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Audit - 2006/2007 (2) . SALINE COUNTY-CITY BUILDING AUTHORITY Salina, Kansas . FINANCIAL STATEMENTS with Independent Anditor's Report December 31, 2007 and 2006 . BARTLETT, SETTLE & EDGERLE A PROFESSIONAL ASSOCIATION Certified Public Accouutants . . SALINE COUNTY-CITY BUILDING AUTHORITY Salina, Kansas FINANCIAL STATEMENTS with Independent Auditor's Report December 31, 2007 and 2006 Table of Contents . Independent Auditor's Report Management's Discussion and Analysis Basis Financial Statements: Statements of Net Assets Statements of Revenues, Expenses, and Changes in Net Assets Statements of Cash Flows Notes to Financial Statements Page I 2-4 5 6 7 8 - II Supplementary Information: Schedule of Cash Receipts, Expenditures, and Changes in Budgeted Net Income - Budget and Actual - Budgetary Basis 12 . . J'l,.... BE 10../ BARJLETT SETTLE &: EILERLE , ")" PRO FES 5 ION A LAS 5 0 C rATION CERTIFIED PUBLIC ACCOUNTANTS March 26, 2008 Board Members Saline County-City Building Authority Salina, Kansas . In planning and performing the audit of the financial statements of the Saline County-City Building Authority (Authority) as of and for the year ended December 31, 2007, in accordance with auditing standards generally accepted in the United States of America, we considered the Authority's internal control over fmancial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. However, during the audit we become aware of the following matters that are opportunities for strengthening internal controls. This letter does not affect our report dated March 26, 2008, on the financial statements of the Authority. Policv Relating to Capital Assets The accounting policy that addresses the capitalization of equipment and building improvements was not consistent with the understanding of Authority management. The accounting policy stated that capital assets costing $550 or more should be capitalized however management understood the level to be much smaller. We suggest that the policy be reviewed and updated to address all areas of capital asset management. Areas to include would be dollar threshold, service life/useful life, identification tags, inventory records, and responsibility. Security Agreement with Bank The Security Agreement For Public Funds Deposits is dated in year 1994 and there have been changes to Federal and Kansas banking laws since then. This agreement is important because it addresses the pledged securities that are collateralizing the Authority's bank deposits. We suggest that the Authority contact the financial institution to obtain an updated security agreement. Postemplovrnent Benefits Other Than Pensions Since the financial statements of the Authority are prepared according to generally accepted accounting principles (GAAP), the Authority is required to comply with all Governmental Accounting Standard Board (GASB) statements. GASB Statement No 45 requires that governments determine the liability associated with postemployment benefits other than pensions. This pronouncement is effective for the year 2009. The determination of this liability requires the involvement of an actuarial study. We recommend that the Authority address GASB 45 and the effect on its financial statements. 129 WEST SECOND, SUITE A . PO. Box 2889 . HUTCHINSON, KS 67504-2889 PIJO:-;[: 620.662.3358 . Tou.-FREE: 888.414.0123 . FAX: 620.662.3350 . EMA1L: bsc@cpabse.com ,/ .\ We will review the status of these comments during our next audit engagement We have already discussed them with Authority personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study, or to assist you in implementing the recommendation. This report is intended solely for the information and use of the Authority, management, others within the organization, 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. Sincerely, ~.cA'P/~~&~ of Bartlett, Settle & Edgerle A Professional Association . ~F ~1L BAI{fLETT SETTLE &. ElLERLE A PROFESSIONAL ASSOCIATION CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT . To the Governing Board Saline County-City Building Authority Salina, Kansas We have andited the accompanying basic financial statements of the Saline County-City Building Authority, Salina, Kansas, as of and for the years ended December 31, 2007 and 2006, as listed in the table of contents. These [mancial statements are the responsibility of the Saline County-City Building Authority's management. Our responsibility is to express an opinion on these fmancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the Kansas Municipal Audit Guide. 