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SALINE COUNTY-CITY BUILDING AUTHORITY
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( � FINANCIAL STATEMENT
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INDEPENDENT AUDITORS' REPORT
December 31,2015
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SALINE COUNTY-CITY BUILDING AUTHORITY
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FINANCIAL STATEMENT
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INDEPENDENT AUDITORS' REPORT
December 31,2015
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WOODS&DURHAM,CHARTERED
L Certified Public Accountants
Salina, Kansas
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SALINE COUNTY-CITY BUILDING AUTHORITY
FINANCIAL STATEMENT
I_._ For the Year Ended December 31, 2015
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TABLE OF CONTENTS
PAGE
I • INDEPENDENT AUDITORS'REPORT 1-2
FINANCIAL STATEMENT
SUMMARY OF RECEIPTS, EXPENDITURES AND
UNENCUMBERED CASH REGULATORY BASIS 3
NOTES TO FINANCIAL STATEMENT 4-8
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SUPPLEMENTAL INFORMATION PAGE
GENERAL FUND SCHEDULE OF RECEIPTS AND EXPENDITURES
- ACTUAL AND BUDGET REGULATORY BASIS Schedule 1 9
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INDEPENDENT AUDITORS' REPORT
•' To the Board of Directors .
' Saline County-City Building Authority
' Salina, Kansas-67401 • -
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We have audited the accompanying fund summary statement of regulatory basis receipts, expenditures,
and unencumbered cash balances of Saline County-City Build ing Authority, Salina, Kansas, as of and for
the year ended December 31, 2015,and the related notes to the financial statement.
Management's responsibility for the Financial Statement S ,
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Management is responsible for the preparation and fair presentation of this financial, statement in
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accordance with the Kansas Municipal Audit and Accounting Guide as described in Note I; this includes
. determining that the regulatory basis of accounting is an acceptable,basis for the preparation of the
financial statement in.•the ,circumstances. Management is-, also responsible for the design,
Iimplernentatiornand maintenance of internal control relevant to the preparation and fair presentation
of the financial statement that is free from material misstatement,whether due-to fraud or error. .
Auditor's Responsibility - -
Our responsibility is to express an opinion on the financial statement based on our audit. We conducted.
our audit in accordance with auditing standards generally accepted,in the United States of America, and
' ' the Kansas Municipal Audit and Accounting Guide. Those standards require•we plan and perform the
audit to obtain reasonable assurance about whether the financial statement is-free of material ,
I misstatement.
ii An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statement. The procedures selected depend on auditor's judgment, including the
assessment of the risks of material misstatement of the financial statement, whether due to fraud or '
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
ipreparation and fair presentation of the financial statement in order to design audit procedures that are
appropriate in the circumstances, but not-for the purpose of expressing an opinion on the effectiveness
lit of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
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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
I financial statement. ,
IWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
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• ' our audit opinion. .
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I— for Adverse Opinion on U.S. Generally Accepted Accounting Principles
I- Basis
As described in Note I of the financial statement, the financial statement is prepared by the Saline
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ounty-City Building.Authority on the basis of the financial reporting provisions of the Kansas Municipal •
I Audit and Accounting Guide, which is a basis of accounting other than accounting principles generally •
Laccepted in the-United States of America.
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1619 E.Iron Avenue • P.O. Box 1516 •- Salina,Kansas 67402-1516 • Phone 785-825-5494
Fax 785-825-4450 • www.woodsanddurham.com
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The effects on the financial statement of the variances between the regulatory basis of accounting
described in Note I and accounting principles generally accepted in the United States of America,
although not reasonably determinable, are presumed to be material.
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1_, Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on
U.S. Generally Accepted Accounting Principles" paragraph, the financial statement referred to above -
1 does not present fairly, in conformity with accounting principles generally accepted in the United States
• of America,the financial position of the Saline County-City Building Authority as of December 31, 2015,
• or changes in financial position and cash flows thereof for the year then ended.
' Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statement referred to above presents fairly, in all material respects, the
'aggregate cash and unencumbered cash balance of the Saline County-City Building Authority as of
IDecember 31, 2015, and the aggregate receipts and expenditures for the year then ended in accordance
with the financial reporting provisions of the Kansas Municipal Audit and'Accounting Guide described in
Note I.
Report on Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the fund summary statement of
Iregulatory basis receipts, expenditures,'and unencumbered cash balances (basic financial statement) as
a whole. The individual fund schedule of regulatory basis receipts and expenditures-actual and budget •
(Schedule 1 as listed in'the'•table of contents) is presented for analysis and are not a required part of the
basic financial statement, however are required to be presented under the provisions of the Kansas
Municipal Audit and Accounting Guide.' 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
basic financial statement. The information has been subjected to the auditing procedures applied in the
audit of the basic financial statement and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
1 the basic financial statement or to the,basic financial statement itself, 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 basic financial
1 statement as a whole, on the basis of accounting described in Note I.
1 Woods&Durhiam,.Chtd
• • WOODS& DURHAM, CHTD.
July 5, 2016 Certified Public Accountants
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SALINE COUNTY-CITY BUILDING AUTHORITY
Summary of Receipts, Expenditures and Unencumbered Cash
Regulatory Basis
For the Year Ended December 31, 2015
Add
Outstanding
Beginning Ending Encumbrances
Unencumbered Cash Unencumbered and Accounts Ending Cash
Funds Cash Balance Receipts Expenditures Cash Balance Payable Balance
General Fund $ 594,514 $ 1,229,442 $ 916,214 $ 907,742 $ 52,975 $ 960,717
Composition of Ending Cash Balances:
Checking account $ 960,717
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The accompanying notes are an integral part of this financial statement.
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SALINE COUNTY-CITY BUILDING AUTHORITY
NOTES TO FINANCIAL STATEMENT
December 31, 2015
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Saline County-City Building Authority (Authority) was formed March 22, 1965, under the Interlocal
Cooperation Act of Kansas (KSA 12-2907) by Saline County (County), the City of Salina (City), and the
Board of Education U.S.D. #305 (School District). The Authority was created to provide for the
acquisition of land and the construction, equipping, operating, and maintenance of a building and
parking area to house the county offices and courts, the city offices and courts, and the school district
offices. On January 16, 1996, the Interlocal Agreement was restated to relieve the School District from
any ongoing responsibility or expense relating to the Authority. The School District retained its
beneficial ownership interest in the Building Authority.
The accounting policies of the Authority conform to the statutory basis of accounting, as regulated by
the State of Kansas, which demonstrates compliance with the cash basis and budget laws of Kansas. The
following is a summary of the more significant policies.
A. Reporting Entity
The governing board of the Authority is composed of seven members, six of whom are appointed from
the governing boards of the participating municipalities, and one of who is selected at large by the six
appointed members. The makeup of the appointed members is three from Saline County, two from the
City of Salina, and one from the District Court. The accompanying financial statement includes all funds,
which are controlled by or are dependent on the Authority.
The Authority is considered to be a joint venture because it is a separate legal entity that is jointly
controlled by the County and City. The County and the City both have an ongoing financial responsibility
for the Authority. The Authority's Interlocal Cooperation Agreement grants a beneficial interest to the
County, City, and the School District in proportion to the respective share of the original acquisition
costs of the building.
B. Fund Accounting
A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts
recording cash, receipts, expenditures and unencumbered cash balance. The funds segregate specific
activities or certain objectives in accordance with special regulations, restrictions, or limitations.
The following types of funds were utilized in recording the financial activities of the Authority:
General Fund —to account for all unrestricted resources except those required to be accounted for in
another fund.
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SALINE COUNTY-CITY BUILDING AUTHORITY
NOTES TO FINANCIAL STATEMENT
December 31, 2015
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd.)
C. Basis of Accounting
The statutory basis of accounting, as used in the preparation of this statutory financial statement, is
designed to demonstrate compliance with the cash basis and budget laws of the State of Kansas. Cash
receipts are recognized when the cash balance of a fund is increased. Expenditures include
disbursements, accounts payable, and encumbrances, with disbursements being adjusted for prior
1 year's accounts payable and encumbrances. Encumbrances are commitments related to unperformed
(executory) contracts for goods and services, and are evidenced by a purchase order or written contract.
For an interfund transaction, a cash receipt is recorded in the fund receiving cash from another fund,
and an expenditure is charged in the fund from which the transfer was made.
The Authority has approved a resolution that is in compliance with KSA 75-1120a(c), waiving the
requirement for application of generally accepted accounting principles and allowing the Commission to
use the statutory basis of accounting.
D. Departure from Accounting Principles Generally Accepted In the United States of America
The basis of accounting described above results in a financial statement presentation, which shows cash
receipts, expenditures, cash, unencumbered cash balances, and expenditures compared to budget.
Balance sheets that would have shown noncash assets such as receivables, inventories, and prepaid
expense; liabilities such as deferred revenue, outstanding debt, and interest payable; and reservations
of the fund balance are not presented. Under generally accepted accounting principles, encumbrances
are only recognized as a reservation of fund balance; encumbrances outstanding at year-end do not
constitute expenditures or liabilities. Consequently, the expenditures as reported do not present the
cost of goods and services received during the fiscal year in accordance with generally accepted
raccounting principles. Capital assets that account for the land, buildings, and equipment owned by the
® municipality are not presented in the financial statement.
E. Budgetary Information
The Authority does not have tax levying powers and is not required to publish a budget. A budget is
adopted annually by the Board of Directors to determine the amount of appropriations to request from
Saline County.
F. Cash and Investments
Cash includes amounts in time deposits and certificates of deposit. Kansas Statute 12-1675 authorizes
the Authority to invest in time deposits, certificates of deposit, U.S. obligations, and certain other
investments.
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SALINE COUNTY-CITY BUILDING AUTHORITY
NOTES TO FINANCIAL STATEMENT
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December 31, 2015
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'
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(Cont d.)
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I . G. Risk Management
Commercial Insurance—The Authority carries commercial insurance to limit its exposure to the various
'I risks of loss related to torts;theft of, damage to and destruction of assets; errors and omissions; injuries
to employees; and natural disasters. Settled claims have not exceeded commercial insurance coverage
in any of the past three years.
H. Compensated Absences
The Authority is liable for payments to employees for sick pay and vacation pay earned according to
Authority personnel policies. This liability is recorded as an encumbrance and is included as an
expenditure in the accompanying financial statement.
I. Estimates
The preparation of financial statement requires management to make estimates and assumptions that
affect the amounts reported in the financial statement and the accompanying notes. Actual results may
differ from those estimates.
J. Other Post Employment Benefits
As provided by KSA 12-5040, the local government allows retirees to participate in the group health
insurance plan. While each retiree pays the full amount of the applicable premium, conceptually, the
local government is subsidizing the retirees because each participant is charged a level of premium
regardless of age. However,the cost of this subsidy has not been quantified in this financial statement.
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the government makes health
care benefits available to eligible former employees and eligible dependents. Certain requirements are
outlined by the federal government for this coverage. The premium is paid in full by the insured. There
is no cost to the government under this program.
K. Subsequent Events
There are no subsequent events that were identified in procedures performed through July 5, 2016,
which also is the date these financial statement were available to be issued.
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SALINE COUNTY-CITY BUILDING AUTHORITY
NOTES TO FINANCIAL STATEMENT
IDecember 31, 2015
NOTE 2-DEPOSITS—CASH BALANCES
As of December 31, 2015, the Authority had cash in financial banking institutions of $961,339,
outstanding checks were $621 and the cash balance per books was $960,718. These deposits were
secured by$500,000 FDIC insurance and pledged securities having a market value of$995,916.
