Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
kennedy and coe audits 1960-1980
SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas P.O. BOX 596 • 115 WEST IRON • SALINA, KANSAS 67402-0596 • TELEPHONE (913) 827-9301 CONVENTION -TOURISM BUDGET ACCREDITED CHAMBER OF COMMERCE 1983 1984 Advertising $ 15,000 $ 15,000 Auditing & Accounting 1,000 1,000 Automobile Allowance 2,400 3,000 Contingency 1,600 -0- Convention Assistance 25,000 24,000 Dues & Subscriptions 1,800 2,000 Employees Taxes/Insurance -4,800 5,800 Meetings/Conferences 1,500 -0- Occupancy 1,800 1,800 Postage 2,400 2,400 Printing & Supplies 12,000 15,000 Salaries 28,000 28,000 Signs 15,000 14,000 Telephone & Telegraph 1,200 1,800 Travel, Promotion & Hospitality 9,500 12,000 TOTAL BUDGET: $ 123,000 $ 125,800 * $8,300 from reserve, if needed. ECONOMIC DEVELOPMENT BUDGET 1983 1984 Advertising $ -0- $ 15,000 Automobile Expenses 2,400 2,400 Dues & Subscriptions 1,500 1,500 Hospitality & Contact 3,000 3,000 Marketing 20,000 -0- Occupancy Expenses 1,800 1,800 Payroll Taxes & Insurance 5,800 5,800 Postage 3,000 3,000 Salaries 28,000 28,000 Supplies & Printing 5,000 10,000 Telephone & Telegraph 1,500 1,500 Travel & Business 8,000 8,000 TOTAL BUDGET: $ 80,000 $ 80,000 ACCREDITED CHAMBER OF COMMERCE SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas REPORT ON EXAMINATION December 31, 1982 KENNEDY AND COE Certified Public Accountants Salina, Kansas SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas TABLE OF CONTENTS Page ACCOUNTANTS' OPINION 1 Exhibit A BALANCE SHEET 2 Exhibit B STATEMENT OF INCOME AND CHANGES IN UNAPPROPRIATED SURPLUS 3-4 Exhibit C STATEMENT OF CHANGESIIN FINANCIAL POSITION 5 Notes to Financial Statements 6-7 SUPPLEMENTAL INFORMATION Schedule 1 Schedule of Operating Expenses 8 Schedule 2 Schedule of Committee Expenses 9 Table of Contents HOME OFFICE: P. O. BOK 1170 SALINA. KANSAS 67401 913-8254561 MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS To the Board of Directors Salina Area Chamber of Commerce, Inc.: OFFICES IN KANSAS NEBRASKA OKLAHOMA We have examined the balance sheet of the Salina Area Chamber of Commerce, Inc., Salina, Kansas, as of December 31., 1982 and 1981, and the related statements of income and changes in unappropriated surplus and changes in financial position for the years then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the cir- cumstances. In our opinion, the financial statements referred to above present fairly the finan- cial position of the Salina Area Chamber of Commerce, Inc. at December 31, 1982 and 1981, and the results of its operations and the changes in its financial position for the years then ended in conformity with generally accepted accounting principles applied on a consistent basis. Our examination was made for the purpose of forming an opinion on the basic finan- cial statements taken as a whole. The supplemental schedules of operating expenses and committee expenses are presented for the purpose of additional analysis and are not a required part of the basic -financial statements.Such information has been ' subjected to the auditing procedures applied in the examination of the basic finan- cial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Respectfully submitted, Salina, Kansas January 24, 1983 -1- SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas BALANCE SHEET December 31, 1982 (With comparative figures for the preceding year) ASSETS Current Assets December 31, 1982 1981 Cash $ 10,962 $ 31,230 Certificates of deposit 364,249. 286,011 Accounts receivable Dues 807 402 Reimbursements from City of Salina (Note 2) 14,354 10,407 Other 187 200 Prepaid expenses 22,288 2,539 Total Current Assets 412,847 330,789 Property, Plant, and Equipment, at cost Furniture and fixtures 19,545 19,545 Leasehold improvements 17,723 17,723 37,268 37,268 Deduct accumulated depreciation and amortization 31,201 29,374 Total Property, Plant, and Equipment 6,067 7,894 Other Assets Corporate stocks 2,024 1,212 Retirement deferred annuity contract (Note 4) 1 1 Total Other Assets 2,025 1,213 Totals $420,939 $339,896 See accompanying notes to financial statements which are an integral part hereof. LIABILITIES Current Liabilities Accounts payable Payroll taxes payable Long-term obligation due within one year Total Current Liabilities Exhibit A December 31, 1982 1981 $ 7,380 $ 8,246 828 939 1,698 2,237 9,906 11,422 Long -Term Retirement Obligation (Note 4) - 1,698 Deferred Income Dues collected in advance 5,033 20,614 Annual meeting 10,200 4,780 Advance space rental - Farm Exposition 11,880 10,100 Total Deferred Income 27,113 35,494 Surplus Appropriated for Military Affairs (Note 3) Unappropriated (Exhibit B) Total Surplus Totals 426 719 383,494 290,563 383,920 291,282 $420,939 $3391896 -2- SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas STATEMENT OF INCOME AND CHANGES IN UNAPPROPRIATED SURPLUS Year Ended December 31, 1982 (With comparative figures for the preceding year) Expenses 1982 Income 104,587 Membership dues $137,365 Interest 42,442 Miscellaneous 812 Reimbursements for economic development 7,784 City of Salina 40,000 Saline County 20,000 Salina Airport Authority 10,000 Reimbursements for convention and tourism 2,124 City of Salina 115,529 Other reimbursements 79,964 Total Income 446,112 Expenses ' Salaries 104,587 Payroll taxes 8,233 Employees' insurance 9,496 Employees' retirement 2,217 ' Automobile expenses 7,784 Postage 7,277 Printing and supplies 24,351 ' Travel and business expenses 22,416 Professional services 2,124 Hospitality and contact 6,553 ' Telephone 3,813 Dues and subscriptions 3,673 Insurance 729 Occupancy expenses 7,542 Staff training 1,360 Depreciation and amortization 1,827 Advertising 34,013 Sign rental 8,500 Institute, conference and schooling 1,063 Convention assistance 27,396 Uncollectible membership dues 2,941 Committees 65,579 Total Expenses 353,474 Net Income 92,638 Exhibit B 1981 $122,768 33,660 812 20,000 94,824 113,879 385,943 98,216 7,451 9,365 2,347 7,087 7,180 23,825 9,396 1,795 4,070 2,465 2,553 1,420 7,431 1,783 1,904 23,770 250 19,302 2,819 108,618 343,047 42,896 -3- SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit B (Contd.) STATEMENT OF INCOME AND CHANGES IN UNAPPROPRIATED SURPLUS Year Ended December 31, 1982 (With comparative figures for the preceding year) 1982 1981 Net Income (carried forward from page 3) $ 92,638 $ 42,896 Unappropriated Surplus, January 1 290,563 247,242 Transfer from appropriated surplus for military affairs (Note 3) 293 425 Unappropriated Surplus, December 31, $383,494 $290,563 See accompanying notes to financial statements which are an integral part hereof. -4- SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit C STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended December 31, 1982 (With comparative figures for the preceding year) APPLICATION OF FUNDS Acquisition of corporate stock 812 1982 1981 Decrease in long-term obligations SOURCE OF FUNDS 2,237 Net income 8,381 $ 92,638 $ 42,896 Charges against net income not requiring an expenditure 39,178 of working capital $ 94,465 $ 53,595 Depreciation on furniture and fixtures 1,733 1,810 Amortization of leasehold improvements 94 94 Net funds provided from operations 94,465 44,800 Corporate stock redeemed $ - 8,795 Totals 94,465 53,595 APPLICATION OF FUNDS Acquisition of corporate stock 812 1,212 Decrease in long-term obligations 1,698 2,237 ' Decrease in deferred income 8,381 10,968 Increase in working capital 83,574 39,178 Totals $ 94,465 $ 53,595 NET CHANGE IN WORKING CAPITAL Increase (Decrease) Current Assets Cash ($ 20,268) $ 8,702 Certificates of deposit 78,238 35,996 Accounts receivable 4,339 1,241 Prepaid expense 19,749 (489) Total Current Assets 82,058 45,450 ' Current Liabilities Accounts payable (866) 5,203 Payroll taxes payable (111) 939 Long-term obligation due within one year (539) 130 Total Current Liabilities 1,516) 6,272 Net Change in Working Capital $ 831574 $ 39,178 See accompanying notes to financial statements which are an integral part hereof. . -5- SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS 1, 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. a. The Chamber utilizes the direct charge-off method of accounting for uncollectible dues. b. Depreciation of furniture and fixtures and amortization of lease- hold improvements are determined using the straight-line method over the estimated useful life of each asset. 2. Payments for the economic development program under oral agreements with the City of Salina, Saline County, and Salina Airport Authority for 1982 and 1981, are summarized in the following schedule. City of Salina Saline County Salina Airport Authority 1982 1981 $40,000 $20,000 20,000 - 10,000 - The Chamber has entered into another agreement with the City of Salina to operate a bureau whose purpose is to encourage, promote, and solicit tourism and convention for the City of Salina. The agreement provides that the Chamber will be reimbursed for budgeted expenditures incurred in opera- tion of the bureau from the proceeds of a tax levied by the City upon hotel and motel transient guests within the City. Reimbursements include $115,529 and $94,824 under this agrement with the City for 1982 and 1981, respectively. Accounts receivable include $14,354 and $10,407 at December 31, 1982 and 1981, respectively, for amounts reimbursable under these agreements. 3. The assets of S.M.A.C., Inc. were transferred to the Salina Area Chamber of Commerce, Inc., in 1975. These funds are restricted to expenditures by the Military Affairs Committee. Amounts equivalent to expenditures by the Military Affairs Committee are transferred from appropriated surplus to unappropriated surplus. 4. The Chamber is the owner of a deferred annuity contract which will provide annuity payments upon the retirement of the executive vice-president. A separate agreement provides that ownership of the contract will transfer to him upon termination of employment with the Chamber. The contract has been recorded at $1 for control purposes. The Chamber has agreed to pay another employee retirement benefits of $200 per month for a period of five years, which payments began October 1, 1978. The present value of the future retirement payments is recorded as a liability. The following schedule summarizes employees' retirement expense. 1982 1981 Premium paid on annuity contract $ 2,054 $ 2,054 Expense accrued on retirment agreement 163 293 Totals 2.217. $ 2,347 -7- SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SUPPLEMENTAL INFORMATION December 31, 1982 SALINA AREA CHAMBER OF COMMERCE, INC. ' Salina, Kansas SCHEDULE OF OPERATING EXPENSES Year Ended December 31, 1982 (with comparative figures for the preceding year) i Economic Administrative Development ! Salaries Payroll taxes Employees' insurance Employees' retirement Automobile expenses Postage Printing and supplies Travel and business expenses Professional services Hospitality and contact Telephone Dues and subscriptions Insurance Occupancy expenses Staff training Depreciation and amortization Advertising Sign rental Institute, conference, and schooling Convention assistance Uncollectible membership dues . Totals Reimbursements $52,087 4,673 3,489 2,217 3,184 2,777 1,954 (1,993) 1,145 3,060 1,538 885 729 4,164 1,360 1,016 1,664 2,941 am Net Expenses $86,890 (1) Totals exclude committee expenses shown on Schedule 2. $24,480 1,640 3,427 2,100 2,100 12,170 7,952 3,493 1,075 1,213 1,578 13,699 74,927 70,540 $ 4,387 (2) The above operating expenses of the Chamber are allocated to economic develop- ment and to convention and tourism for reimbursement in accordance with the agreements discussed in Note 2 to the financial statements. See accompanying notes to financial statements which are an integral part hereof. 1982 _ Convention and Totals Tourism Bureau (1)(2) Administrative $ 28,020 1,920 2,580 2,500 2,400 10,227 16,457 979 1,200 1,575 1,800 811 18,650 8,500 1,063 27,396 126,078 123,964 $ 2,114 $104,587 8,233 9,496 2,217 7,784 7,277 24,351 22,416 2,124 6,553 3,813 3,673 729 7,542 1,360 1,827 34,013 8,500 1,063 27,396 2,941 287,895 194,504 $ 93,391 $ 60,796 4,443 6,682 2,347 4,027 3,880 8,880 4,817 995 2,827 1,165 1,497 1,420 5,756 1,783 1,093 2,819 115,227 $115,227 Development $10,800 900 900 900 900 1,621 1,243 600 435 1,200 3,708 23,207 22,118 $ 1,089 1981 Convention and Tourism Bureau $ 26,620 2,108 2,683 2,160 2,400 14,045 2,958 800 700 621 475 811 20,062 250 19,302 95,995 100,055 ($ 4,060) Schedule 1 Totals (1)(2) $ 98,216 7,451 9,365 2,347 7,087 7,180 23,825 9,396 1,795 4,070 2,465 2,553 1,420 7,431 1,783 1,904 23,770 250 19,302 2,819 234,429 122,173 $112,256 II ' SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Schedule.2 SCHEDULE OF COMMITTEE EXPENSES ' Year Ended December 31, 1982 (With comparative figures for the preceding year) 1 1982 1981 Reimburse- Net Reimburse- Net ' Expenses ments Expenses Expenses ments Expenses Agriculture committee All Breeds Junior Dairy Shows $11,277 $12,596 ($ 1,319) $ 9,137 $ 10,914 ($ 1,777) Mid American Farm ' Exposition 21,593 41,335 (19,742) 22,069 33,716 (11,647) Other 1,557 1,557 Ambassadors - Membership 3,332 - 3,332 2,167 55 2,112 Aviation - Transportation ' committee 923 856 67 873 675 198 Board of Directors 47 - 47 243 80 163 Breakfast club committee 1,101 723 378 595 228 367 ' Community enrichment committee 500 500 40 40 Convention - Sports - Entertainment council (1) Annual meeting 11,259 9,9.60 1,299 16,277 13,584 2,693 Education committee 681 - 681 3,750 140 3,610 Governmental affairs ' committee 580 103 477 1,147 547 600 Military affairs committee 293 - 293 425 - 425 ' Retail activities 4,382 416 3,966 2,,741 - 2,741 Salina Central City development fund 9,611 5,000 4,611 47,597 46,591 1,006 ' Totals $652579 $702989 ($ 52410) $108,618 $106,530 $ 2,088 (1) Convention - Sports - Entertainment expenses other than the annual meeting are ' included in convention and tourism bureau expenses on Schedule 1. See accompanying notes to financial statements which are an integral part hereof. Dear lir. Harrison: flIn accordance with.your requeat.we propose ta.perform the••services described below is a y connection with the establishment and maintenance of-a'fixed asset-accountinu reporting system for all.funda lothei,: than. enterprise - type funds, as required by. State �' y of Senses House l,HoP 2822:, ef ective JuI7G 1, 1978 jr s,. ...:,:.. ;•x . rI .:'„= s :;. a 'J;e duy ✓ I `Ph r y/ P We pill assist the Cit in develo in an overall plan, Y P 8 p Implementing the provisions '-`;' rof House Bill No. 2822,, including establishing the'objectivat of the system; deeetminat¢on of dollar limitations. for,fized.asset=classificat i ons�'identifying those fund operations` which will require depreciation, and the methodology to be utilized in the Initial fixed asset inventory and cost determination. We will also assist in the initial development of forms and.procedures to be used in the maintenance of the system; once:it-ts net in place. The cervices contemplatedunder this contract do 'not include the following: •,:-f1.xed:assets of the Water and:Sewerage d4pastment or rather enterprise- `I x type, funds, �the actual iof fixe&"aasets g 4i , inventory A,: cY :t4 beA $eL ups on`: tkle 8y8,tem, • :determination_ `of'coatg applicable to ;sac% asset ,or'group�of' assets ; or any required computer'%programming or initial recording of data. Fee for Services The fee for our services described above will'be $4,000 adjusted as follows, -if neceeearyt f „ • �1 J The fee will be adjusted to $ctual tits! at- rates',if'the charges at i' y<�,:`, our standard ,billing nates resell 1n s variance of.lOX or more fsoa"� ,She -amount QUOted• p e•' S Y r r - a.' r Aa I M.1 IfEFiIEDT 4vA NETIAEd'e � (, f y� t'� t' ,'- R4ivi i�hS lP�.et.� :6 < Y '=\ �. �� �W � if,��.. .i 1i1n.L�� �'. M MiP Y., -Y .4�V4" � 5 f .�ti� �•aMF.i� ri..�. � ¢Ga ^^k. �. - .}%�4wk { -q. '.,' - .;✓}L.. MEMBER! OF AMERICAN MO'fITLTE OF CERTIFIED PUBLIC ACCOLMTANTB )-.-- BAUMA OFFICE K E N NE D Y AND C O EwwwTA OFFICE y I h I u - _ RALPH E. REIT . GPA- NON. 0.-.A. CERTIFIEDMWLL P. ANDERSON. ' PUBLIC ACCOUNTANTS JOHN W. ROOS. CPA .. GER ALD V. HARMON.DERSOA LEEYER M. MERML C.PA - UNITED BUILDING - _ GAIW L POORE. 0.1A. _ _ ADLEY E. JOHNSON, CF - SALINA, KANSAS 67401 LW WAM W. EDWARD. C.P.A. DON P. DIEDERICH. C.PA - pl}8161681 ° TOM G. JOHNSON, PAUL A. OW, C.PA. _ ., CXRIBTOPNER W. MERCERCNAM. GPA. . B. E. CRIES. A. .. ALLEN EBBER,.C.PA. ' WR.,C.. � - .GREAT BEND OFFICE - GERALD L HUNTER, CVA.'may ., GEORGE F. DRAKE, C.PA. W MICHAEL SCATTY. C.PA December 20, 1978 - BER, W. ERWIN. C.P.A. ' WALTON F. CARLSON. C.PA.LAYNE C. SHIRK C.P.A. !, .'" s '. JAMES R. CRUCE. C.P.A.. " - •. ... _ '. " � � - ' OOOOLAND OFFICE' .. ' _ .. NKURTSG.E.C•P.A ROSERY D. WILBUR.. C.PA e _ GONCORpA OFFICE '" WILLIAM H. JENKINS.C.PA'. C. E. ROSER,S GPA'., ( MARVBVILLE OFFICE E WAINE HILTON. CPA` RICHARD P. MILLER. GPA - COLBY OFFICE -. R CPA ' OBERf L STEIMEL :'. ... ... •C 1., %.' .MANAGER Hr. Don Harrison, City Clerk City.of Salina Dear lir. Harrison: flIn accordance with.your requeat.we propose ta.perform the••services described below is a y connection with the establishment and maintenance of-a'fixed asset-accountinu reporting system for all.funda lothei,: than. enterprise - type funds, as required by. State �' y of Senses House l,HoP 2822:, ef ective JuI7G 1, 1978 jr s,. ...:,:.. ;•x . rI .:'„= s :;. a 'J;e duy ✓ I `Ph r y/ P We pill assist the Cit in develo in an overall plan, Y P 8 p Implementing the provisions '-`;' rof House Bill No. 2822,, including establishing the'objectivat of the system; deeetminat¢on of dollar limitations. for,fized.asset=classificat i ons�'identifying those fund operations` which will require depreciation, and the methodology to be utilized in the Initial fixed asset inventory and cost determination. We will also assist in the initial development of forms and.procedures to be used in the maintenance of the system; once:it-ts net in place. The cervices contemplatedunder this contract do 'not include the following: •,:-f1.xed:assets of the Water and:Sewerage d4pastment or rather enterprise- `I x type, funds, �the actual iof fixe&"aasets g 4i , inventory A,: cY :t4 beA $eL ups on`: tkle 8y8,tem, • :determination_ `of'coatg applicable to ;sac% asset ,or'group�of' assets ; or any required computer'%programming or initial recording of data. Fee for Services The fee for our services described above will'be $4,000 adjusted as follows, -if neceeearyt f „ • �1 J The fee will be adjusted to $ctual tits! at- rates',if'the charges at i' y<�,:`, our standard ,billing nates resell 1n s variance of.lOX or more fsoa"� ,She -amount QUOted• p e•' S Y r r - a.' Timing for Services The.services will be performed according to a time schedule mutually agreed upon .which takes into consideration the appropriate factors included in completing the project. If the above meets with your approval, -please sign in the space provided below and return a copy to us. Respectfully submitted, KENNEDY AND COE CEIRTIFIED PUBLIC ACCOUNTANTS 523 FIRST NATIONAL BANK BUILDING WICHITA. KANSAS 67202 316 - 263.4202 210 WEST SEVBNTM. P. O. BOX 623 CONCORDIA. KANSAS 60801 913 - 212.1616 109 SOUTH NINTM. P. O. BOX 33 MARYSVILLE. KANSAS 66506 913 - 362.3313 TEMPLE BUILDING. P. O. BOX 904 MCCOOK. NEBRASKA 69001 308 - 343.0717 City of Salina City Hall Building Salina, Kansas 67401 x UNITED BUILDING. P. O. SOK II79 SALINA. KANSAS 69401 913 - 112S-1561 August 15, 1980 Professional services through June 30, 1980, in connection with the appraisals of the fixed assets for the enterprise fund. This includes various meetings and interviews with prospective Appraisal firms and the sub- sequent review of their respective proposals with your representatives 1910 19TH STREET. P. O. BOK 929 GREAT BEND. KANSAS 671130 316 - 992-5273 1002 BROADWAY. P. O. SOK 167 GOOOLANO. KANSAS 67739 913 699.3676 1990 WEST FOURTH. P. O. BOK 426 COLST. KANSAS 67701 913 - 462.3919 609 SOUTH MAIN. P. O. BOK 631 SCOTT CITY. KANSAS 67671 316 - 672.5319 $5,000.00 4 ,1 M. J. KENNEDY. C.P.A. (RETIRED) MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS BALINA OFFICE RALPH E. REITZ. C.P.A. JOHN W. FOOS, GPA. LESTER M. MERT; C.P.A. ADLEY E. JOHNSON, C.P.A. DON P. DIEDERICH. C.P.A. PAUL A. MOTT, C.P.A. ALLEN WEBBER, C.P.A. GERALD L HUNTER, C.P.A. R. MICHAEL BEATTY, C.P.A. WALTON F. CARLSON, C.P.A JAMES R. CRUCE. C.P.A. KURTIS G. SIEMERS, OPA. CONCORDIA OFFICE C. E. ROBERTS, C.P.A. E. WAYNE HILTON, CPA, SCOTT CITY ROBERT BROOKS. C.P.A. MANAGER City Commissioners City of Salina P. 0. Box 746 Salina, Kansas 67401 Gentlemen: KENNEDY AND C O E CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING BALINA, KANSAS 67401 SIS - 626-1611 April 14, 1980 WICHITA OFFICE RANDALL P. ANDERSON, C.P.A. GERALD V. HARMON. C.P.A. GARY L POORE, C.P.A. WILLIAM W. EDWARD. C.P.A. TOM G. JOHNSON, C.P.A. CHRISTOPHER W. MERCHANT, C.P.A. GREAT SEND OFFICE GEORGE F. DRAKE, C.P.A. BENT W. ERWIN, C.P.A. LAYNE C. SHIRK, C.P.A. GOODLAND OFFICE ROBERT D. WILBUR, C.P.A. WILLIAM H. JENKINS, CPA. MARYSVILLE OFFICE RICHARD D. MILLER, C.P.A. COLBY OFFICE S. EUGENE CRISS, L.P.A. As a result of a meeting between Mr. Rufus Nye, City Manager, and Mr. Paul Mott. and Mr. Wann Van Robinson of our firm, we are presenting our proposal to provide assistance in the development of a system to establish and maintain fixed asset information for the Enterprise Funds of the City of Salina. This proposal ex- cludes the development of fixed asset information for funds other than the Enter- prise Funds. The City requires the detailed schedule of fixed assets to accomplish the fol- lowing objectives. • Kansas statutes require the City to maintain a detailed list of fixed assets of Enterprise Funds, complete with applicable costs, acquisitions dates, useful lives, and depreciation. "The City wants to prepare its financial statements for the Enterprise Funds on a comercial-type basis and in accordance with generally accepted ac- counting principles. Such methods require presentation of fixed assets and related depreciation expense and accumulated depreciation. •The City wants information on the operating costs of certain Enterprise Funds, principally the Water and Sewerage Department, for use in deter- mining rates charged for services provided by the enterprises. The oper- ating costs should include depreciation expense on fixed assets used by the Enterprise Funds. For purposes of this proposal, we have split the engagement into two phases. This proposal anticipates that the City will engage a firm of professional appraisers to develop the detailed list of property, plant, and equipment for the Enterprise Funds. City Commissioners April 14, 1980 Page 2 Phase I y We will assist the City in establishing information requirements for Enterprise Funds fixed assets. This phase consists of two principal tasks. • Determine for which Enterprise Funds the fixed asset and depreciation expense information will be useful. • Determine the criteria for asset selection and the details and depart- mental break -down. Once the information requirements are determined, we will work with a profes- sional appraisal firm (to be engaged by the City) to ensure that the appro- priate information is obtained by the appraisers. We will review the progress of the appraisal firm to ensure that the proper information is obtained and presented in a form suitable to the objectives of the project. We will also review the appraiser's report at the completion of their engagement. We will assist the City in determining the advantages and disadvantages of alternatives available for maintaing the fixed asset listing and deprecia- tion schedule. The alternatives available include principally use of the City's computer or an outside service bureau. Phase II We will provide assistance to the City to initially prepare a fixed asset and depreciation schedule on a computer system that, when properly maintained in future periods, will provide the city government with a permanent record of fixed assets. The tasks we anticipate to carry out this phase include the following: • Based upon the alternative selected in Phase I for maintaining the fixed asset listing and depreciation schedule, determine the implementation schedule. • Schedule and coordinate the implementation including data input, proofing, testing, etc. • Review the output with city management. Upon completion of the engagement, we will prepare a report to the City Commis- sioners explaining the results of the engagement. We understand the City would like to have the fixed assets listing completed during 1980. The timely completion of the project will depend upon the avail- ability of the professional appraisal firm. City Commissioners April 14, 1980 Page 3 • Our fees for the above described engagement will be based on our per diem rates ' and the time actually expended, plus out-of-pocket expenses. We estimate our fees to be as shown below: Phase I - (Work with appraisal firm to obtain initial list of fixed assets and assist in selection of the means of maintaining the asset list) $ 5,000 $ 5,000 Phase II - (Assist in implementation of fixed asset list on system selected) 7,700 8,300 Totals $12,700 $13,300 We have quoted a fee range for Phase II since the method of maintaining the fixed assets list selected in Phase II will affect the amount of time involved to com- plete Phase II. The project described in the proposal represents one step in meeting the City's goal of revising its financial statements for the Enterprise Funds so that they are presented on a commercial -type basis and in accordance with generally ac- cepted accounting principles for municipalities (as stated in Governmental Accounting, Auditing, and Financial Reporting, literature of the American Insti- tute of Certified Public Accountants, and the Kansas Minimum Standard Audit Program). There are additional steps that should be taken in the future to fully inte- grate the Enterprise Fund accounting system with the overall accounting system of the City government. We will identify and evaluate these additional steps at a future date. If the above meets with your approval, please sign in the space provided below and return a copy to us. Very truly yours, ILIdC. r cb-�°- Certified Public Accountants cc: Mr. Rufus Nye, City Manager Date-%-2?-80 Approval Mayor, City of Salina v/ Clerk, City of Salina § \ J ) � m K ■ CDf ■ j r § ( � k r 7 )\ o m; E , k Em ( t E / o § c � , CO) jam X § r f�§9 ) �q ® � J � � m� ( - r K � @ � | § £ o 0 N ON I ) \ k 2 B q a k 2 ? R 7 § § 2 § R — ( ƒ ° ( P c E � � �Qk � c \ & § §� ( t § � � (7 ? ! a o ` �\ k - b- 40 69 r / SN > 2 9 o 7 � > k � / Services for the month of October in connection with Phase II of Enterprise Funds fixed.asset study including meeting with Marshall and Stevens repre- sentatives and City personnel, review of.fixed asset computer print-out by Marshall -Stevens, and letter of implementation problem areas resulting from review 1610 16TH STREET. P. O. BOX 629 GREAT SENO, KANSAS 67530 316 - 796.5273 1002 BROADWAY. P. O. BOX 167 GOOOLANO. KANSAS 67735 913 - 699-3676 1650 WEST FOURTH. P. O. BOX 426 COLBY. KANSAS 67701 913 - 442-3919 606 SOUTH MAIN. P. O. BOX 631 SCOTT CITY. KANSAS 67671 316 - 673-6319 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS $2S FIRST NATIONAL BANK BUILDING x UNITED BUILDING. P. O. BOX 1179 WICHITA. KANSAS 67302 SALINA. KANSAS 67401 316 - 263.6202 913 - 823.1661 216 WEST SEVENTH. P. O. BOX 626 CONCORDIA. KANSAS 66901 913 - 243.1616 November- 23, 1981 106 SOUTH NINTH. P. O. BOX 33 MARYSVILLE. KANSAS 66506 913 - 562-8313 TEMPLE BUILDING. P. O. SOX 604 MCCOOK. NEBRASKA 69001 305 - 345.6717 City of Salina City Hall Building Salina, RS 67401 Services for the month of October in connection with Phase II of Enterprise Funds fixed.asset study including meeting with Marshall and Stevens repre- sentatives and City personnel, review of.fixed asset computer print-out by Marshall -Stevens, and letter of implementation problem areas resulting from review 1610 16TH STREET. P. O. BOX 629 GREAT SENO, KANSAS 67530 316 - 796.5273 1002 BROADWAY. P. O. BOX 167 GOOOLANO. KANSAS 67735 913 - 699-3676 1650 WEST FOURTH. P. O. BOX 426 COLBY. KANSAS 67701 913 - 442-3919 606 SOUTH MAIN. P. O. BOX 631 SCOTT CITY. KANSAS 67671 316 - 673-6319 R. MICHAEL BEATTY. C P A, MANAGING PARTNER P.O. BOX 1100, SALINA. KS 87402-1100 OFFICES KANSAS: SMITH CENTER ANTHONY TOPEKA COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODLAND OKLAHOMA: GREAT BEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WRAY SCOTT CITY KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas UNITED BUILDING P. O. BOX 1100 SALINA, KANSAS 67402-1100 913 - 825-1581 FAX 913825-5371 October 25, 1993 KURTIS G. SIMMERS, C.P A. PARTNER IN CHARGE ROBERT D. WILBUR. C.P.A.. PARTNER ALLEN WEBBER, C.P.A., PARTNER GERALD L. HUNTER. C P A- PARTNER DALE A. HEUSZEL. C.P.A.. PARTNER SHANNON L. BUCHANAN, CR A., PARTNER SHARON K. SMITH. C.P.A. PARTNER R. BARTON FARMER, PRINCIPAL GARY L. RODGERS. J.O.. C.P.A„ PRINCIPAL DAVID J. MILLS, C.P.A., PRINCIPAL RALPH E. REIT2, C P.A. (RETIRED) JOHN W. PODS. CPA. IRETIREDI L. M. MERTZ, C.PA, (RETIRED) PAULA MOTT, C.P.A. (RETIRED) ADLEY E. JOHNSON, C.P.A. IRETIREDI DON P. DIEDERICH, C.P.A. (RETIRED) We propose to audit the general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1993. Also, the financial statements document will include the following additional information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements. 1. Schedule of Receipts, Expenditures, and Changes in Unencumbered Cash Compared with Budget (Statutory Basis) - By Fund 2. Combining and Individual Fund and Account Group Statements - By Fund Type 3. Schedule of Federal Financial Assistance We understand the Finance Department will prepare a Comprehensive Annual Financial Report (CAFR) for the City for the year 1993. Such report would include, in addition to the general purpose financial statements and additional information described above, certain statistical information and an introductory section. Such statistical information and the introductory section will not be subjected to auditing procedures. The scope of our audit will include all funds of the City except: Salina Airport Authority Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority It is our understanding that the above organizations have contracted for separate audits of their operations. Based on information provided to us it is our understanding that the Salina Airport Authority and the Salina Housing Authority are considered component units of the City for financial reporting purposes under the provisions of Statement No. 14 of the Governmental Accounting Standards Board, 'The Financial Reporting Entity." Accordingly, the financial information of the Salina Airport Authority and the Salina Housing Authority will be included in the City's CAFR for the year 1993. Since these organizations have contracted for separate audits, we will make reference to the reports of the other auditors in our opinion on the City's financial statements. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina October 25, 1993 Page 2 It is also our understanding that Salina - Saline County Board of Health and Saline County - City Building Authority are joint ventures under the provisions of Statement No. 14. Accordingly, appropriate disclosures are to be included in the notes to financial statements regarding these entities. In addition, certain organizations, such as the Salina Public Library and the Salina Arts and Humanities Foundation, are considered related organizations under the provisions of Statement No. 14 which would require additional disclosures in the notes to financial statements. Our audit will be a Single Audit conducted in accordance with generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act of 1984; the provisions of OMB Circular A-128, "Audits of State and Local Governments;" and the Kansas Minimum Standard Audit Program, and will include tests of the accounting records of the City of Salina and other procedures we consider necessary to enable us to express an opinion as to whether the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the Schedule of Federal Financial Assistance and on the City's compliance with laws and regulations and its internal controls as required for a Single Audit. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1993 are (1) Environmental Protection Agency Grant - Construction Grant for Wastewater Treatment Works, (2) Community Development Block Grant - Small Cities Program, (3) Economic Development Administration Grant - Boundary Roads at KSU-Salina, (4) Certain Police Grants, and (5) Fair Housing Assistance. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. At the conclusion of our audit, we will also request certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. As required by the Single Audit Act of 1984, our audit will include tests of transactions related to federal assistance programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, Including fraud and defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention, and will include such matters in the reports required for a Single Audit. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We may advise you about appropriate accounting principles and their application and may assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles, and the safeguarding of assets. I The Honorable Mayor and The City Commissioners City of Salina October 25, 1993 Page 3 We anticipate that management and employees will cooperate in any way reasonable in furnishing information, contracts, and other documents, preparing schedules and other analyses, and locating supporting documents in connection with the audit. In order to facilitate the efficient conduct of our work, we will provide the Director of Finance our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. We also understand that the Finance Department will prepare the financial statements and supplemental information, complete with applicable notes to financial statements, in a format suitable for publication. Management has asked us to give you a maximum fee for the audit of the financial statements for the year ended December 31, 1993, based on the assumption that no accounting or bookkeeping services are required in connection with the engagement and our services are comprised of auditing the financial statements as prepared by the Finance Department. We anticipate that the financial statements and supplemental information will be ready for publication, complete with appropriate footnotes and other disclosures required by generally accepted accounting principles for governments as of April 1, 1994, at which time we will commence our final field work. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates. However, our fee for this engagement will not exceed $25,000. In the event that circumstances would arise that would cause management to request additional services in connection with the audit (such as preparation of requested schedules or analyses, preparation of estimates required for the financial statements and related adjustments, application of accounting principles, drafting of individual financial statements or notes to financial statements), such services will be provided at our standard hourly rates; the average hourly rate charged for such requested services will not exceed $75.00. We will give the assistance needed to help the Finance Department personnel perform any of these types of tasks; however, such assistance will be considered outside the maximum audit fee. We appreciate the opportunity to be of service to the City of Salina and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Certified P is Accountants �Y The Honorable Mayor and The City Commissioners City of Salina October 25, 1993 Page 4 This letter correctly sets forth the understanding of the City of Salina, Kansas. Accepted this I4 day of 1993. (y� ; 1.\,A. Mayor - City of Sali a, Kansas City Cle - City of Salina, Kansas R, MICHAEL BEATTY. C P A. MANAGING PARTNER P.O. BOX 1100, SALINA. KS 67402 1100 OFFICES KANSAS: SMITH CENTER ANTHONY TOPEKA COLEY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODLAND OKLAHOMA: GREAT BEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WRAY SCOTT CITY KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 1100 SALINA. KANSAS 67402-1100 913-825-1561 FAX 913 825 5371 I December 17, 1992 The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas KUPTIS G, SIMMERS. C.P.A. PARTNER IN CHARGE ROBERT D, WILBUR. C.P,A.. PARTNER ALLEN WEBBER. C.P,A.. PARTNER GERALD L. HUNTER. CP.A.. PARTNER DALE A, HEUSZEL C.PP.. PARTNER SHANNON L. BUCHANAN. CA., PARTNER SHARON K, SMITH. CPA, PARTNER R. BARTON FARMER. PRINCIPAL GARY L. RODGERS, J.D., C.P A., PRINCIPAL DAVID J. MILLS, C.P,A.. PRINCIPAL RALPH E. REIT7, C A. IRETIREDI JOHN W. PODS CRA, (RETIRED) L, M. MERTZ, C.P.A. (RETIRED) PAUL A. MOTT. C P . (RETIRED) ADLEY E. JOHNSON. C.P.A. (RETIRED) DON P. DIEDERICH. C. RA. (RETIRED) We propose to audit the general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1992. Also, the financial statements document will include the following additional information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements. 1. Schedule of Receipts, Expenditures, and Changes in Unencumbered Cash Compared with Budget (Statutory Basis) - By Fund 2. Schedule of Federal Financial Assistance The scope of our audit will include all funds of the City except: Salina Airport Authority Salina Housing Authority Salina Arts Commission Salina - Saline County Board of Health Saline County - City Building Authority Firemen's Relief Association Salina Public Library It is our understanding that the above organizations have contracted for separate audits of their operations and that none of the above organizations are component units of the City governmental reporting entity. Our audit will be a Single Audit conducted in accordance with generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act of 1984; the provisions of OMB Circular A-128, "Audits of State and Local Governments;" and the Kansas Minimum Standard Audit Program, and will include tests of the accounting records of the City of Salina and other procedures we consider necessary to enable us to express an opinion as to whether the financial statements are fairly presented, in all material MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina December 17, 1992 Page 2 respects, in conformity with generally accepted accounting principles and to report on the Schedule of Federal Financial Assistance and on the City's compliance with laws and regulations and its internal controls as required for a Single Audit. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1992 are 1) Environmental Protection Agency Grant - Wastewater Treatment Plant, 2) Economic Development Grant - Boundary Roads at KSU-Salina, (3) Certain Police Grants, and (4) Fair Housing Grants. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. At the conclusion of our audit, we will also request certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. As required by the Single Audit Act of 1984, our audit will include tests of transactions related to federal assistance programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud and defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention, and will include such matters in the reports required for a Single Audit. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We may advise you about appropriate accounting principles and their application and may assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles, and the safeguarding of assets. We anticipate that management and employees will cooperate in any way reasonable in furnishing information, contracts, and other documents, preparing schedules and other analyses, and locating supporting documents in connection with the audit. In order to facilitate the efficient conduct of our work, we will provide the Director of Finance our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. We also understand that the Director of Finance will prepare the financial statements and supplemental information, complete with applicable notes to financial statements, in a format suitable for publication. The Honorable Mayor and The City Commissioners City of Salina December 17, 1992 Page 3 Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates. However, our fee for this engagement will not exceed $29,700. In the event that unusual circumstances would arise that would cause management to request additional services in connection with the audit (such as wholesale drafting of all the financial statements or all notes to financial statements), such services will be provided at an hourly rate of $75.00. CAFR Ootion We understand the Finance Department may prepare a Comprehensive Annual Financial Report (CAFR) for the City for the year 1992. Such report would include, in addition to the general purpose financial statements and additional information described in the first paragraph of this letter, the following information. A. Combining and Individual Fund and Account Group Statements - by fund type B. Certain statistical information C. An introductory section If the Finance Department proceeds with the preparation and issuance of the CAFR, the information under B. and C. above will not be subjected to auditing procedures. The information in A. above will be subjected to the auditing procedures applied in the audit of the general purpose financial statements. Our fee for the additional audit services related to the CAFR will be provided at an hourly rate of $75.00; however, our fees for these additional services will not exceed $2,500. Other Services We will also provide up to two hours per calendar month, non -cumulative, of requested additional services for the purpose of consulting, answering queries, assisting with minor problem areas, and similar general assistance. Our fees for such consultation services in excess of two hours per month will be charged at an hourly rate of $75.00. Charges will be made for any out-of- pocket costs such as long-distance telephone, postage, and copy/fax charges which are not part of the audit engagement. The arrangement described in this paragraph shall be for the twelve month period ending December 31, 1993. Billings for audit and consultation services will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. We appreciate the opportunity to be of service to the City of Salina and believe this letter accurately summarizes the significant terms of our The Honorable Mayor and The City Commissioners City of Salina December 17, 1992 Page 4 engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Certified blic Accountants This letter correctly sets forth the understanding of the City of Salina, Kansas. Acceptedw this ��+ day of ._ ...�, 1992. Mayor11- City of S a, Kansas Cit Clerk - City of Salina, Kansas R. MICHAEL BEATTY. C P.A. MANAGING PARTNER P.O. BOX 1100. SALINA. KS 67402�1100 OFFICES KANSAS: SMITH CENTER ANTHONY TOPEKA COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODLAND OKLAHOMA: GREAT BEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WRAY SCOTT CITY KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 11 DO SALINA, KANSAS 67402-1100 913 - 825.1561 FAX 913825-5371 June 22, 1993 � 1? Municipal Accounting Section ( J� Department of Administration Division of Accounts and Reports Room 253, Landon State Office Bldg. Topeka, KS 66612-1248 KURTIS G. SIEMENS. CA. PARTNER IN -CHARGE ROBERT O. WILBUR. C.P.A.. PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L. HUNTER, C PA. PARTNER GALE A. HEUSZEL. C.P.A. PARTNER SHANNON L. BUCHANAN. C.P.A.. PARTNER SHARON K. SMITH. C RA. PARTNER R. BARTON FARMER, PRINCIPAL GARY L. RODGERS. J.O.. C.P.A.. PRINCIPAL DAVID J. MILLS, CPA.. PRINCIPAL RALPH E. REITZ. CRA <RETIREDI JOHN W. PODS, C.P.A. IRETIREDI L. M. MERTZ. C.P.A. (RETIRED) PAUL A. MOTT, C.P.A. (RETIRED) ADLEY E. JOHNSON. C.P.A. (RETIRED) DON P. DIEDERICH, C RA, IRETIREDI Enclosed please find two copies of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1992, and our reports thereon. We understand one copy of the financial statements will be forwarded to the National Clearinghouse for Single Audit Reports. Very truly yours, Certified Public Accountant DJM/tlb/s52920/2tbltrs.wp5 Enc. Copy: JMr. Robert K. Biles Director of Finance 300 West Ash Salina, KS 67401 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS AS Environmental Protection Agency VC0 21�Attn: Karen Sherrill ( 726 Minnesota Avenue Kansas City, KS 66101 Enclosed please find one copy of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1992, and our reports thereon. Very truly yours, I _ /' , Certified Public Accountant DJM/tlb/s52920/2tbltrs.wp5 Enc. Copy: Jmr. Robert K. Biles Director of Finance 300 West Ash Salina, KS 67401 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS KENNEDY AND COE R. MICHAEL BEATTY. C. P.A. CERTIFIED PUBLIC ACCOUNTANTS KURTIS G. SHINERS, C.PA, MANAGING PARTNER PARTNERANCMARGE PO- BOX 1100. SAUNA. KS 674021100 UNITED BUILDING P. O. BOX 1100 SALINA. KANSAS 67402-1 100 ROBERT D. WILBUR, C.P.A.. PARTNER OFFICES ALLEN WEBBER. C.PA.. PARTNER KANSAS: SMITH CENTER 913 - 625.1561 GERALD L HUNTER, C.P.A.. PARTNER ANTHONY TOPEKA FAX 913 S25 5371 DALE A. NEUSZEL. C.P.A., PARTNER COLEY WICHITA SHANNON L. BUCHANAN. C P.A.. PARTNER CONCORDIA NEBRASKA: SHARON K. SMITH. C,PA. PARTNER GARDEN CITY MCCOOK G OKLAHOMA: R. BARTON FARMER. PRINCIPAL GREATREAT BEN KENO ALVA GARY L. PODGERI. J.O.. ClA_ PRINCIPAL MARrsvILLE COLORADO: DAVID J. MILLS. C.P.A., PRINCIPAL PRATT LAMAR RALPH E. REITZ. C. P. A. IRETIREDI SALINA WRAP JOHN W. SCOTT CITU June 22, 1993 L. M. TZ. C. A. (R TIRED)(RETIREOI A. MOT . CA,A 'RUINED) PAUL A. MOTT. C.P.1. METIREOI ADLEY E. JOHNSON. C.P. A. IRETIREDI DON P. DIEDERICN. C P.A, IRETIREDI Environmental Protection Agency VC0 21�Attn: Karen Sherrill ( 726 Minnesota Avenue Kansas City, KS 66101 Enclosed please find one copy of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1992, and our reports thereon. Very truly yours, I _ /' , Certified Public Accountant DJM/tlb/s52920/2tbltrs.wp5 Enc. Copy: Jmr. Robert K. Biles Director of Finance 300 West Ash Salina, KS 67401 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS it R. MICHAEL BEAT". C.PA. MANAGING PARTNER PO, BOX 1100. SALINA. HE 6740E 11 OO OFFICES KANSAS: SMITH CENTER ANTHONY TOPEHA COLBY WICHRA CONCORDIA NEBRASKA: GARDEN CITY MCCOOH GOODLAND OKLAHOMA: GREAT BEND ALVA MARYsvuLE COLORADO: PRATT LAMAR SALINA WRAY SCOTT CITY KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX I IOD SALINA, KANSAS 67402-1100 913 - 825.1301 FAX 913.828.5371 June 22, 1993 Kansas Department of Health and Environment Bureau of Water Attn: Bob Nicholson Building 740 Forbes Field Topeka, KS 66620 RURTIS O. SIEMERS. C P.A. PARTNER IN -CHARGE ROBERT D. WILBUR. C.P.A., PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L. HUNTER. OP.A.. PARTNER DALE A. HID SZEL C.P.A.. PARTNER SHANNON L BUCHANAN. C.P A. PARTNER SHARON N. SMITH. C.P.A. PARTNER R. BARTON FARMER. PRINCIPAL DART L. RODGERS. J.D.. C.P.A.. PRINCIPAL DAVID J. MILLS. C,P.A.. PRINCIPAL RALPH E. REITZ. C,P.A. IRETIREDI JOHN W. POOS. C.P.A. (RETIRED) L. M. MERTZ. C.P.A. (RETIRED) PAUL A. MOTT. LP.A. IRETIRED) ADLEY E. JOHNSON. C.P.A. IRETIREW PON P. DIEDERICH. C,P.A. RETIRED) Enclosed please find one copy of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1992, and our reports thereon. Very truly yours, JV- -�� Certified Public Accountant DJM/tlb/x52920/2tbltrs.wp5 Enc. / Copy: J Mr. Robert K. Biles Director of Finance 300 West Ash Salina, KS 67401 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS R. MICHAEL BEATTY. C P.A. MANAGING PARTNER PO. BOX 1100. SALINA. KS 117402�1 IGO OFFICES KANSAS: SMITH CENTER ANTHONY TOPEKA COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODLAND OKLAHOMA: GREAT BEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WRAY SCOTT CITY Ms. Julie McKenna Saline County Attorney 300 West Ash Salina, KS 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 1100 SALINA. KANSAS 67402-1100 913 - 825-1551 FAX 913.5255371 June 22, 1993 KURTIS O. SIEMERS, C.P.A. PARTNER IN CHARGE ROBERT D. WILBUR, C.P.L. PARTNER ALLEN WEBBER, C.P.A., PARTNER GERALD L. HUNTER. CP.A.. PARTNER DALE A. MEUSZEL C.P.A.. PARTNER SHANNON L BUCHANAN. C.P.A., PARTNER SHARON R. SMITH. C.P.A. PARTNER R. BARTON FARMER. PRINCIPAL GARY L. RODGERS. J.D.. C.P.A., PRINCIPAL DAVID J. MILLS. C.P.A., PRINCIPAL RALPH E REITZ. C.P.A. IRETIREDI JOHN W. PODS. CF A. IRETMEOI L. M. MERTZ. C.P.A METIREDI PAUL A. NO". C.P.A. METIREDI ADLEY E. JOHNSON. C.P.A. IRETIREDI DON P. DIEDERICN. C.P.A. IRETIREDI L S' Enclosed please find one copy of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1992, and our reports thereon. Very �truly i yours, Certified Public Accountant DJM/tlb/s52920/2tbltrs.wp5 Enc. / Copy: ✓Mr. Robert K. Biles Director of Finance 300 West Ash Salina, KS 67401 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS CITY OF SAUNA, KANSAS City AMuffaw Gw* A Bao60ma M3) SZ"M June 15, 1993 Kennedy and Coe Certified Public Accountants P. O. Box 1100 Salina, KS 67402-9933 Re: City of Salina, Kansas Audit Gentlemen: IW sown M P.O. Elm 380 Saffak SS COMM Robert K Biles, Director of Finance for the City of Salina, Kansas ("City") has requested that we furnish you with certain information in connection with your examination of the accounts of the City as of December 31, 1992 and during the period from that date to the date of this letter. While this firm represents the City on a regular basis, our engagement has been limited to specific matters as to which we were consulted by the City. Our response is limited to matters involving our professional engagement as attorneys for the City and does not include information received in any other role. We make no representation regarding the adequacy of our procedures for your purposes. Furthermore, we have made no independent review of the transactions or contractual arrangements of the City for purposes of this response. Subject to the foregoing and to the last paragraph of this letter, we advise you that as of December 31, 1992 and during the period from that date to the date of this letter, we have not been engaged to give substantive attention to, or represent the City in connection with, material loss contingencies coming within the scope of clause (a) of Paragraph 5 of the Statement of Policy referred to in the last paragraph of this letter, except as follows: Kennedy and Coe June 15, 1993 Page 2 1. Claims by Billy L. Walter, Douglas Chegwidden. and Barbara Wicks A. Douglas Chegwidden v. City of Salina, et al.. U. S. District Court, District of Kansas Case No. 90-2424-0. The petition alleged that the City of Salina, through its agents and employees acting under the color of state law, violated the plaintiff's civil rights by the unjustified use of excessive force during the arrest and unlawful detention of the plaintiff and seeks compensatory damages of $350,000 and punitive damages of $1,000,000. B. Barbara A. Wicks v. City of Salina, et al U. S. District Court, District of Kansas Case No. 90-2425-V. The petition set out the same cause of action and prayer for damages as the Chegmidden petition. C. Billy I_ Walter v. City of Salina, et al. U. S. District Court, District of Kansas Case No. 90-24260. The petition set out the same causes of action and prayer for damages as the Chegi5idden petition. Defense of the cases was assumed by the law firm of Morrison -Hecker, Overland Park, Kansas, insurance defense counsel. The case went to a jury trial in March 1993. The jury's verdict provided the basis for a negotiated settlement of all claims (including attorneys' fees). The cost of the settlement was paid by the City's police liability carrier. The case is now closed. 2. Eletha Kay Riley v. City of Salina, et al. On November 11, 1991 a claim was filed on behalf of Eletha Kay Riley alleging illegal arrest, false imprisonment, assault and battery, pain and suffering, and violation of civil rights. The claimant alleges actual damages in the amount of $100,000 and punitive damages in the amount of $500,000. Suit has not been filed. The matter has been referred to the City's police liability carrier. The City has not and does not intend to take any action related to the claim unless suit is filed. 3. Gary Darby Sr. vs. City of Salina, et al On February 24, 1993, a pro se Petition was filed by Gary Darby Sr. requesting relief for the Salina Police Department's alleged failure to turn over to plaintiff personal and private letters taken from plaintiffs home. On June 14, 1993 this case was dismissed by the Court with prejudice for several reasons: failure to state a cause of action for which relief can be granted; all of the actions complained of by the plaintiff were within the scope of the authority of the Salina Police Department; and failure to comply with court settings. Kennedy and Coe June 15, 1993 Page 3 We express no opinion with respect to matters not specifically referred to herein, and under no circumstances are you to infer from anything stated or not stated herein any opinion with respect thereto. The information set forth herein is given as of the date of this letter, except as otherwise noted, and we disclaim any undertaking to advise you of changes which thereafter may be brought to our attention. This response is limited by, and in accordance with the ABA Statement of Policy Regarding Lawyers' Responses to Auditors' Requests for Information (December, 1975); without limiting the generality of the foregoing, the limitations set forth in such Statement on the scope and use of this response (paragraphs 2 and 7) are specifically incorporated herein by reference, and any description of any 'loss contingencies" is qualified in its entirety by Paragraph 5 of the Statement and the accompanying Commentary (which is an integral part of the Statement). Consistent with the last sentence of Paragraph 6 of the ABA Statement of Policy, and pursuant to the City's request, this will confirm as correct the City's understanding as set forth in its audit inquiry letter to us that whenever, in the course of performing legal services for the City with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial disclosure, we have formed a professional conclusion that the City must disclose or consider disclosure concerning such possible claim or assessment, we, as a matter of professional responsibility to the City, will so advise the City and will consult the City concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards No. 5. Very truly yours, Greg A. Bengtson City Attorney GAB/sg W. Dennis M. Kissinger, City Manager Robert K. Biles, Director of Finance R. MICHAEL BEATTY. C.PA. MANAGING PARTNER PO. Box IIGO. SALINA. FS 67402 1 GO OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODUNO OKLAHOMA: GREAT SEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WESTMINSTER WRAY The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 1100 SALINA. KANSAS 67402-1100 813 - 825-1561 FAX 813 825 5371 September 10, 1991 R. MICHAEL BEATTY. C PA. PARTNER IN -CHARGE ROBERT O. WILBUR. C.P.A.. PARTNER DON P. DIEDERICH, C.P.A., PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L. HUNTER, C.P.A.. PARTNER KURTIS G SIEMERS. C.P.A.. PARTNER DALE A. HEUSZEL. C.P.A., PARTNER SHANNON L. BUCHANAN. C.P.A.. PARTNER SHARON K. SMITH, C.PA.. PARTNER R. BARTON FARMER, PRINCIPAL GARY L. RODGERS. J.D.. C.P A.. PRINCIPAL DAVID J. MILLS, C.P.A.. PRINCIPAL RALPH E. REITZ. C.P.A. IRETIREDI JOHN W. PODS. C.P.A. IRETIREDI E. T. SHEA. C P.A. (RETIRED L. M. MERTZ. C.P A. IRETIREDI PAUL A. MOTT, C.P.A. (RETIRED) ADLEY E. JOHNSON, C.P.A. IRETIREDI We propose to audit the general purpose financial statements of the City of Salina, Kansas, as of and for the year ended December 31, 1991. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements. 1. Combining Financial Statements - By Fund Type 2. Schedule of Receipts, Expenditures, and Changes in Unencumbered Cash Compared with Budget (Statutory Basis) = By Fund 3. Schedule of Federal Financial Assistance The scope of our audit will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Airport Authority Firemen's Relief Association Salina Public Library It is our understanding that the above organizations have contracted for separate audits of their operations. Our audit will be a Single Audit conducted in accordance with generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act of 1984; the provisions of OMB Circular A-128, "Audits of State and Local Governments;" and the Kansas Minimum Standard Audit Program, and will include tests of the accounting records of the City of Salina and other procedures we consider necessary to enable us to express an opinion as to whether the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the Schedule of Federal Financial Assistance and on the City's compliance with laws and regulations and its internal controls as required for a Single Audit. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS AR -102 (10-1-87) CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME a/10/al 4;uu r. m. AGENDA SECTION: Administration ORIGINATING, DEPARTMENT: APPROVED FOR 8 Finance AGENDA: ITEM NO. 5 Robert' K. Biles BY: i BY:;, 2E�r F_ Resolution Number 91-4381, authorizing the Mayor to execute an agreement between the City of Salina and Kennedy and Coe, Certified Public Accountants, for an audit of City records for the year ending December 31, 1991. Kennedy and Coe has presented the City with a proposal to audit the 1991 financial "statements. The proposals reflects the additional audit work :required for Kennedy and Coe to give an opinion on our financial statements' when presented in accordance with generally accepted accounting principles (GAAP) Under this proposal, City staff will be responsible for the preparation of numerous workpapers for the auditors. City staff will also be responsible for the -preparation of GAAP basis financial statements. As you will recall, the City engaged Kennedy and Coe under separate agreement last Novemaber 6th to audit January 1, 1991 receivables, fixed assets and other assets tracked under GAAP in .order to provide a good starting point for the 1991 financials. The , proposal establishes a fee of $28,800. This includes the increased work needed to provide an opinion on GAAP basis financial statements. The price also includes an amount to cover up to two hours of Kennedy and Coe staff time per month for consultation on accounting issues. Kennedy and Coe's proposal is attached. Presentation of GAAP basis financial statements represents a significant milestone in<our efforts over the <last 4 years to improve our internal and external financial reporting. Two areas remain to be explored. The first is establishing a "layman's" report on our finances. Our first step was our June 10th report to the City Commission. We will be looking at how we can make that type of report more "user friendly". The second is obtaining the Governmental Finance Officers:. Association's Certificate of Conformance in Financial Reporting. This Certificate, is awarded to those governments which meet the highest standards of financial reporting and often requires two or more years to meet the guidelines. We may want to consider making a submission with our 1992 annual report. COMMISSION ACTION MOTION BY SECOND BY TO: CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME li•nnG M AGENDA SECTION: ORIGI.NATING DEPARTMENT: APPROVED FOR NO.: AGENDA: ITEM NO. BY: BY: Kennedy and Coe representatives will be in attendance to discuss their proposal. Recommended Action Adopt Resolution 91-4381, authorizing the Mayor to execute an agreement between the City of Salina and Kennedy and Coe for an audit of the, ` 1991 financial statements in an amount not to exceed $28,800. COMMISSION ACTION MOTION BY SECOND BY TO: R. MICHAEL BEAT". C.P.A. MANAGING PARTNER PO. BOX 1100. SAUNA, KS .1102.11. OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODLAND OKLAHOMA: GREAT BEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WESTMINSTER W RAY The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 11 GO SALINA, KANSAS 67402-1 100 913 825 1561 FAX 913-6255371 September 10, 1991 R. MICHAEL SEATTY, C.P.A. PARTNERIN{HARGE ROBERT D. WILBUR. C.P.A., PARTNER DON P. OIEDERICH. CF.A- PARTNER ALLEN WEBBER. C. PA.. PARTNER GERALD L. HUNTER. CPA. PARTNER KURTIS G. SIEMERS. C.P.A., PARTNER DALE A. HEUSZEL. CFA- PARTNER SHANNON L. BUCHANAN. C.P.A.. PARTNER SHARON K. SMITH. C.P.A.. PARTNER R. BARTON FARMER. PRINCIPAL GARY L. RODGERS. J.D. C P.A.. PRINCIPAL DAVID J. MILLS. C.P.A.. PRINCIPAL RALPH E. REITZ. CPA IRETWEDI JOHN W. PODS. C.P.A. (RETIRED) E.T. SHEA. CPA (RETIRED) L M. MERTZ. C.P.A. (RETIRED) PAUL A. MOTT, C P A. IRETIRED) ADLEY E. JOHNSON. C.P.A. (RETIRED) We propose to audit the general purpose financial statements of the City of Salina, Kansas, as of and for the year ended December 31, 1991. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements. 1. Combining Financial Statements - By Fund Type 2. Schedule of Receipts, Expenditures, and Changes in Unencumbered Cash Compared with Budget (Statutory Basis) - By Fund 3. Schedule of Federal Financial Assistance The scope of our audit will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Airport Authority Firemen's Relief Association Salina Public Library It is our understanding that the above organizations have contracted for separate audits of their operations. Our audit will be a Single Audit conducted in accordance with generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act of 1984; the provisions of OMB Circular A-128, "Audits of State and Local Governments;" and the Kansas Minimum Standard Audit Program, and will include tests of the accounting records of the City of Salina and other procedures we consider necessary to enable us to express an opinion as to whether the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the Schedule of Federal Financial Assistance and on the City's compliance with laws and regulations and its internal controls as required for a Single Audit. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina September 10, 1991 Page 2 It is our understanding that the funds subject to OMB Circular A-128 requirements for 1991 are 1) Community Development Block Grant - Small Cities Program - Housing Rehabilitation Grant and 2) Fair Housing Assistance Program. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. At the conclusion of our audit, we will also request certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. As required by the Single Audit Act of 1984, our audit will include tests of transactions related to federal assistance programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention, and will include such matters in the reports required for a Single Audit. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We may advise you about appropriate accounting principles and their application and may assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles, and the safeguarding of assets. The timing for the completion of this engagement will be as follows: 1. We will complete our field work and deliver a discussion draft of the report to City management on or before May 18, 1992. To accomplish this we anticipate performing interim work prior to December 31, 1991. 2. We will deliver the completed report after management reviews the discussion draft. It is expected this process will be completed so that delivery of the final reports will occur on or before May 31, 1992. We anticipate that management and employees will cooperate in any way reasonable in furnishing information, contracts, and other documents, preparing schedules and other analyses, and locating supporting documents in connection with the audit. In order to facilitate the efficient conduct of our work, we will provide the Director of Finance our requirements for audit documentation, The Honorable Mayor and The City Commissioners City of Salina September 10, 1991 Page 3 schedules and analyses, and develop a schedule for when such information is to be available. We also understand that the Director of Finance will prepare the financial statements and supplemental information, complete with applicable notes to financial statements, in a format suitable for publication. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates. However, our fee for this engagement will not exceed $28,800. In the event that unusual circumstances would arise that would cause management to request additional services in connection with the audit (such as wholesale drafting of all the financial statements or all notes to financial statements), such services will be provided at an hourly rate of $75.00. We will also provide up to two hours per calendar month, non -cumulative, of requested additional services for the purpose of consulting, answering queries, assisting with minor problem areas, and similar general assistance. Our fees for such consultation seryices in excess of two hours per month will be charged at an hourly rate of $75.00. Charges will be made for any out-of-pocket costs such as long-distance telephone, postage, and copy/fax charges which are not part of the audit engagement. The arrangement described in this paragraph shall be for the twelve month period ending September 30, 1992. Billings for audit and consultation services will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. We appreciate the opportunity to be of service to the City of Salina and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Certified is Accountants This letter correctly sets forth the understanding of the City of Salina, Kansas. Accepted this day of 1991. Mayor - City of Salina, Kansas City Clerk - City of Salina, Kansas RESOLUTION NUMBER 91-4381 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST AN AGREEMENT BETWEEN THE CITY OF SALINA AND KENNEDY AND COE, CERTIFIED PUBLIC ACCOUNTANTS, FOR AN AUDIT OF CITY RECORDS FOR THE YEAR ENDING DECEMBER 31, 1991, FOR A COST NOT TO EXCEED TWENTY-EIGHT THOUSAND EIGHT HUNDRED DOLLARS ($28,800). BE IT RESOLVED by the Governing Body of -the City of Salina, Kansas: Section 1. That the Mayor and City Clerk of the City of Salina are hereby authorized to execute an agreement between the City of Salina and Kennedy and Coe, Certified Public Accountants for an audit of city records for the year ending December 31, 1991, at a cost not to exceed twenty-eight thousand eight hundred dollars ($28,800). Adopted by the Board of Commissioners and signed by the Mayor this 16th day of September, 1991. Stephen C. Ryan, Mayor (SEAL) ATTEST: Jacqueline Shiever, City Clerk CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME III I`J/lbovu 4: Uu r. M. ACFNDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR NO' 8 Director of Finance AGENDA: ITEM NO. 7 : Robert K. Biles I BY: Resolution Number 90-4249, authorizing the Mayor to execute an agreement with Kennedy and Coe, Certified Public Accountants, to perform additional services in relation to the preparation of the City's 1991 financial statements in accordance with generally accepted accounting principles, in an amount not to exceed $5,000,00. As was discussed in the October 15, 1990 City Commission meeting., the City has historically presented its financial statements on a cash basis. of accounting as modified for encumbrances and purchase commitments. This is the reporting basis required by the State of Kansas. Although this basis of accounting does provide certain advantages, it does not report accruals, receivables, fixed assets, long-term liabilities or reservations of fund balances. This informationY is very Important to users of the City's financial statements. GAAP basis reporting provides this information. However, in order for the auditors to provide an.,; opinion on the complete set of financial statements for 1991, City staff will be'> required to determine the Information for many balance sheet accounts as of January 1, 1991. This proposal sets forth the procedures Kennedy and Coe�must do to satisfy themselves that the information compiled by City staff is materially correct and meets GAAP standards. As noted In the proposal, the estimated fee Is $5,000. This Is only art=.estima"te, the billing will be based upon actual hours. Should It appear the fees may exceed the $5,000 amount, Kennedy and Coe will discuss this with the. City Commission before proceeding further. Staff believes these services will allow for a smoother transition to providing both statutory and GAAP basis reporting. Recommended action Adopt Resolution Number 90-4249. COMMISSION ACTION MOTION BY SECOND BY TO: RESOLUTION NUMBER 90-4249 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST AN AGREEMENT BETWEEN THE CITY OF SALINA, KANSAS, AND KENNEDY AND COE, CERTIFIED PUBLIC ACCOUNTANTS, TO PERFORM ADDITIONAL SERVICES IN RELATION TO THE PREPARATION OF THE CITY'S 1991 FINANCIAL STATEMENTS IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AT A COST NOT TO EXCEED FIVE THOUSAND DOLLARS (;5,000). BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Mayor and City Clerk of the City of Salina are hereby authorized to execute an agreement between the City of Salina. Kansas. and Kennedy and Coe, Certified Public Accountants, to perform additional services in relation to the preparation of the City's 1991 financial statements in accordance with generally accepted accounting principles, city records for the year ending December 31, 1991, at a cost not to exceed Five Thousand Dollars (;5,000). Adopted by the Board of Commissioners and signed by the Mayor this 19th day of November, 1990. Robert E. Frank, Mayor [SEAL] ATTEST: Jacqueline Shiever, City Clerk R. MICHAEL BEATTY. C.P.A. MANAGING PARTNER PO, BOX 1100, SALINA. RE 674021IC0 OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOON GOOD ND OKLAHOMA: GREAT BEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WESTMINSTER WRAY The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 1100 SALINA. KANSAS 67402-1100 813 - 825-1561 FAX 813.825.5371 November 9, 1990 R. MICHAEL BEATTY. C . A. PARTNER IN CHARGE ROBERT D. WILBUR. C A.. PARTNER DON P. DIEDERICH, C.P.A.. PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L HUNTER. C.P.A.. PARTNER KURTIS G. SIEMERS, C.P. A. PARTNER DALE A. HEUSZEL. C.P.A.. PARTNER SHANNON L. BUCHANAN. C.P.A., PARTNER SHARON N. SMITH, C.P.A., PARTNER R. BARTON FARMER, PRINCIPAL GARY L. RODGERS. J.O.. C.P.A.. PRINCIPAL DAVID J. MILLS, C.P.A.. PRINCIPAL RALPH E. REITZ. C.P.A. IRETIREOI JOHN W. PODS. C.PA. (RETIRED) E. T. SHEA. C.P.A. (RETIRED) L. M. MERTZ. C.P.A. (RETIRED) PAUL A. MOTT. C.P A. (RETIRED) AOLEY E. JOHNSON, L.P.A. IRETIREDI This letter sets forth in summary form certain terms, concepts and conditions relating to the proposed services enumerated below, and the nature and limitations on such services. Background Information We understand City management is considering the preparation of financial statements for the year 1991 using generally accepted accounting principles (GAAP). The City has historically presented financial statements using the cash basis of accounting, modified by recording expenditures incurred but not paid and purchase commitments (Statutory basis). Preparation of GAAP basis financial statements will require the development of certain financial information to adjust the City's financial records to a GAAP basis presentation. Examples of such financial information include, but are not limited to, the following: Taxes receivable (property, sales, franchise) Accounts receivable Interest receivable Due to/from various funds Deferred revenues Prepaid expenses Inventories Reservations of fund balances Encumbrances Inventories Fixed asset information The City is approaching the conversion to GAAP basis financial statements in a two-step process. 1. , Identify modifications and additional information necessary as of January 1, 1991. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina November 9, 1990 Page 2 2. Prepare GAAP basis financial statements for calendar year 1991. The information developed at January 1, 1991, will serve one of two purposes: a. Information necessary to prepare 1991 GAAP basis financial statements, especially as it relates to the enterprise funds. b. Information necessary to determine materiality of various items for consideration at December 31, 1991. Proposed Services by Kennedy and Coe We propose to apply the procedures described in the accompanying schedule. Because these procedures do not constitute an audit conducted in accordance with generally accepted auditing standards, we will not express an opinion on any of the items specified in the schedule. These procedures will not affect, and are in addition to, our separate engagement to audit the City's statutory basis financial statements for the year ended December 31, 1990. The purpose of such procedures is to test and verify certain adjustments that City manage- ment will need to make to the City's statutory basis financial statements as of January 1, 1991, to convert to a GAAP basis presentation for the year 1991. We will submit a report summarizing the procedures performed and the results of those procedures. This report will be issued solely for the use of the City's management; it is not to be used by any other parties because of the restricted nature of our work. Our report will also contain a paragraph indicating that, had we performed additional procedures or had we made an audit of GAAP basis financial statements for the year 1990 in accordance with generally accepted auditing standards, other matters might have come to our attention that would have been reported to you. Our fees are based on the time required by the individuals assigned to the engagement, plus direct expenses. Individual hourly rates vary according to the degree of responsibility involved and the skill required. Our billings for the services set forth in this letter will be rendered for payment on a monthly basis, so that you may readily relate our charges to the work performed. We will make every effort to keep our time to a minimum and assign the lowest hourly rate personnel to provide these services. Because the extent of the information that will be developed is not presently known, it is very difficult to estimate the total fees for this engagement. Based on the information presently available we estimate our fees for such services will be approxi- mately $5,000. As more information becomes available, if we determine we will exceed such fee estimate we will discuss this with you before completing the engagement. This engagement includes only those services specifically described in this letter. The Honorable Mayor and The City Commissioners City of Salina November 9, 1990 Page 3 Please indicate your agreement with the concepts discussed herein by signing and returning the enclosed copy of this letter. Very truly yours, Ce�ied P licAccounta Approved by: Title: Date: CITY OF SALINA Schedule of Agreed -Upon Procedures to be Performed by Kennedy and Coe 1. Assist in the identification of financial statement items necessary to prepare GAAP basis financial statements. Data related to such items will be gathered by City of Salina employees and not by Kennedy and Coe. Such data will include but not be limited to a. Information required as of January 1, 1991 (1) Inventories of fixed assets, including historical cost information (2) Trial balances of accounts receivable and deferred revenues for enterprise funds (3) Inventories of supplies, where determined to be material (4) Accrued interest receivable on certificates of deposits and U.S. Treasury securities (5) Trial balance of encumbrances by funds (6) Liability for compensated absences for enterprise funds b. Information necessary to determine materiality for consideration at December 31, 1991 (1) Taxes receivable for governmental funds (general and special revenue funds) - including property, sales, franchise, etc. (2) Accounts receivable for governmental funds for fines, fees and services (3) Liability for compensated absences for governmental funds (4) Special assessments receivable 2. We will apply the following procedures to the above items a. Information gathered as of January 1, 1991 (1) Inventories of fixed assets - Examine evidence provided by City of Salina employees of historical cost and verify physical existence on a test basis. (2) Accounts receivable and deferred revenues for enterprise funds - Confirm and/or examine subsequent/prior cash receipts to verify existence of such receivables/deferred revenues. (3) Inventories of supplies for enterprise funds - Test count and test pricing of such inventories to verify existence and valuation, if deemed material. (4) Accrued interest receivable on certificates of deposit and U.S. Treasury securities - Test calculation of accrued interest (5) Encumbrances - Determine such information is segregated from accounts payable records at December 31, 1990, in connection with the audit of the City's statutory basis financial statements (6) Liability for compensated absences for enterprise funds - Test computation of such liability balance, including wage rates used and number of hours/days accrued. b. Information necessary to determine materiality for consideration at December 31, 1991 Review such information taking into account estimated materiality levels for purpose of determining the financial information to be obtained for preparation of financial statements at December 31, 1991. I R. MICHAEL BEATTY. C.P A. MANAGING PARTNER PO. BOX 1100. SALINA, KS 876021100 OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY cCOOK GOODLAND OKLAHOMA: GREAT BEND ALVA MARYSVM1LE COLORADO: PRATT LAMAR SALINA WESTMINSTER WRAY The Honorable Mayor and The City Commissioners City of Salina Salina. Kansas KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 11 DO SALINA. KANSAS 67402-1100 913 - 825.1561 FAX 913-S25.5371 October 11. 1990 R. MICHAEL BEATTY, C.P A. PARTNER IN -CHARGE ROBERT M WILBUR. C.P.A.. PARTNER DON P. DIEDERICH. C.P. A.. PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L. HUNTER, C P.A.. PARTNER KUHTIS G. SIMMERS, C.P.A., PARTNER DALE A. HEUSZEL. C.P.A.. PARTNER SHANNON L BUCHANAN, C.P.A., PARTNER SHARON K. SMITH, C.P A.. PARTNER R. BARTON FARMER. PRINCIPAL GARY L RODGERS, JIM- CA., PRINCIPAL DAVID J. MILLS. C P.A.. PRINCIPAL RALPH E. REITZ. C.P A. METIREDI JOHN W. PODS. C.PA. (RETIRED) E. T. SHEA. C.P.A. (RETIRED) L. M. MERTZ, C.P.A. (RETIRED) PAUL A. MOTT, C.P.A. (RETIRED) ADLEY E. JOHNSON. C.P.A. IRETIRED) We propose to audit the financial statements of the City of Salina, Kansas, for the year 1990 listed on Appendix A. Our audits will be made in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Kansas Minimum Standard Audit Program and the requirements of Office of Management and Budget Circular A-128, and will include our examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In addition, supplemental information (as listed in Appendix A), presented for the purpose of additional analysis and not a required part of the basic financial statements, will be subjected to the audit procedures applied in the audit of the basic financial statements. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1990 are 1) Wastwater Grant (subject to grant award and 1990 drawdown is expected to be $150,000) and 2) Community Development Block Grant - Small Cities Program - Housing Rehabilitation. 1. The scope of our audit will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Airport Authority Firemen's Relief Association Salina Public Library It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of the foregoing audits and, upon their completion and subject to their findings, the rendering of our MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS i The Honorable Mayor and The City Commissioners City of Salina October 11, 1990 Page 2 reports. As you know, the financial statements are the responsibility of the management of the City who are primarily responsible for the data and information set forth therein, as well as for the maintenance of an appropriate internal control structure (which includes adequate accounting records and procedures to safeguard the City's assets). Accordingly, as required by generally accepted auditing standards, our procedures will include obtaining written confirmation from management concerning important representations which we will rely upon. As also required by generally accepted auditing standards, we will plan and perform our audit to obtain reasonable, but not absolute, assurance about whether the financial statements are free of material misstatement. Accordingly, any such audit is not a guarantee of the accuracy of the financial statements and is subject to the risk that errors, irregularities, or illegal acts, if they exist, might not be detected. If we become aware of any such matters during the course of our audit, we will bring them to your attention. Should you then wish us to expand our normal auditing procedures, we would be pleased to work with you to develop a separate engagement for that purpose. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates. However, our fee for this engagement will not exceed the applicable maximum fee amount shown below. Financial statements, notes and supplemental information Maximum drafted by Fee Amount A. Kennedy and Coe $26,500 B. Director of Finance of the City $24,000 If our charges at standard rates are less than the applicable fee, you will be charged the lesser amount. Billings will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. Both maximum fee amounts are based on the assumption that the City will obtain the appropriate waiver from financial statements and reports prepared in accordance with generally accepted accounting principles for the year ending December 31, 1990. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. In order to facilitate the efficient conduct of our work, we will provide the Director of Finance our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. • The Honorable Mayor and The City Commissioners City of Salina October 11, 1990 Page 3 We will be happy to discuss any aspects of this proposal with you at your convenience. If you are in agreement with the terms of this letter, please sign the original and return it for our files. The copy is for your files. We appreciate the opportunity to continue to work with you. Very truly yours, ftifiedPSiblic Accountants Accepted this tS day of (�e,e 1990 Aa�ee Mayor - City of Salinaansas City C erk'- City of Salina, Kansas CITY OF SALINA SALINA, KANSAS Appendix A FINANCIAL STATEMENTS TO BE AUDITED BY KENNEDY AND COE FOR THE YEAR ENDED DECEMBER 31, 1990 I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY RECORDING EXPENDITURES INCURRED BUT NOT PAID AND PURCHASE COMMITMENTS SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET NOTES TO FINANCIAL STATEMENTS II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE COMPOSITION OF ENDING CASH BALANCES COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT M1mCl7:wlN1:4*N STATEMENT OF INCOME STATEMENT OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENT OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS The Honorable Mayor and The City Commissioners City of Salina September 10, 1991 Page 2 It is our understanding that the funds subject to OMB Circular A-128 requirements for 1991 are 1) Community Development Block Grant - Small Cities Program - Housing Rehabilitation Grant and 2) Fair Housing Assistance Program. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. At the conclusion of our audit, we will also request certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. As required by the Single Audit Act of 1984, our audit will include tests of transactions related to federal assistance programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention, and will include such matters in the reports required for a Single Audit. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We may advise you about appropriate accounting principles and their application and may assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles, and the safeguarding of assets. The timing for the completion of this engagement will be as follows: 1. We will complete our field work and deliver a discussion draft of the report to City management on or before May 18, 1992. To accomplish this we anticipate performing interim work prior to December 31, 1991. 2. We will deliver the completed report after management reviews the discussion draft. It is expected this process will be completed so that delivery of the final reports will occur on or before May 31, 1992. We anticipate that management and employees will cooperate in any way reasonable in furnishing information, contracts, and other documents, preparing schedules and other analyses, and locating supporting documents in connection with the audit. In order to facilitate the efficient conduct of our work, we will provide the Director of Finance our requirements for audit documentation, The Honorable Mayor and The City Commissioners City of Salina September 10, 1991 Page 3 schedules and analyses, and develop a schedule for when such information is to be available. We also understand that the Director of Finance will prepare the financial statements and supplemental information, complete with applicable notes to financial statements, in a format suitable for publication. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates. However, our fee for this engagement will not exceed $28,800. In the event that unusual circumstances would arise that would cause management to request additional services in connection with the audit (such as wholesale drafting of all the financial statements or all notes to financial statements), such services will be provided at an hourly rate of $75.00. We will also provide up to two hours per calendar month, non -cumulative, of requested additional services for the purpose of consulting, answering queries, assisting with minor problem areas, and similar general assistance. Our fees for such consultation services in excess of two hours per month will be charged at an hourly rate of $75.00. Charges will be made for any out-of-pocket costs such as long-distance telephone, postage, and copy/fax charges which are not part of the audit engagement. The arrangement described in this paragraph shall be for the twelve month period ending September 30, 1992. Billings for audit and consultation services will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. We appreciate the opportunity to be of service to the City of Salina and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Certified is Accountants This letter correctly sets forth the understanding of the City of Salina, Kansas. Accepted this IC'*' day of S cw 1991. Mayor. —City of Lina, Kansas WL� Z1 W lAW City CAerk - City of Salina, Kansas '����� �l0�l �� �� DECw�u ��u xn��� �w STATE ��OF KANSAS ' CITY OFSALINA, � ` CITY CLERK'S OFFICc �QEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS December 16, 1992 KENNEDY & COE PO BOX 1100 SALINA KS 67402-1100 In regard to the audit of: CITY OF SALINA The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124" Audit Period (Year Ended): 911231 Date Received in This Office: 921216 Certified Public Accountant in Charge of Audit: DAVID J MILLS CPA ID (Cert") No.: 2682 by Very truly yours, James R. Cobler, Director Division of Accounts and Reports Chief, Municipal Accounting Section _ This copy to be attached to voucher and filed with clerk of municipality. AR -102 (10-1~97) ' R. MICHAEL BEATTY. C.P.A. MANAGING PARTNER PO, BOX 1100. SALINA. KS ETAOZ 1IGO OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GO ,DLAND OKLAHOMA: GREAT BENO ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WESTMINSTER WNAY The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas 67401 KENNEC CERTIFIED PL ` H P UNITED BUII SALINA. KAII ( IA 91. �uyNAaAA- FAX November 9. 1990 R. MICHAEL BEATTY. CP.A. PARTNE, IN{HARGE ROBERT D. WILBUR. C.P.A.. PARTNER DON P. DIEDERICH. C.P A.. PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L. HUNTER. C.P.A.. PARTNER HURTS 4 SIEMERS. CPA- PARTNER DALE A. HEDSZEL. C.P.A., PARTNER SHANNON L. BUCHANAN. C.PA. PARTNER SHARON K. SMITH. C.P.A.. PARTNER R. BMTON FARMER. PRINCIPAL GARY L. RODGERS. J.O.. C.P.A.. PRINCIPAL DAVID J. MILLS. C.P.A.. PRINCIPAL RALPH E. RUTZ. C.P.A. IRETIREDI JOHN W. PODS. C.P.A. IRETIREOI E. T. SMSA. C P.A. METIREDI L. M. MERTZ. C.P.A. IRETIREM PAUL A. MOTT. C.P.A. IRETIREDI ADLEY E. JOHNSON. C.P,A. IRETIRED) This letter sets forth in summary form certain terms, concepts and conditions relating to the proposed services enumerated below, and the nature and limitations on such services. Background Information We understand City management is considering the preparation of financial statements for the year 1991 using generally accepted accounting principles (GAAP). The City has historically presented financial statements using the cash basis of accounting, modified by recording expenditures incurred but not paid and purchase commitments (Statutory basis). Preparation of GAAP basis financial statements will require the development of certain financial information to adjust the City's financial records to a GAAP basis presentation. Examples of such financial information include, but are not limited to, the following: Taxes receivable (property, sales, franchise) Accounts receivable Interest receivable Due to/from various funds Deferred revenues Prepaid expenses Inventories Reservations of fund balances Encumbrances Inventories Fixed asset information The City is approaching the conversion to GAAP basis financial statements in a two-step process. 1. Identify modifications and additional information necessary as of January 1, 1991, MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina November 9, 1990 Page 2 2. Prepare GAAP basis financial statements for calendar year 1991. The information developed at January 1, 1991, will serve one of two purposes: a. Information necessary to prepare 1991 GAAP basis financial statements, especially as it relates to the enterprise funds. b. Information necessary to determine materiality of various items for consideration at December 31, 1991. Proposed Services by Kennedy and Coe We propose to apply the procedures described in the accompanying schedule. Because these procedures do not constitute an audit conducted in accordance with generally accepted auditing standards, we will not express an opinion on any of the items specified in the schedule. These procedures will not affect, and are in addition to, our separate engagement to audit the City's statutory basis financial statements for the year ended December 31, 1990. The purpose of such procedures is to test and verify certain adjustments that City manage- ment will need to make to the City's statutory basis financial statements as of January 1, 1991, to convert to a GAAP basis presentation for the year 1991. We will submit a report summarizing the procedures performed and the results of those procedures. This report will be issued solely for the use of the City's management; it is not to be used by any other parties because of the restricted nature of our work. Our report will also contain a paragraph indicating that, had we performed additional procedures or had we made an audit of GAAP basis financial statements for the year 1990 in accordance with generally accepted auditing standards, other matters might have come to our attention that would have been reported to you. Our fees are based on the time required by the individuals assigned to the engagement, plus direct expenses. Individual hourly rates vary according to the degree of responsibility involved and the skill required. Our billings for the services set forth in this letter will be rendered for payment on a monthly basis, so that you may readily relate our charges to the work performed. We will make every effort to keep our time to a minimum and assign the lowest hourly rate personnel to provide these services. Because the extent of the information that will be developed is not presently known, it is very difficult to estimate the total fees for this engagement. Based on the information presently available we estimate our fees for such services will be approxi- mately $5,000. As more information becomes available, if we determine we will exceed such fee estimate we will discuss this with you before completing the engagement. This engagement includes only those services specifically described in this letter. CITY OF SALINA Schedule of Agreed -Upon Procedures to be Performed by Kennedy and Coe 1. Assist in the identification of financial statement items necessary to prepare GAAP basis financial statements. Data related to such items will be gathered by City of Salina employees and not by Kennedy and Coe. Such data will include but not be limited to a. Information required as of January 1, 1991 (1) Inventories of fixed assets, including historical cost information (2) Trial balances of accounts receivable and deferred revenues for enterprise funds (3) Inventories of supplies, where determined to be material (4) Accrued interest receivable on certificates of deposits and U.S. Treasury securities (5) Trial balance of encumbrances by funds (6) Liability for compensated absences for enterprise funds b. Information necessary to determine materiality for consideration at December 31, 1991 (1) Taxes receivable for governmental funds (general and special revenue funds) - including property, sales, franchise, etc. (2) Accounts receivable for governmental funds for fines, fees and services (3) Liability for compensated absences for governmental funds (4) Special assessments receivable 2. We will apply the following procedures to the above items a. Information gathered as of January 1, 1991 (1) Inventories of fixed assets - Examine evidence provided by City of Salina employees of historical cost and verify physical existence on a test basis. (2) Accounts receivable and deferred revenues for enterprise funds - Confirm and/or examine subsequent/prior cash receipts to verify existence of such receivables/deferred revenues. (3) Inventories of supplies for enterprise funds - Test count and test pricing of such inventories to verify existence and valuation, if deemed material. (4) Accrued interest receivable on certificates of deposit and U.S. Treasury securities - Test calculation of accrued interest (5) Encumbrances - Determine such information is segregated from accounts payable records at December 31, 1990, in connection with the audit of the City's statutory basis financial statements (6) Liability for compensated absences for enterprise funds - Test computation of such liability balance, including wage rates used and number of hours/days accrued. . Information necessary to determine materiality for consideration at December 31, 1991 Review such information taking into account estimated materiality levels for purpose of determining the financial information to be obtained for preparation of financial statements at December 31, 1991. The Honorable Mayor and The City Commissioners City of Salina November 9, 1990 Page 3 Please indicate your agreement with the concepts discussed herein by signing and returning the enclosed copy of this letter. Very truly yours, jt:i��fiedP Accountants Approved by: Title:�� Date:���t�i990 a1} tA* \IL. Department of Finance and Administration Suite 206 August 13, 1991 300 West Ash Street P.O. Box 736 Salina, KS 67402-0736 Telephone (913) 827-9653 R. Cobler, Director in of Accounts and Reports [pal Accounting Section\ 253 - Landon State Office Building a, KS 66612-1248 Mr. Cobler: Pursuant to Resolution Number 90-4220, adopted on August 13, 1990, the governing body found that financial statements and Financial reports prepared in conformity with generally accepted accounting principles are not relevant to the requirements of the cash basis law and budget laws of Kansas and are of no significant value to the governing body or members of the general public of this municipality. governing body hereby requests a waiver from the following onents of generally accepted accounting principles for the I year ended December 31, 1990 in accordance with the isions of K.S.A. 75-1120a. X GAAP - prescribed financial statements X General fixed assets accounting Very truly yours, Jacqudline Shiever, CMC City Clerk /js Salina Enclosure: Resolution Number 90-4220 bAnd 9uu9991ucm cc: Dave Mills, CPA Kennedy and Coe, Certified Public Accountants 999 P. O. Box 1100 Salina, KS 67402-1100 DIRECTOR OF FINANCE ROBERT K. BILES. CPA CITY CLERK JACQUELINE B. SHIEVER. CMC MEMBER ... LEAGUE OF KANSAS MUNICIPALITIES • NATIONAL LEAGUE OF CIDES r RESOLUTION NUMBER 90-4220 A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS PURSUANT TO K.S.A. 75-1120a, FOR THE YEAR 1990. BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section I. That the Board of Commissioners hereby finds that financial statements and financial reports prepared in conformity with generally accepted accountina principles are not relevant to requirements of the cash basis and budget laws of Kansas and are of no significance and value to the governing body or the general public of the City of Salina. Section 2. That the Director of Accounts and Reports is hereby requested to waive the requirements of law relating to the preparation of financial statements and financial reports that conform to generally accepted accounting principles pursuant to K.S.A. 75-1120a. Section 3. That this Resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 13th day of August, 1990. Robert E. Frank, Mayor [SEAL] ATTEST: 1' 1 Jacqueline Shiever, City Clerk CITY. -OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME s/a/ai ":uu r. m. AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR NO. "-8 , Finance I AGENDA: I TEM ,a 1-2NO. 8 BY. Robert K. Biles *D BY: Receive and review 1990 Audit Report fromKennedy& Coe. Included in this week's information packet is a copy of the 1990 audited financial statements. The financial statements are prefaced by several reports from Kennedy & Coe which provides their opinion on the financial ; statements, internal control and compliance with Federalrequirements. As part of the audit process, the auditors are required to report areas of internal control which could be considered a material weakness. Please refer to page 4 of the Audit Report. These two areas have been discussed with the auditors. It should be noted the bank reconciliation process has occurred on a timely basis since the auditor's comments in the 1989 audit report. In addition, the auditors are required to report upon compliance with Kansas Statutes. Their comments in this area are on pages 61 and 62 of the audit report. As indicated, the first and second, quarter financial statements were published as required and subsequent statements have been published on a timely basis. The Recreation Fund exceeded expenditures due mainly to the increased activity in programs offered. Sufficient additional revenue was generated to cover these costs and maintain` Recreation's fund- balance. The 4 day pledging deficiency at First Bank & Trust Co. reflects a dating "difference in a letter from First Bank which indicated adequate securities were,pledged; and the date affixed to the pledging certificate from the third party bank, holding the securities. In effect, the third party bank did not 'date the pledging certificates as of First Bank's letter. The auditors report is a "clean" report. This means as stated on page '1, "In our opinion, the financial statements:.. present fairly, in all material respects, the cash and unencumbered cash` balances of the City of' Salina, Kansas, as of December 31, 1990, and its receipts and expenditures for the year then ended....". Representatives from Kennedy & Coe will. be in attendance to discuss their audit report. MOTION BY TO: COMMISSION ACTION SECOND BY STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS September 11, 1991 KENNEDY & COE P.O. BOX 1100 SALINA, KS 67402-1100 In regard to the audit of: CITY OF SALINA The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124" Audit Period (Year Ended): 901231 Date Received in This Office: 910911 Certified Public Accountant in Charge of Audit: DAVID J. MILLS, CPA Permit No.: 26g2 by Very truly yours, Harold F. Gibbon, Director Division of Accounts and Reports Chief, Municipal Accounting Section This copy to be attached to voucher and filed with clerk of municipality. AR -102 (10-1-87) R. MICHAEL BEATTY. C Y.A. MANAGING PARTNER P.O. BOT. 1100. SAUNA. KS 67402 11. OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODLAND OKLAHOMA: GREAT SEND ALVA MARYSVILLE COLORADO: MAI LAMAR SALINA WESTMINSTER WRAY Ms. Julie McKenna Saline County Attorney 300 West Ash Salina, KS 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 11 DO SALINA. KANSAS 674021100 813 5251551 FAX S 13-825-5371 September 10, 1991 cone R. MICHAEL BEATTY. C.P.A. PARTNERAN CHARGE ROBERT O. WILBUR. C.P.A., PARTNER DON P. DIEDERICH. C.P.A.. PARTNER ALLEN WEBBER, C.P.A., PARTNER GERALD L. HUNTER. C.P.A., PARTNER KURTIS O SIEMMS. CPA- PARTNER DALE A. HEUSZEL C.P.A., PARTNER SHANNON L. BUCHANAN, C.P.A.. PARTNER SHARON K. SMITH. C.P.A., PARTNER R. BARTON FARMER. PRINCIPAL GARY L. RODGERS. J.D.. C.P.A.. PRINCIPAL DAVID J. MILLS. CP.A.. PRINCIPAL RALPH E. REITZ. C.P.A. RETIRED JOHN W. POOS. C.P.A. RETIRE. B T. SHEA. C.P.A. (RETIRED) L. M. MERTZ. C.P.A. (RETIRED) PAUL A. MOI. C.P.A. (RETIRED) AOLEY E. JOHNSON. C.P.A. (RETIRED) Enclosed please find one copy of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1990, and our reports thereon. Very truly yours, Certified Public Accountant DJM/cic/105 Enclosure copy: ✓Mr. Robert K. Biles Director of Finance 300 West Ash Salina, Kansas 67401 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS R. MICHAEL BEATTY. C.P.A. MANAGING PARTNER P.O. BOM 1100. SAMNA. RB BTA02 I 'DO OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLEY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODUNO OKLAHOMA: GREAT SEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WESTMINSTER WRAV KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P.O. BOX 1100 SALINA. KANSAS 67402-1100 913 - 825.1561 FAX 913.825-5371 September 10, 1991 Municipal Accounting Section Department of Administration Division of Accounts and Reports Room 253, Landon State Office Bldg. Topeka, KS 66612-1248 CC2y R. MICHAEL BEATTY, C.P.A. PARTNER IF HARGE ROBERT D, WILBUR, C.P A.. PARTNER DON P. DIEDERICH, C PA. PARTNER ALLEN WESSEX. C.P.A.. PARTNER GERALD L. HUNTER. C.P.A.. PARTNER KURTIS 0. SIEMERS. CPA.. PARTNER DALE A. HEUSZEL, C.P.A.. PARTNER SHANNON L. BUCHANAN, C. P.A., PARTNER SHARON K. SMITH. C.P.A.. PARTNER R. BMTON FARMER, PRINCIPAL GARY L. RODGERS. J.O., C.P.A.. PRINCIPAL DAVID J. MILLS. CPA- PRINCIPAL RALPH E. REITZ. CPA. (RETIRED) JOHN W. MOS. C.P.A. Mi LREM E. T. SHEA. C.P.A. (RETIRED) L. M. MERTZ, C.P.A. (RETIREDI PAUL A. MOTT. C.P.A. WETIREDI ADLEY E. JOHNSON. C.P.A. (RETIRED( Enclosed please find two copies of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1990, and our reports thereon. We understand one copy of the financial statements will be forwarded to the National Clearinghouse for Single Audit Reports. Very truly yours, Certified Public Accountant DJM/cic/l05 Enclosures copy: ✓Mr. Robert K. Biles Director of Finance 300 West Ash Salina, Kansas 67401 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS R. MICHAEL BEATTY. CFA. MANAGING PARTNER P.O. BOX 1100. SALINA. KS 57.02-1 ICO OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLEY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODLAND OKLAHOMA: GREAT BEND ALYA MARYswLLE COLORADO: PRATT LAMAR SALINA WESTMINSTER WRAY KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS Kansas Department of Commerce 400 S.W. 8th Suite 500 Topeka, KS 66603-3957 UNITED BUILDING P. O. BOX 1100 SALINA. KANSAS 67402-1100 913 - 825.1561 FAX 813825-5371 September 10, 1991 (0CC-_,7D cyI JL- R. MICHAEL BEATTY. C.P.A. PAWNER IN -CHARGE ROBERT D. WILBUR. CPA., PARTNER DON P. DIEEHUNCH. C.P.A.. PARTNER ALLEN WEBBER. C.PA_ PARTNER GERALD L. HUNTER, C.P.A.. PARTNER KURTIS G. SIEMERS. C.P.A.. PARTNER DALE A. HEUSZEL. C.P.A., PARTNER SHANNON L. BUCHANAN. C.P.A.. PARTNER SHARON K. SMITH. C.P.A.. PARTNER fl. BARTON FARMER, PRINCIPAL ANY L. RODGERS. JIM- C.P.A.. PRINCIPAL DAVID J. MILLS. C.P.A., PRINCIPAL RALPH E. REITs. CJPA, METIREDI JOHN W. POOS. C.PA. )RETIRED) E. T. SHEA. C.P.A. IRETIREDI L. M. NEW.. C.PA WETIRUN PAUL A. MOTT. C.P.A. (RETIRED) ADLEY E. JOHNSON. C.P.A. (RETIRED) Enclosed please find two copies of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1990, and our reports thereon. We understand your Department is acting on behalf of the Federal Cognizant Agency for the City of Salina. Very truly yours, Certified Public Accountant DJM/cic/105 Enclosures copy: ✓ Mr. Robert K. Biles Director of Finance 300 West Ash Salina, Kansas 67401 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS August 15` 1.991 CITY OF SALINA CITY HALL P.O. BOX 736 SALINA, KS 67401 In regard to the audit of: CITY OF SALINA, fiscal year ending December 31, 1990. As provided by K.S.A. 75-1120a(c), I hereby waive the following requirements of K.S.A. 75-1120a to the extent requested by the governing body: X GAAP -PRESCRIBED FINANCIAL STATEMENTS _ GENERAL FIXED ASSETS ACCOUNTING ONLY A waiver from generally accepted accounting principles -prescribed (GAAP -prescribed) financial statements permits a municipality to prepare its financial statements on a basis of accounting which demonstrates compliance with the cash basis and budget laws of Kansas" Such a waiver automatically includes a waiver from general fixed assets accounting because fixed assets accounting is a part GAAP, Because of the importance of public disclosure of the municipality's financial condition, as well as the need for additional information by users of the financial reports, such as bond rating companies, we believe every municipality should work toward the goal of presenting its financial statements in conformity with generally accepted accounting principles. For many municipalities, this would require only minor changes to the accounting system" We urge you to work toward GAAP compliance with your auditor. If we can be of any further assistance please don't hesitate to contact the Municipal Accounting Section at 913-296~3436" Very truly yours, Harold F. Gibbon, Director Division of Accounts and Reports Chief, Municipal Accounting Section STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS August 1.5, .2.991 CITY OF SALINA CITY HALL P.O. BOX 7.36 SALIVA, k:.S 67401 In regard to the audit of: CITY OF SALINA, fiscal year ending December .31, 1990. As provided by K.S.A. 75-1120a(c), I hereb•; waive the rollowinq requirements of K.S.A. 75-1120a to the extent requested by the governina body: X GAAP -PRESCRIBED FINANCIAL STATEMENTS GENERAL FIXED ASSETS ACCOUNTING ONLY A waiver from generally accepted accounting principles -prescribed (GAAP -prescribed) financial statements permits a municipality to prepare its financial statements on a basis of accounting which demonstrates compliance with the cash basis and budget laws of Kansas. Such a waiver automatically includes a waiver from general fixed assets accounting because fixed assets accounting is a part GAAP. Because of the importance of public disclosure of the municipality's financial condition, as well as the need for additional information by users of the financial reports, such as bond rating companies, we believe every municipality should work toward the goal of, presenting its financial statements in conformity with generally accepted accounting principles. For many municipalities, this would require only minor changes to the accounting system. We urge you to work toward GAAP compliance with Your auditor. If we can be of any further assistance please don't hesitate to contact the Municipal Accounting Section at 913-296-3436. by Very truly yours, Harold F. Gibbon, Director Division of Accounts and Reports Chief, Municipal Accounting Section I AGENDA SECTION N0: g ITEM NO. 4 CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME 10/15/1990 4:00 P.M Administration (ORIGINATING DEPARTMENT: APPROVED FOR Department of Finance IAGENDA: Robert K. Biles I BY: 3 "� Resolution Number 90-4240, authorizing the Mayor to execute an agreement between the City of Salina and Kennedy and Coe, Certified Public Accountants, for an audit of City records for the year ending December 31, 1990. Kennedy and Coe has presented the City with a proposal to audit the 1990 financial statements. As you will note, two amounts are given; one if City staff prepares the financial statements, $24,000, and another if Kennedy and Coe prepares the financial statements, $26,500. Due to the price differential and the desire on our part to be directly involved in the formal financial statement presentation, we plan to put in the extra work needed to prepare the financial statements; however, due to the extra work involved, it may be better to authorize the higher amount with the understanding that staff will plan to meet the lower amount. The attached resolution has been prepared with the higher amount. We are in the process of determining the exact nature and time requirements of the additional audit work needed to upgrade our financial statement presentation to standards established by the Governmental Accounting Standards Board. This audit work would concentrate on establishing a December 31, 1990 balance sheet which will give us a good beginning point for meeting the reporting standards with the 1991 financial statements. We anticipate having those details worked out and a separate proposal available for your consideration at the November 5th Commission Meeting. Recommended action Accept the proposal from Kennedy and Coe to audit the 1990 financial statements and adopt Resolution Number 90-4240, authorizing the Mayor to sign the contract. MOTION BY TO COMMISSION ACTION SECOND BY B. MICHAEL BEATTY. CRA, MANAGING PARTNER P.O. BOA 1100. SALINA, KS 61(.3'1100 OFFICES KANSAS: SCOTT CITY ANTHONY SMRH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODLAND OKLAHOMA: GREAT BEND ALVA MARYSVILLE COLORADO: PRATT LAMAR SALINA WESTMINSTER WRAY The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 11 GO - SALINA. KANSAS 67402-1100 813 - 825-1561 FAX 813-825-5371 October 11, 1990 R. MICHAEL BEATTY. C.P.A. PARTNER IN CHARGE ROBERT D. WILBUR. C.P A.. PARTNER DON P. USICSF ICH. C P.A. PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L. HUNTER. CPA- PARTNER KURTIS G. SIEMERS. C.P.A.. PARTNER DALE A. HEUSZEL. C.P.A.. PARTNER SHANNON L. BUCHANAN. C.PA- PARTNER SHARON K. SMITH. C.P.A.. PARTNER R. BARTON FARMER. PRINCIPAL GARY L. RODGERS, J D.: CPA- PRINCIPAL DAVID J. MILLS, C.P.A.. PRINCIPAL RALPH E. REITZ. C.P.A. (RETIRED) JOHN W. PODS. CPA, MENRED) E. T. SHEA, C.P.A. (RETIREM L. M. MERTZ. C P.A. (RETIRED PAUL A. MOTT, C.P.A. (RETIRED) ADLEY E. JOHNSON. C.P.A. (RETIRED) We propose to audit the financial statements of the City of Salina, Kansas, for the year 1990 listed on Appendix A. Our audits will be made in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Kansas Minimum Standard Audit Program and the requirements of Office of Management and Budget Circular A-128, and will include our examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In addition, supplemental information (as listed in Appendix A), presented for the purpose of additional analysis and not a required part of the basic financial statements, will be subjected to the audit procedures applied in the audit of the basic financial statements. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1990 are 1) Wastwater Grant (subject to grant award and 1990 drawdown is expected to be $150,000) and 2) Community Development Block Grant - Small Cities Program - Housing Rehabilitation. The scope of our audit will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Airport Authority Firemen's Relief Association Salina Public Library It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of the foregoing audits and, upon their completion and subject to their findings, the rendering of.our MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina October 11, 1990 Page 2 reports. As you know, the financial statements are the responsibility of the management of the City who are primarily responsible for the data and information set forth therein, as well as for the maintenance of an appropriate internal control structure (which includes adequate accounting records and procedures to safeguard the City's assets). Accordingly, as required by generally accepted auditing standards, our procedures will include obtaining written confirmation from management concerning important representations which we will rely upon. As also required by generally accepted auditing standards, we will plan and perform our audit to obtain reasonable, but not absolute, assurance about whether the financial statements are free of material misstatement. Accordingly, any such audit is not a guarantee of the accuracy of the financial statements and is subject to the risk that errors, irregularities, or illegal acts, if they exist, might not be detected. If we become aware of any such matters during the course of our audit, we will bring them to your attention. Should you then wish us to expand our normal auditing procedures, we would be pleased to work with you to develop a separate engagement for that purpose. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates. However, our fee for this engagement will not exceed the applicable maximum fee amount shown below. Financial statements, notes and supplemental information Maximum drafted by Fee Amount A. Kennedy and Coe $26,500 B. Director of Finance of the City $24,000 If our charges at standard rates are less than the applicable fee, you will be charged the lesser amount. Billings will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. Both maximum fee amounts are based on the assumption that the City will obtain the appropriate waiver from financial statements and reports prepared in accordance with generally accepted accounting principles for the year ending December 31, 1990. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. In order to facilitate the efficient conduct of our work, we will provide the Director of Finance our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. The Honorable Mayor and The City Commissioners City of Salina October 11, 1990 Page 3 We will be happy to discuss any aspects of this proposal with you at your convenience. If you are in agreement with the terms of this letter, please sign the original and return it for our files. The copy is for your files. We appreciate the opportunity to continue to work with you. Very truly yours, Certified Public Accountants Accepted this LS day of 1990 Mayor - City offSalina ansas e:i �lq...._. 4:... e. City Cl. 'k - City of Salina, Kansas CITY OF SALINA SALINA, KANSAS Appendix A FINANCIAL STATEMENTS TO BE AUDITED BY KENNEDY AND COE FOR THE YEAR ENDED DECEMBER 31, 1990 I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY RECORDING EXPENDITURES INCURRED BUT NOT PAID AND PURCHASE COMMITMENTS SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET NOTES TO FINANCIAL STATEMENTS II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE COMPOSITION OF ENDING CASH BALANCES COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT BALANCE SHEET STATEMENT OF INCOME STATEMENT OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENT OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS RESOLUTION NUMBER 89-4120 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE ! CITY CLERK TO ATTEST AN AGREEMENT BETWEEN THE CITY OF SALINA AND KENNEDY AND COE, CERTIFIED PUBLIC ACCOUNTANTS, FOR AN AUDIT OF CITY RECORDS FOR THE YEAR ENDING DECEMBER 31, 1989, FOR A COST NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS (;25,000). Kansas: BE IT RESOLVED by the Governing Body of the City of Salina, Section I. That the Mayor and City Clerk of the City of Salina are hereby authorized to execute an agreement between the City of Salina and Kennedy and Coe, Certified Public Accountants for an audit of city records for the year ending December 31, 1989, at a cost not to exceed Twenty-five Thousand Dollars ($25,000). Adopted by the Board of Commissioners and signed by the Mayor this 11th day of September, 1989, J ph Warnerr,, Mayor [SEAL] ATTEST: Jacque) ne Shiever, City Clerk STATE OF KANSAS ) ) SS COUNTY OF SALINE ) I, Jacqueline Shiever, City Clerk of the City of Salina, Kansas, do hereby certify that Resolution Number 89-4120 was adopted by the Board of I Commissioners at its regular meeting on September it, 1989, and that the above and foregoing is a true and correct copy of the original on file in my office. [SEAL] WITNESS my hand and official seal this 12th day of September, 1989. -� w.�w-e_ Jacqu line Shiever, City Clerk R. MICHAEL Sul". C.P.A- MANAS AS PARTNER P.O. BOX IISO. MINA. RE 574021100 OFFICES KANSAS: ANTHONY COM CONCORDIA OMDEN CRY OOOOLANO GREAT SEND MARVSv GATT MINA SCOTT CRY SMITH CENTER WICHITA NEBRASKA: MCCOOK OKLAHOMA: M.VA COLORADO: UMM WESTMINSTER The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 11 OO SALINA. KANSAS 67402-1100 013 - 826-1661 September 26, 1988 P. LVCKAEL BEATTY. C.P.A. PARTNDIJNCMAROE ROBERT D. WILIOR. C.P.A.. PARTNER AOLEV C IOHNSON. C.P.A_ PARTNER SON P. OMOOIKN. C.P.A.. PARTNER PAUL A. NOT. C.P.A.. PARTNER ALLEN WEARER. C.P.A.. PARTNER GERALD L HURTER. C.P.A., PARTNER NNRRf O. NERMS. C.P.A.. PARTNER DM A. NEUSZEL. C.P.A., PARTNER RALPH E. RERz C.P.A. 01ETIR10I JOHN W. P006. C.P.A. DIET MEW E. T. SNEA. C.P.A. AETIREDI L. M. MERTE. C.P.A. AETNEXA We propose to audit the financial statements of the City of Salina, Kansas, for the year 1988 listed on Appendix A. Our audits will be conducted in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Minimum Standard Audit Program approved by the State Municipal Accounting Board, and the requirements of Office of Management and Budget Circular A-128 and will include our examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In addition, supplemental information (as listed in Appendix A), presented for the purpose of additional analysis and not a required part of the basic financial statements, will be subjected to the audit procedures applied in the audit of the basic financial statements. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1988 are (1) Community Development Block Grants — Small Cities Program — Housing Rehabilitation Grants and (2) Fair Housing Assistance Program. The scope of our audit will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina — Saline County Board of Health Saline County — City Building Authority Salina Recreation Commission (for the period January 1, 1988, to September 30, 1988)' Salina Airport Authority Firemen's Relief Association It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of the foregoing audits and, upon their completion and subject to their findings, the rendering of our MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina September 26, 1988 Page 2 reports. As you know, the financial statements are the responsibility of the management of the City who are primarily responsible for the data and information set forth therein, as well as for the maintenance of an appropriate internal control structure (which includes adequate accounting records and procedures to safeguard the City's assets). Accordingly, as required by generally accepted auditing standards, our procedures will include obtaining written confirmation from management concerning important representations which we will rely upon. An audit made in accordance with generally accepted auditing standards is subject to certain limitations and the inherent risk that errors or irregularities, if they exist, will not be detected. However, if, during the course of our audits, we become aware of such errors or irregularities, we will bring them to your attention. Should you then wish us to expand our normal auditing procedures, we will work with you on developing a separate engagement for that purpose. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates for municipalities. However, our fee for this engagement will not exceed $25,000. If our charges at standard rates are less than this maximum fee, you will be charged the lesser amount. Billings will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. The maximum fee is based on the assumption that the City will obtain the appropriate waiver from financial statements and reports prepared in accordance with generally accepted accounting principles for the year ending December 31, 1988. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. The timing for the completion of this engagement will be as follows: 1. We will complete our field work on or before May 1, 1989. To accomplish this we anticipate performing interim work prior to December 31, 1988. 2. We will deliver a discussion draft of the report to City management on or before May 15, 1989. 3. We will deliver the completed report after management reviews the discussion draft and we have responded to any questions. It is expected that this process will be completed so that delivery of the final reports will occur on or before May 26, 1989. In order to facilitate the efficient conduct of our work and to meet the scheduled delivery date, we will provide your personnel with our requirements The Honorable Mayor and The City Commissioners City of Salina September 26, 1988 Page 3 for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. We will be happy to discuss any aspects of this proposal with you at your convenience. If you are in agreement with the terms of this letter, please sign the original and return it for our files. The copy is for your files. We appreciate the opportunity to work with you and to continue our pleasant association. Very truly yours, Certifie blic Accountant Accepted this JZIday of .O�.�o��, 1988. Milyor City of Sa na, Kansas City Clerk — City of Salina, Kansas L CITY OF SALINA SALINA, KANSAS Appendix A FINANCIAL STATEMENTS TO BE AUDITED BY KENNEDY AND COE FOR THE YEAR ENDED DECEMBER 31, 1988 I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY RECORDING ENCUMBRANCES SUMMARY STATEMENT OF RECEIPTS, E COMPARISON OF CASH BALANCES WITH STATEMENT OF RECEIPTS, EXPEND BALANCES COMPARED WITH BUDGET NOTES TO FINANCIAL STATEMENTS , AND BALANCES BY FUNDS AND , AND CHANGES IN UNENCUMBERED CASH II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE COMPOSITION OF ENDING CASH BALANCES COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES SEPARATE FINANCIAL STATEMENTS — WATER AND SEWERAGE DEPARTMENT BALANCE SHEET STATEMENT OF INCOME STATEMENT OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENT OF CHANGES IN FINANCIAL POSITION NOTES TO FINANCIAL STATEMENTS R. MICHAEL BEATTY. C.P.A. MANAGING PARTNER PO, BOX 1 I= SALINA, NS 67402 I IOD OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GARDEN CITY MCCOOK GOODUNO OKLAHOMA: GREAT BEND ALYA MARYSVILLE COLORADO: PRATT LAMAR SALINA WESTMINSTER The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 11 OO SALINA. KANSAS 67402-1100 913 - 825.1561 September 26, 1988 R. MICHAEL BEATTY. C.P.A. PARTNER-IMCHAROE ROBERT D. WILBUR. C PA.. PARTNER ADLEY E. JOHNSON. C P A. PARTNER DON P. DIEDERICH, C.P.A.. PARTNER PAULA MOTT. C.P A., PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L NUNTER, C P A. PARTNER KURTIS O. SIMMERS. C.P.A.. PARTNER DALE A. HEUSZEL, C.P.A.. PARTNER RALPH E. REITZ, C.P.A. (RETIRED) JOHN W, MOS. C.P A. (RETIRED) E. T. SHEA. GPA (RETIRED) L. M. HERTZ. CP. A. IRETWEDI We propose to audit the financial statements of the City of Salina, Kansas, for the year 1988 listed on Appendix AR Our audits will be conducted in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Minimum Standard Audit Program approved by the State Municipal Accounting Board, and the requirements of Office of Management and Budget Circular A-128 and will include our examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In addition, supplemental information (as listed in Appendix A), presented for the purpose of additional analysis and not a required part of the basic financial statements, will be subjected to the audit procedures applied in the audit of the basic financial statements. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1988 are (1) Community Development Block Grants - Small Cities Program - Housing Rehabilitation Grants and (2) Fair Housing Assistance Program. The scope of our audit will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Recreation Commission (for the period January 1, 1988, to September 30, 1988) Salina Airport Authority Firemen's Relief Association It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of the foregoing audits and, upon their completion and subject to their findings, the rendering of our MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina September 26, 1988 Page 2 reports. As you know, the financial statements are the responsibility of the management of the City who are primarily responsible for the data and information set forth therein, as well as for the maintenance of an appropriate internal control structure (which includes adequate accounting records and procedures to safeguard the City's assets). Accordingly, as required by generally accepted auditing standards, our procedures will include obtaining written confirmation from management concerning important representations which we will rely upon. An audit made in accordance with generally accepted auditing standards is subject to certain limitations and the inherent risk that errors or irregularities, if they exist, will not be detected. However, if, during the course of our audits, we become aware of such errors or irregularities, we will bring them to your attention. Should you then wish us to expand our normal auditing procedures, we will work with you on developing a separate engagement for that purpose. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates for municipalities. However, our fee for this engagement will not exceed $25,000. If our charges at standard rates are less than this maximum fee, you will be charged the lesser amount. Billings will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. The maximum fee is based on the assumption that the City will obtain the appropriate waiver from financial statements and reports prepared in accordance with generally accepted accounting principles for the year ending December 31, 1988. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. The timing for the completion of this engagement will be as follows: 1. We will complete our field work on or before May 1, 1989. To accomplish this we anticipate performing interim work prior to December 31, 1988. 2. We will deliver a discussion draft of the report to City management on or before May 15, 1989. 3. We will deliver the completed report after management reviews the discussion draft and we have responded to any questions. It is expected that this process will be completed so that delivery of the final reports will occur on or before May 26, 1989. In order to facilitate the efficient conduct of our work and to meet the scheduled delivery date, we will provide your personnel with our requirements The Honorable Mayor and The City Commissioners City of Salina September 26, 1988 Page 3 for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. We will be happy to discuss any aspects of this proposal with you at your convenience. If you are in agreement with the terms of this letter, please sign the original and return it for our files. The copy is for your files. We appreciate the opportunity to work with you and to continue our pleasant association. Very truly yours, Certifiedc'Public Accountant r' Accepted this / 7' day of /� /; /, �:, 1988. yor City of Sa na, Kansas City Clerk — City of Salina, Kansas CITY OF SALINA SALINA, KANSAS Appendix A FINANCIAL STATEMENTS TO BE AUDITED BY KENNEDY AND COE FOR THE YEAR ENDED DECEMBER 31, 1988 I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY RECORDING ENCUMBRANCES SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET NOTES TO FINANCIAL STATEMENTS II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE COMPOSITION OF ENDING CASH BALANCES COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES SEPARATE FINANCIAL STATEMENTS — WATER AND SEWERAGE DEPARTMENT BALANCE SHEET STATEMENT OF INCOME STATEMENT OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENT OF CHANGES IN FINANCIAL POSITION NOTES TO FINANCIAL STATEMENTS RESOLUTION NUMBER 88-4018 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF SALINA AND KENNEDY AND COE, CERTIFIED PUBLIC ACCOUNTANTS FOR AN AUDIT OF CITY RECORDS FOR THE YEAR ENDING DECEMBER 31, 1988. Kansas: BE IT RESOLVED by the Governing Body of the City of Salina, Section 1. That the Mayor and City Clerk of the City of Salina are hereby authorized to execute an agreement between the City of Salina and Kennedy and Coe, Certified Public Accountants for an audit of city records for the year ending December 31, 1988, at a cost not to exceed Twenty-five Thousand Dollars ($25,000). Adopted by the Board of Commissioners and signed by the Mayor this 17th day of October, 1988. ?ydnySoderber ,Mayor [SEAL] ATTEST: Robert K. B es, City Clerk CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME 10/17/1988 7:0P.M. L AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR NO. 8 City Clerk AGENDA: ITEM NO. 7 BY: Robert K. Biles BY.:. ,vvQ Resolution Number 88-4018, authorizing the Mayor to sign an agreement with Kennedy and Coe, Certified Public Accountants, for an audit of city records for the year ending December 31 1988 for a cost of not to exceed $25,000. The attached agreement with Kennedy and Coe is the result of Cit the auditors discussing several aspects of the recently completed `1 Concerns hadbeenraised regarding the timing of the audit and tt the division of work between City staff and the auditor's staff. P the bottom of page 2 of the agreement, the accelerated timetable c completion of fieldwork on or before May 1, 1989. The agreement, delivery of the final audit report on or before May 26, 1989. This allow ample time for utilizing this information in the 1990 budget p Immediately following the completion dates listed, the agreement me Citystaff will be expected to prepare several schedules for the au became more heavily involved in preparing these schedules for the It is our :intention to prepare as. many as last year, if not more. schedule prepared internally serves to reduce the amount of work be; performed by our auditors,thereby reducing our fees. City staff recommends adopting Resolution Number 88-4018. COMMISSION ACTION MOTION BY SECOND BY F of e,at wnicn must 'i t I RESOLUTION NUMBER 88-4018 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF SALINA AND KENNEDY AND COE, CERTIFIED PUBLIC ACCOUNTANTS FOR AN AUDIT OF CITY RECORDS FOR THE YEAR ENDING DECEMBER 31, 1988. BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Mayor and City Clerk of the City of Salina are hereby authorized to execute an agreement between the City of Salina and Kennedy and Coe, Certified Public Accountants for an audit of city records for the year ending December 31, 1988, at a cost not to exceed Twenty-five Thousand Dollars ($25,000). Adopted by the Board of Commissioners and signed by the Mayor this 17th day of October, 1988. #ydnaderber9. Mayor [SEAL] ATTEST: Robert K. B es, City Clerk Office of City Clerk Room 206 300 West Ash Street P.O Box 736 June 16, 1989 Salina, KS 67402-0736 Telephone 1913) 827-9653 Kennedy and Coe Certified Public Accountants P.O. Box 1100 Salina, Kansas 67402-1100 Gentlemen: - In connection with your audit of (a) the financial statements of the various fund and account groups of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the cash and unencumbered cash balances at December 31, 1988, and receipts and expenditures for the year then ended in accordance with the method of accounting described in the financial statements, and (b) the financial statements of the Water and Sewerage Department of the City of Salina for the purpose of expressing an opinion as to whether the financial state— ments present fairly, in all material respects, the finan— cial position and results of operations and changes in financial position of the Department in conformity with generally accepted accounting principles for the year ended December 31, 1988, we confirm, to the best of our knowledge and belief, the follow— ing representations made to you during your audit. 1. We understand that we are responsible for the fair presen— tation in the financial statements of a. the cash and unencumbered cash balances and receipts and expenditures in accordance with the method of accounting described in the financial statements, and b. the financial position, results of operations, and changes in financial position in conformity with CITV CLERK generally accepted accounting principles with regard DIRECTOR OF FINANCE to the financial statements of the Water and Sewerage ROBERT K. BILES, CPA Department. PERSONNEL DIRECTOR M.E. ABBOTT MEMBER... LEAGUE OFRA,wIS MUNICIPALITIES • NATIONAL LEAGOEOFCITIES l Kennedy and Coe Certified Public Accountants June 16, 1989 Page 2 2. We have made available to you all financial records and related data, including all minutes of the City Commissioners. 3. We are not aware of any a. Irregularities involving management or employees who have significant roles in the.system of internal accounting control. b. Irregularities involving other employees that could have a material effect on the financial statements. c. Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the financial statements. 4. There are no related parties for which transactions should be disclosed in the financial statements, except for certain services provided to the Water and Sewerage Department by the City departments. 5. We have complied, to the best of our knowledge, with all aspects of regulations, contractual agreements, and bond ordinances, that would have a material effect on the finan— cial statements in the event of noncompliance. 6. We have complied, to the best of our knowledge, with all applicable Kansas Statutes except as disclosed in the financial statements, which in the event of noncompliance might require disclosure in the financial statements in accordance with requirements of the State Municipal Accounting Board. 7. We are not aware of any material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5. 8. There are no unasserted claims or assessments that the City Attorney has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5. 9. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. Kennedy and Coe Certified Public Accountants June 16, 1989 Page 3 The adjusting journal entries as of December 31, 1988, which have been proposed by you, are approved by us and will be recorded by us in our accounting records. 10. All Federal financial assistance recieved by the City has been identified and is included in the Schedule of Federal Financial Assistance accompanying the financial statements. 11. No events have occurred subsequent .to December 31, 1988, which, had they been known at that date, 'would have required adjustment to the financial statements, except for the issue of $3,000,000 of Combined Water and Sewage System Revenue Bonds, dated as of December 1, 1988. Respectfully submitted, Dennis M. Kiss , City Manager obetiles, Director of Finance 71lQ� M. E. Abbott, City Treasurer XLVIII-26 d P Generally Accepted Accounting Principles - Waiver of Requirements [NOTE - The following article is a reprint, except for minor editing, of a June 1982 article. The purpose of the reprint is to make the information more accessible to municipalities that chooselto use the waiver --some municipalities no longer have the June 1982 Bulletin available. -Ed.1 K.S.A. 75-1120a requires municipalities, as defined by K.S.A. 75-1117, to use generally accepted accounting principles (GAAP) in the preparation of its financial statements and reports. However, the governing body of the municipality, except for a community college, may request the Director of Accounts and Reports to waive the requirements to use GAAP to the extent requested. Prior to requesting the waiver, the governing body shall annually, by resolution, make a finding that financial statements and financial reports are,nrot relevant to requirements of the cash basis and budget laws of Kansas and are, of no significant vglue to the governing body or the general public of the municipality. No governing body of a municipality shall request the waiver if the provisions of revenue bond ordinances or other ordinances or .resolutions require financial statements and financial reports to be prepared in conformity with generally accepted accounting principles. The request for waiver can be made to the Director by submitting a copy of the resolution or by a letter on the letterhead of the municipality. The request for a waiver, must specify the fiscal year end and cannot be fo�multiple years. If by letter, we recommend it be in the following form: (Use Official Letterhead of Municipality). -date- James R. Cobler, Director Division of Accounts and Reports Municipal Accounting Section Roorp 253 - Landon State Office Building Topeka, Kansas 66612-1248 Dear Sir: Pursuant to resolution passed at its meeting on , 19_, the governing body found that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to the requirements of the cash basis law and budget laws of Kansas and are of no significant value to the governing body or members of the general public of this municipality. The governing body hereby requests a waiver. from the following components of generally accepted accounting principles for the fiscal year ended in accordance with the provisions of K.S.A. 75-1120a. (check one.or both) GAAP -prescribed financial statements General fixed assets accounting Clerk of Governing Body 59= i Ii Office of City Clerk Room 206 300 West Ash Street P.O. Box 736 Salina, KS 67402-0736 June 19, 1989 Telephone 19131 827-9653 James R. Cobler, Director Division of Accounts and Reports Municipal Accounting Section Room 253 - Landon State Office Building Topeka, KS 66612-1248 Dear Mr. Cobler: Pursuant to Resolution Number 88-3992, adopted on August 22, 1988, the governing body found that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to the requirements of the cash basis law and budget laws of Kansas and are of no significant value to the governing body or members of the general public of this municipality. The governing body hereby requests a waiver from the following components of generally accepted accounting principles for the fiscal year ended December 31, 1988 in accordance with the provisions of K.S.A. 75-1120a. GAAP - prescribed financial statements General fixed assets accounting Very truly yours, V d-,�. k, . v Jacqueline Shiever City Clerk JS/js Enclosure CC: Kennedy and Coe, P. 0. Box 1100, Salina, KS 67402-1100 CITY CLERK DIRECR)R OF FINANCE ROBERT K. BILES. CPA PERSONNEL DIRECTOR M.E. ABBOTT MEMBER... LEAGUE OF KANSAS MUNICIPALITIES • NATIONAL LEAGUE OF CITIES RESOLUTION NUMBER 88-3992 A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS PURSUANT TO K.S.A. 75-1120a, FOR THE YEAR 1988. BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Board of Commissioners hereby finds that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to requirements of the cash basis and budget laws of Kansas and are of no significance and value to the governing body or the general public of the City of Salina. Section 2. That the Director of Accounts and Reports is hereby requested to waive the requirements of law relating to the preparation of financial statements and financial reports that conform to generally accepted accounting principles pursuant to K.S.A. 75-1120a. Section 3. and after its adoption. That this Resolution shall be in full force and effect from Adopted by the Board of Commissioners and signed by the Mayor this 22nd day of August, 1988. Sydney Soderberg, Mayor [SEALI ATTEST: ���z�cti� Robert K. Biles, City Clerk Office of City Clerk Room 206 300 West Ash Street P.O. Boz 736 Salina, KS 67402-0736 June 19, 1989 Telephone (913) 827-9653 James R. Cobler, Director Division of Accounts and Reports Municipal Accounting Section Room 253 - Landon State Office Building Topeka, KS 66612-1248 Dear Mr. Cobler: Pursuant to Resolution Number 88-3992, adopted on August 22, 1988, the governing body found that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to the requirements of the cash basis law and budget laws of Kansas and are of no significant value to the governing body or members of the general public of this municipality. The governing body hereby requests a waiver from the following components of generally accepted accounting principles for the fiscal year ended December 31, 1988 in accordance with the provisions of K.S.A. 75-1120a. GAAP - prescribed financial statements General fixed assets accounting Very truly yours, Jacqueline Shiever City Clerk JS/js Enclosure CC: Kennedy and Coe, P. O. Box 1100, Salina, KS 67402-1100 CrrY CLERK DIRECTOR OF FINANCE ROBERT K. BILES. CPA PERSONNEL DIRECIOR M.E. ABBOTT MEMBER... LEAGUE OF KANSAS MUNICIPALITIES • NATIONAL LEAGUE OFCTTTES RESOLUTION NUMBER 88-3992 A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS PURSUANT TO K.S.A. 75-1120a, FOR THE YEAR 1988. BE 1T RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Board of Commissioners hereby finds that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to requirements of the cash basis and budget laws of Kansas and are of no significance and value to the governing body or the general public of the City of Salina. Section 2. That the Director of Accounts and Reports is hereby requested to waive the requirements of law relating to the preparation of financial statements and financial reports that conform to generally accepted Iaccounting principles pursuant to K.S.A. 75-1120a. Section 3. That this Resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 22nd day of August, 1988. [SEAL1 Sydney Soderberg, Mayor ATTEST: K. Biles, City Clerk STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS June 27, 1989 CITY OF SALTNA CITY HALL P.O. BOX 736 SALINA, KS 674()1 In regard to the audit of: CITY OF SALINA As requestedv and as provided by k"S"A, 75~1120a(c), I hereby waive the following requirements of subsection (a) to the extent requested by the governing body for the fiscal year ended December 31, 1988: X� GAAP PRESCRIBED FINANCIAL STATEMENTS _ GENERAL FIXED ASSETS ACCOUNTING ONLY Very truly yours, James R. Cobler, Director Division of Accounts and Reports by STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS August 15, 1989 KENNEDY & COE P.O. BOX 1100 SALINA, KS 67402-1100 In regard to the audit of: CITY OF SALINA The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124" Audit Period (Year Ended): 881231 Date Received in This Office: 890815 Certified Public Accountant in Charge of Audit: DAVID J. MILLS, CPA Permit No.: 2682 Very truly yours, James R. Cobler, Director Division of Accounts and Reports by Chief, Municipal Accounting Section This copy to be attached to voucher and filed with clerk of municipality AR -102 (10-1-87) R. MICHAEL BEATTY. C.PA MANAGING PARTNER P.O. BOR 1100. BKINA RB 87602.1 IOD OFFICES KANSAS: ANTHOW COLEY CONCOROA BARDEN CRY GOODLAND GREAT BEND NAWSVIUL MATT SAUNA SCOTT OTY SMITH CENTER WICWTA NEBRASKA: MCCOOR OKLAHOMA: ALMA COLORADO: LAWN WESTMINSTER The Honorable and The City City of Salina Salina, Kansas Mayor Commissioners 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. SOK 1 I DO SALINA, KANSAS 67402.1100 913-825-1561 September 15, RECEIVED SEP 1 7 1987 CITE MANAGER'S OFFICE R. MCHAEL BEATTY. GP.A, PARTHMN{HAROE ROBERT D. WOIIUR. C.PA., PARTNER ADLEY E. JOHNSON. C.P.A., PARTNER DON P. DIEDEMCH. C.P.A.. PARTNER PAUL A. NOTT. C.P.A.. PARTNER ALLEN WEIRDER. C.P.A.. PARTNER GERALD L HUNTER. C.P.A., PARTNER KURTIS O. EMBERS. C.P.A.. PARTNER 24E A. HEUSKL. C.P.A., PARTNER RvH E. RErc2. C.P.A OIETwEO JO N W. POOS. C.P.A. wETIREOI E. . BHEA. C.P.A. WETMM L . HERTZ. C.P.A. U!"IREO We propose to make examinations of the financial statements of the City of Salina, Kansas for the year 1987 listed on Appendix A. Our examinations will be made in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Minimum Standard Audit Program approved by the State Municipal Accounting Board, and the requirements of Office of Management and Budget Circular A-128 and will include tests of accounting records and such other auditing procedures as we consider necessary under the circumstances. In addition, supplemental information (as listed in Appendix A), presented for the purpose of additional analysis and not a required part of the basic financial statements, will be subjected to the audit procedures applied in the examination of the basic financial statements. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1987 are Community Development Block Grants - Small Cities Program - Economic Development Loan Programs and Community Improvements. The scope of our examination will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Recreation Commission Salina Airport Authority Firemen's Relief Association It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of examination of the financial statements of the City of Salina for the year 1987, and upon completion and subject to our findings, the expression of opinions on such financial statements. An examination made in accordance with generally accepted auditing standards is subject to certain limitations and the inherent risk that errors or irregularities, if they exist, will not be detected. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICESECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina September 15, 1987 Page 2 However, if, during the course of our examination, we become aware of such errors or irregularities, we will bring them to your attention. Should you then wish us to expand our normal auditing procedures, we will work with you on developing a separate engagement for that purpose. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates for municipalities. However, our fee for this engagement will not exceed $25,000. Billings will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. The maximum fee is based on the assumption that the City will obtain the appropriate waiver from financial statements and reports prepared in accordance with generally accepted accounting principles for the year ending December 31, 1987. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. In order to facilitate the efficient conduct of our work, we will provide your personnel with our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. We will be happy to discuss any aspects of this proposal with you at your convenience. If you are in agreement with the terms of this letter, please sign one copy and return it for our files. We appreciate the opportunity to work with you and to continue our pleasant association. Very truly yours, itea. \.•duE/ Certified Public Accountants Accepted this 2. day of 1987 Mayor - City of Salina, Kansas City Clerk - City of Salina, Kansas CITY OF SALINA SALINA, KANSAS APPENDIX A FINANCIAL STATEMENTS TO BE EXAMINED BY KENNEDY AND COE FOR THE YEAR ENDED DECEMBER 31, 1987 I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY RECORDING ENCUMBRANCES SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET NOTES TO FINANCIAL STATEMENTS II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE SCHEDULE OF INDEBTEDNESS COMPOSITION OF ENDING CASH BALANCES COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO AUTHORIZATIONS SCHEDULE OF FEDERAL FINANCIAL AWARDS III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT BALANCE SHEET STATEMENT OF INCOME STATEMENT OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENT OF CHANGES IN FINANCIAL POSITION NOTES TO FINANCIAL STATEMENTS STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS August 4, 1988 KENNEDY B COE P.O. SOX 1100 SALINA, KS 67402-1100 In regard to the audit of[ CITY OF SALINA The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 79-1124. Audit Period (Year Ended): 871231 Date Received in This Offices 880802 Certified Public Accountant in Charge of Audits DAVID J. MILLS, CPA Permit No.s 2682 Very truly yours, James R. Cobler, Director Division of Accounts and Reports by Chief, Municipal Accounting Section This copy for audit firm's files. AR -102 (10-1-87) Office of City Clerk Room 206 300 West Ash Street P.O. Box 736 Salina, KS 67402-0736 Telephone (913) 827-9653 CITY CLERK DIRECTOR OF FINANCE ROBERT K. BILES, CPA PERSONNELDIRECIOR M.E. ABBOTT July 20, 1988 Kennedy and Coe Certified Public Accountants P. O. Box 1100 Salina, KS 67402-1100 Gentlemen: You have asked me to respond to the 1987 Financial Statements and the Community Development Block your comments on Page 11 in Audit Report as they relate to Grant/Small Cities Program. The first two findings relate to the timely submission of Quarterly Progress and Financial Reports in 1987. In response to your findings, we will revise our internal procedures in order to prepare and submit the Quarterly Progress and Financial Report on a more timely basis. However, it should be noted that the City is dependent on the loan recipients to provide financial data and the data and receipts can not always be gathered in a timely manner. KDOC did not set up a quarterly reporting program or make up Quarterly Progress and Financial Reports until the 1st Quarter of 1987. Therefore the first Quarterly Reports for Grant Numbers 86 -BF -181 and 85 -BF -280 were submitted 3/31/87, the first time the reporting forms were available or required. The third finding states grant funds loaned to the program recipient did not appear to have been spent within three days of receipt. In a July 13 meeting with Kansas Department of Commerce officials, this concern w history of Grant Number 85 -BF -280 program recipient had contributed own funds to the approved project to the recipient by the program w of the expenditures previously ma Very truly yours, Robert K. Biles City Clerk and Director of Finance RKB/js as addressed. In reviewing the it was determined that the approximately $2,000,000 of its and that the $395,000 loaned as used to reimburse a portion de by the recipient. MEMBER... KANSAS LEAGUE OFMUNICIPALRIES • NATIONAL LEAGUE OF CRIES STATE OF KANSAS R DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS MIKE HAYDEN Governor JAMES R. COBLER Director of Accounts and Reports December 14, 1987 Robert K. Biles City Clerk 300 West Ash P.O. Box 736 Salina; KS 67401 Landon State Office Building Topeka. Kansas 66612.1220 (913) 296.2311 As you have requested, and as provided by K.S.A. 75-1120a(c), I hereby waive the requirements of subsection (a) to the extent requested by the governing body for the fiscal year ended December 31, 1987 Very truly yours, James R. Cobler, Director Division of Accounts and Reports JRC:WE:rh TO: Dennis Kissinger, City Manager FROM: Robert K. Biles, City Clerk and Director of Finance SUBJECT: Auditor's comments in 1987 Audit Report DATE: August 4, 1988 As you requested, I have reviewed the comments prepared by our auditors, Kennedy and Coe, which came to their attention during the 1987 audit. These comments may be found on pages 11 and 37 of the audit report and in the Letter to Management. The findings on page 11 relate to the Community Development Block Grant / Small Cities Program. Each finding is discussed in a July 20, 1988 letter we sent to Kennedy and Coe for inclusion in the auditor's report which they transmitted to the Department of Commerce. Please find a copy of that letter attached. Note 8 to the Financial Statements list two violations. The first violation concerns a budget law violation in the Golf Course of $2,365.51. The actual 1987 activity for the Golf Course is described on pages 21 and 22. Please note that actual revenues exceeded the budget by $67,535.22. Having had similar circumstances and comments in the prior years audit, the 1988 Golf Course budget was enlarged to allow for increased play. Thus, we feel this should be our last budget violation at the Golf Course. The second violation states we did not maintain the depository security required by law during October, 1987. This situation occurred when we received our proceeds from the 1987 Water Revenue Bonds and was corrected within a few days. We will continue to monitor the level of depository security pledged by each financial institution to make sure it meets statutory requirements. For 1988, we do anticipate exceeding our budget in the Bond and Interest Fund due to the structuring of the Downtown Redevelopment Bond issue of 1987. We also anticipate revenues collected to exceed the budget. Sufficient cash will be on hand to meet our bond requirements. The Letter to Management discusses various aspects of internal control with recommendations from our auditors. Improve cash handling procedures Our current procedures have Lee Gallion totaling cash receipt documents and Judy Labbe separately counting the cash received. Ms. Labbe compares her total to Mrs. Gallion's adding machine tape of receipts and reconciles any differences. Once reconciled, the deposit slip is prepared. Under these procedures, the accounting and cash functions are separated maintaining the desired internal control. Dennis Kissinger Memo Page 2 Eliminate duplicate approval of purchases Proposed payroll system changes During the 1987 audit, the auditors and I discussed several features which might be available in software packages currently on the market. One feature was the decentralized data entry of the semimonthly payroll hours. By using the controls specified by the auditors with such a feature, we could streamline the payroll process while maintaining strong controls over the process. Our Data Processing staff will be evaluating whether our current payroll software can be modified in such a manner. Eliminate cash receipt procedure In discussing this with Kathleen, she felt the small amount of time (20 minutes per week) spent reconciling the receipts with the accounting records made the accounting records more accurate and thus was worth the effort. We will continue to perform the cash receipt reconciliation procedure while keeping the auditor's comment in mind. Change signature card - We are in the process of making the recommended change. Monitor retirement system deposits The late payments and subsequent penalties on KPERS and KP&F deposits occurred in the first two quarters of 1987. Employees transferring from one department to another department were not entered correctly. As a result, the quarterly information used to prepare the KPERS and KPSF deposits were incorrect and required reconciliation before the quarterly reports could be submitted. Data entry procedures were changed in the third quarter to prevent similar errors from occurring. Attachment: Letter to Management Kennedy and Coe letter 7/20/1988 I agree with this particular comment; however, before implementing this new procedure, the preparation of purchase orders should be accomplished earlier in the accounts payable process to allow for my review. Proposed payroll system changes During the 1987 audit, the auditors and I discussed several features which might be available in software packages currently on the market. One feature was the decentralized data entry of the semimonthly payroll hours. By using the controls specified by the auditors with such a feature, we could streamline the payroll process while maintaining strong controls over the process. Our Data Processing staff will be evaluating whether our current payroll software can be modified in such a manner. Eliminate cash receipt procedure In discussing this with Kathleen, she felt the small amount of time (20 minutes per week) spent reconciling the receipts with the accounting records made the accounting records more accurate and thus was worth the effort. We will continue to perform the cash receipt reconciliation procedure while keeping the auditor's comment in mind. Change signature card - We are in the process of making the recommended change. Monitor retirement system deposits The late payments and subsequent penalties on KPERS and KP&F deposits occurred in the first two quarters of 1987. Employees transferring from one department to another department were not entered correctly. As a result, the quarterly information used to prepare the KPERS and KPSF deposits were incorrect and required reconciliation before the quarterly reports could be submitted. Data entry procedures were changed in the third quarter to prevent similar errors from occurring. Attachment: Letter to Management Kennedy and Coe letter 7/20/1988 Mr. Dennis Kissinger City Manager City of Salina P.O. Box 736 Salina, KS 67402-0736 Dear Mr. Kissinger: In connection with our examination of the financial statements of the City of Salina for the year ended December 31, 1987, we reviewed various administrative and financial procedures and controls of the City but did not make a comprehensive review for the purpose of submitting detailed recommendations. As a result of our review, we noted certain areas not involving material weaknesses in internal accounting control where financial matters should be considered and procedures improved. This memorandum summarizes our comments and suggestions. We have already discussed our comments and suggestions orally with Mr. Bob Biles, City Clerk and Director of Finance; we will be pleased to discuss them further. Respectfully submitted, Certified' ublic Accountants I FILED `88 AGG 8 PM z or C1IY OF SAMNA elrY CLERK. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS KENNEDY AND COE R. WCNMANAG. BLATTY. e.Pw CERTIFIED PUBLIC ACCOUNTANTS R. wEL SUTTT. C.P,I BEAM . MMAAI PARTNLR P.O. WX I IDD. SAMMA. KS STADZ-I IDD UNITED BUILDING P. O. BOX 1100 PMMAVL L SALINA. KANSAS 67402-1 100 ROBERT D. W . Cl.A.. PANTNDI OFFICES MLEv L. nnMaoN. CPA.. PA"M" SCOTT Cm Gi 3 - 825 1661 DON P. gEDZRKN. C.P.A.. PARTNER ANTNONY SWM CENTER PAM A. MOW. C.P.A.. PARTNER COLEY WICNRA 1 ALLEN WESSEX. CIA_ PMTNER CONCORMA NEBRASKA: GERALD L MONTER. C.P.A. PARTNER OMDEN CITY MCCMK - KURTIS O. SIEMERS. C.P.A. PARTNM GOOMAND OKLAHOMA: DALE A. NEUSZEI. C.P.A.. PMIMM OREAT SEND ALVA MArrvsWLLE COLORADO: August 2, 1988 wlFn a RErtz a.Pw wrnREo MAW NMM JOHN W. PODS. C.P.A. N[TIREq GµMA WESTWNSTEII L. T. GNEA. C.P.A. DIETIREq l M. MMTZ. C.P.A. METIREM Mr. Dennis Kissinger City Manager City of Salina P.O. Box 736 Salina, KS 67402-0736 Dear Mr. Kissinger: In connection with our examination of the financial statements of the City of Salina for the year ended December 31, 1987, we reviewed various administrative and financial procedures and controls of the City but did not make a comprehensive review for the purpose of submitting detailed recommendations. As a result of our review, we noted certain areas not involving material weaknesses in internal accounting control where financial matters should be considered and procedures improved. This memorandum summarizes our comments and suggestions. We have already discussed our comments and suggestions orally with Mr. Bob Biles, City Clerk and Director of Finance; we will be pleased to discuss them further. Respectfully submitted, Certified' ublic Accountants I FILED `88 AGG 8 PM z or C1IY OF SAMNA elrY CLERK. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS Mr. Dennis Kissinger City Manager City of Salina August 2, 1988 Page 2 Improve Cash Handline Procedures Current procedures of the City Clerk's office regarding cash receipts could be improved to provide stronger internal control. Presently, Lee Gallion is totaling cash receipt documents and cash daily, reconciling any differences, then giving receipts, cash, and total tape to Judy Labbe. Ms. Labbe subsequently prepares the deposit slip from the cash received and compares to Ms. Gallion's total tape, investigating any differences. This creates an unnecessary weakness in that one person is totaling receipts and cash, thus handling the asset and the accounting records. Controls would be improved if Ms. Gallion totaled receipts only and Ms. Labbe totaled cash only and prepared the deposit slip. Ms. Gallion should give the cash receipt documents and tape to Kathleen Tremblay and Ms. Labbe should give a copy of the deposit ticket to Ms. Tremblay for comparison and reconciliation of any differences. Eliminate Duplicative Approval of Purchases Certain procedures regarding purchases may not be necessary to comply with Kansas statutes and still provide adequate internal control. Purchase requisitions are approved by the respective department heads prior to submission to the City Clerk's office. It is our understanding that Bob Biles, City Clerk and Director of Finance, reviews and signs each purchase requisition when received. A purchase order is then prepared which is subsequently matched with the invoice or other evidence of receipt of goods or services. To comply with RSA 12-105b, Mr. Biles later reviews the com- pleted purchase documents and his signature is stamped on the purchase order indica- ting that the claim has been "audited and approved as correct, due, and unpaid." To consolidate procedures, the City could eliminate Mr. Biles' signature on requisi- tions which are already approved by Department Heads, if the completed purchase documents are reviewed and signed by Mr. Biles as "audited and approved." Proposed Payroll System Change Bob Biles has informed us that he is considering computerizing the payroll reporting process at the department level. It is our understanding that each department would enter each employee's regular hours, vacation hours, sick leave hours, and overtime hours for each period into their own computer terminal. This information would then be internally posted to the City's payroll system to prepare necessary payroll reports and checks. The system should provide for limits on the number of hours that can be input for an employee for a given period. It is also our understanding that all employee file maintenance such as pay rate increases, class change, additions and deletions of employees, etc. will continue to be handled by the City Clerk's office and departments will not be able to enter such information on the computer system. As long as this latter group of procedures is controlled at the City Clerk's office, the system has built-in limit tests, and all payroll checks are signed by the City Clerk and City Treasurer, we believe such a change could provide improved efficiency in the processing of payroll while still retaining good internal control over payroll. Mr. Dennis Kissinger City Manager City of Salina August 2, 1988 Page 3 Eliminate Cash Receipt Procedure We noted that each month Kathleen Tremblay separates cash receipts by.fund and runs tapes of receipts by fund which she checks back to the posting on the receipts journal. If this procedure frequently locates errors made in the posting of cash receipts to the City's records it may be of some benefit. However, if posting errors are not frequently located, we recommend that preparation of tapes proving the separation of the receipts by fund be discontinued. Change Signature Card The signature card for First National Bank and Trust Company account no. 950-426-6. City of Salina Combined Water and Sewage Refunding Revenue Bonds, Series 1978, should be updated to remove Don Harrison, the City Clerk who retired in 1987, from the authorized signatures. Monitor Retirement System Deposits We noted the City paid $1,527.90 in late payment penalties on KPERS and KPFRS deposits during 1987. We recommend that the timing of these deposits be monitored by an employee independent of the deposit preparation process to ensure the deposits are made timely in future periods. General Comments Regarding Accounting Sofware We understand from discussions with Bob Biles that he is considering changes to the City's accounting system, including acquisition of new computer software for various accounting applications. We have previously discussed in this letter possible changes to the payroll system. Two applications that we believe could be improved include general ledger and accounts payable. The existing general ledger package is set up to accumulate expenditures by month only. The audit trail that exists is very poor. An improved package would show the detail of transactions in each account each month as well as on a year to date basis if requested. This would provide the various departments with the specific transactions charged to these accounts each month, as well as provide a better audit trail of transactions. The City is presently using a manual accounts payable system. Accounts payable software should provide better control over payables recorded on the records as well as assist in the scheduling of payment of bills. This latter function should improve the management of cash flow of the City. If we can be of assistance in the process of identifying enhancements to the com- puter software for accounting or in locating such software packages from various vendors for the City's consideration, we will be pleased to do so. Office of City Clerk Room 206 300 West Ash Street P.O. Box 736 Sahna, KS 67402-0736 July 20, 1988 Telephone (913) 827-9653 Kennedy and Coe Certified Public Accountants P. O. Box 1100 Salina, KS 67402-1100 Gentlemen: You have asked me to respond to your comments on Page 11 in the 1987 Financial Statements and Audit Report as they relate to the Community Development Block Grant/Small Cities Program. The first two findings relate to the timely submission of Quarterly Progress and Financial Reports in 1987. In response to your findings, we will revise our internal procedures in order to prepare and submit the Quarterly Progress and Financial Report on a more timely basis. However, it should be noted that the City is dependent on the loan recipients to provide financial data and the data and receipts can not'always be gathered in a timely manner. KDOC did not set up a quarterly reporting program or make up Quarterly Progress and Financial Reports until the 1st Quarter of 1987. Therefore the first Quarterly Reports for Grant Numbers 86-BF-181 and 85-BF-280 were submitted 3/31/87, the first time the reporting forms were available or required. The third finding states grant funds loaned to the program recipient did not appear to have been spent within three days of receipt. In a July 13 meeting with Kansas Department of Commerce officials, this concern was addressed. In reviewing the history of Grant Number 85-BF-280 it was determined that the program recipient had contributed approximately $2,000,000 of its own funds to the approved project and that the $395,000 loaned to the recipient by the program was used to reimburse a portion of the expenditures previously made by the recipient. Very truly yours, Robert K. Biles City Clerk and Director of Finance CITY CLERK DIRECTOR OF FINANCE R K B/ j s ROBERT K. BILES, CPA PERSONNEL DIRECTOR M.E. ABBOTT MEMBER... KANSAS LEAGUE OFMUMCFPALMES • NATIONAL LEAGUE OF CME5 R. LaCMAO. IIXA V CPA MYU W P1RItIa P.O. 601 1 f00. EALN4. RD aTA02.1100 OFFICES KANSAS: acorn Cm •NTNONV 41 T C[M[R CO WICNRA CO MIXA NEBRASKA: OAROOI Cm NCCCCR DooDLAND OKLAHOMA: OIIEAT MKI ALVA wurvawL[ COLORADO: PMTT LAAW OALMA W[aTMNRM Mr. Dennis Kissinger City Manager City of Salina P.O. Box 736 Salina, KS 67402-0736 Dear Mr. Kissinger: KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BO[ 11 OD SALINA, KANSAS 67402.1 100 013 - a25-1561 August 2, 1988 ?t f: ` R: rcNAa aGm. C.PA - PARTNDeaNCMARo[ I{S.a f!" '.• ftoe T D. WRWR. C.P.A.. PM `\ -. ADL[V [. JnN ". C.P.A.. PYTNDI DON P. P1®GICM CIA.. PAIRNO [\ PAM A. Y ". C.PA. PA"NW .. ALLIIN W[[[D1. C.P.A_ PYrtNN1 n ALD L MU . C.P.A.. PAR1PIM RII1Na O. Mwma. C.P.A.. PARTNOI DAL[ A NNB C.PA. PAR m RALA1 c ROIL C.PJ wmll(DI AMM W. POO9. C.P.A. q[TIIIm L T. ZM QP.A. PLTII®1 L M. MOITL C.PA YIaTIROA In connection with our examination of the financial statements of the City of Salina for the year ended December 31, 198-7, we reviewed various administrative and financial procedures and controls of the City but did not make a comprehensive review for the purpose of submitting detailed recommendations. As a result of our review, we noted certain areas not involving material weaknesses in internal accounting control where financial matters should be considered and procedures improved. This memorandum summarizes our comments and suggestions. We have already discussed our comments and suggestions orally with Mr. Bob Biles, City Clerk and Director of Finance; we will be pleased to discuss them further. Respectfully submitted, Certified ublic Accountants FI LED 88 AUG g PM z 01 CI V/ OF SALINA CITY CLEAK. MEMBERS OF: AMERICAN INSTITUTE OF CERTIPIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS Mr. Dennis Kissinger City Manager City of Salina August 2, 1988 Page 2 Improve Cash Handline Procedures Current procedures of the City Clerk's office regarding cash receipts could be improved to provide stronger internal control. Presently, Lee Gallion is totaling cash receipt documents and cash daily, reconciling any differences, then giving receipts, cash, and total tape to Judy Labbe. Ms. Labbe subsequently prepares the deposit slip from the cash received and compares to Ms. Gallion's total tape, investigating any differences. This creates an unnecessary weakness in that one person is totaling receipts and cash, thus handling the asset and the accounting records. Controls would be improved if Ms. Gallion totaled receipts only and Ms. Labbe totaled cash only and prepared the deposit slip. Ms. Gallion should give the cash receipt documents and tape to Kathleen Tremblay and Ms. Labbe should give a copy of the deposit ticket to Ms. Tremblay for comparison and reconciliation of any differences. Eliminate Duplicative Approval of Purchases Certain procedures regarding purchases may not be necessary to comply with Kansas statutes and still provide adequate internal control. Purchase requisitions are approved by the respective department heads prior to submission to the City Clerk's office. It is our understanding that Bob Biles, City Clerk and Director of Finance, reviews and signs each purchase requisition when received. A purchase order is then prepared which is subsequently matched with the invoice or other evidence of receipt of goods or services. To comply with KSA 12-105b, Mr. Biles later reviews the com- pleted purchase documents and his signature is stamped on the purchase order indica- ting that the claim has been "audited and approved as correct, due, and 'unpaid." To consolidate procedures, the City could eliminate Mr. Biles' signature on requisi- tions which are already approved by Department Heads, if the completed purchase documents are reviewed and signed by Mr. Biles as "audited and approved." Proposed Payroll System Change Bob Biles has informed us that he is considering computerizing the payroll reporting process at the department level. It is our understanding that each department would enter each employee's regular hours, vacation hours, sick leave hours, and overtime hours for each period into their own computer terminal. This information would then be internally posted to the City's payroll system to prepare necessary payroll reports and checks. The system should provide for limits on the number of hours that can be input for an employee for a given period. It is also our understanding that all employee file maintenance such as pay rate increases, class change, additions and deletions of employees, etc. will continue to be handled by the City Clerk's office and departments will not be able to enter such information on the computer system. As long as this latter group of procedures is controlled at the City Clerk's office, the system has built-in limit tests, and all payroll checks are signed by the City Clerk and City Treasurer, we believe such a change could provide improved efficiency in the processing of payroll while still retaining good internal control over payroll. Mr. Dennis Kissinger City Manager City of Salina August 2, 1988 Page 3 Eliminate Cash Receipt Procedure We noted that each month Kathleen Tremblay separates cash receipts by fund and runs tapes of receipts by fund which she checks back to the posting on the receipts journal. If this procedure frequently locates errors made in the posting of cash receipts to the City's records it may be of some benefit. However, if posting errors are not frequently located, we recommend that preparation of tapes proving the separation of the receipts by fund be discontinued. Change Signature Card The signature card for First National Bank and Trust Company account no. 950-426-6, City of Salina Combined Water and Sewage Refunding Revenue Bonds, Series. 1978, should be updated to remove Don Harrison, the City Clerk who retired in 1987, from the authorized signatures. Monitor Retirement System Deposits We noted the City paid $1,527.90 in late payment penalties on KPERS and KPFRS deposits during 1987. We recommend that the timing of these deposits be monitored by an employee independent of the deposit preparation process to ensure the deposits are made timely in future periods. General Comments Regarding Accounting Sofware We understand from discussions with Bob Biles that he is considering changes to the City's accounting system, including acquisition of new computer software for various accounting applications. We have previously discussed in this letter possible changes to the payroll system. Two applications that we believe could be improved include general ledger and accounts payable. The existing general ledger package is set up to accumulate expenditures by month only. The audit trail that exists is very poor. An improved package would show the detail of transactions in each account each month as well as on a year to date basis if requested. This would provide the various departments with the specific transactions charged to these accounts each month, as well as provide a better audit trail of transactions. The City is presently using a manual accounts payable system. Accounts payable software should provide better control over payables recorded on the records as well as assist in the scheduling of payment of bills. This latter function should improve the management of cash flow of the City. If we can be of assistance in the process of identifying enhancements to the com- puter software for accounting or in locating such software packages from various vendors for the City's consideration, we will be pleased to do so. Office of City Cleric Room 206 300 West Ash Street P.O. Box 736 Salina, KS 67402-0736 July 20, 1988 Telephone (913) 527-9653 Kennedy and Coe Certified Public Accountants P. O. Box 1100 Salina, KS 67402-1100 Gentlemen: - You have asked me to respond to your comments on Page 11 in the 1987 Financial Statements and Audit Report as they relate to the Community Development Block Grant/Small Cities Program. The first two findings relate to the timely submission of Quarterly Progress and Financial Reports in 1987. In response to your findings, we will revise-our internal procedures in order to prepare and submit the Quarterly Progress and Financial Report on a more timely basis. However, it should be noted that the City is dependent on the loan recipients to provide financial data and the data and receipts can not' always be gathered in a timely manner. KDOC did not set up a quarterly reporting program or make up Quarterly Progress and Financial Reports until the 1st Quarter of 1987. Therefore the first Quarterly Reports for Grant Numbers 86-BF-181 and 85-BF-280 were submitted 3/31/87, the first time the reporting forms were available or required. The third finding states grant funds loaned to the program recipient did not appear to have been spent within three days of receipt. In a July 13 meeting with Kansas Department of Commerce officials, this concern was addressed. In reviewing the history of Grant Number 85-BF-280 it was determined that the program recipient had contributed approximately $2,000,000 of its own funds to the approved project and that the $395,000 loaned to the recipientby the program was used to reimburse a portion of the expenditures previously made by the recipient. Very truly/yours, Robert K. Biles- City Clerk and Director of Finance cmr CLERK DIRECTOR OF FINANCE R K B/ j s ROBERT K. BILES, CPA PERSONNEL DIRECTOR M.EABBOrf MEMBER... KANSAS LEAGUEOFMUNfC1PALMFS • NA770NALLEAGUE OFClM CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME 8 7•UU r.n. AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR NO. g AGENDA: City Manager ITEM NO. 18 BY: Dennis M. Kissinger I BY:',-, l' PRESENTATION OF AUDITOR'S REPORTS FOR CITY OF SALINA FISCAL YEAR ENDING DECEMBER 31, 1987. A representative of Kennedy and Coe, Certified Public Accountants will formally present the financial statements and audit report for the City's last fiscal year to the City Commission, and be available for questions from the Commission. Note: The Mayor may wish to consider this agenda item and report at the beginning of the meeting, prior to the budget hearing. MOTION BY TO: COMMISSION ACTION SECOND BY RESOLUTION NUMBER 87-3942 A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS PURSUANT TO K.S.A. 75-1120a, FOR THE YEAR 1987. BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Board of Commissioners hereby finds that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to requirements of the cash basis and budget laws of Kansas and are of no significance and value to the governing body or the general public of the City of Salina. Section 2. That the Director of Accounts and Reports is hereby requested to waive the requirements of law relating to the preparation of financial statements and financial reports that conform to generally accepted accounting principles pursuant to K.S.A. 75-1120a. Section 3. That this Resolution shall be in full force and effect and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 7th day of December 1987. Stephen C. Ryan, Mayor [SEAL] ATTEST: Obert K. Biles, City Clerk STATE OF KANSAS ) ) SS COUNTY OF SALINE ) I, Robert K. Biles, City Clerk of the City of Salina, Kansas, do hereby certify that Resolution Number 87-3942 was adopted by the Board of Commissioners at its regular meeting on December 7, 1987, and that the above and foregoing is a true and correct copy of the original on file in my office. [SEAL] Rob . ert KBiles, City Clerk MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas 67401 We propose to make examinations of the financial statements of the City of Salina, Kansas for the year 1986 listed on Appendix A. Our examinations will be made in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Minimum Standard Audit Program approved by the State Municipal Accounting Board, and the requirements of Office of Management and Budget Circular A-128 and will include tests of accounting records and such other auditing procedures as we consider necessary under the circumstances. In addition, supplemental information (as listed in Appendix A), presented for the purpose of additional analysis and not a required part of the basic financial statements, will be subjected to the audit procedures applied in the examination of the basic financial statements. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1986 are Federal Revenue Sharing Funds and Community Development Block Grants - Small Cities Program. The scope of our examination will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Recreation Commission Salina Airport Authority Firemen's Relief Association It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of examination of the financial statements of the City of Salina for the year 1986, and upon completion and subject to our findings, the expression of opinions on such financial statements. An examination made in accordance with generally accepted auditing standards is subject to certain limitations and the inherent risk that errors or irregularities, if they exist, will not be detected. KENNEDY AND COE ROBERT D. WILBUR. C. P. •. RALPH E. REITZ, C. P.A. METIREM CERTIFIED PUBLIC ACCOUNTANTS MANAGING PARTNER JOHN W. P008, C.P.A. WETIREOI P.O. BOX 1100, SALINA. HE 6740211 GO UNITED BUILDING P. O. BOX 1100 E. T. SHEA. CPA. IRETIREOI SALINA, KANSAS 67402-1 100 L M. MERT2, C. P. A. IRETIREM OFFICES - 913 - 825 1561 ROBERT O. WILBUR. C.P.A. KANSAS: SCOTT CITY MANAGING PARTNER ANTHONY SMITH CENTER COLBY WICHITA R. MICHAEL BEATTY, C. P. A. CDrvcoRDIA NEBRASKA: PARTNERIN-CHARGE GOOOLANO MCCOOK ADLEY E. JOHNSON. C.PA.. PARTNER GREAT BEND OKLAHOMA: DON P. OIEDERICX. C.PA.. PARTNER MARYSVILLE ALVA November 6, 1986 FALL A MOTT, C.P.A.. PARTNER PRATT COLORADO: ALLEN WEBBER. C.P.A.. PARTNER SALINA "MAR GERALD L HUNTER. C A., PARTNER WESTMINSTER KURTIS G. SIEMERS. C.P.A., PARTNER DALE A. HEUSZEL, CRA. PARTNER The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas 67401 We propose to make examinations of the financial statements of the City of Salina, Kansas for the year 1986 listed on Appendix A. Our examinations will be made in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Minimum Standard Audit Program approved by the State Municipal Accounting Board, and the requirements of Office of Management and Budget Circular A-128 and will include tests of accounting records and such other auditing procedures as we consider necessary under the circumstances. In addition, supplemental information (as listed in Appendix A), presented for the purpose of additional analysis and not a required part of the basic financial statements, will be subjected to the audit procedures applied in the examination of the basic financial statements. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1986 are Federal Revenue Sharing Funds and Community Development Block Grants - Small Cities Program. The scope of our examination will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Recreation Commission Salina Airport Authority Firemen's Relief Association It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of examination of the financial statements of the City of Salina for the year 1986, and upon completion and subject to our findings, the expression of opinions on such financial statements. An examination made in accordance with generally accepted auditing standards is subject to certain limitations and the inherent risk that errors or irregularities, if they exist, will not be detected. The Honorable Mayor and The City Commissioners City of Salina November 6, 1986 Page 2 However, if, during the course of our examination, we become aware of such errors or irregularities, we will bring them to your attention. Should you then wish us to expand our normal auditing procedures, we will work with you on developing a separate engagement for that purpose. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates for municipalities. However, our fee for this engagement will not exceed $27,000. Billings will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. The maximum fee is based on the assumption that the City will obtain the appropriate waiver from financial statements and reports prepared in accordance with generally accepted accounting principles for the year ending December 31, 1986. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. In order to facilitate the efficient conduct of our work, we will provide your personnel with our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available which is consistent with prior years. Preliminary work will be performed at mutually acceptable times in order to complete the engagement as expeditiously as possible. We will be happy to discuss any aspects of this proposal with you at your convenience. If you are in agreement with the terms of this letter, please sign one copy and return it for our files. We appreciate the opportunity to work with you and to continue our pleasant association. very truly yours, Certified Yublic Accountants Accepted this /ft4 day of ';� , 1986 Mayor - City of Salina, Kansas &a G✓ City Clerk - City of Salina, Kansas s CITY OF SALINA SALINA, KANSAS APPENDIX A FINANCIAL STATEMENTS TO BE EXAMINED BY KENNEDY AND COE FOR THE YEAR ENDED DECEMBER 31, 1986 I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY RECORDING ENCUMBRANCES SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET NOTES TO FINANCIAL STATEMENTS II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE SCHEDULE OF INDEBTEDNESS COMPOSITION OF ENDING GASH BALANCES COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO AUTHORIZATIONS SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT BALANCE SHEET STATEMENT OF INCOME STATEMENT OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENT OF CHANGES IN FINANCIAL POSITION NOTES TO FINANCIAL STATEMENTS V CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS NOVEMBER 10, 1986 4:00 p.m. The Regular Meeting of the Board of Commissioners met in the Commission Meeting Room, City -County Building, on Monday, November 10, 1986, at four p.m. There were present: Acting Mayor Stephen C. Ryan, Chairman presiding Commissioner John F. Burgess Commissioner Merle A. Hodges Commissioner Sydney S. Soderberg comprising a quorum of the Board, also present: Greg Bengtson, City Attorney D. L. Harrison, City Clerk Rufus L. Nye, City Manager Absent: Mayor Joseph M. Ritter CITIZEN FORUM " None AWARDS - PROCLAMATIONS (4.1) The Mayor proclaimed the Week of November 9 through 15, 1986 I - "YOUTH APPRECIATION WEEK". No one was present to read the proclamation. .. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME Norte CONSENT AGENDA (6.1) Approve the Minutes of the Regular Meeting November 3, 1986. (6.2) Resolution Number 86-3864, authorizing and directing the Issuance of temporary notes of the City of Salina, Kansas, in the amount of $1,500,000 for the purpose of providing funds to pay a portion of the cost of the acquisition and Improvement of property for approximately 290 to 350 off-street parking spaces, the acquisition of property and construction of arcades and crosswalks, the Improvement of streets and other facilities by landscaping and weather shelters and the relocation and burial of utilities in the central business district In said city. (6.3) Resolution Number 86-3865, authorizing the Mayor or City Manager to execute amendment number four (4) to the Department of Housing and Urban Development Annual Contributions Contract KC -7015. (6.4) Resolution Number 86-3866, authorizing the Mayor or City Manager to execute amendment number six (6) to the Department of Housing and Urban -Development Annual Contributions Contract FW -1114. (6.5) Authorize the Mayor to sign an audit contract with Kennedy and Coe, Certified Public Accountants, to audit the 1986 city accounts. (6.6) Authorize the Mayor to sign a consent to assignment by the Salina Nursing Center, Inc., to Pinnacle Care Corporation of Salina. (IRB's Issued April 1, 1979.1 86-230 11 Moved by Commissioner Hodges, seconded by Commissioner Burgess that all Items on the Consent Agenda be approved. Aye: (4). Nay: (0). Motion adopted. None DEVELOPMENT BUSINESS ADMINISTRATION (8.1) Second Reading Ordinance 86-9165, vacating a certain utility easement In part of Lot 4, Block 20, and Lot 8, Block 21, Replat of Key Acres Addition. [Requested in petition Number 3928, filed by Richard McGinley] 86-231 Moved by Commissioner Burgess, seconded by Commissioner Soderberg that Ordinance Number 86-9165, vacating a certain utility easement in part of Lot 4, Block 20, and Lot 8, Block 21, Replat of Key Acres Addition, be adopted. Aye: Burgess, Hodges, Soderberg, Ryan (4). Nay: (0). Mayor Ritter absent. _ Motion adopted. (8.2) The City Clerk reported on bids received at 2 p.m. for $1,983,000 Internal Improvement Bonds, Series P-232, and recommended the contract be awarded to Stern Brotners 6 Company of Kansas City, Missouri for a total Interest cost to the City of $696,101.00, with an average annual interest rate of 5.532075%. 86-232 Moved by Commissioner Soderberg, seconded by Commissioner Hodges that the contract be awarded to Stern Brothers 6 Company to purchase $1,983,000 Internal Improvement Bonds, Series P-232 for a total Interest cost to the City of $696,101.00 with an average annual Interest rate of 5.532075%. Aye: (4). Nay: (0). Motion adopted. (6.3) First Reading Ordinance Number 86-9166 - authorizing the Issuance of $1,983,000 Internal Improvement General Obligation Bonds, Series P-232. 86-233 Moved by Commissioner Hodges, seconded by Commissioner Burgess that Ordinance Number 86-9166, authorizing the Issuance of $1,983,000 Internal Improvement General Obligation Bonds, Series P-232, be Introduced for first reading. Aye: (4). Nay: (0). Motion adopted. (8.4) Distribution of approximately $45,000 In Special Alcohol Tax Funds for 1987. .__ 86-234 Moved by Commissioner Burgess, seconded by Commissioner Soderberg that the Special Alcohol Tax Funds for 1987 be distributed $40,000 to Central Kansas Foundation, and $5,000 to Citizens Coalition on Drug and Alcohol Abuse. Aye: (4). Nay: (0). Motion adopted. OTHER BUSINESS None ADJOURNMENT 86-235 Moved by Commissioner Burgess, seconded by Commissioner Hodges that the Regular Meeting of the Board of Comm)ssionera be adjourned. Aye: (4). Nay: (0). Motion adopted. The meeting adjourned at 4:05 p.m. eph M. Ritte �ayo [SEAL] ATTEST: D. L. Harrison, City Clerk II 129 South 8th P.O. Box 380 Salina, KS 67402-0380 CITY ATTORNEY GREG A. BENGTSON (913) 823-6325 June 23, 1987 Kennedy & Coe I FSR Certified Public Accountants kot/'YjR � P.O. Box 1100 zeS Salina, Kansas 67402-1100 Re: Audit information for legal matters regarding the City of Salina, Kansas Dear Sirs: The following is a summary of all litigation, claims and assessments asserted against the City as of December 31, 1986, through the date of this report. (1). Salina Journal, Inc. and Harris Ra 1 vs. City of Salina, Kansas, Saline County District Court Case No. 86 C-383. This was an action under the Kansas Open Records Act for the production of the terms and conditions of the settlement which concluded the case of Ronald R. Tremblay vs. City of Salina, et al. The tt d d of involy 'a cla m for monetar dama es ma er > n e a y g The case has now been decided and the City has complied with the Court's order in the case. If you have any further questions, please contact this office. Thank you. Very truly yours, CITY OF SALINA, KANSAS Greg A. Bengtson City Attorney GAB/dg cc: D. L. Harrison City Clerk MEMBER... KANSAS LEAGUE OFMUM01WJM • NATIONAL LEAGUE 0FCMES 6a �. ♦. ♦ � � �i �I ( � ,`2n 1 �: �k°4-11t�rpJ JI�II� r�'+Z�},.�'`� AREA CODE 813 627.9653 CITY - COUNTY BUILDING 300 WEST ASH P.O. BOX 746 SALINA, KANSAS 67402-0746 June 24, 1987 Kennedy and Coe Certified Public Accountants P.O. Box 1100 Salina, Kansas 67402-1100 Gentlemen: In connection with your examination of CITY CLERK'S OFFICE D.L. HARRISON, CMC M.E. ABBOTT (a) the financial statements of the various fund and account groups of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the cash and unencumbered cash balances at December 31, 1986, and receipts and expenditures for the year then ended in accordance with the method of accounting described in the financial statements, and (b) the financial statements of the Water and Sewerage Department of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the financial position and results of operations and changes in financial position of the Department in conformity with generally accepted accounting principles for the year ended December 31, 1986, we confirm, to the best of our knowledge and belief, the following representa- tions made to you during your examination. 1. We understand that we are responsible for the fair presentation in the financial statements of a. the cash and unencumbered cash balances and receipts and expenditures in accordance with the method of accounting described in the financial statements, and b. the financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles with regard to the financial statements of the Water and Sewerage Department. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Kennedy and Coe Certified Public Accountants June 24, 1987 Page 2 2. We have made available to you all financial records and related data, including all minutes of the City Commissioners. 3. We are not aware of any a. Irregularities involving management or employees who have signifi— cant roles in the system of internal accounting control. b. Irregularities involving other employees that could have a material effect on the financial statements. c. Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the financial statements. 4. There are no related parties for which transactions should be disclosed in the financial statemenets, except for certain services provided to the Water and Sewerage Department by the City departments. 5. We have complied, to the best of our knowledge, with all aspects of regulations, contractual agreements, and bond ordinances, that would have a material effect on the financial statements in the event of noncompliance. 6. We have complied, to the best of our knowledge, with all applicable Kansas Statutes except as disclosed in the financial statements, which in the event of noncompliance might require disclosure in. the financial statements in accordance with requirements of the State Municipal Accounting Board. 7. We are not aware of any material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5. 8. There are no unasserted claims or assessments that the City Attorney has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5. 9. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. The adjusting journal entries as of December 31, 1986, which have been proposed by you, are approved by us and will be recorded by us in our accounting records. Kennedy and Coe Certified Public Accountants June 24, 1987 Page 3 10. All Federal financial assistance recieved by the City has been identified and is included in the Schedule of Federal Financial Assistance accompanying the financial statements. 11. No events have occurred subsequent to December 31, 1986, which, had they been known at that date, would have required adjustment to the financial statements. Respectfully submitted, Rufus L 0Nye, City Manager D. L. Harrison, City Clerk M. E. Abbott, City Treasurer JOHN CARLIN Governor JAMES R. COBLER Director of Accounts and Reports STATE OF KANSAS r `+a' �' "i.r aw.a�_ �. DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS June 25, 1987 D. L. Harrison City Clerk P.O. Box 736 Salina, KS 67402-0736 Dear Member: State Office Building Topeka, Kansas 66612-1574 (913)296.2311 As you have requested, and as provided by K.S.A. 1982 Supp. 75-1120a(d) (1982 S.B. 531), I hereby waive the requirements of subsection (a) to the extent requested by the governing body for the fiscal year ended December 31, 1986 Very truly yours, V James R. Cobler, Director Division of Accounts and Reports JRC:WLE:ps STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor JAMES R. COBLER July 24, 1987 Director of Accounts and Reports To the Governing Body: City of Salina Salina , Kansas State Office Building Topeka, Kansas 66612 (913) 296-2311 The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124. Date of Audit Report: June 23, 1987 Municipality Audited: City of Salina Date Received in This Office: July 24, 1987 Audit Report Covering Audit Period Financial Statements December 31, 1986 u Report by: Kennedy and Coe Salina, KS Licensed Municipal Public Accountant in charge of audit: License No. Certified Public Accountant David J. Mills in charge of audit: Permit No. CPA 2682 Very truly yours, James R. Cobler, Director Division •o- f Accounts and Reports by Original to be attached to voucher and filed with Clerk of Municipality. Blue Copy for Accountant's File. AR -102 (7-29-76) June 26, 1987 Federal Cognizant Agency Gentlemen: Enclosed is one copy of the Financial Statements and Auditor's Report for the year ended December 31, 1986, of the City of Salina, Kansas. Following are our comments on the findings and recommendations of our auditors. These comments are furnished in accordance with paragraph 13.d. of OMB Circular A-128, Audits of State and Local Governments. Auditors' Report of Internal Control Auditors' findings - No independent review of date submitted in Bureau of end sus reports is made. Cit 's comment - The auditor's noted several differences in Form F -21A. This odoes not provide a ready means of self -checking in that only selected financial data is required. In preparation of future reports we will maintain a better record of the detailed data reported and will attempt to develop a means of checking the data prior to submission of the report. if such reports are requested in the future an independent review of the report will be made. Auditor's findings_ - One employee in the City Clerk's office totals cash receipt ocT umentsand prepares the deposits to the bank. City's comment - The two functions were corrected after the audit report was filed, beginning August 1, 1986. Auditor's findings - Government is to publish a notice that the use report is available for public inspection no later than 10 days following its completion and filing by the government. City's comment - City management was aware of the requirement that the notice needed to be published, but it was not published, apparently due to oversight. We intend to publish the notice of availability of the December 31, 1986 audit report within the 10 day period. Federal Cognizant Letter Page 2 Auditor's findings - The Performance Assessment Report due 90 days after the project ompletion date has not been submitted. City's comment - It is the City's understanding that the Performance Asessment�port could not be completed until the audit of the grant was completed. The report will be submitted shortly after the audit report is available. Auditor's findings - The Status of Funds report (HUD 4950.3) for the period en a Sep—tem ber 30, 1986, was submitted approximately 18 days late. City's comment - This was apparently an oversight as all other quarterly reports were timely submitted. Very truly yours, D. L. Harrison City Clerk and Director of Finance DLHljs AREA CODE 913 827-9653 CITY -COUNTY BUILDING 300 WEST ASH PO BOX 736 SALINA. KANSAS 67402-0736 June 26, 1987 Federal Cognizant Agency Gentlemen: .��1jIJ'�,�IIJJJJ �N�NIIl!IIII��eeII 99 `,.5. ,w (11 6�I�' I� I� � �'� I CITY CLERK'S OFFICE D.L. HARRISON. CMC M . ABBOTT Enclosed is one copy of the Financial Statements and Auditor's Report for the year ended December 31, 1986, of the City of Salina, Kansas. Following are our comments on the findings and recommendations of our auditors. These comments are furnished in accordance with paragraph 13.d. of OMB Circular A-128, Audits of State and Local Governments. Auditors' Report of Internal Control Auditors' fines - No independent review of date submitted in Bureau of Census reports Is made. City's comment - The auditor's noted several differences in Form F -21A. This odoes not provide a ready means of self -checking in that only selected financial data is required. In preparation of future reports we will maintain a better record of the detailed data reported and will attempt to develop a means of checking the data prior to submission of the report. If such reports are requested in the future an independent review of the report will be made. Auditor's findings - One employee in the City Clerk's office totals cash receipt documents and prepares the deposits to the bank. cityIs comment - The two functions were corrected after the audit report was �iTe,- eg g August 1, 1986. Auditor's fines - Government is to publish a notice that the use report is ava�71a-6 e— or pupubT'ic inspection no later than 10 days following its completion and filing by the government. City's comment - City management was aware of the requirement that the notice neededto be published, but it was not published, apparently due to oversight. We intend to publish the notice of availability of the December 31, 1986 audit report within the 10 day period. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Federal Cognizant Letter Page 2 Auditor's findings - The Performance Assessment Report due 90 days after the project compp e� date has not been submitted. City's comment - it is the City's understanding that the Performance Assessment Deport could not be completed until the audit of the grant was completed. The report will be submitted shortly after the audit report is available. Auditor's findings - The Status of Funds report (HUD 4950.3) for the period ended eptem er 0, 1986, was submitted approximately 18 days late. City's comment - This was apparently an oversight as all other quarterly reports were timely submitted. Very 1�truly yours, D. L. Harrison City Clerk and Director of Finance DLH/js RESOLUTION NUMBER 87-3899 A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS PURSUANT TO K.S.A. 1982 SUPP. 75-1120a. BE IT RESOLVED by the Govering Body of the City of Salina, Kansas: Section 1. That the Board of Commissioners hereby finds that financial statements an financial reports prepared in conformity with generally `jjaccepted accounting principles are not relevant to requirements of the cash basis and budget laws of Kansas and are of no significance and value to the governing body of the general public of the City of Salina. Section 2. That the Director of Accoumnts and Reports is hereby requested to waive the requirements of law relating to the preparation of financial statements and financial reports that conform to generally accepted accounting principles pursuant to K.S.A. 1982 Supp. 75-1120a. Section 3. That this Resolution shall be in full force and effect from and after its adoption Adopted by the Board of Commissioners and signed by the Mayor this 15th day of June, 1987. [SEAL] ATTEST: D. L. Harrison, City Clerk STATE OF KANSAS ) ) SS COUNTY OF SALINE ) Ste hen C. Ran "Ma or P Y Y V}yC. 11-C.�tXI. '1 0 0.aG C 1 l I, D. L. Harrison, City Clerk of the City of Salina, Kansas, do hereby certify that Resolution Number 87-3899 was adopted by the Board of Commissioners at its regular meeting on June 15, 1987, and that the above and foregoing is a true and correct copy of the original on file in my office. [SEAL] D. L. Harrison, City Clerk MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE RALPN E. REITZ. C.P.A. ."REM CERTIFIED PUBLIC ACCOUNTANTS ROOERT D. WILBUR. C. P. A. MANAGING PMTMER P.O. BOX 1170. BM1NA. KS 47402.1170 OFFICES SALINA. KANSAS 67402-1178 KANSAS: SCOTT CITY ANTNONY SY CENTER COLEY WICWTA CONCORWA NEBRASKA: GOODLAND MCCOOK GREAT BEND OKLAHOMA: MARYSVILLE ALVA PRATT COLORADO: SAUNA LAMAR GERALD L. NDMER. C.P.A.. PARTNER WESTMINSTER MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE RALPN E. REITZ. C.P.A. ."REM CERTIFIED PUBLIC ACCOUNTANTS E. T. ENEA. C.P.A. IRETUtEW UNITED BUILDING P. O. BOIL 1170 L. M. ME'RT2. CPA METIRPD1 SALINA. KANSAS 67402-1178 ROBERT D..1LBYR. C.P.A. 019 - 828-1581 MANAGING PARTNER R. YWNAEL BEAM. C.P.A. PAflTNmR HAROE JONN W. POOR. C.P.A.. PARTNER ADLEY E. JOHNSON. C.P.A., PARTNER DON P. DIEDERICH. C.P.A.. PARTNER December 4, 1985 PALE w•BT`C P M.MR A GERALD L. NDMER. C.P.A.. PARTNER KURTIB G. SIEMER& C.P.A.. PARTNER DALE A. NEUSZEL, C.P.A.. PARTKKA The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas 67401 We propose to make examinations of the financial statements of the City of Salina, Kansas for the year 1985 listed on Appendix A. Our examinations will be made in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Minimum Standard Audit Program approved by the State Municipal Accounting Board, and the requirements of Office of Management and Budget Circular A-128 and will include tests of accounting records and such other auditing procedures as we consider necessary under the circumstances. In addition, supplemental information (as listed in Appendix A), presented for the purpose of additional analysis and not a required part of the basic financial statements, will be subjected to the audit procedures applied in the examination of the basic financial statements. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1985 are Federal Revenue Sharing Funds. The scope of our examinations will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Recreation Commission Salina Airport Authority Firemen's Relief Association It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of examinations of the financial statements of the City of Salina for the year 1985, and upon completion and subject to our findings, the expression of opinions on such financial statements. An examination made in accordance with generally accepted auditing standards is subject to certain limitations and the The Honorable Mayor and The City Commissioners December 4, 1985 Page 2 inherent risk that errors or irregularities, if they exist, will not be detected. However, if, during the course of our examination, we become aware of such errors or irregularities, we will bring them to your attention. Should you then wish us to expand our normal auditing procedures, we will work with you on developing a separate engagement for that purpose. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates for municipalities. However, our fee for this engagement will not exceed $25,690. Billings will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. The maximum fee is based on the assumption that the City will obtain the appropriate waiver from financial statements and reports prepared in accordance with generally accepted accounting principles for the year end December 31, 1985. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. In order to facilitate the efficient conduct of our work, we will provide your personnel with our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available which is consistent with prior years. Preliminary work will be performed at mutually acceptable times in order to complete the engagement as expedi- tiously as possible. We will be happy to discuss any aspects of this proposal with you at your convenience. If you are in agreement with the terms of this letter, please sign one copy and return it for our files. We appreciate the opportunity to work with you and to continue our pleasant association. Very truly yours, Certifie ublic Accountants Accepted this %&g day of el� , 1985. Mayor City of Salina, K&fsas City Clerk - City of Salina, Kansas CITY OF SALINA Salina, Kansas APPENDIX A FINANCIAL STATEMENTS TO BE EXAMINED BY KENNEDY AND COE FOR THE YEAR ENDED DECEMBER 31, 1985 I. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY RECORDING ENCUMBRANCES SUMMARY STATEMENT OF RECIEPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET NOTES TO FINANCIAL STATEMENTS II. SUPPLEMENTAL INFORMATION TO THE BASIC FINANCIAL STATEMENTS LISTED ABOVE STATEMENT OF INDEBTEDNESS COMPOSITIION OF ENDING CASH BALANCES COMPARISION OF.GROSS CASH BALANCES WITH DEPOSITORY SECURITY COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO AUTHORIZATIONS STATEMENT OF ACTIVE FEDERAL AWARDS III. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT BALANCE SHEETS STATEMENTS OF INCOME STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENTS OF CHANGES IN FINANCIAL POSITION NOTES TO FINANCIAL STATEMENTS G i [ ; \ \ d ) a K k / . i e § > �f ] P � \ � E \ ( , NZ g I U15 It C co q\� E . 2 CD m CD m@ $ \ g ) /� - r / c ) � � 40 2 �/ ( \ � "m I I•I P1 ILML.WM0, r t ZVIµlll AREA CODE 913827-9653 CITY CLERK'S OFFICE CITY -COUNTY BUILDING 300 WEST ASH D.L. M.E. CMC P.O. BOX 746 June 4, 1986 .E. ABBOTT SALINA. KANSAS 67402-0746 Mr. Greg Bengston City Attorney P. 0. Box 380 Salina, Kansas 67402-0380 Dear Mr. Bengston: In connection with an examination of our financial statements at December 31, 1985, and for the year then ended, please furnish to our auditors, Kennedy and Coe, P. 0. Box 1100, Salina, Kansas 67402-1100, the information requested below involving matters as to which you have devoted substantive attention on behalf of the City in the form, of legal consultation or representation. Your response should include matters that existed at December 31, 1985, and during the period from that date to the effective date of your response. (Please specify the effective date of your response if it is other than the date of reply.) PENDING OR THREATENED LITIGATION, CLAIMS AND ASSESSMENTS (EXCLUDING UNAS- SERTED CLAIMS AND ASSESSMENTS): Please furnish a list of all litigation, claims and assessments (excluding unasserted claims and assessments) asserted against the City even though legal proceedings have not started. Information regarding each case should include but not be limited to: 1. The nature of the litigation including identification of: a. The proceedings b. The claim(s) asserted c. The amount of monetary or other damages sought. (If no amounts are stated in preliminary case filings, please so state.) d. Whether or not the potential damages are covered by insurance and, if so, to what extent (policy limits, deductibles, etc.) e. The objectives sought by the plaintiff (if any) other than monetary or other damages (such as performance or discontinued performance of certain actions.) 2. The progress of the case to date (in the process of discovery, trial or appeal.) 3. How the City is responding or intends to respond to the litigation, e.g., to contest the case vigorously or to seek out-of-court settle- ment. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Mr. Greg Bengston City Attorney June 4, 1986 Page 2 4. Your evaluation of the likelihood of an unfavorable outcome. (To avoid potential misunderstandings of your opinion, please avoid vague phrases such as or similar to "meritorious defense", "without substantial merit", or "reasonable chance of dismissal".) If no opinion can be expressed, please so state and explain the reasons. 5. An estimate as to the amount or range of potential loss. It is important that you express an upper limit on possible and probable losses. If no range or upper limits can be expressed, please so state and explain the reasons. Also, please identify any pending or threatened litigation, claims and assessments with respect to which you have been engaged, but as to which you have not yet devoted substantive attention. UNASSERTED CLAIMS AND ASSESSMENTS: We understand that whenever, in the course of performing legal services for us with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure, if you have formed a professional conclusion that we should disclose or consider discl'osure concerning such possible claim or assessment, as a matter of professional responsibility to us, you will so advise us and will consult with us concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards No. 5. Please specifically confirm to our auditors that our understanding is correct. Please specifically identify the nature of and reasons for any limitation on your response. Please return your response directly to our auditors in the enclosed return envelope. Very truly yours, D L. Harrison City Clerk. DLH:jlb cc: Kennedy and Coe P. 0. Box 1100 Salina, Kansas 67402-1100 Cg I� gra �+ 7g ffi g �T 7@, ffi Y V O Y ate. L-� U II N A �n t a a lil- 1`4z AREA CODE 913 627 9653 CITY CLERK'S OFFICE CITY -COUNTY BUILDING DLH 300 WEST ASH .. HARRISON. P.O. BOX 746 M.EE ABB. ABBOTT SALINA, KANSAS 6]402-0]46 June 23, 1986 Kennedy and Coe Certified Public Accountants P.O. Box 1100 Salina, Kansas 67402-1100 Gentlemen: In connection with your examination of (a) the financial statements of the various fund and account groups of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the cash and unencumbered cash balances at December 31, 1985, and receipts and expenditures for the year then ended in accordance with the method of accounting described in the financial statements, and (b) The financial statements of the Water and Sewerage Department of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the financial position and results of operations and changes in financial position of the Department in conformity with generally accepted accounting principles for the year ended December 31, 1985, we confirm, to the best of our knowledge and belief, the following repre- sentations made to you during your examination. 1. We understand that we are responsible for the fair presentation in the financial statements of a. the cash and unencumbered cash balances and receipts and ex- penditures in accordance with the method of accounting described in the financial statements, and b. the financial position, results of operations, and changes in financial position in conformity with generally accepted ac- counting principles with regard to the financial statements of the Water and Sewerage Department. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Kennedy and Coe Certified Public Accountants June 23, 1986 Page 2 2. We have made available to you all financial records and related data, including all minutes of the City Commissioners. 3. We are not aware of any a. Irregularities involving management or employees who have sig- nificant roles in the system of internal accounting control. b. Irregularities involving other employees that could have a material effect on the financial statements. c. Communications form regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the financial statements. 4. There are no related parties for which transactions should be disclosed in the financial statements. 5. We have complied, to the best of our knowledge, with all aspects of regulations, contractual agreements, and bond ordinances, that would have a material effect on the financial statements in the event of noncompliance. 6. We have complied, to the best of our knowledge, with all applicable Kansas Statutes except as disclosed in the financial statements, which in the event of noncompliance might require disclosure in the financial statements in accordance with requirements of the State Municipal Accounting Board. 7. We are not aware of any material liabilities or gain or loss contin- gencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5. 8. There are no unasserted claims or assessments that the City Attorney has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5. 9. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. The adjusting journal entries as of December 31, 1985, which have been proposed by you, are approved by us and will be recorded by us in our accounting records. Kennedy and Coe Certified Public Accountants June 23, 1986 Page 3 10. No events have occurred subsequent to December 31, 1985, which, had they been known at that date, would have required adjustment to the financial statements. Respectfully submitted, 44 Rufus LI Nye, City Manager D.L. Harrison, City Clerk M. E. Abbott, City Treasurer b CI'I`Y OF SAUNA AREA CODE 913 6279653 CITY - COUNTY BUILDING 300 WEST ASH PO. BOX 746 SALINA. KANSAS 67402-0746 June 12, 1986 Kansas Commission on Civil Rights 214 West Sixth Liberty Building, 1st Floor Topeka, Kansas 66603 Gentlemen: CITY CLERK'S OFFICE D.L. HARRISON, CMC M . ABBOTT In connection with an examination of the financial statements of the City of Salina, Kansas, for the year ended December 31, 1985, and pursuant to the Compliance Supplement for Single Audits of State and Local Governments printed in 1982, please provide our auditors, Kennedy and Coe, CPAs, P. 0. Box 1100, Salina, Kansas 67402-1100 with information on the nature and status of any complaints filed with your office or any investigations made by your office for the period from January 1, 1985, to the present involving Federal Funds of the City of Salina. A self-addressed stamped envelope is enclosed for your convenience. Thank you for your cooperation. Very truly yours, ussy— D. L. Harrison City Clerk CLARK, MIZE & LINVILLE CHARTERED C. L. CLARK JAMES P. MIZE HAILING ADDRESS: L.O. BENGTSON P.O. BOX 380 AUBREY G. LINVILLE SALINA,KS 07402.0380 JAMES T. GRAVES PETER L. PETERSON JOHN W. MIZE LAW OFFICES AT: GREG A.BENGTSON 129 SOUTH EIGHTH LAWTON M. HUSS SAUNA,KANSAS DANA P. RYAN (913)820-8325 L. A. Me MALLEY OF COUNSEL July 18, 1986 Kennedy & Coe �oRT YOUR F1ttS P.O. Box 1100 Salina, KS 67402-1100 Re: City of Salina Dear Sirs: The following is an outline of the information requested in conjunction with your audit of the City of Salina. PENDING OR ASSESSMENTS: LITIGATION, CLAIMS, AND (1). Huey vs. City of Salina, Case No. 83-4092, Federal District Court. This case was pending as of December 31, 1985. The plaintiff alleged that her civil rights were violated by the City, Saline County, and others by reason of a strip search prior to being committed to the Saline County jail. This case was turned over to Republic Insurance Company, who carries the City's employee liability insurance. The insurance company employed Carl Quarnstrom of Shaw, Hergenreter and Quarnstrom of Topeka, Kansas, to defend the case on behalf of the City of Salina. By order of the Federal District Court dated March 14, 1986, this case was dismissed with prejudice. This dismissal was the consequence of a settlement by agreement between the parties without the admission of any fault or liability by any of the parties. (2). Gilman vs. City of Salina, et al., Case No. 85-1653-C, Federal District Court. This case was filed on June 17, 1985, and was pending as of December 31, 1985. The defendants include the City of Salina; Board of County Commissioners; Al Naes, Saline County Sheriff; John Woody, Chief of Police; and unknown police and sheriff department employees. Plaintiff alleged that on June 17, 1983, she was arrested and subjected to a strip search. Plaintiff sought actual and punitive damages in excess of $650,000. Kennedy & Coe July 18, 1986 Page 2 The City's liability insurance carrier employed the firm of Kahrs, Nelson, Fanning, Hite and Kellogg of Wichita, Kansas, to represent the City and police officers. That case has also been dismissed with prejudice based upon a settlement agreement between the parties without the admission of any fault or liability by any of the parties. (3). Tremblay vs. City of Salina, et al., Case No. 85-2451-0, United States District Court, District of Kansas. This case was filed on September 10, 1985, by Ron Tremblay, in which he alleges he was unlawfully discharged from his employment in the form of a forced resignation. Tremblay is seeking $500,000 in compensatory damages on each of four counts contained in the suit, reinstatement of his job, and punitive damages in an unspecified amount. Discovery in the case is presently nearing completion, with pretrial scheduled during August, 1986. The City is vigorously contesting the case. All of Tremblay's claims arise within the context of his voluntary resignation from his position. An unfavorable outcome is not anticipated in the lawsuit. (4). Cit of Salina vs. Star B, Inc., et al., Case No. 85 C -372-A, District Court, Saline County, Kansas. This case was originally the condemnation proceeding by which the City acquired title to several properties in conjunction with the Salina downtown improvement project. Star B, Inc., the owner of three of the parcels in the project, has appealed from the appraiser's award in the case. The City has paid the appraiser's award of $288,500 into the Court as required by Kansas law. The proceeding is now in the final stages of discovery. The three appraisers utilized by the City for purposes of trial on the issue of just compensation have appraised the property in a range of $262,000 to $275,000. The appraiser hired by Star B, Inc. has appraised the properties to have a total value of $536,000. The matter will undoubtedly proceed to a jury trial on the issue of just compensation. The City's level of exposure amounts to the difference between the $288,500 paid for the properties and Star B, Inc.'s appraisal of $536,000. Given the consistency between the valuation given by the Kennedy & Coe July 18, 1986 Page 3 Court appointed appraisers and the appraisers retained by the City, it is not anticipated that an award will result in excess of the amount already paid. It is difficult, however, to predict how the jury will respond to the wide range between the City's and Star B's respective appraisals. (5). George Washington vs. City of Salina, et al., Case No. E -4100-86W, Kansas Commission on C vil Rights. On January 6, 1986, George Washington, an applicant for a Senior Clerk position with the Salina Water Department, filed his claim with the Kansas Commission on Civil Rights alleging that he was discriminated against in the employment selection process due to his sex. An investigator from the Kansas Commission on Civil Rights has conducted a probable cause hearing with the City of Salina and the complainant. The City is currently awaiting the Commission's determina- tion of whether probable cause exists in the case. The com- plainant has not at this time asserted a monetary claim. (6). Wayne Cederberg vs. City of Salina, et al., Case No. E -4334-86W, Kansas Comm ssion on Civil Rights. On May 9, 1986, Wayne Cederberg, a City Street Department Equipment Operator was terminated for failure to perform his routinely assigned tasks. Mr. Cederberg has filed a complaint with the Kansas Commission on Civil Rights alleging that his termination was based upon his age. The City has formally responded to the complaint and denies the allegation. An investigator from the Kansas Commission on Civil Rights is scheduled to conduct a probable cause hearing with City representatives and the complainant on July 24, 1986. Mr. Cederberg's complaint does not include any specific request for monetary damages. A favorable outcome is expected in the case. Mr. Cederberg is 51 years of age. Among the approximately 75 persons employed by the Salina General Services Department, 25 are older than Mr. Cederberg. (7). The Brown Mackie corporation vs. The City of Salina, Case No. 86 C-59, Saline County District Court. Brown Mackie Corporation initiated the lawsuit against Kinney Shoe Corporation to recover unpaid rent for which Kinney's downtown Salina location previously leased from Brown Mackie. Kinney Shoe Cor- poration filed a third party petition against the City of Salina seeking indemnification for any rent for which it may be held liable to Brown Mackie and for the $6,000 relocation/lease termination payment the City was to pay Kinney in conjunction with acquiring the location for expansion of a downtown arcade. Kennedy & Coe July 18, 1986 Page 4 Counsel for Kinney Shoe Corporation and the City have reached a negotiated settlement of Kinney's claims against the City in the case. Subject to the City Commission's approval of the negotiated settlement, this matter should be dismissed within the next two weeks. UNASSERTED CLAIMS AND ASSESSMENTS: This will confirm our understanding that whenever, in the course of performing legal services of the City of Salina with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure, if we form a professional conclusion that we should disclose or consider disclosure concerning such possible claim or assessment, as a matter of professional responsibility to the City we will so advise the City and will consult with the City concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards No. 5. If you have any questions or need additional information, please advise. Very truly yours, CITY OF SALINA, KANSAS Greg A. Bengtson City Attorney GAB/dg cc: D. L. Harrison City Clerk bc: Rufus Nye City Manager � � ) i a \ d ! k @ ` ), n / CD � ] c � } ; ;! 