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Audit Report - 1971 ~ BOARD Of DIRECTORS C. J WERTZ. Chairman EDWAIW H. IIELL. Vice Cham.. C. F HBATH. Se<..T"u. WM. P. HORTON III!N J!. VlDRICKSJ!N SA.LIN A. A.IRPOR T A. UTFJ:OR..ITY SALIN A :MUNICIPAL AIRPORT JOHN f. SCANLAN Executi.. Vice Pmident TERMINAL BUILDUIG NO 120 SALINA. KANSAS 61401 PAUL S. WALL Gene...] """!Ie< - Aj,po<t "'nap< February 22,1972 Gentlemen: The Salina Airport Authority herewith submits an accounting of its operations for the calendar year 1971, as reported by A. H. Leckband and Company, its independent Certified Public Accountants. It is interesting to note that even with a substantial reduction of income from fixed base operation and landing fees, we continued to have some excess of operating revenues over operating expenditures. During the year 1971 substantial additions have been made to Building 266 for Schwans Sales of Marshall, Inc. and to Building 1021 for Rickel, Inc. The additions to these buildings have resulted in the doubling of the number of employees of these two firms. A carefully planned and executed maintenance program for all buildings, property and the runways has been carried on during the year. We believe all properties are in good condition. Progress has been made during the year in renting additional buildings in the Airport Complex. Only two major buildings are still unoccupied. If demand continues these and a few minor structures should be occupied in the not too distant future. The Salina Airport Authority is deeply grateful for the coopl~ration it has received from all segments of the Salina Community during the past year, and pledges its efforts toward continued progress in its area of responsibility. Sincerely, SALINA AIRPORT AUTHORI1~ ~- t ( -, '1 ~ -- C. J./Wertz Chairman CJW:ks SALINA AIRPORT AUTHORITY Salina, Kansas AUDIT REPORT Year 1971 A. H. LECKBAND & CO. Certified Public Accountants Accounting Bldg., 719 East Crawford Salina, Kansas 67401 EXHIBIT A Schedule 1 Schedule 2 Schedule 3 EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E SALINA AIRPORT AUTHORITY TABLE OF CONTENTS Page Auditor's Report 1 Comments 2 Statement of Receipts, Disbursements, and Composition of Ending Cash Balances Operating Revenues Operating Expenditures Capital Expenditures 3 4 5 6 Bonds of Indebtedness 7 Reconcilement of Fiscal Agency Account 8 Schedule of Investments 9 Insurance in Force 10 January 27, 1972 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, 1971. 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 subsequent amendments thereto, and included such tests as we considered necessary in the circumstances. In our opinion, the accompanying exhibits and schedules reflect the cash position of the Salina Airport Authority at December 31, 1971, and the results of its cash transactions for the year then ended. /// . { ¿' ft e. c..-l,if;,;-,' 7l( L I L ~ D PUBLIC ACCOUNTANTS cq;~~~/~ /J ~L/~~'7\/ Eugene O. Harrison, Certlfied Public Accountant, Certificate No. 1401, in charge of the actively engaged on this audit. 1 COMMENTS 1. The Salina Airport Authority is governed by a board of five directors appointed by the City Commission of the City of Salina, Kansas. The following directors served during the period of our examination: C. J. Wertz, Chairman M. J. Kennedy, Chairman - term expired Edward H. Bell, Vice-Chairman C. F. Heath, Secretary-Treasurer Bill Horton Ben Vidricksen April 26, 1971 2. The following officials, appointed by the Salina Airport Authority Board of Directors, also served during the period of our examination: John F. Scanlan, Executive Vice-President Paul Wall, Assistant Secretary and Airport Manager 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. We recommend that a determination of the values of the capital assets be recorded on the books and that a realistic depreciation charge be computed and recorded annually. 5. The Building Revenue Bond issue of $250,000.00 was sold to the First National Bank and Trust Co., Salina, Kansas on February 16, 1971. 6. A Bond Reserve Account and a Replacement and Depreciation Account were established during 1971 as provided by the Building Revenue Bond issue. $1,000.00 was transferred to each of these accounts during 1971. 2 SALINA AIRPORT A~THORITY GENERAL OPERATING FL~D iX:C;3IT A STATEMENT OF RECEIPTS, DISBuKSE~ŒNTS, AND COMPOSITION OF ENDING CASH BALANCES January 1 to December 3l, 1971 AVAILABLE CASH AND INVESTMENTS-December 31, 1971 First National Bank and Trust Co. $ Planters State Bank National Bank of America Certificates of Deposit Bond Reserve Replacement and Depreciation Reserve CASH AND INVESTMENTS-January 1, 1971 RECEIPTS Operating revenues-Schedule 1 Insurance proceeds Proceeds from Office of Emergency Preparedness Proceeds from sale of Building Revenue Bonds Accrued interest on sale of bonds Inter-account transfer TOTAL RECEIPTS RECEIPTS AND BEGINNING BALANCE DISBURSEHENTS Operating expenditures-Schedule 2 Capital expenditures-Schedule 3 Inter-account transfer TOTAL DISBURSEMENTS CASH AND INVESTMENTS-December 31, 1971 TOTAL DEDUCT-Amounts withheld from payroll TOTAL CASH AND INVESTMENTS- December 31, 1971 Bond and interest payments due in 1972 Airport Revolving Account $136,586.30 $237,004.81 2,685.66 50,459.69 $290,150.16 $426,736.46 $205,595.94 361.71 72,611.85 $278.569.50 $148,166.96 10,511.93 140,000.00 $150,511.93 2,344.97 $148,166.96 Building Revenue Account $ 67,942,21 $ 76,977.61 250,00J.00 1,597.40 72,611.85 $401,186.86 $469,129.07 $ 69,132.33 310,107.46 $379,239.79 $ 89.889.28 $ 23,805.63 34,082.65 30,000.00 1,000.00 1,000.00 $ 89,889.28 $ 89,889.28 $ 85.131. 25 General Oper&tiC1g Fund Totals $204,528.51 $313,982.42 2,685.66 50,459.69 250,000.00 1,597.40 72,611.85 $691,337.02 $895,865.53 $274,728,27 310,469.17 72,611.85 $657,809.29 $238.056.24 $ 23,806.63 10,511.93 34,082.65 170, O,JO .00 1,000.00 1,000.00 $240,401. 21 2,344.97 $238,056.24 3 SALIKA AIRPORT AUTHORITY G~~ERAL OPERATI~G FUND OPERATING REVENUES January 1 to December 31, 1971 Building rents Agriculture land rents Hangar rents Reimbursed cost of cancelled Other rents Fixed base operator Landing fees Commissions Interest on investments Interest on sale of property Sale of property on contract Reimbursement - FAA Howing Other reimbursable charges Miscellaneous income Airport Revolving Account $148,516.46 5,365.00 lease 50.00 23,907 .73 50,188.25 938.32 6,434.80 164.50 178.75 1,261.00 TOTAL OPERATING REVENUES $237,004.81 Bu ilc. ing Revenue Account $ 48,713.50 10,567.00 7,700.00 1,469.19 6 , 71 6 . 64 830.50 980.78 $ 76,977,61 SCEEDULE l General O)eracing Fucci ',['ot:a:s $197,229.96 15,932.00 7,700.00 1,469.19 50.00 23,907 .73 50,188.25 938.32 13,151.44 330.50 980.78 164.50 178.75 1,261.00 $313,982.42 4 SALINA AIR?ORT AUTHORITY GENERAL OPERATI~G Fu~D OPERATING EX?E~ùITL~ES January 1 to December 31, 1971 OFFICE A~~ ADMINISTRATION Office salaries Office supplies Postage Car expense Travel expense Legal and auditing Insurance Architectural services Engineering Social security tax Employees retirement Telephone Reimbursable charges Other office and administration TOTAL OFFICE AND ADMINISTRATION MAINTENANCE Building maintenance Runways, taxiways and ramps Equipment gas, oil and repairs Utilities Grounds maintenance Janitor supplies Contract labor Xaintenance salaries Snmv removal Airfield lighting equipffient Signs Other maintenance expense TOTAL MAINTENANCE BOND AND INTEREST Bond principal redeemed Bond interest expense Bond commission and postage Expenses relating to bond issue TOTAL BOND AND INTEREST TOTAL OPERATING EXPENDITURES Airport Building " l' Revenue KeVO.LVlng Account Accourt $ 37,667.99 $ 417.96 149.20 2,740.59 1,467.23 3,954.44 10,818.88 778.75 206.26 3,867.23 3,038.20 1,312.96 192.00 2,360,58 $ 68,193.52 $ 77c..75 $ 17,321.25 30,137.79 5,468.60 10,238.58 7,471.67 356.35 358.50 54,475.57 2,781.00 765.81 56.00 7,971.30 $137,402.42 $ $ $ $ 35,00(' .00 31,lU:.75 4=:.23 2,192.60 $ $ 68,353.58 $205,595.94 $ 69,132.33 Sche¿t:le 2 General Operating Furld 'i.'ots.ls $ 37,667.99 4-~7 .96 1¿,9 .2,) 2,740.59 1,467.23 3,954.44 10,818.88 778.75 206.26 3,867.23 3,038.20 1,312.96 192 .00 2,360.58 $ 68,972.27 $ 17,321.25 30,137.79 5,468.60 10,238.58 7,Lc7L67 356.35 358.50 54,475.57 2,781.00 765.81 56.00 7,9E.30 $137,402.42 $ 35,000.00 31,118.75 42.23 2,192.60 $ 68,353.58 $274,728.27 5 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND CAPITAL EXPENDITURES January 1 to December 31, 1971 Airport Revolving Account Building Revenue Account Building Improvements Building 266-Schwan's of Marshall, Inc.$ Building 1021-Rickel, Inc. Magnolia Road expenditure Sclledule 3 General Operating Fund Totals $280,835.3ó $280,835.36 29,272.10 29,272.10 361.71 361.71 361.71 $310,107.46 $310,469.17 $ TOTAL CAPITAL EXPENDITURES 6 SALINA AIRPORT AUTHORITY BONDS OF INDEBTEDNESS December 31, 1971 General Obligation Bonds dated February 1, 1967, issued for the purpose of acquiring surplus property from the United States TOTAL ORIGINAL ISSUE DEDUCT - Bonds paid in year 1969 Bonds paid in year 1970 Bonds paid in year 1971 Maturity Date 2-1-69 2-1-70 2-1-71 2-1-72 2-1-73 2 -1-74 2-1-75 2-1-76 2-1-77 2-1-78 2-1-79 2 -1-80 2 -1-81 2 -1 -82 2 -1-83 2-1-84 2 -1-85 2 -1 -86 2 -1 -87 2-1-88 Interest Rate -- 4,25 4.25 4.25 4.25 4.25 3.375 3.375 3.375 3.375 3.375 3.375 3.375 3.375 3.375 3.375 3.4 3.4 3,4 3.4 3.4 $ 30,000.00 30,000.00 35,000.00 GENERAL OBLIGATION BONDS OUTSTANDING - December 31, 1971 Building Revenue Bonds dated January 1, 1971, issued for the purpose of purchasing, constructing, repairing, extending and improving the property and facilities of the Salina Airport Authority. 1-1-72 1-1-73 1-1-74 1-1-75 1-1-76 1-1-77 1-1-78 1-1-79 1-1-80 1 -1 -81 5 5 5 5 5 5 5 5 5 5 BUILDING REVENUE BONDS OUTSTANDING - December 31, 1971 TOTAL BONDS OUTSTANDING $945.000.00 EXHIB IT B Totol $ 30,000.00 30,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 40,000.00 ,40,000.00 40,000,00 40,000.00 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00 $790,000.00 95,000.00 $695,000.00 $ 15,000.00 15,000.00 20,000.00 20,000.00 25,000,00 25,000.00 30,000.00 30,000.00 35,000.00 35,000.00 $250,000.00 7 SALINA AIRPORT AUTHORITY RECONCILEW~NT OF FISCAL AGENCY ACCOUNT December 31, 1971 BA~k~CE WITH FISCAL AGENCY - January 1, 1971 REMITTANCES Xatured bonds InLerest coupons Commission and postage TOTAL REMITTANCES AND BEGINNING BALANCE RETURNS Cancelled bonds InLeresL coupons paid Co~wíssion and postage retained BALANCE WITH FISCAL AGENCY - December 31, 1971 $ 35,000.00 24,868.75 42.33 $ 35,000.00 24,868.75 42.33 EXHIBIT C $ 59,911.08 $ 59,911.08 59,911.08 $ 8 SALINA AIRPORT AUTHORITY SCHEDULE OF INVEST~mNTS December 31, 1971 EXHIBIT D Balance Purchases Redemptions Balance 1-1-71 1971 1971 12 -31-71 AIRPORT REVOLVING ACCOUNT U. S. Treasury Bills $128,195.00 $148,220 .20 $276,415.20 $ Certificates of Deposit 380,000.00 240,000.00 140,000.00 BUILDING REVENUE ACCOUNT U. S. Treasury Bills 19,734,10 9,901.30 29,635.40 Certificates of Deposit 315,000.00 285,000.00 30,000.00 TOTAL - GENERAL OPERATING FUND $147,929.10 $853,121.50 $83 L050. 60 $170,000.00 9 Wû~kmen's Compensation Comprehensive General Liability Aircraft Hangar Rental Building 266 Rental Buildings - Industrial Rental Buildings - Dwellings Airport Terminal and Rental Buildings Vehicles SALINA AIRPORT AUTHORITY INSURANCE IN FORCE December 31, 1971 Type of Coverage Fire and lightning, ex- tended coverage, vandalism an¿ malicious mischief Fire, lightning, windstorm and hail, explosion, smoke damage, vehicle or aircraft, riot, vandalism or malicious mischief, replacement cost Fire and lightning, ex- tended coverage, rental value insurance Fire and 1ighLning, extended coverage Fire and lightning, ex- tended coverage, vandalism and malicious mischief Bodily injury Property damage Bodily injury Property damage Fire, theft, and combined additional coverage Affiount of Coverage $ 100,000.00 5,000,OCO.00 20,000.00 275,000.00 180,300.00 37,000.00 1,974,000.00 1/1,000,000.00 1/1,000,000.00 100/300,000.00 50,000.00 EXHIBIT E Co-Insurance Percentag,e 80 80 90 10