Audit - 2011/2012 SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31, 2012 and 2011
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALINA, KANSAS
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 STATEMENTS OF NET POSITION 4
Exhibit II STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION - BUDGET AND ACTUAL 5
Exhibit III STATEMENTS OF CASH FLOWS 6
NOTES TO FINANCIAL STATEMENTS 7-10
SUPPLEMENTAL INFORMATION
Schedule 1 GRANTS FROM THE STATE OF KANSAS 11
Schedule 2 FEES FOR SERVICES 12
SINGLE AUDIT SECTION
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
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 15-16
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 17
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 18
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 19
CORRECTIVE ACTION PLAN 20
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 21
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL SECTION
C U INE
RE E&
TIE INDEPENDENT AUDITORS' REPORT
I- 1 .l 1LL
C To the Governing Board
Salina-Saline County Board of Health
Certified Public Accountants Salina, Kansas
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, 2012 and 2011, and
the related notes to the financial statements, which collectively comprise the basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
Robert I. Clubine,CPA statements in accordance with accountin g principles generally accepted in the United David A. Rettele,CPA
Jay D. Langley,CPA,COMA States of America; this includes the design, implementation, and maintenance of internal
Jon K. Bell,CPA control relevant to the preparation and fair presentation of the financial statements that are
Leslie M. Corbett, CPA free from material misstatement, whether due to fraud or error.
Stacy J.Osner,CPA
Auditors' Responsibility
Marci K. Fox,CPA
Linda A.Suelter,CPA Our responsibility is to express opinions on these financial statements based on our audit.
Valerie K. Linenberger,CPA We conducted our audit in accordance with auditing standards generally accepted in the
Johnna R.Vosseller,CPA 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 the Kansas Municipal Audit and Accounting Guide, prescribed by the Director of
Accounts and Reports, Department of Administration of the State of Kansas. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
218 South Santa Fe We believe that the audit evidence we have obtained is sufficient and appropriate to
P.O. Box 2267 provide a basis for our audit opinions.
Salina,Kansas
67402-2267
Basis for Qualified Opinion
As described in Note 1. B.(2), management has not included the capitalization and
Salina depreciation of property and equipment. Accounting principles generally accepted in the
785/825-5479 United States of America require that assets with useful lives of one year or more be
785 Fax capitalized and depreciated. The amount that should be capitalized and depreciated is not
785/825-2446 P P P� p
reasonably determined.
Ellsworth
785/472-3915 Qualified Opinion
Ellsworth Fax
785/472-5478 In our opinion, except for the effects of the matter described in the"Basis for Qualified
Opinion" 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 December
31, 2012 and 2011, 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.
(1)
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the 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 statements, is required by the Governmental Accounting Standards Board, who considers it
to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic or historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries
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 information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
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
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 not a required part of the basic financial statements of 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 21, 2013, 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 laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering Salina-Saline County Board of Health's internal control over financial reporting and compliance.
CLUBINE AND RETTELE, CHARTERED
G1,6t4�c 44,d 4 G(
August 21, 2013
(2)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
MANAGEMENT'S DISCUSSION AND ANALYSIS
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, 2012. Please read it in conjunction with the Board's financial statements which begin on page 4;
Financial Highlights_
1. Due to structural concerns at the current.location the Health Department, had to move out of the building located
at 125 W. Elm. Unbudgeted moving expenses of approximately $90,000 were incurred in the move to 148 N.
Oakdale and 625 E. North St.
Condensed Financial Information
2012 201.1.
Total Assets $ 2,285,882 $ 2,336,510
Total Liabilities (638,458) (620,452)
Deferred Inflows of Resources (20,007) (18,422)
Total Net Position ,$ 1,627,417 $ 1,697,636
Revenues
Appropriations $ 1,790,225 $ 1,790,225
Grants 772,318 819,152
Fees for services 986,713 962,522
Interest income 1,534 1,196
Miscellaneous 336,837 282,960
Total Revenues 3,887,627 3,856,055
Expenses
Personal services 2,875,350 2,873,506
Contractual services 423,569 474,866
Supplies 265,411 211,654
Admistrative 393,516 358.,485
Total Expenses 3,957,846 3,918,511
Excess (Deficit) of Revenue over Expenses (70,219) (62,456)
Beginning Net Position 1,697,636 1,760,092
Ending Net Position $ 1,627,417 $ 1.,697,636
Future.
1. Complete the community health assessment.
2. Develop a quality improvement plan.
3. Next step in finalizing future building issues.
(3)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit:I
STATEMENTS OF NET POSITION
D:ecerribet'31,
201.2. 2011
Assets
Cash $ 1,929,509 $ 2,019,936
Accounts receivable
State Of Kansas (Note 5) 105;61.6 63;4.0.4
Medicare and Medicaid 175';535 150,54.5
Other care services 7.5222 102,625
Total.Assets; $ 2,285,882 $ 2,336,510
Liabilities
Vouchers payable $ 22,650 <$. 26;561
Accrued salaries 43,169 42;451
Accrued liability for compensated absences 296,425 270,242
Animal Shelter Reward fund payable 27.6,2&4 28,1,.1,98
Total Liabilities 638,458. 620,452
Deferred Inflows of Resources (Note 5) 20;0Q7 . __ 18,422
:Net;Position.
Unrestricted' _ 1;627;41'7 .1,69:7,636.
Total Liabilities, Deferred Inflows of Resources and Net Position $ 2,285,882 $ 2,336,51:0
The accompanying notes are an integral part
of these financial statements.
(4)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit II
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION - BUDGET AND ACTUAL
For the Year Ended December 31,
2012 2011
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 772,318 769,320 819,152 813,022
Fees for services 986,713 929,705 962,522 966,871
Interest income 1,534 - '1,196 -
Miscellaneous revenues 336,837 343;600 282,960 233,500
Total Revenues 3,887,627 3,832,850 3,856,055 3,803,6.18
Expenses
Personal Services
Salaries 2,239,404 2,233,294 2,248,107 2,228,295
Social security 157,443 170,847 157,686 170,465
Retirement 173,451 169,077 163,217 156,785
Health insurance 302,840 347,228 299,794 325,416
Unemployment insurance 2,212 4,690 4,702 8,022
Contractual Services
Professional services 255,895 275,414 312,056 255,635
Professional meetings 19,935 15,000 12,815 15,000
Memberships and dues 3,927 4,000 4,011 4,150
Building and grounds 26,305 16,000 41,181 61,905
Mileage 48,041 62,500 48,482 60,000
Shelter refund 69,466 60,000 56,321 50,000
Sup ip es
Clinical and medical supplies 139,053 130,000 123,718 138,000
Animal supplies and donation fund expense 111,342 15,000 85,853 18,828
Environmental supplies 15,016 1,500 2,083 3,750
Administrative
Telephone 22,734 30,000 19,415 26,000
Office supplies 53,387 29,000 55,931 30,072
Postage and express 15,785 13,000 14,928 14,000
Service contracts and equipment lease 66,697 63,000 65,253 58,000
Printing 687 500 - -.
Books and periodicals 610 500 -
Auditing 8,200 8,300 8,200 8,000
Accounting 700 700 850 700
Insurance 53,331 83,000 84,187 88,395
Equipment maintenance and repair 1,000 509 1,200
Gasoline and oil 13,313 12,000 9,387 12,000
Utilities and water 51,515 50,000 47,974 50,000
Custodial services 5,161 8,000 4,015 6,000
Health education 4,782 20,000 41,000 13,000
Moving expenses 88,795 - -
Miscellaneous
Capital Equipment 7,819 10,000 6,836
Total Expenses _-_ 3,957,846 . 3,833,550 3,918,511, 3,803,618
Excess (Deficit)of Revenues over Expenses (70,219) $ (700) (62,456) $
- Net Position, January 1 1;697;636 1,760,092
Net Position, December 31 $ 1,627,417 $ 1,697,636
The accompanying notes are an integral part of these financial statements.
(5)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit III
STATEMENTS OF CASH FLOWS
For the Year Ended
December 31,
2012 2011
Cash Flows From Operating Activities
Saline County, Kansas $ 772,124 $ 772,124
City of Salina, Kansas 1,018,101 1,018,101
Grants 731,691 861,903
Fees 989,126 1,032,136
Miscellaneous 336,837 282,960
Interest income 1,534 1,196
Cash paid to suppliers and others (1,727,337) (1,615,170)
Cash paid to employees for services (2,212,503) (2,239,164)
Net Cash Provided (Used) by Operating Activities _ (90,427) 114,086
Increase (Decrease) in Cash (90,427) 114,086
Cash at Beginning of Year 2„019,936 1,905,850
Cash at End of Year $ 1,929,509 $ 2,019,936
RECONCILIATION OF EXCESS (DEFICIT) OF REVENUES OVER EXPENSES
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Excess (Deficit) of Revenues over Expenses - Exhibit II $ (70,219) $ (62,456)
Adjustments to reconcile excess (deficit) of revenues over
expenses to net cash provided by operating activities
Decrease (Increase) in accounts receivable (39,799) 110,480
Decrease in vouchers payable (3,911) (15,069)
Increase(Decrease) in accrued salaries 718 (475)
Increase in accrued compensated absences 26,183 9,418
Increase (Decrease) in Animal Shelter Reward fund payable -(4,984) 70,303
Increase in deferred income 11585
Total Adjustments _ (20,208) 176,542
Net Cash Provided (Used) by Operating Activities $ (90,427) $ 114,086
The accompanying notes are an integral part
of these financial statements.
