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Audit - 2010/2011 1 1 1 1 SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas I 1 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT December 31, 2011 and 2010 1 1 CLUBINE AND RETTELE, CHARTERED CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS 1 1 1 SALINA-SALINE COUNTY BOARD OF HEALTH ' Salina, Kansas ' TABLE OF CONTENTS Page ' FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1-2 ' MANAGEMENT'S DISCUSSION AND ANALYSIS 3 Exhibit I BALANCE SHEETS 4 Exhibit II STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY- BUDGET AND ACTUAL 5 IExhibit III STATEMENTS OF CASH FLOWS 6 NOTES TO FINANCIAL STATEMENTS 7-10 ' SUPPLEMENTAL INFORMATION ISchedule 1 GRANTS FROM THE STATE OF KANSAS 11 Schedule 2 FEES FOR SERVICES 12 ' SINGLE AUDIT SECTION I INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 13-14 IINDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER ' COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 15-16 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 17 .1 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 18 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 19 ICORRECTIVE ACTION PLAN 20 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 21 1 1 ' SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas 1 1 1 1 1 ' FINANCIAL SECTION I 1 1 1 I I - • CLL�'�BINE& IRET'7�ELE INDEPENDENT AUDITORS' REPORT CHARTERED To the Governing Board ' Certified Public Accountants Salina-Saline County Board of Health Salina, Kansas ' al7 We have audited the accompanying financial statements of Salina-Saline County Board of Health, Salina, Kansas, as of and for the years ended December 31, 2011 and 2010 as listed in the table of contents. These financial statements are the responsibility of the Board of Health's management. Our responsibility is to express opinions on these financial I statements based on our audits. • We conducted our audits in accordance with auditing standards generally accepted in the Robert I. ye, C.P.A. United States of America, the standards applicable to financial audits contained in I David A. Rettele,C.P.A. Government Auditing Standards, issued by the Comptroller General of the United States Jay D. Langley, C.P.A. and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and • Jon K. Bell, C.P.A. Reports, Department of Administration of the State of Kansas. Those standards require Lesfie M. Corbett, C.PA. that we plan and perform the audit to obtain reasonable assurance about whether the ' Stacy J. Osner, C.P.A. financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Marci K. Fox, C.P.A. An audit also includes assessing the accounting principles used and significant estimates Linda A. Svelter,C.P.A. made by management, as well as evaluating the overall financial statement presentation. I We believe that our audits provide a reasonable basis for our opinions. As described in Note 1. B.(2), management has not included the capitalization and I depreciation of property and equipment, which should be included in order to conform with accounting principles generally accepted in the United States of America. The amount that should be capitalized and depreciated is not reasonably determined. I . In our opinion, except for the effect on the financial statements of the omission described in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the Salina-Saline County Board of Health at I December 31, 2011 and 2010, and changes in financial position and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. I In accordance with Government Auditing Standards, we have also issued our report dated July 24, 2012 on our consideration of Salina-Saline County Board of Health's internal control over financial reporting and on our tests of its compliance with certain provisions of I 218 South Santa Fe laws, regulations, contracts, and grant agreements and other matters. The purpose of that P.O. Box 2267 report is to describe the scope of our testing of internal control over financial reporting and Salina, Kansas compliance and the results of that testing, and not to provide an opinion on the internal 67402-2267 control over financial reporting or on compliance. That report is an integral part of an audit I performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Salina 785/825-5479 Accounting principles generally accepted in the United States of America require that the I saliva Fax 785/825-2446 management's discussion and analysis on page 3 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial Ellsworth statements, is required by the Governmental Accounting Standards Board, who considers 785/472-3915 it to be an essential part of financial