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 [mancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the [mancial statements referred to above present fairly, in all material respects, the financial positions of the Saline County-City Building Authority as of December 31, 2007 and 2006 and the changes in its financial positions and its cash flows for the years then ended in conformity with accounting principles generally . accepted in the United States of America. The management's discussion and analysis is not a required part of the basic [mancial statements but is supplementary information required by accounting priociples generally accepted in the United States of America. We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. . Our audit was conducted for the purpose of forming an opinion on the basic financial statements, The budgetary schedule listed as supplementary information in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. This supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects, in relation to the basic financial statements taken as a whole. ~~~i~ati~~~ March 26, 2008 . 129 \VEST SECOND, SUITE A . PO. Box 2889 . HUI'CH1NSON, KS 67504-2889 PHO:-.Jf.: 620.662.3358 . TOLL-FREE: 888,414.0123 . FA;":: 620.662.3350 . blA1L: bse@cpabse.com . MANAGEMENT'S DISCUSSION AND ANALYSIS -2- As management of the Saline County-City Building Authority (Authority), we offer readers of our financial statements this narrative overview and analysis of the financial activities of the Authority for the fiscal year ended December 31,2007. This discussion should be read in conjunction with the Authority's basic financial statements and the notes to those financial statements. The Authority is responsible for the completeness and accuracy of this information. Overview ofthe Financial Statements This discussion and analysis is intended to serve as an introduction to the Authority's basic financial statements. Since the Authority is engaged only in business-type activities, its basic financial statements are comprised of only two components: I) enterprise fund financial statements and 2) notes to financial statements. Enterprise fund financial statements - The enterprise fund financial statements are designed to provide readers with a broad overview of the Authority's finances, in a manner similar to a private-sector business. The statement of net assets presents information on the Authority's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. The statement of revenues, expenses and changes in net assets presents information showing how the Authority's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless ofthe timing of the cash flows. The statement of cash flows provides information about the cash receipts and disbursements during the period. Notes to financial statements - The notes provide additional information that is essential to a full understanding of the data provided in the financial statements. . Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the Authority, assets exceeded liabilities by $3,048,149 at the close of the most recent fiscal year. The largest portion of the Authority's net assets (63%) reflects its investment in capital assets, less any related outstanding debt (if any) used to acquire those assets. The Authority uses these capital assets to provide facilities, equipment, and services to its tenants; consequently, these assets are not available for future spending. . Current and other assets Capital assets Total assets Current liabilities Total liabilities 2007 $1,209,039 1.906.899 $3.115.938 $ 67.789 $ 67.789. Net assets: Invested in capital assets, net of related debt Unrestricted Total net assets $1,906,899 U41.250 $3.048.149 . Net Assets 2006 $1,115,182 1.914.165 $3.029347 $ 58.135 $~5Kill $1,914,165 1.057.047 $2,271.212 2005 $ 965,718 2.048.583 $3014.301 $ 102.286 $ 102.286 $2,004,714 907.301 $2,2.12 015 . -3- At the end of the current fiscal year, the Authority is able to report positive balances in both categories of net assets. The same situation holds true for the prior years. Changes in Net Assets 2007 2006 2005 Operating revenues $ 799,797 $ 783,990 $ 829,129 Nonoperating revenues 40,947 41.888 22,920 Total revenues 840,744 825,878 852,049 Operating expense: Personnel expense 341,232 335,494 318,855 Depreciation 141,810 137,667 131,530 Operation and maintenance 280,765 293,520 250.259 Total operating expense 763,807 766,681 700,644 Nonoperating expenses 2.124 . Total expense 763.807 766.681 702.768 Income (loss) 76,937 59,197 149,281 Net assets - January 1 2.971.212 2,912.015 2,762,734 Net assets - December 31 $3 048.1 49 $2971.212 $2,912 015 The Authority's net assets increased by $76,937 during the current fiscal year. Operating revenues increased slightly over the prior year and operating expenses remained relatively the same. The excess of revenues over expense as shown above is necessary in order to accumulate the funds to purchase capital improvements as needed. Statement of Cash Flows 2007 2006 2005 Net cash provided (used) by: Operating activities Capital and related financing activities Investing activities Net change in cash Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year $ 160,600 $ 156,818 $ 248,389 (141,497) (49,453) (232,226) 47.900 42.099 22,920 67,003 149,464 39,083 1.115.182 965.718 926.635 $1.182185 $1.115182 $ 965.718 . The net change in cash and cash equivalents is highly dependent upon the level of capital improvements purchased by the Authority. The net change in cash and cash equivalents has been positive so the Authority is able to position itself to fund future capital commitments. Capital Assets and Debt Administration Capital Assets - The Authority's investment in capital assets as of December 31, 2007, amounts to $1,906,899 (net of accumulated depreciation). This investment in capital assets includes: land, land improvements, building, building improvements, vehicles, furniture, office equipment, and maintenance equipment. Additional information related to capital assets is located in Note 5 of the Notes to Financial Statements. . . -4- Land 2007 $ 220,228 164,281 3,366,482 406.292 4,157,283 (2.250.384) $1.906.899 Capital Assets 2006 2005 Land and land improvements Building and improvements Equipment Total capital assets Accumulated depreciation Total capital assets, net of depreciation $4,067,425 (2.153.260) $1.914.165 $4,091,245 (2.042.662) $2.048 583 Long-Term Debt - The Authority currently has no outstanding debt. . Economic Factors and Next Year's Budget The Authority continues to house the administrative offices of Saline County, Saline City, and the related Courts. Management continually evaluates the maintenance and improvement needs of the building complex. The budget for the following year of 2008 reflects operations to be consistent with the past activity of the Authority. Requests for Information This financial report is designed to provide a general overview of the Authority's finances for all those with an interest in the Authority's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Saline County-City Building Authority, 300 West Ash Street, Salina, KS 67401. Jim Schroeder, Superintendent Saline County-City Building Authority . . . . BASIC FINANCIAL STATEMENTS . . . -5- Saline County-City Building Authority Statements of Net Assets December 31, 2007 and 2006 2007 2006 ASSETS Current Assets Casb and cash equivalents $ 1,182,185 $ 1,115,182 Prepaid expenses 26,854 Total current assets 1,209,039 1,115,182 . Noncurrent Assets Capital assets (net of depreciation) 1,906,899 1,914,165 TOTAL ASSETS $ 3,115,938 $ 3,029,347 LIABILITIES Current Liabilities Accounts payable $ 30,779 $ 26,638 Accrued vacation and sick leave payable 37,010 31,497 Total current liabilities 67,789 58,135 NET ASSETS Invested in capital assets net ofrelated debt 1,906,899 1,914,165 Umestricted 1,141,250 1,057,047 Total net assets 3,048,149 2,971,212 TOTAL LIABILITIES AND NET ASSETS $ 3,115,938 $ 3,029,347 . . The accompanying notes are an integral part of these financial statements. . -6- Saline Connty-City Building Authority Statements of Revenues, Expenses, and Changes in Net Assets For the Years Ended Decemher 31, 2007 and 2006 2007 2006 OPERATING REVENUES Charges for facilities, services and equipment Saline County $ 473,694 $ 473,694 City of Salina 290,329 290,329 City of Salina - maintenance 900 900 Salina Public Library 8,060 8,060 . Vending income (net) 3,080 3,270 Refunds, claims, and other 23,734 7,737 Total operating revenues 799,797 783,990 OPERATING EXPENSES Personnel costs 341,232 335,494 Maintenance and repairs 89,097 92,200 Supplies and small tools 21,591 21,448 Depreciation 141,810 137,667 Insurance 30,369 35,246 Utilities 128,579 135,442 Contracted services 5,785 6,048 Miscellaneous expenses 5,344 3,136 Total operating expenses 763,807 766,681 Net operating income 35,990 17,309 NONOPERATING REVENUE AND EXPENSE Loss on disposal of assets (6,953) (211) Interest income 47,900 42,099 Total nonoperating revenue and expense 40,947 41,888 Change in net assets 76,937 59,197 NET ASSETS . Net assets - beginning of year 2,971,212 2,912,015 Net assets - end of year $ 3,048,149 $ 2,971,212 . The accompanying notes are an integral part of these financial statements. . -7- Saline Connty-City Building Authority Statements of Cash Flows For the Years Ended December 31, 2007 and 2006 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES Cash received for facility and equipment use $ 772,983 $ 772,983 Cash received from refunds, claims, vending, other 26,814 11,007 Payments to suppliers (303,495) (289,466) Payments to employees for salaries and benefits (335,702) (337,706) Net cash provided by operating activities 160,600 156,818 . CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (141,497) (3,460) Principal paid on capital debt (43,869) Interest paid on capital debt (2,124) Net cash used for capital and related fmancing activities (141,497) (49,453) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 47,900 42,099 Net cash provided by investing activities 47,900 42,099 Net increase (decrease) in cash and cash equivalents 67,003 149,464 Cash and cash equivalents - beginning of year 1,115,182 965,718 Cash and cash equivalents - end of year $ 1,182,185 $ 1,115,182 RECONCILIATION OF OPERATING REVENUE TO NET CASH PROViDED BY OPERATING ACTIVITIES Operating income $ 35,990 $ 17,309 Depreciation 141,810 137,667 Changes in assets and liabilities: Receivables (26,854) Accounts payable 4,141 4,055 . Accrued expenses 5,513 (2,213) Net cash provided by operating activities $ 160,600 $ 156,818 . The accompanying notes are an integral part of these financial statements. . Note 1 . . . -8- Saline County-City Building Authority Salina, Kansas Notes to Financial Statements December 31, 2007 and 2006 Summary of Si!mificant Accountin!! Policies The Saline County-City Building Authority (Authority) was formed March 22, 1965, under the Interiocal Cooperation Act of Kansas (KSA 12-2901 to 12-2907) by Saline County (County), the City of Salina (City), and the Board of Education U.S.D. #305 (School District). The Authority was created to provide for the acquisition of land and the construction, equipping, operating, and maintenance of a building and parking area to house the county offices and courts, the city offices and courts, and the school district offices. On January 16, 1996, the Interiocal Agreement was restated to relieve the School District from any ongoing responsibility or expense relating to the Authority. The School District retained its beneficial ownership interest in the Building Authority. The accounting and reporting policies of the Authority relating to the accompanying financial statements conform to accounting principles generally accepted in the United States of America (GAAP) applicable to public institutions engaged only in business-type activities adopted by the Governmental Accounting Standards Board (GASB). The GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A. Reporting Entity The governing board of the Authority is composed of seven members, six of whom are appointed from the governing boards of the participating municipalities, and one of who is selected at large by the six appointed members. The makeup of the appointed members is three from Saline County, two from the City of Salina, and one from the District Court. The accompanying financial statements include all funds which are controlled by or are dependent on the Authority. The Authority is considered to be a joint venture because it is a separate legal entity that is jointly controlled by the County and City. The County and the City both have an ongoing financial responsibility for the Authority. The Authority's [nteriocal Cooperation Agreement grants a beneficial interest to the County, City, and the School District in proportion to the respective share of the original acquisition costs of the building. B. Measurement Focus and Basis of Accounting For financial reporting purposes, the Authority is considered a special-purpose government engaged only in business-type activities. The Authority's fmancial statements have been presented using the econontic resource measurement focus and the accrual basis of accounting. The intent of the Board is that the cost of providing services on a continuing basis be recovered through rents and user fees. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the tinting of related cash flows. As permitted by generally accepted accounting principles, the Authority has elected not to apply Financial Accounting Standards Board pronouncements issued after November 30, 1989. When both restricted and unrestricted resources are available for use, it is the Authority's policy to use restricted resources fIrst, then unrestricted resources, as they are needed. C. Budgetary Information The Saline County-City Building Authority does not have tax levying powers and is not required to publish a legal budget. An operating budget is adopted anoually by the Governing Board for the purpose of deterntining the amount of appropriations to request from participating municipalities to cover the operating and maintenance costs of the building. . -9- Saline County-City Buildiug Authority Notes to Financial Statements (continued) December 31, 2007 and 2006 Note 1 Summarv of Sienificant Accountine Policies (continued) D. Cash and Cash Equivalents For the purposes of the statement of cash flows. the Authority considers all demand deposits and all investments (if any) with maturities of three months or less to be cash equivalents. E. Capital Assets Additions to property and equipment are recorded at cost. Maintenance and repairs are expensed as incurred. Assets are depreciated using the straight-line method over the estimated useful lives of the assets as follows: . Buildings and improvements Equipment F. Vacation and Sick Leave Payable The Authority is liable for payments to employees for sick pay and vacation pay earned according to the Authority's personnel policies. This liability is accrued at year-end for financial statement purposes. The liability is recorded in the statement of net assets and a related expense is recorded in the statement of revenues, expenses, and changes in net assets. 5-50 years 5-25 years . G. Net Assets Net assets represent the difference between assets and liabilities and are classified in the following categories: Invested in capital assets, net of related debt - This amount consists of the cost of capital assets, net of accumulated depreciation and reduced by any outstanding debt related to the acquisition, construction or improvement of those assets. Unrestricted net assets - Tbis amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt". H. Classification of Revenues The Authority distinguishes operating revenues and nonoperating revenues as follows: Operating revenues - Operating revenues include rents and assessments charged to the entities occupying the facilities and for the use of equipment owned. It also includes related refunds, claims, or miscellaneous items. Nonoperating revenue - Nonoperating revenues include all activities that have the characteristics of nonexchange transactions, such as gifts, contributions, and investment income. I. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the tinancial statements and the accompanying notes. Actual results could differ from those estimates. J. Risk Management The Authority carries commercial insurance to limit its exposure to the various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. There has been no significant change in the Authority's insurance coverage from the previous year. In addition, there have not been settlements in excess of the Authority's coverage in any of the prior three years. K. Reclassifications Certain accounts in the prior year financial statements have been reclassified for comparative purposes to conform to the presentation in the current year [maneial statements. . . -10- Saline Connty-City Building Authority Notes to Finaucial Statemeuts (continued) December 31, 2007 and 2006 Note 2 Note 3 . Note 4 . . StewardshiD, ComDliance, and Accountabilitv Cash-Basis Law (KSA 10-1113) - The Authority was in compliance with this law at all times during the year. Depository Security (KSA 9-1402) - The Authority's funds were adequately secured at all times during the year. DeDosits - Cash and Cash Equivalents As of December 31, 2007, the Authority had cash and cash equivalents as listed below: $1 182 185 Deposits in financial banking institutions The Authority did not have any activity in investment-type assets. Interest rate risk - KSA 9-1401 establishes the depositories which may be used by Kansas governments. The statute requires banks eligible to hold the government's funds have a main or branch bank in the county in which the government is located, or in an adjoining county if such institution has been designated as an official depository, and the banks provide an acceptable rate of return on funds. In addition, K.sA 9-1402 requires the banks to pledge securities for deposits in excess of FDIC coverage. The Authority has no other policies that would further limit interest rate risk. Credit risk - KSA 12-1675 limits the government's investment of idle funds to time deposits, open accounts, and certificates of deposit with allowable fmancial institutions; U.S. government securities; temporary notes; no-fund warrants; repurchase agreements; and the Kansas Municipal Investment PooL The Authority has no investment policy that would further limit its investment choices. Custodial credit risk - The custodial credit risk for deposits is the risk that, in the event of the failure of a depository fmancial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. Kansas Statutes 9-1402 and 9- 1405 require that governments obtain security for all deposits. The Authority manages its custodial credit risk by requiring the fmancial institutions to grant a security interest in securities held by third-party custodial banks. Concentration of credit risk - State statutes place no limit on the amount the government may invest in any oue issuer as long as the investments are adequately secured under KSA 9-1402 and 9-1405. The Authority has placed all of its resources with one financial institution. Defined Benefit Pension Plan Plan Description - The Authority participates in the Kansas Public Employees Retirement System (KPERS), a cost-sharing multiple-employer defined benefit pension plan as provided by KSA 74-4901, et seq. KPERS provides retirement benefits, life insurance, disability income benefits, and death benefits. Kansas law establisbes and amends benefit provisions. KPERS issues a publicly available financial statement that includes financial statements and required supplementary information. That report may be obtained by writing to KPERS (611 S Kansas, Suite 100, Topeka, KS 66603) or by calling 1-888-275-5737. Funding Policy - KSA 74-4919 establishes the KPERS member-employee 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 armually based on the results of an armual actuarial valuation. KPERS is funded on an actuarial reserve basis. State law sets a limitation on armual increases in the contribution rates for KPERS employers. The employer rate established by statute for calendar year 2007 is 5.31%. The Authority's employer contributions to KPERS for the years ending December 31, 2007, 2006, and 2005 were $11,832, $10,516, and $8,876, respectively, equal to the statutory required contributions for each year. . -11- Saline County-City Building Authority Notes to Financial Statements (continued) December 31, 2007 and 2006 Note 5 CaDital Assets The following summarizes the changes in capital assets for the year ended December 31, 2007: Bel:!inninl:! (Decrease ) Ending Balances Increases (Adiustments) Balances Non-depreciable capital assets: Land $ 223.873 $ $ (3.645) $ 220.228 Depreciable capital assets: Land improvements 128,580 32,056 3,645 164,281 Building and improvements 3,263,308 64,212 38,962 3,366,482 . Equipment 451.664 45.229 (90.601) 406.292 Total depreciable capital assets 3.843.552 141.497 (47.994) 3.937.055 Total capital assets 4,067,425 141,497 (51,639) 4,157,283 Accumulated depreciation (2.153.260) 1141.810) 44.686 (2.250.384) Total capital assets, net $ I 914 165 $ (313) $ (6953) $ I 906.899 . . . . SUPPLEMENTARY INFORMATION . . . -12- Saline County-City Building Authority Schedule of Cash Receipts, Expeuditures, and Changes in Budgeted Net Income Budget and Actual- Budgetary Basis Year ended December 31,2007 Variance Budget Actual With Amounts Amounts Budget Budgetary Budgetary Over Basis Basis (Under) Cash Receipts Saline County $ 473,694 $ 473,694 $ City of Salina 290,329 290,329 . Saline Public Library 8,060 8,060 City of Salina - Maintenance 900 900 Interest income 24,000 47,900 23,900 Vending income 3,000 3,080 80 Refunds, claims, and other 600 23,734 23,134 Total Cash Receipts 800,583 847,697 47,114 Exoenditures Phone maintenance 4,800 4,400 (400) Audit fees 6,000 4,186 (1,814) Beautification 5,000 3,885 (1,115) Capital projects 197,500 123,238 (74,262) Clerical services 1,500 1,500 Consultant fees 5,000 99 (4,901) Education 3,000 1,867 (1,133) Equipment 3,750 7,467 3,717 Group insurance 68,000 55,095 (12,905) Insurance - work camp, auto, building 38,000 30,369 (7,631) Janitor supplies 26,500 21,591 (4,909) KPERS - retirement 12,500 11,832 (668) Maintenance agreement 43,000 41,812 (1,188) Miscellaneous 5,000 5,344 344 . Repairs and maintenance 38,000 54,191 16,191 Salaries 260,000 247,712 (12,288) Social security 19,890 18,985 (905) Unemployment insurance 260 229 (31) Utilities 175,000 124,179 (50,821) Total Expenditures 912,700 757,981 (154,719) Budgeted net income (loss) $ (112,117) $ 89,716 $ 20 I ,833 Reconcile to financial statements prepared on a GAAP basis: Budgeted net income - Budgetary basis $ 89,716 Capital assets expensed for budgetary purposes 141,497 Depreciation expense (141,810) Disposal of equipment (net cost) (6,953) Changed in accrued compensation (5,513) Change in net assets - GAAP basis $ 76,937 .