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",,(!:; I:.~"'I:;":' ,'.:"~':,l~~'~~-~::l}':,'~'J'.~sf,~ I..~ ,~,~ ':.~~ ~ '~." :~ ;'- ~~, ...~/~ '~:,':.::r;:~;~::';';~:,-'~:I,~:.:;"~,:'::!\~~:'.;:~~~.'I~)'1:'; ~~': :,: .~,..T ::._ '.. .~' '.~ ,,', , "~,,,",,, <, h,:. "'~T:.:I,;~Bl'I~m,. ',", ',', "',":",';' , "'/" .,. ,'..".'".." ,ri' ,,'., ',< ,~'"','" i::,~\ ::r~;~::::;: \~.:>!:'."",'t:J CJS;QO' l~ri'~~'" :':g~;'/~; "". ""'}':"'rj::,:::~'; ~':::~~;;~ ,:,':::', :::>,~"\\': 'il'~I",,:~,I""~"I"~:'- "":~m\3t ,"',,'" ,,/"""r~"":,'" ,'V;-,,"'," '!,i. '..,,.; 'h"i}""",,,:,,'~;\,- ',~.., ,1",'~ ,~,~.p'~!~.q.~~,.'. :....~':...,.:t:,. ~.",.,~:~.'r:, ..,-.":...~,N',.'.<,, i.,'~;;;'I'.i,.'('7f.<.-,t;>;. .i-1.' !...".../:,: ~;i~i_~~~~~~~1~~~~~~iIf;~J-~,!~,;;~~~1}~ti~~S~~~}!~'t~(~~ I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31,2006 and 2005 CLUBINE AND RETTELE, CHARTERED CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas TABLE OF CONTENTS Paqe FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT Exhibit I BALANCE SHEETS 2 Exhibit II STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 3 Exhibit III STATEMENTS OF CASH FLOWS 4 NOTES TO FINANCIAL STATEMENTS 5-8 SUPPLEMENTAL INFORMATION Schedule 1 GRANTS FROM THE KANSAS STATE DEPARTMENT OF HEALTH AND ENVIRONMENT 9 Schedule 2 FEES FOR SERVICES 10 SINGLE AUDIT SECTION REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 11-12 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 13-14 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 15 16 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 17 CORRECTIVE ACTION PLAN 18 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 19 ( I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas , FINANCIAL SECTION I I I I I I I I I I I I I I I I I I CLUBlNE& RElTELE CHARTERED Certified Public Accountants v Robert l. Clubine, C.P.A. David A. Rettele, C.P.A. Jay D. Langley, C.P.A. Jon K. Bell, C.P.A. Leslie M. Corbett, C.P.A. Stacy J. Sokol, C.P.A. Marci K. Fox, C,P.A. John T. Millikin, C.P.A. Linda A. Suelter, C.P.A. 218 South Santa Fe P.O. Box 2267 Salina, Kansas 67402-2267 Salina 785/ 825-5479 Salina Fax 785/825-2446" Ellsworth 785/472-3915 Ellsworth Fax 785/472-5478 I 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 31,2006 and 2005 as listed in the table of contents. These financial statem'ents 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 opinions. As described in Note B(2), management has not included the capitalization and depreciation of property and equipment, which should be included in order to conform with accounting principles generally accepted in the United States of America. The amount that should be capitalized and depreciated is not reasonably determined. 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 31,2006 and 2005, and changes in financial position 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 11, 2007 on our consideration of Salina-Saline County Board of Health's internal controi over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of the report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. 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 audit. Our audits were conducted for the purpose of forming opinions on the basic financial statements taken as a whole. The supplemental information on pages 10 and 11 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 basic financial statements of Salina- Saline County Board of Health. The supplemental information and the schedule of expenditures of federal awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in ail material respects in relation to the basic financial statements taken as a whole. Respectfully submitted, ~ ~_rM--iL CLUBINE AND RETTELE, CHARTERED July 11, 2007 (1) I I I I I I I I I I I I I I I I I I I 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 EQUITY Liabilities Vouchers payable Accrued salaries Accrued liability for compensated absences Animal Shelter Reward fund payable Total Liabilities Deferred Income (Note 5) Fund Equity Unrestricted Totals The accompanying notes are an integral part of these financial statements. (2) Exhibit I December 31, 2006 2005 $ 867,614 $ 770,447 175,985 36,724 167,696 50,618 73,610 17,059 $ 1,284,905 $ 874,848 $ 62,129 $ 138,162 77,346 75,190 227,706 203,224 99,243 97,287 466,424 513,863 26,440 36,489 792,041 324,496 $ 1,284,905 $ 874,848 I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas I Exhibit II STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY - BUDGET AND ACTUAL I For the Year Ended December 31, 2006 2005 Actual Budget Actual Budget I Revenues Appropriation from Saline County, Kansas (Note 4) $ 661,690 $ 661,690 $ 576,934 $ 576,934 Appropriation from City of Salina, Kansas (Note 4) 885,506 885,506 796,362 796,362 I Grants from the State Department of Health and Environment 924,239 755,089 817,241 750,515 Fees for services 926,084 697,200 778,210 683,120 Interest income 29,571 12,292 I Miscellaneous revenues 341,372 222,899 276,501 206,699 Total Revenues 3,768,462 3,222,384 3,257,540 3,013,630 I Expenses Personal Services Salaries 1,992,583 1,980,384 1,927,156 1,869,134 Social security 139,884 148,202 136,862 141,900 I Retirement 85,119 84,748 71,899 68,565 Health insurance 243,052 272,616 249,527 259,659 Unemployment insurance 5,358 10,834 10,786 10,766 I Professional services 206,917 160,000 157,800 152,825 Contractual services Auditing 7,550 8,000 7,550 7,000 Accounting 738 700 760 675 I Building and grounds - Remodeling and repair 10,866 2,000 6,582 . 1,500 Telephone 18,091 20,000 20,664 17,500 Mileage 61 ,406 70,000 59,068 62,000 I Service contracts and equipment lease 41,983 45,000 62,648 41,400 Insurance 64,480 85,000 89,369 89,000 Expendable supplies Office supplies 32,081 30,000 32,128 26,500 I Postage and express 13,695 13,000 15,156 12,135 Books, dues and subscriptions 6,526 4,500 4,794 5,300 Equipment maintenance and repair 1,394 1,000 690 1,000 I Gasoline and oil 9,860 7,000 5,807 7,000 Clinical and medical supplies 144,384 120,000 122,693 110,000 Chemicals 7,527 4,000 9,552 3,500 Veterinary and medical services 39,734 25,000 33,500 14,000 I Animal maintenance 2,750 3,000 994 3,300 Shelter refund 32,574 15,000 13,000 12,000 Professional meetings 28,368 18,000 23,958 14,000 I Utilities and water 54,970 54,400 50,432 38,000 Custodial services 3,538 5,000 .4,181 5,800 Health Education 39,953 26,000 21,685 21,171 Miscellaneous expense 5,536 1,000 3,121 1,000 I Capital equipment 8,000 12,700 17,000 Total Expenses 3,300,917 3,222,384 3,155,062 3,013,630 I Excess of Revenues over Expenses 467,545 102,478 Fund Equity, January 1 324,496 385,130 222,018 385,130 Fund Equity, December 31 $ 792,041 $ 385,130 $ 324,496 $ 385,130 I The accompanying notes are an integral part of these financial statements. I (3) I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas STATEMENTS OF CASH FLOWS Cash Flows From Operating Activities Saline County, Kansas City of Salina, Kansas Grants Fees . Miscellaneous Interest income Cash paid to suppliers and others Cash paid to employees for services Net Cash Provided by Operating Activities Increase in Cash Cash at Beginning of Year Cash at End of Year Exhibit III $ For the Year Ended December 31, 2006 2005 661,690 $ 576,934 885,506 796,362 774,929 817,220 808,867 770,791 284,960 312,010 29,571 12,292 (1,382,411 ) (1,104,189) (1,965,945) (1,921,071) 97,167 260,349 97,167 260,349 770,447 510,098 867,614 $ 770,447 $ RECONCILIATION OF EXCESS OF REVENUES OVER EXPENSES TO NET CASH PROVIDED BY OPERATING ACTIVITIES Excess of Revenues over Expenses - Exhibit II Adjustments to reconcile excess of revenues over expenses to net cash provided by operating activities Decrease (Increase) in accounts receivable Increase (Decrease) in vouchers payable Increase in accrued salaries Increase in accrued compensated absences Increase (Decrease) in Animal Shelter Reward fund payable Increase (Decrease) in deferred income Total Adjustments NetCash Provided by Operating Activities The accompanying notes are an integral part of these financial statements. (4) $ 467,545 $ 102,478 (312,890 ) 53,175 (76,033) 128,754 2,156 4,732 24,482 1,353 1,956 (5,037) . (10,049) (25,106) (370,378) 157,871 $ 97,167 $ 260,349 I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,2006 and 2005 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. It is the Board of Health's policy to follow all Financial Accounting Standards Board (FASB) standards issued after November 30,1989. 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) Accounting principles generally accepted in the United States of America require that property and equipment be capitalized and depreciated. The accompanying financial statements do not conform with U.S. generally accepted accounting principles in that property and equipment is not capitalized and depreciated. . 