reporting for placing the basic financial statements in I Ellsworth Fax an appropriate operational, economic or historical context. We have applied certain limited 785/472-5478 procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries I of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the I information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. I (1) Our audits were conducted for the purpose of forming opinions on the basic financial statements taken as a whole. The supplemental information on pages 11 and 12 is presented for purposes of additional analysis and is not a required I part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements of I Salina-Saline County Board of Health. The supplemental information and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate 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 underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all ' material respects in relation to the financial statements as a whole. Respectfully submitted, CLUBINE AND RETTELE, CHARTERED 1 • July 24, 2012 • • • 1 1 1 1 ' (2) ' SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas IMANAGEMENT'S DISCUSSION AND ANALYSIS I The management of the Salina-Saline County Board of Health provides readers of the Board of Health's financial statements an overview and analysis of the Salina-Saline County Board of Health's financial activities for the year ended December 31, 2011. Please read it in conjunction with the Board's financial statements which begin on page 4. IFinancial Highlights 1. Laptops and home health software were purchased for the home health staff. ' 2. Training began late in the year for the home health staff to convert to electronic medical and billing records. Condensed Financial Information ' 2011 2010 Total Assets $ 2,336,510 $ 2,332,904 Total Liabilities (620,452) (556,275) Deferred Income (18,422) (16,537) Total Fund Equity $ 1,697,636 $ 1,760,092 IRevenues Appropriations $ 1,790,225 $ 1,790,225 IGrants 819,152 915,957 Fees for services 962,522 .1,117,253 I Interest income 1,196 2,466 Miscellaneous 282,960 301,476 Total Revenues 3,856,055 4,127,377 IExpenses Personal services 3,185,562 3,127,890 I Contractual services 267,568 291,979 Expendable supplies 465,381 446,745 I . Total Expenses •3,918,511 3,866,614 Excess (Deficit) of Revenue over Expenses (62,456) 260,763 I Beginning Fund Equity 1,760,092 1,499,329 Ending Fund Equity $ 1,697,636 $ 1,760,092 IFuture 1. Potential membership in a health information exchange will necessitate a move to electronic medical records for the clinic. I2. As part of the application for national accreditation recognition, a community health assessment and quality improvement plan will be completed. I3. An animal shelter remodeling project is being considered. I (3) ' SALINA-SALINE COUNTY BOARD OF HEALTH ' Salina, Kansas Exhibit I ' BALANCE SHEETS • I ASSETS I 2011December 31, 2010 Cash $ 2,019,936 $ 1,905,850 Accounts receivable I State of Kansas (Note 5) 63,404 104,270 Medicare and Medicaid 150,545 201,129 Other care services 102,625 121,655 ' Totals $ 2,336,510 $ 2,332,904 ILIABILITIES AND FUND EQUITY ' Liabilities Vouchers payable $ 26,561 $ 41,630 Accrued salaries 42,451 •42,926 Accrued liability for compensated absences 270,242 260,824 Animal Shelter Reward fund payable 281,198 210,895 Total Liabilities 620,452 556,275 IDeferred Income (Note 5) 18,422 16,537 ' Fund Equity Unrestricted I Designated for Health Department 1,537,652 1,585,836 Designated for Animal Shelter 159,984 174,256 Total Fund Equity 1,697,636 1,760,092 Totals $ 2,336,510 $ 2,332,904 I I I The accompanying notes are an integral part of these financial statements. I (4) ISALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas Exhibit II STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY- BUDGET AND ACTUAL For the Year Ended December 31, I . 2011 2010 Actual Budget . Actual Budget Revenues Appropriation from Saline County, Kansas $ 772,124 $ 772,124 $ 772,124 $ 772,124 Appropriation from City of Salina, Kansas 1,018,101 1,018,101 1,018,101 1,018,101 Grants from the State of Kansas 819,152 813,022 915,957 872,069 IFees forsehvices 962,522 966,871 1,117,253 1,129,988 • Interest income 1,196 2,466 1,000 Miscellaneous revenues 282,960 233,500 301,476' 170,578 I Total Revenues 3,856,055 3,803,618 4,127,377 3,963,860 Expenses Personal Services • I Salaries '2,248,107 2,228,295 2,289,272 2,308,819 Social security .157,686 170,465 167,212 176,737 Retirement 163,217 156,785 161,430 162,127 Health insurance 299,794 325,416 317,671 339,975 I Unemployment insurance 4,702 8,022 312,056 8,575 8,358 Professional services 2,056 255,635 183,730 151,485 Contractual Services I Auditing 8,200 8,000 8,000 8,000 Accounting 850 700 850 700 Building and grounds . 