2 0 � 4 � Gk ) E2� 2 �■® e �cm a �7m §)q\ . S . . 2 = o- f ! $ ƒ e _ \4 )j @ o E :ƒ }t- - / ) G ~ 2 !/ o § q � \ � \| ( \ � . � I ( n / 2 §�¢ , �ca jm §¢� ( 00 c � 2 � f E 0 §® =w m@ 0 w g -3 - � ) R ~ 2 £) ( � � ��co 3 \ / ( \ § ) $ £ > K /� 0 £ a g _ « . § R\ \ 5. \ !CL f � � C } ; E� �.% \}� ■ ¥ _E � � 2 f E . m CD . e ;\ \ e z5) ® § .\ 2 |( � ( \ Co . \ . . . . & . cm STATE OF KANSAS 9 DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor JAMES R. COBLER Director of Accounts and Reports To the Governing Body: City of Salina Salina ' Kansas July 29, 1986 State Office Building Topeka, Kansas 66612 (913) 296-2311 The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124. Date of Audit Report: June 23, 1986 Municipality Audited: City of Salina Date Received in This Office: July 29, 1986 Audit Report Covering Audit Period Financial Statements December 31, 1985 Report by: Kennedy and Coe Salina, KS Licensed Municipal Public Accountant in charge of audit: License No. Certified Public Accountant David Mills in charge of audit: Permit No. CPA 2682 Very truly yours, James R. Cobler, Director Division of Accounts and Reports by "✓� '�• Original to be attached to voucher and filed with Clerk of Municipality. Blue Copy for Accountant's File. AR -102 (7-29-76) • MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE ' RALPH E. REIT2. C.P.A. METIREN ROBERT D. WILBUR. C. P. A. CERTIFIED PUBLIC ACCOUNTANTS MANAGING PARTNER JOHN W. AOS. C.P.A. IRETIREDI P.O. BOX I ICO. SALINA, NS 57.02-1100 - UNITED BUILDING P, O. BOX 1100 E. T. BHIA. C.P.A. wETIREOI SALINA. KANSAS. 6%402.1 100 L. M. HERTZ. C.P-A. IRETIREOI OFFICES - - ROBERT D. WILBUR. C.P.A. KANSAS: SCOTT CITY 913 - 825-1561 •: MANAGING PARTNER ANTHONY SMITH CENTER - R, MICHAEL BEATTY. C,P.A. COIBY WICHITA 'PARTNER IN CHARGE CONCORDIA NEBRASKA: ADLEY E. JOHNSON. CP. A., PARTNER GOODLAND MCCOD. - DON P. DIEOERICH. C PA.. PARTNER GREAT BEND OKLAHOMA: MARYSVILLE ALVA _ PAVE A. MOTE, C.P.A., PARTNER ALIEN WBBBER, C.P.A. PARTNER PRATT COLORADO: - - GERALD L HUNTER. C.P.A.. PARTNER SALINA LAMAR ' NURT18 G. 81ENER4. C.P.A. PARTNER WESTMINSTER July 28, 1986 GALE A. HEUSEEL. C.P.A. PARTNER Municipal Accounting Section _Department of Administration Division of.Accounta and Reports . State Office Building Topeka, Kansas 66612 Gentlemens Enclosed,pleaae find two copies of the financial statements of the City of Selina, Wass for the year ended December 31. 1985v and our report thereon, and two copies of a letter setting forth the City's comments regarding the auditor's findings. We understand one copy of the financial statements and the City's letter will be.forwarded to the Rational Clearinghouse for Single Audit Reports. Very truly yours,., Certified Pub Ac6ouatant PAMsjlb Enclosures ccs Mr. Don Harrison City Clerk 300 West Ash, Saline. Kansas 6740i- I ROBERT D. WILBUR. C. P. A. -MANAGING PARTNER P.O. SOX I IOM'SAUNA. HE E7402-1100 OFFICES KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLON WICHITA - CONCORDIA NEBRASKA: GOODLAND MCCOOH GREAT BEN. OKLAHOMA: MARTSVILLE ALVA PRATT COLORADO: 1 SAUNA LAMM WESTMINSTER MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS - KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS 1* UNITED BUILDING P. O. BOA 11 GO , SALINA. KANSAS 67402.1 100 913 - 825.1561 July 28. 1986 RALPH E. REITZ. C.P.A. IRE11RM' JOHN W. PODS. C.P.A. IRETIREOI Q. T. SHEA, C, P.A. WETIREW L M. MERTZ. C.P.A. IRETNIEDI ROBERT O. WII.§UR-. C.P.A MANAGING PARTNER R. MICHAEL BEATTT. C.P.A. J PARTNERAN{NARGE ADLEY E. JOHNSON. C.P.A.. PARTNER DON P. DIEOERICM. C.P.A.. PARTNER PAUL A. MOTT. C.P.A.. PARTNER' ALLEN W£BBER. C.P.A,. PARTNER GERAID L. HUNTER; C.P.A., PARTNER KURTIS O, SIEMERS. C.P,A., PARTNER DALE A. HEUSZEL. L.P.A.. PARTNER Mr. Mickey W. Mosier Saline. County Attorney 300 West Ash Salina. Kansas.67401 Dear Mr. Mosier: Enclosed please flud'one copy of the financial statements of the City of Salina, Kansas for the year ended December 31, 19850 and our report thereon. Very truly. yours, Certified Public ccountant PAMtjlb Enclosure cc! Mre Don Harrison City Clerk 300 West Ash Salina, Kansas 67401 CITY OF SAUNA AREA CODE 913 82]-9653 CITY COUNTY BUILDING 300 WEST ASH P.O. BOX 736 SAMNA, KANSAS 6]4020]36 July 28, 1986 Director Office of Revenue Sharing 2401 E Street N.W. Columbia Plaza Highrise Washington, D.C. 20226 Dear Sir: CITY CLERK'S OFFICE D . HARRISON, CMC M . ABBOTT Enclosed is one copy of the Financial Statements and Auditors' Report for the year ended December 31, 1985, of the City of Salina, Kansas. Following are our comments on the findings and recommendations of our auditors. These comments are furnished in accordance with paragraph 13.d. of OMB Circular A-128, Audits of State and Local Governments. Auditors' Report on Internal Control Auditors' fi��ndinu�s - Disbursement of funds lacks segregation of duties to the extent that the City Clerk, who approves all invoices for payment, also has control of a key to the machine used for signing checks. A second key to the machine does not appear to be adequately controlled. City's comment - The City Clerk no longer has control of the key used to operate the e c Teck signing machine, effective in November, 1985, which should strengthen internal control over disbursements. Our auditors have Informed us that a second key does not appear to be adequately controlled and recommended the City Treasurer maintain control over all keys allowing operation of the machine. We are considering the implementation of this recommendation. Auditors' findings - No independent review of data submitted in Bureau of ends reports made. City's comment - The auditors noted several differences in Form F -21A. This form does not provide a ready means of self -checking in that only selected financial data is required. In preparation of future reports, we will maintain a better record of the detailed data reported and will attempt to develop a means of checking the data prior to submission of the report. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Mr -1 I 09�m WE bm CITY CLERK'S OFFICE D . HARRISON, CMC M . ABBOTT Enclosed is one copy of the Financial Statements and Auditors' Report for the year ended December 31, 1985, of the City of Salina, Kansas. Following are our comments on the findings and recommendations of our auditors. These comments are furnished in accordance with paragraph 13.d. of OMB Circular A-128, Audits of State and Local Governments. Auditors' Report on Internal Control Auditors' fi��ndinu�s - Disbursement of funds lacks segregation of duties to the extent that the City Clerk, who approves all invoices for payment, also has control of a key to the machine used for signing checks. A second key to the machine does not appear to be adequately controlled. City's comment - The City Clerk no longer has control of the key used to operate the e c Teck signing machine, effective in November, 1985, which should strengthen internal control over disbursements. Our auditors have Informed us that a second key does not appear to be adequately controlled and recommended the City Treasurer maintain control over all keys allowing operation of the machine. We are considering the implementation of this recommendation. Auditors' findings - No independent review of data submitted in Bureau of ends reports made. City's comment - The auditors noted several differences in Form F -21A. This form does not provide a ready means of self -checking in that only selected financial data is required. In preparation of future reports, we will maintain a better record of the detailed data reported and will attempt to develop a means of checking the data prior to submission of the report. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Office of Revenue Sharing Page 2 July 28, 1986 Auditors' �find�ing�__s- One employee in the City Clerk's office totals cash receipt ocumentsand prepares the deposits to the bank. Cit 's comment - We are considering the segregation of those two functions ee ween two employees. Other findings included in the report Auditors' findings - The notice of availability of the December 31, 1984, audit report was not published within 30 days of completion and receipt of the report. City's comment - City management was aware of the requirement that the notice need to be published, but it was not published, apparently due to oversight. We have been informed that the Office of Revenue Sharing does not consider this to be a major problem. We intend to publish the notice of availability of the December 31, 1985, audit report within the 30 day period. Very truly yours, a,4 w -' D. L. Harrison Director of Finance / City Clerk DLH/js Enclosure THE CITY OF SALINA, KANSAS DATE 12/11/85 PURCHASE ORDER PURCHASE ORDER NO. 9473 VENDOR NO. VENDOR Kennedy & Coe Box 1100 Salina, KS 67402-1100 CHECK NO. DATE PAID FUND City Clerk SHIP TO 03-291 DESCRIPTION AMOUNT 1985 Encumberance 1985 Audit Contract .6,500.00 Req. #26615 This is your authorization to fill the above order. RETAIN THIS COPY FOR YOUR FILES, and return invoice for items shipped, to the City of Salina, Box 746, Salina, Kansas 67401. NO BACK ORDER, such items Purchasing Agent will be reordered, if needed. VENDOR'S COPY Director of Finance THE DATE '12/11/85 PURCHASE ORDER NO. 13474 VENDOR NO. CITY OF SALINA, KANSAS PURCHASE ORDER CHECK NO. VENDOR Kennedy & Coe Box 1100 Salina, KS 67402-1100 G� DATE PAID FUND Rev. Sharing SHIP TO 67-299 DESCRIPTION AMOUNT 1985 Encumberance 1985 Audit Contract 3,500.00 Req. #26616 This is your authorization to fill the above order. RETAIN THIS COPY . FOR YOUR FILES, and return invoice for items shipped, to the City of Salina, Box 746, Salina, Kansas 67401. NO BACK ORDER, such items Purchasing Agent _ Director of Finance will be reordered, if needed. VENDOR'S COPY r` THE DATE 12/11/85 PURCHASE ORDER NO. 8475 VENDOR NO. CITY OF SALINA, KANSAS. i PURCHASE ORDER CHECK NO. DATE PAID i VENDOR Kennedy & Coe Box 1100 Salina, KS 674021100 FUND Water & Sewerage SHIP TO 90-1225 DESCRIPTION AMOUNT 1985 Encumberance 1985 Audit Contract 9,000.00 Req. #26617 This is your authorization to fill the above order. RETAIN THIS COPY FOR YOUR FILES, and return invoice for items shipped, to the City of. Salina, Box 746, Salina, Kansas 67401. NO BACK ORDER, such Items Purchasing Agent will be reordered, if needed. VENDOR'S COPY Director of Finance THE CITY OF SALINA, KANSAS DATE' 12/11/85 PURCHASE ORDER CHECK NO. PURCHASE ORDER NO. 3476 DATE PAID VENDOR NO. FUND Bicentennial Center VENDOR SHIP TO Kennedy & Coe Box 1100 Salina, KS 67402-1100 73-299 DESCRIPTION AMOUNT 1985 Encumberance 1985 Audit Contract 4,100.00 Req. #26613 This is your authorization to fill the above order. RETAIN THIS COPY FOR YOUR FILES, and return Invoice for items shipped, to the Cily of Salina, Box 746, Salina, Kansas 67401. NO BACK ORDER, such items Purchasing Agent will be reordered, if needed. VENDOR'S COPY Director of Finance MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ROSOIT O. WILIUR. C. P. A. MANAGING PARTNER P.O. BOX 1178, SAMNA. KS 674011-1170 OFFICES KANSAS: SCOTT Cm ANTMOMY 8MRM CENTER COLBY WICHITA coRxuDIA NEBRASKA: OOOOLAMD IICCOOM art LT BERD OKLAHOMA: MARVSVSLE ALVA nun COLORADO: SALINA "MAR WESTMINSTER Mr. Don Harrison, City Clerk City of Salina P. 0. Box 746 Salina, Kansas 67402-0746 Dear Don: KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 1178 SALINA, KANSAS 67402-1170 813.0261561 December 6, 1985 R 4 REITZ. CZ ACT810 E T. BMu. C,11.H A. MET® L. M. MERTZ. C.P.A. IRETIREZII ROBERT O. WILBW. C.PA. NMIAOINO PARTNER R. MGCNAZL BUTTY. C.P.A. PARTNER. -CN CE Jp N W. POOS. C.P.A. PARTNER ADLEY E. JOHNSON. CPA., PARTNER DON P. DEDWCK C.P.A.. PARTNER PAUL A. 100". CPA. PARTNER ALLEH WEIMEI. C.P.A. PARTNER GERALD L. H M. CPA.. PARTNER RURTIS O. SIEMERS. C.P.A., PARTNER OME A. NEIHZEL. CPA.. PARTNER We estimate that of the total fee we have proposed for the audit of the City's financial statements for the year 1985 that approximately $3,000 is applicable to Federal Revenue Sharing Funds. We understand that federal grant funds will be received before the end of 1985 in connection with the Downtown Development Project and that expenditures applicable to this grant will also be incurred in 1985. Although these transactions in 1985 may not be voluminous, they will require audit effort, primarily, in the area of compliance. We estimate the 1985 audit cost to be approximately $1,500, depending upon the volume of activity in 1985. If you have any questions, please give us a call. Sincerely, Certified Publ Accountant PAM: jlb ROBERT D. WILSM. C. P. A. MA'HAMM PARTNER P.O. BOR 11W. SAUNA. NS S7402-1 170 OFFICES KANSAS: SCOTT Cm ANTHONY SMR" CENTER COLEY WICWTA CONc",S. NEBRASKA: OOOOLAND MCCOOK CREAT Sim OKLAHOMA: MMY11M E ALMA MATT COLORADO: SAUNA LAMAR WESTMINSTER Mr. Rufus Nye, City of Salina P. 0. Box 746 Salina, Kansas Dear Mr. Nye: MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS City Manager 67402-0746 UNITED BUILDING P. O. BOK 1179 SALINA. KANSAS 67402-1179 913-625-1561 December 4, I C17'� 1985 CITE` OFFICE RALPH E. RMT1. C.P.A. MUMUS E. T. SHEA. C.P.A. WETIRmI L M. MFATE. C.P.A. (RETIRED) ROB[AT O. WILSUR. C.PA. MANAGING PARTNER R. MMHA SEUTTY. CPA. PMTNMR HMOE JOHN W. PODS. C.P.A.. PARTNER AOLEY E. JOHNSON. CPA- PARTNER OON P. MMEMCH. C.P.A.. PARTNER PAUL A. MOTT. C.P.A. PARTNER LLEN WEBSEM. C.PA.. PARTNER UD L. MUMOI. GP.A.. PARTNER ln"S O. WEARERS. C.P.A.. PARTNER bAUE A. HEUSiPL. CPA.. PARTNER Enclosed please find our proposal for the audit of the financial statements of the City of Salina, Kansas for the year 1985. We wish to point out to you that this proposal contemplates that the audit will be conducted under the Single Audit Concept as it pertains to Federal grants. It is our understanding that the Federal grants received in 1985 are limited to Federal Revenue Sharing Funds. If you have any questions about the enclosed please contact us. Very truly yours, �y" e� Certified ublic Accountants cc: Mr. D. L. Harrison, City Clerk MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE ROBERT D. WILBUR. C. P. A.. CERTIFIED PUBLIC ACCOUNTANTS ----RALPH --RAL'" E. RUIZ. C.P.A. IRETIR. MANAGING PARTNER P.O. BOM 1179. SAUNA. NE 8710E-1178 I UNITED BUILDING P. O. BOX' 1178 IF ((�� 1 '� I ' J E_ T. BNEl C.P.A, gETgEq L. M. HERTZ, C.P.A. RETPOUP SAUNA, KANSAS 67402-1179 OFFICES ROBERT M uUN. C.P.A. KANSAS: 018 .825.1581 9 NANAGNG PAgrryER aconnn I yy ,y 1 985 R. MIC AEL BEATTY. C.P.A. ANTHONY SMITH CENTER PMTIERiNLNAFOE COLEY WICHITA CONCOM A NEBRASKA: JOHN w. MOS. C.P.A.. PARTNER a 11'tt! ! -17� EY E JOHNSON. C.P.A.. PARTNER GOpOLAryp MCCOOK 'vl . ....... .r t_.. -1 ,.. , I V GREAT BEND GREAT SEN OKLAHOMA: ; November 19 1985 t--- ----- UpN P. WEDE111Cx. C.P.A.. PARTNER ALMA , PAUL A. MOTT. CHP'.A.. PARTHER MATT COLORADO: , ALLEN WEBS". C.P.A., PARTNER SAUNA LAMM GERALD L. HUNTER. C.P.A.. PARTNER WESTMINSTER NURTIS G. SUMEWS. C.P.A.. PARTNER DALE A HEUSZEL. C.P.A.. PARTNER Mr. Rufus L. Nye, City Manager City of Salina P. 0. Box 746 Salina, Kansas 67402-0746 Dear Mr. Nye: In connection with our examination of the financial statements of the City of Salina for the year ended December 31, 1984, we would like to make the following comments/recommendations for your consideration. Control over Cash Disbursements Should be Improved We noted that the City Clerk, who audits and approves all expenditures of the City for payment, also maintains control over the signature plate used on all checks to disburse funds. It is preferable from an internal control standpoint that the approving of expenditures and disbursement of funds be performed by two different individuals. We recommend that control of the signature plate be transferred to someone who neither approves expenditures nor records transactions in the accounting records nor reconciles the bank accounts. It appears that the Citv 6'A Treasurer 3,ould be the most logical choice to control the signature plate. Depository Security As disclosed in the notes to financial statements, the deposits of the City at Planters Bank and Trust Company and The First National Bank and Trust Company appear to be undersecured on certain dates during 1984., Determination of the adequacy of security has become somewhat more difficult in the last two years because of the requirement of the Kansas statute that the depository balance be compared to the market value of the security provided for purposes of determining the adequacy of the security„ and beginning July 1, 1985, the required percentage of security pledged increased from 70% to 100% except for legally designated peak depository periods. 4(� We recommend that the City require each of its depositories provide, on at least a quarterly basis, the market value of securities pledged by the depository to secure the City's deposits. Mr. Rufus L. Nye, City Manager City of Salina November 19, 1985 Page 2 The City Treasurer then will have more current information with which to determine whether the City's deposits are adequately secured taking into account changes in the market value of securities pledged. Water and Sewerage Department Inactive Accounts Receivable Need Attention The accounts receivable of the Water and Sewerage Department include approximately $51,000 of inactive accounts as of December 31, 1984. These are accounts with a balance which have been disconnected from the water and sewerage system. Some of the accounts are nearly five years old. We recommend that these accounts be reviewed and turne�Tover to collection agency for collection, and/or charged off against the allowance for uncollectible accounts. We also recommend that a policy be established, where once an account becomes past due (e.g., 90 days past due, but this limit should be established by City management) and the City has made its own collection effort, the account be turned over to a collection agency. This should result in more timely collection of these accounts and should increase the collections of these accounts so as to minimize the loss from bad debts. If the account is not collected within a reasonable time (e.g., another 60-90 days), the account should be charged off. Included in the inactive accounts are some customers which had Sanitation service only, and the Water and Sewerage Department appears to be standing the loss on these accounts. We recommend a listing of these accounts be provided to the Sanitation Department for review and approval of accounts to be charged off or turned over to collection agency. If the collection effort for Sanitation Department accounts is to rest solely in the Water and Sewerage Department, we recommend this be established through a collection policy. Water and Sewerage Property, Plant and Equipment Records The City undertook a substantial effort several years ago to engage a firm of professional appraisers to inventory and determine the cost of the property, plant, and equipment of the Water and Sewerage Depart- ment. A continuous effort is needed to maintain this information and update for asset acquistions and dispositions. In order for the records to be properly maintained and reconciled to the Departments general ledger, the following information is needed by the Water and Sewerage Department on a monthly.basis. 1. The differences between the estimated cost of assets and actual invoice cost (e.g., charges such as freight). This could be determined if copies of invoices were provided when received. Mr. Rufus L. Nye, City Manager City of Salina November 19, 1985 Page 3 2. A detailed listing of transactions posted to the Construction in Progress account on the general ledger each month. This may involve a change to the computer program for the general ledger or>. the preparation of a manual list. 3. A detailed listing of encumbrances at each month end related to capital expenditures. We recommend that the above information be provided to the Water Department personnel monthly by the City Clerk's office or that Water Department personnel be designated to obtain such information from the City Clerk's records as needed. Review Insurance Coverage of Water Department Prepaid Supplies It is our understanding that prepaid supplies of the Water and Sewerage flw�x '6jV s Department may not be covered by insurance. Prepaid supplies consistsW % of miscellaneous parts kept on hand for repairs to the Water and Sewerage System. We recommend that consideration be given to the need for insurance coverage for these parts, if any. If you have any questions regarding our comments, please contact us so we may discuss them with you. Very truly yours, Certifie Public Accountants cc: Mr. Don Harrison, City Clerk 0 HOME OFFICE: P.O. BOX 1179. SA4.NA. KS 37401 OFFICES KANSAS ANTHONY SALINA COLEY SCOTT .,TV CONCORDIA EMRN CENTER OOOOLAND WICHITA GREAT BEND NEBRASKA: MARYSVILLE MCCOOK PRATT OKLAHOMA: - ALVA MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE RALPH 6 R61G.P.P. EDI CERTIFIED PUBLIC ACCOUNTANTS E. T. 6XEA. C .PP:A. IP ETIR REDI EOI UNITED BUILDING P. O. BOX 1178 L. M. HERTZ. C,PA, METREDI SALINA, KANSAS 67401 ROBERT D. WILBUR. C.P.A. 213 - 825.1561 MANAGING PARTNER - JOHN W. PODS. C P.A., PARTNER _ ADLEV E. JOHNSON. C.P.A. PARTNER DON P. REDERICH. C.P.A.. PARTNER PAUL A. MOTT. C.P.A.. PARTNER ALLEN WEBBER. QP A.. PARTNER November 19 1985 GERALD L. HUNTER, C.P.A., PARTNER A R. MICHAEL BEATTY. CPA.. PARTNER XVRTIS O. SIEMERS. CPA- PARTNER LARRY D. HARVEY. C.P.A., PARTNER Mr. Rufus L. Nye, City Manager City of Safina P. 0. Box 746 Salina, Kansas 67402-0746 Dear Mr. Nye: In connection with our examination of the financial statements of the City of Salina for the year ended December 31, 1984, we would like to make the following comments/recommendations for your consideration. Control over Cash Disbursements. Should be Improved We noted that the City Clerk, who audita and approves all expenditures of the City for payment, also maintains control over the signature plate used on all checks to disburse funds. It is preferable from an internal control standpoint that the approving of expenditures and disbursement of funds be performed by two different individuals. We recommend that control of the signature plate be transferred to someone who neither approves expenditures nor records transactions in the accounting records nor reconciles the bank accounts. It appears that the City Treasurer would be the most logical choice to control the signature plate. Depository Security � V, As disclosed in the notes to financial statements; the deposits of the City at Planters Bank and Trust Company and The First National Bank and Trust Company appear to be undersecured on certain dates during 1984. Determination of the adequacy of security has become somewhat more difficult in the last two years because of the requirement of the Kansas statute that the depository balance be compared to the market value of the security provided for purposes of determining the adequacy of the security, and beginning July i, 1985, the required percentage of security pledged increased from 70% to 100% except for legally designated peak depository periods. We recommend that the City require each of its depositories provide, on at least a quarterly basis, the market value of securities pledged by the depository to secure the City's deposits. , Mr "'Rufus E': Nye' City Manager cityof• Salina Novdmber 19 4085.. Ow ,r �tx,I l .: } ' • , tri the City. Tteasdre Wikif l , have more• Current information with v rich to determine whether the �City'a:deposits >are 4leggately secured taking into' k-04ot' .Ch�n Haff 1 t th •t aaarket .,i' slue f .securities ¢ledged Water sad ewera�e'De'partmanE inactive Accounts Receivable geed Atte'ntion;, �. -- The»accoutt „fregeivabl.e� of the Water,:end t$etafarag2; tapertment ,tndi ae . apptioatima[I1+`$5,00U •of I inactive accoyifts `ee of 'Aecember "31;°1984. TEteseN,, aeC,4 mew 4h'a baYahce;vwh vb,Bap��(�een`fifecggnected .fiom the water gnd seweta e' ayatem.�'SomB of�thd acd'ou&t,e i<re nearly €ive years ), 61d. We tecommead that these accounts be''rev iewed:and turned over to coilettLo& V� eot* for"dot7ettion,"-and(pr ,charged of$ a ainat, the r.; . all�wa�s•�e.,,�or un�ea9legtible We also recotMepd thaN a polio be establiahedy where b�tae`an count becomes,pasrt,dim ( 'gr, 90 dairy past due,"but this limit sbould be established by Cxdy`botagement) agd the, City bas made its own.co�ip'cGion effort, xhg aehotint.,ha turned; over t¢, a collection ag2 ncp. ,'`This ahoit;i$ ' Y le#ult` id mote timely:tollett,on;waf thesewh$ce6µitta and ahgld 1Atrease etre eollention8, .d$ thnag a cour&q. so ; a's )t'6,'—M im}z� ihQ l"dsa from bad < debts.: account is not tailected wij� in a r"' nable time` te•.g., estothar ` 1JO day&)y`�i�e dc"ount-should be .chatged:rOff Znciuded` 16.''the it stive `'i9counta� are spme ecu tamexq""which had sanitat�at� rvace anly, apd the Wafer ju&'Oewerags'Depe tment appears the' lv a act` these accoutt s We recommend�`a Iss, aug. of w Ehese;'$ eQ tftts 9 o:�ded tgt,tite'Sac itationwffeparement for ,review end ` approval 't'f acoouiitto be cF{arged off fir "turned over to Fttllection pg flcy, If the &0 11 effort fon�ata,#ation Ilepagtment adc�o�anta is, z+ao xea",t o ely ux rife', At`,er .gid Sewerage ��gmibtreAt „we recommend tnie a Abe esta6t}shed" through a 'r'olection policy, ;. Water, and Sewerage Bropeaty yrllant'and EcluiDmentr Records ' .y mtte it, undertoot� a 6berspeial `effOtt beverrrtl years ag6.10 engage a f;gym �r'f p�gfeesiQn&1'^apjiraisets to inventory and' determine,` the cost-of a,� ne'ipropertyc plant,, and „%quipitent off.tbe1 Water ands' Sewes � �ipafit r > .•;inept. A dbht n�saue, ffort ¢e needed tq.ma orai hhie in£ormat on and upstate £a gsset acqui$t�oda.and:dispas£tions. in order Ar the stec'ordie kM` Y to'be prdodflyA atintained and reconciled C'q the; aparCminto general. ledge;,, tI.he 461iooiogl id6rmgtion ,is_ neade8 � y`,the Wster ;ao Sewerage .. + ] apartmept` otY a. mo y�mbasu:9, F „ 1 µ The diffareney betsteep tits eet`imagted coat of &saeta,.and��gctual invoireCodkte gs;ctierges suet srexght)'.*Thio" could ba detemginedrsf`cop$es of invoices were pbidek`rrwhen''reeeiyed. y V. Mr. Rufus' 1, Nye,-`City Kane -T w, Cit$ 'of Salina •, hovember•l:9# 1985 ': _ Page 3 ; •. ': t I. "A detailed Listing,of transactions posted to the. Construction in,• progress account on. the general ledger each month.. This may involve .6 change to the computer program for. the general ledger or the preparation of a manual 13at •, 3.. A detailed-Listing of, encumbrances at eachmonth-end relatedto capi.tal,`eapendtures.` ' We recoiimend that: the above 'information be provided. to the, Water.. Depattme6t personnel ,monthly'by-the.City Clerk's office or that-Vater ; Depa-vtMot, parsonnel.be.designAted'to obtain sgch information from the Cit g 'Clerk's 'records as needed. Review insurance CoveragAe of Water bepartment Prepaid Supplies It'is.our understand€ng that prepaid supplies of the Water and Sekerage Depaitment may, not be covered by insoran" , prepaid supplies cons7iis" MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MOM- OFFICE: P.O. BOX 1179. BALINA. KS 07401 OFFICES KANSAS: ANTHONY- "' BALINA COL9Y SCOTT CITY CONCORDIA SMITH,CENTER GOOOLAND WICHITA GREAT BENo NEBRASKA: MARYSVILLE MCCOOK PRATT OKLAHOMA: ALVA Mr: Mickey W. Mosier Saline County Attorney 300 West Ash Salina,,Kansas 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P: O. BOK 1179 SALINA, KANSAS 67401 813 - 626.1561 November 19, 1985 RALPH E. REITZ. C.P.A. IRETIREOI E. T. SHEA, CPA. RETIRED) L M. MERTZ. C.P.A. RETflEOI ROBERT O. WILBUR. C.P.A. MANAGING PARTNER JOHN W. PODS. CPA.. PARTNER AM" E. JOHNSON, C.P.A.. PARTNER DON P. MEDERICH. C.P.A.. PARTNER PAUL A. MOTT, C.P.A.. PARTNER ALLEN WEBBER, CPA., PARTNER GERALD L. HUNTER. C.P.A.. PARTNER R. MICHAEL BEATTY. C.P.A., PARTNER HURTIB G. SIEMERS, C.P.A.. PARTNER LARRY D. HARVEY. C.P.A.. PARTNER Dear Mr. Mosier: Enclosed please find one copy of the financial statements of the City of 0 Salina, Kansas for the year ended December 31, 1984, and our report thereon. Sincerely, D PAM: ilb Enclosure cc: Mr. Don Harrison City' Clerk 300 West Ash Salina,.Kansas 67401 X� a, Certified Public Accountant MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE HOMEOFFICE: CERTIFIED. PUBLIC ACCOUNTANTS E. E. REITZ. C.P.A. (RETIRED) P.O. BOX 1175. SAUNA. KS 87401. E. T. SHEA. C.P.A. (RETIRED) UNITED BUILDING P. O. BOX 1170 l M. MERTZ. CPA, (RETIRED) OFFICES SALINA, KANSAS 67401 ROBERT D-WILSUR. C.PA. KANSAS:- 813 - 825-1581 - MANAGING R ANTHONY BALINq . JOHN W. OOS, E,C PA., PARTNER COLBT SCOTT CITY gOLEY E. JOHNSON..C C.P.A.. PARTNER CONCORDIA SMITH CENTER - DON P. DIEDERICH. C.P.A.. PARTNER GOODLAND - WICHITA + GREAT BEND NEBRASKA: PALL A. MOTE, R., PARTNER . ALLEN WEBBER. C.P.A.. PARTNER • MARYSVILLE MCCOOKL. PRATT OKLAHOMA: 98 GERALD E HUNTER. C.P.A. PARTNER November 19, 1lVS R. MICHAEL SIEATTY, C.P.A.. PARTNER ALVA KIlRT15 G. S)EMERS, C.P.A.. PARTNER " LARRY D. HARVEY. C.P.A., PARTNER' Municipal Accounting Section Department df Adminibtration Division of Accounts and Reports " State Office. Building' Topeka,�Kansas 66612 Gentlemen: Enclosed please find one copy of.the financial statements of the City of Salina, Kansas for the year ended December 31, 1954, and our report thereon. Sincerer , DCertified'Pub7cAccountant'. PAM: jlb ' Enclosure cc: Mr: Don Harrison City Clerk 300 West Ash ' Salina, Kansas 67401 dp a CITY OF SALINA AREA CODE 813 627-8653 CITY. COUNTY BUILDING 300 WEST ASH P.O. BOX 746 SALINA. KANSAS 67402-0746 November 14, 1985 Kennedy and Coe Certified Public Accountants P.O. Box 1100 Salina, Kansas 67402-1100 Gentlemen: In connection with your examination of CITY CLERK'S OFFICE D.L. HARRISON. CMC M.E. ABBOTT THIS COPY FOR YOUR FILES (a) the financial statements of the various fund and account groups of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the cash and unencumbered cash balances at December 31, 1984, and receipts and expenditures for the year then ended in accordance with the method of accounting described in the financial statements, and (b) The financial statements of the Water and Sewerage Department of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the financial position and results of operations and changes in financial position of the Department in conformity with generally accepted accounting principles for the year ended December 31, 1984, we confirm, to the best of our knowledge and belief, the following repre- sentations made to you during your examination. 1. We understand that we are responsible for the fair presentation in the financial statements of a. the cash and unencumbered cash balances and receipts and ex- penditures in accordance with the method of accounting described in the financial statements, and G b. the financial position, results of operations, and changes in financial position in conformity with generally accepted ac- counting principles with regard to the financial statements of the Water and Sewerage Department. 2. We have made available to you all financial records and related data, including all minutes of the City Commissioners. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Kennedy and Coe Certified Public Accountants November 14, 1985 Page 2 3. We are not aware of any a. Irregularities involving management or employees who have sig- nificant roles in the system of internal accounting control. b. Irregularities involving other employees that could have a material effect on the financial statements. C. Communications form regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the financial statements. 4. There are no related parties for which transactions should be disclosed in the financial statements. 5. We have complied, to the best of our knowledge, with all aspects of regulations, contractual agreements, and bond ordinances, that would have a material effect on the financial statements in the event of noncompliance. 6. We have complied, to the best of our knowledge, with all applicable Kansas Statutes except as disclosed in the financial statements, which in the event of noncompliance might require disclosure in the financial statements in accordance with requirements of the State Municipal Accounting Board. 7. We are not aware of any material liabilities or gain or loss contin- gencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5. 8. There are no unasserted claims or assessments that the City Attorney has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5. 9. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. The adjusting journal entries as of December 31, 1984, which have been proposed by you, are approved by us and will be recorded by us in our accounting records. 61 . . `1 Kennedy and Coe Certified Public Accountants November 14, 1985 Page 3 10. No events have occurred subsequent to December 31, 1984, which, had they been know at that date, would have required adjustment to the financial statements. Respectfully submitted, Rufus Nye, City Manager D.L. Harrison, City Clerk M. E. Abbott, City Treasurer �;. .•. .;t it ?1 t ...... ...... AREA CODE 913 627-9553 CITY - COUNTY BUILDING 300 WEST ASH P.O. BOX 746 SAUNA. KANSAS 67402-0746 Mr. L. 0. Bengston City Attorney P. 0. Box 903 Salina, Kansas 67402-0903 Dear Mr. Bengston: July 30, 1985 CITY CLERK'S OFFICE D.L. HARRISON. CMC M.E. ABBOTT In connection with an examination of our financial statements at December 31, 1984, and for the year then ended, please furnish to our auditors, Kennedy and Coe, P. 0. Box 1100, Salina, Kansas 67402-1100, the information requested below involving matters as to which you have devoted substantive attention on behalf of the City in the form of legal consultation or representation. Your response should include matters that existed at December 31, 1984, and during the period from that date to the effective date of your response. (Please specify the effective date of your response if it is other than the date of reply.) PENDING OR THREATENED LITIGATION, CLAIMS AND ASSESSMENTS (EXCLUDING UNAS- SERTED CLAIMS AND ASSESSMENTS): Please furnish a list of all litigation, claims and assessments (excluding unasserted claims and assessments) asserted against the City even though legal proceedings have not started. Information regarding each case should include but not be limited to:' 1. The nature of the litigation including identification of: a. The proceedings b. The claim(s) asserted c. The amount of monetary or other damages sought. (If no amounts are stated in preliminary case filings, please so state.) d. Whether or not the potential damages are covered by insurance and, if so, to what extent (policy limits, deductibles, etc.) e. The objectives sought by the plaintiff (if any) other than monetary or other damages (such as performance or discontinued performance of certain actions.) 2. The progress of the case to date (in the process of discovery, trial or appeal.) 3. How the City is responding or intends to respond to the litigation, e.g., to contest the case vigorously or to seek out-of-court settle- ment. KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES I L Mr. L. 0. Bengston City Attorney July 30, 1985 Page 2 4. Your evaluation of the likelihood of an unfavorable outcome. (To avoid potential misunderstandings of your opinion, please avoid vague phrases such as or similar to "meritorious defense", "without substantial merit", or "reasonable chance of dismissal".) If no opinion can be expressed, please so state and explain the reasons. 5. An estimate as to the amount or range of potential loss. It is important that you express an upper limit on possible and probable losses. If no range or upper limits can be expressed, please so state and explain the reasons. Also, please identify any pending or threatened litigation, claims and assessments with respect to which you have been engaged, but as to which you have not yet devoted substantive attention. UNASSERTED CLAIMS AND ASSESSMENTS: We understand that whenever, in the course of performing legal services for us with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure, if you have formed a professional conclusion that we should disclose or consider disclosure concerning such possible claim or assessment, as a matter of professional responsibility to us, you will so advise us and will consult with us concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards No. 5. Please specifically confirm to our auditors that our understanding is correct. Please specifically identify the nature of and reasons for any limitation on your response. Please return your response directly to our auditors in the enclosed return envelope. DLH:jlb cc: Kennedy and Coe P. 0. Box 1100 Salina, Kansas 67402-1100 Very truly yours, �/ i � �,iv G-LL✓C� v D. L. Harrison City Clerk STATE OF KANSAS o,, DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor JAMES A.COBLER Director of Accounts and Reports July 15, 1985 D. L. Harrison City Clerk City of Salina 300 West Ash P.O. Box 746 Salina, Kansas Dear Member: 67402-0746 State Office Building Topeka, Kansas 66612-1574 (913) 296-2311 As you have requested, and as provided by K.S.A. 1982 Supp. 75-1120a(c) (1982 S.B. 531), I hereby waive the requirements of subsection (a) to the extent requested by the governing body for the fiscal year ended December 31, 1984 Very truly yours, James R. Cobler, Director Division of Accounts and Reports JRC:WLE:ps MEMBERS OF AMERICAN 4NSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Mr. Keith Rawlings City Planning and Community Development City of Salina... P. 0."Box 746 Salina., Kansas 67402 Dear Keith: We have discussed the audit approach for Community.Develgpment Block Grant Funds with HUD representatives in Kansas City who have informed us than the audit'of these funds must be conducted under the Single Audit Concept. We have submitted a proposal to the City Commissioners to perform the audit of the City for the year 1984 under the Single Audit Concept, and will extend the period for federal Grant reporting for CDBG Funds to include, the period from DNovember 1982 (the date of, grant approval) to December 31, 1984. This period exceeds the two year audit requirement but the HUD representatives indicated to us this would not be a problem since it is a result of the transition from the separate audit to the single audit. The proposal submitted to the Commissioners replaces the previous contract for the audit of CDBG Funds we entered into: We estimate that of the total fee proposed for the audit of the City's financial statements for 1984 that* approximately $4,500 is applicable'to the CDBG Funds. If you have any questions regarding this matter please contact us. Very. truly"yours, Certified Pub is Accountant PAM:jlb cc: Mr. Don Harrison f KENNEDY AND COE HOME OFFICE: RALPH E, REIT2. C.P.A. WETIREDI _ .CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 1178, SALINA, KS'E7401 E. T. SHEA CPA, (RETIRED) - UNITED BUILDING P. O. BOX 1'178 'L. M. MENTZ. CP A. (RETIRED) OFFICES SALINA, KANSAS 67401, . ROBERT D. WI19UR. CP A. KANSAS: - - 013 825-1561 MANAGING PARTNER ANTHONY SALINA JOHN W. PODS,C .. COLBY SCOTT CITY ,RPARTNER ' OE. JOHNSON. C.P.A.. PARTNER CONCOROIA SMITH CENTER � . D P. DIEDERICH. CPA., PARTNER DON GOODLpND WICHITA ppVL A. MOTT.OTT. C.P.A.. PARTNER GREAT SEND NEBRASKA: - - ALLEN C.P.A., PARTNER.,PART MARYSVILLE MCCOOK - � GERALD L. HUNTER, C.P.A., PARTNER L. HUN, PRATT OKLAHOMA: q • R. MICHAEL BEATTY. C.P.A.. PARTNER December 6, 1984 CPA., ELVR KURTIS G. SIEMERS, PARTNER - LARRY D. HARVEY, CRA.. PARTNER Mr. Keith Rawlings City Planning and Community Development City of Salina... P. 0."Box 746 Salina., Kansas 67402 Dear Keith: We have discussed the audit approach for Community.Develgpment Block Grant Funds with HUD representatives in Kansas City who have informed us than the audit'of these funds must be conducted under the Single Audit Concept. We have submitted a proposal to the City Commissioners to perform the audit of the City for the year 1984 under the Single Audit Concept, and will extend the period for federal Grant reporting for CDBG Funds to include, the period from DNovember 1982 (the date of, grant approval) to December 31, 1984. This period exceeds the two year audit requirement but the HUD representatives indicated to us this would not be a problem since it is a result of the transition from the separate audit to the single audit. The proposal submitted to the Commissioners replaces the previous contract for the audit of CDBG Funds we entered into: We estimate that of the total fee proposed for the audit of the City's financial statements for 1984 that* approximately $4,500 is applicable'to the CDBG Funds. If you have any questions regarding this matter please contact us. Very. truly"yours, Certified Pub is Accountant PAM:jlb cc: Mr. Don Harrison f HOME OFFICE P.O. BOX 1179. SALINA. KS 67402 1170 OFFICES KANSAS: SALINA ANTHONY SCOTT CITY COLBY SMITH CENTER CONCORDIA WICHITA G000LANo NEBRASKA: GREAT SENO MCCOOK MARYSVILLE OKLAHOMA: PRATT ALVA MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS RALPH E. REITZ. C.P.A. METIREOI E. T. SHEA. C.P.A. IRETIREDI UNITED BUILDING P. 0. BOK 1170 L. M. MERTZ, C.P.A. SIET91EN SALINA. KANSAS 67402-1179 ROBERT D. wR-BUR. C.P.A. 913 - 825.1551 MANAGING PARTNER R. MICHAEL BEATTY. C.P.A. PARTNER IN -CHARGE JOHN W. PODS, CPA.. PARTNER ADLEY E. JOHNSON, C.P.A.. PARTNER December 6 1984 DON P. OIEDERKH. C.P.A.. PARTNER PAUL A, MOTT. C.P.A.. PARTNER ALLEN WEBBER, CP. A.. PARTNER GERALD L. HUNTER. C.P A.. PARTNER KURTIS G. SIMMERS, C.P.A.. PARTNER DALE A. HEUSZEL. C.P.A.. PARTNER Mr. Don Harrison, City Clerk City of Salina P. 0. Box 746 Salina, Kansas 67402 Dear Don: We estimate that of the total fee we have proposed for the audit of the City's financial statements for the year 1984 that approximately $3,000 is applicable to Federal Revenue Sharing Funds. If you have any questions please give us a call. Very truly yours, 'Va�. Certified Publ c Accountant PAM: jlb MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS HOME OFFICE: P. O. BOX 1179 SALINA. KANSAS 67401 9149251561 To the Mayor and The Board of City Commissioners: OFFICES IN KANSAS NEBRASKA OKLAHOMA We have compiled the accompanying schedules of insurance coverage applicable to Water and Sewerage Department and accounts billed by Water and Sewerage Depart— ment of the City of Salina as of December 31, 1984, in accordance with standards established by the American Institute of Certified Public Accountants. This information is provided as specified in Section 22(g) of Ordinance 84-9025.— which authorized and directed the issuance of $2,770,000 Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984. A compilation is limited to presenting information that is the representation of management. We have not audited or reviewed the accompanying schedules and, accordingly, do not express an opinion or any other form of assurance on them. Salina, Kansas November 19, 1985 Respectfully submitted, 'Z'� 0_.ffl� CITY OF SALINA Salina, Kansas Schedule 1 INSURANCE COVERAGE APPLICABLE TO WATER AND SEWERAGE DEPARTMENT December 31, 1984 The following schedule lists City of Salina insurance policies which include coverage for the Water and Sewerage Department. Expiration Type of Coverage Amount Date Property, Plant, and Equipment Generally all City buildings Fire and Lightning and equipment* Extended coverage Blanket buildings 6 personal property $18,960,000 6-01-85 Mobile Equipment Physical loss or damage by named perils 718,000 1-15-85 Boiler and Machinery Loss on property 250,000 9-15-85 Two -Way Radios Physical loss or damage 298,010 9-02-85 Computer Insurance Property protection 286,000 6-01-85 Automobile Insurance Liability 500,000 1-01-85 Medical payments 2,000 1-01-85 Uninsured motorists 25,000/50,000 1-01-85 Physical damage 200/151,000 1-01-85 Workmen's Compensation Workmen's compensation Employer's liability 112,978 1-01-85 General Liability Bodily injury Property damage 500,000 1-01-85 Money and Securities Inside Money and securities 15,000 Checks other than 6-01-86 payroll 10,000 Outside Money and securities 15,000 Checks other than 6-01-86 payroll 10,000 *Includes coverage for Water and Sewerage Department property valued at $11,692,800. CITY OF SALINA Salina, Kansas ACCOUNTS BILLED BY WATER AND SEWERAGE DEPARTMENT Year Ended December 31, 1984 Number of Accounts Billed During 1984 (includes sanitation only customers) Schedule 2 200,666 HOME OFFICE P.O. BOX 1179. SAUNA. KE 07403 1170 OFFICES KANSAS: SALINA ANTHONY SCOTT CITY COLBY SMITH CENTER CONCORDIA WICHITA GOODLANG NEBRASKA: GREAT BEND CCOOK MARYSVILLE OKLAHOMA: PRATT ALVA MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS RALPH E. REITZ, CPA (RETMEDI E. T. SHEA. CRA, METIROP UNITED BUILDING P. O. BOX 1179 L. M. MERTZ. C.P.A. IRETIREOI SALINA. KANSAS 67402-1179 ROBERT D. WILBUR, C.P.A. 913 B25-0561 MANAGING PARTNER R. MICHAEL BEATTY. C.P.A. PARTNERIN{HARGE JOHN W. PODS. CPA.. PARTNER August 23, 1984 AOL" E OOH P. DIEUEMCNNC.PA.` PARTNER PAUL A. MOTT. C.P.A.. PARTNER ALLEN WEBBER, C.P.A. PARTNER GERALD L. HUNTER. CRA- PARTNER KURTIS G. SIEMERS. C.P.A.. PARTNER GALE A. HEUSZEL CFA- PARTNER The Honorable Mayor Charles Roth and the City Commissioners City of Salina P. 0. Box 746 Salina, Kansas 67402-0746 We submit herewith our proposal for a compliance examination of the Community Development Block Grant Funds received by the City of Salina, Kansas. Our examination will include the performance of those procedures necessary to meet the requirements of the Federal Audit Guides and Standards for the Community Development Block Grant Funds under the following terms and conditions: 1. The issuance of a compliance report on Community Development Block Grant Funds is required at least once out of every two years for the Community Development Block Grant Funds. The period to be covered by this contract is from: a) January 14, 1983 to September 30, 1984 for the grant awarded 1-14-83 in the amount of $669,300, and b) From the date of the last audit to September 30, 1984 for the Revolving Loan Program. 2. We will make our records available for audit by authorized Government personnel or representatives in our office during normal business hours for a period of three years after issuance of our report on examination. 3. Our report on the Community Development Block Grant Funds will be completed within the time limits specified by HUD requirements. 4. Our fee for services rendered in connection with the compliance examination shall be based on our normal rate schedule for the persons engaged on the work; however, our fees for the examinations shall not exceed $5,500. The Honorable Mayor Charles Roth and the City Commissioners August 23, 1984 Page 2 We will be happy to discuss any aspect of this proposal with you at your convenience. If this meets with your approval, please sign in the spaces indicated below. The duplicate copy is for your file. Very truly yours, Certified blic Accountants this day of 194 - g1ty of Salina, Kansas -City of Salina, Kansas HOME OFFICE P.O. BOX 1178, SALINA, KS 67402 1176 OFFICES KANSAS: SALINA ANTHONY SCOTT CITY COLBY SMITH CENTER CONCORDIA WICHITA GOODUND NEBRASKA: GREAT SEND MCCOOK MARTSvaLE OKLAHOMA: PRATT ALMA MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 1178 SALINA, KANSAS 67402-1179 Bi 3 - 825-1561 November 28, 1984 The Honorable Mayor Charles Roth and The City Commissioners City of Salina Salina, Kansas 67401 RALPH E. REITZ. C.P.A. WETIREM E, T, SHEA. C.P.A. IRETIREM L. M. MERTZ. C.P.A. IRETIRWI ROBERT D. WILBUR, C.P.A. MANAGING PARTNER R. MICHAEL BRATTY. C.PA. PARTNER-INCHARGE JOHN W. FOOS. C.P.A. PARTNER ADLEY E. JOHNSON. C.P.A., PARTNER DON P. DIEDERK:H, C.P.A., PARTNER PAUL A. MOTT, C.P.A., PARTNER ALLEN WEBBER. C.P.A., PARTNER GERALD L. HUNTER, C.P.A.. PARTNER KURTIS G. SI£MERS. C.P.A., PARTNER DALE A. HEUSZEL, C.P.A.. PARTNER We propose to make examinations of the financial statements of the City of Salina, Kansas for the year 1984 listed on Appendix A. Our examinations will be made in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants, the Minimum Standard Audit Program approved by the State Municipal Accounting Board, and the requirements of Office of Management and Budget Circular A- 102, Attachment P, and will include tests of accounting records and such other auditing procedures as we consider necessary under the circumstances. It is our understanding that the funds subject to the Attachment P requirements for 1984 are Federal Revenue Sharing and Commlfnity Development Block Grant Funds. The period for Federal Grant reporting for Community Development Block Grant Funds will be extended to include the period from November 1982 (the date of grant approval) to December 31, 1984. The scope of our examinations will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority Salina Recreation Commission Salina Airport Authority Firemen's Relief Association It is our understanding that the above organizations have contracted for separate audits of their operations. The objective of our engagement is the completion of examinations of the financial statements of the City of Salina for the year 1984, and upon completion and subject to our findings, the expression of opinions on such financial statements. An examination made in accordance with generally accepted auditing standards is subject to certain limitations and the inherent risk that errors or irregularities, if they exist, will not be detected. However, if, during the course of our examination, we become aware of such errors or irregularities, we will bring them to your The Honorable Mayor Charles Roth and The City Commissioners November 28, 1984 Page 2 attention. Should you then wish us to expand our normal auditing procedures, we will work with you on developing a separate engagement for that purpose. This proposal represents a change from our engagement for the preceding year in that the scope of the examination is expanded to meet the requirements of Office of Management and Budget Circular A-102, Attachment P (commonly referred to as the Single Audit Concept). Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates for munici- palities. However, our fee for this engagement will not exceed $25,690. Billings will be rendered for payment on a monthly basis so that you may readily relate our charges to the work performed. The maximum fee is based on the assumption that the City will obtain the appropriate waiver from financial statements and reports prepared in accordance with generally accepted accounting principles for the year end December 31, 1984. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. In order to facilitate the efficient conduct of our work, we will provide your personnel with our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available which is consistent with prior years. Preliminary work will be performed at mutually acceptable times in order to complete the engagement as expeditiously as possible. We will be happy to discuss any aspects of this proposal with you at your convenience. If you are in agreement with the terms of this letter, please sign one copy and return it for our files. We appreciate the opportunity to work with you and to continue our pleasant association. Very truly yours, Aifileublic Acco�ts Accepted this 161& day of (�/ , 1984. Mayor - City of Salina, Kansas City Clerk - City of Salina, Kansas CITY OF SALINA Salina, Kansas APPENDIX A FINANCIAL STATEMENTS TO BE EXAMINED BY KENNEDY AND COE FOR THE YEAR ENDED DECEMBER 31, 1984 I. THE FOLLOWING STATEMENTS ARE PRESENTED ON THE CASH BASIS, MODIFIED BY RECORDING ENCUMBRANCES SUMMARY STATEMENT OF RECIEPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN CASH BALANCES COMPARED WITH BUDGET STATEMENT OF BONDED INDEBTEDNESS COMPOSITIION OF ENDING CASH BALANCES COMPARISION OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO AUTHORIZAITIONS STATEMENT OF ACTIVE FEDERAL AWARDS II. THE FOLLOWING FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT BALANCE SHEETS STATEMENTS OF INCOME STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENTS OF CHANGES IN FINANCIAL POSITION HOME OFFICE P.O. BOK 1175. SAUNA. KS 67402-1170 OFFICES KANSAS: SAUNA ANTHONY SCOTT CRY COLEY SMITH CENTER CONCORDIA WICHITA GOODWIN. NEBRASKA: GREAT BEND MCCOOK MARYsm. OKLAHOMA: MATT AUTA Mr. Rufus Nye, City of Salina P. 0. Box 746 Salina, Kansas Dear Mr. Nye: MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS RALPH E. REITZ, C.P.A. RRETIRED) E. T. EHEA. C.P.A. (RETIRED) UNITED BUILDING P. O. BOX 1179 L. M. MERTZ. C.P.A. (RETIRED) SALINA. KANSAS 67402-1179 ROBERT D. WILBUR. C.P.A. 919 B25-1561 MANAGING PARTNER R. MICHAEL BEATTY. C.P.A. PARTNER IN CHARGE JOHN W. ROOS. C.P.A.. PARTNER November 28, 1984 ADLEY E. JOHNSON. CPA,. PARTNER DON P. DIEDERICH. CPA.. PARTNER PAUL A. MOTT. C.P.A.. PARTNER ALLEN WEBBER, C.P.A.. PARTNER GERALD L. HUNTER. C.P.A.. PARTNER KURTIS O SIEMER$. CPA,. PARTNER DALE A. HEUSZEL. CPA,. PARTNER City Manager 67402-0746 Enclosed please find our proposal for the audit of the financial statements of the City of Salina, Kansas for the year 1984. We wish to point out to you that this proposal contemplates that the audit will be conducted under the Single Audit Concept as it pertains to Federal grants. We have discussed the audit approach for Community Development Block Grant Funds with HUD representatives in Kansas City who have informed us that the audit of these funds must be conducted under the Single Audit Concept. Accordingly, the attached proposal would replace the previous contract for the Community Development Block Grant Funds we entered into. If you have any questions about the enclosed please contact us. Very truly yours, Certifi� edfPublic Accountants cc: Mr. D. L. Harrison, City Clerk HOAR OFPICE P.O. BOX 1176. BPIMA NE E1MMIIH OFFICES KANSAS: •NINNY COLn SCOTT CITY WTI CEMEII CONCMmIR RIOaTA BDD w NEBRASKA: OIIDIT BOID YCCOOIt MAarsT"' OKLAHOMA: NIATT LLYA Mr. Rufus Nye City Manager 300 W. Ash Salina, Kansas Dear Mr. Nye: MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDRIG P. O. BOX 1175 SALINA. KANSAS 67402.1179 *131.625.1561 May 7, 1984 u RA VN E. RDTL CPA YIETMmI E. T. ENEA. C.PA. EIETPEA L. M. MGTL CP1 NETM®1 ROEEIIT O. 1YI15YR. CIA R. MCM♦EL BGTTY. CPI PYRNgMCIMRpi .q1W W. POOR, C.PA. PARTIIDI ML[Y E. JIRWEON. C.PA. PARTMq DON P. P MINIM . GPA. PART10 P1 A NOW. C.PA. IARN®I ALLEN YAMBER. CIA. PMIT OI OE1I40 L. NIMTq. CIA. PARTIMR WIMII D. LEMER6. C.PA, PM DLLE A. MEWEfL. C.P.A.. PMTNEA This letter documents our discussions regarding an in-depth study of the City Water Department accounting and management information system to be performed by Kennedy and Coe. Scope of the Engagement We will assist you to determine your requirements for information and then we will define the modifications to your existing system to meet those requirements. Our work will involve the following steps: 1. Identify statistical data which you presently compile manually. 2. Identify additional statistical data which you require to manage the department but do not presently compile. 3. Define how these statistics are to be accumulated by the data pro- cessing system in a cost effective manner. 4. Eliminate the duplication of effort that exists in the preparation of separate records for the Water Department general ledger and the City of Salina Water Fund records by developing a more effective interface. 5. Define the interface of the Water Department billing system, including charges, cash receipts and adjustments with the Department's general ledger system. 6. Define the interface of the meter deposits and refunds with the general ledger system. 7.' Determine that an audit trail of all entries being posted to the general ledger is provided. t Mr. Rufus Nye City Manager May 7, 1984 Page Two S. Review and if necessary, revise the system of internal controls over a. cash receipts b. charges for services c. adjustments to accounts receivable d. receipts and refunds of meter deposits e. bad debts 9. Identify additional financial cost accumulations which might be useful for rate setting purposes and define how they are to be accumulated by the Water Department's general ledger system. Exclusions Our engagement does not include programming changes which may be necessary to accomplish the system revisions. This work will be performed by the City of Salina staff programmers based on our instructions. Schedule We will begin work on this project on May 10, 1984, provided we receive approval from you by May 9, 1984. We would plan on completing the project by June 12, 1984. Fee We will bill you monthly on an hourly basis at Kennedy and Coe standard hourly rates, plus expenses for travel and telephone calls, for the individuals involved. Based on our understanding of the project at this time, we estimate our fees to be $35,000. Please sign a copy of this letter as indicated below and return it to us. We will return to you a copy countersigned by Kennedy and Coe which will then constitute a formal agreement between us. We look forward to working with you on this project. Sincerely, PAM:dab Certifi Public Accountants 1 Accepted this /O 'day of 2:27, 1984. CITY OF SPAINAAWATER DEPARTMENT Accepted this /e *% day of , 1984. KENNEDY AND COE By: By: ,t, z. 2zzt2 Ru4is 3YCity Manager -Paul Mott, $ rt er M NOIM omu P.O. SOX I ITR SIW►"07g2-1 In OFFICES KANSAS: sAuru ANTNwr Cour SCOTT Cm o Corte CONCOMM" MYNA aooDlA,m NEBRASKA: O T Som MCCCOX NARTaTAts OKLAHOMA: Run MVA Mr. Rufus Nye City Manager 300 W Ash Salina, &S 67401 Dear Mr. Nyet MEMBERS OP ANWCAN INSTITUTE OF CERTIFIED PUSUC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED MWINO P.O. SOX I ITS SAUNA. KANSAS 67402.1179 0I3 -82o-1561 December 189 1984 111LLPM [. INITZ. CIA YI[TNIY S. T. SNZA CIA PNINOI L N. NDNL CIA I SOSNR D. N CIA NA1IAOm PMINDI R. NICN.6 wTTY. CIA PARINDls1{WRes "N N. roes. CIA. PMTIOI ASIAT S. JCI1IISCN CIA. PNN101 ODN P. ORDIWCN. C.P.A. YNRIp Pk& A. Nen. CIA. PNNINR Aum1 WlasD1. CIA. PARTIOI aXR.uD L R . CIA. PARrNW1 RYRTIs 0. VENOMS CIA. PARNOI 6 A R LISX03. CIA. RARINIA This letter documents our meeting of December 3, 1984 regarding the installation of the Computare, Inc. software for the City Water Department. The following facts were discussed during our meeting. 1. The affect of delaying the installation of the system by one month. We concluded that a one month delay would be acceptable to Insure a quality product. Without the delay, additional outside programming services would be required, increasing the overall cost and reducing the quality control of the project. 2. We presented a revised fee estimate. The original estimate was based on estimated hours provided by Computers, Inc. Based on actual experience to -date the programming changes required will not be completed within the original time estimated. Because of these facts we agreed to the following schedule and estimate of fees. We plan on running a test of the new system comparing results with the current system the latter part of January. The revised date for installation is February 111 1985. Based on the revised plan, we estimate our fees to be $10,000 for design and project management activities and $18,000 for program revisions. The original plan per our letter of November 7, 1984 estimated our fees at $8,000 for design and management activities and $10,000 for program revisions. k i7DE'ber rRufus Nye 18, 1984 Please sign a copy of this letter as indicated below and return it to us. We will return to you a copy countersigned by Kennedy and Coe which will then constitute a formal agreement between us. Sincerely yours, T Certifie Accountants Accepted this day of 1984. CITY OF SAL7A MATER DEPARTMENT By: U, L Rufus N , Manager RBF/dmb Accepted this DV{day of 1984. KENNEDY AND COB By: � �• Paul A. Mott, artner w 09. G 9 H ro ro a$ (OD O G9. CO (OD O .. I n R O O w G w G H G a O O w M M z n r• N H n F+ Cy R i-1 R G R w a N O N O rt N N 7' 'J' G N r• W r• r• d w 0 w w ° m °Cl Pi `•'• Gw1C OOO 0 CL Ww OQ a O G a a m a R N N O O �' Y• 1-- r r M y w R 0, 0 H 1000 F W'y C r• (D N R a (D r• 00 W. I I 0• I I I I I I I I I w Y• .'1 H H (D N O' N In p N N C+• N N N i-• N N N \•-' rt n n C C p O G' w a �OW r•�oFFOF N (D r r• r• R R.4 w R w r I I m I I I 1 1 1 I I I w G On O N r O C W W R W 00 00 OD Oo W OD 00 W O m m ._. m �^ In lnF FJ'FFF F M r• f0. Cy C'� O w o m r p td C r• R f'h rt F-' R Y• n r• 0 o p N a (D r• > r r w n C R 0 OGO r m m p M rt m 0 fw i 00 n 00 r• G H ? m 0• n n p P O R v 7 O 0 E r• H H. O r• G �' w m a N O n a G G G w O R 01 E H O• G n< �O Ov r4 (D`C p rY H R r• n a O R G (D H G N 0 `C R (D Q' R ? G w N w •• - •'Y H N p" (D w H C O' N( n r a, a H `C a a H r- �0 0 n n R E 00 0o 10 `C H H '• %D %0 M p P. m m rt H OD 'D a- 0D F 0000 �. 1-- n r•N In t- �D rr• I0 00FF (fD r• w 00 H �o 00 �o %0 W � F H NFFF t OODD �^ r• a C w F n R r• b a r• n a a w ° m H w N I ER O (D 34 CrQ :3 (D rt g F F n n [A VWiF14 ? ,y N 0 0 to O O In �o 7' O R 00 00 O� 00 00 W O W W N F4O O O 1•- OD V \n O In to V. i0D OD F CH. 0H. a M O F F O F F W ON t N O ... N rt CL // •\. O•� j r• rt I-- r FI-- N FI W I \ 00 V V -JJJ`.."' '•� OD41 Vlf-^ Q N a, C) F� W / Q �. # - _ ✓ 9 99 M Cyj '� ro W It ml 9 �n Pd td H Cz�1 r H H K1 M 0 r9n In r �H 9H C 9 ro " o L 7 t -i H N `R;0 HOMF OFFICE P.O. BOM 1170. EKINA. KS 89402111E OFFICES KANSAS: S. ANTHONY SCOTT CRY GOALS, SMITH CENTER CONCORDIA WICHITA Boo.uRD NEBRASKA: GREAT SERB MCCODR MAAVS,%A: OKLAHOMA: PRATT ALYA Mr. Rufus Nye City Manager 300 W Ash Salina, RS 67401 Dear Mr. Nye: MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND CERTIFIED PUBLIC ACCOi UNITED BUILDING P. O. BOl SALINA. KANSAS 6740: A... 913.8251531 A[I `�i ..._..i if ,... December 18, 1984 E T. SMEA. C.PA IRETYPEN L. M. MERTZ. C A. IRETIREDI ROBERT. WILWR, CPA. MANAGING PARTNER R MICHAEL BEATTY. C PA PARTNER IN CHARGE JOHN W. PODS, C P.A. PARTNER AMEY E. JOHNSON, CP. A.. PARTNER DON P DIEDERICH. C PA. PARTNER PAUL A MOTT. C A. PARTNER ALLEN WEBBER. C P.A. PARTNER GERALD L HUNTER, C P A. PARTNER KURTIS G. SIEMERS. C.P.A., PARTNER DALE A. HEUSZEL. C P A.. PARTNER This letter documents our meeting of December 3, 1984 regarding thL, installation of the Computare, Inc. software for the City Water Department. The following facts were discussed during our meeting. 1. The affect of delaying the installation of the system by one month. We concluded that a one month delay would be acceptable to insure a quality product. Without the delay, additional outside programming services would be required, increasing the overall cost and reducing the quality control of the project. 2. We presented a revised fee estimate. The original estimate was based on estimated hours provided by Computare, Inc. Based on actual experience to -date the programming changes required will not be completed within the original time estimated. Because of these facts we agreed to the following schedule and estimate of fees. We plan on running a test of the new system comparing results with the current System the latter part of January. The revised date for installation is February 1, 1985. Fees Based on the revised plan, we estimate our fees to be $10,000 for design and project management activities and $18,000 for program revisions. The original plan per our letter of November 7, 1984 estimated our fees at $8,000 for design and management activities and $10,000 for program revisions. Mr. Rufus Nye Page 2 December 18, 1984 Please sign a copy of this letter as indicated below and return it to us. We will return to you a copy countersigned by Kennedy and Coe which will then constitute a formal agreement between us. Sincerely yours, Certified✓Public Accountants Accepted this 2-S day of 1984. CITY OF SALA WATER DEPARTMENT ZjBy: _ Rufus i* Manager RBF/dmb Accepted this 2_,- � 1zday of 1984. KENNEDY AND COE By: zqz Paul A. Mott, artner ROBERT D. WILBUR. C. P. A. MANAGING PARTNER P.O. BOK 1179, SAUNA. KS 674021179 OFFICES Water KANSAS: SCOTT CITY ANTHONY SMITH CENTER COLBY WICHITA CONCORDIA NEBRASKA: GOOOLAND CCOOK GREAT BEND OKLAHOMA: MARYSVIU-E ALVA PRATT COLORADO: SAUNA LAMAR ✓ 4,200.00 WESTMINSTER Mr. Don Harrison City of Salina 300 W. Ash Salina, SS 67401 Dear Don: MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOJ! 1179 SALINA. KANSAS 67402-1179 913 - 835.1561 June 5, 1985 RALPH E. REITZ, CPA. WETIREDI E, T. SHEA. C.P.A. (RETIRED) L. M. MERTZ. CFA. WETIREDI ROBERT D. WILBUR. C.PA. MANAGING PARTNER R. MICHAEL BEATTY. C.P.A. PARTNER IMCHARGE JOHN W. PODS, C.P.A. PARTNER AMEY E. JOHNSON, C.P.A.. PARTNER DON P. DIEDERICH. C.P.A.. PARTNER PAUL A. MOTT. C.P.A.. PARTNER ALLEN WEBBER, C.P A. PARTNER GERALD L. HUNTER. C.P.A. PARTNER KURTIS G. SIEMiRS. C.P.A,, PARTNER DALE A. HEUSZEL, CPA,, PARTNER Recapped below is a summarization of our charges and payments received according to our statements between August 24, 1984 and April 29, 1985. August 24th Statement Payments for 8-17-84 < 1 0 $< 4,100.00> $01,200.00 System study 4,619.24 4,619.24 Balance Due $ 16,121.45 $ 100.00 $ 169221.45 September 24th Statement Payment for 9-4-84 �<11,502.21> < 100.00 <11,602.21> System study ,0 8,026.62 Fixed asset and cash reconciliation 166.50 166.50 Balance Due # 12,645.86 $ 166.50 # 12,812.36 October 19th Statement Payment for 9-28-84 <1 Z.619.20 < 4,619.24>System study4,137.34 Balance Due # 11,363.96 # 166.50 # 119530.46 November 21st Statement Payment for 11-16-84 Modification of Cubs Bond reserve and fixed assets Balance Due December 18th Statement Examination of financial statements Revisions to Cubs Balance Due <10,845.96> $< 166.50> , 27.75 $ 49930.08 $ 27.75 $ 5.641.97 # 10,572.05 $ 1,450.82 $ 1,478.57 $<11,012.46> 4,412.08 27.75 $ 4,957.83 $ 1,450.82 5,641.97 $ 12,050.62 Water Accounting Department Services Total August 24th Statement (correction for July) Unpaid May services $ 7,994.00 $ $ 7,994.00 Examination of financial statements 4,200.00 ✓ 4,200.00 System study 10,608.21 1 10,608.21 Balance Due $ 18,602.21 $- 4,200.00 $ 22,802.21 August 24th Statement Payments for 8-17-84 < 1 0 $< 4,100.00> $01,200.00 System study 4,619.24 4,619.24 Balance Due $ 16,121.45 $ 100.00 $ 169221.45 September 24th Statement Payment for 9-4-84 �<11,502.21> < 100.00 <11,602.21> System study ,0 8,026.62 Fixed asset and cash reconciliation 166.50 166.50 Balance Due # 12,645.86 $ 166.50 # 12,812.36 October 19th Statement Payment for 9-28-84 <1 Z.619.20 < 4,619.24>System study4,137.34 Balance Due # 11,363.96 # 166.50 # 119530.46 November 21st Statement Payment for 11-16-84 Modification of Cubs Bond reserve and fixed assets Balance Due December 18th Statement Examination of financial statements Revisions to Cubs Balance Due <10,845.96> $< 166.50> , 27.75 $ 49930.08 $ 27.75 $ 5.641.97 # 10,572.05 $ 1,450.82 $ 1,478.57 $<11,012.46> 4,412.08 27.75 $ 4,957.83 $ 1,450.82 5,641.97 $ 12,050.62 Mr. Don Harrison Page 2 of 2 ` s 7 a June 5, 1985 JP p. Water Department January 25th Statement Payment for 12-26-84 4,439.83> Payment for 1-23-85 , .97> Payment for 1-23-85 Revision to Cubs 9,690.28 Examination of financial statements Balance Due $ 10,180.53 February 21st Statement Payment for 2-19-85 $ Revisions to Cubs 19.170.04 Balance Due $ 29,550.56 March 21st Statement Payment for 3-31-85 Revisions to Cubs Accounting services Balance Due April 29th Statement General Ledger Interface Accounting Services Balance Due Less Adjustment Balance Due If you need any further clarification, RBF/dmb Accounting Services Total $ < 1,450.82> $ 729.40 $< 701.65> $ 27.75 9,690.28> $ 2, 20.00 686.37 $ 22,480.28 $ 714.12 $ 47.00 $ 22,527.28 $< 6,890.68> 144.61 $ 1,048.75 $< 4,439.83> < 5,641.97> < 1,450.82> 9,690.28 $ 109909.93 $< 701.65> 19.170.04 $ 299578.31 $< 9,690.28> 2,620.00 686.47 $ 23,194.40 $ 47.00 414.61 # 23,576.03 $< 6,890.68> $ 15,636.60 1,048.75 $ 16,685.35 please let me ]mow. Sincerely yours, &O't�e 7a Jc ' Bart Farmer Data Processing Services Manager .Qom City of Salina - Nater Department Additional Services Provided 1) Tsstina $ 900 - Complete testing of billing programs revised by City D/P department. - Compile a complete set of test data. Original test data developed by City staff was incomplete. 2) Parallel and Installation 5,500 A. Problems During Parallel - Conversion programs were late, causing additional time to coordinate parallel runs. - Conversion programs incorrectly converted customer account balances. - Last user number was not updated correctly in service file causing duplication of customer and order proces- sing problems. - Previous reading date and current reading date were not properly updated. Sewer rate codes were incorrect on apartments. - Historical information was incorrect. - Additional training required for task all ready covered in the training sessions. Wrote various programs to identify and correct errors caused by conversion program errors. B. Problems With Installation Conversion programs didn't reset customer balances after the parallel. Combined meters were not converted. Total Testing, Parallel and Installation $ 69400 3) Customer File Maintenance $ 850 - Revise program to call order processing when rate changes for sanitation or water. - Revise program to call order processing when new services are added to an existing customer. Design of method for handling service available but not in use for a customer. - Revise program to adjust for 1/2 addresses. J • '. City of Salina - Water Department Additional Services Provided - Continued - Revise program for new information being passed from customer file maintenance. - Add logic to always create a sanitation order for a termination of customers when sanitation is not in use. Revised program so initate/install could be handled by a single order. 5) Order Printine Define and add logic to print special wording and rates on sanitation orders. - Add option to allow for re -printing of an order. 6) Transfer Customer - Define and add logic to create a termination order for the old address. Revise program to print the consumption on Ohe new meter book page. - Add logic to compute sales tax for miscellaneous water charges. Change logic for the application of partial payments or adjustments. - Eliminate calculation and printing of interest, add comments for accounts to be refunded. 10) Checks - Definition and program revisions for information to be printed on the cheek stub. Total Programming Total Additional Services 1,250 600 700 350 875 250 350 $ 5,225 S 11,625 City of Salina Water Department Pending Items t) Revise system so the turn-off and removal of a meter can be completed with a single service order. This presently requires two service orders. 2) Print "walk-in" as special comments on sanitation orders. 3) Change the status of customers who were turned off for non-payment to closing after one week. Staff is presently required to change accounts to closing. 4) Definition and program revisions to provide for mains, valves, water hydrants, etc. The system presently allows this type of equipment but the reports to be generated in order processing have not been defined. 5) We need to appoint the person responsible for general questions, answers and problem resolution in the coming weeks. MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS HOME OFFICE PO, BOX 1179. SALINA. NS STA02.1I7E 3;I1JWMCz KANSAS: SAUNA ANTHONY SCOTT CITY COUSY SMITH CENTER CONCORDIA WICHITA GDODLANo NEBRASKA: GREAT BEND MCCOOK MArtvsvILLE OKLAHOMA: PRATT ALMA Mr. Rufus Nye City Manager 300 W. Ash Salina, Kansas 67401 Dear Mr. Nye: KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 1178 SALINA. KANSAS 67402-1179 813 - 825-156 1 November 7, 1984 RALPH E. REITZ. C.P.A. (RETIRED( E_r SNEc C.P.A. (RETRIED) MEWZ.'C.PA. (RETIRED) ROBERT D. WILBUR, C.P.A. MANAGING PARTNFA R. MICHAEL BEATTY. CPA. PARTNER -IN -CHARGE JOHN W. PODS. C.P.A.. PARTNER ADLEY E. JOHNSON. C.P.A. PARTNER DON P. WEDERICH. C.P.A.. PARTNER PAUL A. MOTT. C.P.A.. PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L. HUNTER. C.P.A.. PARTNER KURTIS G. SIEMENS, C.P.A.. PARTNER DALE A. HEUS2EL. C.P.A., PARTNER This letter documents our discussions and proposed assistance regarding instal- lation of the Computare, Inc. software for the City Water Department. Scope of the Engagement Our work will involve the following steps: 1. Assist Computare, Inc. and the city staff with the analysis and design of modifications to the Computare, Inc. software. 2. Project management of program revisions. 3. Assist the city data processing staff with program revisions. 4. Project management of the conversion, training, parallel and implemen- tation of the Computare, Inc. software. Schedule We plan on implementing the Computare, Inc. software package by January 1, 1985. Fees We will bill you monthly on an hourly basis at Kennedy and Coe standard hourly rates, plus expenses for travel and telephone calls, for the individuals involved. Based on our understanding of the project at this time, we estimate our fees to be $8,000 for design and management activities and $10,000 for program revisions. Mr. Rufus Nye City Manager November 7, 1984 Page Two Please sign a copy of this letter as indicated below and return it to us. We will return to you a copy countersigned by Kennedy and Coe which will then constitute a formal agreement between us. Sincerely, Certified✓Public Accountants Accepted this 14 day of 'v N Accepted this _ day of , 1984. 1984. CITY OF_SINA WATER DEPARTMENT KENNEDY AND COE Rufus e, City Manager Paul A. Mott, artnei City of Salina Water Department Recap of Charges to Modify and Install Cubs Total charges through 12-31-84 Charges for January 1985 Subtotal Estimated February Charges Original estimate Additional testing, parallel & installation Additional programming Estimated H & C Adjustment Time $ 219673.25 19,7 2.25 41,015.50 2.478.00 a 43,493.50 28,000.00 6,400.00 _5,225.00 8 39,625.00 $ 3,868.50 Expense_ $ 203.65 27.76 231.43 NOYE orNn P.O. WX 11". fALI11A. ER flAp].I In OFFICES KANSAS: ANTNCNT MATT CRT color SWIM CENTER colCamu RIpOTA aoowANG NEBRASKA: MEAT wIs YCCOOIt AYRYEYILLB OKLAHOMA: NUR ALG Mr. Rufus Nye City Manager 300 W. Ash Salina, Kansas Dear Mr. Nye: MEIIBBRB OF AMERICAN INSTITUTE Of CER IRM Pueuc ACCOUNTANTS 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS PALPN E.>: e.Pw wErwm E T. MIG. C.P.A. 0INTMON UNITED BUILDING P. O. BOA 1175 4 Y. Y[IITZ CJA EIEIMO SALINA. KANSAS 67402-1179 Rc�r B. Naaw. cJw 913 - 0251 561 YMUBMB PIRIY01 R. NICIIALL Bum. C.PA G� May 7, 1984 mIM N. PCO.. C.P.A.. PARINBI A0. [. JONYBOK CJI PARTNER! 000 P. BmERCN. CAA. PARTNER PAK A. Y . CPA.. PAIIINSM AUD, W®G. CJ.A.. PA01IMIN GERALD 4 NUIITpT. C.PA. PARTNER KWT6 O. MdERA C.PA- PARTNER PALE A. N UZ1 C.P.A.. PARTNMI This letter documents our discussions regarding an in-depth study of the City Water Department accounting and management information system to be performed by Kennedy and Coe. Scope of the Engagement We will assist you to determine your requirements for information and then we will define the modifications to your existing system to meet those requirements. Our work will involve the following steps: 1. Identify statistical data which you presently compile manually. 2. Identify additional statistical data which you require to manage the department but do not presently compile. 3. Define how these statistics are to be accumulated by the data pro- cessing system in a cost effective manner. 4. Eliminate the duplication of effort that exists in the preparation of separate records for the Water Department -general ledger and the City of Salina Water Fund records by developing a more effective interface. 5. Define the interface of the Water Department billing system, including charges, cash receipts and adjustments with the Department's general ledger system. 6. Define the interface of the meter deposits and refunds with the general ledger system. 7.' Determine that an audit trail of all entries being posted to the general ledger is provided. Mr. Rufus Nye City Manager May 7, 1984 Page Two S. Review and if necessary, revise the system of internal controls over a. cash receipts b. charges for services c. adjustments to accounts receivable d. receipts and refunds of meter deposits e. bad debts 9. Identify additional financial cost accumulations which might be useful for rate setting purposes and define how they are to be accumulated by the Water Department's general ledger system. Exclusions Our engagement does not include programming changes which may be necessary to accomplish the system revisions. This work will be performed by the City of Salina staff programmers based on our instructions. Schedule We will begin work on this project on May 10, 1984, provided we receive approval from you by May 9, 1984. We would plan on completing the project by June 12, 1984. Fees We will bill you monthly on an hourly basis at Kennedy and Coe standard hourly rates, plus expenses for travel and telephone calls, for the individuals involved. Based on our understanding of the project at this time, we estimate our fees to be $35,000. Please sign a copy of this letter as indicated below and return it to us. We will return to you a copy countersigned by Kennedy and Coe which will then constitute a formal agreement between us. We look forward to working with you on this project. Sincerely, PAM:dab Certifi Public Accountants Accepted this /O Aday of :�qaq, 1984. CITY OF SA&INA % WATER DEPARTMENT Accepted this /G%` day of , 1984. KENNEDY AND COE r _ By:Fz;z By: F�,2 /f,. �tzr— Ru s 1 y City Manager / -Paul DArtd er NOME OFFICE PO. BOX 1179. SALINA, KS 67403.11 TO �BTynatl&_� KANSAS: SAUNA ANTHONY SCOTT CRY COLBY SMITH CENTER CONCORDIA WICHITA GOODLANo NEBRASKA: GREAT SEND MCCOOK MA!YSY.LLE OKLAHOMA: PRATT ALVA Mr. Rufus Nye City Manager 300 W. Ash Salina, Kansas Dear Mr. Nye: MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING P. O. BOX 1178 SALINA, KANSAS 67402-1179 913 - 835-1581 November 7, 1984 NOV 131984 RALPH E.REITZ., C.A.PA. IRIETOIR CITY YAVPMZREI ROBERT O. WILBUR, C.P.A. MANAGING PARTNER R. MICHAEL BEATTY. C.P A. PARTNER -IN CHARGE JOHN W. PODS, C.P.A.. PARTNER ADLEY E. JOHNSON. C.P.A.. PARTNER DON P. DIEDERICH. C.PA.. PARTNER PAUL A. MOTT. C.P.A., PARTNER ALLEN WEBBER. C.P.A.. PARTNER GERALD L. HUNTER. C.P.A.. PARTNER KURTIS O. SIEMENS. C.P.A., PARTNER DALE A. HEUSZEL, C.P.A.. PARTNER This letter documents our discussions and proposed assistance regarding instal- lation of the Computare, Inc. software for the City Water Department. Scope of the Engagement Our work will involve the following steps: 1. Assist Computare, Inc. and the city staff with the analysis and design of modifications to the Computare, Inc. software. 2. Project management of program revisions. 3. Assist the city data processing staff with program revisions. 4. Project management of the conversion, training, parallel and implemen- tation of the Computare, Inc. software. Schedule We plan on implementing the Computare, Inc. software package by January 1, 1985. Fees We will bill you monthly on an hourly basis at Kennedy and Coe standard hourly rates, plus expenses for travel and telephone calls, for the individuals involved. Based on our understanding of the project at this time, we estimate our fees to be $8,000 for design and management activities and $10,000 for program revisions. Mr. Rufus Nye City Manager November 7, 1984 Page Two Please sign a copy of this letter as indicated below and return it to us. We will return to you a copy countersigned by Kennedy and Coe which will then constitute a formal agreement between us. Accepted this 14 day of OW 1984. CITY OF SAItINA WATER DEPARTMENT By: Ult, Rufus e, City Manager Sincerely, CertifiedUpublic Accountants Accepted this 1984. "'i zI�01114F ` Ixes aI day of By: ,A:Z n 242 Paul A. Mott, artner MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBUC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS NOME OFFICE: P. O. BOK 1170 SALINA. KANSAS 57A01 013-825.1881 To the Mayor and The Board of City Commissioners: OFFICES IN KANSAS NEBRASKA OKLAHOMA We have compiled the accompanying schedules of insurance coverage applicable to Water and Sewerage Department and accounts billed by Water and Sewerage Depart- ment of the City of Salina as of December 31, 1984, in accordance with standards established by the American Institute of Certified Public Accountants. This information is provided as specified in Section 22(g) of Ordinance 84 -9025. - which authorized and directed the issuance of $2,770,000 Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984. A compilation is limited to presenting information that is the representation of management. We have not audited or reviewed the accompanying schedules and, accordingly, do not express an opinion or any other form of assurance on them. Salina, Kansas November 19, 1985 Respectfully submitted, 6F1.(Q, L_a.sv CITY OF SALINA Salina, Kansas Schedule 1 INSURANCE COVERAGE APPLICABLE TO WATER AND SEWERAGE DEPARTMENT December 31, 1984 The following schedule lists City of Salina insurance policies which include coverage for the Water and Sewerage Department. Expiration Type of Coverage Amount Date Property, Plant, and Equipment Generally all City buildings Fire and Lightning and equipment* Extended coverage Blanket buildings S personal property $18,960,000 6-01-85 Mobile Equipment Physical loss or damage by named perils 718,000 1-15-85 Boiler and Machinery Loss on property 250,000 9-15-85 Two -Way Radios Physical loss or damage 298,010 9-02-85 Computer Insurance Property protection 286,000 6-01-85 Automobile Insurance Liability 500,000 1-01-85 Medical payments 2,000 1-01-85 Uninsured motorists 25,000/50,000 1-01-85 Physical damage 200/151,000 1-01-85 Workmen's Compensation Workmen's compensation Employer's liability 112,978 1-01-85 General Liability Bodily injury Property damage 500,000 1-01-85 Money and Securities Inside Money and securities 15,000 Checks other than 6-01-86 payroll 10,000 Outside Money and securities 15,000 Checks other than 6-01-86 payroll 10,000 *Includes coverage for Water and Sewerage Department property valued at $11,692,800. CITY OF SALINA Salina, Kansas ACCOUNTS BILLED BY WATER AND SEWERAGE DEPARTMENT Year Ended December 31, 1984 Number of Accounts Billed During 1984 (includes sanitation only customers) Schedule 2 200,666 STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor August 7, 1984 JAMES R. COBLER Director of Accounts and Reports To the Governing Body: City of Salina Salina , Kansas State Office Building Topeka, Kansas 66612 (913) 296-2311 The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. •75-1124. Date of Audit Report: July 11, 1984 Municipality Audited: City of Salina Date Received in This Office: August 7, 1984 Audit Report Covering Audit Period Financial Statements December 31, 1983 Report by: Kennedy and Coe Salina, KS Licensed Municipal Public Accountant in charge of audit: License No. Certified Public Accountant David J. Mills in charge of audit: Permit No. 2682 Very truly yours, James R. Cobler, Director Division of Accounts and Reports Original to be attached to voucher and filed with Clerk of Municipality. Blue Copy for Accountant's File. AR -102 (7-29-76) STATE OF KANSAS _.: >i DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor JAMES R. COBLER Director of Accounts and Reports August 16, 1984 D. L. Harrison City Clerk City of Salina 300 West Ash P.O. Box 746 Salina, Kansas Dear Member: 67402-0746 State office Building Topeka, Kansas 66612-1574 (913) 296-2311 As you have requested, and as provided by K.S.A. 1982 Supp. 75-1120a(c) (1982 S.B. 531), I hereby waive the requirements of subsection (a) to the extent requested by the governing body for the fiscal year ended December 31, 1983 JRC:WLE:ps Very truly yours, James R. Cobler, Director Division of Accounts and Reports AREA CODE 913 827-9653 CITY COUNTY BUILDING 300 WEST ASH P.O. BOX 746 SALINA, KANSAS 67402-0746 August 15, 1984 William Ervin, Chief Municipal Accounting Division of Accounts State Office Building Topeka, KS 66612 Dear Mr. Ervin: Section and Reports CITY CLERK'S OFFICE O.L. HARRISON, CMC M.E. ABBOTT Pursuant to a resolution passed at its meeting on August 13, 1984, the Governing Body found that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to the requirements of the cash basis law and budget laws of Kansas and are of no significant value to the governing body or members of the general public of this municipality. The governing body hereby requests a waiver from the financial statements and reports prepared in conformity with generally accepted accounting principles for the fiscal year ended December 31, 1983 in accordance with the provisions of K.S.A. 75-1120a. Very truly yours, D. L. L. Harrison City Clerk Enclosure: Resolution Number 84-3726 CC: Dave Mills, CPA Kennedy and Coe, Certified Public Accountants P. 0. Box 1179 Salina, KS 67402-1179 MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES J` RESOLUTION NUMBER 84-3726 A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS PURSUANT TO K.S.A. 1982 Supp. 75-1120a BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Board of Commissioners hereby finds that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to requirements of the cash basis and budget laws of Kansas and are of no significance and value to the governing body or the general public of the City of Salina. Section 2. That the Director of Accounts and Reports is hereby requested to waive the requirements of law relating to the preparation of financial statements and financial reports that conform to generally accepted accounting principles pursuant to K.S.A. 1982 Supp. 75-1120a. Section 3. That this Resolution shall be in full force and effect from and after its, adoption. Adopted by the Board of Commissioners and signed by the Mayor this 13th day of August, 1984. [SEAL] ATTEST: arrison,Lity er `_(' ��P' t L ares U. Roth,Mayor HOME OFFICE: P.O. BOE 1170. SALINA, KS ETAOI OFFICES KANSAS ANTHONY SALINA COL. SCOTT CITY CONCORDIA SMITH CENTER. GOODLAND WICHITA GREAT BEND NEBRASKA: MARYSVILLE MCCOOK PRATT OKLAHOMA: ALVA MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE RALPH E. REITE. C.P.A. METIIIEGI CERTIFIED PUBLIC ACCOUNTANTS E. T. SHEA. C.P.A. IRETWEDI UNITED BUILDING P. O. BOE 1172 L. M. MERTZ. C.PA. METIRED) SALINA, KANSAS 67401 ROBERT D. WILBUR. C.P.A. 919 - 825-1691 MANAGING PARTNER JOHN W. FOOS, CPA.. PARTNER AGLEY E. JOHNSON. C.P.A.. PARTNER DON P. DIEDERIOH. C.P.A., PARTNER September 29, 1983 PAUL A. MOTT' C.P.A.. PARTNER ALLEN WEBBER. C.P.A., PARTNER GERALD L. HUNTER. C.P.A.. PARTNER W MICHAEL BEATTY, C.P.A.. PARTNER KURTIS G. SIEMENS. CFA.. PARTNER LARRY D. HARVEY, C.P.A.. PARTNER The Honorable Mayor John Burgess and The City Commissioners City of Salina Salina, Kansas 67401 We propose to make an examination of the financial statements of the City of Salina, Kansas for the year 1983. Our examination will be made in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants and the Minimum Standard Audit Program approved by the State Municipal Accounting Board and will include tests of accounting data and procedures we consider necessary under the circumstances. The scope of our examination will include all funds of the City except: Salina Arts Commission Salina Housing Authority Salina Public Library Salina - Saline County Board of Health Saline County - City Building Authority Salina Recreation Commission Salina Airport Authority Firemen's Relief Association Additionally, the scope of this examination will not, include Federal compliance audit procedures on the Federal Revenue Sharing, Community Development Block Grants, or other Federal grants to the City. The objective of our engagement is the completion of an examination of the financial statements of the City of Salina for the year 1983, prepared on the cash basis modi- fied by recording encumbrances, and upon its completion and subject to its findings, the expression of an opinion on such financial statements. An examination made in accordance with generally accepted auditing standards is subject to certain limita- tions and the inherent risk that errors or irregularities, if they exist, will not be detected. However, if, during the course of our examination, we become aware of such errors or irregularities, we will bring them to your attention. Should you then wish us to expand our normal auditing procedures, we will work with you on de- veloping a separate engagement for that purpose. The Honorable Mayor John Burgess and The City Commissioners City of Salina September 29, 1983 Page 2 our fee for services rendered for this engagement will be computed at our standard billing rates for municipalities. However, our fee for this engagement will not exceed $17,800. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, which in our judgment materially increase the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. In order to facilitate the efficient conduct of our work, we will provide your per- sonnel with our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available which is consistent with prior years. Preliminary work will be performed at mutually acceptable times in order to complete the engagement as expeditiously as possible. We will be happy to discuss any aspects of this proposal with you at your conven- ience. If this meets with your approval, please sign one copy and return it for our files. Very truly yours, Certified Public Accountants Accepted this 2 ZI61 day of at'pl , 1983. 1 ty Clerk - City of Salina, Kansas b - yivU G. c. ,5-1 aT WdS� ��17Og r HOME OFFICE: P. O. BOX 1179 SALINA. KANSAS 67601 913-825-1561 City of Salina 300 W. Ash Salina, KS 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING. P. O. BOX 1179 SALINA. KANSAS 67401 918 - 825.1861 OFFICES IN KANSAS EI# 4&MW03EBRASK N EB RASXA OKLAHOMA August 24, 1984 REVISED BILLING Balance shown by statement previously rendered Professional services during the month of June, 1984, in connection with the following: Examination of financial statements for the year 1983 $4,503.75 Deduct amount in excess of contract 303.75 System study of the Water and Sewerage --T Department $ 7,994.00 4,200.00 10,608.21 22 802.21 This statement does not show credit for payments received after August 24, 1984. S-52920 0 NOME OFFICE: P. O. Box 1115 SALINA. KANSAS 61401 912.620.1501 City of Salina 300 W. Ash Salina, RS 67401 [KENNEDY AND :OE CERTIFIED PUBLIC ACCOUNTANT UNITED BUILDING. P. O. BOM 1119 SALINA, KANSAS 61401 912 - 625-1561 E.I. 1148-0567703 July 20, 1984 Balance shown by statement previously rendered Professional services during the month of June, 1984, in connection with the following: Examination of financial statements for the year 1983 System study of the Water and Sewerage Department OFFICES IN KANSAS NEBNASKA OK LAMOMA 5la7/•w ra $ 7,994.00 10,608.21 11,803C.2- 1 //' )-V7. cN _ This statement does not show credit for payments received after July 20, 1984. S-52920 6011, W.'q NOME OFFICE: P. O. 001 1170 SALINA. KANSAS 97401 913-928.1591 City of Salina 300 W. Ash Salina, RS 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING. P. 0. BOX 1179 SAUNA. KANSAB 97401 912 - 820-1891 OFFICES IN KANSAS E I. 0181MM NEBRASKA OKLAHOMA February 20, 1984 d Professional services in connection with the following: Interim services through January 31, 1984, in connection with examination of financial statements for year 1983 Review and evaluation of internal control over Bicen- tennial Center concessions sales, preparation of recommendations regarding improvement of controls, and communication of the findings and recommendations Discussions with Don Harrison and Hank Corcoran regarding the Water Department fixed asset system and related entries to record assets (including contributed assets) and inventory closing entries 6,600.00 Pd k&. Ghlz�- 82+145-- OV, This statement does not show credit for payments received after February 15, 1984. S-52920 MEMBENS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE' HOMEOFFICE: ,.gALPH E. gEIT}. C.P. A. WETIREOI Po. eox rnB. SAUNA: Ks e7401 - CERTIFIED PUBLIC ACCOUNTANTS E. T. SHEA. CF.A, IRETIREDI UNITED BUILDING P. O. BOX 1179 -t. M. MERTZ.'C.P.A. IRETIREOI OFFIGrS SALINA,. KANSAS $7401 ROBERT D. WRBUR. C.P.A. KANSAS: ♦ MANAGING PARTNER AUNA COLBYANTHONY SCOTT 913 - 825-1581 - COLEY SCOTT CRY _ _ JOHN W. P008, C P,.A.. PARTNER CONCORDIA' SMITH CENTER ADLEY E. JOHNSON. CPA.. PARTNER GOODLANO WICHITA DON P DIEDERICH. C.P.A.. PARTNER PAUL A. MOTT, C.P; A., PARTNER GREAT BEND NEBRASKA: • - _ ALLEN WEBBER. C.P.A.. PARTNER MARYSVILLE MCCOOK PRATT OKLAHOMA: GERALD L. HUNTER. C.P.A. PARTNER ALVA R. MICHAEL 8EATTY, C.P.A., PARTNER ' - KURTIS G.'SIEMERS.CPA- PARTNER LARRY D. HARVEY, CPA„ PARTNER August 6, 1984 Mr. Rex Larson Saline County Attorney 0 300 West Ash Salina., Kansas 67401 . Dear Mr. Larson: . Enclosed please find one copy of the financial statements of the City of Selina, Kansas,for•the year ended December -31, 1983, and -our report thereon. DVery•truly yours, Certified Public Accountant Enclosure. C� G G U . cc: Mr. Don Harrison City Clerk` 300 west Ash of g 0 Salina, Kansas 67401 �� . >✓C L �. a MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS - KENNEDY AND.COE• HOME OFFICE. P.O. BOX 1170, SAUNA. 1<967401 CERTIFIED PUBLIC ACCOUNTANTS` _ agcPN E:, RERz.tce.p. IaETw$w - E• T. SHEA. C.P.A. IRCTIPVEDI • UNITED BUILDING P.O. BOX 1 179' L. M. MERTZ. CPA IRETIREQI ' OFFICES - - - KANSAS: .SALINA• KANSAS 67401 ROBERT o. WILBUR, C.P.A. ANTHONY SAUNA - 813> 825-1861 MANAGING PARTNER COLEY SCOTT CITY _ JOHN W. POO$. C P.A:! PARTNER CONCORpIA SMITH CENTEa. ' ADLEY E. JOHNSON. C.P.A.. PARTNER GOODLANp WICHITA • " - - DON P. DIEDERICH, C.P.A., PARTNER ` PAUL A. MOTT. C.P.A.. PARTNER GREAT SENO .NEBRASKA: ALL MARV$VILL5 MCCOOK EN WEBQER. C.P,q.. PARTNER _ PRATT y OKLAHOMA. GERALD L. HUNTER. C FA.. PARTNER ALVA "R. MICHAEL BEATTY. L. P. A.. PARTNER • KURTIS G. SIEMENS. C.P. A., PARTNER LARRY D.IIFRVEY. C.P.A. PARTNER Auguslt 60 1984 Municipal Accounting Section Department•of Administration Division of Accounts and Reports State Office.Building Topeka, Kansas 66612 Gentlemen; Enclosed please find one copy of the financial statements.of the City of Salina, DKansas. for the year ended December 31,.1983,_And our report thereon. very truly yours, ortified,Pub1 Accountant PAM/so Enclosure , ec: Mr. Don Harrison City Clerk 300 West Ash ' Selina, Kansas 67401 i 1�1gu HIM - AREA CODE 913 U7 CITY CLERK'S OFFICE CITY - COUNTY BUILDING 300ASN D. L HARRISON. CMC P. 0.. BOX BOX I4S M. E. ABBOTT SALINA, KANSAS 87401 July 11, 1984 Kennedy and Coe Certified Public Accountants P.O. Box 1179 Salina, Kansas 67402 Gentlemen: In connection with your examination of (a) the financial statements of the various fund and account groups of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the cash and unencumbered cash balances at December 31, 1983, and re- ceipts and expenditures for the year then ended in accordance with the method of accounting described in the financial state- ments, and (b) The financial statements of the Water and Sewerage Department of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the financial position and results of operations and changes in financial position of the Department in conformity with generally accepted accounting principles for the year ended December 31, 1983, we confirm, to the best of our knowledge and belief, the following representations made to you during your examination. 1. We understand that we are responsible for the fair presentation in the financial statements of a, the cash and unencumbered cash balances and receipts and expenditures in accordance with the method of accounting described in the financial statements, and b, the financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles with regard to the financial statements of the Water and Sewerage Department. 2. We have made available to you all financial records and related data, including all minutes of the City Commissioners. 3. we are not aware of any irregularities involving management or employees that could have a material effect on either your evalu- ation of internal control or the financial statements. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Kennedy and Coe July 11, 1984 Page 2 4. There are no material transactions that have not been properly• recorded in the accounting records underlying the financial statements. 5. We have complied, to the best of our knowledge, with all aspects of regulations, contractual agreements, and bond ordinances, that would have a material effect on the financial statements in the event of noncompliance. 6. We have complied, to the best of our knowledge, with all applicable Kansas Statutes except as disclosed in the financial statements, which in the event of noncompliance might require disclosure in the financial statments in accordance with requirements of the State Municipal Accounting Board. 7. We are not aware of any material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5. 8. No events have occurred subsequent to December 31, 1983, which, had they been known at that date, would have required.adjustment to the financial statements. Respectfully submitted, Rufus y. Nye, City Manager C- 9A+ eve sue -o D.L. Harrison, City Clerk r� z " �u 2 ' M. E. Abbott, City Treasurer L 0. BENGTSON, CITY ATTORNEY 114 EAST IRON P O. BOK 903 SALINA. KANSAS 67401 AREA CODE 913 8232244 Kennedy and Coe P.O. Box 1179 Salina, KS 67402-1179 Gentlemen: In connection with your examination of the City of Salina, Kansas, as of December follaving information in regards to claims and assessments. April 23, 1984 the financial statenents of 31, 1983, I hereby submit the pending or threatened litigation, As of Deoenber 31, 1983, the City of Salina, Kansas, was involved in the following litigation: (1). St. John, et al, vs the City of Salina, Kansas, Case No. 83 C-238 �n the District court of Saline County, Kansas. Plaintiffs filed suit to declare the Central Mall rezoning ordinance invalid for the reason that the City did not follow statutory preoedures. The District Court of Sal- ine Ooamty, Kansas, ruled in favor of the City of Salina and dismissed the law suit. The plaintiffs have appealed the de- ci.siou to the Kansas Court of Appeals. Briefs have been filed in the court of Appeals by both parties, however, the case has not been submitted for argument. Plaintiffs ask no monetary judgment against the City. (2). City of Salina vs Union Cemeteries Association, et al., Case No. 83 C -174(a). This Is a condemnation suit M Ti the City of Salina filed against the Union Cemeteries Association to acquire necessary construction easements for east Crawford Street impxweoents. The Court awarded the Union Cemeteries Association the sum of $31,000 for its dam- ages, which has been paid. The Union Cemeteries Association has appealed this award and the case has been set for jury trial on Jun: 14, 1984, when the ultimate award for this pro- perty will be determined. In the pre-trial order, the Union Cemeteries Association's attorney indicated that their eviL- dence would indicate damages of $14,000. City's evidence indicates damages of less than the $3,000 paid. (3). Union Cemeteries Association vs City ofSalm Case No. 82 0-296 in the District Court of Saline county sas. This action was commenced by the Union Cemeteries Association against the City of Salina alleging that the MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES • NATIONAL LEAGUE OF CITIES Kan - City of Salina had inversely condemned a portion of its property for the widening of Crawford Street for which it had not been congpensated. After trial to the Court, the Court ruled. that the Union Cemeteries Association had de- dicatsd this property to the City in its Replat of a por- tion of the cemetery which was filed in 1972. As this land had been dedicated, the Court ruled that the City had title to the property and dismissed the suit. This case has been appealed by the Union Cemeteries Association to the Kansas Court of Appeals. Briefs have been filed in the Court of Appeals by both parties; however, the case has not been argued as of this date. In the event that the plaintiff would be successful in reversing the decision of the lower Court, the case would be remanded to the lower Court for trial and assessment of damages for the land the plaintiff alleges was taken by the City. (4). Tlerry Hopkins, et al. vs City of Salina, et al., Case No. 83 C-165the D strict Court of Saline County, Kansas. The plaintiffs in this action brought suit against the City of Salina, Kansas, and others, alleging that their trailer house had been damaged as the result of a shooting which occurred in an attempt to remove a person from the plaintiffs' trailer house. As the City of Salina has lia- bility insurance, this case is being defended by the Mary- land Casualty Coapany, the City's general liability insur- ance carrier. The insurance carrier has offered the City's defense, however, it is doing so under a reservation of rights in regards to the ultimate judgment which may be rendered by the City. Can April 16, 1984, the District judge entered an order dismissing this suit as to the City of Salina and the Salina Police Department. The case is still pending against John Woody, the Chief of police. Damages sought by the Plaintiffs in this case are approximately $15,000. (5). Huey vs City of Salina, Case No. 83-4092 in the Federal Distr Comm of Kansas. In this case the plaintiff alleges that her civil rights were violated by the Ci Saline County and others by reason of a strip search ocher person prior to being camdtei to the Saline County Jail. 'this case is being defended by. the Republic Insurance CagDeny, Who carries liability insurance on the City's employees. Plaintiff seeks judgment in excess of $10,000. Any judgmentshould be covered ty the insurance carried by the City. (6). Wilde vs Woody, et al., Case No. 83-41]] in the Federal District Court o Kansas. This case arises out of the plaintiff being arrested and placed in the Saline County Jail. Plaintiff alleges that his civil rights were violated by being defended meenbers of the Salina Police Department. This case is by the Republic D canoe Cm%wW, who car- ries liability insurance on the a pi%,ees of the City. Since -December 31, 1983, this case has been dismissed as to the City of Salina, Kansas. As of this date I know of no pending or threanteed litigation, claims and assessments with respect to which I have been engaged, but as to which I have not yet devoted substantive attention. I understand that whenever, in the course of performing legal services for the City of Salina, Kansas, with respect to a matter re- cognized to involve a unasserted possible claim or assessment that may call for financial statement disclosure, if I have formed a pro- fessional conclusion that I should disclose or consider disclosure concerning such possible claim or assessments as a matter of profes- sicnal responsibility to the City, I will so advise the City and will consult with it concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standard #5. Respectively submitted, L. O. aengtsoan City Attorney 1 w 4 AREA CODE 913 5279653 CITY - COUNTY BUILDING 300 WEST ASH P. O. BOX 7n6 SALINA, KANSAS 67401 April 20, 1984 Kennedy and Coe Certified Public Accountants P.O. Box 1179 Salina, Kansas 67402 Gentlemen: CITY CLERK'S OFFICE 0, L HARRISON, CMC M. E. ABBOTT In connection with your examination of the financial statements of the Water and Sewerage Department of -the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the financial position and results of operations and changes in financial position of the Department in con- formity with generally accepted accounting principles for the year ended December 31, 1983, we confirm, to the best of our knowledge and belief, the following representations made to you during your examination. 1. We understand that we are responsible for the fair presentation in the financial statements of the financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles. 2. We have made available to you all financial records and related data, including all minutes of the City Commissioners. 3. We are not aware of any a. Irregularities involving management or employees who have significant roles in the system of internal accounting control. b. Irregularities involving other employees that could have a material effect on the financial statements. C. Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the financial statements. 4. There are no related parties for which transactions should be disclosed in the financial statements. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Kennedy and Coe April 20, 1984 Page 2 5. We have complied, to the best of our knowledge, with all aspects of regulations, contractual agreements, and bond ordinances, that would have a material effect on the financial statements in the event of noncompliance. 6. We have complied, to the best of our knowledge, with all applicable Kansas Statutes, which in the event of noncompliance might require disclosure in the financial statements in accordance with require- ments of the State Municipal Accounting Board. 7. We are not aware of any material liabilities or gain or loss con- tingencies that are required to be accrued or disclosed by State- ment of Financial Accounting Standards No. 5. 8. There are no unasserted claims or assessments that the City Attorney has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5. 9. There are no material transactions that have not been properly recorded in the accounting records underlying the financial state- ments. The adjusting journal entries as of December 31, 1983, which have been proposed by you, are approved by us and will be recorded by us in our accounting records. 10. No events have occurred subsequent to December 31, 1983, which, had they been known at that date, would have required adjustment to the financial statements. Respectfully submitted, uv�� Rufus L Nye, City Manager n D. L. Harrison, City Clerk M. E. Abbott, City Treasurer Y � h P. �.w. i _ � �_ ti.� t :. ..�4 I. .�-�., I •-••—'I i } . 9 IS 11._ I.i r" ,. t_ ..aen. Cpn:: els HS].gC.