Audit - 1971
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
REPORT ON EXAMINATION
December 31, 1971
KENNEDY AND COE
Certified Public Accountants
Salina - Kansas
Exhibit A
Exhibit B
Schedule 1
Schedule 2
Schedule 3
Schedule 4
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
INDEX
ACCOUNTANTS' OPINION
STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES -
GENERAL FUND
AUDIT ADJUSTMENT
Note to Financial Statements
Insurance and Fidelity Bond Coverage
Depository Security Coverage
Comparison of Available Cash Balances with Encumbrances
Grants from the Kansas State Department of Health
ACCOUNTANTS' COMMENTS
Page
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5
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9-11
Index
KENNEDY AND CaE
MEMBERS
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN KANSAS
SALINA
CONCORDIA
GREAT BEND
OBERLIN
COLBY
GOODLAND
WICHITA
OF
AMERICAN INSTITUTE
OF
CERTIFIED
PUBLIC ACCOUNTANTS
To the Salina-Saline County Board of Health:
We have examined the statements of receipts, expenditures, and balances of the
Salina-Saline County Board of Health, Salina, Kansas, for the period January 1
to December 31, 1971. Our examination was made in accordance with the provisions
of the Minimum Standard Audit Program approved by the State Municipal Accounting
Board and accordingly included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
Final amounts receivable from, or payable to, the Social Security Administration
under the Title XVIII (Medicare) and Title XIX (Medicaid) programs have not been
determined as more fully explained in Note 1 to the financial statements. Final
determination of these amounts could have a material effect on the unencumbered
cash balance at December 31, 1971, and the expenditures applicable to the current
year.
In our opinion, except for the final adjustments explained in the pireceding para-
graph, the accompanying statements of receipts, expenditures, and balances present
fairly the cash position of the Salina-Saline County Board of Health, Salina, Kansas,
as of December 31, 1971, and the financial transactions for the year then ended, in
conformity with accounting practices generally followed by municipalities applied on
a basis consistent with that of the preceding year.
Respectfully submitted,
Salina, Kansas
January 6, 1972
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C.P.A.
Licensed Municipal ublic Accountant
in charge of and actively engaged
on this audit.
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
STATEMENT OF RECEIPTS, EXPENDITURES,
AND BALANCES - GENERAL FUND
Year Ended December 31, 1971
comparative figures for the preceding year)
(With
1971
Unencumbered Balance January 1
$ 26,616
Receipts
Appropriation from Saline County, Kansas
Appropriation from City of Salina, Kansas
Cost statement reimbursements
Medicare
Title XIX
Grants from the State Department of Health -
Schedule 4
Grants - Dairy products inspection
Fees - Home Health Services
Title XVIII (Medicare)
Title XIX (Medicaid)
Patients and insurance
Miscellaneous receipts
Total Receipts
Total Receipts and Beginning Balance
37,756
37,850
19,751
8,145
27,941
1,800
6,097
550
659
140,549
167,165
Expenditures
Salaries
Mileage
Social Security taxes
Retirement benefits
Capital equipment
Chemicals for insect control
Telephone
Postage and freight
Office supplies
Printing
Books and subscriptions
Auditing
Repairs and maintenance - Buildings and grounds
Repairs and maintenance - Office
Professional meetings
Laundry
98,920
3,876
4,685
4,397
862
2,147
1 , 714
1,002
2,133
546
245
780
12
893
4
1970
L!l,900
37,336
37,850
19,424
25,,211
900
6,493
2,181
769
25
--
~189
~O89
92,477
3,158
4 , 084
3,792
2,934
1,206
1,732
798
2,316
630
214
643
38
82
288
21
Exhibit A
Increase
(Decrease)
$
8.716
420
327
8,145
2,730
900
(396)
(1,631)
(110)
(25)
10.360
19,076
6 ,443
718
601
605
(2,072)
941
(18)
204
(183)
(84)
31
137
(38)
(70)
605
(17)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
STATEMENT OF RECEIPTS, EXPENDITURES,
AND BALANCES - GENERAL FUND
Year Ended December 31, 1971
comparative figures for the preceding
Exhibit A (Contd.)
