Audit - 1992/1993KENNEDY AND COE, LLC
CERTIFIED PUBLIC ACCOUNTANTS
HOME OFFICE:
P. O. BOX 11 DO
SALINA. KANSAS 67402 -1100
913- 825-1561
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL
FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
To the Governing Board
Salina - Saline County Board of Health
Salina, Kansas:
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
We have audited the financial statements of the Salina - Saline County Board of Health for the year
ended December 31, 1993, and have issued our report thereon dated May 26, 1994.
In connection with our audit of the 1993 financial statements of the Salina - Saline County Board of
Health and with our consideration of the Board of Health's internal control structure used to administer
federal financial assistance programs, as required by Office of Management and Budget Circular A-
128, "Audits of State and Local Governments," we selected certain transactions applicable to certain
nonmajor federal financial assistance programs for the year ended December 31, 1993.
As required by OMB Circular A -128, we have performed auditing procedures to test compliance with
the requirements governing types of services allowed or unallowed and eligibility requirements that
are applicable to those transactions. Our procedures were substantially less in scope than an audit,
the objective of which is the expression of an opinion on the Salina - Saline County Board of Health's
compliance with these requirements. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the preceding paragraph. With respect to items not
tested, nothing came to our attention that caused us to believe that the Salina - Saline County Board of
Health had not complied, in all material respects, with those requirements. Also, the results of our
procedures did not disclose any immaterial instances of noncompliance with those requirements.
This report is intended for the information of the Governing Board and management of the Salina -
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report which, upon acceptance by the Salina- SalinE: County Board of
Health, is a matter of public record.
Respectfully submitted,
Salina, Kansas /) °"✓ L� G
J
May 26, 1994
-22-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 1993
Program Finding /Noncompliance Costs
None
-23-
HOME OFFICE:
P. O. BOX 1100
SALINA. KANSAS 67402 -1100
913- 825 -1561
KENNEDY AND CO E, LLC
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF
FEDERAL FINANCIAL ASSISTANCE
To the Governing Board
Salina - Saline County Board of Health
Salina, Kansas:
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
We have audited the financial statements of the Salina - Saline County Board of Health, for the year
ended December 31, 1993, and have issued our report thereon dated May 26, 1994. These financial
statements are the responsibility of the Salina - Saline County Board of Health's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government
Auditing Standards, issued by the Comptroller General of the United States, and the provisions of
Office of Management and Budget Circular A -128, "Audits of State and Local Governments." Those
standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
Our audit was conducted for the purpose of forming an opinion on the financial statements of the
Salina - Saline County Board of Health taken as a whole. The accompanying Schedule of Federal
Financial Assistance is presented for purposes of additional analysis and is not a required part of the
financial statements. The information in that schedule has been subjected to the auditing procedures
applied in the audit of the financial statements and, in our opinion, is fairly presented in all material
respects in relation to the financial statements taken as a whole.
Respectfully submitted,
Salina, Kansas
May 26, 1994 O
-24-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
Beginning
Balance Revenues
January 1, Local
1993 Grants Match
Ending
Balance
December 31,
Expenditures 1993
$ (1,765) $ 221,665 $ - $ 220,706 $ (806)
300,995 - 302,339 (1,344)
(1,765) 522,660 - 523,045 (2,150)
(783)
8,633
4,130
13,036
(1,056)
-
8,523
3,501
12,025
(1)
-
4,251
4,864
9,114
1
-
3,379
-
3,379 (a)
-
-
1,433
-
1,680
(247)
-
4,800
-
4,875
(75)
-
5,075
-
5,075
-
(1)
37,188
13,580
50,768 (b)
(1)
-
38,843
19,530
58,986
(613)
1
17,689
38,666
56,356
-
-
17,691
23,466
41,156
1
-
2,050
-
2,331
(281)
(843)
1,769
-
1,769
(843)
-
8,098
-
8,098
-
-
6,761
-
6,761
-
(1,626)
166,183
107,737
275,409
(3,115)
$ (3,391)
5 688,843
$ 107,737
S 798,454
$ (5,265)
-25-
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS
December 31, 1993 and 1992
KENNEDY AND COE, LLC
Certified Public Accountants
Salina, Kansas
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
CONTENTS
Page
FINANCIAL INFORMATION
INDEPENDENT AUDITORS' REPORT 1
Exhibit A BALANCE SHEETS 2
Exhibit B STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE AND COMPARISON WITH BUDGET 3
Exhibit C STATEMENTS OF EXPENDITURES AND COMPARISON
WITH BUDGET 4
NOTES TO FINANCIAL STATEMENTS 5 -10
Supplemental Information
Schedule 1 Grants from the Kansas State Department of Health
and Environment 11
Schedule 2 Fees for Services
IN
INTERNAL CONTROL AND COMPLIANCE INFORMATION
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 13 -14
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS 15
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE
USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 16 -18
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE
PROGRAMS 19 -20
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL
REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE
PROGRAMS 21
Contents
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
CONTENTS (CONTD.)
Page
INTERNAL CONTROL AND COMPLIANCE INFORMATION (CONTD.)
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL
ASSISTANCE PROGRAM TRANSACTIONS 22
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 23
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL
ASSISTANCE 24
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 25
Contents
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL INFORMATION
KENNEDY AND COE, LLC
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
HOME OFFICE: KANSAS
P.O. BOX 1100 NEBRASKA
SALINA. KANSAS 67402 -11 DO OKLAHOMA
913- 8251561 COLORADO
INDEPENDENT AUDITORS' REPORT
To the Governing Board
Salina - Saline County Board of Health
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, 1993 and 1992 as fished in the table of
contents. These financial statements are the responsibility of the Board of Health's management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards, the Kansas
Municipal Audit Guide, Government Auditing Standards, issued by the Comptroller General of the
United States, and the provisions of Office of Management and Budget Circular A -128, "Audits of
State and Local Governments ". Those standards and OMB Circular A -128 require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
Salina - Saline County Board of Health does not maintain a general fixed assets account group and,
accordingly, fixed assets are not included in the accompanying financial statements, which should be
included in order to conform to generally accepted accounting principles.
In our opinion, except that the omission of the general fixed assets account group results in an
incomplete presentation as discussed above, the financial statements referred to in fie first paragraph
present fairly, in all material respects, the financial position of the Salina - Saline County Board of
Health at December 31, 1993 and 1992, and the results of its operations and changes in its fund
balance for the years then ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion 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. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements
referred to above and, in our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
Respectfully submitted,
Salina, Kansas
May 26, 1994
Certified Public Accountant in charge
of and actively engaged on this audit. -1-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
BALANCE SHEETS
ASSETS
Cash
Accounts receivable
State of Kansas Department of Health and Environment
(Note 5)
Home care
Medicare adjustments receivable (Note 6)
Totals
LIABILITIES AND FUND BALANCE
Liabilities
Vouchers payable
Accrued salaries
Accrued liability for compensated absences
Deferred income
Funds advanced for future restricted purposes (Note 5)
Fund Balance (Exhibit B)
Exhibit A
December 31,
1993 1992
$ 612,490 $ 455,496
142,274 103,158
96,769 84,081
$
898,53"i 711,004
$ 102,301
41,865
8, 98:�
$ 33,305
27,113
13,001
Unreserved 633,753 575,781
Reserved for encumbrances 23,000 -
Totals $ 898,531 $ 711,004
The accompanying notes are an integral part
of these financial statements.
WA
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
STATEMENTS OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
AND COMPARISON WITH BUDGET
Revenues
Appropriation from Saline
County, Kansas (Note 4)
Appropriation from City of
Salina, Kansas (Note 4)
Grants from the State
Department of Health
and Environment
Fees for services
Interest income
Miscellaneous revenues
Total Revenues
Expenditures (Exhibit C)
Excess (Deficit) of Revenues
over Expenditures
1993 '1992
Actual Budget Actual
Exhibit B
Budget
$ 199,159
$ 205,000
$ 197,574
199,159
274,000
274,000
267,212
267,212
776,632
546,995
691,259
480,995
778,143
345,000
638,953
300,500
18,253
20,000
18,577
17,000
24,566
10,000
29,262_
5,000
2,070,753
1,400,995
1,842,837
1,269,866
1,989,781
1,600,425
1,706,495_
1,408,547
80,972
(199,430)
136,342
(138,681)
Fund Balance, January 1 575,781 200,000 439,439_ 148,000
Fund Balance, December 31 $ 656,753 $ 570 $ 575,781 $ 9,319
The accompanying notes are an integral part
of these financial statements.
-3-
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Year Ended December 31, 1993
Federal Program
CFDA Or Award
Federal Grantor /Pass - Through Grantor /Program Title Number Amount
MAJOR PROGRAMS
U.S. Department of Agriculture
Passed Through State of Kansas Department of Health and Environment
Special Supplemental Food Program for Women, Infants,
and Children - '92/'93 10.557 $ 466,589
Special Supplemental Food Program for Women, Infants,
and Children - '93/'94 10.557 421,492
TOTAL MAJOR PROGRAMS
OTHER FEDERAL ASSISTANCE
U.S. Department of Health and Human Services
Passed Through State of Kansas Department of Health and Environment
Preventative Health and Health Services Block Grant
Lay Home Visitor /Healthy Start Program - '92/'93 93.99'1 17,708
Lay Home Visitor /Healthy Start Program - '93/'94 93.9911 17,148
Maternal and Child Health Services Block Grant
Child Health - '93/'94
93.994
8,500
Child Health Assessment - '92/'93
93.994
4,342
Child Health Assessment -'93/'94
93.994
4,342
Salina Outreach Clinic Services - '92/'93
93.994
9,150
Salina Outreach Clinic Services - '93/'94
93.994
9,150
Maternal and Infant Program - '92/'93
93.994
74,374
Maternal and Infant Program - '93/'94
93.994
78,912
Family Planning - Services - '92/'93
9 3.2 17
35,380
Family Planning - Services - '93/'94
9 3.2 17
35,380
Acquired Immunodeficiency Syndrome (AIDS) Activity
AIDS Counseling and Testing Site Program - '92/'93
93.115
2,200
AIDS Counseling and Testing Site Program - '93/'94
93.115
3,538
Child Welfare Services
Child Care Institutions Licensing - '92/'93 93.645 13,523
Child Care Institutions Licensing - '93/'94 93.645 13,523
TOTAL OTHER FEDERAL ASSISTANCE
Totals
(a) Includes $1,323 refunded to Kansas Department of Health and Environment
(b) Includes $8,047 refunded to Kansas Department of Health and Environment
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
STATEMENTS OF EXPENDITURES
AND COMPARISON WITH BUDGET
Personal Services
Salaries
Social security
Retirement
Health insurance
Unemployment insurance
Professional services
Contractual services
Therapeutic devices and
appliances
Auditing
Accounting
Building and grounds repair
Telephone
Mileage
Service contracts and equipment
lease
Insurance
Expendable supplies
Office supplies
Office repair and maintenance
Postage and express
Books, dues and subscriptions
Equipment maintenance and repair
Gasoline and oil
Clinical and medical supplies
Chemicals
Veterinary and medical services
Animal maintenance
Professional meetings
Miscellaneous expense
Unexpended grant funds returned
Capital equipment
Exhibit C
1993
1992
Actual
Budget
Actual
Budget
$ 1,133,403 $
866,396
$ 959,108 $
819,818
80,021
66,891
71,648
62,716
17,475
16,614
14,689
14,758
140,124
140,000
151,968
109,236
1,093
874
954-
819
279,692
195,000
218,813
130,000
-
250
-
1,000
7,680
7,500
7,424
7,500
57
500
122'
500
10,322
10,000
11,554
8,000
7,695
7,500
5,425
6,000
56,594
40,000
50,899
37,500
2,480
4,400
2,353
4,400
16,890
40,000
38,114
46,000
35,898
32,000
38,429
26,800
100
-
42
5,000
9,544
10,000
9,501
8,500
3,033
3,500
4,713
2,000
2,389
4,000
1,658
4,000
1,831
3,000
1,942
3,000
106,294
54,000
73,419
40,000
6,664
10,000
6,462
10,000
5,341
4,000
5,487
4,000
2,335
6,000
2,661
6,000
9,733
8,000
14,823
6,000
4,601
-
1,264
-
9,073
-
-
-
39,419
70,000
13,023
45,000
Total Expenditures $ 1,989,781 $ 1,600,425 $ 1,706,495 $ 1,408,547
The accompanying notes are an integral part
of these financial statements.
M
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1993 and 1992
1. Summary of Significant Accounting Policies
A. Reporting Entity
The Salina - Saline County Board of Health was formed on June 28, 195!5, 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.
Based on the criteria set forth in Statement No. 14 of the Governmental Accounting Standards
Board, 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 the principles of fund
accounting in order to ensure observance of limitations and restrictions placed on the use of
resources available. This is the procedure by which resources are classified for accounting
and reporting into funds established according to their nature and purposes. The significant
accounting policies followed by the Board of Health are described below to enhance the
usefulness of the financial statements to the reader.
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 prior or soon enough thereafter to be used to pay
liabilities of the current period. Revenues from cost - reimbursement grarts are recognized
in the period the expenditure is made.
Deferred revenues arise when grant monies are received prior to the incurrence of
qualifying expenditures. In subsequent periods, when both revenue recognition criteria are
met, or when the Board of Health has a legal claim to the resources, the liability for
deferred revenue is removed from the balance sheet and revenue is recognized.
2) Generally accepted accounting principles require that a general fixed assets account group
be maintained. The accompanying financial statements do not conform with generally
accepted accounting principles in that a general fixed assets account group is not included.
The Board of Health has obtained a waiver from the Director of Accounts and Reports of
the requirements of K.S.A. 75 -1120a as related to the preparation and maintenance of a
general fixed assets account group.
-5-
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) Reimbursements under the Medicare program are subject to adjustment after the end of
the year, based upon audited "reasonable costs" incurred in providing the services.
Estimated settlements receivable from or payable to Medicare are recognized in the year
services are provided. Differences between estimated settlements and final settlements as
determined by the Intermediary are recorded as an adjustment in the year settled.
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.
3. Cash and Investments
Deposits - At December 31, 1993 and 1992, respectively, the carrying amount of the Board of
Health's deposits were $612,490 and $455,496, and the bank balances were $651,566 and
$519,064. The December 31, 1993 and 1992, bank balances were 100% insured by federal
depository insurance or collateralized by securities provided by the depository financial institution.
In accordance with Kansas statutes, the collateral securities were held under joint custody receipts
issued by a third -party bank, which bank is independent of the depository financial institution.
Investments - Kansas municipalities, such as the Salina - Saline County Board of Health, are
authorized by Kansas statutes to invest cash balances generally in:
(1) Temporary notes or no fund warrants issued by the investing governmental unit,
(2) Time deposits, open accounts,
(3) Time certificates of deposit, and
(4) Repurchase agreements.
Other investment options are available if eligible financial institutions cannot or will not make the
investments described in (2) and (3) above available at interest rates equal to or greater than the
statutory investment rate. The Board of Health had no such investments during the years 1993
and 1992.
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.
Saline County, Kansas
Regular tax appropriation
City of Salina, Kansas
Regular tax appropriation
1993 1992
IN
5. Grants from the State of Kansas Department of Health and Environment
Agreements were in effect during 1993 and 1992 with the State of Kansas Department of Health
and Environment regarding certain grants which were funded by federal and state monies. Current
agreements are for the state's fiscal year ended June 30, 1994. Unless specifically noted, the
grants are payable 25% on or about July 1, and 12.5% on our 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
Child Health Program
Matching funds are provided to furnish programs to promote optimum health for
children. The current agreement provides that the Board of Health will receive $8,500.
Maternal and Infant Program
Matching funds are provided to furnish comprehensive health care for adolescent and
other high risk mothers and their infants. The current agreement provides that the
Board of Health will receive $78,912.
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 $35,380.
Special Supplemental Food Program for Women, Infants, and Children
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 lip to age 5 years.
The current agreement provides that the Board of Health will be reimbursed monthly for
actual expenses up to an annual total of $421,492.
Outreach Clinic Services
Reimbursements are provided for coordination of Cardiac and Neurology Outreach
Clinics at Salina. The current agreement provides that the Board of Health will be
reimbursed quarterly for actual expenses up to an annual total of $10,675.
Healthy Start/Home Visitor Program
Matching funds are provided to furnish home and hospital visits by trained lay visitors to
families with a newborn infant and to pregnant women. The current agreement
provides that the Board of Health will receive $17,045.
AIDS Counseling and Testing Site Program
Funds are provided for the counseling and testing of Acquired Immune Deficiency
Syndrome. The current agreement provides that the Board of Health will receive $20
per AIDS test submitted to the State Department Lab payable quarterly, not to exceed
$3,538 for the current contract period.
-7-
Child Care 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 $13,523 payable in quarterly amounts based on number of licenses issued.
Child Health Assessment
Funds are provided to furnish child health assessments at school entry for
kindergartners and other first time school entrants. The current agreement provides
that the Board of Health will receive $4,342.
State Programs
Food Service Licensing Program
Funds are provided for the evaluation, registration, and licensing of food service
establishments. The current agreement provides that the Board of Health will receive
80% of annual licensing fees, payable monthly.
General Health Services - State Formula Grant
Matching funds are provided to help insure that adequate health seriices are available
to the Saline County Community. The current agreement provides that the Board of
Health will receive $35,668 payable in quarterly installments.
AIDS Health Education /Risk Reduction Program
Funds are provided to identify, coordinate, and provide public information and
education regarding Acquired Immune Deficiency Syndrome. The current agreement
provides that the Board of Health will receive $4,662.
Local Environmental Protection Program
Funds are provided for the development of the Ellsworth County Sanitary Code. The
current agreement provides that the Board of Health will receive $41,116.
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 income at December 31, 1993 and 1992.
December 31,
1993 1992
Accounts Receivable
Special Supplemental Food Program for
Women, Infants, and Children $ 132,456 $ 95,391
Food Service Licensing Program 7,280 5,592
Outreach Clinic Services 2,538 2,175
Total Accounts Receivable 8 142.274 S 103.158
Deferred Income
General Health Services - State Formula Grant $ 8,983 $ 9,167
Healthy Start/Home Visitor Program - 2,144
Child Care Licensing Program - 1,690
Total Deferred Income $ 8.983 S 13.001
53
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. Reimbursements under these programs are subject to
adjustment after the end of the year, as discussed in Note 1 above.
Accounts receivable at December 31, 1993 and 1992, include $46,998 and $68,269, respectively,
for the estimated settlement of the annual Medicare cost statement.
7. Defined Benefit Pension Plan
Substantially all full -time employees of the Board of Health participate in the Kansas Public
Employees Retirement System ( "System "), a multiple - employer public employee retirement
system. The payroll for employees covered by the System for the years 1993 and 1992 were
$919,747 and $816,075, respectively. The total payroll was $1,133,403 and $959,108 for the
years 1993 and 1992, respectively.
Substantially all employees of the Board of Health are eligible to participate in the System after
one year of employment. Employees who retire at or after age 65 or age 62 with ten years service
credit or at any age when years of service plus age equal 85 "points" are entitled to a retirement
benefit, payable monthly for life, equal to one percent of their final average salay for each year of
"prior" service and 1.75 percent for each year of "participating" service. Final average salary is the
employee's average salary over the higher of four years of credited service including add -ons such
as accrued sick leave and vacation leave or a three year average without add -ons. For those
hired July 1, 1993 or later, final average salary is a three year average with no ;add-ons. Benefits
fully vest on reaching ten years of service. Vested employees may retire at age 55 and receive
reduced retirement benefits. The system also provides death and disability benefits. Benefits are
established by State statute.
Covered employees are required by State statute to contribute four percent of their salary to the
plan. The employer is required by the same statute to contribute the remaining amounts
necessary to pay benefits when due. The contribution requirement for the years 1993 and 1992,
respectively, were $54,265 and $47,932, which consisted of $17,475 and $14,689 from the
employer and $36,790 and $33,243 from employees; these contributions represented 1.9% and
4% of covered payroll for 1993 and 1.8% and 4.1% of covered payroll for 1992.
The "pension benefit obligation" is a standardized disclosure measure of the present value of
pension benefits, adjusted for the effects of projected salary increases and step -rate benefits,
estimated to be payable in the future as a result of employee service to date. The measure, which
is the actuarial present value of credited projected benefits, is intended to help users assess the
System's funding status on a going- concern basis, assess progress made in accumulating
sufficient assets to pay benefits when due, and make comparisons among PERS and employers.
The System does not make separate measurements of assets and pension benefit obligation for
individual employers. The pension benefit obligation at June 30, 1993, for the System as a whole,
determined through an actuarial valuation performed as of that date, was $5.28 billion. The
System's net assets available for benefits on that date (valued at market) were estimated to be
$4.96 billion, leaving an unfunded pension benefit obligation estimated at $320 million.
Ten -year historical trend information showing the System's progress in accumulating sufficient
assets to pay benefits when due is presented in the System's June 30, 1993, Comprehensive
Annual Financial Report.
8. Compliance with Kansas Statutes
The Board of Health's bank balances on January 31, 1993, exceeded the markE:t value of pledged
securities and FDIC insurance coverage, and the Board of Health did not obtain a pledge of the
depository's securities for such excess balance, which appears to be a violation of the requirement
of K.S.A. 9 -1402. No other statutory violations were noted.
9. Subsequent Event
On February 22, 1994 the Salina - Saline County Board of Health approved a bid of $348,660 to
remodel the building at 236 -240 North Seventh Street, Salina, Kansas, to be used as the new
facilities.
-10-
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUPPLEMENTAL INFORMATION
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Schedule 1
GRANTS FROM THE KANSAS STATE DEPARTMENT
OF HEALTH AND ENVIRONMENT
State Programs
Child Care Licensing Program - 4,301
Food Service Licensing Program 12,104 16,208
General Health Services - State Formula Grant 36,300 36,522
AIDS Health Education /Risk Reduction Program 5,245 4,819
Local Environmental Protection Program 34,140_ 41,278
Total State Programs 87,789 103,128
Total Grants $ 776,632 $ 691,259
-11-
1993
1992
Federal Programs
Maternal and Child Health Program
$ -
$ 4,185
Child Health Program
4,251
-
Maternal and Infant Program
76,031
41,883
Family Planning Program
35,380
32,161
Women, Infants, and Children Supplemental Food
Program
522,660
478,698
Outreach Clinic Services
9,875
7,713
Healthy Start/Home Visitor Program
17,156
14,741
AIDS Counseling and Testing Site Program
3,819
1,989
Child Care Licensing Program
14,859
6,761
Child Health Assessment Program
4,812_
-
Total Federal Programs
688,843
588,131
State Programs
Child Care Licensing Program - 4,301
Food Service Licensing Program 12,104 16,208
General Health Services - State Formula Grant 36,300 36,522
AIDS Health Education /Risk Reduction Program 5,245 4,819
Local Environmental Protection Program 34,140_ 41,278
Total State Programs 87,789 103,128
Total Grants $ 776,632 $ 691,259
-11-
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FEES FOR SERVICES
Title XVIII
Title XIX
Patients and insurance
Home care services
Homemaker services
Family planning services
General nursing clinics
Environmental health fees
Day care provider fees
Senior care fees
Child health assessment fees
Total Fees for Services
1993
$ 372,699
206,684
54,296
15,591
9,349
38,516
69,999
5,203
3,417
398
1,991
R
Schedule 2
1992
318,801
198,845
22,307
10,568
11,593
36,218
36,420
4,201
$ 778,143 $ 638,953
-12-
SALINA- SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
INTERNAL CONTROL AND COMPLIANCE INFORMATION
KENNEDY AND COE, LLC
CERTIFIED PUBLIC ACCOUNTANTS
HOME OFFICE: OFFICES IN
P. O. BOX 1100 KANSAS
SALINA, KANSAS 8740 NEBRASKA 2 -1100 OKLAHOMA
913-825-1561
COLORADO
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL.
STRUCTURE BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Governing Board
Salina - Saline County Board of Health
Salina, Kansas:
We have audited the accompanying financial statements of Salina - Saline County Board of Health, for
the year ended December 31, 1993, and have issued our report thereon dated May 26, 1994.
We conducted our audit in accordance with generally accepted auditing standards; Government
Auditing Standards, issued by the Comptroller General of the United States; and the provisions of
Office of Management and Budget (OMB) Circular A -128, "Audits of State and Local Governments."
Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
In planning and performing our audit of the financial statements of Salina - Saline County Board of
Health for the year ended December 31, 1993, we considered its internal control structure in order to
determine our auditing procedures for the purpose of expressing our opinion on the financial
statements and not to provide assurance on the internal control structure.
The management of the Salina - Saline County Board of Health is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition, and that transactions are executed in accordance with
management's authorization and recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles. Because of inherent limitations in any
internal control structure, errors, or irregularities may nevertheless occur and not be detected. Also,
projection of any evaluation of the structure to future periods is subject to the risk that procedures
may become inadequate because of changes in conditions or that the effectiveness of the design and
operation of policies and procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control structure policies and
procedures in the following categories:
Accounting Controls
1. Revenues /receipts
2. Expenditures /purchases /disbursements
3. Cash and investment balances
4. Financial reporting
-13-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
For all of the internal control structure categories listed above, we obtained an understanding of the
design of relevant policies and procedures and determined whether they have been placed in
operation, and we assessed control risk.
Our consideration of the internal control structure would not necessarily disclose all matters in the
internal control structure that might be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material weakness is a reportable condition in
which the design or operation of one or more of the internal control structure elements does not
reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in
relation to the financial statements being audited may occur and not be detected within a timely period
by employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control structure and its operation that we consider to be material weaknesses as
defined above.
However, we noted certain matters involving the internal control structure and its operation that we
have reported to the management of the Salina - Saline County Board of Health, in a separate letter
dated May 26, 1994.
This report is intended for the information of the Governing Board and management of the Salina -
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report which, upon acceptance by the Salina - Saline County Board of
Health, is a matter of public record.
Salina, Kansas
May 26, 1994
Respectfully submitted,
Z
J
-14-
KENNEDY AND CO E, LLC
CERTIFIED PUBLIC ACCOUNTANTS
HOME OFFICE: OFFICES IN
P. O. BOX 1100 KANSAS
NEBRASKA
SALINA. KANSAS 8 7 402 -1 1 00 OKLAHOMA
D13�2S1561 COLORADO
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Governing Board
Salina - Saline County Board of Health
Salina, Kansas:
We have audited the financial statements of the Salina - Saline County Board of Health for the year
ended December 31, 1993, and have issued our report thereon dated May 26, 1994.
We conducted our audit in accordance with generally accepted auditing standards, Government
Auditing Standards, issued by the Comptroller General of the United States, and the provisions of
Office of Management and Budget Circular A -128, "Audits of State and Local Governments." Those
standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the Salina - Saline County Board
of Health is the responsibility of the Board of Health's management. As part of obtaining reasonable
assurance about whether the financial statements are free of material misstatement, we performed
tests of the Board of Health's compliance with certain provisions of laws, regulations, contracts and
grants. However, the objective of our audit of the financial statements was not to provide an opinion
on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Salina - Saline County Board
of Health complied, in all material respects, with the provisions referred to in the preceding paragraph.
With respect to items not tested, nothing came to our attention that caused us to believe that the
Board of Health had not complied, in all material respects, with those provisions.
We noted one instance of noncompliance, as disclosed in Note 8 to the financial statements, that
does not result in misstatements in the financial statements.
This report is intended for the information of the Governing Board and management of the Salina -
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report which, upon acceptance by the Salina - Saline County Board of
Health, is a matter of public record.
Respectfully submitted,
Salina, Kansas
May 26, 1994
-15-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
KENNEDY AND COE, LLC
CERTIFIED PUBLIC ACCOUNTANTS
HOME OFFICE: OFFICES IN
P. O. BOX 1100 KANSAS
SALIVA, KANSAS 87x02 -1100
NEBRASKA
913825 -1561 OKLAHOMA
COLORADO
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL
CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL
FINANCIAL ASSISTANCE PROGRAMS
To the Governing Board
Salina - Saline County Board of Health
Salina, Kansas:
We have audited the financial statements of Salina - Saline County Board of Health, for the year ended
December 31, 1993, and have issued our report thereon dated May 26, 1994. We have also audited
the Salina - Saline County Board of Health's compliance with requirements applicable to major federal
financial assistance programs and have issued our report thereon dated May 26, 1994.
We conducted our audits in accordance with generally accepted auditing standards; Government
Auditing Standards, issued by the Comptroller General of the United States; and Office of
Management and Budget (OMB) Circular A -128, "Audits of State and Local Governments." Those
standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement and about
whether the Salina - Saline County Board of Health complied with laws and regulations, noncompliance
with which would be material to a major federal financial assistance program.
In planning and performing our audits for the year ended December 31, 1993, we considered the
internal control structure of the Board of Health in order to determine our auditing procedures for the
purpose of expressing our opinions on the Board of Health's financial statements and on its
compliance with requirements applicable to major federal financial assistance programs and to report
on the internal control structure in accordance with OMB Circular A -128. This report addresses our
consideration of internal control structure policies and procedures relevant to compliance with
requirements applicable to federal financial assistance programs. We have addressed internal control
structure policies and procedures relevant to our audit of the financial statements in a separate report
dated May 26, 1994.
The management of the Salina - Saline County Board of Health is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition, that transactions are executed in accordance with
management's authorization and recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles, and that federal financial assistance
programs are managed in compliance with applicable laws and regulations. Because of inherent
limitations in any internal control structure, errors, irregularities, or instances of noncompliance
-16-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
may nevertheless occur and not be detected. Also, projection of any evaluation the structure to future
periods is subject to the risk that procedures may become inadequate because of changes in
conditions or that the effectiveness of the design and operation of policies and procedures may
deteriorate.
For the purpose of this report, we have classified the significant internal control structure policies and
procedures used in administering federal financial assistance programs in the following categories:
Accounting Controls
1. Revenues /receipts
2. Expenditures /purchases /disbursements
3. Cash and investment balances
4. Financial reporting
Administrative Controls
General Requirements
1. Political activity
2. Civil Rights
3. Drug -free Workplace
4. Allowable Costs /Cost Principles
Specific Requirements
1.
Types of services
2.
Eligibility
3.
Matching
4.
Reporting
5.
Cost allocation
6.
Special tests and provisions
For all of the internal control structure categories listed above, we obtained an understanding of the
design of relevant policies and procedures and determined whether they have been placed in
operation, and we assessed control risk.
During the year ended December 31, 1993, the Salina - Saline County Board of Health expended 66%
of its total federal financial assistance under major federal financial assistance programs.
We performed tests of controls, as required by OMB Circular A -128, to evaluate the effectiveness of
the design and operation of internal control structure policies and procedures that we considered
relevant to preventing or detecting material noncompliance with specific requirements, general
requirements, and requirements governing claims for advances and reimbursements that are
applicable to each of the Board of Health's major federal financial assistance programs, which are
identified in the accompanying Schedule of Federal Financial Assistance. Our procedures were less
in scope than would be necessary to render an opinion on these internal control structure policies and
procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure would not necessarily disclose all matters in the
internal control structure that might be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material weakness is a reportable condition in
which the design or operation of one or more of the internal control structure elements does not
reduce to a relatively low level the risk that noncompliance with laws and regulations that would be
Hire
material to a federal financial assistance program may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control structure and its operation that we consider to be material
weaknesses as defined above.
However, we noted certain matters involving the internal control structure and its operation that we
have reported to the management of the Salina - Saline County Board of Health, in a separate letter
dated May 26, 1994.
This report is intended for the information of the Governing Board and management of the Salina -
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report which, upon acceptance by the Salina - Saline County Board of
Health, is a matter of public record.
Salina, Kansas
May 26, 1994
Respectfully submitted,
�1� '_�
0� 77_�
IN
K E N N E D Y AND C O E , L L C
CERTIFIED PUBLIC ACCOUNTANTS
HOME OFFICE: OFFICES IN
P. O. BOX 1100 KANSAS
SALINA. KANSAS 67402.1100
NEBRASKA
913- 825 -1561 OKLAHOMA
COLORADO
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL
ASSISTANCE PROGRAMS
To the Governing Board
Salina - Saline County Board of Health
Salina, Kansas:
We have audited the financial statements of the Salina - Saline County Board of Health for the year
ended December 31,1993, and have issued our report thereon dated May 26, 1994.
We have audited the Salina - Saline County Board of Health's compliance with the requirements
governing types of services allowed or unallowed; eligibility; reporting and special tests and provisions
that are applicable to each of its major federal financial assistance programs, which are identified in
the accompanying Schedule of Federal Financial Assistance, for the year ended December 31, 1993.
The management of the Salina - Saline County Board of Health is responsible for the Board of Health's
compliance with those requirements. Our responsibility is to express an opinion on compliance with
those requirements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government
Auditing Standards, issued by the Comptroller General of the United States, and Office of
Management and Budget Circular A -128, "Audits of State and Local Governments." Those standards
and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance
about whether material noncompliance with the requirements referred to above occurred. An audit
includes examining, on a test basis, evidence about the Salina - Saline County Board of Health's
compliance with those requirements. We believe that our audit provides a reasonable basis for our
opinion.
The results of our audit procedures did not disclose any immaterial instances of noncompliance with
the requirements referred to above.
In our opinion, the Salina - Saline County Board of Health complied, in all material respects, with the
requirements governing types of services allowed or unallowed; eligibility; reporting and special tests
and provisions that are applicable to each of its major federal financial assistance programs for the
year ended December 31, 1993.
-19-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE A1CPA DIVISION FOR CPA FIRMS
This report is intended for the information of the Governing Board and management of the Salina -
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report, which, upon acceptance by the Salina - Saline County Board of
Health, is a matter of public record.
Respectfully submitted,
Salina, Kansas
May 26, 1994
-20-
KENNEDY AND COE, LLC
CERTIFIED PUBLIC ACCOUNTANTS
HOME OFFICE:
OFFICES IN
P. O. BOX 1100
KANSAS
SALINA. KANSAS 87402 -1100
NEBRASKA
913-82$ -1561
OKLAHOMA
COLORADO
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE
GENERAL REQUIREMENTS APPLICABLE TO FEDERAL
FINANCIAL ASSISTANCE PROGRAMS
To the Governing Board
Salina - Saline County Board of Health
Salina, Kansas:
We have audited the financial statements of the Salina - Saline County Board of Health for the year
ended December 31, 1993, and have issued our report thereon dated May 26, 1994.
We have applied procedures to test the Salina - Saline County Board of Health's compliance with the
following requirements applicable to its federal financial assistance programs, which are identified in
the Schedule of Federal Financial Assistance, for the year ended December 31, 1993: political
activity, civil rights, Drug -free Workplace Act, and allowable costs /cost principles.
Our procedures were limited to the applicable procedures described in the Office of Management and
Budget's "Compliance Supplement for Single Audits of State and Local Governments." Our
procedures were substantially less in scope than an audit, the objective of which is the expression of
an opinion on the Salina - Saline County Board of Health's compliance with the requirements listed in
the preceding paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the second paragraph of this report. With respect to
items not tested, nothing came to our attention that caused us to believe that the Salina - Saline County
Board of Health had not complied, in all material respects, with those requirements. Also, the results
of our procedures did not disclose any immaterial instances of noncompliance with those
requirements.
This report is intended for the information of the Governing Board and management of the Salina -
Saline County Board of Health, the State of Kansas Department of Health and Environment, the
cognizant federal agency, and other applicable federal audit agencies. This restriction is not intended
to limit the distribution of this report, which, upon acceptance by the Salina- Saline County Board of
Health, is a matter of public record.
Respectfully submitted,
Salina, Kansas
May 26, 1994
J
-21-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS