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Audit Report - 1972 SALINA AIRPORT AUTHORITY Salina, Kansas AUDIT REPORT Year 1972 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 EXHIBIT F 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 -8 Reconcilement of Fiscal Agency Account 9 Schedule of Investments 10 Insurance in Force 11 Schedule of Audit Adjustments 12 February 12, 1973 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, 1972. 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 amendrnents 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, 1972, and the results of its cash transactions for the year then ended. ) . // ~ '" d // ¡/. .. '-'C/dz~7l"l! It'; CERTIFIED ÚBLIC ACCOUNTANTS ¿Ç;) ù ,...t:' ¿<>c' 7V<""""'---- Eugene~O. Harrison, Certified Public Accountant, Certificate No. 1401, in charge of and actively engaged on this audit. r) C/ / '. V '/--.,!' éij_:'- ",,;.-¿.....v 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 Edward H. Bell, Vice-Chairman - term William P. Horton, Vice-Chairman C. F. Heath, Secretary-Treasurer Ben Vidricksen W. M. Usher expired April 26, 1972 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, General Manager and Airport Manager 3. The Salina Airport Authority believes it is exempt from the cash basis law under the provisions 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. A building Revenue Bond issue of $500,000.00 was sold to the four Salina banks on August 29, 1972. 6. A Bond Reserve Account and a Replacement and Depreciation Account were established during 1971 as provided by the Building Revenue Bond issue. $2,000.00 was transferred to each of thesle accounts during 1972. 2 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND EXHIBIT A STATEMENT OF RECEIPTS, DISBURSEMENTS, AND COMPOSITION OF ENDING CASH BALANCES January 1 to December 31, 1972 CASH AND INVESTMENTS-January I, 1972 Airport Revolving Account $148,166.96 Building Revenue Account $ 89,889.:28 General Operating Fund Totals $ 238,056.24 RECE IPTS Operating revenues-Schedule I $199,022.08 $113,719.95 $ 312,742.03 Proceeds from sale of Building Revenue Bonds 500,000.00 500,000.00 Accrued interest on sale of bonds 3,896.05 3,896.05 Reimbursement of expense relating to bond issue 100.00 100.00 TOTAL RECEIPTS $199,022.08 $617,716.00 $ 816,738.08 RECEIPTS AND BEGINNING BALANCE $347,189.04 $707,605.28 $1.054,794.32 DISBURSEMENTS Operating expenditures-Schedule 2 $182,135.30 $120,592.14 $ 302,727.44 Capital expenditures-Schedule 3 400.00 509,495.85 509,895.85 TOTAL DISBURSEMENTS $182,535.30 $630,087.99 $ 812,623.29 CASH AND INVESTMENTS-December 31,1972 $164.653.74 $ 77.517.29 $ 242.171.03 AVAILABLE CASH AND INVESTMENTS-December First National Bank and Trust Co. $ Planters State Bank and Trust Co. National Bank of America Certificates of Deposit Certificates of Deposit- Bond Reserve Certificates of Deposit-Replacement and Depreciation Reserve 31, 1972 $ 4,741.76 $ 4,741. 76 2,145.20 2,145.20 11,775.53 11 , 77 5.53 165,000.00 55,000.00 220,000.00 TOTAL $167,145.20 3,000.00 3,000.00 3,000.00 3,000.00 $ 77,517.29 $ 244,662.49 DEDUCT-Amounts withheld from payroll 2,491.46 2,491.46 TOTAL CASH AND INVESTMENTS- December 31, 1972 $164.653.74 $ 77 .517 .29 $141,743.75 32,612.50 $ 242.171.03 Bond and interest payments due in 1973 DEDUCT-Amount paid December 28, 1972 $109.131.25 3 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND OPERATING REVENUES January 1 to December 31, 1972 Schedule 1 Airport Build ins General Revolving Revenue Operating Account Account Fund Totals $148,974.48 $ 83,128.50 $232,102.98 5,365.00 12,703.00 18,068.00 2,175.00 1,000.00 3,175.00 7,700.00 7,700.00 50.00 50.00 21,411.34 21,411.34 12,628.45 12,628.45 931. 91 931.91 7,032.25 7,377.17 14,409.42 759.59 759.59 1,051.69 1,051.69 173 .00 173 .00 280.65 280.65 Building rents Agriculture land rents Other land rents Hangar rents Other rents Fixed base operator Landing fees Commissions Interest on investments Interest on sale of property Sale of property on contract Reimbursement - FAA mowing Miscellaneous income TOTAL OPERATING REVENUES $199.022 .08 $113.719.95 $312.742.03 4 $ 65,000.00 $ 65,000.00 53,118.75 53,118 .75 40.31 40.31 2 , 12l~ . 74 2,124.74 $120,283.80 $120,283.80 $120.592.14 $302.727.44 5 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND OPERATING EXPENDITURES January 1 to December 31, 1972 Airpor t Building Revolving Revenue OFFICE AND ADMINISTRATION Account Accou::J.t Office salaries $ 39,002.00 $ Office supplies 556.21 Postage 178.67 Car expense 1,941.40 Travel expense 720.33 Legal and auditing 3,642.27 Insurance 26,316.02 Appraisal fees 308.34 Engineering 94.98 Social security tax 4,070.33 Employees retirement 3,175.62 Telephone 1,463.18 Reimbursable charges 3.34 Other office and administration 1,366.72 TOTAL OFFICE AND ADMINISTRATION $ 82,531.07 $ 308.34 MAINTENANCE Building maintenance Runways, taxiways and ramps Equipment gas, oil and repairs Ut i1 it ies Grounds maintenance Janitor supplies Maintenance salaries Snow removal Airfield lighting equipment Signs Other maintenance expense $ $ 6,548.45 13,245.68 2,473.02 10,154.61 6,431.18 467.46 55,410.69 53.23 89.50 101.43 4,628.98 $ 99,604.23 $ TOTAL MAINTENANCE BOND AND INTEREST Bond principal redeemed Bond interest expense Bond commission and postage Expense relating to bond issue $ TOTAL BOND AND INTEREST $ TOTAL OPERATING EXPENDITURES $182.135.30 Schedule 2 General Operating Fund Totals $ 39,002.00 556.21 178.67 1,941.40 720.33 3,642.27 26,316.02 308.34 94.98 4,070.33 3,175.62 1,463.18 3.34 1,366.72 $ 82,839.41 $ 6,548.45 13 , 245 . 68 2,473 .02 10,154.61 6,431. 18 467.46 55,410.69 53.23 89.50 101.43 4,628.98 $ 99,604.23 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND CAPITAL EXPENDITURES January 1 to December 31, 1972 Schedule 3 Airpor t Revolving Account Build ing Revenue Account General Operating Fund Totals Building improvements Building 266-Schwan's Sales Enterprises, Inc. Building 620-Continental Aluminum Compressor-Building 673-Salina Poultry Co. $ $507,595.85 $507,595.85 1,900.00 1,900.00 400.00 400.00 400.00 $509.495.85 $509.895.85 TOTAL CAPITAL EXPENDITURES $ 6 SALINA AIRPORT AUTHORITY BONDS OF INDEBTEDNESS December 31, 1972 Building Revenue Bonds dated January I, 1971, issued for the purpose of purchasing, constructing, repairing, extending and improving the property and facilities of the Salina Airport Authority TOTAL ORIGINAL ISSUE DEDUCT - Bonds paid in year 1972 Maturity Date 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 BUILDING REVENUE BONDS (SERIES 1971) OUTSTANDING - December 31, 1972 Building Revenue Bonds dated July I, 1972, issued for the purpose of purchasing, constructing, repairing, extending and improving the property and facilities of the Salina Airport Authority 7 -1-73 7 -1-74 7 -1-75 7-1-76 7 -1-77 7-1-78 7-1-79 7 -1-80 7 -1 -81 7 -1-82 7-1-83 7 -1-84 BUILDING REVENUE BONDS (SERIES 1972) OUTSTANDING - December 31, 1972 Interest Rate -- 5 5 5 5 5 5 5 5 5 5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 5 5 5 5 EXHIBIT B Total $ 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 30,000.00 $220.000.00 $ 35,000.00 35,000.00 35,000.00 35,000.00 40,000.00 40,000.00 40,000.00 45,000.00 45,000.00 50,000.00 50,000.00 50,000.00 $500.000.00 7 SALINA AIRPORT AUTHORITY BONDS OF INDEBTEDNESS December 31, 1972 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 Bonds paid in year 1972 Maturity Date 2 -1-6 9 2-1-70 2-l-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 35,000.00 GENERAL OBLIGATION BONDS OUTSTANDING - December 31, 1972 SUMMARY OF BONDS OUTSTANDING Building Revenue Bonds (Series 1971) Building Revenue Bonds (Series 1972) General Obligation Bonds TOTAL BONDS OUTSTANDING - December 31, 1972 EXHIBIT B Total $ 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 $790,000.00 130,000.00 $660.000.00 $ 220,000.00 500,000.00 660,000.00 $1.380.000.00 8 SALINA AIRPORT AUTHORITY RECONCILEMENT OF FISCAL AGENCY ACCOUNT December 31, 1972 BALANCE WITH FISCAL AGENCY - January 1, 1972 REMITTANCES Matured bonds Interest coupons Commission and postage $ 35,000.00 23,381.25 40.31 TOTAL REMITTANCES AND BEGINNING BALANCE RETURNS Cancelled bonds Interest coupons paid Commission and postage retained $ 35,000.00 22,875.03 40.31 BALANCE WITH FISCAL AGENCY - December 31, 1972 ANALYSIS OF BALANCE December 31, 1972 UNREDEEMED INTEREST COUPONS (General Obligation Bonds) Date Due 8-1-72 8-1-72 8 -1-72 8-1-72 8-1-72 8-1-72 Coupon No. 73 74 75 76 77 78 BALANCE WITH FISCAL AGENCY - December 31, 1972 EXHIBIT C $ 58.421.56 $ 58,421.56 $ 57,915.34 506.22 Amount $ 84.37 84.37 84.37 84.37 84.37 84.37 $ 506.22 9 SALINA AIRPORT AUTHORITY SCHEDULE OF INVESTMENTS December 31, 1972 EXHIBIT D Balance Purchases Redemptions Balance 1-1-72 1972 1972 12 -31-72 AIRPORT REVOLVING ACCOUNT Certificates of Deposit $140,000.00 $105,000.00 $ 80,000.00 $165,000.00 BUILDING REVENUE ACCOUNT Certificates of Deposit 30,000.00 583,000.00 552,000.00 61,000.00 TOTAL - GENERAL OPERATING FUND $170.000.00 $688.000.00 $632.000.00 $226.000.00 10 SALINA AIRPORT AUTHORITY INSURANCE IN FORCE December 31, 1972 EXHIBIT E Type of Coverage Amount of Co-Insurance Coverage Percentage $ 100,000.00 5,000,000.00 1,000,000.00 Workmen's Compensation and Employers' Liability Comprehensive General Liability Manufacturers' and Contractors'Liability Rental Building 266 Rental Buildings - Industrial Rental Buildings - Dwellings Airport Terminal and Rental Buildings Vehicles Fire, lightning, windstorm and hail, explosion, smoke damage, vehicle or aircraft, riot, vandalism or malicious mischief, replacement cost 475,000.00 80 Fire and lightning, extended coverage, rental value insurance 206,140.00 Fire and lightning extended coverage 37,000.00 Fire and lightning, removal, windstorm and hail, smoke, explosion, riot, aircraft and vehicles, vandalism and malicious mischief 90 1,989,000.00 Bodily injury 100/300,000.00 Property damage 50,000.00 Fire, theft, and combined additional coverage 11 SALINA AIRPORT AUTHORITY BUILDING REVENUE ACCOUNT SCHEDULE OF AUDIT ADJUSTMENTS December 31, 1972 ( 1) Accrued Interest on Sale of Bonds Bond Interest Expense Interest on Investments To reclassify various interest payments received on certificates of deposit during 1972 which were credited in error to Accrued Interest on Sale of Bonds and Bond Interest Expense. (2) Capital Expenditures Engineering To reclassify payments to White, Hamele and Hunsley which represents one-half of the cost of plans for addition to Continental Aluminum building #620 Debit $ 382.97 6,020.01 $ 1,900.00 EXHIBIT F Cred it $ 6,402.98 $ 1,900.00 12