Audit - 1987/1988
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SALINA AREA CHAMBER OF COMMERCE. INC.
Salina. Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31. 1988 and 1987
KENNEDY AND COE
Certified Public Accountants
Salina. Kansas
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Exhibit A
Exhibit B
Exhibit C
Exhibit D
Schedule 1
Schedule 2
Schedule 3
Schedule 4
Schedule 5
SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
CONTENTS
INDEPENDENT AUDITORS' REPORT
BALANCE SHEETS
STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN
FUND BALANCE
STATEMENTS OF CHANGES IN CUMULATIVE EXCESS
OF REVENUE OVER EXPENSES
STATEMENTS OF CHANGES IN FINANCIAL POSITION
NOTES TO FINANCIAL STATEMENTS
Supplemental Information
Schedule of Administrative Revenue and Related Expenses
Schedule of Economic Development Revenue and Related
Expenses
Schedule of Convention and Tourism Revenue and Related
Expenses
Schedule of Building Operations Revenue and Related
Expenses
Schedule of Program Expenses
Page
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Contents
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
I 913-825-1561
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KENNEDY AND COE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Salina Area Chamber of Commerce, Inc.:
We have audited the balance sheets of the Salina Area Chamber of Commerce, Inc.,
Salina, Kansas, as of December 31, 1988 and 1987, and the related statements of
revenue, expenses, and changes in fund balance, and changes in financial position
for the years then ended. These financial statements are the responsibility of the
Chamber's management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards.
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 finnancial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the Salina Area Chamber of Commerce,
Inc. at December 31, 1988 and 1987, and the results of its operations and the changes
in its financial position for the years then ended in conformity with generally ac-
cepted accounting principles.
Our audits were made for the purpose of forming an op1n10n on the basic financial
statements taken as a whole. The supplemental information contained in Schedules 1
through 5 is presented for the purpose of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audits of the basic financial statements and, in
our opinion, is fairly stated in all material respects in relation to the basic finan-
cial statements taken as a whole.
Respectfully submitted,
Salina, Kansas
March 28, 1989
~/ 4. J'
~
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBUC ACCOUNTANTS AND
SEe PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
BALANCE SHEETS
ASSETS
Current Assets
Cash
Certificates of deposit
Accounts receivable
Prepaid expenses
Total Current Assets
Property, Plant, and Equipment, at cost
Building (Note 4)
Furniture, fixtures and equipment
Land improvements
Deduct accumulated depreciation
Land (Note 4)
Total Property, Plant, and Equipment
Other Assets
Corporate stocks, at cost
Totals
The accompanying notes are an integral part
of these financial statements.
$ 93,338
145,000
10,266.
2,022
250,626
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December 31,
1988 1987
$ 134,855
161,536
10,209
4,213
310,813
309,052
63,850
15,280
388,182
37,007
351,175
335,382
686,557
3,484
$1,000,854
309,052
51,921
15,280
376,253
22,694
353,559
335,382
688,941
3,484
$943,051
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LIABILITIES
Current Liabilities
Accounts payable
Current maturities of long~term debt (Note 4)
Accrued interest
Payroll taxes payable
Total Current Liabilities
Deferred Revenue
Dues collected in advance
Advance space rental - Farm Exposition
Other
Total Deferred Revenue
Long-Term Debt, less current maturities (Note 4)
Cumulative Excess of Revenue over Expenses (Exhibit C)
Appropriated
Economic development
Convention and tourism
Total Appropriated
Unappropriated
Totals
Totals
Exhibit A
December 31,
1988 1987
$ 36,558 $ 20,405
6,918 6,756
998 860
796 744
45,270 28,765
75,838 54,949
6,965 5,705
1,965
84,768 60,654
181,369 187,964
14,853
53,044
67,897
621,550
689,447
13, 243
30,884
44,127
621,541
665,668
$1. 000. 854
$943.051
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
Exhibit B
STATEMENTS OF REVENUE, EXPENSES AND CHANGES
IN FUND BALANCE
Year Ended December 31,
1988 1987
Revenue
Membership dues
Interest
Program activities
Allocations for economic development (Note 2)
Allocations for convention and tourism (Note 3)
Other revenue
Total Revenue
$179,719
18,013
146,128
125,000
223,320
3,137
695,317
$173,577
15,597
132,896
110,417
180,000
3,341
615,828
Expenses
Salaries
Payroll taxes
Employees' insurance
Employees' retirement (Note 5)
Automobile expenses
Postage
printing
Supplies
Professional services
Telephone
Utilities
Dues and subscriptions
Insurance
Facilities maintenance and rental
Equipment maintenance
Professional development
Interest
Depreciation
Contract labor
Taxes
Miscellaneous
Program expenses
Total Expenses
222,344 195,817
16,926 14,000
26,905 23,334
10,974 8,322
14, 183 13,379
11,201 8,679
10,414 10,519
10,870 9,814
9,536 8,170
6,001 6,969
4,174 4,032
11,227 6,472
4,731 3,406
5,632 3,932
1,691 2,931
11,215 8,686
20,741 14,339
16,254 10,374
203 504
6,512 4,202
2,066 4,661
247,738 193,374
671,538 555,916
$ 23.779 $ 59.912
Excess of Revenue Over Expenses
The accompanying notes are an integral part
of these financial statements.
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
Exhibit C
STATEMENTS OF CHANGES IN CUMULATIVE
EXCESS OF REVENUE OVER EXPENSES
Years Ended December 31, 1988 and 1987
Unappropriated
Appropriated
Economic Convention
Development and Tourism
Total
Cumulative Excess of Revenue
Over Expenses, December 31,
1986 $593,650 $ 12,106 $ $605,756
Excess of Revenue Over
Expenses - 1987 27,891 1,137 30,884 59,912
Cumulative Excess of Revenue
Over Expenses, December 31,
1987 621,541 13,243 30,884 665,668
Excess of Revenue Over
Expenses - 1988 9 1,610 22,160 23,779
Cumulative Excess of Revenue
Over Expenses, December 31,
1988 $621,550 $ 14,853 $ 53,044 $689.447
The accompanying notes are an integral part
of these financial statements.
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
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STATEMENTS OF CHANGES IN FINANCIAL POSITION
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Exhibit D
Sources of Working Capital
From Operations
. Excess of revenue over expenses
Items not requiring an outlay of working capital
Depreciation on property, plant, and equipment
Loss on disposition of an asset
Working capital provided from operations
Increase in deferred revenue
Increase in long-term debt
Total Sources of Working Capital
Year Ended December 31,
1988 1987
$ 23,779 $ 59,912
16,254 10,374
250
40,033 70,536
24,114 35,740
105,164
64,147 211,440
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Applications of Working Capital
Acquisition of property, plant and equipment
Construction in progress, increase (decrease)
Building
Furniture, fixtures and equipment
Land improvements
Land
Decrease in long-term debt
Total Applications of Working Capital
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Increase (Decrease) in Working Capital
Changes in Components of Working Capital
Increase (Decrease) in Current Assets
Cash
Certificates of deposit
Accounts receivable
Prepaid expense
Total Increase (Decrease) in Current Assets
41,517
16,536
(57)
2,191
60,187
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Increase (Decrease) in Current Liabilities
Accounts payable
Loans payable
Accrued interest
Payroll taxes payable
Increase (Decrease) in Current Liabilities
16,153
162
138
52
16,505
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Increase (Decrease) in Working Capital
$ 43,682
The accompanying notes are an integral part
of these financial statements.
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($ 24,129)
80,000
9,922
(1,415)
64,378
(14,125)
2,556
(80)
(2,631)
04,280)
$ 78,658
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
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NOTES TO FINANCIAL STATEMENTS
December 31, 1988 and 1987
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1. Significant Accounting Policies
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The financial statements of the Salina Area Chamber of Commerce, Inc. have
been prepared on the accrual basis. The significant accounting policies
followed are described below to enhance the usefulness of the financial
statements to the reader.
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a. Depreciation of building, furniture, fixtures, equipment, and land
improvements are determined using the straight-line method over the
estimated useful life of each asset.