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. (5) I I I I I I I I I I I I I I I I I I I 3. Deposits and Investments Deposits - At December 31,2006 and 2005, respectively, the carrying amount of the Board of Health's deposits were $835,785 and $706,668, and the bank balances were $912,396 and $784,094. 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 fully secured by FDIC and joint custody receipts as of December 31,2006. 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: 2006 2005 Saline County, Kansas Regular tax appropriation $ 661,690 $ 576,934 City of Salina, Kansas Regular tax appropriation $ 885,506 $ 796,362 5. Grants from the State of Kansas Department of Health and Environment Agreements were in effect during 2006 and 2005 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, 2007. 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 $74,626. 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 $40,995. . 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 $270,643, plus any reallocated federal funds that may become available. This program is on an October 1 through September 30 year-end. Outreach Clinic Services Reimbursements are provided for coordination of Cardiac 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 $7,800. 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 $60,000. (6) I I I I I I I I I I I I I I I I I I I 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 $8,375. 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 $72,600 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 $11,080. 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 reimbursement for breast and cervical cancer screenings and diagnostic services that are deemed reimbursable. . 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 Heaith will receive $20,000. Public Health 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 public health 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 $80,837 which includes $24,264 for the specific threat of panademic infiuenza. Clean Water Act Funds were provided to reimburse the Board of Health for a conference in the amount of $308. 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 monthiy. 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 $39,830 payable in quarterly installments. AIDS Counseling and Testing Site Program Funds are provided for the counseiing 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 iow 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. Hand Washing Education Campaign Funds were provided for the statewide Hand Washing Education Campaign. The Board of Health received $5,500. (7) I I I I I I I I I I I I I I I I I I I 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 Decem.ber 31,2006 and 2005: December 31, 2006 2005 Accounts Receivable Special Supplemental Food Program for Women, Infants, and Children Food Service Licensing Program Outreach Clinic Services HIV Case Management Public Health Preparedness and Response Total Accounts Receivable Deferred Income TB Control Nurse Local Environmental Protection Program Total Deferred Income $ 144,660 $ 13,704 1,950 2,869 12,802 175,985 $ 32,030 2,744 1,950 $ 36,724 $ 1,201 $ 25,239 26,440 $ 11,250 25,239 36,489 $ 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 Empioyees Retirement System (KPERS), a cost-sharing multiple-employer defined benefit pension pian as provided by K.SA 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.SA 74-4919 establishes the KPERS member-employer contribution rate at 4% of covered salary. The empioyer 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 2006 was 4.61% for January 1,2006 to June 30, 2006 and 4.81 % for July 1,2006 to December 31,2006. The Board of Health employer contributions to KPERS for the years ended December 31,2006,2005 and 2004 were $85,119, $70,960 and $58,991, respectively, equal to the required contributions for each year. 8. Lease Agreement Commencing June 14, 2005, the Board of Health updated their copier lease agreement to include additional copiers and printers. The lease term is 63 months. The lease payment is $1,703 per month. Prior to June 14, 2005, the lease