+ n-u'a:::v nuu oa:c CITY CLERK'S OFFICE r.;. E. auaor April 17, 1984 Mr. L. 0. Bengston City Attorney P.O. Box 903 Salina, Kansas 67402-0903 Dear Mr. Bengston: In connection with an examination of our financial statements at December 31, 1983, and for the year then ended, please furnish to our auditors, Kennedy and Coe, P.O. Box 1179, Salina, Kansas 67402, the information requested below involving matters as to which you have devoted substantive attention on behalf of the City in the form of legal consultation or representation. Your response should include matters that existed at December 31, 1983, and during the period from that date to the effective date of your response. (Please specify the effective date of your response if it is other than the date of reply.) PENDING OR THREATENED LITIGATION, CLAIMS AND ASSESSMENTS (EXCLUDING UNASSERTED CLAIMS AND ASSESSMENTS): Please furnish a list of all litigation, claims and assessments (excluding un- asserted claims and assessments) asserted against the City even though legal proceedings have not started. Information regarding each case should include, but not be limited to: 1. The nature of the ligitation including identification of: a. The proceedings b. The claim(s) asserted c. The amount of monetary or other damages sought. (If no amounts are stated in preliminary case filings, please so state.) d. Whether or not the potential damages are covered by insurance and, if so, to what extent (policy limits, deductibles, etc.) e. The objectives sought by the plaintiff (if any) other than monetary or other damages (such as performance or discontinued performance of certain actions.) 2. The progress of the case to date (in the process of discovery, trial or appeal.) MEM5E'± ... KM SAS LLAGUE OF MUNICIPA'.-ITIES - NAl IOY.AI. LEA SUL OF CITIES April 17, 1984 Page 2 3. How the City is responding or intends to -respond to the litigation, e.g., to contest the case vigorously or to.seek out-of-court settlement. 4. Your evaluation of the likelihood of an unfavorable outcome. (To avoid potential misunderstandings of your opinion, please avoid vague phrases such as or similar to "meritorious defense", "without substantial merit", or "reasonable chance of dismissal".) If no opinion can be expressed, please so state and explain the reasons. 5. An estimate as to the amount or range of potential loss. It is important that you express an upper limit on possible and probable losses. If no range or upper limits can be expressed, please so state and explain the reasons. Also, please identify any pending or threatened litigation, claims and assessments with respect to which you have been engaged, but as to which you have not yet devoted substantive attention. UNASSERTED CLAIMS AND ASSESSMENTS: We understand that whenever, in the course of per legal services for us with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure, if you have formed a professional conclusion that we should disclose or consider disclosure con- cerning such possible claim or assessment, as a matter of professional responsi- bility to us, you will so advise us and will consult with us concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards No. 5. Please specifically confirm to our auditors that our understanding is correct. Please specifically identify the nature of and reasons for any limitation on your response. In order for our auditors to timely complete their examination of our financial statements for the Water and Sewerage Department, it is requested you respond not later than April 23, 1984. Please return your response directly to our auditors in the enclosed return envelope. Verryl truly yours, D. L. Harrison City Clerk cc: Kennedy and Coe, P.O. Box 1179, Salina, Kansas 67402 J STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor JAMES R. COBLER Director of Accounts and Reports July 21, 1983 To the Governing Body: City of Salina Salina Kansas r State Office Building Topeka, Kansas 66612 (913) 296-2311 The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124. Date of Audit Report: June 13, 1983 Municipality Audited: City of Saltna Date Received in This Office: July 21, 1983 Audit Report Covering Audit Period Financial Statements December 31, 1982 Report by: Kennedy and Coe Salina, KS Licensed Municipal Public Accountant in charge of a+idit: License No. Certified Public -Accountant David J, Mills in charge of audit: Permit No. 2682 Very truly yours, James R. Cobler, Director Division of Accounts and Reports by "L/� e Original to be attached to voucher and filed with Clerk of Municipality. Blue Copy for Accountant's File. AR -102 (7-29-76) CITY OF SALINA ANSA CODE 913 827-9553 CITY - COUNTY BUILDING 300 WEST ASN P. O. BOX 7M SALINA, KANSAS 6701 June 23, 1983 William Ervin, Chief Municipal Accounting Section Division of Accounts and Reports State Office Building Topeka, KS 66612 Dear Mr. Ervin: CITY CLERK'S OFFICE 0. L. HARRISON, CMC M. E. ABBOTT Pursuant to a resolution passed at its meeting on June 13, 1983, the governing body found that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to the requirements of the cash basis law and budget laws of Kansas and are of no significant value to the governing body or members of the general public of this municipality. The governing body hereby requests a waiver from the following components of generally accepted accounting principles for the fiscal year ended December 31, 1982 in accordance with the provisions of K.S.A. 75-1120a. Very truly yours, D. L. Harrison City Clerk Enclosures: Resolution Number 83-3645 CC: Dave Mills, CPA Kennedy and Coe, Certified Public Accountants P. 0. Box 1179 Salina, KS 67402-1179 MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES A RESOLUTION REQUESTING THAT THE DIRECTOR OF ACCOUNTS AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS PURSUANT TO K.S.A. 1982 SUPP. 75-1120a. BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Board of Commissioners hereby finds that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to requirements of the cash basis and budget laws of Kansas and are of no significance and value to the governing body or the general public of the City of Salina. Section 2. That the Director of Accounts and Reports is hereby requested to waive the requirements of law relating to the preparation of financial statements and financial reports that conform to generally accepted accounting principles pursuant to K.S.A. 1982 Supp. 75-1120a. Section 3. That this Resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 13th day of June, 1983. (SEAL) ATTEST: —D L.Harrison, City Clerk n r. nurgessl M<yyor STATE OF KANSAS t 0 DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN . _. Governor JAMES R.COBLER Director of Accounts and Reports June 27, 1983 D. L. Harrison City Clerk 300 West Ash P.O. Box 746 Salina, Kansas 67401 Dear Member: State Office Building Topeka, Kansas 66612.1574 (913) 296-2311 t As you have requested, and as provided by K.S.A. 1982 Supp. 75-1120a(c) (1982 S.B. 531), I hereby waive the requirements of subsection (a) to the extent requested by the governing body for the fiscal year ended December 31, 1982 Very truly yours; James R. Cobler, Director Division of Accounts and Reports JRC:WLE:ps HOME OFFICE: P.O. BOX I ITS. SAUNA. KB. 67AOI OFFICES KANSAS ANTHONY SALINA BELLEVILLE SCOTT CITY COLBY SMITH CENTER CONCORDIA WICHITA DCODUND NEBRASKA: GREAT SEND MCCOOK HUTCHINSON OKLAHOMA: MARYSVILLE ALVA MATT ADLEY E. JOHNSON. C.P.A.R MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE M. J. KENNEDY. C.P.A. METREDI CERTIFIED PUBLIC ACCOUNTANTS E. Y. SHEA. C.P.A. (RETIRED) L. M. MERTZ. C.P.A. METIREDI UNITED BUILDING. BOX 1179 SALINA, KANSAS 67401 RALPH E. REITZ. C.P.A. JOHN W. P009. C.P.A. 913 .625-1561 ROBERT D. WILBUR. C.P.A. ADLEY E. JOHNSON. C.P.A.R C DOH P. DIETE.CP.A. p October 12 1982 , PAUL A. MOTT. C.P.A. ALLEN WEBBER. C.P.A. GERALD L. HUNTER. C.P.A. R. MICHAEL BEATTY. C.P.A. KURTIS O. SHINERS, C.P.A. LARRY D. HARVEY. C.P.A. The Honorable Mayor Keith Dockers and The City Commissioners City of Salina Salina, Kansas 67401 We submit the following proposal for examination of the financial statements of the City of Salina, Kansas for the year 1982. 1. Our examination will be made in accordance with generally accepted auditing standards and the Minimum Standard Audit Program approved by the State Municipal Accounting Board and, accordingly, will include tests of the accounting records and such other auditing procedures as we consider necessary in the circumstances. 2. The scope of our examination will include all funds of the City except: Salina Public Library Salina - Saline County Board of Health Saline County - City Building Authority Salina Recreation Commission Salina Airport Authority Firemen's Relief Association 3. The examination will be performed under the direct supervision of a Certified Public Accountant, with the assistance of such other personnel as we consider necessary. 4. We may perform part of the examination procedures prior to December 31, 1982, if considered by us advantageous for the timely completion of the engagement. 5. Our fee for services rendered in connection with this engagement shall be computed at our standard billing rates for municipalities. However, the fee shall not exceed a maximum of $17,500 allocated as follows: Bicentennial Center Fund $ 5,000 General and Other Funds 12,500 5 L,6,J t c. Total $17,500 7,S -c- Wys The Honorable Mayor Keith Duckers and The City Commissioners October 8, 1982 Page 2 6. In the event laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, either or both of which in our judgement, materially increases the time required to perform the services set forth in this contract, we reserve the right to renegotiate the maximum fee with the City Commissioners. We will be happy to discuss any aspect of this proposal with you at your convenience. If this meets with your approval, please sign in the spaces indicated below. The duplicate copy is for your file. Very truly yours, I'Lle'� a4t'e-'e c4w� Certified Public Accountants Accepted this �_ day of - City of Salina, Kansas City Clerk - City of Salina, Kansas ( 22 k m . k _ m § § (c ( ( J z |� } u ( (§ v ■ ( 0 3 03 ;¢ / G _ m a & d . R 4 Q , m@ L - r 2 ` w cl § ] � 2 §§ ` w ƒ m § CDG [ . 7CD\ ] § "0 a) \ \03 k ) CD / ( p �kg & § / 9 � X2 a m ) O 4 } � « E _ � / ! � ) /- - r ) R & \ w Qh ! | \ ! � HOME OFFICE: P. O. Box 1116 SALINA. KANSAS 61601 612.026.1561 City of Salina City Hall Building Salina, KS 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDINO. P. 0. BOX 1116 SALINA. KANSAS 61601 612 - 626.1661 EI 548-0567703 August 11, 1983 Professional services through July 31, 1983, including the following: Examination of financial statements for year 1982 and issuance of report thereon (Maximum per contract is $17,500.00) Completion of contract dated April 14, 1980, for assistance in implementation of fixed asset system for the Water Department S-52920 OFFICES IN KANSAS NEBRASKA OKLAHOMA 7, Soe 2r w�.kc $16, 476.76 3 9 7k-'(3 2,003.62 (,1fa&"'`" X418.480.38 Pd atA-'� MEMBERS OF AMERICANYNSTITUTE OF CERTIFIED PUSUC,ACCDUN TANT.S KENNEDY AND CIO ROME OFFICE: - RALPH E.'REITZ,.C.P.A, WEOREDI PD. BOX 1179. SAUNA. KS 64401' CERTIFIED PUBLIC ACCOUNTANTS . - E. T. SHEA.•CA.A. IRETIflEOI , - - UNITED MHLbING P. O. BOX 11-19 � _ ' L_ M. MERTZ. CP. A. IRE IREM , OFFICES SAUNA. KANSAS 67401 ROBERT D. WILBUR. CP.A. KANSAS: - MANAGING PARTNER ANTHONY SALINA 813,; 825-.1561..., _ ,JOHN 0.'. POOS, C PA.. PARTNER COLBY SCOTT Cm- ' CONCORDIA SMITH CENTER._ - .HOLEY E JOHNSON: C.P,A_ PARTNER 'GD WICHITA .DON P, MEDERICNCPA_ PART NER GREAT BEng NEBRASKA: PAULA. MO". C.PA.. PARTNER MARYSVILLE MCCOOR ALLEN WEBBER, CAA.. PARTNER ' GERALD L, HUNTER, CRA.. PARTNER PRATT OKLAHOMA: - R. MICHAEL BEATTY, C:PA-_ PARTNER + ALVA 'NURTI9 p, SIEMENS. C.P.A.. PARTNER - - - •LARRY D. HARVEY, GPA., PARTNER July 20, 1983.' Mr...Rex Lorson Saline County Attott>ep 120 East Iron Salina, Ka4eas'67401 . Dear Mr. Lorson: .Please.f nd enclosed.a copy of our report on eicamination of th6,City"of Salina,. Salina, Kansas, for the year ended December 31, 1982. Very truly Yours, DCertified Public Accountant LDH/so . Enclosure cc, Mr. Don Harrison City Clerk. 300 Hest Ash '. Salina,,,Kansas 617401 • ' ' • MEMBERS OF'AMERICAN. INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY .AND COE _ HOME OFFICE: - - - RAL PH.E..REITZ. C.P.A. IREYIREDI P.D. BOX 1170. SALINA: X.1.01 CERTIFIED PUBLIC ACCOUNTANTS E. T. sHEA. CPA, mErlaEw UNITED 9UILDINI,' P. O. BOX 1479 L. M. MERTi. C.PA,: METIREDI OFFICES SAUNA. KANSAS 67401 KANSAS: ROBERT O. WILBUR. C.P.A- ANTHONY - ANTHONY SAUNA' $013 -'82$x1581 MANAGING PARTNER , - JOHN W. POO., CP.A.:PARTNER CONCO SCOTT CITT ^ ADLEV E. JOHNSON, OP:A,• PARTNER CONCORDIA SICHITAMffH TEa DON P. OIEDERICH. CRA. PARTNER GOOOLAND WICHITA PAUL A MOTT. CFA.. PARTNER GREAT SEND NEBRASKA: - _ ALLEN WEBBER, C.P.A.. PARTNER MARYSVILLE MCCOOK GERALD L. HUNTER: C.P.A.. PARTNER PRATT OKLAHOMA: - R. MICHAEL BEATTY. C.P.A., PARTNER ALVA ! KURTIS G. SIEMERS. CPA, PARTNER- LARRY O. HARVEY. C.P.A., PARTNER July 20,'1983. Municipal Accounting Section Accounts and Reports Division State Office Building , Topeka, Kansas 66612' Gentlemen: A Please find enclosed a copy'of our report on examination of -the City of -Salina, Salina. Kansas, for:the year ended.Daeember 31,1982, Very.truly yours, DCertified Public• Accountant' LDH/so Enclosure cc: Mr. Don Harrison City Clerk 300 West Ash Salina, Bausas'67401 .L t�Y CI`T`Y OF SALINA � AREA CODE 910347-9650 CITY - COUNTY BUILDING 400 WEST ASN P. O. Box 796 SALINA. KANSAS 64301 June 2, 1983 Mr. L. 0. Bengston City Attorney P.O. Box 903 Salina, Kansas 67401 Dear Mr. Bengston: CITY CLERK'S OFFICE D. L. HARRISON. CMC M. E. ABBOTT In connection with an examination of our financial statements at December 31, 1982 and for the year then ended, please furnish to our auditors, Kennedy and Coe, P.O. Box 1179, Salina, Kansas 67401,.the information requested below involving matters as to which you have devoted substantive attention on behalf of the City in the form of legal consultation or representation. Your response should include matters that existed at December 31, 1982, and during the period from that date to the effective date of your response. (Please specify the effective date of your response if it is other than the date of reply.) PENDING OR THREATENED LITIGATION CLAIMS AND ASSESSMENTS (EXCLUDING UNASSERTED CLAIMS AND ASSESSMENTS): Please furnish a list of all litigation, claims and assessments (excluding unasserted claims and assessments) asserted against the City even though legal proceedings have not started. Information regarding each case should include, but not be limited to: 1. The nature of the litigation including identification of: a. The proceedings b. .The claim(s) asserted c. The amount of monetary or other damages sought. (If no amounts are stated in preliminary case fillings, please so state.) d. Whether or not the potential damages are covered by insurance and, if so, to what extent (policy limits, deductibles, etc.) e. The objectives sought by the plaintiff (if any) other than monetary or other damages (such as performance or discontinued performance of certain actions). 2. The progress of the case to date (in the process of discovery, trial or appeal). .S LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES June 2, 1983 Page 2 3. How the City is responding or intends to respons to the litigation, e.g., to contest the case vigorously or to seek out-of-court settlement. 4. Your evaluation of the likelihood of an unfavorable outcome. (To avoid potential misunderstandings of your opinion, please avoid vague phrases such as or similar to "meritorius defense," "without substan- tial merit" or "reasonable chance of dismissal.") If no opinion can be expressed, please so state and explain the reasons. 5. An estimate as to the amount or range of potential loss. It is important that you express an upper limit on possible and probable losses. If no range or upper limits can be expressed, please so state and explain the reasons. Also, please identify any pending or threatened litigation, claims and assessments with respect to which you have been engaged, but as to which you have not yet devoted substantive attention. UNASSERTED CLAIMS AND ASSESSMENTS: We understand that whenever, in the course of performing legal services for us with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure, if you have formed a professional conclusion that we should disclose or consider disclosure concerning such possible claim or assessment, as a matter of professional responsibility to us, you will so advise us and will consult with us concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards No. 5. Please specifically confirm to our auditors that our understanding is correct. Please specifically identify the nature of and reasons for any limitation on your response. Very truly yours, D. L. Harrison City Clerk cc: Kennedy and Coe, P.O. Box 1179, Salina, Kansas 67402 I �.r CITY OF SALINA L. O. BENGTSON, CITY ATTORNEY 114 EAST IRON P O BOX 903 SALINA. KANSAS 61401 AREA CODE 913 8212244 June 7, 1983 Kennedy & Coe Certified Public Accountants P.O. Box 1179 Salina, Kansas 67402 He: Financial Audit of the City of Salina December 31, 1982 Gentlemen: I have received a letter from Nr. D. L. Harrison, City Clerk, in regards to your examination of the financial statement of the City of Salina, Kansas, as of December 31, 1982. In regards to your request for pending or threatened litigation, claims and assessments as of December 31, 1982, please be advised of the following: (a). City of Salina, Plaintiff, vs Union Cemeteries Association, et al., Defendants, Case No. 82 C-174, in the District Court of Saline County, Kansas. This proceeding is a condemnation action commenced by the City of Salina against various property owners located along east Crawford Street. The Union Cemeteries Association, one of the defendants, filed an appeal from the appraisers' award which was made in this action. No specific amount of monetary damage is sought other than the defendant's assertion that the award of the appraisers in the amount of $11,500 was insufficient. It is the opinion of the undersigned that the maximum amount of damages which could be assessed over and above the award which has been previously paid would be less than $10,000. No portion of any award would be covered by insurance. (b). Union CemeteriesAssociation, Plaintiff, vs City of Salina, Defendant, Case No. 82 C-296, in the District Court of Saline County, Kansas. This is an action whereby the plaintiff claims that the City in making improvements to east Crawford Street inversely condemned certain Property owned by it. This claim for damages is basest on the fact that a legal survey made in 1976 changed the location of the center of Crawford Street fron what was previously assumed to be the enter line. If the plaintiff should prevail the City would be required to pay the Union Cemeteries Association for a tract of land consisting of approximately 20,000 square feet. It is the opinion of the undersigned that the plaintiff will not be successful in this litigation, howeTer, in the event that plaintiff was successful, it is possible that the damages could be in the vicinity of $25,000. No insurance is applicable to this claim. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Kennedy & Coe June 7, 1983 Page 2 Since December 31, 1982, the following litigation has been filed against the City of Salina, Kansas: (a). Ruth Huey, Plaintiff, vs City of Salina, et al., Defendants, Case No. 83-4092 in the United States District Court of the District of Kansas. This is a class action law suit consisting of seven counts in which the plaintiff claims that the City of Salina, Board of County Commissioners of Saline County, Kansas, Al Naes, Sheriff, and John Woody, Chief of Police, violated her civil rights. This law suit is for approximately $6,000,000; however, the maximLn liability against the City would be $500,000 pursuant to the Kansas Tort Claims Act. It is the opinion of the undersigned that the claim is without merit as to the City of Salina, Kansas. We are advised that the claim falls under our Officers' and Employees' Liability Insurance Policy which was issued by the Republic Insurance Company. (b). Michael L. Wilde, Plaintiff, vs St. John's Hospital, Saline County Sheriff's Office and the City of Salina, Defendants, Case No. 83- 4111 in the United States District Court of the District of Kansas. In this action the plaintiff alleges that police officers of the City illegally, under color or law, handcuffed Mr. Wilde and escorted him to the Saline County Jail. Plaintiff seeks the sum of $500,000 from the City of Salina, Kansas, plus costs and attorney fees. It is the opinion of the undersigned that this case is without merit and should be successfully defended. This case is not covered by insurance as the City was aware of a possible claim prior to the inception of its liability policy. It is anticipated that the cost of defense may amount to $5000. This will also confirm that if in the course of performing legal services for the City of Salina, Kansas, that I become aware of any unasserted claim or assessments that I will consult with the City officials ca-,cerning possible claims and assessments in accordance with the applicable requirements of the State Financial Accounting Standard No. 5. Respectfully submitted, -1 i L. O. Bengtson City Attorney IAB/dg cc: City Clerk APER CODE 913 BD.9E113 CITY CLERK'S OFFICE CRY- COUNTY BUILDING D. L. HARRISON. CMC NID WEST ASN M. E. ABBOTT P. o. Box Tie SALINA. KANSAS $701 .Tune 13, 1983 Kennedy and Coe Certified Public Accountants P.O. Box 1179 Salina, Kansas 67401 Gentlemen: In connection with your examination of (a) the financial statements of the various fund and account groups of the City of Salina for the purpose of expressing an opinion. as to whether the financial statements present fairly the cash and unencumbered cash balances at December 31, 1982, and re— ceipts and expenditures for the year then ended in accordance with the method of accounting described in the financial state— ments, and (b) the financial statements of the Water and Sewerage Department of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the financial position and results of operations and changes in financial position of the Department in conformity with generally accepted accounting principles for the year ended December 31, 1982, we confirm, to the best of our knowledge and belief, the following representations made to you during your examination. 1. We understand that we are responsible for the fair presentation in the financial statements of a, the cash and unencumbered cash balances and receipts and expenditures in accordance with the method of accounting described in the financial statements, and b. the financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles with regard to the financial statements of the Water and Sewerage Department. 2. We have made available to you all financial records and related data, including all minutes of the City Commissioners. 3. We are not aware of any irregularities involving management or employees that could have a material effect on either your evalu— ation of internal control or the financial statements. 4. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Kennedy and Coe June 13, 1983 Page 2 5. We have complied, to the best of our knowledge, with all aspects of regulations, contractual agreements, and bond ordinances, that would have a material effect on the financial statements in the event of noncompliance. 6. We have complied, to the best of our knowledge, with all applicable Kansas Statutes except as disclosed in the financial statements, which in the event of noncompliance might require disclosure in the financial statements in accordance with requirements of the State Municipal Accounting Board. 7. We are not aware of any material liabilities or gain or loss con- tingencies that are required to be accrued or disclosed by State- ment of Financial Accounting Standards No. 5. 8. No events have occurred subsequent to December 31, 1982, which, had they been known at that date, would have required adjustment to the financial statements. fully submitted, I D. L. Harrison, City Clerk M. E. Abbott, City Treasurer ON.r. STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN State Office Building Governor Topeka, Kansas 66612 JAMES R. COBLER August 5, 1982 (913) 296-2311 Director of Accounts and Reports To the Governing Body: City of Salina Salina Kansas The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124. Date of Audit Report: July 9, 1982 Municipality Audited: City of Salina Date Received in This Office: July 30, 1982 Audit Report Covering Audit Period Financial Statements December 31, 1981 Report by: Kennedy and Coe Salina Licensed Municipal Public Accountant in charge of audit: License No. Larry Harvey Certified Public Accountant 2673 in charge of audit: Permit No. Very truly yours, James R. Cobler, Director Division of Accounts and Reports by Original to be attached to voucher and filed with Clerk of Municipality. Blue Copy for Accountant's File. AR -102 (7-29-76) JOHN CARLIN GoveinOr JAMES R. COBLER Director of Accounts and Reports STATE OF KANSAS DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS Governing Body City of Salina 300 West Ash P.O. Box 746 Salina, Kansas 67401 Dear t4ember: August 26, 1982 State Office Building Topeka, Kansas 66612-1574 (913) 296-2311 RECEIVED AUG 27 1982 CITY MAEiAGER'S OFFICE As you have requested, and as provided by K.S.A. 1982 Supp. 75-1120a(c) (1982 S.B. 531), I hereby waive the requirements of subsection (a) to the extent requested by the qoverning body for the fiscal year ended December 31, 19M Very truly yours, n CA� V James R. Cobler, Director Division of Accounts and Reports JRC:WLE:ps JOHN CARLIN Governor JAMES R.COBLER Director of Accounts and Reports STATE OF KANSAS 0 DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS SEP 3 1982 Honorable Mayor and City Commission Salina City Hall 300 W. Ash, P.O. Box 746 Salina, Kansas 67401 Mayor and Commissioners: State office Building Topeka, Kansas 66612-1574 (913) 296-2311 RECEIVED SEP 7 1982 CITY MANAGER'S OFFICE We have reviewed the financial report of the City of Salina, Kansas for the year ended December 31, 1981, and submit the following comments. Your auditor has been notified that the financial report cannot be accepted as filed because we have no waiver (from generally accepted accounting principles) request from you. Please see the June, 1982 Municipal Accountants, Bulletin for the recommended method of requesting the waiver. Your auditor has reported various statutory non-ccmpliances. We urge that you work with your auditor in correcting these deficiencies. We wish to remind you that the financial statements are those of the munici- pality and the responsibility for their accuracy and presentation lies in the governing body. The auditor is engaged to examine the financial statements and report his opinion thereon. We believe you desire this type of information to assist you in administering your official duties in accordance with applicable statutes. JRC:WLE:LJC:po cc: Larry D. Harvey, CPA Very truly yours, James R. Cobler, Director Division of Accounts and Reports William L. Ervin, Chief Municipal Accounting Section STATE OF KANSAS 0 DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor JAMES R.COBLER Director of Accounts and Reports SEP 2 2 1982 Don Harrison, City Clerk Salina City Hall Salina, Kansas 67401 Dear Mr, Harrison: State Office Building Topeka, Kansas 66612-1574 (913) 296-2311 Per your phone call on September 7, this is to acknowl- edge that our office has received and accepted your request for waiver from generally accepted accounting principles pursuant to K.S.A. 75-1120a, for the year ended December 31, 1981. If you plan to request such a waiver in subsequent years, unnecessary correspondence may be avoided by assuring that the waiver request is received and re- corded well ahead of the actual audit and report filing. We apologize for your recent receipt of a letter stating the waiver had.not been received, but this is sometimes unavoidable when the request is received after filing of the report. Your auditor has been notified that your report for 1981 will be accepted as filed. Please feel free to use the services of this office if you have further questions. Very truly yours, William L. Ervin, Chief Municipal Accounting Section WLE:SBL:cj CC: Larry Harvey, CPA ♦ ♦ sf° n1ii�� Y I'��� :� i i I�s �.: x4y l� k�l:. ,�Y �:_'t AREA CODE 913 SIIT.WE, CITY CLERK'S OFFICE CITY- COUNTY BUILDING D. L HARRISON, CMC 330 WEST ASN M. E ABBOTT P. O. Box ?a SAUNA. KANSAS BTC% August 10, 1982 James R. Cobler, Director Division of Accounts and Reports State Office Building Topeka, Kansas 66612 Dear Mr. Cobler: Pursuant to a motion passed at its meeting on August 9, 1982, the governing body, finding that financial statements and financial reports prepared in conformity with generally accepted accounting principles are not relevant to the cash basis law and budget laws of Kansas and are of no significant value to the governing body or general public, request a waiver of the requirements of law relating to the preparation of financial statements and financial reports, for the year ended December 31, 1981, in accordance with the provisions of House Bill 2041 of the 1981 Legislature. Very truly yours, D. L. Harrison City Clerk MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES RESOLUTION NUMBER A RESOLUTION REQUESTING THAT THE DIRECTOR Of ACCOUNTS AND REPORTS WAIVE THE REQUIREMENTS OF LAW RELATING TO THE PREPARATION OF FINANCIAL STATEMENTS AND FINANCIAL REPORTS PURSUANT TO 1981 HOUSE BILL 2041. BE 1T RESOLVED by the Governing Body of the City of Salina, Kansas: Section i. That the Board of Commissioners hereby finds that financial statements and financial reports prepared In conformity with generally accepted. accounting principles are not relevant to requirements of the cash basis and budget laws of Kansas and are of no significance and value to the governing body or the general public of the City of Salina. Section 2. That the Director of Accounts and Reports is hereby requested to waive the requirements of law relating to the preparation of financial statements andfinancial reports that conform to generally accepted accounting principles pursuant to 1981 House Bill' 2041. Section 3. That this resolution shall be in full force and effect from and after Its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 9th day of August, 1982.. o_ KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS 525 FIRST NATIONAL BANK BUILDING WICHITA. KANSAS 67202 316 - 263-6202 218 WEST SEVENTH. P. O. BOX 625 CONCORDIA. KANSAS 66901 913 - 243-1616 109 SOUTH NINTH. P. O. BOX 33 MARYSVILLE. KANSAS 66308 913 - 562-5313 TEMPLE BUILDING. P. O. BOX 604 MCCOOK, NEBRASKA 69001 308 - 345-8717 City of Salina City Hall Building Salina, KS 67401 y UNITED BUILDING. P. O. BOX 1179 SALINA. KANSAS 67401 913 - 823.1361 August 19, 1982 Professional services through July 31, 1982, related to examination of financial statements for year 1981 and issuance of report on examination, as follows: Bicentennial Center Fund Other City of Salina Funds 1910 18TH STREET, P. O. BOX 929 GREAT BEND. KANSAS 67530 316 - 792.5275 1002 BROADWAY. P. O. BOX 107 GOODLAND. KANSAS 67735 913 - 888-3676 1650 WEST FOURTH. P. O. BOX 426 COLBY. KANSAS 67701 913 - 462.3819 608 SOUTH MAIN, P. O. BOX 631 SCOTT CITY. KANSAS 67671 316 - 672-5319 $ 5,250.00 11,000.00 $16,250.00 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS X 525 FIRST NATIONAL BANK BUILDING WICHITA, KANSAS 67202 316 - 263-6202 215 WEST SEVENTH. P. O. BOX 625 CONCORDIA. KANSAS 66901 913 - 243.1616 109 SOUTH NINTH. P. O. BOX 33 MARYSVILLE. KANSAS 06508 913 - 862-8313 TEMPLE BUILDING. P. O. BOX 604 MCCOOK. NEBRASKA 69001 308 - 348-5717 UNITED BUILDING. P. O. BOX 1179 SALINA, KANSAS 67401 913 - 825-1361 August 19, 1982 City of Salina - Revenue Sharing Fund City Hall Building Salina, KS 67401 Professional services through July 31, 1982, related to compliance examination of the General Revenue Sharing Fund for the year 1981 and issuance of our report on examination 1910 19TH STREET. P. O. BOX 929 GREAT BEND, KANSAS 67530 316 - 792-5275 1002 BROADWAY, P. O. BOX 107 GOODLAND. KANSAS 67733 913 - 899-3676 1650 WEST FOURTH, P. O. BOX 426 COLBY, KANSAS 07701 913 - 462.3919 606 SOUTH MAIN. P. O. BOX 631 SCOTT CITY. KANSAS 67671 316 - 872.8319 $3,600.00 Kennedy and Coe Certified Public,Accountants .P.O. Bos 1179 Salina, Kansas 67401 Gentlemen: In connection•with your examination of the financial statements of the various fund and account groups of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the cash andunencumbered cash balances at December 31, 1951, slid re ceipts and expenditures for."the year then ended in accordance with the method of accounting described in the financial.state meats, and e the financial statements of the Water and Sewerage Department'.of the City of Salina for the purpose of expressing an opinion as to whether the financial statements present fairly the"financial position and results of operations and changes in financial -. position of the Department in conformity with generally accepted accounting principles for the year ended December 31, 19819 we confirm, to the beet.of_our knowledge and belief, the following'representations made to you during your:examination. 1. We undarstand that we are responsible for the fair presentation in the financial statements of e the cash and unencumbered cash balances; and receipts - and expandieuree in,accordancs with.the method of, accounting described in the financial stafemenis,. and :e the financial.position, results of •operations, and •' . chenges.in financial position in with'`.. generally accepted accounting principles with regard to the financial statements of the Water and Sewerage Department. 2. We have made available to you all financial records and related data, including•all.minutes of the Citp Commissioners, 4 3. We are not aware of any irregularities involving management or . •. employees that could have a material effect on either your evalu— ation of internal control or the financial statements. . .4. There are no material transactions that. have not been properly recorded in the accounting records underlying the financial statements. Kennedy and Coe July 20, 1982 Page 2 5,' We have coniplied', to the beat of our-knowledge, with all aspects of regulations,-contractual agreements, and bond ordinances, that would have a material affect on the financial statements in the . event of noncompliance, 6, tie have compliedg to the beet of our knowledge, with all applicable Kansas Statutow except as disclosed In the financial statements,, which in the event of,noncompliance might require disclosure in the financial statements in accordance with-requiremeate of the State Mnicipal Accounting Board. 7, We-are not aware of any material liabilities or gain or lose con— tingencies that are required to be accrued or disclosed by State- ment of Financial Accounting Standards No. 54 .8. No events have-occurred-subsequent-to December-31i 1981, whicho. had they been known at thsit'date would have required adjustment tog or-disclosure Ing the financial statements. - 8sspectfully submitted., , fus•L, Nye, City Manager:' D.t..Harrison, City .Clark .B, Abbott, City Treasurer COPY' CITY OF SALIVA Salina,,Kansas July 20, 1982 Kennedy and Coe Certified Public Accountants P.O. Box 1179 Salina, Kansas .67401 Gentlemen: In connection with your compliance examination of the Federal Revenue Sharing Funds of the City of Salina, Kansas for the year 1981, we confirm, to the best of our knowledge and belief the following representations made to you during your examin- ation. • 1. Weare responsible for the administration of the Federal Revenue Sharing Funds in accordance with the requirements of the Office of Revenue Sharing and the Bureau of the Census. 2. We have made available to you all financial records and data pertaining to Che Revenua Sharing Funds. 3. There have been no irregularities involving city employees who have significant "lee in the system of, internal control that Could have a•material affect on compliance with acceptable ORS regulations. 4. There have been no communications from regulatory agencies.con- earning noncompliance with, or deficiencies 1n,'ORS reporting practices that could have a material effect on -the disposition or status, -of the Federal Revenue Sharing Funds. S. The City has complied with the applicable requirements of the Revenue Sharing Act and regulations except as disclosed in your report. Respectfully submitted, Rufus Nye, City Manager D. L. Harrison, City Clerk W. S. Bennett, Director of Human Relations Dean Boyer, Director_ of Engineering and Utilities M. B. Abbott, City Treasurer AREA CODE 819 827.9169 CITY. COUNTY BUILDING 991 WEST ASH P. O. BOX To SALINA, RANSAS 87911 June 9, 1982 Mr. L. 0. Bengtson City Attorney P. 0. Box 903 Salina, KS 67401 Dear Mr. Bengtson: CITY CLERK'S OFFICE 0. L. HARRISON, CNC M. E. ABBOTT In connection with an examination of the financial statements of the City of Salina at December 31, 1981, and for the year then ended, we have prepared and furnished to our auditors, Kennedy and Coe, Certified Public Accounts, P.O. Box 1179, Salina, KS 67401, a description and evaluation of certain contingencies, including those set forth below involving matters with respect to which you have been engaged and to which you have devoted substantive attention on behalf of the City in the form of legal consultation or representation. These contingencies are regarded by the City as material for this purpose. Your response should include matters that existed at December 31, 1981 and during the period from that date to the date of your response. Pendin or Threatened Litigation excluding unasserted claims None. Please furnish to our auditors such explanation, if any, that you consider necessary to supplement the foregoing information, including an explanation of those matters as to which your views may differ from those stated and an identification of the ommission of any pending or threatened litigation, claims, and assessments or a statement that the list of such matters is complete. Unasserted Claims and Assessments considered to be probable of assertion, and that, if asserted, would have at least a reasonable possibility of an unfavorable outcome) None. Please furnish to our auditors such explanation, if any, that you consider necessary to supplement the foregoing information, including an explanation of those matters as to which your views may differ from those stated. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES L. 0. Bengtson June 9, 1982 Page 2 We understand that whenever, in the course of performing legal services for us with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure, if you have formed a professional conclusion that we should disclose or consider disclosure concerning such possible claim or assessment, as a matter of professional responsibility to us, you will so advise us and will consult with us concerning the question of such disclosure and the applicable requirements of State of Financial Accounting Standards No. 5. Please specifically confirm to our auditors that our understanding is correct. Please specifically identify the nature of and reasons for any limitation on your response. Very truly yours, D. L. Harrison City Clerk DLH/js CC: Kennedy and Coe, P. 0. Box 1179, Salina, Kansas 67401 CITY OF SALINA AREA CODE 913 827.9883 CITY • COUNTY BUILDING 300 WEST ASH P. O. BOK 708 SALINA, KANSAS 87001 June 17, 1982 ZP c District Director Equal Employment Opportunity Commission 1150 Grand Avenue, lst Floor Kansas City, Missouri 64106 Dear District Director: CITY CLERK'S OFFICE O. L. HARRISON, CMC M. E. ABBOTT Our auditors, Kennedy and Coe, Certified Public Accountants, P.O. Box 1179, Salina, Kansas 67401, are conducting an audit pursuant to the requirements of the Revenue Sharing Act, as amended. This requires that they determine if there are any current complaints filed with or investigations in process with EEOC, and the nature and status of such complaints or investigations. Pursuant to the Memorandum of Agreement signed between the Office of Revenue Sharing and the Equal Employment Opportunity Commission, please furnish the necessary information with respect to this government as of December 31, 1981. It is not necessary to include the name of the charging party, but the nature and status of each complaint should be explained. A self-addressed, stamped envelope is enclosed for your convenience in replying. Thank you for your cooperation. Very truly yours, N` D. L. Harrison City Clerk DLH/np MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL AG �J 1� AREA CODE 013 03T400.13 CITY • COUNTY BUILDING 300 WEST ASN P. O. BOX TM SAUNA. IUNSAS 47M1 June 17, 1982 District Director Equal Employment Opportunity Commission 1150 Grand Avenue, 1st Floor Kansas City, Missouri 64106 Dear District Director: CITY CLERK'S OFFICE D. L HARRISON, CMC M. E ABBOTT Our auditors, Kennedy and Coe, Certified Public Accountants, P.O. Box 1179, Salina, Kansas 67401, are conducting an audit pursuant to the requirements of the Revenue Sharing Act, as amended. This requires that they determine if there are any current complaints filed with or investigations in process with EEOC, and the nature and status of such complaints or investigations. Pursuant to the Memorandum of Agreement signed between the Office of Revenue Sharing and the Equal Employment Opportunity Commission, please furnish the necessary information with respect to this government as of December 31, 1981.. It is not necessary to include the name of the charging party, but the nature and status of each complaint should be explained. A self-addressed, stamped envelope is enclosed for your convenience in replying. Thank you for your cooperation. Very ///'''''''���� truly yours, V:6lA'V �� ln ALA D. L. Harrison City Clerk DLH/np "4'0 a MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES CITY OF SALINA L. O. BENGTSON, CITY ATTORNEY 114 EAST IRON P O BOX 903 SALINA. KANSAS 67401 AREA CODE 913 8232244 June 16, 1982 Kennedy and Coe Certified Public Accountants P.O. Box 1179 Salina, Kansas 67401 Gentlemen: coP Re: Financial Audit of The City of Salina December 31, 1981 I received a letter from Mr. D. L. Harrison, City Clerk, in regards.to your examination of the Financial Statement of the City of Salina, Kansas, as of December 31, 1981, in which Mr. Harrison states that he has advised you that he knew of no "Pending or Threatened Litigation" or any "Unasserted Claims and Assessments" against the City of Salina that existed as of December 31, 1981. Please be advised that as City Attorney of the City of Salina, Kansas, I concur in his report. I have no knowledge of any "Pend- ing or Threatened Litigation" or of any i1Unasserted Claims and Assessments" against the City as of December 31, 1981, or any which have occurred since said date. This will also confirm that if in the course of perfonning legal services for the City of Salina, Kansas, that I become aware of any unasserted claims or assessments that I will consult with the City officials concerning possible claims or assessments in accordance with the applicable requirements of the State Financial Accounting Standard No. 5. very truly yours, L. 0. Bengtson City Attorney MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES C I T y® F S A L I N A juka l ?nit t g�c �5 `�• MR AREA CODE 913 $219693 CITY . COUNTY BUILDING 300 WEST ASH P. 0. BOX TM SALINA, XANSAS B],Ol March 5, 1982 Kennedy and Coe United Building P. 0. Box 1179 Salina, KS 67401 Re: Community Development Block Grant Funds Audit Gentlemen: CITY CLERK'S OFFICE D. L HARRISON, CMC M. E. ABBOTT We have been advised by the U. S. Department of Housing and Urban Development that as a mutual convenience to the City of Salina and to the Department of Housing and Urban Development that they will prepare the 1981 and a final audit on the Community Development Block Grant Funds. In view of this, we would like to delete the Community Development Block Grant Fund audit from your proposal of September 30, 1981. If the above is acceptable with you, please sign a copy of this letter and return to us. Very truly yours, City of Salina, Kansas i D. L. Harrison, City Clerk The undersigned hereby consents to the removal of the Community Development Block Grant Funds audit from the proposal dated September 30, 1981. Kennedy and Coe B cc: Diana C. Swob, Financial Analyst CCCC Community Planning and Development U.S. Department of Housing and Urban Development 1103 Grand Avenue Kansas City, Missouri Keith Rawlings, Director of Planning and Community Development 300 West Ash Street Salina, Kansas 67401 MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES SALINA CITY ,CANNING COMMISSION SALINA WARD OF ZONING APPEALS OEFARTMENT OF ADMINISTRATION AND PLANNING CITY - COUNTY BUILDING - ROOM 207 300 WEST ASN STREET P. O. BOX 7" SALINA. KANSAS 67A01 January 6, 1981 Mr. E. J. Guerrant Kennedy & Coe United Building Salina, Kansas 67401 Re: 1980 CDBG Audit Dear E. J.: KEITH F. RAWLINGS DIRECTOR OF PLANNING AND COMMUNITY DEVELOPMENT TEL 913 8254183 This letter is written to apprise you of a situation and to make -a request. Our hold -harmless Community Development Block Grant (CDBG) program, as I'm sure you're well aware, has been winding down for some time now. In fact, we are now to the point that we have been checking practically monthly to determine the status of our CDBG Rehabilitation/Weatherization Program. We have exhausted our U.S. Treasury authorization for this program and have begun to withdraw funds from our loan account in order to pay for grants and to cover our operating expenses such as salaries and rent. We are awaiting word from HUD on whether or not we will be funded to continue our program. If we are approved, we will not receive any funds until at least June and if we are not funded we would like to close out the program in a timely manner. Therefore, my request is that you consider beginning the CDBG audit as soon as possible rather than waiting to do it with the remainder of the city. Please advise me if this is possible. Sincerely, Keith F. Rawlings Director of Planning and Community Development KFR:mlp cc: Don Harrison MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES • NATIONAL LEAGUE OF CITIES JOHN CARLIN Governor JAMES R.COBLER Director of Accounts and Reports STATE OF KANSAS z., DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS To the Governing Body: July 29, 1981 State Office Building Topeka, Kansas 66612 (913) 296-2311 City of Salina Salina Kansas The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124. Date of Audit Report: Municipality Audited: Date Received in This office: Audit Report Covering Financial Statements June 1, 1981 City of Salina July 29, 1981 Audit Period Year Ended: 12-31-80 Report by: Kennedy and Coe Salina Licensed Municipal Public Accountant in charge of audit: License No. Certified Public Accountant Eugene J. Guerrant in charge of audit: Permit No. 1616 Very truly yours, James R. Cobler, Director Division of Accounts and Reports Original to be attached to voucher and filed with Clerk of Municipality. Blue Copy for Accountant's File. AR -102 (7-29-76) HOME OFFICE: P.O. BOX 1179, SALINA, KS. 87401 OFFICES KANSAS: M. J. KENNEDY, CPA IRETRFD) ANTHONY SALINA BELLEVILLE SCOTT CITY COLEY SMITH CEM R CONCORDIA WICHITA Goo,LAN. NEBRASKA: GREAT BEND MCCOOK HUTCHIN80N OKLAHOMA: MARYBWLLE ALVA PIUTT COLORADO ST. JOHN FT. GOWNS The Honorable Mayor Dr. Merle Hodges and the City Commissioners City of Salina P.O. Box 746 Salina, Kansas 67401 We submit herewith our proposal for a compliance examination of the Community Development Block Grant Funds and General Revenue Sharing Funds received by the City of Salina, Kansas, as a primary recipient. Our examination will include the performance of those procedures necessary to meet the requirements of the Federal Audit Guides and Standards for the Community Development Block Grant Funds and the General Revenue Sharing Funds, under the following terms and conditions: 1. The issuance of a separate compliance report on Community Development Block Grant Funds and General Revenue Sharing Funds is required at least once out of every two years for the Community Development Block Grant Funds and once out of every three years for the General Revenue Sharing Funds. The next required compliance examinations would be for the years' 1981 and 1982 for the Community Development Block Grant Funds and General Revenue Sharing Funds respectively; however, annual exam- inations of both funds offer certain advantages. We are submitting our proposal for such reports in the event the City desires separate compli- ance reports for 1981. 2. We will make our records available for audit by authorized Government personnel or representatives in our office during normal business hours for a period of three years after issuance of our report on examination. 3. Our report on the Community Development Block Grant Funds will be completed within 150 days after December 31, 1981, as required by the applicable Federal Audit Guide. Our report on the General Rev- enue Sharing Funds will be issued no later than March 1, 1982, in accordance with the requirements of the Office of Revenue Sharing. MEMBERS OF: AMERICAN INSTITUTE OF CERRFIED PUBLIC ACCOUNTANTS SEC AND PRIVATE COMPANIES PRACTICE SECTIONS OF AICPA M. J. KENNEDY, CPA IRETRFD) E. T. RHEA CPA (RETIRED) KENNEDY A N D C O E L M. MEM, GPA IRETIREM W. H MONROE, GPA (RETIRED) CERTIFIED PUBLIC ACCOUNTANTS — N E. PA UNITED BUILDING, BOK 1179 Poos,CONN W. OS, CPA JOHN SALINA, KANSAS 67401 ROBERT D. WILSUR CPA ADLEY E JOHNSON, CPA 913 - 828-1881 DON P. DIEDERICK CPA PAUL A MOTTO GPA September 30, pIEI{ ALLEN W CPA GERALD A LD L L HUNUNCPA R MICHAEL BEATTY, CP.A JAMES R CRUCE, MPA KURDS G. SIEMENS, GPA The Honorable Mayor Dr. Merle Hodges and the City Commissioners City of Salina P.O. Box 746 Salina, Kansas 67401 We submit herewith our proposal for a compliance examination of the Community Development Block Grant Funds and General Revenue Sharing Funds received by the City of Salina, Kansas, as a primary recipient. Our examination will include the performance of those procedures necessary to meet the requirements of the Federal Audit Guides and Standards for the Community Development Block Grant Funds and the General Revenue Sharing Funds, under the following terms and conditions: 1. The issuance of a separate compliance report on Community Development Block Grant Funds and General Revenue Sharing Funds is required at least once out of every two years for the Community Development Block Grant Funds and once out of every three years for the General Revenue Sharing Funds. The next required compliance examinations would be for the years' 1981 and 1982 for the Community Development Block Grant Funds and General Revenue Sharing Funds respectively; however, annual exam- inations of both funds offer certain advantages. We are submitting our proposal for such reports in the event the City desires separate compli- ance reports for 1981. 2. We will make our records available for audit by authorized Government personnel or representatives in our office during normal business hours for a period of three years after issuance of our report on examination. 3. Our report on the Community Development Block Grant Funds will be completed within 150 days after December 31, 1981, as required by the applicable Federal Audit Guide. Our report on the General Rev- enue Sharing Funds will be issued no later than March 1, 1982, in accordance with the requirements of the Office of Revenue Sharing. MEMBERS OF: AMERICAN INSTITUTE OF CERRFIED PUBLIC ACCOUNTANTS SEC AND PRIVATE COMPANIES PRACTICE SECTIONS OF AICPA The Honorable Mayor Dr. Merle Hodges and the City Commissioners September 30, 1981 Page 2 4. Our fee for services rendered in connection with the compliance examination shall be based on our normal rate schedule for the persons engaged on the work; however, our fees for the examinations shall not exceed: General Revenue Sharing Funds $3,600 Community Development Block Grant Funds $1,400 In the event additional procedures are required to audit secondary recipients receiving $25,000 or more in General Revenue Sharing Funds, we will meet with the proper City officials and determine whether we will perform the required procedures or whether the City's personnel will be able to perform some or all of the proce- dures. If we are required to audit the General Revenue Sharing Funds of any secondary recipients, our fee will be at our regular rates for municipalities based upon the actual time required. We will be happy to discuss any aspect of this proposal with you at your convenience. If this meets with your approval, please sign in the spaces indicated below. The duplicate copy is for your file. Very truly yours, Certified Public Accountants Accepted this SG4 day of oge-,I' , 19 I'f for the examination of the x General Revenue Sharing Funds and the Community Block Grant Funds. I - City of Salina, Kansas ,HOME OFFICE: P.O. BOX 1179, SALINA, KS. 87401 OFFICES KANSAS: ANTHONY SAUNA BELLEVILLE SCOTT GIP' COLBY SMITH CENTER CONCORDIA WICHITA GooDLAND NEBRASKA: GREAT BEND MCCOOK HUTGHINBoN OKLAHOMA: MARYSVILLE ALVA PRATT COLORADO W. JOHN (T. COW" Mr. Don Harrison City Clerk City of Salina City - County Building Salina, Kansas 67401 Dear Mr. Harrison: KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING, BOX 1179 SALINA, KANSAS 67401 913 - 825-1381 November 4,, 1981 M. J. KENNEDY, CPA. IRETIREDI E. T. SHE/. GPA IRETIREM L M. MENTZ, 4PA IRETIREDI W. M MONROE, GPA. IRETIREM RALPH E. REITL, C.PA JOHN W. Pom LPA ROBERT D. WILBUR 0.PA ADLEY E JOHNSON, CYA DON P. DIEDEMCR C.P.A PAUL A MOTT, 0.PA ALLEN WEBBER ORA GEMLO L HUNTER C.PA R MICHAEL BEATTY, C.PA JAMES R CRUCE, 0.PA KURTIS G. MENEM% OPA The purpose of this letter is to inform you, at the direction of the Department of Administration, State of Kansas, regarding an oversight in our audit report for the year ended December 31, 1980 as follows: Footnote Number 5 on Page 48 of the audited financial statements contains a note relative to the Water and Sewerage Department, stating that, "Expen- ditures of that department for the year 1980 were not in violation of the Kansas Budget Law land referred to modifications contained in K.S.A. 10-1116 Please be advised that this reference relates to modifications in the cash basis law rather than the budget law. Therefore, it appears on Schedule 1 of the audit report on Page 49 that the Water and Sewerage Department ex- penditures were in excess of the amount budgeted and, therefore, in viola- tion of K.S.A. 70-2935. If you have any questions in connection to this communication, please call me. Very truly yours, CertifiedPubli Accountant PAM/llh MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SEC AND PRIVATE COMPANIES PRACTICE SECTIONS OF AICPA HOME OFFICE: P.O: BOX 1179, SALINA, KS. 67401 OFFICES KANSAS: M. J. KENNEDY, 4PA (RETIRED( ANTHONY SAUNA BELLEVILLE SCOTT CITY OOLBY SMITH CENTER CONCORDIA WICHITA GOODIAND NEBRASKA: GREAT BEND MCCOOK HOroHINsoN OKLAHOMA: MARYSVILLE ALVA PRATT COLORADO ST. JOHN IT. ODWNS The Honorable Mayor Dr. Merle Hodges and The City Commissioners City of Salina P.O. Box 746 Salina, Kansas 67401 We submit herewith our proposal for the audit of the City of Salina, Kansas, for the year 1981. We will perform the audit of the City of Salina, Kansas, and its related depart- ments in accordance with generally accepted auditing standards and the minimum standard audit program for municipalities of the State of Kansas, under the follow- ing terms and conditions: 1. The scope of our examination will not include the Public Library Board, the Public Health Board, the Firemen's Relief Association, the Salina Recreation Commission, and the Salina Airport Authority for the year 1981. 2. The audit shall be performed under the supervision of accountants qualified under regulations of the State Municipal Accounting Board. 3. In the event Kansas statutes and/or the State Municipal Accounting Board change the audit requirements for Kansas Municipalities or substantial additional audit procedures will be required, we will notify the City Commission promptly before continuing and request the right to renegotiate with the commissioners the maximum fee. 4. The audit will be performed in part after April 15, 1982, and it is anticipated the report can be issued by July 31, 1982. Certain interim audit procedures may be performed prior to the year ended December 31, 1981. 5. The audit contract shall include general services regarding advice or counsel pertaining to general fiscal, accounting, and procedural problems the City may request during the year. Additional services beyond the scope of the regular audit, including general applications thereto, will be billed at our regular hourly rates. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SEC AND PRIVATE COMPANIES PRACTICE SECTIONS OF AICPA M. J. KENNEDY, 4PA (RETIRED( E. T. SHEA. GPA IRETREDI KENNEDY A N D C O E L M. MER , GPA (RETIRED( W. K MONRDE, GPA (RETIRED CERTIFIED PUBLIC ACCOUNTANTS — UNITED BUILDING, BOX 1179 RALPH E. REirz, c.PA JOHN W. PODS, CPA SALINA, KANSAS 67401 ROBERT D. WILEUR GPA AOLEY E JOHNSON, CPA 913 - 825-1881 DON P. DIE"MCH, C.P.A. PAUL A MOTT, GPA 30 1981 WEBBEIS GPA ALLESeptember p ) GEM ID L HUNTER GPA R MICHAEL SEATTY, GP.A JAMES R CRULE, GPA KUR IS G. SIEMENS, GPA The Honorable Mayor Dr. Merle Hodges and The City Commissioners City of Salina P.O. Box 746 Salina, Kansas 67401 We submit herewith our proposal for the audit of the City of Salina, Kansas, for the year 1981. We will perform the audit of the City of Salina, Kansas, and its related depart- ments in accordance with generally accepted auditing standards and the minimum standard audit program for municipalities of the State of Kansas, under the follow- ing terms and conditions: 1. The scope of our examination will not include the Public Library Board, the Public Health Board, the Firemen's Relief Association, the Salina Recreation Commission, and the Salina Airport Authority for the year 1981. 2. The audit shall be performed under the supervision of accountants qualified under regulations of the State Municipal Accounting Board. 3. In the event Kansas statutes and/or the State Municipal Accounting Board change the audit requirements for Kansas Municipalities or substantial additional audit procedures will be required, we will notify the City Commission promptly before continuing and request the right to renegotiate with the commissioners the maximum fee. 4. The audit will be performed in part after April 15, 1982, and it is anticipated the report can be issued by July 31, 1982. Certain interim audit procedures may be performed prior to the year ended December 31, 1981. 5. The audit contract shall include general services regarding advice or counsel pertaining to general fiscal, accounting, and procedural problems the City may request during the year. Additional services beyond the scope of the regular audit, including general applications thereto, will be billed at our regular hourly rates. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SEC AND PRIVATE COMPANIES PRACTICE SECTIONS OF AICPA The Honorable Mayor Dr. Merle Hodges and The City Commissioners September 30, 1981 Page 2 6. Our fee for services rendered in connection with the examination, including the separate operations of the Salina Bicentennial Center shall be computed according to our regular rates for municipalities; however, our fees for examination shall not exceed the following: City of Salina $11,000 Salina Bicentennial Center $ 5,250 We will be happy to discuss any aspect of this proposal with you at your convenience. If this meets with your approval, please sign in the spaces indicated below. The duplicate copy is for your file. Very truly yours, &'Certified blic Accountants Accepted this Ste- day of IV -r.4" , 19011 STATE OF KANSAS r., DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor JAMES R. COBLER Director of Accounts and Reports To the Governing Body Salina City Hall Salina, Kansas 67401 Mayor and Commissioners: Office Building �a_ Kansas 66612-1574 AUG 26 1981 RECEIVE AUG 27 1981 CITY MANAGER'S OFFICE We have reviewed the financial report of the City of Salina, Kansas for the year ended December 31, 1980, and submit the following comments. The report indicates customer utility deposits were taken into the general operating fund of the utility without publication as required by R.S.A. 12-822. This statute specifies that deposits unclaimed for three years may be trans- ferred into the operating fund only after publication of notice in a paper of general publication for two consecutive weeks, and such publication must be By sixty days prior to the actual transfer of the deposits. Records of the City are maintained on the cash -basis, in violation of R.S.A. 75-1120a. Under H.B. 2041 (L. 1981), municipalities may opt under certain 2 conditions to use cash -basis accounting for years ending after June 30, 1981. However, we urge larger municipalities to consider carefully whether to use this option. We believe records based on generally accepted accounting principles are valuable to all cities, and will be even more so to first-class cities such as yours in the future. The report indicates the Tourism and Convention fund was not budgeted. This )04 61 fund is not specifically exempt from K.S.A. 79-2925 et seq., and is thus subject �1 to budget requirements. If you have not already begun budgeting this fund, r 1 please make arrangements to do so in your 1982 budget. I� We believe you desire this type of information to assist you in administering your official duties in accordance with applicable statutes. Very truly yours, James R. Cobler, Director Division of Accounts and Reports ILI William L. Ervin, Chief Municipal Accounting Section JRC:WLE:SBL:pO cc: Eugene J. Guerrant, Jr., CPA STATE OF KANSAS 0 DEPARTMENT OF ADMINISTRATION DIVISION OF ACCOUNTS AND REPORTS JOHN CARLIN Governor JAMES R. COBLER AUG 2 6 1981 Director of Accounts and Reports To the Governing Body Salina City Hall Salina, Kansas 67401 Mayor and Commissioners: RECEIVE AUG 2 7 1981 Office Building .a, Kansas 66612-1574 @BK311 .i` CITY MANAGER'S OFFICE We have reviewed the financial report of the City of Salina, Kansas for the year ended December 31, 1980, and submit the following comments. The report indicates customer utility deposits were taken into the general operating fund of the utility without publication as required by R.S.A. 12-822. This statute specifies that deposits unclaimed for three years may be trans- ferred into the operating fund only after publication of notice in a paper of general publication for two consecutive weeks, and such publication must be sixty days prior to the actual transfer of the deposits. Records of the City are maintained on the cash -basis, in violation of R.S.A. 75-1120a. Under H.B. 2041 (L. 1981), municipalities may opt under certain conditions to use cash -basis accounting for years ending after June 30, 1981. However, we urge larger municipalities to consider carefully whether to use this option. We believe records based on generally accepted accounting principles are valuable to all cities, and will be even more so to first-class cities such as yours in the future. The report indicates the Tourism and Convention fund was not budgeted. This fund is not specifically exempt from R.S.A. 79-2925 et seq., and is thus subject to budget requirements. If you have not already begun budgeting this fund, please make arrangements to do so in your 1982 budget. We believe you desire this type of information to assist you in administering your official duties in accordance with applicable statutes. Very truly yours, James R. Cobler, Director Division of Accounts and Reports William L. Ervin, Chief Municipal Accounting Section JRC:WLE:SBL:po cc: Eugene J. Guerrant, Jr., CPA r ' :'-: � A;.. '' i. •; u I I A'�jl'� 91 z .t �1a ' I uil' r��� SALINA CITIZENS' ADVISORY COMMITTEE DEPARTMENT OF COMMUNITY DEVELOPMENT February 26, 1981 Kennedy and Coe Certified Public Accountants P.O. Box 1179 Salina, Kansas 67401 Gentlemen: CITY - COUNTY BUILDING - ROOM 108 300 WEST ASH STREET P. O. BOX 746 . SALINA, KANSAS 67401 TELEPHONE 913 825-7261 In connection with your examination of the Community Development Block Grant Funds of the City of Salina, Kansas for the period ended December 31, 1980, we confirm, to the best of our knowledge and belief, the following represent- ations made to you during your examinations: 1. We are responsible for the presentation of the disposition and status of the Community Development funds at December 31, 1980, in conformity with generally accepted accounting principles and the requirements of HUD. 2. We have made available to you all financial records and related data. 3. There have been no irregularities involving City employees who have significant roles in the system of internal control that could have a material effect on either the presentation of the CD funds or compliance with applicable HUD regulations. 4. There have been no communications from regulatory agencies concerning non-compliance with, or deficiencies in, HUD reporting practices that could have a material effect on the disposition and status of the CD funds. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES C Kennedy and Coe Certified Public Accountants P.O. Box 1179 Salina, Kansas 67401 February 26, 1981 Page Two 5. We have complied with all applicable regulations in the administration of funds received under the CDBG program. Sincerely, CITY OF SALINA Don Harrison City Clerk/Director of Finance /tz 'j _ Keith F. Rawlings Director of Planning/Co unity Development Jacy Gebhart Housing Conservation Specialist DH:KFR:JG:mlp KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS 525 FIRST NATIONAL BANK BUILDING WICHITA. KANSAS 67202 316 - 263-6202 216 WEST SEVENTH. P. O. BOX 625 CONCORDIA. KANSAS 66901 913 - 243.1616 109 SOUTH NINTH. P. O. BOX 33 MARYSVILLE. KANSAS 66508 913 - 562.5313 TEMPLE BUILDING. P. O. BOX 604 MCCOOK. NEBRASKA 69001 308 - 345-5717 City of Salina City Hall Building Salina, Kansas 67401 UNITED BUILDING, P. O. BOX 1179 SALINA. KANSAS 67401 913 - 826.1861 July 21, 1981 Professional services through June 30, 1981, including preparation of report on examination for the year ended December 31, 1980, including special services regarding internal controls and procedures of the Salina Bicentennial Center City of Salina per contract Salina Bicentennial Center, per contract 1910 16TH STREET, P. O. BOX 929 GREAT BEND. KANSAS 67530 316 - 792.5275 1002 BROADWAY. P. O. BOX 187 GOODLAND, KANSAS 67736 913 - 899.3676 1650 WEST FOURTH, P. O. BOX 426 COLBY. KANSAS 67701 913 - 462-3919 605 SOUTH MAIN, P. O. BOX 631 SCOTT CITY. KANSAS 67871 316 - 872-8319 $10,750.00 5,250.00 CITY OF SAUNA L. O. BENGTSON, CITY ATTORNEY 114 EAST IRON R O. BOX 903 AREA CODE 913 8232244 Kennedy & Coe United Building Salina, Kansas 67401 Gentlemen: June 25, 1981 DANIEL L. HEBERT, ASSISTANT CITY ATTORNEY AREA "RIECE /ED WAIN 2 6 1981 0: CITY MANAGER'S OFFICE Re: City of Salina, Kansas In regards to your financial audit of the City of Salina, Kansas, for the year ending December 31, 1980, I wish to submit the following information: Please be advised that as of December 31, 1980, the City of Salina, Kansas, was the defendant in a law suit in the District Court of Saline County, Kansas, entitled Arthur F. Crocker, plaintiff, vs City of Salina, et. al., defendants, the same being Case No. 80 CV -1234. On June 12, 1981, the District Court of Saline County, Kansas, entered an order dismissing the City of Salina, Kansas, and its two police officers who were also named as defendants, from the above entitled action.. Unless an appeal is taken within thirty days from the above mentioned date the City will have no further liability in regards to this action. On January 15, 1981, the City of Salina, Kansas, received notice from the Kansas Department of Revenue of an assessment of additional use taxes in the amount of $31,805. This use tax assessment was filed as a result of an audit made by the Kansas Department of Revenue of purchases made at the Salina Bicentennial Center. It is the contention of the City of Salina, Kansas, that the City is entitled to an exemption from sales tax for these purchases and the City of Salina, Kansas, has timely filed an appeal from said Notice of Assessment of Additional Use Tax with the Director of Taxation. Since filing said appeal several in- formal conferences have been held with the Department of Revenue and at the present.time another informal conference is scheduled for.July 9, 1981. I know of no other pending or threatened litigation, claims or am- tingent liabilities, in which the City of Salina, Kansas, is involved or about which its officers have consulted with me. If you need any further information, please advise. very truly --yyoours, L��engtso City Attorney MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES AREA CODE 613 86T•W63 CRY - COUNTY BUILDING 366 WEST ASN P. O. Box 7,16 SALINA. KANSAS 67,101 June 4, 1981 Kennedy and Coe Certified Public Accountants P. 0. Box 1179 Salina, Kansas 67401 Gentlemen: CITY CLERK's OFFICE D. L HARRISON. CMC M. E ABBOTT In connection with your examination of the various funds and account groups of the City of Salina for the year ended December 31, 1980, for the purpose of expressing an opinion as to whether the financial statements present fairly the financial position on the various funds and account groups at December 31, 1980; and the results of operations and changes in financial position of the Water and Sewerage Department for the year then ended in conformity with generally accepted accounting principles, we confirm to the best of our knowledge and belief, the following recommendations made to you during your examination: 1. We understand that we are responsible for the fair presentation in the financial statements of the financial position, results of operations, and changes in financial position, in conformity with generally accepted accounting principles. 2. We have made available to you all financial records and related data, including all minutes of the City Commissioners. 3. We are not aware of any irregularities involving management or employees that could have an effect on either your evaluation of internal control or the financial statements. 4. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. 5. We have complied, to the best of our knowledge, with all aspects of regulations, contractual agreements, and bond ordinances, that would have a material effect on the financial statements in the event of noncompliance. MEMBER ... KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Kennedy and Coe June 4, 1981 Page 2 6. We have complied, to the best of our knowledge, with all applicable Kansas Statutes which in the event of noncompliance might require disclosure in the financial statements in accordance with require- ments of the State Municipal Accounting Board. 7. No events have occurred subsequent to December 31, 1980, which, had they been known at that date, would have required adjust- ment to, or disclosure in, the financial statements. D. L. Harrison, City Clerk &P. J1r M. E. Abbott, City Treasurer M. KENNEDY. CP.A IRETIREOI 1 MEMBER. OF AMERICAN INSTITUTE OP CERTIFIED PUBLIC ACCOUNTANTS SALINA OFFICE RALPH E. RvI C.P.A. JOHN W. PODS. C.P.A. E. T. SHEA. C.P.A. LESTER M. MaM . L.P.A. ADLEY E. JOHNSON. C.P.A. DON P. DIEGERICH. C.P.A. PAUL A MOTT. CPA. S. E. CRISS. C.P.A ALLEN WEBBER. C.P.A. GERALD L HUNTER, CP.A. R. MICHAEL BEAM. C.P.A. WALTON F. CARLSON. C.P.A. JAMES R. CRUCE. CPA, CONCORDIA OFFICE C. E. ROBERTS. C.P.A. E. WAYNE HILTON. CP.A. Mr. D. L. Harrison, City Clerk City of Salina P. 0. Box 746 Salina, Kansas 67401 Dear Mr. Harrison: KENNEDY A N D C O E CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING SALINA, KANSAS 67401 SIS - Bzo-t.el December 6, 1976 WICHITA OFFICE RANDALL P. ANDERSON. C.P.A. GERALD V. MARMON. C.P.A. GAMY L MORE. C.P.A. WILLIAM W. SOWARD. C.P.A. GREAT BEND OFFICE WILLIAM. H. MONROE. C.P.A. GEORGE F DRAKE, C.P.A. BERT W. ERWIN. C.P.A. GOOOLANO OFFICE ROBERT D. WILBUR. C.P.A. COLBY OFFICE ROBE" L. ETEIMEL C.P.A. MANAGER Re: City of Salina Audit In reply to your request of November 26, 1976, we herewith submit the following proposals to the Mayor and Commissioners of the City of Salina, Kansas. We will perform the audit of the City of Salina, Kansas, and its related depart- ments excluding the Municipal Band Board, The Public Health Board, the Public Library Board, and the Firemen's Relief Association for the year 1976 in accord- ance with generally accepted auditing standards and the minimum standard audit program for municipalities of the State of Kansas under the following terms and conditions: 1. The audit shall be performed under the supervision of a Certified Public Accountant who is also a Licensed Municipal Public Accountant and he'shall have the assistance of such other personnel as is deemed necessary. 2. We will also perform an audit of the General Revenue Sharing Funds and the Community Development Block Grant Funds in accordance with the requirements of the Federal Audit Guide and Standards and will issue the required separate reports on,these funds. 3. In the event that laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, or if any irregularities are discovered and additional auditing proce- dures would be required, we will notify your office promptly before continuing our services and if additional time is required in regard thereto, we request the right to renegotiate with the Commissioners the maximum fee. Mr. D. L. Harrison December 6, 1976 Page 2. 4. The audit may be performed in part after April 15, 1977, and the report shall be rendered no later than July 31, 1977, unless by mutual agreement the time for submitting such report is extended. It is agreed, however, that certain audit procedures may be per- formed prior.to the year ending December 31, 1976, including the counting of cash on December 31, 1976. 5. The fee shall include any general services regarding advice or counsel pertaining to general fiscal and accounting problems and procedures of the City that may be requested during the year, but if any services are rendered beyond the scope of the regular audit and general applications thereto, we herewith agree to perform these services upon proper authorization of the Mayor and Commissioners at a mutually agreeable hourly rate. 6. Our fees for services rendered in connection with the examination shall be computed according to our regular rates for municipalities; however, our fees for the examination, including the special reports outline in item 2 shall not exceed $8,200.00. We will be happy to discuss any aspects of this proposal with you or the Commis- sioners at your convenience. If this meets with your approval, please sign in the spaces indicated below. Very truly yours, SSC ,6j— Certified blic Accountants PAM.mh Accepted this 13thDecemberof December 1976. Mayor - City of Sa ina, Ransas L��cti w>Gr City Clerk - City of Salina, Kansas November 26, 1976 1976 AUDIT The City of Salina will accept proposals for the 1976 Audit up to 2:00 P.M., Monday, December 6, 1976. This audit shall include the audit of all accounts and records of the City of Salina, including all funds and utilities of the City for the calendar year of 1976. All work to be performed in accordance with the Minimum Standard Audit Program approved by the State Municipal Accounting Board and generally accepted audit standards. The audit for General Revenue Sharing and Community Development Block Grant Funds shall be performed as required by Federal Audit Guide and Standards. The audit shall be performed under the supervision of a Certified Public Accountant who is also a licensed Municipal Public Accountant. The audit report for the calendar year 1976 shall be rendered no later than July 31, 1977. Your proposal shall be in writing, addressed to the City Clerk, City of Salina, P. 0. Box 746, Salina, Kansas. D. L. Harrison City Clerk WOODS & DURHA"" 605 W. NORTH STREET - P.O. BOX 1324 TELEPHONE - AREA 913 - 825-5694 SALINA, KANSAS 67401 December 6, 1976 City Clerk City of Salina P. 0. Box 746 Salina, Kansas 67401 In accordance with your written request for proposals for the 1976 Audit, we sub- mit the following proposal: We propose to audit all the accounts and records of the City of Salina, including all funds and utilities of the City for the calendar year 1976. Our examination would be made in accordance with generally accepted auditing stand- ards and the Minimum Standard Audit Program approved by the State Municipal Ac- counting Board, and regulations issued by said board, and accordingly would include such tests of the accounting records and such other auditing procedures as we con- sider necessary in the circumstances to express an opinion on the financial state- ments. The audit would be performed under the supervision of a Certified Public Account- ant who is also a Licensed Municipal Public Accountant. The audit report would be delivered no later than July 31, 1977. In addition to the above audit we would audit the General Revenue Sharing Accounts and Community Development Block Grant Funds in accordance with requirements set forth by Federal Audit Guide and Standards. For the above services we propose the following fees: Audit of all accounts and records of City of Salina, including all funds and utilities of the City for the calendar year 1976 $ 7,400.00 General Revenue Sharing 900.00 Community Development Block Grant Funds 1,500.00 TOTAL $ 9,800.00 If you decide to engage us for the above services, please advise and we will pre- pare a contract for your signature. City Clerk City of Salina December 6, 1976 Page Two Thank you for allowing us the opportunity to submit this proposal. Sincerely yours, WOODS& �DU�RHAMLGe�k�%l/ W. Rex Woods WRW:jr t A. H. LECKBAND. C.P.A. EUGENE O. HARRISON. C.P.A. D. L. Harrison, City Clerk City of Salina P. 0. Box 746 Salina, Kansas 67401 Dear Mr. Harrison: A. H. LECKBAND & CO. Certified Public Accountants ACCOUNTING BUILDING 719 EAST CRAWFORD SALINA. KANSAS 87901 December 6, 1976 M[MRER6 AMERICAN INETITUTII OF CERTIFIED PUILIC ACCWNTAKNI AREA CODE EIS E27-7299 At your request, we submit the following proposal in connection with the annual audit for the City of Salina for the year ending December 31, 1976. 1. We will make an examination of the accounts and records of the City of Salina, including all funds and utilities of the City for the calendar year 1976. Our examination will be performed in accordance with generally accepted auditing standards and the Minimum Standard Audit Program approved by the State Municipal Accounting Board March 28, 1969. Our fee for the examination will be $8,000.00. 2. We will make an examination of the records for the General Revenue Sharing and Community Development Block Grant Funds in accordance with the Audit Guide and Standards for Revenue Sharing Recipients. Our fee for this examination will be based on the time required to perform the examination at an average hourly rate of $15.00. The audit reports will be rendered no latef than J&ly 31, 1977. Very truly yours, CertVied Public AccounPght November 26, 1976 1976 AUDIT - The City of Salina will accept proposals for the 1976 Audit up to 2:00 P.M., Monday, December 6, 1976.. This audit shall include the audit of all accounts and records of the City of Salina, including all funds and utilities of the City for the calendar year of 1976. All work to be performed in accordance with the Minimum,Standard Audit Program approved by the State Municipal Accounting Board and generally. accepted audit standards. The audit for General Revenue Sharing and Community Development Block Grant Funds shall be performed as required by Federal Audit Guide and Standards. The audit shall be performed under the supervision of a Certified Public Accountant who is also a licensed Municipal Public Accountant. The audit report for the calendar year 1976.shall be rendered no later than July 31, 1977. Your proposal shall be in writing, addressed to the - - City Clerk, City of Salina, P. O. Box 746, Salina, Kansas. D. L. Harrison City Clerk THE COMMISSIONERS considered a contract with Woods and Durham for e audit for the year ending December 31, 1975. Commissioner Duckers suggested the Commission consider the possibility of re=eiving bids from several auditing firms in Salina, for the city audit, in kee_ing with the policy as far as the Engineering bids and equipment. "I can't see why we can't at least have the City Manager interview and receive some sort c` am estimated cost from the auditors rather than do it the way it is being done, wt _e it is has been given to one firm for four, five, or six years in a row. I '''k we should consider this each year on its, own, a bid from the accounting firms." Commissioner Weisgerber said, "Auditing firms will not bid, as such, tc.e: are not like a regular contractor. They will make a proposal, but they =_x==c:t you to either accept or reject their proposal, and if you rejectit vs on to someone else. Architect fees, auditing fees, and some engineering «e=, and this sort of thing are not to be bid from a professional point of Vice.:." - - Commissioner Duckers said, "Perhaps the term bid is not what I should be _sing, but I feel that we could receive a proposal from them similar to the one :e have received and have before us. I think that all eligible firms, or all --=credited firms, whatever the criteria is that we use in determining xhe .er they can do the audit for Salina should be asked to make a proposal t., =:_e city each year and then we can accept or reject the one that we.wish.' Mr. Olson commented, "I was merely going to.comment to this end and _.._= is, auditors in the past have told us that they would prefer a commitment mould extend beyond the one or two years. Now the City Commission, a number of —tars ago, 10 or 11 years ago, went with the idea of making an award to the a_i:g firm for a five year period. That is, not award the contract to a firm ive years, but, as long as the proposals were considered to be within _ees„n to give that firm five consecutive years of business, in that the first e = , and we can understand why, they do notstand to make probably any profit z_, =first year. The second year there is possibly some profit in the activity, a. -j: tereafter there should be a reasonable profit, or at least an acceptable =-.-=I of profit for the firm. I would hesitate to see us go on an annual _esn'_fling of the auditing firms, Keith, in that this could then require an ex–enditure larger than is really necessary. As to your point of bidding, 1—ink auditors in the past have said this is a violation of ethics. I am owever, and I do not know precisely what communities are following this today, I am told there are some communities who do receive proposals,_ aa�_ the auditing firms in those towns do submit proposals.",, Commissioner Duckers said, "But if an auditing firm wanted to propose, if they were given some assurance over a given period of years, two or three _e s, they would do it for a certain amount, that would be a factor to be =_4ered; but just because they got it five years ago and say we are going to cs for five in a row doesn't seem to me to make sense particularly in view a.�n of our policy that one Commission cannot bind another, and if this ..==_cion were reached five years ago there weren't too many around. I guess r" us were here then." Commissioner Usher commented, "Kennedy and Coe had it for five years = r.w, this Will make the fifth year for Woods and Durham, perhaps with the _c. n mind,. and they are under. the gun right now. .I don't think you could get a __c:;csal if you had to between now and the end of the year, circulate a_letter t' _ .e_ accounting, firms and tell them this is the time we are going to review new firms and what are your fees for next year." Commissioner Weisgerber said, "I think we should probably go with the .a_- ve have it and then next year would be a normal time to make the.change anyway." Mr. Olson explained,. "We have to this year go real fast because cash has =o be counted for at the close of business December 31st." Commissioner Duckers asked, "You don't feel that there would be time fc: _ of the other accounting firms in town, other than the one who has submitted F- __::o -sal, to make a proposal before the end.of the year?" Mr. Harrison commented, "In the past, the firm which had the audit con _ act has worked on this during the month of December, of course they have to the cash on hand the last day of the year.... Commissioner Duckers said, "We are going to have another meeting before of the year." Commissioner Usher said, "I don't .think the fee is.out of line." Commissioner Duckers said, "No, I am not questioning that, I am just c_�s_iazing the procedure. I think their fee is completely within reason, re.=r_ng,what has happened over the past ten years." A motion was made by Commissioner Usher, seconded by Commissioner Tire=s_e-ber to grant the audit for 1975 to Woods and Durham and instruct the s=:.== =o secure the proposals for 1976. Ayes: (5).. Nays: (0). Motion carried. STATE OF KANSAS AUDITOR OF STATE STATEHOUSE TOPEKA, KANSAS 66612 July 16, 1971 To THE GOVERNING BODY: City of Salina Salina ,KANsAs I, Clay E. Hedrick, Auditor of State, certify that the following described audit report has been filed in my office as required by K. S. A. 75-1124: Date of Audit Report: Municipality Audited: Date Received in This Office: Audit Report Covering Records and accounts of the City of Salina. Report Rendered by: Report Signed by: Licensed Municipal Public Accountant in charge of audit: June 30, 1971 City of Salina July 16, 1971 Audit Period Year Ended 12-31-70 Kennedy and Coe Salina E. Wayne Hilton E. Wayne Hilton License No. 163 '�V� celt Auditor of State. By— k,4–'�u Assistant uditor o/ Stale Original to be attached to voucher and filed with Clerk of Municipality. . Blue Copy for Accountant's File. 89-1{9] t9`9 -8N 6ET8 t -�1 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS X UNITED BUILDING. P. O. BDK 1=4T November 12, 1971 SALINA. KANSAS 67401 SIS - SIIS-1301 620 PIROT NATIONAL BANK BVILOINO WICHITA. KANSAS 67200 SIB -383-6204 1000 WILUAMS. P. O. BO% 010 GREAT MEND. KANSAS 67600 316 - 706.6461 City of Salina City Hall Building Salina, Kansas 67401 Services, including examination of records for the period ended December 31, 1970, and preparation of report on examination 2IB WEOT aevENTYi, P. O. DOK BBa CONCORDIA. KANSAS 00001 013 - 343-ISI4 I.I. Al..MP. O. BOX IW OOODLAND. KANBAB 67738 Ola - 800-8544 160 WEST TNIRO. P. O. BOX 446 COLEY. KANSAS 67701 613 - 460-sae2 Licensed Municipal Accountant 414 1/2 hours @.$11.00 $4,559.50 Staff Personnel 403 1/2 hours @ 9.00 3,631.50 $8.191.00 2 J. KENNEDY. C.P.A. (RETIRE.) • vyC L. COE. C.P.A. (DECEASED IBOO) • A D. SANDERS. C.F. (CONSULTANT) _ �•' MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS RALPH E. REITZ. CP.A. JOHN W. PODS. C.P.A. E. T. BHEA. G.P.A. LESTER M. HERTZ. C.P.A. C. E. ROBERTS. C.P.A. WILLIAM H. MONROE, C.P.A. RANDALL P. ANDERSON. C.P.A. ROBERT B. WILBUR. C.P.A. Am" E. JOHNSON. C.P.A. F. H. MOUSEY. C.P.A. DON P. DIEOERICH. C.P.A. PAUL A MOTT. C.P.A. B. E. CRIBS. C. P.A GERALD V. HARMON. C.P.A. GEORGE F. DRAKE C.P.A. ALLEN WEBBER, C.P.A. GERALD L HUNTER, C.P.A. R. MICHAEL BEATTY. C.P.A. BERT W. ERWIN. C.P.A. The Honorable Robert D. City of Salina Salina, Kansas 67401 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING - SALINA. KANSAS 67401 B19 - 825 -;RW; August 2, 1971 Caldwell, Mayor Attention: Mr. Norris D. Olson Re: City of Salina Audit Dear Mr. Caldwell: OFFICES SALINA WICNTA GREAT BEND CONCOROIA OCOOLANO COLDY We herewith submit the following proposals to the Commissioners of the City of Salina, Kansas. We will perform the audit of the City of Salina, Kansas, and its related depart- ments excluding the Municipal Band Board, The Public Health Board, The Public Library Board, and the Firemen's Relief Association for the year 1971 in accordance with the minimum standard audit program for municipalities of the State of Kansas and the applicable statutes and ordinances under the following terms and conditions: 1. The audit shall be performed under the supervision of a Certified Public Accountant who is also a licensed Municipal Public Accountant and he shall have the assistance of such other personnel as it is deemed necessary. 2. In the event that laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipali- ties, or if any irregularities are discovered and additional auditing procedures would be required, we will notify your office promptly before continuing our services and if additional time is required in regard thereto, we request the right to renegotiate with the Commis- sioners the maximum fee. 3. The audit may be performed in part after April 15, 1972, but the report shall be rendered no later than July 15, 1972, unless by mutual agreement the time for submitting such report is extended. 4 Mr. Robert D. Caldwell, Page Two It is agreed, however, that certain audit procedures may be performed prior to the year ending of December 31, 1971, including the counting of cash on December 31, 1971. 4. The fee shall include any general services regarding advice or counsel pertaining to general fiscal and accounting problems and procedures of the City that may be requested during the year, but if any services are rendered beyond the scope of the regular audit and general applications thereto, we herewith agree to perform these services upon proper author- ization of the Mayor and Commissioners at a mutually agreeable hourly rate. 5. Our fees for services rendered in connection with the examination shall be computed according to the following schedule: Services Rendered By' Hourly Rate Certified Public Accountants or Licensed Municipal Public Accountants $12.00 Staff Personnel 10.00 our fees for the examination, computed on the above basis, shall not exceed $8,400.00. In compliance with the rules of professional conduct set forth by the Kansas State Board of Accountancy, this proposal is automatically voided and withdrawn if it is to be considered in competition with proposals of other accountants. If this meets with your approval, please sign in the spaces indicated below. Very truly yours, , Certified P is Accountant PAM/ct Accepted this day of , 1971. Mayor - City of Salina, Kansas Director of Finance - City of Salina, Kansa: M. J. KENNEDY. C.P.A. (RETIREDI C. L. COE. C.P.A. I.... ASE. I.S.) A. B. SANDERS. C.P.A. (CONSULTANT) MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS RALPH E. REIT., C.P.A. JOHN W. POC.. C.P.A. E. T. SNEA, C.P.A. LEBTER M. MERT.. C.P.A. C. E. ROBERTS, C.P.A. WILLIAM H. MONROE. C.P.A. RANDALL P. ANDERSON. C.P.A. ROBERT D. WILBUR. C.P.A. ADLEY E. JOHNSON. C.P.A. P. H. RODSEY. C.P.A. DON P. DIED. RICH, C. P.A PAUL A. MOTT, C.P.A. B. E. CRIES. C.P.A. GERALD V. MARMON. C.P.A. GEORGE F. DRAKE C.P.A. ALLEN WEBBER, C.P.A. GERALD L. HUNTER. C.P.A. R. MICHAEL BEATTY, C.P.A. BERT W. ERWIN. C.P.A. Mr. Norris D. Olson City Manager City of Salina Salina, Kansas 67401 Dear Mr. Olson: KENNEDY AND CCE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING SALINA, KANSAS 67401 819 • 823.1561 August 8, 1970 Re: City of Salina Audit OFPICEB SALINA WICHITA GREAT BEND CONCOR.1. OOOOLAND COLBY In reply to your request, we herewith submit the following proposals to the Mayor and Commissioners of the City of Salina, Kansas. We will .perform the audit of the City of Salina, Kansas, and its related depart- ments excluding the Municipal Band Board, The Public Health Board, The Public Library Board, and the Firemen's Relief Association for the year 1970 in accordance with the minimum standard audit program for municipalities of the State of Kansas and the applicable statutes and ordinances under the following terms and conditions: 1. The audit shall be performed under the supervision of a Certified Public Accountant who is also a licensed Municipal Public Accountant and he shall have the assistance of such other personnel as it is deemed necessary. 2. In the event that laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipali- ties, or if any irregularities are discovered and additional auditing procedures would be required, we will notify your office promptly before continuing our services and if additional time is required in regard thereto, we request the right to renegotiate with the.Commis- sioners the maximum fee. 3. The audit may be performed in part after April 15, 1971, but the report shall be rendered no later than July 15, 1971, unless by mutual agreement the time for submitting such report is extended. t s Mr. Norris D. Olson - Page 2 It is agreed, however, that certain audit procedures may be performed prior to the year ending of December 31, 1970, including the counting of cash on December 31, 1970. 4. The fee shall include any general services regarding advice or counsel pertaining to general fiscal and accounting problems and procedures of the City that may be requested during the year, but if any services are rendered beyond the scope of the regular audit and general applications thereto, we herewith agree to perform these services upon proper author- ization of the Mayor and Commissioners at a mutually agreeable hourly rate. 5. Our fees for services rendered in connection with the examination shall be computed according to the following schedule: Services Rendered By Hourly Rate Certified Public Accountants or Licensed Municipal Public Accountants $11.00 Staff Personnel 9.00 Our fees for the examination, computed on the above basis, shall not exceed $8,400.00. In compliance with the rules of professional conduct set forth by the Kansas State Board of Accountancy, this proposal is automatically voided and withdrawn if it is to be considered in competition with proposals of other accounts. If this meets with your approval, please sign in the spaces indicated below. Very truly yours, Certifie blic Accountants RER:vr Accepted this/ day of , 1970. t Mayor - City d4ofal4i.., Ka as Director of Finance - City of Salina, Kansas THE TO: L CITY Kennedy United Saliva, ®F 'SALIVA, PURCHASE ORDER & Coe Bldg. Kvvsas 67401 KANSAS � ORDER NO. CHECK NO. DATE PAID DATE 11-20-70 FUND CHARGE water CODE AMOUNT 291— QUANTITY DESCRIPTION UNIT PRICE AMOUNT 1470 Audit 1 1 3,600.00 THE TO: L CITY OF SALIVA, PURCHASE ORDER Kennedy 6 Coe Ualted iWilding Salina, a aasao 67401 KANSAS ORDER N0. 1608 CHECK NO. DATE PAID - AID-DATE_ll-9^-20 DATE 11-9(1170 FUND CHARGE E1,2 -p -p CODE AMOUNT 670 QUANTITY DESCRIPTION UNIT PRICE AMOUNT 1973 Audit D-P:6ARTMENT FILE COPY 4,800.©0 I NORRIS D. OLSON CITY MANAGER AREA CODE 913 823-2277 O 9.Fiheze/lrvzth mlE02 CITY -COUNTY BUILDING 300 WEST ASH STREET P.O. BOX 746 SALINA. KANSAS 67401 September 15, 1970 Mr. Ralph E. Reitz, C. P. A. Kennedy and Coe Certified Public Accountants United Building Salina, Kansas 67401 Dear Ralph: and west COMMISSIONERS ROBERT C. CALDWELL, MAYOR LEON L. ASHTON CARL R. RUNOQUIST DONALD D. MILLIKAN WILLIAM W. YOST The City Commissioners at the regular meeting yesterday approved your proposal for the 1970 City Audit in accordance with the letter dated August 8, 1970. A signed copy of same is enclosed. Sincerely, N. D. Olson City Manager NDO:mbk Enc.. 1 MEMBER _ KANSAS LEAGUE OF MUNICIPALITIES - NATIONAL LEAGUE OF CITIES Mr. Norris D. Oleos July 15, 1969 Page 2 It is agreed, however, that certain audit procedures may be performed prior to the year ending of December 91, 1969, including the counting of cash on December 919 1969. 4. The fee shall include any general services regarding advice or counsel pertaining to general fiscal and accounting problems and procedures of the City that may be requested during the year, but if any services are rendered beyond the scope of the regular audit and general applications thereto, we herewith agree to perform these services upon proper autho- rization of the Mayor and Commissioners at a mutually agreeable hourly rate. 8. Our fees for services rendered in connection with the examination shall be computed according to the following scheduiet Services 8endered.fiy Hourly Bate Certified Public Accountants or Licensed Municipal Public Accountants $10.00 Staff personnel 8.00, Our fees for the examination, computed on the above basis$ shall not exceed $80000.00. In compliance with the rules of professional conduct set forth by the Kansas State Board of Accountancy, this proposal Is dutomaticelly voided and withdrawn if it is to be considered in competition with proposals of other accountants. If this meets with your approval, please sign in the spaces indicated below. Very truly yours, PAMCia Certified lic Accountants Accepted this .fig' day of ' 1964. Magor • City Of Salina, Kansas Director of Finance - City of Salina: Kansas n011FD mn 1 1 rz7Z TV!� E CITY OF SALIVA, KANSAS PURCHASE ORDER DEPARTMENT FILE COPY Kennedy5 Coe —1 TO: United Bld ;. L Salina,Kansas Ship To CITY OF SALINA, KANSAS 67401 ATTENTION or % DEPARTMENT _..__...._.-�s CHECK NO. DATE PAID DATE 11-19-69 FUND CHARGE Citv Cleric CODE AMOUNT 291 QUANTITY DESCRIPTION UNIT PRICE AMOUNT 1969 Audit 3,200.00 • � � nanoa nIn 1 1.5 � � 'T 'E CITY OF SALINA, KANSAS PURCHASE ORDER DEPARTMENT FILE COPY CHECK. NO. DATE PAID r Kennedy 5 Coe DATE 11-19-69 FUND CHARGE 'tater TO: United B14. CODE AMOUNT L Saliaa, Kansas -670- Ship To CITY OF SALINA, KANSAS 67401 ATTENTION or %D DEPARTMENT QUANTITY DESCRIPTION UNIT PRICE - AMOUNT Jim 1969 Audit 4,800.00 I STATE OF KANSAS AUDITOR OF STATE STATE HOUSE TOPEKA. KANSAS 66612 July 16, 1969 To TIIE GovERNING BODY: City of Salina Salina KANSAS I, Clay E. Hedrick, Auditor of State, certify that the following described audit report has been filed in my office as required by K. S. A. 75-1124: Date of Audit Report: Municipality Audited: Date Received in This Office: Audit Report Covering Records and accounts of the City of Salina Report Rendered by: Report Signed by: Licensed Municipal Public Accountant in charge of audit: E. Warm Hilton June 13, 1969 City of Salina duly 16, 1969 Audit Period Year 1968 Kennedy and Coe Salina E. Wayne Hilton, CPA License No. 162 Auditor of State. By— Director of Post -Audits. ^� Original to be attached to voucher and filed with Clerk of Mu ' pality. Blue Copy for Accountant's File. 21241 1.65.2M SETS 1M.J.KENNEDY, C.P.A.(RETIREDD/D ))��\y,1 RALPH E. REITz. C.P.A. •✓ P KENNEDY AND COE JOHN W. PODS, C.P.A. E. T. SHEA.P.A. CERTIFIED PUBLIC ACCOUNTANTS LESTER M,,CMERT2, C.P.A. C.E. ROBE R TS, C.P.A. WILLIAM H. MONS O E, C.P.A. RAN DA LL P, ANDER SON, C.P.A. ROBERT D. W ILBUR,C.P.A. A O LE Y E. JOHNSON, C.P.A. P. H. R O USE Y, C.P.A, DON P. DIEDERICH, C.P.A. PAUL A. M OTT, C.P.A. 0. E. CR ISS, CP.A, GERALD V. HARMON, C.P.A. GEORGEF. DRAKE,C.P.A. ALLEN WE B BER, LP. A. GERALD L. H U N TE R, C.P.A. C. L. COE, C.P.A. (DECEASED 1960) City of Salina City Hall Building Salina, Kansas 67401 July 16, 1969 Examination of the records of the City of Salina, Salina, Kansas for the year 1968, including the records of the Water and Sewage Department and report on examination A. B.SANDEBS,C.P.A. (CONSULTANT) Z -UNITED BUILDING, P.O. BOX 1241 SALINA,KANSAS 67.01 _525 PINST NATIONAL BANK BUILDING WICHITA,KANSAS 67202 1209 WILLIAMS, P.O. BOX 929 GREAT BEND, KANSAS 67630 _215 WEST SEVENTH, P.O. BOX 522 CONCORDIA. KANSAS 65901 1016 MAIN. P.O. BOX 101 GOODLAND.KANSAS 57735 _ 165 W EST THIRD. P.O, BOX 216 D OLBY, KANSAS 67701 _106 WEST HALL. P.O. BOX 108 O BEBLIN,KANSAS 67749 $7,412.00 p _ �MEMBERB OF AMERICAN INSTITUTE OF CERTJFIEO PUBLIC ACCOUNTANTQ - KENNEbY AND COE` - M. J. KENNEDY C.P.4 WSTIREO) .OPPIGEB .. CE RYl C. t_ EOE. C.P.4(DECEABED,BEG) ., R'IED p,U6LIC ACCOU. N.TANTS _ A. B. SANDERS. C.P.A• ICONSULTA,NT) LNLTED BUILOINCi "LINA SO.LINA,"KANSAS 67401' WICHITA RALPH [. .ETR. C.P.A.. - ' • ...AT BEND - JOHN W. POO.. C.P.A. ' • _ .CONCORD,. E. T. 6MCA, C. P. A. .'t- OOOOLANO 'ESTER M. MWR ' C. P. A. 1 �y COLBY C. E. ROBERTS, C.P.A.I '�i., $j\,1168 .. 1 ..OBERLIN'. . WILLIAM H. NOMADS, C.P.4 Ir 1 - RANDALL P. ANDERSON, C.P.A. ROBERT O. WRBUR. C.P.A. ` .. ADLEV E. JOHNSON. C.P.A.- CON P. OIBOERICH. C.P.A.- PAUL A. MOTT. C.P.A. , B. El ORISS. <.P. A. .. GERALD N..HPPMON. C.P.A. - Kro Norris D, 0-1,e66 City Manager City of saline 6elinA, Iransa9 , BAi. city Sanaa Audit heap Mr. plsons , to reply toy= requsat, we herewt submit following propasala to the Esayer and Commissiquern of the City -of bat As. We will perform the audit the Ci of t44, Kaosae„ acid.#ts related depart - mats excludio$ the 4nsni pot :9atiq a,., public Health Boardi The public Library Hoard, and the y Men's xel#,e A#saciation for the year 1968 in mord- once with the zialsoM a dad Audit p graze for municipalities of, the state of Kansas and the applic4bie tatutes' ordiame.0 under the f0110wiag teams and i. 2h audit sha11 perfozmed under the'supaVvLsiw of a'Certifisd lia Acc0untan who is 4180 a licensed IftUaipol PWic Accountant be s4all hav .00 assistance of such other personnol'as it. is • deeia nacos Our fee will be computed Upon the basis of 98.00 Per person eng4ged in the work and we agree. that in ac event our too for. the regular audit will exceed ¢8+000.00.. 2E Zn the event that laws.are eoacted.or'the State minicipal Accounting Board mahen changes in the audit requirements 'for Rousts =1041041010e, or, if mW irregularities are discovered -no 44dWonot audit ag'pro. codui:e9_ would be required, we agde,rf to aotify your officer prootly before ceatboiag+attar services and if additional tuns is zequt and in regard tbavato, we request the tight.to renegotiate with the Coamissianere the wAximm foe stated Above'. THE CITY OF SALINA, KANSAS PURCHASE ORDER VENDOR'S COPY -MAIL WITH ORIGINAL F 8eaaedp & Coe TO: United Bldg. L Selina, Kansas- Ship To CITY OF SALINA, KANSAS 67401 ATTENTION or % QUANTITY DESCRIPTION 1968 Audit Contract 01 DEPARTMENT This check replaces voided check 10,278 dated 12/11/68. IBr- ORDER NO. 9497 CHECK NO. 13;466 DATE PAID 7-25-69 DATE 7-25-69 FUND CHARGE MY Clerk CODE AMOUNT 291 UNIT PRICE I AMOUNT 2,612.00 THE CITY OF SALINA, KANSAS SUFFICIENT FUNDS ARE AVAILABLE CITY CLERK APPROVED CITY MANAGER nRncR un r A R 7 THE CITY OF SALINA, KANSAS6. - -- PURCHASE ORDER CITY CLERK'S COPY -TO BE MAILED WITH CHECK CHECK NO. DATE PAID F Kennedy 8 Coo , DATE 11-18-68 FUND CHARGE City Clerk g��,. TO: United �H• CODE AMOUNT L Salina, Sanas 291 Ship To CITY OF SALINA, KANSAS 67401 ATTENTION or % DEPARTMENT QUANTITY DESCRIPTION UNIT PRICE AMOUNT 1968 Audit Comsat Bwn _ Sg�jQ_ 30200.00 0 nonPR Mn [;A A7 THE CITY OF SALIVA, KANSAS PURCHASE ORDER DEPARTMENT FILE COPY Kennedy 5 Coe l Y TO: United L'lda. L Salina, Kansas Ship To CITY OF SALINA, KANSAS 67401 ATTENTION or % DEPARTMENT - -- CHECK NO. DATE PAID _ DATE 11-18-68 FUND CHARGE City Clark CODE AMOUNT 291 QUANTITY DESCRIPTION UNIT PRICE AMOUNT 1968 Audit Contract 3.200.00 nenCD Aln ri A R R THE CITY OF SALINA, KANSAS PURCHASE ORDER DEPARTMENT FILE COPY . Kennedy & Corgi TO: United Bldg. L 3aliva, Kansas Ship To CITY OF SALINA, KANSAS 67401 ATTENTION or % DEPARTMENT - -- - CHECK NO. DATE PAID DATE 11-18-68 FUND CHARGE Water CODE AMOUNT 1225 QUANTITY DESCRIPTION UNIT PRICE AMOUNT 1968 Audit Coatraet Rni:_ SQS9 49800,00 r%Dr%rD A1r1 l THE CITY OF SALIVA, KANSAS PURCHASE ORDER .. DEPARTMENT FILE COPT CHECK NO. - DATE PAID l DATE Dec 25, is .7 FUND CHARGE Kennedy &COO City Clerk CODE AMOUNT TO: VnitQ�ia� $S�i[3d, Af.'.�363u L I 2ll Ship To CITY OF SALINA, KANSAS ATTENTION or % DEPARTMENT QUANTITY DESCRIPTION UNIT PRICE AMOUNT. 1967 Audit contract 82000.00 q,75 to by DF 5 36245,:)04 . nRDFR Wn :15900 THE CITY OF SALIVA, KANSAS 5 PURCHASE ORDER DEPARTMENT FILE COPY CHECK NO. DATE PAID F. DATE I'ac 15. Lf�67 FUND CHARGE T0: C ue United Bltl . - CODE AMOUNT i2?` ia. Hs. L sair Ship To CITY OF SALINA, KANSAS ATTENTION or % DEPARTMENT QUANTITY DESCRIPTION UNIT PRICE AMOUNT iSb'1 �ifadLt Cuxotract �YDD•`•'.L'D 3,245.GCaid C.t:. 4,755.00 CLAY HEDRICK AUDITOR OF STATE AND REGISTER OF STATE LANDS STATE OF KANSAS AUDITOR OF STATE EXECUTIVE DEPARTMENT TOPEKA. KANSAS 66612 July 24, 1968 Mayor and City Commissioners City of Salina Salina, Kansas 67401 Gentlemen: KARL KLIEWER DIRECTOR OF POST.AUOITS O. O. YANOELL DIRECTOR, MUNICIPAL AUDIT PROGRAM We have reviewed the audit report of the City of Salina for the year ended December 31, 1967 and submit the following item for your consideration: The audit report reflects expenditures in excess of budget appropriations in the Sanitation Fund, $5,238.62. Any indebtedness incurred in excess of the amount of the adopted budget of expenditures is void as against the city; K.S.A. 79-2935. The Supreme Court held (151 Kan. 458) such claims are unenforceable and cannot be paid from subsequent budgeted revenues. We believe you desire this type of information to assist you in administering your official duties in accordance with applicable statutes. GOY: mw cc: Auditor Yours very truly, G . YMI) LL Di7rector,•Municlpal Audit Program MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS M. J. KENNEDY. C.P.A. IRETIR{OI C. 4 COS. C.P.A. IOECEAEEO IEEOI .ALP. E. wEITE, C.P.A. JONN W. POO.. C.P.A. E. T. wWA. C.P.A. LOOTER M. MERTZ. C.P.A. C. E. wO.ERT.. C.P.A. WILLIAM M. MONROE. C.P.A. RANDALL P. ANDERSON. C.P.A. ROBERT D. wlL.UR. C.P.A. ADLEY E. JONNBON. C.P.A. DON P. OIEDORICN. C.P.A. PA VL A. MOT, C,P.A. a E. CRu.. C.P.A. City of Salina City Hall Building Salina, Kansas KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS August 16, 1967 Examination of the records of the City of Salina, Salina, Kansas for the year 1966, including the records of the Water and Sewage Department, and report on examination .".CEO x — _ DNITOD eUllalnD. P, o. Box aos EALINA. KPNEAe 67.04 ale wE.T aavaNrN. P. o. eol( eaa CONCORDIA. KANSAS 06.04 1001 WILLIAMe. P. O. eOx PPO OREAT eENO. KANSAS 67600 IDS WEK ALL. P. O. EOx 10P OEEELIN. NAN0AE OTT.. leo wZOT T.M.. P. O. Eox Ea. COLOY. KAN.AE 67701 �. 1.16 MAIN. F. O. 00x SOI OOOOLANO, KA ... E 67726 1,046 hours at $7,50 per hour $7,845.00 MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS M. J. KENNEDY. C.P.A. IRE'OWBO) e. L, coE=.P.w. IDiciwBED '1ieo1 RALPH E. REITZ, C.P.A. JOHN W. POOR, C.P.A. E. T. BHEA- C.P.A. LEETER M. MERTY. C.P.A. C. E. ROBERTS. C.P.A. WILLIAM H. MONROE, C.P.A. RANDALL P. ANDERSON, C.P.A. ROBERT O. WILBUR. C.P.A. ADLEY E. JOHNSON. C.P.A. CON P. DIEDERICH, C.P.A. PAUL A. MOTT, C.P.A. W. E. CRIBS, C.P.A. Mr. Norris D. Olson City Manager City of Salina Salina, Kansas Dear Mr. Olson: KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS UNITED BUILDING SAUNA, KANSAS 67402 April 6, 1966 OPFlCBB SAUNA. KANSAS TELEPHONE TAYLOR 8-1661 CONCORDIA. KANSAS TELEPHONE CHESTNUT 3-1010 ORBAT BEND. KANSAS TELEPHONE GLADSTONE i-6061 OBERLIN. KANSAS TELEPHONE GROVER 5.2801 COLEY. KANSAS TELEPHONE HOBART i-3861 Re: City of Salina Audit In reply to your request we herewith submit the following proposals to the Mayor and Commissioners of the City of Salina, Kansas. i We will perform the audit of the City of Salina, Kansas, and its related depart- ments excluding the Municipal Band Board, The Public Health Board, The Public Library Board, and the Firemen's Relief Association for the year 1966 in accordance with the minimum standard audit program for municipalities of the State of Kansas and the applicable statutes and ordinances under the following terms and conditions: 1. The audit shall be performed under the supervision of a Certified Public Accountant who is also a licensed Municipal Public Accountant and he shall have the assistance of such other personnel as it is deemed necessary. Our fee will be computed upon the basis of $7.50 per hour per person engaged in the work and we agree that in no event our fee for the regular audit will exceed $8,000.00. 2. In the event that laws are enacted or the State Municipal Accounting Board makes changes in the audit requirements for Kansas municipalities, If if any irregularities are discovered and additional auditing proce- dures would be required, we agree to notify your office promptly before continuing our services and if additional time is required in regard thereto, we request the right to renegotiate with the Commissioners the maximum fee stated above. Mr. Norris D. Olson April 6, 1966 Page 2 3. The audit may be performed in part, or in its entirety, after April 15, 1967, but the report shall be rendered no later than July 15, 1967, un- less by mutual agreement the time for submitting such report is extended. It is agreed, however, that certain audit procedures may be performed prior to the year ending of December 31, 1966, including the counting of cash on December 31, 1966. 4. The above fee shall include any general services regarding advice or counsel pertaining to general fiscal and accounting problems and pro- cedures of the City that may be requested during the year, but if any services are rendered beyond the scope of the regular audit and general applications thereto we herewith agree to perform these services upon proper authorization of the Mayor and Commissioners at an hourly rate of $7.50 per hour. In compliance with the rules of professional conduct set forth by the Kansas State Board of Accountancy, this proposal is automatically voided and withdrawn if it is to be considered in competition with proposals of other accountants. If this meets with your approval, please sign in the spaces indicated below. Very truly yours, Certified Public Accountants s Accepted this it day of 1966. Mayor - City of Salina, Kansas Director of Finance - City of Salina, Kansas THE CITY OF SALINA, KANSAS PURCHASE ORDER DEPARTMENT FILE COPT Aenr�e y T0: - -� - - Cox 806 Salina, Mamas Ship To CITY OF SALINA, KANSAS ATTENTION or % DEPARTMENT CHECK NO. DATE PAID AWust, 22, 1967 DATE FUND CHARGE CODE AMOUNT' —3 QUANTITY -DESCRIPTION UNIT PRICE AMOUNT 14665 AWIt Contract total 7,645.00 Less C1mrqtd to City CLsic 3 C O nunrD un 9710 .THE CITY CSF' SAUNA, KANSAS PURCHASE ORDER DEPARTMENT FILE COPY r— —1 a�^c ay # Coe TO: Sw ifn s ["' nzns L Ship To CITY OF SALINA, KANSAS ATTENTION or % DEPARTMENT CHECK NO. DATE PAID DATE Dec. 3S,1966 FUND CHARGE Cit". Ci,;rk CODE AMOUNT QUANTITY DESCRIPTION UNIT PRICE AMOUNT &vlft i`k:�C2ort frit` 1966