(With
year)
Expenditures (Contd.)
Insurance
Service contracts on equipment
Clinical and medical supplies
Therapeutic development and application
Vehicle expense
Professional services
Laboratory supplies
Refunds
Miscellaneous
Total Expenditures
Increase
1971 1970 (Decrease)
$ 922 $ 7n $ 145
248 2EiS (37)
3,276 2,331 945
2,768 1 , 7 ~.2 1,026
219 450 (231)
1,228 1,286 (58)
86 123 (37)
2 11 (9)
95 55 40
131,060 121,472 9,587
36 .105 26.616 9.489
Unencumbered Balances December 31
Represented by
Cash on hand
Cash in bank
Total Cash
Deduct unpaid
purchase commitments
100 100
44,687 33,26~ 11,419
44,787 33,368 11,419
8,682 6,75~ 1,930
$ 36.105 $ 26.61~ $ 9.489
Totals
See accompanying note to financial statements
which is an integral part hereof.
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
AUDIT ADJUSTMENT
December 31, 1971
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Cash in bank
Encumbrances
To reclassify as an encumbrance, checks
written on December 31, 1971, but not
after December 31, 1971.
which were
issued until
See accompanying note to financial statements
which is an integral part hereof.
Debit
$8,176.21
Exhibit B
Credit
$8,176.21
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTE TO FINANCIAL S TA TEMENTS
December 31, 1971
1.
The Board of Health is approved by the Social Security Administration as a Home
Health Agency under the "Medicare" and "Medicaid" programs. Reimbursements
under the programs are subject to adjustment after the end of the year, based
upon audited "reasonable costs" incurred in providing the service.
Final settlement has been made on all medicare cost statements through the year
1970; however, certain years are still open to audit review by the Intermediary.
The cost statement for year 1971 has not been prepared or audited:, and amounts due
to or from the Social Security Administration applicable to 1971 have not been
determined.
Settlements under the "Medicaid" (Title XIX) program were made during 1971 for
years 1968 and 1969 for substantially the amount claimed by the Department. The
1970 cost statement claims additional payments totaling $7,816.
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Company
Maryland Casualty Company
Maryland Casualty Company
St. Paul Fire and Marine
Insurance Company
Maryland Casualty Company
Allied Mutual Insurance
Company
Maryland Casualty Company
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
INSURANCE AND FIDELITY BOND COVERAGE
December 31, 1971
Coverage
Fire and extended coverage on
contents and office equip-
ment located at 216-300 West
Ash - 100% coinsurance
Automobile liability and physi-
cal damage for 1969 IHC truck
Bodily injury
Each person
Each accident
Property damage
Each accident
Collision or upset ($100
deductible)
Comprehensive
Professional liability
Each claim
Aggregate
Workmen's Compensation
Employer's liability
Treasurer's bond
Damage or loss to Buffalo
Turbine Model C5 Sprayer
and Duster - $100 deduct-
ible
Expiration
Date
1-3-74
5-4-72
6-27-72
5 -31-7 2
Continuous
7-7-72
See accompanying note to financial statements
which is an integral part hereof.
Schedule 1
Amount
$ 25,000
100,000
300,000
50,000
Cash Value
Cash Value
100,000
300,000
Statutory
100,000
5,000
2,900
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Schedule 2
DEPOSITORY SECURITY COVERAGE
December 31, 1971
General
Fund
Gross Balance, Cash in Bank, December 31, 1971
Deduct Federal Deposit Insurance Corporation protection
$47,581
20,000
Balance
27.581
70% Security Required
19.307
Security Provided
Municipal securities and U. S. Treasury Notes pledged
$20.000
See accompanying note to financial statements
which is an integral part hereof.
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Schedule 3
COMPARISON OF AVAILABLE CASH
BALANCES WITH ENCUMBRANCES
December 31, 1971
Unencumbered
Cash Balance
12-31-71
Encumbrances
12-31-71
Cash Balance
12-31-71
General Fund
$36 .105
$8.682
$44.787
GRANTS FROM THE KANSAS STATE DEPARTMENT OF HEALTH
Year Ended December 31, 1971
(With comparative figures for the preceding year)
Schedule 4
Totals
Increase
1971 1970 (Decrease)
$ 8,191 $ 8,994 ($ 803)
12,344 10,064 2,280
7 ,406 ~.53 1,253
$27.941 $25.211 $2.730
Maternal and Child Health Project
Public Health Service Grant
Family Planning Project
See accompanying note to financial statements
which is an integral part hereof.
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
ACCOUNTANTS' COMMENTS
December 31, 1971
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
RECEIPTS, EXPENDITURES, AND BALANCES - GENERAL FUND
A statement of the receipts, expenditures, and balances of the Salina-Saline County
Board of Health, Salina, Kansas, for the year 1971 is presented under Exhibit A.
The net operating costs of the Board of Health are shared equally by the City of
Salina and Saline County, and necessary funds for this purpose are included in the
tax levies of the respective municipalities. Agreements were effe,:tive or were
made during 1971 with the State of Kansas Department of Health regarding certain
grants. The receipts from these grants are summarized on Schedule 4.
The Maternal and Child Health Project provides for the extension of the services
of public health nurses to mothers and children. One-half of the expenditures for
nurses' salaries, medical supplies, and other related expenditures are reimbursed
under this program. The current agreement is for the fiscal year ending June 30,
1972.
Public
Kansas
Health Service 3l4(d) Grant monies were received under an agreement with the
State Department of Health. The current agreement terminates on June 30,
This grant was established to aid the Board of Health in providing environ-
health programs to the public.
1972.
mental
Another agreement with the State Board of Health provides for the extension of serv-
ices in family planning. The current agreement is for the fiscal year ending June
30, 1972.
The Board also signed an agreement with the Kansas Board of Agriculture on July 1,
1971, for the performance by the Health Department of certain milk inspection and
regulatory duties, in exchange for a monthly payment of $150. The current contract
ended July 1, 1972.
The amount of indebtedness created during the year 1971, which was unpaid at Decem-
ber 31, 1971, was determined by an examination of the accounting records, invoices
received to January 6, 1972, and by reference to the minutes of the meetings of the
Board of Health. A comparison of the available cash balances with encumbrances at
December 31, 1971, is presented in Schedule 3.
Certain staff employees of the Health Department were paid minimum allowances of
$30.00 per month for the use of their personal automobile on official business,
regardless of the number of miles actually traveled. Such payments appear to be
in violation of K.S.A. 75-3201, 75-3203, and 75-3210. We suggest you obtain a
legal opinion in writing regarding these statutory provisions.
INSURANCE AND FIDELITY BONDS
A summary of insurance and fidelity bond coverage at December 31, 1971, is shown
in Schedule 1.
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It would appear that the insurance coverage of the property on hand at December 31,
1971, is adequate. We confirmed the details of the bonding company's liability on
the Treasurer's bond with the bonding company.
GENERAL
The depository security coverage during the year 1971, was not adequate to satisfy
statutory requirements of K.S.A. 9-1402, as shown by the following schedule:
Date of Violation
From To
Greatest Amount of
Insufficien~
11-11-71 11-12-71
12-15-71 12-16-71
$ 57
1,279
We suggest that peak depository agreements be entered into with the banks, so that
these violations may be avoided in the future. Schedule 2 shows the security coverage
at December 31, 1971.
A schedule of audit adjustments is shown in Exhibit B.
The minutes of the meeting of the Board of Health were examined for matters per-
taining to the audit.
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