The Authority does not have any activity in investment-type assets.
Interest rate risk— KSA 9-1401 establishes the depositories, which may be used by Kansas governments.
The statue requires banks eligible to hold the government's funds have a main or branch bank in the
county in which the government is located, or in an adjoining county if such institution has been
designated as an official depository, and the banks provide an acceptable rate of return on funds. In
addition, KSA 9-1402 requires the banks to pledge securities for deposits in excess of FDIC coverage.
The Authority has no other policies that would further limit interest rate risk.
Credit risk — KSA 12-1675 limits the government's investment of idle funds to time deposits, open
accounts, and certificates of deposit with allowable financial institutions; U.S. government securities;
temporary notes; no-fund warrants; repurchase agreements; and the Kansas Municipal Investment Pool.
The Authority has no investment policy that would further limit its investment choices. The Authority's
practice is to place idle funds in certificates of deposit.
Custodial credit risk—The custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover deposits or will not be able to
recover collateral securities that are in the possession of an outside party. Kansas Statutes 9-1402 and
9-1405 require that governments obtain security for all deposits. The Authority manages its custodial
credit risk by requiring the financial institutions to grant a security interest in securities held by third-
party custodial banks.
Concentration of credit risk—State statutes place no limit on the amount the government may invest in
any one issuer as long as the investments are adequately secured under KSA 9-1402 and 9-1405. The
Authority has placed all of its resources with one financial institution.
NOTE 3-DEFINED BENEFIT PENSION PLAN
Plan Description—The Saline County-City Building Authority participates in the Kansas Public Employees
Retirement System (KPERS), a cost-sharing multiple-employer defined benefit pension plan as provided
by KSA 74-4901, et seq. KPERS provides retirement benefits, life insurance, disability income benefits,
'i and death benefits. Kansas law establishes and amends benefit provisions. KPERS issues a publicly
available financial report that includes financial statement and required supplementary information.
That report may be obtained by writing to KPERS (611 S. Kansas, Suite 100, Topeka, KS 66603) or by
calling 1-888-275-5737.
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SALINE COUNTY-CITY BUILDING AUTHORITY
NOTES TO FINANCIAL STATEMENT
December 31, 2015
NOTE 3-DEFINED BENEFIT PENSION PLAN '
Contd.
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Funding Policy — KSA 74-4919 establishes the KPERS member-employee contribution rate at 4% for
employees hired before July 1, 2009, and 6% for those hired after July 1, 2009, of covered salary.
Member-employees' contributions are withheld by their employer and paid to KPERS according to the
provisions of section 414(h) of the Internal Revenue Code. The State of Kansas is required to contribute
the remaining amount necessary to achieve the actuarially determined contribution rate. Kansas
currently contributes 9.17% of covered payroll. These contribution requirements are established by
KPERS and are periodically revised. The Authority's employer contributions to KPERS for the years
ending December 31, 2015, 2014, 2013, 2012 and 2011 were $30,519, $29,182, $25,378, $23,445 and
$21,580 respectively,equal to the required contribution for each year.
NOTE 4—DEBT SERVICE
The Authority makes the lease payments on improvements to the building's HVAC system. Costs of
those improvements were financed with a capital lease that is the obligation of the City of Salina and
Saline County.
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SUPPLEMENTAL INFORMATION
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SALINE COUNTY-CITY BUILDING AUTHORITY
'r--' Schedule 1
General Fund
i Schedule of Receipts and Expenditures-Actual and Budget
Ir Regulatory Basis
For the year ended December 31, 2015
Over
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I. Actual Budget Budget
Cash Receipts
. City of Salina - Regular $ 464,637 $ 400,491 $ 64,146
Miscellaneous receipts 4,166 - 4,166
Salina Public Library - 9,000 (9,000)
Saline County 758,092 643,092 115,000
Interest income 592 1,000 (408)
Vending commissions 1,955 1,500 455
ITotal Cash Receipts 1,229,442 $ 1,055,083 $ 174,359
Expenditures
I Salaries 267,067 310,332 (43,265)
Health insurance 74,136 147,081 (72,945)
KPERS retirement plan 30,519 30,000 519
FICA 17,909 20,000 (2,091)
I Medicare 4,188 5,000 (812)
Unemployment tax 316 500 (184)
Workers compensation insurance 529 30,000 (29,471)
1 Contractual consultants 5,000 (5,000)
Education 2,057 3,000 (943)
Employee services 6,041 1,500 4,541
Equipment repair 10,559 10,000 559
I Property insurance 553 32,000 (31,447)
Audit fee 7,550 7,000 550
Supplies building 23,465 47,500 (24,035)
I Maintenance agreement 17,713 30,000 (12,287)
Miscellaneous expenditures 7,159 5,000 2,159
Maintenance 28,256 40,000 (11,744)
Telephone 252 - 252
I Utilities 143,070 185,000 (41,930)
Yard & beautification 4,296 3,000 1,296
_. Debt service 215,248 234,816 (19,568)
I Capital outlay 55,331 76,000 (20,669)
Total Expenditures and Transfers 916,214 $ 1,222,729 $ (306,515)
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IReceipts Over(Under) Expenditures 313,228
Unencumbered Cash, Beginning 594,514
I- Unencumbered Cash, Ending $ 907,742
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- The above exhibit was prepared using the basis of accounting,which documents compliance
I with the cash basis and budget laws of the State of Kansas.
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" .0 H A R T ER ED accountants
July 5, 2016
To the Board of Directors
Saline•County-City Building Authority
P.O. Box 5040
Salina, KS 67402-5040
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We have audited the financial statements of the governmental activities, the business-type activities, the aggregate
discretely presented component.units; each major fund, and the aggregate remaining fund information of Saline
County-City:Building Authority for the year ended December 31 2015. Professional standards require that we provide
you with information about our responsibilities under generally accepted auditing standards, as well as certain
information related to the planned scope and timing of our audit. We have communicated such information in our
letter to you dated March 28, 2016. Professional standards also require that we communicate to you the.following
information related to our audit.
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Significant Audit Findings
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Qualitative Aspects of Accounting Practices
Management is responsible for,the selection and use of appropriate accounting policies. The significant accounting
policies used,by Saline County-City Building Authority-are described in Note 1 to the financial statements.:No new •
accounting policies were adopted and the application of existing policies was not changed during 2015. We noted no
• transactions entered into by. Saline County-City Building Authority during the year for which there is a lack of
authoritative guidance or consensus:All-significant transactions have been recognized in the financial statements in
the proper period..
• Accounting,estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and.experience about past. and current events and 'assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because'of the possibility that future events affecting them may differ significantly from those expected. The most
sensitive estimate affecting the Saline County-City Building Authority's financial statements'was:
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- The employees of the Authority participate in the.Kansas Public Employees Retirement System
(KPERS). As a Defined Benefit Plan, employer contribution rates are based.upon annual actuarial
• valuations by KPERS, as;provided by Kansas-Law. Accordingly,.contributions made on behalf of
the Authority are subject to some degree of estimation, as well as future valuations and balances for
• future benefits.. More information regarding KPERS and the Authority's Participation can be found
in Note 1 to the financial statements.
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' The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit .
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements • •
Professional.standards require us to accumulate all known and likely misstatements identified during the audit, other
than those that are'clearly trivial, and communicate them to the appropriate level of management. Management has
corrected all such misstatements. In.addition, none of:the misstatements detected as'a result of audit procedures and
corrected by management were material, either individually or in the aggregate, to each opinion unit's financial
statements taken as a whole. •
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Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting,or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report.
We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
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We have requested certain representations from management that are included in the management representation
letter,dated July 6, 2016.