41,181 61,905 30,975 11,571 Telephone 19,415 26,000 31,549 26,176 I Mileage 48,482 60,000 54,362 62,692 Service contracts and equipment lease 65,253 58,000 91,083 58,000 Insurance 84,187 88,395 75,160 87,000 I Expendable Supplies Office supplies 55,931 30,072 64,196 34,438 Postage and express 14,928 14,000 10,321 • 16,000 Books, dues and subscriptions .4,011 4,150 5,395 5,450 I Equipment maintenance and repair 509 1,200 125 10,564 1,200 Gasoline and oil 9,387 12,000 564 13,500 Clinical and medical supplies 123,718 138,000 103,041 145,431 I • Chemicals 2,083 3,750 1,441 4,538 Animal supplies and donation fund expense 85,853 18,828 19,644 24,000 Shelter refund 56,321 50,000 59,045 48,000 Professional meetings 12,815 15,000 15,732 22,792 ' Utilities and water 47,974 50,000 53,917 55,000 Custodial services 4;015 6,000 12,415 6;535 Health education 41,000 13,000 68,488 34,463 I Miscellaneous expense - - 1,500 Capital equipment 6,836 22,421 48,000 Total Expenses 3,918,511 3,803,618 3,866,614 3,862,487 I Excess (Deficit) of Revenues over Expenses (62,456) $ - 260,763 $ 101,373 Fund Equity, January 1 1,760,092 1,499,329 ' Fund Equity, December 31 $ 1,697,636 $ 1,760,092 The accompanying notes are an integral part of these financial statements. I (5) I I SALINA-SALINE COUNTY BOARD OF HEALTH . Salina, Kansas IExhibit III STATEMENTS OF CASH FLOWS For the Year Ended December 31, • I 2011 2010 Cash Flows From Operating Activities Saline County, Kansas - $ 772,124 $ 772,124 ICity of Salina, Kansas 1,018,101 1,018,101 Grants 861,903 907,524 I Fees 1,032,136 1,090,046 Miscellaneous 282,960 301,476 Interest income 1,196 2,466 I Cash paid to suppliers and others (1,615,170) (1,612,761) Cash paid to employees for services (2,239,164) (2,382,045) Net Cash Provided by Operating Activities 114,086 96,931 U Increase in Cash 114,086 96,931 ICash at Beginning of Year 1,905,850 1,808,919 Cash at End of Year $ 2,019,936 $ 1,905,850 ' RECONCILIATION OF EXCESS (DEFICIT) OF REVENUES OVER EXPENSES TO NET CASH PROVIDED BY OPERATING ACTIVITIES I. Excess (Deficit) of Revenues over Expenses - Exhibit II $ (62,456) $ 260,763 IAdjustments to reconcile excess (deficit) of revenues over expenses to net cash provided by operating activities I Decrease (Increase) in accounts receivable 110,480 (35,640) Increase (Decrease) in vouchers payable (15,069) 8,974 Decrease in accrued salaries (475) (83,822) I Increase (Decrease) in accrued compensated absences 9,418 (8,951) Increase (Decrease) in Animal Shelter Reward fund payable 70,303 (42,842) Increase (Decrease) in deferred income 1,885 (1,551) ' Total Adjustments 176,542 (163,832) Net Cash Provided by Operating Activities $ 114,086 $ 96,931 ' The accompanying notes are an integral part of these financial statements. I (6) • • SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas ' NOTES TO FINANCIAL STATEMENTS December 31, 2011 and 2010 1. Summary of Significant Accounting Policies ' A. Reporting Entity The Salina-Saline County Board of Health was formed on June 28, 1955, under the Joint Resolution and Agreement of the County of Saline and the City of Salina. The Board of Health is a joint venture organized for ' the purpose of promoting the public health and sanitation of the county and city. The Governing Body of the Board of Health is composed of eleven members, three appointed City Commissioners, three appointed County Commissioners, and five members selected by the six appointed Commissioners. ' The Board of Health is considered a joint venture between the County of Saline and the City of Salina due to ongoing financial responsibility of those governments for the Board of Health. ' B. Basis of Statement Presentation • The Board of Health maintains its accounting records in accordance with modified accrual basis of accounting. The significant accounting policies followed by the Board of Health are described below. ' 1) The accompanying financial statements have been prepared on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount.of the transaction ' can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues from cost-reimbursement grants are recognized in the period the expenditure is made. It is the Board of Health's policy to follow all Financial Accounting ' Standards Board (FASB) standards issued after November 30, 1989. Deferred revenues arise when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the Board of Health has a legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and revenue is recognized. 2) Accounting principles generally accepted in the United States of America require that property and I . equipment be capitalized and depreciated. The accompanying financial statements do not conform with U.S. generally accepted accounting principles in that property and equipment is not capitalized and depreciated. ' 3) Individual accounts receivable are written off to bad debt expense in the period in which it is determined that they are uncollectible. The Board of Health considers accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required. ' 4) For purposes of the Statements of-Cash Flows, cash equivalents include time deposits and all highly liquid debt instruments with maturities of three months or less. • ' 5) The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the ' reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ' 2, Budget The Board of Health does not have tax levying powers and is not required to publish a budget. A budget is adopted annually by the governing board for the purpose of determining appropriations to be requested from Saline County and the City of Salina. The budget is prepared on the modified accrual basis of accounting. (7) • 3. Deposits and Investments ' Deposits - The carrying amount of the Board of Health's deposits were $2,014,089 and $1,890,287, and the bank balances were $2,011,627 and $2,110,171 at December 31, 2011 and 2010, respectively. The differences are cash on hand, outstanding checks and deposits. In accordance with Kansas statutes, collateral securities were ' held under joint custody receipts issued by a third-party bank, which is independent of the depository financial institution, to secure balances in excess of the $250,000 FDIC coverage. 4. Appropriations from Taxing Authorities ' Saline County and the City of Salina share the net operating costs of the Board of Health. Necessary funds are included in the tax levies of the respective municipalities, and are summarized by the following schedule: 2011 2010 Saline County, Kansas Regular tax appropriation . $ 772,124 $ 772,124 City of Salina, Kansas Regular tax appropriation $ 1,018,101 $ 1,018,101 5. Grants from the State of Kansas ' Agreements were in effect during 2011 and 2010 with the State of Kansas regarding certain grants which were funded by federal and state monies. Current agreements are for the state's fiscal year ended June 30, 2012. t Unless specifically noted, the grants are payable 25% on or about July 1, and 12.5% on or about October 1, November 15, January 1, February 15, April 1, and May 15. Unexpended grant amounts are periodically withheld from grant payments. If expenditures for these programs exceed the grant award, the Board of Health is responsible for the excess. Descriptions of the grants follow: • Federal Programs Maternal and Child Health Program ' Matching funds are provided to furnish comprehensive health care services for mothers and infants, children and adolescents. The current agreement provides that the Board of Health will receive$74,626. ' Family Planning Program Matching funds are provided to establish and maintain family planning centers to furnish and disseminate information concerning planned parenthood. The current agreement provides that the Board of Health will • receive $30,839. Special Supplemental Food Program for Women, Infants, and Children (WIC) Reimbursements are provided for administrative costs of the Women, Infants and Children Supplemental Food Program. The program provides nutritious foods for pregnant and nursing women, infants up to age 1 year, and children up to age 5 years. The current agreement provides that the Board of Health will be reimbursed monthly for actual expenses up to$327,271, plus any reallocated=federatfunds.thatmay become available. This program is on an October 1 through September 30 fiscal year. • ' HIV Case Management Program Funds are provided for services performed for new and previously diagnosed HIV positive persons. The current agreement provides that the Board of Health will receive $53,338. ' . AIDS Health Education/Risk Reduction Program Funds are provided to identify, coordinate, and provide public information and education regarding Acquired Immune Deficiency Syndrome. The agreement was not renewed at July 1, 2010. The Board of Health received the remaining award for the June 30, 2010 fiscal year end contract. Child Care Institutions Licensing Program ' Funds are provided for the evaluation, registration, and licensing of homes and/or centers caring for children. The current agreement provides that the Board of Health will receive $88,967 payable in quarterly amounts based on number of licenses issued. • 1 (8) I Immunization Action Plan I Funds are provided for the implementation of an increased age-appropriate level of immunization for children aged birth to two years. The current agreement provides that the Board of Health will receive $37,822 which includes $26,908 specifically for the Women, Infant Children (WIC) Immunization I Collaboration. Lead Poisoning Prevention Program Funds are provided for elevated blood level inspection per protocols to identify lead hazards of children. I The current agreement provides a maximum payment of$200 per address per year for elevated blood level inspection services. Public Health Emergency Preparedness and Response Program I Funds are provided to build and strengthen the abilities of public health departments to respond effectively to public health threats, whether they are natural, unintentional, or intentional events, through the Public Health Emergency Preparedness cooperative agreement(PHEP). The current agreement provides that the Board of Health will receive $76,454. IState Programs Food Service Licensing Program I Funds are provided for the evaluation, registration, and licensing of food service establishments. The current agreement provides that the Board of Health will receive 80% of annual licensing fees, payable monthly. The Board of Health received $4,800 in 2010. This program was terminated effective January 9, I 2010. General Health Services-State Formula Grant Matching funds are provided to help insure that adequate health services are available to the Saline County I Community. The current agreement provides that the Board of Health will receive $38,719 payable in quarterly installments. HIV Counseling and Testing Site Program I Funds are provided for the counseling and testing of Acquired Immune Deficiency Syndrome. The agreement was not renewed at July 1, 2010. The Board of Health received the remaining award for the June 30, 2010 fiscal year end contract. I Local Environmental Protection Program Funds are provided for the development and implementation of the Lincoln, Ellsworth, Ottawa, and Saline . County Sanitary Codes. The current agreement provides that the Board of Health will receive $33,073. I . Tuberculosis Control Program Funds are provided to expand services for people with low income who are not eligible for medicaid, have no health insurance and no other means of payment for diagnosis and/or treatment of tuberculosis. The I current contract agreement provides that the Board of Health will receive $3,000. The Board of Health periodically receives payments in advance or reimbursements to finance expenditures incurred in administering the above programs. The following schedules summarize accounts receivable and I deferred income at December 31, 2011 and 2010: • December 31, 2011 2010 IAccounts Receivable Special Supplemental Food Program for Women, Infants, and Children $ 63,095 $ 83,861 I Public Health Emergency Preparedness 20,291 Tuberculosis Control Program 309 118 Total Accounts Receivable . $ 63,404 $ 104,270 IDeferred Income Public Health Emergency Preparedness $ 5,501 $ - ' Local Environmental Protection Program 12,921 16,537 Total Deferred Income $ 18,422 $ 16,537 I . (9) 6. Home Health Agency The Board of Health provides services to patients which are reimbursed by third party payers, principally Medicare ' and Medicaid. Total fees for services include reimbursements made under the Medicare and Medicaid programs. 7. Defined Benefit Pension Plan ' Plan Description: The Board of Health participates in the Kansas Public Employees Retirement System (KPERS), a cost-sharing multiple-employer defined benefit pension plan as provided by K.S.A. 74-4901, et seq. KPERS provides retirement benefits, life insurance, disability income benefits and death benefits. Kansas law establishes and amends benefit provisions. KPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to KPERS, 611 South Kansas, Suite 100, Topeka, KS 66603-3803 or by calling 1-888-275-5737. Funding Policy: K.S.A. 74-4919 establishes the KPERS member-employer contribution rate at 4%for Tier 1 and 6% for Tier 2 of covered salary. The employer collects and remits member-employee contributions according to the provisions of section 414(h)of the Internal Revenue Code. State law provides that the employer contribution rate be ' determined annually based on the results of an annual actuarial valuation. KPERS is funded on an actuarial reserve basis. State law sets a limitation on annual increases on the contribution rates for KPERS employers. The employer rate established for calendar year 2011 was 7.74%. Included in this rate is the contribution for Group Death and Disability Insurance of 1.00%. From April 1, 2011 through June 30, 2011, there was a moratorium on the collection of I the premium of 1.00% of the Group Death and Disability Insurance rate. The Board of Health employer contributions to KPERS for the years ended December 31, 2011, 2010 and 2009 were$163,217, $161,430 and $128,225, respectively, equal to the required contributions for each year. 8. Lease Agreement Commencing December 13, 2011, the Board of Health updated their copier lease agreement to include additional copiers and printers. The new lease term is 60 months. The lease payment is $2,725 per month. Total rent expense under this lease was $36,088 and $42,829 for the years ending December 31, 2011 and 2010, respectively. Future minimum rental payments required under the lease are as follows: ' December 31, 2012 $ 32,700 December 31, 2013 32,700 ' December 31, 2014 32,700 December 31, 2015 32,700 December 31, 2016 32,700 ' 9. Other Post Employment Benefits • ' As a joint venture between Salina County and the City of Salina, the Board of Health participates in the City's defined benefit healthcare plan that is administered by the City. The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and their spouses. K.S.A. 12-5040 requires all local governmental entities in the state that provide a group health care plan to make participation available to all retires and dependents until the I retiree reaches the age of 65 years. No separate financial report is issued for the Plan. The Board of Health is not required to make contributions to the plan. ' The OPEB cost, actuarial valuations of the ongoing plan and net OPEB obligations for the Board of Health as a sub- group of the plan, are calculated and recorded in the City's Comprehensive Annual Financial Report. 10. Subsequent Events ' The Board of Health's management has evaluated events and transactions occurring after December 31, 2011 through July 24, 2012. The aforementioned date represents the date the financial statements were available to be issued. ' (10) SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas 1 1 1 I 1 1 ' SUPPLEMENTAL INFORMATION 1 1 1 1 1 1 . I $ALINA-SALINE COUNTY BOARD OF HEALTH ' Salina, Kansas Schedule 1 GRANTS FROM THE STATE OF KANSAS I For the Year Ended December 31, 2011 2010 ' Federal Programs Maternal and Child Health Program $ 76,277 $ 74,625 Family Planning Program 41,098 36,170 I . Women, Infants and Children Supplemental Food Program 360,279 325,071 Women, Infants and Children Immunization Collaboration 26,908 27,013 HIV Case Management 53,761 56,669 I Child Care Licensing Program 79,984 71,000 Immunization Action Plan 10,914 10,914 Lead Poisoning Prevention 1,000 1,400 I Public Health Preparedness and Response Program 62,522 197,076 Evidence-Based Public Health Mini-Grant 5,794. - AIDS Health Education/Risk Reduction Program 4,320 Immunization and Vaccines for Children - 4,375 ' Total Federal Programs 718,537 808,633 State Programs I Food Service Licensing Program 4,800 General Health Services- State Formula Grant 38,461 38,914 Local Environmental Protection Program 59,058 58,001 I HIV Counseling and Testing Site Program - Breast Feeding Refund 100 - Healthy Homes and Lead 150 - I Tuberculosis Control Program Total ,846 1,238 l State Programs 100,615 107,324 ' Total Grants $ 819,152 $ 915,957 1 I I I I (11) ' SALINA-SALINE COUNTY BOARD OF HEALTH ' Salina, Kansas Schedule 2 IFEES FOR SERVICES For the Year Ended I December 31, 2011 2010 I Title XVIII $ 325,804 $ 456,949 Title XIX 196,378 250,980 Patients and insurance 149,555 . 130,650 I Home care services 19,840 28,338 Homemaker services 3,987 5,800 Family planning services 30,203 27,420 I General nursing clinics 13,498 14,596 Environmental health fees 36,560 34,028 Day care provider fees 13,654 14,949 I Senior care fees 2,730 2,752 Immunizations 170,313 150,791 ITotal Fees for Services $ 962,522 $ 1,117,253 I I I I I I I I I I (12) SAUNA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas 1 1 1 SINGLE AUDIT SECTION 1 1 1 i 1 1 • I • CLUBINE& INDEPENDENT A D ON COMPLIAONCIE AND OT ER MATT RS BASED FINANCIAL IRETTELE ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN CHARTERED - ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ' Certified Public Accountants I , To the Governing Board Salina-Saline County Board of Health I Salina, Kansas We have audited the financial statements of Salina-Saline County Board of Health, as of Robert I.Clubine, C.P.A. and for the years ended December 31, 2011 and 2010 and have issued our report thereon I David A. Rettele,C.P.A. dated July 24, 2012. We conducted our audit in accordance with auditing standards Jay D. Langley,C.P.A. generally accepted in the United States of America,the standards applicable to Jon K. Bell,C.P.A. Government Auditing Standards, issued by the Comptroller General of the United States Leslie M.Corbett,C.P.A. and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and ' Stacy:l. Osner,C.P.A. Reports, Department of the Administration of the State of Kansas. Marci K. Fox, C.P.A. Internal Control Over Financial Reporting I Linda A. Suelter,C.P.A. In planning and performing our audit, we considered Salina-Saline County Board of Health's internal control over financial reporting as a basis for designing our auditing I procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Salina-Saline County Board of Health's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Salina-Saline County Board of Health's internal I control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned I functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements I will not be prevented or detected and corrected on a timely basis. . Our consideration of internal control over financial reporting was for the limited purpose described.in the first paragraph of this section and was not designed to identify all _ 218 South Santa Fe 1 P.O. Box 2267 deficiencies in internal Control that might be significant deficiencies or material Salina, Kansas weaknesses. We did not identify any deficiencies in internal control over financial reporting 67402-2267 . that we consider to be material weaknesses, as defined above. • ' Compliance and Other Matters Salina 785/825-5479 i As part of obtaining reasonable assurance about whether Salina-Saline County Board of I Salina Fax Health's financial statements are free of material misstatement, we perf ormed tests of its 785/825-2446 compliance with certain provisions of laws, regulations, contracts and grant agreements, Ellsworth noncompliance with which could have a direct and material effect on the determination of 785/472-3915 financial statement amounts. However, providing an opinion on compliance with those ' Ellsworth Fax provisions was not an objective of our audit and, accordingly, we do not express such an 785/472-5478 opinion. The results of our tests disclosed no instances of noncompliance that are required • to be reported under Government Auditing Standards. I I I (13) . This report is intended for the information and use of the governing board, management, others within the organization I and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. ' Respectfully submitted,. ' CLUBINE AND RETTELE, CHARTERED ' July 24, 2012 • • 1 1 1 i (14) INDEPENDENT AUDITORS' J COMPLIANCE REQUIREMENTS I E&RETTEL APPLICABLE TO EACH MAJOR PROGRAM AND ON CON ROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 CHARTERED ' Certified Public Accountants . To the Governing Board Salina-Saline County Board of Health Salina, Kansas I r Compliance • We have audited the compliance of the Salina-Saline County Board of Health with the I types of compliance requirements described in the U.S. Office of Management and Budget (OMB) CircularA-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2011. Salina-Saline County Board of I Robert I.clubine, C.P.A. Health's major federal programs are identified in the summary of auditor's results section of David A. Rettele,C.P.A. the accompanying schedule of f ndings and questioned costs. Compliance with the Jay D. Langley,C.P.A. requirements of laws, regulations, contracts and grants applicable to each of its major Jon C.P.A. C.P.A. Leslie M.C orbett, federal programs is the responsibility of Salina-Saline County Board of Health's. L Corbett, I Stacy.1.Csner,C.P.A. management. Our responsibility is to express an opinion on Salina-Saline County Board of Health's compliance based on our audit. Marci K. Fox,C.P.A. We conducted our audit of compliance in accordance with auditing standards generally ' Linda A.svelter, C.P.A. accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non- I Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, I evidence about Salina-Saline County Board of Health's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Salina-Saline County Board of Health's Icompliance with those requirements. . In our opinion, Salina-Saline County Board of Health complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal Iprograms for the year ended December 31, 2011. Internal Control Over Compliance I 218 South Santa Fe P.O. Box 2267 The management of Salina-Saline County Board of Health is responsible for establishing Salina, Kansas and maintaining effective internal control over compliance with requirements of laws, 67402-2267 regulations, contracts and grants applicable to federal programs. In planning and I performing our audit, we considered Salina-Saline County Board of Health's internal control over compliance with requirements that could have a direct and material effect on a major Salina federal program in order to-determine-our auditing procedures for the purpose of 785/825-5479 expressing our opinion on compliance and to test and report on internal control over I Salina Fax compliance in accordance with OMB Circular A-133, but not for the purpose of expressing 785/825-2446 an opinion on the effectiveness of internal control over compliance. Accordingly, we do not Ellsworth express an opinion on the effectiveness of Salina-Saline County Board of Health's internal 785/472-3915 control over compliance. ' Ellsworth Fax 785/472-5478 A deficiency in internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their ' assigned functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material I noncompliance with a type of compliance requirement of a federal program will not be prevented or detected and corrected on a timely basis. I (15) Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this I section and was not designed to identify all deficiencies in internal control over that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we • consider to be material weaknesses, as defined above. . ' This report is intended for the information and use of the governing board, management, others within the organization and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. . IRespectfully submitted, I gA., ....(v.,,..„, CLUBINE AND RETTELE, CHARTERED I July 24, 2012 • I • I. • I I I I I • I • I I I (16) ' SALINA-SALINE COUNTY BOARD OF HEALTH ISalina, Kansas SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS I For the Year Ended December 31, 2011 Federal CFDA Federal IFederal Grantor/Pass-Through Grantor/Program Title Number Expenditures U.S. Department of Agriculture IPassed Through State of Kansas Department of Health and Environment . Special Supplemental Nutrition Program for Women, ' Infants and Children 10.557 $ 360,279 U.S. Department of Health and Human Services . Passed Through State of Kansas Department of Health and Environment • IMaternal and Child Health Services 93.994 74,627 Preventative Health and Health Services 93.991 1,650 IFamily Planning - Services 93.217 41,098 Immunization Action Plan 93.268 10,914 IWomen, Infants and Children Immunization Collaboration • 93.268 26,908 Acquired Immunodeficiency Syndrome(AIDS)Activity I HIV Prevention Program 93.940 423 53, HIV Case Management 93.917 53,338 I Child Welfare Services Child Care Institutions Licensing 93.596 79,984 I Evidence-Based Public Health Mini Grant Understanding and Enhancing Dissementation Among U.S. Chronic Disease Practitioners 93.283 5,794 I Bioterrorism Public Health Preparedness and Response 93.069 62,522 ' Environmental Protection Agency IPassed Through State of Kansas Department of Health and Environment Lead Poisoning Prevention 66.707 1,000 ITotal $ 718,537 ' ' The accompanying notes are an integral part of these financial statements. I (17) • 1 SAUNA-SALINE COUNTY BOARD OF HEALTH ' Salina, Kansas NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2011 1. Basis of Presentation ' The accompanying schedule of expenditures of federal awards includes federal grant activity of Salina-Saline County Board of Health and is presented on the modified accrual basis of accounting. The information in this ' schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. i 1 1 1 1 1 1 1 1 1 1 ' (18) • ISALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas ISCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2011 . ISummary of Auditor's Results • I Financial Statements • Type of auditor's report issued: Qualified • ' Internal control over financial reporting: Material weakness(es) identified No I Significant deficiencies identified that are not considered to be material weaknesses? None reported Noncompliance material to financial statements noted? No ' Federal Awards ' Internal control over major programs: Material weakness(es) identified? No I Significant deficiencies identified that are not considered to be material weakness(es) None reported IType of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? No I Identification of Major programs: ' 10.557 Special Supplemental Food Program for Women, Infants and Children I Dollar threshold used to distinguish between type A and type B programs: $ 300,000 Auditee qualified as low-risk auditee: No I Section II - Financial Statement Findings: . I None I Section III - Federal Award Findings and Questioned Costs: • None • I I I (19) SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas CORRECTIVE ACTION PLAN ' For the Year Ended December 31, 2011 None required. 1 1 1 1 • 1 1 1 1 1 (20) SALINA-SALINE COUNTY BOARD OF HEALTH Salina, Kansas SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended December 31, 2011 IThere are no prior audit findings. • 1 1 1 1 1 • 1 1 1 1 ' (21)