Audit - 2002/2003
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31,2003 and 2002
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALINA, KANSAS
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL SECTION
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
TABLE OF CONTENTS
Paqe
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
1
Exhibit I
BALANCE SHEETS
2
Exhibit II
STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
STATEMENTS OF EXPENDITURES - BUDGET AND ACTUAL
3
Exhibit III
4
Exhibit IV
STATEMENTS OF CASH FLOWS
5
NOTES TO FINANCIAL STATEMENTS
6-10
Schedule 1
SUPPLEMENTAL INFORMATION
GRANTS FROM THE KANSAS STATE DEPARTMENT OF HEALTH
AND ENVIRONMENT
11
Schedule 2
FEES FOR SERVICES
12
SINGLE AUDIT SECTION
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
13
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
14-1 5
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
16
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
17
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CORRECTIVE ACTION PLAN
18
19
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
20
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CLUBlNE&
RETIELE
awrrERED
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Certified Public Accountants
(fI1
Robert I. Clubine, C.PA
David A. Rettele, C.PA
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.PA
Stacy J. Sokol, C.PA
Marci K. Fox, C.P.A.
Delores K. Longenecker, c.P.A.
John T. Millikin, C.PA
Linda A. Suelter, C.P.A.
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218 South Santa Fe
PO. Box 2267
Sal ina, Kansas
67402-2267
Salina
785/825-5479
785/827-1188
Ellsworth
785/472-3915
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, 2003 and 2002 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 auditing standards generally accepted in the
United States of America, the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States
and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and
Reports, Department of Administration of the State of Kansas. Those standards 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.
The financial statements referred to above do not include the general fixed assets account
group, which should be included in order to conform with accounting principles generally
accepted in the United States of America. The amount that should be recorded in the
general fixed assets account group is not known.
In our opinion, except for the effect on the financial statements of the omission described in
the preceding paragraph, the financial statements referred to above present fairly, in all
material respects, the financial position of the Salina-Saline County Board of Health at
December 31,2003 and 2002, and the results of its operations and cash flows for the
years then ended in conformity with accounting principles generally accepted in the United
States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
July 1, 2004 on our consideration of Salina-Saline County Board of Health's internal control
over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grants. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with
this report in considering the results of our audits.
Our audits were conducted 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. The accompanying schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by U.S. Office of Management
and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the financial statements of Salina-Saline
County Board of Health. The supplemental information and the schedule of expenditures
of federal awards 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,
~J..lAAla~ ~
CLUBINE AND RETTELE, CHARTERED
July 1, 2004
(1)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
BALANCE SHEETS
ASSETS
Cash
Accounts receivable
State of Kansas Department of Health and Environment (Note 5)
Medicare and Medicaid
Other care services
Totals
LIABILITIES AND FUND BALANCE
Liabilities
Vouchers payable
Accrued salaries
Accrued liability for compensated absences
Animal Shelter Reward fund payable
Total Liabilities
Deferred Income
Funds advanced for future restricted purposes (Note 5)
Fund Balance (Exhibit II)
Unreserved
Totals
The accompanying notes are an integral part
of these financial statements.
(2)
Exhibit I
December 31,
2003 2002
$ 265,626 $ 182,728
71,579 74,214
85,914 133,021
50,047 50,387
$ 473,166 $ 440,350
$ 20,182 $ 46,706
51,274 45,561
183,676 154,765
101,215 27,510
356,347 274,542
6,981
109,838 165,808
$ 473,166 $ 440,350
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The accompanying notes are an integral part
of these financial statements.
(3)
I SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
I Exhibit III
I STATEMENTS OF EXPENDITURES - BUDGET AND ACTUAL
For the Year Ended December 31,
I 2003 2002
Actual Budget Actual Budget
Personal Services
I Salaries $ 1,836,928 $ 1,804,734 $ 1,921,309 $ 1,893,597
Social security 128,537 134,552 140,362 144,860
Retirement 50,710 51,218 54,096 48,883
I Health insurance 256,685 236,662 220,513 248,307
Unemployment insurance 8,653 6,988 1,930 6,817
Professional services 186,043 180,250 156,006 160,000
I Contractual services
Auditing 7,000 6,950 6,950 7,250
Accounting 675 500 1,675 1,000
I Building and grounds - Remodeling
and repair 28,798 25,000 30,417 25,000
Telephone 10,298 8,200 8,157 10,000
Mileage 57,042 64,000 63,794 70,000
I Service contracts and equipment
lease 21,015 23,000 28,882 22,000
Insurance 84,646 93,193 89,309 62,000
I Expendable supplies
Office supplies 30,010 27,000 43,792 42,000
Postage and express 13,085 15,000 12,319 13,000
I Books, dues and subscriptions 18,245 34,667 24,934 18,500
Equipment maintenance and repair 1,262 750 702 1,500
Gasoline and oil 4,126 4,000 4,242 15,000
Clinical and medical supplies 107,954 100,000 136,686 105,000
I Chemicals 4,140 6,000 3,589 3,000
Veterinary and medical services 29,842 16,000 17,606 12,000
Animal maintenance 3,051 7,500 2,383 2,000
I Shelter refund 11,465 12,500 11,172 7,000
Professional meetings 13,304 10,000 12,322 20,000
Utilities and water 15,205 16,500 15,943 24,000
I Custodial services 5,851 5,000 26,110 6,000
Miscellaneous expense 1,541 1,000 7,178
Capital equipment 2,355 10,000 21,457 15,000
I Total Expenditures S 2,938,466 $ 2,901,164 $ 3,063,835 $ 2,983,714
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I The accompanying notes are an integral part
of these financial statements.
I (4)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit IV
STATEMENTS OF CASH FLOWS
For the Year Ended
December 31,
2003 2002
457,425 $ 451,037
650,241 626,758
757,362 686,691
793,912 944,089
270,418 257,207
3,220 4,021
(2,849,680) (3,054,414)
82,898 (84,611)
82,898 (84,611 )
182,728 267,339
265,626 $ 182,728
Cash Flow From Operating Activities
Saline County, Kansas $
City of Salina, Kansas
Grants
Fees
Miscellaneous
Interest income
Cash paid to suppliers and others
Net Cash Provided (Used) by Operating Activities
Increase (Decrease) in Cash
Cash at Beginning of Year
Cash at End of Year $
RECONCILIATION OF EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Excess (Deficit) of Revenues over Expenditures - Exhibit II $ (55,970) $ (209,145)
Adjustments to reconcile excess (deficit) of revenues over
expenditures to net cash provided by operating activities
Decrease in accounts receivable 50,082 96,430
Increase (Decrease) in vouchers payable (26,524) 22,926
Decrease in medicare adjustments receivable 18,683
Increase in accrued salaries 5,713 6,113
Decrease (Increase) in accrued compensated absences 28,911 (14,693)
Increase (Decrease) in Animal Shelter Reward fund payable 73,705 (2,776)
Increase (Decrease) in deferred income 6,981 (2,149)
Total Adjustments 138,868 124,534
Net Cash Provided (Used) by Operating Activities $ 82,898 $ (84,611 )
The accompanying notes are an integral part
of these financial statements.
(5)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2003 and 2002
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. 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 (i.e.,
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.
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) For purposes of the Statements of Cash Flows, cash equivalents include time deposits and all highly liquid
debt instruments with maturities of three months or less.
5) The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.
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.
(6)
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3. Cash and Investments
Deposits - At December 31, 2003 and 2002, respectively, the carrying amount of the Board of Health's deposits
were $246,987 and $168,289, and the bank balances were $341,768 and $236,049. The differences are
outstanding checks and deposits. In accordance with Kansas statutes, collateral securities were held under joint
custody receipts issued by a third-party bank, which is independent of the depository financial institution, to secure
balances over $100,000. Deposit balances were not fully secured by FDIC and joint custody receipts as of
December 31,2003.
The 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 2003 and 2002.
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:
2003 2002
Saline County, Kansas
Regular tax appropriation $ 457,425 $ 451,037
City of Salina, Kansas
Regular tax appropriation $ 650,241 $ 626,758
5. Grants from the State of Kansas Department of Health and Environment
Agreements were in effect during 2003 and 2002 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, 2004. Unless specifically noted, the grants are payable 25% on or about July 1, and
12.5% on or 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
Maternal and Child Health Program
Matching funds are provided to furnish comprehensive health care services for mothers and infants,
children and adolescents. The current agreement provides that the Board of Health will receive $84,096.
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 $34,336.
(7)
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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 $264,972, plus any reallocated federal funds that may
become available.
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 $16,800.
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 $33,459.
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 $8,639.
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 $69,201 payable in quarterly
amounts based on number of licenses issued.
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 the Board of Health will receive
$23,505.
Breast and Cervical Cancer Screening
Provides cervical and breast cancer screening services to women with no insurance or a high deductible
that has not been met. The current agreement provides that the Board of Health will receive receive
reimbursement for breast and cervical cancer screenings and diagnostic services that are deemed
reimburseable.
Lead Poisoning Prevention Program
Funds are provided to hire a registered nurse to be the dedicated childhood lead poisoning prevention
nurse to coordinate and implement a screening and blood lead testing program within the county. The
current agreement provides that the Board of Health will receive $24,999.
Chronic Disease Risk Reduction
Funds are provided for health promotion programs addressing the primary health risk factor of tobacco use
in the geographic service area of Saline County, Kansas. The current agreement provides that the Board
of Health will receive $5,300.
Bioterrorism Preparedness and Response Program
Funds are provided for the completion of a local emergency preparedness and response inventory and a
submission of a final local bioterrorism preparedness plan. The Agency agrees to be a full participant in
the Health Alert Network. The current agreement provides that the Board of Health will receive $85,681.
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 $40,408 payable in
quarterly installments.
(8)
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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 $3,752.
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 of Health will receive $50,478.
Tuberculosis Control Program
Funds are provided to expand services for people with low income who are not eligible for medicaid, have
no health insurance and no other means of payment for diagnosis and/or treatment of tuberculosis. The
current contract agreement provides that the Board of Health will receive $4,000.
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 31,2003 and 2002:
December 31,
2003 2002
Accounts Receivable
Special Supplemental Food Program for
Women, Infants, and Children
Food Service Licensing Program
Outreach Clinic Services
Local Environmental Protection Program
HIV Case Management Program
Breast and Cervical Cancer Screening
Total Accounts Receivable
$
64,778 $ 40,550
3,224 7,845
3,150 3,150
13,620
4,716
427 4,333
71,579 $ 74,214
469 $
1,080
4,182
1,250
6,981 $
$
Deferred Income
Aids, Counseling and Testing Site Program
Aids Health Education/Risk Education Program
HIV Case Management
Immunization Action Plan
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.
7. Defined Benefit Pension Plan
Plan Description: The Board of Health participates in the Kansas Public Employees Retirement System (KPERS), a
cost-sharing multiple-employer defined benefit pension plan as provided by K.S.A 74-4901, et seq. KPERS provides
retirement benefits, life insurance, disability income benefits and death benefits. Kansas law establishes and amends
benefit provisions. KPERS issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to KPERS, 611 South Kansas, Suite 100, Topeka,
KS 66603-3803 or by calling 1-888-275-5737.
Funding Policy: K.S.A. 74-4919 establishes the KPERS member-employer contribution rate at 4% of covered salary.
The employer collects and remits member-employee contributions according to the provisions of section 414(h) of the
Internal Revenue Code. State law provides that the employer contribution rate be determined annually based on the
results of an annual actuarial valuation. KPERS is funded on an actuarial reserve bases. State law sets a limitation on
annual increases on the contribution rates for KPERS employers. The employer rate established for calendar year
2003 is 3.47% for January 1, 2003 to March 31, 2003 and 3.07% for April 1 , 2003 to December 31,2003. The Board
of Health employer contributions to KPERS for the years ended December 31,2003,2002 and 2001 were $50,710,
$54,096 and $43,739, respectively, equal to the required contributions for each year.
(9)
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8. Cmmencing September 18, 2002, the Board of Health leased four copiers and related equipment with a lease term of
6: months. The lease payment is $1,299 per month. Total rent expense under this lease was $15,588 for the year
erding December 31, 2003. Future minimum rental payments required under the lease are as follows:
December 31,2004
December 31, 2005
December 31, 2006
December 31, 2007
December 31,2008
15,588
15,588
15,588
15,588
1,299
9. Compliance with Kansas Statutes
Deposits were not adequately secured during the months of January, 2003, February, 2003, August, 2003 and
December, 2003.
10. Certain reclassifications have been made to the 2002 information to conform to the classifications used in 2003.
(10)
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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
For the Year Ended
December 31,
2003 2002
Federal Programs
Maternal and Child Health Program $ 84,746 $ 74,104
Family Planning Program 33,086 38,091
Women, Infants, and Children Supplemental Food Program 277,970 232,335
Outreach Clinic Services 17,500 13,650
HIV Case Management 24,223 35,591
Child Care Licensing Program 58,917 50,725
Immunization Action Plan 14,969 5,021
Breast and Cervical Cancer Screening 21,717 13,580
Lead Poisoning Prevention 13,371 10,000
Bioterrorism Preparedness and Response Program 74,171 13,759
AIDS Health Education/Risk Reduction Program 7,209 14,135
Chronic Disease Risk Reduction 6,742 10,284
Total Federal Programs 634,621 511,275
State Programs
Food Service Licensing Program 30,092 40,207
General Health Services - State Formula Grant 40,476 40,195
Local Environmental Protection Program 46,159 62,784
AIDS Counseling and Testing Site Program 2,379 4,027
Kansas LEAN 1 ,400
Tuberculosis Control Program 1,000
Total State Programs 120,106 148,613
Total Grants $ 754,727 $ 659,888
(11 )
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Title XVIII
Title XIX
Patients and insurance
Home care services
Homemaker services
Family planning services
General nursing clinics
Environmental health fees
Day care provider fees
Senior care fees
Child health assessment fees
Immunizations
Total Fees for Services
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FEES FOR SERVICES
(12)
$
Schedule 2
$
For the Year Ended
December 31,
2003 2002
153,492 $ 180,258
269,453 354,377
41,504 41,277
14,200 10,029
6,603 5,098
45,747 36,652
106,462 113,424
22,217 22,390
8,485 7,535
7,834 6,191
5,365 4,612
65,103 73,936
746,465 $ 855,779
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SINGLE AUDIT SECTION
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CLUBlNE&
RETTELE
CHARfERED
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Certified Public Accountants
v
Robert I. Clubine, C.PA
David A. Rettele, c.P.A.
Jay D. Langley, C.PA
Jon K. Bell, C.PA
Leslie M. Corbett, c.P.A.
Stacy J. Sokol, C.PA
Marci K. Fox, C.PA
Delores K. Longenecker, c.P.A.
John T. Millikin, C.PA
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
785/827-1188
Ellsworth
785/472-3915
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
FINANCIAL REPORTING 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 Salina-Saline County Board of Health, as of
and for the year ended December 31,2003 and 2002 and have issued our report thereon
dated July 1, 2004. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America, the standards applicable to
Government Auditing Standards, issued by the Comptroller General of the United States
and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and
Reports, Department of the Administration of the State of Kansas.
Compliance
As part of obtaining reasonable assurance about whether Salina-Saline County Board of
Health's financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grants,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, 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.
Internal Control Over Financial Reportinq
In planning and performing our audit, we considered Salina-Saline County Board of
Health's internal control over financial reporting in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements and not
to provide assurance on the internal control over financial reporting. Our consideration of
the internal control over financial reporting would not necessarily disclose all matters in the
internal control over financial reporting that might be material weaknesses. A material
weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk that misstatements 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
over financial reporting and its operation that we consider to be material weaknesses.
However, we noted other matters involving the internal control over financial reporting that
we have reported to management of Salina-Saline County Board of Health in a separate
letter dated July 1, 2004.
This report is intended for the information and use of the governing board, management,
others within the organization and federal awarding agencies and pass-through entities,
and is not intended to be and should not be used by anyone other than these specified
parties
Respectfully submitted,
ct{.~ a-Jl (2~
CLUBINE AND RETTELE, CHARTERED
July 1, 2004
( 13)
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CLUBlNE&
RETIELE
CHARfERED
Certified Public Accountant!
ff/I
Robert I. Clubine, C.PA
David A. Rettele, C.PA
Jay D. Langley, C.PA
Jon K. Bell, C.PA
Leslie M. Corbell, C.P.A.
Slacy J. Sokol, C.PA
Marci K. Fox, C.PA
Delores K. Longenecker, c.P.A.
John 1. Millikin, C.P.A.
Linda A. Sueller, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
785/827-1188
Ellsworth
785/472-3915
REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OMB CIRCULAR A-133
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas:
Compliance
We have audited the compliance of the Salina-Saline County Board of Health with the
types of compliance requirements described in the U. S. Office of Management and Budget
(OMB) Circular A-133 Compliance Supplement that are applicable to each of its major
federal programs for the year ended December 31, 2003. Salina-Saline County Board of
Health's major federal programs are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major
federal programs is the responsibility of Salina-Saline County Board of Health's
management. Our responsibility is to express an opinion on Salina-Saline County Board of
Health's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the
United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations. Those standards and OMB Circular A-133 require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about Salina-Saline County Board of Health's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination on Salina-Saline County Board of Health's
compliance with those requirements.
In our opinion, Salina-Saline County Board of Health complied, in all material respects, with
the requirements referred to above that are applicable to each of its major federal
programs for the year ended December 31,2003.
Internal Control Over Compliance
The management of Salina-Saline County Board of Health is responsible for establishing
and maintaining effective internal control over compliance with requirements of laws,
regulations, contracts and grants applicable to federal programs. In planning and
performing our audit, we considered Salina-Saline County Board of Health's internal control
over compliance with requirements that could have a direct and material effect on a major
federal program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control over
compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is
a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that noncompliance with
applicable requirements of laws, regulations, contracts and grants that would be material in
relation to a major federal program 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 over compliance and its operation that
we consider to be material weaknesses.
(14)
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This report is intended for the information and use of the governing board, management, others within the organization
and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone
other than these specified parties.
REJ:mi~:Jl ~
CLUBINE AND RETTELE, CHARTERED
July 1, 2004
(15)
I SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2003
I Federal
CFDA Federal
Federal Grantor/Pass-Through Grantor/Program Title Number Expenditures
I U.S. Deoartment of Aqriculture
Passed Through State of Kansas Department of Health and Environment
I Special Supplemental Nutrition Program for Women, Infants,
and Children - 02/03 10.557 $ 118,984
Special Supplemental Nutrition Program for Women, Infants,
I and Children - 03/04 10.557 158,986
U.S. Deoartment of Health and Human Services
I Passed Through State of Kansas Department of Health and Environment
Maternal and Child Health Services Block Grant
I Salina Outreach Clinic Services - 02/03 93.994 10,500
Salina Outreach Clinic Services - 03/04 93.994 7,000
Maternal and Child Health - 02/03 93.994 42,398
Maternal and Child Health - 03/04 93.994 42,348
I Family Planning - Services
02/03 93.217 14,487
I 03/04 93.217 18,599
Immunization Action Plan
02/03 93.268 3,269
I 03/04 93.268 11,700
Acquired Immunodeficiency Syndrome (AIDS) Activity
Aids/HERR - 02/03 93.118 3,736
I Aids/HERR - 03/04 93.118 3,473
HIV Case Management - 02/03 93.917 8,159
HIV Case Management - 03/04 93.917 16,064
I Child Welfare Services
Child Care Institutions Licensing - 02/03 93.596 25,649
Child Care Institutions Licensing - 03/04 93.596 33,268
I Breast and Cervical Cancer Screening
Breast and Cervical Cancer Screenings - 02/03 93.919 10,403
Breast and Cervical Cancer Screenings - 03/04 93.919 11,314
I Lead Poisoning Prevention
02/03 66.707 5,000
03/04 66.707 8,371
I Tobacco Prevention
Bioterrorism Preparedness and Response Program - 02/03 93.283 55,035
Bioterrorism Preparedness and Response Program - 03/04 93.283 19,136
I Chronic Disease Risk Reduction - 02/03 93.283 4,092
Chronic Disease Risk Reduction - 03/04 93.283 2,650
I Total $ 634,621
The accompanying notes are an integral part
of these financial statements.
I (16)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2003
1.
Basis of Presentation
The accompanying schedule of expenditures of federal awards includes federal grant activity of Salina-Saline
County Board of Health and is presented on the modified accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations.
2.
Subrecipients
Of the federal expenditures presented in the schedule, Salina-Saline County Board of Health provided federal
awards to subrecipients as follows:
Federal Program
Amount
Provided to
CFDA Number Subrecipients
Special Supplemental Food Program for
Women, Infants and Children
10.557 $ 84,966
(17)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31,2003
Summary of Auditor's Results
Financial Statements
Type of auditor's report issued:
Qualified
Internal control over financial reporting:
Material weakness(es) identified
No
Reportable condition(s) identified that are
not considered to be material weaknesses?
None reported
Noncompliance material to financial statements noted?
No
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
No
Reportable condition(s) identified that are
not considered to be material weakness(es)
None reported
Type of auditor's report issued on compliance for major programs:
Unqualified
Any audit findings disclosed that are required to be reported
in accordance with section 510(a) of Circular A-133?
No
Identification of Maior proqrams:
10.557
Special Supplemental Food Program
for Women, Infants and Children
Dollar threshold used to distinguish between type A
and type B programs:
$ 300,000
Auditee qualified as low-risk auditee:
Yes
Section II - Financial Statement Findinqs:
None
Section III - Federal Award Findinqs and Questioned Costs:
None
(18)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
CORRECTIVE ACTION PLAN
For the Year Ended December 31,2003
None required.
(19)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended December 31,2003
There are no prior audit findings.
(20)