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Management Consultations with Other.Independent Accountants
• - In•some cases, management may decide to consult with other accountants about auditing and accounting matters, •
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting -
principle to Saline County-City Building Authority's financial statements or a determination of the type of auditor's
1619 E. Iron Avenue • F.O. Box 1516 • Salina,Kansas 67402-1516 • Phone 785-825-5494 •
Fax 785-825-4450 • www.woodsanddurham.com
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opinion that may be expressed on those statements, our professional standards require the consulting accountant to
. check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
• Other Audit Findings or Issues
We generally discuss a variety of.matters, including the application of accounting principles and auditing standards, '
..... " • — - -with management each year prior to retention as Saline County-City Building Authority's auditors. However, these .
• discussions occurred in the.normal courseof our professional relationship and our responses were not a condition to
our retention. •
•• . Other Matters .
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• . We were engaged to report on General Fund.Schedule of Receipts and Expenditures = Actual and Budget
Regulatory Basis, which accompany the financial statements but are not required supplementary information. With
respect to this supplementary information, we made certain inquiries of management and evaluated the-form, content,
and methods of,preparing,the information to determine that the information complies with, statutory basis of
I ? accounting and budget laws of the State of Kansas, the method of preparing it has not changed from the prior period,
:, and the information is appropriate and complete in relation to our audit of the financial statements.We compared and
reconciled the supplementary information to the underlying accounting records used to prepare the financial
statements or to the financial statements themselves.
4 Communication of.No Material Weaknesses . '
In planning and performing our audit'of the financial statements of the governmental activities of Saline County-City
Building Authority as of and for the year ended December 31, 2015, in accordance with statutory.basis of accounting
and budget laws of the State of Kansas, we considered Saline;County-City Building Authority internal control over
financial 'reporting •(internal control) as a basis for designing 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
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expressing an'opinion on the.effectiveness of Saline County-City Building Authority's internal control. Accordingly', we
. do not express an opinion on the effectiveness of Saline County-City Building Authority'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'a 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.' _ ' .
- • Our consideration of internal control•was for the limited purpose described in the first paragraph and was not
designed to identify all deficiencies in internal control that might be material weaknesses: Given these limitations
• during.our audit, we did hot identify any deficiencies in internal control that we consider to be material-weaknesses.
However, material weaknesses may exist that have not been identified. - - .
Restriction on Use
This information is intended solely for the information and use of the Board of Directors and management of Saline
County-City Building Authority and is not'intended to be, and should not be, used by anyone other.than these -
specified parties.
Very truly yours, .
WOODS& DURH CHTD.
" iddirleti-s A.Trower
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July 5, 2016
Woods & Durham, Chtd.
1619 E. Iron Ave.
Salina, KS 67401
This representation letter is provided in connection with your audit of the financial statements of Saline
County-City Building Authority, which comprise the Summary of Receipts, Expenditures and
Unencumbered Cash— Regulatory Basis, as of December 31, 2015, and the related notes to the financial
statements, for the purpose of expressing opinions as to whether the financial statements are presented
fairly, in all material respects, in accordance with statutory basis of accounting and budget laws of the
State of Kansas.
Certain representations in this letter are described as being limited to matters that are material. Items are
considered material, regardless of size, if they involve an omission or misstatement of accounting
information that, in light of surrounding circumstances, makes it probable that the judgment of a
reasonable person relying on the information would be changed or influenced by the omission or
misstatement. An omission or misstatement that is monetarily small in amount could be considered
material as a result of qualitative factors.
We confirm, to the best of our knowledge and belief, as of July 5, 2016, the following representations
made to you during your audit.
Financial Statements
1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated
March 28, 2016, including our responsibility for the preparation and fair presentation of the financial
statements in accordance with U.S. GAAP and for preparation of the supplementary information in
accordance with the applicable criteria.
2) The financial statements referred to above are fairly presented in conformity with statutory basis of
accounting and budget laws of the State of Kansas and include all properly classified funds and other
financial information of the primary government and all component units required by generally
accepted accounting principles to be included in the financial reporting entity.