(6)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
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. Effective January 1, 2012, the Board of Health implemented the
provisions of GASB No. 62— Codification of Accounting and Financial Reporting Guidance Contained in
Pre-November 30, 1989 GASB and AICPA Pronouncements. Implementation of this statement required
modification to the disclosure in the Summary of Significant Accounting Policies.
Effective January 1, 2012, the Board of Health implemented GASB No. 63 —Financial Reporting of
Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This resulted in the
replacement of the Board's Balance Sheet with a Statement of Net Position. In addition, previously
reported deferred income items are identified as Deferred Inflows of Resources. Deferred Inflows of
Resources arise when grant monies are received prior to the incurrence of qualifying expenditures.
2) Accounting principles generally accepted in the United States of America require that property and
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
The carrying amount of the Board of Health's bank deposits were $1,917,296 and $2,014,089, and the bank
balances were $2,005,036 and $2,011,627 at December 31, 2012 and 2011, 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:
2012 2011
Saline County, Kansas
Regular tax appropriation $ 772,124 $ 772,124
City of Salina, Kansas
Regular tax appropriation $ . 1.,01.8,101 $ _ 1,018,101.
5. Grants from the State of Kansas
Agreements were in effect during 2012 and 2011 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, 2013.
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 $37,528.
Special Supplemental Food Program.for Women, lnf ants, 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 $314,974, plus any reallocated federal funds that may
become available. This program is on an October 1 through September 30 fiscal year.
Ryan White Treatment Modernization Act 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.
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$90,293 payable in quarterly
amounts based on the number of licenses issued.
(8)
Immunization Action Plan
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
$47,718 which includes $34,261 specifically for the Women, Infant Children (WIC) Immunization
Collaboration.
Lead Poisoning Prevention Program
Funds are provided for elevated blood level inspection per protocols to identify lead hazards of children.
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
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 $80,028.
State Programs
General Health Services-State Formula Grant
Matching funds are provided to help insure that adequate health services are available to the Saline County
Community. The current agreement provides that the Board of Health will receive $38,705 payable in
quarterly installments.
Local Environmental Protection Program
Funds are provided for the development and implementation of the Lincoln, Ellsworth, Ottawa, and Saline
County Sanitary Codes. The agreement was not renewed at July 1, 2012.
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
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
deferred inflows of resources at December 31, 2012 and 2011: -
Accounts Receivable
Special Supplemental Food Program for
Women, Infants, and Children $ 81,948 $ 63,095
Public Health Emergency Preparedness 21,144
Family Planning 2,000 -
Tuberculosis Control Program 524 309.
Total Accounts Receivable $__ _ 105,616
Deferred Inflows of Resources
Public Health Emergency Preparedness $ 20,007 $ 5,501
Local Environmental Protection Program - 12,921-
Total Deferred Inflows of Resources $ 20,007 $ 18,422
(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 members hired
before July 1, 2009 (Tier 1) and 6%for members hired on or after July 1, 2009 (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
2012 was 8.34%. Included in this rate is the contribution for Group Death and Disability Insurance of 1.00%. From
April 1, 2012 through June 30, 2012, there was a moratorium on the collection of 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, 2012, 2011 and 2010 were$173,451, $163,217 and $161,430, 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 $36,088 for the years ending December 31, 2012 and 2011, respectively. Future
minimum rental payments required under the lease are as follows:
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
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, 2012
through August 21, 2013. The aforementioned date represents the date the financial statements were available to be
issued.
The Saline County Commission at their meeting on August 20, 2013, indicated that the Board of Health will become a .
department of Saline County effective January 1, 2014. The intention is that the Board of Health will move back to
their previous location, once necessary repairs have been completed.
(10)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUPPLEMENTAL INFORMATION
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Schedule 1
GRANTS FROM THE STATE OF KANSAS
For the Year Ended
December 31,
2012 _201.1 _.
Federal Programs
Maternal and Child Health Program $ 76,738 $ 76,277
Family Planning Program 42,895 41,098
Women, Infants and Children Supplemental Food Program 329,632 • 360,279
Women, Infants and Children Immunization Collaboration 30,584 26,908
Ryan White Treatment Modernization Act Program 53,338 53,761
Child Care Licensing Program 89,630 79,984
Immunization Action Plan 12,185 10,914
Lead Poisoning Prevention 2,760 1,000
Public Health Preparedness and Response Program 79,662 62,522
Evidence-Based Public Health Mini-Grant _ 5,794•
Total Federal Programs 717;424 718;537.
State Programs
General Health Services- State Formula Grant ;38;4'52 38;46:1,
Local Environmental Protection Program 1'2,927
50,58
Breast Feeding Refund 1A0
Healthy Homes and Lead 150.
Miscellanous grant 325 -
Tuberculosis Control Program 3,196' _ _ 2,846,
Total State Programs 54;894 100;61'5..
ToCal'G�aiifs; $; 1772';3.18:. ,$, __ 819152
(11)
SAUNA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Schedule 2
FEES FOR SERVICES
For the Year Ended
December 31,
2012 _ 2011
Title XVIII $ 336,348 $ 325,804
Title XIX 202,405 196,378
Patients and insurance 113,880 149,555
Home care services 25,360 19,840
Homemaker services 3,531 3,987
Family planning services 33,520 30,203
General nursing clinics 15,839 13,498
Environmental health fees 85,040 36,560
Day care provider fees 11,652 13,654
Senior care fees 4,125 2,730
Immunizations 155,013 170,313
Total Fees for Services 6 .9.86,713 $ 962,522
•
(12)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SINGLE AUDIT SECTION
•
CLUBINE INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
RETTELE& REPORTING ON AN AUDIIT OF FINANCIAL PE FORMED IN
CHARTERED ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Certified Public Accountants
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas
We have audited, in accordance with the auditing standards generally accepted in the
Robert I. Clubine,CPA United States of America and the standards applicable to financial audits contained in
David A. Rettele,CPA Government Auditing Standards issued by the Comptroller General of the United States,
Jay D. Langley,CPA,CGMA and the Kansas Municipal Audit and Accounting Guide, prescribed by the Director of
Jon K.Bell,CPA Accounts and Reports, Department of Administration of the State of Kansas, the financial
Leslie M.Corbett,CPA statements of the business type activities of Salina-Saline County Board of Health, as of
Stacy J.Osner,CPA and for the years ended December 31, 2012 and 2011 and the related notes to the
financial statements which collectively comprise the Salina-Saline County Board of Health's
Marci K.Fox,CPA basic financial statements and have issued our report thereon dated August 21, 2013.
Linda A.Suelter,CPA
Valerie K. Linenberger,CPA
C
Johnna R.Vosseller,CPA Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Salina-
Saline County Board of Health's internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose
of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of Salina-Saline County Board of Health's
internal control. Accordingly, we do not express an opinion on the effectiveness of Salina-
Saline County Board of Health's internal control.
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
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
will not be prevented or detected and corrected on a timely basis. A significant deficiency
is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance.
218 South Santa Fe Our consideration of internal control over financial reporting was for the limited purpose
P.O. Box 2267 described in the first paragraph of this section and was not designed to identify all
Salina, Kansas
67402-2267 deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given those limitations, we did not identify any deficiencies in internal control
over financial reporting that we consider to be material weaknesses. However, material
Salina weaknesses may exist that have not been identified.
785/825-5479
Salina Fax Compliance and Other Matters
785/825-2446
Ellsworth As part of obtaining reasonable assurance about whether Salina-Saline County Board of
• 785/472-3915 Health's financial statements are free of material misstatement, we performed tests of its
Ellsworth Fax compliance with certain provisions of laws, regulations, contracts and grant agreements,
785/472-5478 noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance that are required
to be reported under Government Auditing Standards.
• (13)
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other
purpose..