payment was $1,299 per month. Total rent expense under this lease was $20,796 for the year ending December 31,2006. Future minimum rental payments required under the lease are as follows: December 31,2007 $' 20,796 December 31,2008 20,796 December 31,2009 20,796 December 31,2010 10,398 9. Compliance with Kansas Statutes Deposits were not adequately secured for all months of the 2006 calendar year. 10. Other Post Employment Benefits As provided by K.S.A. 12-5040, the municipality allows retirees under age 65 to participate in the group health insurance plan. While each retiree pays the full amount of the applicable premium, conceptually, the local government is subsidizing the retirees because each participant is charged a level premium regardless of age. However, the cost of this subsidy has not been quantified in these financial statements. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the municipality makes health care benefits available to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium is paid in full by the insured. There is no cost to the municipalityunder this program. (8) I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas SUPPLEMENTAL INFORMATION I I I I I I I I I I I I I I I I I I I 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, 2006 2005 Federal Programs Maternal and Child Health Program $ 77,259 $ 79,891 Family Planning Program 41,634 36,700 Women, Infants, and Children Supplemental Food Program 368,993 304,967 Outreach Clinic Services 7,800 11,100 HIV Case Management 74,992 52,021 Child Care Licensing Program 73,034 71,489 Immunization Action Plan 11,080 15,621 Breast and Cervical Cancer Screening 263 2,762 Lead Poisoning Prevention 14,759 15,784 Bioterrorism Preparedness and Response Program 73,218 63,659 AIDS Health Education/Risk Reduction Program 8,529 7,266 Emergency Management Grant 9,548 Clean Water Act 308 . Total Federal Programs 751,869 670,808 State Programs Food Service Licensing Program 65,792 49,008 General Health Services - State Formula Grant 39,867 40,057 Local Environmental Protection Program 51,867 50,478 AIDS Counseling and Testing Site Program 3,752 3,752 West Nile Virus Program 1,592 1,592 Tuberculosis Control Program 4,000 1,546 Hand Washing Education 5,500 Total State Programs 172,370 146,433 Total Grants $ 924,239 $ 817,241 (9) I I I I I I I I I I I I I I I I I I I 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 (10) Schedule 2 For the Year Ended December 31, 2006 2005 277,517 $ 164,233 269,716 255,820 58,321 37,968 18,940 18,305 4,794 6,364 49,929 48,431 160,762 160,592 27,497 32,674 9,105 8,980 4,040 4,027 2,808 3;797 42,655 37,019 926,084 $ 778,210 $ $ I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas SINGLE AUDIT SECTION I I I CLUBlNE& RETTELE CHARTERED Certified Public Acrounranu I v I I I I I Robert I. Clubine, C.P.A. David A. Rettele, C.P.A. Jay D. Langley, C.P.A. Jon K. Bell, C.P.A. Leslie M. Corbett, C.P.A. Stacy J. Sokol, C.PA Marc! K. Fox, C.P,A. John T. Millikin, C.P.A. Linda A. Suelter, C.P.A. I I I I I I I 218 South Santa Fe P.O. Box 2267 Salina, Kansas 67402-2267 Salina 7851 825-5479 Salina Fax 7851 825-2446 . Ellsworth 785/472-3915 Ellsworth Fax 785/472-5478 I I I REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS 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 years ended December 31, 2006 and 2005 and have issued our report thereon dated July 11, 2007. 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 Comptrolier 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. Internal Control Over Financial Reportina In planning and performing our audit, we considered Salina-Saline County Board of Health's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Salina-Saline County Board of Health's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Salina-Saiine County Board of Health's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Salina-Saline County Board of Health's ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Salina-Saline County Board of Health's financial statements that is more than inconsequential will not be prevented or detected by the Salina-Saline County Board of Health's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Salina-Saline County Board of Health's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters 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 grant agreements, 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. (11) I I I I I I I I I I I We noted certain matters that we reported to management of the Salina-Saline County Board of Health in a separate letter dated July 11,2007. 