3) We acknowledge our responsibility for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
4) We acknowledge our responsibility for the design, implementation, and maintenance of internal
control to prevent and detect fraud.
5) Significant assumptions we used in making accounting estimates, including those measured at fair
value, are reasonable.
6) Related party relationships and transactions, including revenues, expenditures/expenses, transfers,
leasing arrangements, and amounts receivable from or payable to related parties have been
appropriately accounted for and disclosed in accordance with statutory basis of accounting and
budget laws of the State of Kansas.
7) The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to
the financial statements as a whole for each opinion unit.
8) We are not aware of any pending or threatened litigation, claims, or assessments or unasserted
claims or assessments that are required.to be accrued or disclosed in the financial statements, and
we have not consulted a lawyer concerning litigation, claims, or assessments.
Information Provided
9) We have provided you with:
a) Access to all information, of which we are aware, that is relevant to the preparation and fair
presentation of the financial statements, such as records, documentation, and other matters.
b) Additional information that you have requested from us for the purpose of the audit.
c) Unrestricted access to persons within the city and county from whom you determined it necessary
to obtain audit evidence.
d) Minutes of the meetings of Saline County-City Building Authority or summaries of actions of
recent meetings for which minutes have not yet been prepared.
10) All material transactions have been recorded in the accounting records and are reflected in the
financial statements.
11) We have no knowledge of any fraud or suspected fraud that affects the Saline County-City Building
Authority and involves-
• Management,
• Employees who have significant roles in internal control, or
• Others where the fraud could have a material effect on the financial statements.
12) We have no knowledge of any allegations of fraud or suspected fraud affecting the Saline County-City
Building Authority's financial statements communicated by employees, former employees, regulators,
or others.
13) We have no knowledge of instances of noncompliance or suspected noncompliance with provisions
of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered
when preparing financial statements.
14) We are not aware of any pending or threatened litigation, claims, or assessments or unasserted
claims or assessments that are required to be accrued or disclosed in the financial statements, and
we have not consulted a lawyer concerning litigation, claims, or assessments.
Government-specific
15) There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
16) We have identified to you any previous audits, attestation engagements, and other studies related to
the audit objectives and whether related recommendations have been implemented.
17) We have provided our views on reported findings, conclusions, and recommendations, as well as our
planned corrective actions, for the report.
18) The Saline County-City Building Authority has no plans or intentions that may materially affect the
carrying value or classification of assets, liabilities, or equity.
19) We are responsible for compliance with the laws, regulations, and provisions of contracts and grant
agreements applicable to us, including tax or debt limits and debt contracts, and legal and contractual
provisions for reporting specific activities in separate funds.
20) We have identified and disclosed to you all instances, which have occurred or are likely to have
occurred, of noncompliance with provisions of contracts and grant agreements that we believe have a
material effect on the determination of financial statement amounts or other financial data significant
to the audit objectives.
21) There are no violations or possible violations of budget ordinances, laws and regulations (including
those pertaining to adopting, approving, and amending budgets), provisions of contracts and grant
agreements, tax or debt limits, and any related debt covenants whose effects should be considered
for disclosure in the financial statements, or as a basis for recording a loss contingency, or for
reporting on noncompliance.
22) As part of your audit, you assisted with preparation of the financial statements and related notes. We
acknowledge our responsibility as it relates to those nonaudit services, including that we assume all
management responsibilities; oversee the services by designating an individual, preferably within
senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy
and results of the services performed; and accept responsibility for the results of the services. We
have reviewed, approved, and accepted responsibility for those financial statements and related
notes.
23) The Saline County-City Building Authority has satisfactory title to all owned assets, and there are no
liens or encumbrances on such assets nor has any asset been pledged as collateral.
24) The Saline County-City Building Authority has complied with all aspects of contractual agreements
that would have a material effect on the financial statements in the event of noncompliance.
25) The financial statements properly classify all funds and activities in accordance with GASB Statement
No. 34.
Signature:
Title: