Audit Report - 1968
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SAJ-,IN A :l,,1:UN-ICIPAL AIRPORT
JOHN F. SCAN L.-\:,
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PAUL S. WALL
SALI:\A. KA:-'SAS 67401
June 13, 1969
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Gentlemen:
A. H. Leckband and Co. have completed the annual audit of the Salina Airport
Authority for the year 1968, and a copy of the audit report is enclosed.
Both the Airport Revolving Fund and the Bond and Interest Fund ,{ere self-
supporting.
The Airport Revolving Fund resulted in a modest excess of receipts over dis-
bursements of approxi~ately $20,000 for the year. The balance in this fund at
the year's end was $154,530.00. The expenditures out of this fund are subject
to accountability to the Federal Aviation Administration and may be expended
only for airport expenditures because the facilities that a=e rente¿ and produce
the income in this fund were given to the Airport Authority solely to produce
support revenues for airport maintenance and expenditures. It is ccnternplated
that capital expenditures out of this fund for airport activities during 1969
will exceed $100,000.00.
The income from the Bond and Interest Fund for the year, exclusive of the sale
of property which will be non-recurring, ,{as $56,783.20. The bond interest
expense ,,!as $42,243.35, so the fUEd ",as self-supporting for the year, and no
mill levy of any kind Has necessary in 1968. It is contemplated also that
additional income will be generated in 1969 so that the bond interest and principal
payments each year of approximately $57,000 will be met without the necessity of
a mill lev)'. The balance in this fund at the year I s end was $235,985.04. A
new rental building construction contract in the amount of $131,000.00 was let
early in 1969, to be financed out of the money in this fund. It is anticipated
also that the remaining balance Hill be used to finance ne", buildings to be rented
to ne\{ industrial and commercial businesses.
We now have approximately fifty separate businesses employing about 2000 people
in the area, exclusive of the Waiting Wives and families which total 3000 women
and children.
Sincerely,
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SALgA AIRPORT AUTHORITY
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SALINA AIRPORT AUTHORITY
Salina, Kansas
AUDIT REPORT
Year 1968
A. H. LECKBAND & CO.
Certified Public Accountants
Salina, Kansas
EXHIBIT A
EXHIBIT B
EXHIBIT C
EXHIBIT D
EÀ'1UBIT E
E1.'HIBIT F
SALINA AIRPORT AUTHORITY
Table of Contents
Auditor's Report
Page
1
Comments
2
Statement of Receipts, Disbursements, and
Composition of Ending Cash Balance
Airport Revolving Fund
Bond and Interest Fund
3 -4
5
Statement of Bonds of Indebtedness
6
Reconcilement of Fiscal Agency
7
Schedule of Investments
8
Insurance in Force
9
May 26, 1969
To the Directors
Salina Airport Authority
Salina, Kansas 67401
Gentlemen:
We have examined the financial and related general records of the Salina
Airport Authority for the year ended December 31, 1968.
Our examination was performed in accordance with the provisions of the
Minimum Standard Audit Program approved by the State Municipal Accounting Board,
September 28, 1963, and included such tests as we considered necessary in the
circumstances.
In our opinion, the accompanying schedules reflect the cash position of
the Salina Airport Authority at December 31, 1968, and the results of its cash
transactions for the year then ended.
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IC ACCOJNTANTS
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Euge e 0, Harrison, Certified
Public Accountant, Certificate No. 1401,
in charge of and actively engaged
on this audit.
1
COlf'AENTS
1.
The Salina Airport Authority is governed by a board of five directors
appointed by the City Co~~ission of the City of Salina, Kansas. The
following directors served during the period of our examination:
M. J, Kennedy, Chairman
C. J. Wertz, Vice-Chairman
Edward H. Bell, Secretary-Treasurer
Allen R. Dodge
Dale Lyon
2.
The following officials, appointed by the Salina Airport Authority Board
of Directors, also served during the period of our examination:
Paul Wall - Assistant Secretary - Appointed December 30, 1967
John F. Scanlan - Executive Vice-President - Appointed October 1, 1968
3.
The Salina Airport Authority believes it is not subject: to the cash
basis law of K.S.A. 10-1116 as stated in the audit reports of prior years.
4.
