Audit - 1975
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
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REPORT ON EXMIINATION
December 31, 1975
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HOODS & DURHAM
Certified Public Accountants
Salina, Kansas
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I Exhibit "A"
Exhibit "B"
Exhibit "c"
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Schedule 1
I Schedule 2
Schedule 3
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
INDEX
Accountant's Report. . . . . . . . . . . . . . . . .
BalanceSheet......... .'."
Receipts, Expenditures and Fund Balance. . . .
Note to Financial Statements. . . . . . . .
Supplemental Information
Investments. . . . . . . . . . .
Comparison of Depository Security
Balances on Deposit. . . . . .
Treasurer's Fidelity Bond. . . .
. . . . . . .
with
. . . .
. . . . . . . . . .
Compliance Questionnaire
Page
Number
1
2
3
4
5
6
7
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WOODS
&
DURHAM
cee~It¡:"d guUú: J1~~üNl/anl6
Øffi<~ò in
ffal/na
Way ~lI¿'t
flJeloi/
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605 W. NORTH STREET
P.O. BOX 1324
TELEPHONE - AREA 913 - 825-5494
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SALINA, KANSAS 67401
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Board of Directors
Salina Firemen's Relief Association
Salina, Kansas
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We have examined the financial statements of the various funds and account
groups listed in the table of contents of Salina Firemen's Relief Associa-
tion for the years ended December 31, 1974 and 1975. Our examination was
made in accordance with generally accepted auditing standards and the Mini-
mum Standard Audit Program approved by the State Municipal Accounting Board,
March 19, 1976, and accordingly included such tests of the accounting re-
cords and such other auditing procedures as we considered necessary in the
circumstances.
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In our opinion, the aforementioned financial statements present fairly the
financial position of the various funds and account groups of Salina Fire-
men's Relief Association at December 31, 1974 and 1975, and the results of
operations of such funds for the years then ended, in conformity with gen-
erally accepted accounting principles applied on a consistent basis.
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The accompanying supplemental schedules and related information listed in
the table of contents are not necessary for a fair presentation of the
financial statements, but are presented as additional analytical data. This
information has been subjected to the tests and other auditing procedures
applied in the examination of the financial statements mentioned above and,
in our opinion, is fairly stated in all material respects in relation to
the financial statements taken as a whole.
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AUgl~stJ5, }976
!L/ Ú¥//¿J~
W. Rex Woods, LMPA, CPA
in charge of and actively
engaged on this audit
WOODS & DURHAM
¿¿J~I ¡-d~~
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
BALANCE SHEET
December 31, 1974 and 1975
Exhibit "A"
1974
1975
ASSETS
Cash
Savings account
Certificate of Deposit
United States Treasury Bills -
(maturity value $50,000.00;
value $46,537.00)
$ 11,834.95
17,919.08
52,265.87
$ 3,073.15
32,182.08
102,265.87
at cost
market
46,105.91
TOTAL ASSETS
$128,125.81
$137,521.10
LIABILITIES, RESERVES AND FUND BALANCES
Fund balance $128,125.81 $137 , 521.10
TOTAL LIABILITIES, RESERVES
AND FUND BALANCES $128,125.81 $137,521. 10
2.
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
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REVENUE, EXPENDITURES AND FUND BALANCE
For The Years Ended December 31, 1974 and 1975
Exhibit "B"
TOTAL REVENUE
1974 1975
$ 22,095.73 $ 24,215.47
3,544.70 6,729.71
3,879.29 8,941. 62
policies 971.95 5,869.25
30,491.67 45,756.05
REVENUE
Kansas Commissioner of Insurance
Insurance premium refunds
Interest
Benefits received from insurance
EXPENDITURES
Medical and other payments to injured
firemen
Life and disability insurance premiums
Blue Cross - Blue Shield
Refund to Firemen's Benefit Fund of
overpayment to Blue Cross-Blue Shield
Insurance benefits paid out
Other
TOTAL EXPENDITURES AND ENCUMBRANCES
215. 70 1,688.74
10,116.45 10,823.30
17,374.60 15,892.45
2,253.21 4,329.05
971. 95 3,213.97
275.00 413. 25
31,206.91 36,360.76
(715.24) 9,395.29
128,841. 05 128,125.81
$128,125.81 $137,521.10
REVENUE OVER (UNDER) EXPENDITURES
FUND BALANCE JANUARY 1,
FUND BALfu~CE DECEMBER 31,
3.
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I NOTE 1 -
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
NOTE TO FINANCIAL STATEMENTS
For The Year Ended December 31, 1975
Exhibit "c"
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Salina Firemen's Relief Association
conform to generally accepted accounting principles.
BASIS OF ACCOUNTING
The modified accrual basis of accounting is used. Modifications in
such method from the accrual basis follow:
1. Revenues are recorded as received in cash except for:
a. Revenues susceptible to accrual
b. Material revenues that are not received at the normal
time of receipt
2. Expenditures are recorded on an
a. Disbursements for inventory
expenditures at the time of
are used
b. Prepaid expenses which normally are not recorded
c. Interest on long-term debt which is normally an expenditure
when due and paid
d. The encumbrance method of accounting which is adopted as an
additional modification.
accrual basis except for:
type items which are considered
purchase or at the time the items
INVESTMENTS
Investments are stated at cost.
4.
10472 7.00% $ 52,265.87 $ 52,265.87
10777 7.25% 50,000.00 50,000.00
$102,265.87 $102,265.87
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
INVESTMENTS
December 31, 1975
Issue
Date
Maturity
Date
Number
Rate
Certificate of Deposit 4- 1-74 4- 1-78
Certificate of Deposit 7-16-75 7-16-79
Schedule 1
Cost
Maturity
Value
5.
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
COMPARISON OF DEPOSITORY SECURITY WITH BALANCES ON DEPOSIT
December 31, 1975
Bank
First National Bank and
Trust Company
Demand Deposits
Investments
(1)
Legally adequate per KSA 9-1402
FDIC
Coverage
$ 40,000.00
$100,000.00
Security
Pledged
Total
Coverage
$120,000.00
$160,000.00
10,000.00
110,000.00
Bank
Balance
--
Schedule 2
Bank
Balance
Unsecured
$ 35,255.23(1)
102,265.87(1)
6.
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SALINA FIREMEN'S RELIEF ASSOCIATION
Salina, Kansas
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TREASURER'S FIDELITY BOND
December 31, 1975
Schedule 3
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Treasurer, Salina Firemen's
Relief Association
Date Date of
Effective Expiration Amount
9-10-75 9-10-76 $10,000.00
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7.
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STATE OF KÞ.NSAS
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STATUTORY COMPLIANCE QUESTIONNAIRE
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Firemen's Relief Association
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City of
,
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Salina
Kensas
For
trJe year ended
12-31-75
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Prescribed By
Director of Accounts end
Reports
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J-~arch
19 ,
1976
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THIS QUESTIONNAIRE
SHALL BE MADE A PART OF ~HE AUDITED FINANCIAL STATEMENT
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Instructions
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If the ¿nswer to any question indicetes statutory violation,
t ;J e c' a t t e r s h 0 u I d be full y d i s c u s. sed in the co ITd,' e n t sse c t ion.
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Questions are designed to be ans,,'ered yes or no. "¡-at
Þ.pplicable" is not a useful answer. Inèeper,òent auditors should
emend questions which do not exactly fit a particular city so
that substitute or supplementary provisions of the stetutes or
local reguletions ere reflected in the question end answered by
the auditor. See Part V, Section C, Peragraph 2 of the Mini~um
-----~
~ t..",:,à_" r_~ ~u ?_~ ~ JO_r <=~9 r.." ~ .
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GENERAL
~n_- ----
1.
Was there an adequate system of internal control,
properly maintained
12-101)?
(K. S - A.
2.
Were liquid assets accounted for properly
(K.S.A.
21-3701 and 21-3703)?
3.
Were fixed assets accounted
for properly
(K. S. A.
12-101)?
4.
Did the district or county attorney's copy of the
audited
financial
statement include a copy of
this
audit questionnaire
(K .S .A.
75-1126)?
5.
Were audit adjustments
to correct erroneous or un-
lawful
transactjons placed on the books of account
during the course of the examination,
,,'henever
possible
(~a~ Val}_")'. ~ël.ine~ ~i_~_t.J:'J._~~.
z.i"'JTI~ '
141 Kan.
623) ?
6.
income
from investments accounted
for and
¡,'a s
credited to proper
funds
(K.5. A.
10-131 end 12-1675)?
7.
Were all beards,
colT,mi ssions,
or sub-
departments,
divisions of City audited?
(If not,
give reason for
their omission,
75-1117?)
-~__~__n~.~~-
K.S .A .
-_'I'h:i_§'J~Q.r.t.c:.()"'-~:t::.~-Q!:!1-y_.tb~__~~liI1~~f~:r-ep1~n' s_--
~~~_ti_~f_l28>soc::i:.~t:..~~Il.L":'l1ic:l1- c:Olrle~- <l?__.a_.r-~:'3\!Lt- c:>f-
__a_sepßIß_te_i'Ilgag~TI1~Il~ ---- -- - --------- ---- ---.
8.
Were expenditures
for the
library made on order of
the library board
(K - S. A.
12-1225)?
9.
¡':ere funds of
the firemen's relief association
ir.vested
40-1706)
or disbursed as authorized
(K. 5. A.
(K. S. A.
40-1707) ?
10.
Were disbursements
from the ba¡.d
fund r;;ade in
accordance with the terms of a written contract
with the Land
(K.S.A.
12-14aO4)?
11.
interfund transactions made upon
legislative
Were
authority
79-2934)?
(K .S .A.
12.
Do the minutes contain an adequate record of the
proceedings of the governing body
13-518,
(K oS .A .
13-2106,
etc.)?
[E3
Et1J
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No fixed assets
LJ =- I
Li]
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[Xl r=J
[-~J ¡-I
[I CJG
Not covered in
t~rr~ ri.:p~ r t.
ex]
Not covered in
t 111[8 ~ r Ei.P.9J t .
None
CJ L:J
[x]
f----¡
C -2
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~ere the minutes ~roperly &pproved by the goverLing
body
(f~.S.A.
13-:,)B,
13-2106,
etc.)?
14.
~ere the directives of the governing body with
f i -
nancial
import carried out
(K . S .A .
12-101)?
15.
Were depositories designated for
all city officials
receiving public moneys
(K. S. A.
9-1401)?
16.
Were all public n,oneys deposited
in designated de-
positories
(K.S.A.9-1401)?
17.
Are bank deposits of all
city officials adequately
secured
(K. S. A.
9-1402)?
lB.
Did the governing body approve collateral
security
and personal bonds
furnished to secure deposits
(K. S. A'.
9-1402)?
19.
Are fidelity bonds a~d
insurance policies properly
filed
(K. S. A.
13-:,l8,
13-2106,
etc.)?
20.
v;'ere
invest",ents m&de in accordance with "Hoi1,erule
Powers"
statutory provisions
(K . S .A .
10-131)?
or
21.
¡';ere proceeds
from city obligations expended
for
authorized purposes
(K .S .A .
10-117,
etc.)?
22.
sinking or reserve funds created and used
in
',')e r e
accordance with statutory provisions
(K. S. A.
10-113,
et c) ?
23.
¡,ere claims
itc-lT,ized,
internally audited
ar,d ar"proved
as provided by
law
(K .S .A .
12-10:,b)?
24.
Did the governing body approve a budget ~ppropriating
by funds as required by the budget
law
(K. S. A.
79-
2925 et.
~e_'1.' )?
25.
~ere exp~nditures
from city
fUJ,ds "",de
in colT,pliance
with trJe t,udget
1 aw
(K. S. A.
79-2<;35)?
26.
e>:pc-nòiturcs
f r c,m c i t Y
funds ,;,aèe
in CO¡;,p) i cnce
\';ecy e
'",ith the cash -basis la,,'
(K . S .J>. .
10-]])3)?
CITY CLEEK
-~-- ----- --
.., ;'<0'1
lY f: ~ l__-
DD I~-l
rXl [-I
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fJg ;- J
eXI '--î
._-
[Xl LJ
LiJ
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[~J
[~J
['Xl
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l-=-- J
None
¡--l L:,J
None
I:=:=¡ ¡~~J
I-Xl
I~ r
None
I] [-J
None
f--~J [~J
1- 1
_x-
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27.
(Records maintained by Treasurer of Firemen's Relief Assn.)
None
Did Clerk ¡~aintain a fund ](cdger (K_S.A. le-)ll7)? ..-=J C=J
28.
uoes clerk mèintain required fund er,cu::,Lr.""ce rE-
co:!'d s
(K. S. A .
10-lll7)?
None
r==J [=:J
c
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29.
Did Cl"rk open
and keep an account of
each fund
showing the unencumbered budget balance as required
(K. S. A.
None
[I í-,
79-2934)?
30.
Was the fiscal
agency balance reconciled with out-
standing matured bonds and coupons
(K . S .A .
13-518,
None
r=J [I
13-2106,
etc.)?
31.
¡-Iere unpaid
special
assessments certified
to the
County Clerk to be placed on tax roll
(K. S - A.
12-
None
r__-l [=J
608,
12-6alO,
etc.)?
<Xi1Q1í.Y . ..:r: p~ 7' S lJ_J\E R
32.
Did banks furnish monthly
statEments of daily bal-
ances
(K - S - A .
13-518,
13-526, etc.)?
[~
33.
¡'ere City
funds disbursed as provided by K.S.A.
12-105a,
105b and
1 0 - 801 e_!:.. ~ E_'!.?
r--ì
,~.-I
¡rial
rJ
[--1
34.
Did the ~ Treasurer maintain records inò"Fendéntly Only one set of financial
of those ",aintained by the City Clerk (K.S.A. lO-1118)?recor~~~J-[1=~Se of treasurer.
35.
WEre there frequEnt
reconciliations bEtwEEn
the
City Treasurer and the City Clerk
(K. S. A.
13-518;
None
C'= J LJ
1 3-526;
etc.)?
36.
Did the TreasurEr maintain
record
a chronological
of collateral
securities pledged to secure deposits
(K. S. A.
9-1405)?
IKJ
37.
Did the City Treasurer pay OVEr
to Library Treasurer
the
funds appropriated and collected
for m¿,inten¿,nce
Not covered in this report.
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of such public library
(K.S .lL
12-1226)?
38.
Did
the City Treasurer r,ubljsh c;uarterly rEI,arts as
'==:J
réquired
(K. S .A .
12-1608)?
None
CJ L_J
FU¡,DS
(Not applicable to this report)
¡'~NTC:KPRI ~E
UTILITY)
-- .--.- ___n_-
.-------.-----
39.
Were operations of these
fur,òs Ìo'odgéted
(K. 5. A.
79-2925) ?
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4 O.
Were transfers of utility
"surpIuses" anticj¡:ated
in the currEnt
budget
O<.S.A.
12-825d)?
r--l
41.
"ere utility
fu r,d
in co;;,plj anCE 'wi th
transfe-rs ",¿de
statutory provisions
10-l204,
l2-H2Sd
and
(K, 5 - A.
K.5.A.
79-2935)?
[:-'
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L:'j
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C -4
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'; c-
t . )
12-825a)
or as provided by
fund confined to statutory use
(K. S. A.
42.
~;dS petty cash
43.
Were charges
for utility sérvices
Jocal home rule?
in accordance with
rates
fixed by ordinance
(K . S - A.
Did the baJ2JJce in the customers' deposit fund equal
(K. S. A.
12-822)?
44.
the amount of deposits in effect
10-1202,
12-829,
etc.) ?
quired by stõtute
(K - S. A.
12-822)?
œposits annually as re-
45.
Was interest credited on
COJ,~}~ENTS
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