CLUBINE AND RETTELE, CHARTERED
• August 21, 2013
(14)
CLUE I E INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR
EETTELE PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
�Li l 1 L REQUIRED BY OMB CIRCULAR A-133
CHARTERED
Certified Public Accountant To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas
Report on Compliance for Each Major Federal Program
We have audited Salina-Saline County Board of Health's compliance requirements
described in OMB Circular A-133 Compliance Supplement that could have a direct and
material effect on each of Salina-Saline County Board of Health's major federal programs
for the year ended December 31, 2012. Salina-Saline County Board of Health's major
Robert I.Clubine,CPA federal programs are identified in the summary of auditor's results section of the
David A. Rettele,CPA accompanying schedule of findings and questioned costs.
Jay D. Langley,CPA,CGMA
Jon K. Bell,CPA
Management's Responsibility
Leslie M.Corbett,CPA g p y
Stacy J.Osner,CPA
Management is responsible for compliance with the requirements of laws, regulations,
Marci K.Fox,CPA contracts, and grants applicable to its federal programs.
Linda A. Suelter,CPA
Valerie K.Linenberger,CPA Auditors' Responsibility
Johnna R.Vosseller, CPA
Our responsibility is to express an opinion on compliance for each of Salina-Saline County
Board of Health's major federal programs based on our audit of the types of compliance
requirements referred to above. We conducted our audit of compliance in accordance with
auditing standards generally 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-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, 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 on compliance for
each major federal program. However, our audit does not provide a legal determination on
Salina-Saline County Board of Health's compliance with those requirements.
218 South Santa Fe Opinion on Each Major Federal Program
P.O. Box 2267
Salina,Kansas In our opinion, Salina-Saline County Board of Health complied, in all material respects, with
67402-2267 the types of compliance requirements referred to above that could have a direct and
material effect on each of its major federal programs for the year ended December 31,
2012.
: Salina
785/825-5479 Report on Internal Control Over Compliance
Salina Fax
785/825-2446 Management of Salina-Saline County Board of Health is responsible for establishing and
Ellsworth maintaining effective internal control over compliance with requirements referred to above.
785/472-3915 In planning and performing our audit of compliance, we considered Salina-Saline County
Ellsworth Fax Board of Health's internal control over compliance with the types of requirements that could
785/472-5478 have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an
opinion on compliance for each major federal program and to test and report on internal
control over compliance in accordance with OMB Circular A-133, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of Salina-Saline County
Board of Health's internal control over compliance.
(15)
A deficiency in internal control over compliance exists when the design or operation of a control over compliance 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 noncompliance with a type of compliance
requirement of a federal program will not be prevented or detected and corrected on a timely basis. A significant
deficiency in internal control over compliance is a deficiency or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control over compliance that might be material
weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly,
this report is not suitable for any other purpose.
CLUBINE AND RETTELE, CHARTERED
U°uyttc Cam•/ �Pbf�,e(, atM *A?v(
August 21, 2013
(16)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2012
Federal
CFDA Federal
Federal Grantor/Pass-Through Grantor/Program Title Number Expenditures.
U.S. Department of Agriculture
Passed Through State of Kansas Department of Health and Environment
Special Supplemental Nutrition Program for Women,
Infants and Children 10.557 $ 329,632
U.S. Department of Health and Human Services
Passed Through State of Kansas Department of Health and Environment
Maternal and Child Health Services 93.994 76,738
Family Planning - Services 93.217 42,895
Immunization Action Plan 93.268 12,185
Women, Infants and Children Immunization Collaboration 93.268 30,584
Acquired Immunodeficiency Syndrome (AIDS)Activity
Ryan White Treatment Modernization Act Program 93.917 53,338
Child Welfare Services
Child Care Institutions Licensing 93.596 89,630
Bioterrorism
Public Health Preparedness and Response 93.069 79,662
Environmental Protection Agency
Passed Through State of Kansas Department of Health and Environment
Lead Poisoning Prevention 66.707 2,760
Total $ 717,424
The accompanying notes are an integral part
of this schedule of expenditures of federal awards
(17)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2012
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.
(18)'
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2012
Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Qualified
Internal control over financial reporting:
Material weakness(es) identified No
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
Significant deficiencies identified that are
not considered to be material weakness(es) None reported
Type 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
Identification of Major programs:
10.557 Special Supplemental Food Program
for Women, Infants and Children
93.596 Child Care Institutions Licensing
Dollar threshold used to distinguish between type A
and type B programs: $ 300,000
Auditee qualified as low-risk auditee: No
Financial Statement Findings:
None
Federal Award Findings and Questioned Costs:
None
(19)
SAUNA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
CORRECTIVE ACTION PLAN
For the Year Ended December 31, 2012
None required.
(20)
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended December 31, 2012
There are no prior audit findings.
(21)