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b. Accounts receivable are considered to be fully collectible; accordingly,
no allowance for doubtful accounts is required. Amounts considered
uncollectible are charged off to operations as incurred.
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c. Membership dues are recognized as revenue in the applicable membership
period.
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2. Allocations for Economic Development
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Payments received for economic development program under agreements with the City
of Salina, Saline County, and Salina Airport Authority for 1988 and 1987, are
summarized as follows.
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Total
1988 1987
$ 85,000 $ 70,417
20,000 20,000
20,000 20,000
$125.000 $110.417
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City of Salina
Saline County
Salina Airport Authority
3.
Allocations for Convention and Tourism
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The Chamber has entered into an agreement with the City of Salina to operate
a bureau whose purpose is to encourage, promote, and solicit tourism and con-
ventions for the City of Salina. The agreement provides that funds will be
allocated to the Chamber for budgeted expenditures incurred in operation of
the bureau from the proceeds of a tax levied by the City upon hotel and motel
transient guests within the City. Allocations include $223,320 and $180,000
under this agreement with the City for 1988 and 1987, respectively.
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4. Long-Term Debt
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Long-term debt consists of a real estate mortgage loan in the original
amount of $200,000 with an unpaid balance of $188,287 and $194,720 at
December 31, 1988 and December 31, 1987, respectively, carried at an
interest rate of 10.75% per annum. The Chamber's land and building is
pledged as collateral on the loan.
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Annual maturities of long-term debt are as follows:
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1989
1990
1991
1992
1993
Thereafter
7,138
7,944
8,842
9,840
10,952
143,571
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$188,287
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Interest cost during the construction period of the new facility was capitalized
and included as part of the cost of the building. Total interest costs incurred
during the year ended December 31, 1987 totaled $19,541 of which $5,202 was
capitalized.
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5. Retirement Plan
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The Chamber has a defined contribution plan covering substantially all employees
who are at least 21 years of age and have completed one year of service.
Contributions are made by the Chamber equal to 6% of eligible compensation.
The total expense under the plan was $10,974 and $8,322 for the years ended
December 31, 1988 and 1987, respectively.
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The defined contribution plan referred to above is a plan available to employees
of local chambers who are members of.the American Chamber of Commerce Executives.
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SUPPLEMENTAL INFORMATION
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
Schedule 1
SCHEDULE OF ADMINISTRATIVE REVENUE AND RELATED EXPENSES
Revenue
Membership dues
Program activities
Interest
Other revenue
Total Revenue
Expenses
Salaries
Payroll taxes
Employees' insurance
Employees' retirement
Automobile expenses
Postage
Printing
Supplies
Professional services
*Telephone
Dues and subscriptions
Insurance
Facilities rental
*Facilities maintenance
Professional development
*Equipment
Contract labor
Miscellaneous
Program expenses (Schedule 5)
Total Expenses
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Excess of Revenue over Expenses before Transfers
Transfer to Economic Development
Excess of Revenue over Expenses
*Interdepartmental transfers
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1988 1987
$179,719 $173,577
89,212 83,765
13,013 15,597
1,596 1,482
283,540 274,421
84,700 80,867
6,663 5,360
10,657 10,101
4,710 4,770
4,384 4,966
6,859 5,965
10,391 9,537
5,611 5,242
3,178 2,866
2,500 3,000
6,349 2,812
1,132 564
150
14,000 14,000
4,322 2,030
250 600
73 416
1,836 2,186
89,357 83,153
256,972 238,585
26,568 35,836
20,000 20,000
$ 6.568 $ 15.836
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
Schedule 2
SCHEDULE OF ECONOMIC DEVELOPMENT REVENUE AND RELATED EXPENSES
Revenue
Program activities
Allocations for economic development
Other revenue
Total Revenue
Expenses
Salaries
Payroll taxes
Employees' insurance
Employees' retirement
Automobile expenses
Postage
Printing
Supplies
Professional services
*Telephone
Dues and subscriptions
Insur ance
Facilities. rental
*Facilities maintenance
Professional development
*Equipment
Contract labor
Miscellaneous
Program expenses (Schedule 5)
Total Expenses
Excess (Deficit) of Revenue over Expenses before Transfers
Transfer from Administrative
Excess of Revenue over Expenses
*Interdepartmental transfers
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1988 1987
$ 8,081 $ 6,464
125,000 110,417
300
133,381 116,881
72,053 61,600
5,014 4,636
6,487 4,864
2,883 1,505
3,928 3,563
2,509 1,463
16 654
2,252 1,763
3,179 2,652
1,200 1,200
2,211 1,826
1,132 564
150
14,000 14,000
3,994 2,089
100 500
65 11
151 1,243
30,597 31,461
151,771 135,744
(18,390) (18,863)
20,000 20,000
$ 1,610 $ 1,137
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
Schedule 3
SCHEDULE OF CONVENTION AND TOURISM REVENUE AND RELATED EXPENSES
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Revenue
Program activities
Allocations for convention and tourism
Other revenue
Total Revenue
Expenses
Salaries
Payroll taxes
Employees' insurance
Employees' retirement
Automobile expenses
Postage
Printing
Supplies
Professional services
*Telephone
Dues and subscriptions
Insurance
Facilities rental
*Facilities maintenance
Professional development
*Equipment
Contract labor
Miscellaneous
Program expenses (Schedule 5)
Total Expenses
Excess of Revenue over Expenses
*Interdepartmental transfers
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1988 1987
$ 48,835 $ 42,667
223,320 180,000
49
272,155 222,716
65,591 53,350
5,249 4,004
9,761 8,369
3,381 2,047
5,871 4,850
1,833 1,251
7 328
3,007 2,809
3,179 2,652
3,000 2,000
2,667 1,834
1,122 564
150
14,000 14,000
2,899 4,567
500 2,500
65 77
79 982
127,784 78,760
249,995 185,094
$ 22,160 $ 37.622
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
Schedule 4
SCHEDULE OF BUILDING OPERATIONS REVENUE AND
RELATED EXPENSES
1988
1987
Revenue
Facilities Maintenance
*Transfers from administrative
*Transfers from economic development
*Transfers from convention and tourism
Telephone
*Transfers
*Transfers
*Transfers
Equipment
*Transfers from administrative
*Transfers from economic development
*Transfers from convention and tourism
Total Transfers
$14,000 $14,000
14,000 14,000
14,000 14,000
2,500 3,000
1,200 1,200
3,000 2,000
250 600
100 500
500 2,500
49,550 51,800
391 100
850 1,710
5,000
6,241 1,810
55,791 53,610
20,741 14,339
1,345 1,714
4,174 4,032
6,512 4,202
6,001 6,969
1,691 2,931
5,632 3,482
16,254 10,374
250
62,350 48,293
($ 6,559) $ 5,317
from
from
from
administrative
economic development
convention and tourism
Other Revenue
Meeting room rental
Parking rental
Interest
Total Other Revenue
Tot a1 Revenue
Expenses
Loan interest
Property insurance
Ut i Ii ties
Taxes
Telephone
Equipment maintenance
Facilities maintenance
Depreciation
Miscellaneous
Total Expenses
Excess (Deficit) of Revenue Over Expenses
*Interdepartmenta1 transfers
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SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
SCHEDULE OF PROGRAM EXPENSES
Admini-
strative
Program Expenses
Agriculture
Community development
Internal affairs
Membership meetings
Ambassadors
Others
Prospect development
Economic development actlvltles
Advertising and promotion
Special functions and activities
Convention marketing
Convention services
Tourism marketing
$ 47,371
5,223
26,295
5,006
5,462
Total Program Expenses
$ 89,357
1988
Economic Convention
Develop- and
ment Tourism
$
8,248
8,294
5,883
8,172
$ 30,597
$
19,078
77,291
3,428
20,738
7,249
$127,784
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Totals
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$ 47,371
5,223
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26,295
5,006
5,462
8,248
8,294
24,961
85,463
3,428
20,738
7,249
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$247,738
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