Warrant checks were not signed by three officials as required by K.S.A.
10-803 and K.S.A. 10-805 as amended by the 1968 Kansas Legislature. With
this exception, all cash receipts and disbursements appear to have been
properly made and accounted for.
5.
We recommend that a determination of the values of the plant and property
assets be recorded on the books and that a realistic depreciation char
be computed and recorded annually.
2
S~LINA AIR?CR7 AUTHORITY
AIRPORT REVOLVI:\G FUND EXHIBIT A
----- --.-----..
STATE1.2:'\T OF RECEIPTS, DIS BUL.... J.ENTS , A~; CC:'IPOSITIO~ OF ENDING CASH BALANCE
Janua:y 1 to December 31, 1968
CAsrr AND INVEST,ŒNTS - Ja,-¡uary 1, 1968
RECEIPTS
Building rents
Agricultural land rencs
Fixed base operator
Landing fees
Comlllissions
Ad valorem tax
Interest on investments
Reimbursement of expenditures
Miscellaneous income
TOTAL RECEIPTS
RECEIPTS AND BEGINNING BALANCE
DIS3URSEMENTS
Office and Administrative
Office salaries
Office supplies
Postage
Car expense
Travel expense
Legal and auditing
Insurance
Property tax
Interest
Engineering
Office equipment rental
Social security tax
Employee retirement
Telephone
Other office and administrative
Expense:
Maintenance Expense:
Building maintenance
Runways, taxiways and ramps
Equipment gas, oil and repair
Utilities
Ground maintenance
Janitor supplies
Maintenance salaries
Snow removal
Airfield lighting
Signs
Other maintenance expense
$ 20,389.38
412.94
99.36
454.10
243.46
2,936.11
10,199.11
22,565.75
10.33
3,150.00
127.08
2,085.43
643.55
1,004.37
expense 1,573,13
$
7,904.97
23,278.48
3,246.52
10,331.23
624.81
404.74
36,826.23
412.00
360.69
40.00
10,088,33
$134,085.74
5,150.00
18,409.73
10,603.:50
1,035.96
2,300.22
6,543.51
24.36
967.75
$ 65,894.10
93,518.00
$111,484.61
179,120.77
$290,605.38
3
SALIXA AIRPœ:c AUTHORITY
A I,,? 01<.':::' . C \T~~?':G FUND EXHIBIT .-\
--
S':'ATEMENT OF RECEIPTS, DISBURSEl,:ŒNlS, .-'.?';::; CCYPCSITION OF ENDING CASH BALAKCE
January 1 to December 31, 1968
Capital Expenditures:
Bench grinder, drill press, operaLional
kit, and motor
TOTAL DISBURSEMENTS
CASH fu~D INVESTMENTS - December 31, 1968
AVAILABLE CASH AND INíJEST:'fENTS - December 31, 1968
First National Bank and Trust Company - Checking
Planters State Bank - Checking account
U. S. Treasury Bills
TOTAL
DEDUCT - Amounts withhe1a from payroll
Due to Bond and Interest Fund
TOTAL CASH AND INVESTI'ŒNTS - December 31, 1968
account
101.95
$
1,807.99
75.00
159,514.05
S131.091.33
$ 2,842.42
2,829.90
127,302.00
$132,974.32
1.882.99
$13 L 0 9.LJ..l
4
S':'.LINA AIRPŒZT ':ÚJTì-i.ORITY
EOXD "ND ISTi-:cŒST FUND EXHIBIT B
------.-
STAT~MENT OF RECEIPTS, DISBURSEHEW':S. A:\D C:O~lPOSITION OF ENDING CASH BALAKCE
January 1 co Dec¿~ber 31, 1~u8
CASH AND INVES~Œ~lS - January 1, 1968
RECEIPTS
Build ing rents
Agricultural land rents
i::.mgar rents
Other rents
Sale of property
Interest on investments
Miscellaneous income
TOTAL RECEIPTS
RECEIPTS AND BEGINNING BALANCE
DISBURSDlliNTS
Bond interest expense
Bond cohmission and posta;e
Construction of Building #266
TOTAL DISBURSEMENTS
CASH AND INVESTMENTS - December 31, 1968
AVAILABLE CASH AND IN\ŒST~ŒNTS - December 3~, 1968
National Bank of America - Checking account
U. S. Treasury Bills
Due from Airport Revolving Fund
TOTAL CASH AND INVEST~ŒNTS - December 31, 1968
$ 23,515.00
10,502.00
11,250 .00
485.';.6
112,000.00
9,246.87
1,783.87
$ 42,243.35
18, :~6
5,850.00
$115,313.35
168,783.20
$284,096.55
48,111.51
5235.985.04
$ 7,063.75
228,8L¡.6.29
75.00
5235.985.04
5
SALINA AIRPO~T AUTHORITY
BONDS "lê LJ);~BTEDNESS
~~~_..~er 31, 1968
General Obligation Bonds d&ted February 1, 1967,
issued for the purpose of acquiring surplus
property from the United StaLes.
