of policies and procedures may
deteriorate.
For the purpose of this report, we have classified the significant internal control structure policies and
procedures used in administering federal financial assistance programs in the following categories:
Accounting Controls
1. Revenues/receipts
2. Expenditures/purchases/disbursements
3. Cash and investment balances
4. Financial reporting
Administrative Controls
General Requirements
1. Political activity
2. Civil Rights
3. Drug-free Workplace
4. Allowable Costs/Cost Principles
Specific Requirements
1. Types of services
2. Eligibility
3. Matching
4. Reporting
5. Cost allocation
6. Special tests and provisions
For all of the internal control structure categories listed above, we obtained an understanding of the
design of relevant policies and procedures and determined whether they have been placed in
operation, and we assessed control risk.
During the year ended December 31,1996, the Salina-Saline County Soard of Health expended 54%
of its total federal financial assistance under major federal financial assistance programs.
We performed tests of controls, as required by OMS Circular A-128, to evaluate the effectiveness of
the design and operation of internal control structure policies and procedures that we considered
relevant to preventing or detecting material noncompliance with specific requirements, general
requirements, and requirements governing claims for advances and reimbursements that are
applicable to each of the Soard of Health's major federal financial assistance programs, which are
identified in the accompanying Schedule of Federal Financial Assistance. Our procedures were less
in scope than would be necessary to render an opinion on these internal control structure policies and
procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering
federal financial assistance would not necessarily disclose all matters in the internal control structure
that might be material weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a reportable condition in which the design or operation of
one or more of the internal control structure elements does not reduce to a relatively low level the risk
that noncompliance with laws and regulations that would be material to a federal financial assistance
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program may occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal control structure and
its operation that we consider to be material weaknesses as defined above.
However, we noted certain matters inVOlving the internal control structure and its operation that we
have reported to the management of the Salina-Saline County Board of Health, in a separate letter
dated May 1,1997.
This report is intended for the information of the Governing Board and management of the Salina-
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report which, upon acceptance by the Salina-Saline County Board of
Health, is a matter of public record.
Salina, Kansas
May 1,1997
Respectfully submitted,
~~~
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Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
James R. Colahan, C.P.A.
Jon K. Bell, C.P.A.
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
Offices in
Salina
Ellsworth
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL
ASSISTANCE PROGRAMS
To the Governing Board
Salina-Saline County Board of Health
Salina. Kansas:
We have audited the financial statements of the Salina-Saline County Board of Health for the year
ended December 31,1996, and have issued our report thereon dated May 1 1997. In our report, our
opinion on the financial statements was qualified because the financial statements do not include the
general fixed assets account group, which should be included in order for the financial statements to
conform with generally accepted accounting principles.
We have also audited the Salina-Saline County Board of Health's compliance with the requirements
governing types of services allowed or unallowed; eligibility; reporting; and special tests and
provisions that are applicable to each of its major federal financial assistance programs, which are
identified in the accompanying Schedule of Federal Financial Assistance, for the year ended
December 31, 1996. The management of the Salina-Saline County Board of Health is responsible for
the Board of Health's compliance with those requirements. Our responsibility is to express an opinion
on compliance with those requirements based on our audit.
We conducted our audit of compliance with those requirements in accordance with generally accepted
auditing standards, Government Auditing Standards. issued by the Comptroller General of the United
States, and Office of Management and Budget Circular A-128, "Audits of State and Local
Governments." Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether material noncompliance with the requirements referred to above occurred.
An audit includes examining, on a test basis, evidence about the Salina-Saline County Board of
Health's compliance with those requirements. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the Salina-Saline County Board of Health complied. in all material respects, with the
requirements governing types of services allowed or unallowed; eligibility; reporting; and special tests
and provisions that are applicable to each of its major federal financial assistance programs for the
year ended December 31. 1996.
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This report is intended for the information of the Governing Board and management of the Salina-
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report, which, upon acceptance by the Salina-Saline County Board of
Health, is a matter of public record.
Salina, Kansas
May 1, 1997
Respectfully submitted,
~-3l !d~~_
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CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBUC ACCOUNTANTS
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langleyhc.PA
James R. Cola an, C.PA
Jon K Bell. C.PA
Offices in
Salina
Ellsworth
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE
GENERAL REQUIREMENTS APPLICABLE TO FEDERAL
FINANCIAL ASSISTANCE PROGRAMS
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas:
We have audited the financial statements of the Salina-Saline County Board of Health for the year
ended December 31,1996, and have issued our report thereon dated May 1,1997. In our report, our
opinion on the financial statements was qualified because the financial statements do not include the
general fixed assets account group, which should be included in order for the financial statements to
conform with generally accepted accounting principles.
We have applied procedures to test the Salina-Saline County Board of Health's compliance with the
following requirements applicable to its federal financial assistance programs, which are identified in
the Schedule of Federal Financial Assistance, for the year ended December 31, 1996: political
activity, civil rights, Drug-free Workplace Act, and allowable costs/cost principles.
Our procedures were limited to the applicable procedures described in the Office of Management and
Budget's "Compliance Supplement for Single Audits of State and Local Governments." Our
procedures were substantially less in scope than an audit, the objective of which is the expression of
an opinion on the Salina-Saline County Board of Health's compliance with the requirements listed in
the preceding paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the second paragraph of this report. With respect to
items not tested, nothing came to our attention that caused us to believe that the Salina-Saline County
Board of Health had not complied, in all material respects, with those requirements. Also, the results
of our procedures did not disclose any immaterial instances of noncompliance with those
requirements.
This report is intended for the information of the Governing Board and management of the Salina-
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report, which, upon acceptance by the Salina-Saline County Board of
Health, is a matter of public record.
Salina, Kansas
May 1,1997
Respectfully submitted,
~,,~~,-'.. ,--)..~
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31,1996
Current Year Findinas:
None
Prior Year Findinas:
None
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Robert I. Clubine, C.P.A.
David A. Rettele, C.PA
Jay D. Langleyhc.p.A.
James R. Cola an, C.P.A.
Jon K Bell, C.P.A.
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
Offices in
Salina
Ellsworth
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF
FEDERAL FINANCIAL ASSISTANCE
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas:
We have audited the financial statements of the Salina-Saline County Board of Health, for the year
ended December 31, 1996, and have issued our report thereon dated May 1, 1997. These financial
statements are the responsibility of the Salina-Saline County Board of Health's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government
Auditing Standards, issued by the Comptroller General of the United States, and the provisions of
Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those
standards and OMB A-128 require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
Our opinion on the financial statements was qualified because the financial statements do not include
the general fixed assets account group, which should be included in order for the financial statements
to conform with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the financial statements of the
Salina-Saline County Board of Health taken as a whole. The accompanying Schedule of Federal
Financial Assistance is presented for purposes of additional analysis and is not a required part of the
financial statements. The information in that schedule has been subjected to the auditing procedures
applied in the audit of the financial statements and, in our opinion, is fairly presented in all material
respects in relation to the financial statements taken as a whole.
Salina, Kansas
May 1,1997
Respectfully submitted,
~-1)~
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Local
Grants Match Expenditures
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$ 102,917 $ $ 102,917
I 125,354 125,354
228,271 228,271
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I 8,522 8,291 16,813
8,360 8,564 16,924
I 4,249 3,194 7,443
4,251 4,038 8,289
4,676 4,676
I 4,611 4,611
39,456 25,736 65,192
38,711 21,469 60,180
I 17,689 27,185 44,874
I 16,805 28,454 45,259
I 7,175 7,175
7,176 7,176
I 2,013 2,013
2,014 2,014
8,321 8,321
I 7,830 7,830
I 7,262 19,959 27,221
7,261 20,745 28,006
196,382 167,635 364,017
I $ 424,653 $ 167,635 $ 592,288
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