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, ~. CNv-i) ~ CLUBINE AND RETTELE, CHARTERED July 11, 2007 I I I I I I I I (12) I I CLUBlNE& RElTELE GIARfERED I I I I I I I I I I I I I I Certified Public Acrounwnu v Robert I. Clubine, C.P.A. David A. Rettele, C.P.A. Jay D. Langley, C.P.A. Jon K. Bell, C.P.A. Leslie M. Corbett, C.P.A. Stacy J. Sokol, C.P.A. Marci K. Fox, C.P.A. John 1. Millikin, C.P.A. Linda A. Suelter, C.P.A. 218 South Santa Fe P.O. Box 2267 Salina, Kansas 67402-2267 Salina 785/825-5479 . Salina Fax 7851 825-2446 Ellsworth 785/472-3915 Ellsworth Fax 785/472-5478 I I I REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON 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 31,2006. 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 31,2006. 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 but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Salina-Saline County Board of Health's internal control over compliance. A control deficiency in an entity's internal control over compliance exists when the design' or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote (13) I I I I I I I I I I likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 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, ~aJJ~ CLUBINE AND RETTELE, CHARTERED July 11, 2007 I I I I I I I I I (14) I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2006 I Federal CFDA Federal Federal Grantor/Pass-Through Grantor/Program Title Number Expenditures I U.S. Department of Aqriculture Passed Through State of Kansas Department of Health and Environment I Special Supplemental Nutrition Program for Women, Infants, and Children - 05/06 10.557 $ 188,322 Special Supplemental Nutrition Program for Women, Infants, and Children - 06/07 10.557 180,671 I U.S. Department of Health and Human Services I Passed Through State of Kansas Department of Health and Environment Maternal and Child Health Services Block Grant Salina Outreach Clinic Services - 05/06 .93.994 3,900 I Salina Outreach Clinic Services - 06/07 93.994 3,900 Maternal and Child Health - 05/06 93.994 39,946 Maternal and Child Health - 06/07 93.994 37,313 I Family Planning - Services 05/06 93.217 15,852 06/07 93.217 25,782 I Immunization Action Plan 05/06 93.268 5,540 06/07 93.268 5,540 I Acquired Immunodeficiency Syndrome (AIDS) Activity Aids/HERR - 05/06 93.118 4,188 Aids/HERR - 06/07 93.118 4,341 I HIV Case Management - 05/06 93.917 29,983 HIV Case Management - 06/07 93.917 45,009 Child Welfare Services I Child Care Institutions Licensing - 05/06 93.596 33,805 Child Care Institutions Licensing - 06/07 93.596 39,229 Breast and Cervical Cancer Screening I Breast and Cervical Cancer Screenings - 05/06 93.919 263 Breast and Cervical Cancer Screenings - 06/07 93.919 I Lead Poisoning Prevention 05/06 66.707 7,319 06/07 66.707 7,440 Bioterrorism I Public Health Preparedness and Response - 05/06 93.283 46,272 Public Health Preparedness and Response - 06/07 93.283 26,946 I Clean Water Act Conference 66.460 308 Total $ 751,869 I The accompanying notes are an integral part of these financial statements. I (15) I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2006 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 $ 99,928 (16) I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31,2006 Summary of Auditor's Results Financial Statements Type of auditor's report issued: Qualified Internal control over financial reporting: Material weakness(es) identified No Significant deficiencies 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 Significant deficiencies 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 proorams: 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 - Financiai Statement Findinos: None Section III - Federal Award Findinos and Questioned Costs: None (17) I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas CORRECTIVE ACTION PLAN For the Year Ended December 31,2006 None required. (18) I I I I I I I I I I I I I I I I I I I SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended December 31,2006 There are no prior audit findings. (19)