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Audit - 2011/2010 SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31, 2011 and 2010 CLUBINE AND RETTELE, CHARTERED CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT 1 STATEMENTS OF FINANCIAL POSITION - Exhibit I 2 STATEMENTS OF ACTIVITIES- Exhibit II 3 STATEMENTS OF CASH FLOWS - Exhibit III 4 STATEMENT OF FUNCTIONAL EXPENSES- Exhibit IV 5-6 NOTES TO FINANCIAL STATEMENTS 7-10 SCHEDULES OF PROGRAM REVENUES 11 SCHEDULES OF DIRECT PROGRAM EXPENSES 12-13 SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES 14-16 SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES 17-18 CLUBINE • • RETTELE CHARTERED INDEPENDENT AUDITORS' REPORT Certified Public Accountants To: The Board of Directors • eg, Salina Area Chamber of Commerce, Inc. Salina, Kansas We have audited the accompanying statements of financial position of Salina Area Chamber of Commerce, Inc. (a nonprofit organization) as of December 31, 2011 and 2010, and the related statements of activities, cash flows, and functional expenses for the years then ended. These financial statements are the responsibility of the Robert I.clubine,C.P.A. Organization's management. Our responsibility is to express an opinion on these David A. Rettele, C.P.A. financial statements based on our audits. Jay D.Langley,C.P.A. Jon K. Bell, C.P.A. We conducted our audits in accordance with auditing standards generally accepted in the Leslie M.Corbett, C.P.A. United States of America. Those standards require that we plan and perform the audit to Stacy J. osner,C.P.A. obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the Maid K. Fox,C.P.A. amounts and disclosures in the financial statements. An audit also includes assessing John T. Millikin,C.P.A. the accounting principles used and significant estimates made by management, as well Linda A.Svelter,C.P.A. as evaluating the overall financial statement presentation. We believe that our audits • provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Salina Area Chamber of Commerce, Inc. as of December 31, 2011 and 2010, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental information contained in pages 11 through 18 is presented for the purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was • derived from and relates directly to the underlying accounting and other records used to • prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the 218 South Santa Fe underlying accounting and other records used to prepare the financial statements or to P.O. Box 2267 the financial statements themselves, and other additional procedures in accordance with Salina, Kansas auditing standards generally accepted in the United States of America. In our opinion, 67402-2267 the information is fairly stated in all material respects in relation to the financial statements as a whole. Salina CLUBINE AND RETTE CHARTERED 785/825-5479 Q2A L.+-ice Salina Fax 785/825-2446 Ellsworth 785/472-3915 Ellsworth Fax 785/472-5478 March 19, 2012 (1) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit I STATEMENTS OF FINANCIAL POSITION For the Year Ended December 31, 2011 2010 ASSETS Cash and cash equivalents $ 1,187,468 $ 1,069,231 Accounts receivable 130,120 101,604 Unconditional promises to give, net (Note 6) 166,911 266,540 Prepaid expenses 57,266 • 143,452 Land, building and equipment, net(Note 2) 615,856 615,241 Investment land at market value (Note 3) 100,000 100,000 Total Assets $ 2,257,621 - $ 2,296,068 LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 49,751 $ 9,039 Accrued taxes and other liabilities 178,382 171,846 Dues collected in advance 19,608 58,835 Program income collected in advance 128,082 207,679 Total Liabilities 375,823 447,399 Net Assets Unrestricted Net Assets Designated for fixed assets 715,856 715,241 Designated for convention and tourism 16,398 4,843 Undesignated 1,023,048 902,460 Total Unrestricted Net Assets 1,755,302 1,622,544 Temporarily Restricted Net Assets 126,496 226,125 Total Net Assets 1,881,798 1,848,669 Total Liabilities and Net Assets $ 2,257,621 $ 2,296,068 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (2) • SALINA AREA CHAMBER OF COMMERCE, INC. . Salina, Kansas Exhibit II STATEMENTS OF ACTIVITIES For the Year Ended December 31, 2011 2010 Change in Unrestricted Net Assets Support and Revenue Membership dues $ 337,629 $ 337,382 Program revenue 415,032 393,106 Economic development 155,627 165,624 Convention and tourism 715,445 671,311 Facility rental 13,180 13,225 Interest 10,890 11,644 Miscellaneous 4,998 7,523 Total Unrestricted Support and Revenue 1,652,801 1,599,815 Net Assets Released from Restriction 320,733 310,815 Total Unresricted Support and Revenue 1,973,534 1,910,630 Expenses • Program Services Agriculture 62,978 61,628 Community development 104,733 29,267 Internal affairs 219,075 212,424 Economic development 113,854 98,800 • Convention and tourism 270,207 300,171 Total Program Services 770,847 702,290 Supporting Services Administrative and general expenses 103,221 94,865 Staff expenses 874,507 888,337 Building operation expenses 92,201 87,436 Total Supporting Services 1,069,929 1,070,638 Total Expenses 1,840,776 1,772,928 Increase in Unrestricted Net assets 132,758 137,702 Change in Temporarily Restricted Net Assets Economic development strategic plan contributions 221,104 219,760 Net Assets Released From Restriction (320,733) (310,815) Decrease in Temporarily Restricted Net Assets (99,629) (91,055) Increase in Net Assets 33,129 46,647 Beginning Net Assets 1,848,669 1,802,022 Ending Net Assets $ 1,881,798 $ 1,848,669 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (3) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit III STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2011 2010 Cash Flows From Operating Activities Cash received from dues and projects $ 1,198,880 $ 1,226,537 Cash received from government entities 717,070 670,464 Cash received from other operating activities 18,178 20,748 Interest received 10,890 11,644 Cash paid to employees and suppliers (1,790,046) (1,768,074) Net Cash Provided by Operating Activities 154,972 161,319 Net Cash Used by Investing Activities Purchase of equipment (36,735) (15,586) Net Increase in Cash and Cash Equivalents 118,237 145,733 Cash and Cash Equivalents at Beginning of Year 1,069,231 923,498 Cash and Cash Equivalents at End of Year $ 1,187,468 $ 1,069,231 RECONCILIATION OF INCREASE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Increase in net assets $ 33,129 $ 46,647 Adjustments to reconcile increase in net assets to net cash provided by operating activities Depreciation 36,120 36,120 Increase in accounts receivable (28,516) (7,765) Decrease in promises to give 99,629 117,583 Decrease (Increase) in prepaid expenses 86,186 (71,212) Increase in accounts payable and accrued expenses 47,248 64,112 Increase(Decrease) in dues collected in advance (39,227) 21,114 Decrease in program income collected in advance (79,597) (45,280) Total Adjustments 121,843 114,672 Net Cash Provided by Operating Activities $ 154,972 $ 161,319 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (4) SALINA AREA CHAMBER OF COMMERCE, INC. Salina; Kansas Exhibit IV a STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2011 . Economic Develop- Convention Chamber ment Tourism Total Direct Program Expenses $ 386,786 $ 113,854 $ 270,207 $ 770,847 Administrative and General Expenses Professional services 3,287 2,023 3,119 8,429 Travel expense 7,134 5,883 2,674 15,691 Office supplies 4,746 2,921 5,507 13,174 Postage 3,186 1,961 3,022 8,169 Communications 2,278 1,402 2,161 5,841 Computer services 5,594 3,442 5,550 14,586 Equipment services 5,804 3,571 5,506 14,881 Dues and subscriptions 4,344 2,079 2,409 8,832 Insurance 1,019 627 968 2,614 Contingency fund 11,004 - - 11,004 Total Administrative and General Expenses 48,396 23,909 30,916 103,221 Staff Expenses Salaries 161,882 221,139 271,923 654,944 Payroll taxes 11,266 15,838 18,443 45,547 Group medical insurance 21,226 42,414 51,601 115,241 Medical reimbursement 279 287 2,319 2,885 Group wellness 625 984 1,267 2,876 Retirement 7,579 10,465 15,585 33,629 Group life insurance 181 592 1,011 1,784 Cafeteria plan 282 338 444 1,064 . Disability 975 1,427 1,656 4,058 Unemployment tax 775 1,069 1,183 3,027 Workers compensation insurance 733 1,114 1,172 3,019 Professional development 1,806 2,577 2,050 6,433 Total Staff Expenses 207,609 298,244 368,654 874,507 Building Operation Expenses Property insurance 2,239 1,378 2,124 5,741 Utilities 5,750 3,538 5,455 14,743 Taxes 8,551 5,262 8,112 21,925 Maintenance and janitorial 5,333 3,281 5,058 13,672 Depreciation 14,086 8,669 13,365 36,120 Total Building Operation Expenses 35,959 22,128 34,114 92,201 Total Expenses $ 678,750 $ 458,135 $ 703,891 $ 1,840,776 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (5) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit IV b STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2010 Economic Develop- Convention Chamber ment Tourism Total Direct Program Expenses $ 303,319 $ 98,800 $ 300,171 $ 702,290 Administrative and General Expenses Professional services 2,471 1,520 2,360 6,351 Travel expense 4,702 4,563 1,869 11,134 Office supplies 6,099 3,741 6,199 16,039 Postage 1,405 839 1,849 4,093 Communications 1,636 1,002 1,639 4,277 Computer services 4,330 2,655 4,288 11,273 Equipment services 4,991 3,064 4,872 12,927 Dues and subscriptions 4,762 2,708 2,608 10,078 Insurance 1,068 658 1,014 2,740 Contingency fund 15,953 - - 15,953 Total Administrative and General Expenses 47,417 20,750 26,698 94,865 Staff Expenses . Salaries 152,603 246,490 259,561 658,654 Contract labor 177 - - 177 Payroll taxes 10,924 17,734 18,194 46,852 Group medical insurance 20,506 46,484 50,651 117,641 Medical reimbursement 310 1,436 371 . 2,117 • Retirement 7,838 15,519 16,314 39,671 Group life insurance 99 187 862 1,148 Cafeteria plan 212 336 516 1,064 Disability 901 1,475 1,592 3,968 Unemployment tax 666 1,090 1,226 2,982 Workers compensation insurance 694 1,117 1,121 2,932 Professional development 2,448 4,255 4,428 11,131 Total Staff Expenses 197,378 336,123 354,836 888,337 Building Operation Expenses Property insurance 2,151 1,324 2,041 5,516 Utilities 5,248 3,206 5,443 13,897 Taxes 6,236 3,836 5,950 16,022 Maintenance and janitorial 6,087 3,731 6,062 15,880 Depreciation 14,087 8,669 13,365 36,121 Total Building Operation Expenses 33,809 20,766 32,861 87,436 Total Expenses $ 581,923 $ 476,439 $ 714,566 $ 1,772,928 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (6) • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2011 and 2010 1. Nature of Organization and Significant Accounting Policies . •A. Nature of Organization Salina Area Chamber of Commerce, Inc. (the"Chamber") is a nonprofit organization located in Salina, Kansas. Its purpose is to administer various activities advancing the general welfare and prosperity of the Salina area especially in the areas of economic development and tourism. B. Income Tax Exemption The Organization is a not-for-profit organization that is exempt from income taxes under Section 501(c)(6) of the Internal Revenue Code. The Organization's Forms 990, Return of Organization Exempt from Income Tax, for the years ending 2008, 2009, and 2010 are subject to examination by the IRS, generally for three years after they were filed. C. Accounting Method The books of the Chamber are maintained and these financial statements were prepared on the accrual method of accounting. Under this method revenues are recognized when earned and expenses are recognized when incurred. D. Net Assets The Chamber has no permanently restricted net assets and therefore all net assets are classified as either temporarily restricted or unrestricted. Temporarily restricted net assets consist of contributions to the Organization's Economic Development Strategic plan that are not yet expended at year end. The Chamber has established a policy of dividing unrestricted net assets into three components: designated for fixed assets, designated for convention and tourism and undesignated. Unrestricted net assets designated for fixed assets is an amount equal to the Chamber's investment in building, furniture, fixtures, equipment, land improvements and land less accumulated depreciation. Unrestricted net assets designated for convention and tourism is the excess income over expenditures of the convention and tourism program. Unrestricted net assets in excess of that designated for fixed assets, economic development and convention and tourism are undesignated. • E. Cash and Cash Equivalents For the purpose of the statements of bash flows, the Chamber considers all short-term investment securities purchased with a maturity of three months or less to be cash equivalents. The Chamber maintains checking, certificate of deposit, and deposits under repurchase agreements with eight financial institutions in Salina, Kansas. The amount not covered by F.D.I.C. insurance totaled $473,863, however, this amount was held under repurchase agreements at Sunflower Bank and is secured by direct or indirect obligations of the United States Government. F. Accounts Receivable Accounts receivable are considered to be fully collectible. Accordingly, the allowance for doubtful accounts is zero. G. Inventories Purchases of supplies that might be considered as inventory are expensed when purchased. Actual amounts on hand are considered immaterial. (7) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2011 and 2010 H. Membership Dues and Program Income Membership dues and program income are recognized as revenue in the year in which they are earned. The Chamber bills dues in December for the coming membership year, consequently a significant amount of dues are collected in advance and recorded as dues collected in advance in the financial statements. Program revenues are sometimes received in the year preceding the actual event, consequently these revenues are recorded as deferred income in the financial statements. I. Contributions Unconditional promises to give, are recognized in the period received. Conditional promises to give are not recognized until they become unconditional; that is,when the conditions on which they depend are substantially met. Contributions to be received after one year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of discounts is recorded as additional contribution revenue in accordance with donor-imposed restrictions, if any, on the contributions. J. Allocation of expenses The basis for allocation of expenses to specific programs is determined by management. Expenses that can be directly identified with specific programs are charged to that program. Other expenses are allocated using predetermined percentages. K. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. L. Products and services received in payment of dues are recorded at estimated market value by the Chamber. 2. Land, Building and Equipment can be summarized as follows: Land, Building and Equipment Buildings $ 689,787 $ 677,712 Furniture, fixtures and equipment 419,220 394,560 Land improvements 15,280 15,280 Land 192,691 192,691 1,316,978 1,280,243 Less: Accumulated depreciation (701,122) (665,002) Total Land, Building and Equipment(net) $ 615,856 $ 615,241 Land, building and equipment are carried at cost. Depreciation of the building and equipment is computed on a straight-line basis over the estimated useful lives of the respective assets. The building, parking lot and landscaping are depreciated over their estimated useful lives which range from 8 to 35 years and the estimated useful lives of the furniture, fixtures and equipment range from 3 to 10 years. 3. Investment Land The Chamber purchased land on May 31, 1985 for$335,382. One-half of this land was used to construct the building which now serves as the Chamber's office and remains on the books at its original cost. The remaining east half of the land was recorded as investment land and is not an integral part of Chamber operations. Subsequent to its original purchase, it was appraised for$100,000 and consequently written down to its fair market value. (8) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2011 and 2010 4. Agreement Relating to Economic Development The Chamber receives contributions from the City of Salina, Saline County and the Salina Airport Authority (Grantors) to help fund a program, the purpose of which is to encourage economic development in the Salina/Saline County area. The agreement provides that the Chamber will expend funds received on programs and services that the parties to this agreement believe will enhance the economic development of the area. 5. Agreement Relating to Convention and Tourism The Chamber has entered into an agreement with the City of Salina to provide convention and tourism programs to encourage, promote and solicit conventions and tourism for the City of Salina, and the City has appointed a Convention and Tourism Advisory Committee to recommend to the Chamber, programs in connection with this agreement. Under this agreement the City makes contributions to the Chamber of a portion of the proceeds of the local transient guest tax levied on hotel and motel guests. The Chamber"board has designated excess income over expenditures for 2011 and 2010 in the amount of $16,398 and $4,843 respectively, as a reserved net asset for convention and tourism in order to fund future contracted obligations. 6. Promises to give Unconditional promises to give at December 31, are as follows: Promises to give expected to be collected in: 2011 2010 Receivable within 1 year $ 172,073 $ 255,456 Receivable beyond 1 year but within 5 years - 20,500 172,073 275,956 Less allowance for uncollectibles (5,162) (8,166) Less discount on promises to give - (1,250) Net unconditional promises to give $ 166,911 $ 266,540 No discount on promises to give has been computed at December 31, 2011 because all remaining promises to give are due within one year. Management considers promises to give to be 97% collectible. 7. Retirement Plan The Chamber has established a defined contribution retirement plan covering substantially all qualified employees. Qualified employees are at least 21 years of age and have completed one year of service. Contributions are made by the Chamber equal to 6% of eligible compensation. The total expense under the plan was $33,629 and $39,671 for the years ended December 31, 2011 and 2010, respectively. (9) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2011 and 2010 8. Compensated Absences The Chamber grants annual paid vacations to its full time employees based on the following schedule: Annual Vacation Years of Service Allowance 1-9 10 days 10 or more 15 days Vacation days earned must be used within one year and do not accumulate. 9. Leases The Chamber leases an automobile used in its operations. Total lease expense for the years ended . December 31, 2011 and 2010 is $5,735 and $6,374, respectively. The following is a schedule of future minimum lease payments required under these operating leases as of December 31, 2011: Year Ended December 31, 2012 $ 5,734 2013 956 Subsequent - 10. Economic Development Strategic Plan The following information sets forth the amount of temporarily restricted contributions received and expended in relation to the Chamber's Economic Development Strategic Plan. 2011 2010 Beginning Temporarily Restricted Net Assets $ 226,125 $ 317,180 Contributions 221,104 219,760 Expenditures (320,733) (310,815) Ending Temporarily Restricted Net Assets $ 126,496 $ 226,125 11. Subsequent Events Salina Area Chamber of Commerce, Inc.'s management has evaluated events and transactions occurring after December 31, 2011 through March 19, 2012. The aforementioned date represents the date the financial statements were available to be issued. (10) SUPPLEMENTAL INFORMATION SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF PROGRAM REVENUES For the Year Ended December 31, 2011 2010 Program Revenues Farm show $ 93,576 $ 91,362 Dairy show 12,081 11,565 Leadership Salina 15,600 15,618 China trip 92,581 - Membership meetings 22,342 11,959 Website sponsorships 4,200 4,200 Chamber- Net 5,135 5,700 Legislative action 1,200 1,200 Military affairs - 2,927 Gift certificate sponsorship 1,125 1,200 Annual meeting 153,055 229,450 SDI support 14,137 17,925 Total Program Revenues $ 415,032 $ 393,106 • (11) SALINA ARE A CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF DIRECT PROGRAM EXPENSES For the Year Ended December 31, - 2011 2010 Chamber Direct Program Expenses Agriculture Farm show $ 48,708 $ 49,308 Agriculture development 2,181 1,016 Dairy show 12,089 11,304 Total Agriculture Direct Program Expenses 62,978 61,628 Community Development - Leadership Salina 13,362 21,009 China trip 89,259 All America team 197 522 Arts - 5,079 Transportation 1,915 - Military affairs - 2,657 Total Community Development Direct Program Expenses 104,733 29,267 Internal Affairs Ambassadors 6,146 6,309 Membership services 4,887 5,136 Plans and directors 1,087 999 Communication and image 22,144 24,426 Chamber- Net 4,510 3,945 Legislative action 426 576 Membership meetings 19,619 13,727 Annual meeting 160,256 157,306 Total Internal Affairs Direct Program Expenses 219,075 212,424 Total Chamber Direct Program Expenses 386,786 303,319 Economic Development Program Expenses Business Retention and Expansion Marketing 5,697 275 Travel/Corporate visits 53 2,503 Research 5,360 832 Computer hardware/software 1,921 1,526 Professional membership dues 216 335 Total Business Retention and Expansion 13,247 5,471 New Business Attraction Advertising 944 3,515 Marketing 19,967 26,189 Travel/call trips and trade shows 915 1,958 Research 15,085 3,540 . Computer hardware/software 821 550 Professional membership dues 1,381 300 Total New Business Attraction 39,113 36,052 (12) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF DIRECT PROGRAM EXPENSES (Continued) For the Year Ended December 31, 2011 2010 Commercial Development Marketing 60 185 Travel/developers - 68 Research - 15 Professional membership dues 56 275 Total Commercial Development 116 543 Workforce Development STC/web services/seminars 8,795 11,281 Travel/employee recruitment/job fairs/dues 618 2,420 HR local events 110 5 Marketing 17,524 14,942 Research 11,400 - YPN 498 4,295 Census 492 22,034 Total Workforce Development 39,437 54,977 Legislative Action 1,685 1,757 Military Affairs 18,512 - Miscellaneous 1,744 - Total Economic Development Direct Program Expenses 113,854 98,800 Convention and Tourism Direct Program Expenses Advertising 64,246 70,512 Convention marketing 14,190 12,308 Convention services 9,908 21,107 Tourism marketing 17,654 27,489 Sports 151,937 159,288 Hospitality services 1,158 - Smoky Hill River Festival 5,000 5,000 Visit Salina organization dues/artpace 3,889 2,067 Calendar of Events 2,200 2,400 Calendar of Events 25 - Total Convention and Tourism Direct Program Expenses 270,207 300,171 Total Direct Program Expenses $ 770,847 $ 702,290 (13) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES For the Year Ended December 31, 2011 2010 Revenues City of Salina $ 85,000 $ 85,000 Saline County 15,000 15,000 Salina Airport Authority 20,000 20,000 Economic development strategic plan 221,104 219,760 Grant services 15,300 15,300 Program revenue 20,327 30,324 Total Revenues $ 376,731 $ 385,384 Expenses Program expenses (Schedule 1A) $ 113,854 $ 98,800 Administrative and general expenses (Schedule 2A) 23,909 20,750 Staff expenses (Schedule 3A) 298,244 336,123 Building operation expenses (Schedule 4A) 22,128 20,766 Total Expenses $ 458,135 $ 476,439 (14) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES For the Year Ended December 31, 2011 2010 Schedule 1A- Program Expenses _ Business retention $ 13,247 $ 5,471 New business attraction 39,113 36,052 Commercial development 116 543 Workforce development 39,437 54,977 Legislative action 1,685 1,757 Military affairs 18,512 - Miscellaneous . 1,744 - Total Program Expenses $ 113,854 $ 98,800 Schedule 2A-Administrative and General Expenses Professional services $ 2,023 $ 1,520 Travel expense 5,883 4,563 Office supplies 2,921 3,741 Postage 1,961 839 Communications 1,402 1,002 Computer services 3,442 2,655 Equipment services 3,571 3,064 Dues and subscriptions 2,079 2,708 Insurance 627 658 Total Administrative and General Expenses $ 23,909 $ 20,750 Schedule 3A-Staff Expenses Salaries $ 221,139 $ 246,490 Payroll taxes 15,838 17,734 Group medical insurance 42,414 46,484 Medical reimbursement 287 1,436 Group wellness 984 - Retirement 10,465 15,519 Group life insurance 592 187 Cafeteria plan 338 336 Disability 1,427 1,475 Unemployment tax 1,069 1,090 Workers compensation insurance 1,114 1,117 Professional development 2,577 4,255 Total Staff Expenses - $ 298,244 $ 336,123 • (15) • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES (Continued) For the Year Ended December 31, 2011 2010 Schedule 4A -Building Operation Expenses Property insurance $ 1,378 $ 1,324 Utilities 3,538 3,206 Taxes 5,262 3,836 Maintenance and janitorial 3,281 3,731 Depreciation 8,669 8,669 Total Building Operation Expenses $ 22,128 $ 20,766 • (16) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES For the Year Ended December 31, 2011 2010 Revenues City of Salina $ 597,070 $ 550,464 NJCAA women's basketball 63,717 59,840 High school sports 45,624 49,388 SDI support - 2,414 Special functions 9,034 9,205 Total Revenues $ 715,445 $ 671,311 Expenses Program expenses (Schedule 1B) $ 270,207 $ 300,171 Administrative and general expenses (Schedule 2B) 30,916 26,698 Staff expenses (Schedule 3B) 368,654 354,836 Building operation expenses (Schedule 4B) 34,114 32,861 Total Expenses $ 703,891 $ 714,566 • (17) . ', • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES For the Year Ended December 31, 2011 2010 Schedule 1B - Program Expenses Advertising $ - 64,246 $ 70,512 Convention marketing 14,190 12,308 Convention services 9,908 21,107 Tourism marketing • 17,654 27,489 Sports 151,937 159,288 Special projects 12,272 9,467 Total Program Expenses $ 270,207 $ 300,171 Schedule 2B -Administration and General Expenses Professional services $ 3,119 $ 2,360 Travel expense 2,674 1,869 Office supplies 5,507 6,199 Postage 3,022 1,849 Communications - 2,161 1,639 Computer services 5,550 4,288 Equipment services 5,506 4,872 Dues and subscriptions 2,409 2,608 Insurance 968 1,014 Total Administration and General Expenses $ 30,916 $ _ 26,698 Schedule 3B - Staff Expenses Salaries $ 271,923 $ 259,561 Payroll tax 18,443 18,194 Group medical insurance 51,601 50,651 Medical reimbursement 2,319 371 Group wellness 1,267 - Retirement 15,585 16,314 Group life insurance 1,011 862 Cafeteria plan 444 516 Disability 1,656 1,592 Unemployment tax 1,183 1,226 Workers compensation insurance 1,172 1,121 Professional development 2,050 4,428 Total Staff Expenses $ 368,654 $ . 354,836 Schedule 48 - Building Operation Expenses Property insurance $ 2,124 $ 2,041 Utilities 5,455 5,443 Taxes 8,112 5,950 Maintenance and janitorial 5,058 6,062 Depreciation 13,365 13,365 Total Building Operation Expenses $ 34,114 $ 32,861 (18)