TOTAL BONDS OUTSTANDING - December 31, 1968
EXHIB IT C
::!a turi ty Inten,s t
D,_ce Rate Total
2-1-69 4.25 $ 30,000.00
2-1-70 4.25 30,000.00
2-1-ì 1 4.25 35,000.00
2-1-72 4.25 35,000.00
2-1-73 4.25 35,000.00
2-1-74 3.375 35,000.00
2-1-75 3.375 35,000.00
2-1-76 3.375 35,000.00
2-1-77 3.375 40,00,0 .00
2-1-78 3.375 40,000.00
2-1-79 3.375 40,000.00
2-1-80 3.375 40,000.00
2-1-81 3.3 j' 5 45,000.00
2-1-82 3.375 45,000.00
2-1-83 3.375 45,0[::;.00
2-1-84 3.4 45,000.00
2 -1-85 3.4 45,000.00
2-1-86 3.4 45,000.00
2-1-87 3.4 45,000.00
2-1-88 3.4 L;-5..JOO .00
~790.000.00
6
SALINA AIRPOR'.L AUTHORITY
RECONCILE~fL\:T OF FISCAL AGENCY ACCOUNT
December 31, 1968
BALili~CE WITH FISCAL AGENCY - January 1, 1968
RENITTANCE S
Interest coupons
COMilission and postage
TOTAL REMITTANCES AND B~GINNING BALANCE
RETURNS
Interest coupons paid
CoTI@ission and postage retained
BALANCE WITH FISCAL AGENCY - December 31, 1968
$ 42,243.35
18.16
:;> 42,243.35
18.16
EXHIBIT D
$
42,261. 51
$ 42,261.51
42,261.51
s
7
AIRPORT REVOLVING FUND
U. S. Treasury Bills
BOND AND INTEREST FUND
U. S. Treasury Bills
Sh~INA AIRPORT AUTHORITY
SC:'è~:'JLE OF INVEST1'fENTS
December 31, 1968
Balance-
1-1. ".. :.~
~~) 23,53 9 ...Q~2
S 79,057.95
Purchases
1968
SS17.056.90
.$gSL541.47
Redemptions
1968
ll.U. 293.95
$701, 753 . :.3
EXHIBIT E
Balance
12-31-68
.$127,302.JO
$228.846.29
8
Workmen's Compensation
Comprehensive General
Liability
Aircraft Hangar
Aircraft Hangar
Aircraft Hangar
Rental Buildings -
Industrial
Rental Building -
Dwellings
Airport Terminal and
Rental Buildings
SALINA AIRPORT AUTHORITY
INSURANCE IX FORCE
December 3~, 1968
TYDe of Cover¿2¿
Fire and lightning, ex-
tended coverage, van¿alism
and malicious mischier
Fire and lightning, ex-
tended coverage, vandalism
and malicious mischief
Fire and lightning, ex-
tended coverage, vandalism
and malicious mischief
Fire and lightning, ex-
tended coverage, rental
value insurance
Fire and lightning, ex-
tended coverage
Fire, lightning, windstorm
and hail, explosion, riots,
aircraft and vehicles,
smoke
Bodily injury
Property damage
$
Amount or
Coverage -
100,000.00
1,000,000.00
40,000.00
40,000.00
20,000.00
162,989.00
37,000.00
1,500,000.00
1/1,000,000.00
1/1,000,000.00
EXHIBIT F
Co-Insurance
Percentage
80
90
80
90
9