Audit - 1991
CITY OF SALINA
Financial Statements and Independent Auditors' Reports
December 31,1991
CITY OF SALINA, KANSAS
Contents
FINANCIAL SECTION
Independent Auditors' Report
General Purpose Financial Statements:
Combined Balance Sheet-All Fund Types and
Account Groups
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances-All Govern-
mental Fund Types
Combined Statement of Receipts, Expenditures
and Changes in Unencumbered Cash-Budget
and Actual-Budgetary Basis-General Fund,
Special Revenue Funds and Debt Service Funds
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings / Fund Balances-
All Proprietary Fund Types and Similar Trust
Funds
Combined Statement of Cash Flows-All Proprietary
Fund Types and Similar Trust Funds
Notes to the Financial Statements
Supplemental Information
Statement of Receipts, Expenditures and Changes
in Unencumbered Cash Balances-Budget and Actual
(Budgeted Funds)
Statement of Receipts, Expenditures and Changes
in Unencumbered Cash Balances- (Non-Budgeted Funds)
Page
1
2
3
4
5
6 - 7
8 - 28
29 - 50
51 - 67
SINGLE AUDIT SECTION
Independent Auditors' Report on Schedule of Federal
Financial Assistance
68
Schedule of Federal Financial Assistance
69
Independent Auditors' Single Audit Combined Report
On Internal Control Structure
70 - 72
Independent Auditors' Report On Compliance With Laws
And Regulations Based On An Audit Of Financial
Statements Performed In Accordance With
Government Auditing Standards
73
Independent Auditors' Report On Compliance With The
General Requirements Applicable To Federal
Financial Assistance Programs
74
Independent Auditors' Report On Compliance With
Specific Requirements Applicable to Nonmajor
Federal Financial Assistance Program Transactions
75
Schedule Of Independent Auditors' Findings and
Questioned Costs
76
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P,O, BOX 1100
SALINA, KANSAS 67402.1100
913-825.1561
INDEPENDENT AUDITORS' REPORT
To the Mayor and
The Board of City Commissioners
City of Salina, Kansas:
We have audited the accompanying general purpose financial statements of the City of Salina,
Kansas, as of December 31, 1991, and for the year then ended. These general purpose financial
statements are the responsibility of the City's management. Our responsibility is to express an
opinion on these general purpose fmancial 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, the provisions of
Office of Management and Budget Circular A-128 II Audits of State and Local Governments, II
and the Kansas Minimum Standard Audit Program. Those standards and OMB Circular A-128
require that we plan and perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the general
purpose financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall fmancial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to in the first paragraph present
fairly, in all material respects, the financial position of the City of Salina, Kansas, as of
December 31, 1991, and the results of its operations and the cash flows of its proprietary and
similar trust fund types for the year then ended in conformity with generally accepted accounting
principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial
statements of the City of Salina, Kansas, taken as a whole. The accompanying supplemental
information on pages 29 to 67 is presented for purposes of additional analysis and is not a
required part of the general purpose financial statements. The information in those schedules
has been subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, in our opinion, is fairly presented in all material respects on the budgetary basis
of accounting described in Note 2.
Respectfully submitted,
Salina, Kansas
October 22, 1992
~~~
~'
~.~
C.P.A.
Certified Public Accountant in charge
of and actively engaged on this audit.
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
1
Assets and other debits
Assets:
Cash and Cash Equivalents
Accounts Receivable
Tares Receivable
Special Assessllents Receivable
Due froll Other Funds
Inventory and Prepaid Supplies
Restricted Cash and Cash Equivalents
Piled Assets
Acc. Depreciation
Deferred Issuance Costs
Other Debits:
Allount to be Provided-Spec. Assesslle
AIIount to be Provided
Total assets
Liabilities, equity and other credits
Liabilities:
Accounts Payable
Retainage Payable
Accrued COllpensated Absences
Due to Other Punds
Meter Deposits Payable
Deferred Revenue
Payable froll Restricted Assets:
Accrued Interest Paysble
Revenue Bonds Payable - Current
Tellporary Notes Payable
General Obligation Bonds Payable
Revenue Bonds Payable
Total liabilities
Equity and other credits:
Investllent General in Piled Assets
Contributed Capi tal and
Retained Earnings:
Reservation of Retained Earnings
Contributed Capital and Unreserved
Retained Earnings
Pund balances:
Reservation of Pund Balance
Unreserved Pund Balance
Total equity and other credits
Total liabilities, equity and other credits
The notes to the financial statellents
are sn integral part of this statement.
COllbr~~a R~I~~~~n~heet
All Pund Types and Account Groups
December 31, 1991
Special
Revenue
Proprietary
Governmental Pund Types Pund Types
Internal
Service
General
----------------------------------------..--------------------------...----
Capital
Projects
3,344,819
293,543
1,676,640
o
o
199,588
o
o
o
o
5,514,590
122,604
11, B83
o
o
o
1,433,351
o
o
o
o
o
1,567,838
430,003
3.516,749
--------------
3,946,752
5,514,590
--------------
--------------
1,649,891
116,252
2,816,908
o
o
o
o
o
o
o
4,583,051
115,586
3,377
o
o
o
2,461,125
o
o
o
o
o
2,580,088
152,750
1,850,213
--------------
2.002,963
4,583,051
Debt
Service
304,252
o
1,151,048
3,659,089
o
o
o
o
o
o
o
o
5,114.389
--------------
--------------
o
o
o
o
o
4,810.137
o
o
o
o
o
4,810,137
o
304,252
--------------
304,252
5,114,389
--------------
--------------
387,651
o
o
o
o
o
o
o
o
o
387.651
--------------
--------------
51,322
107,909
o
o
o
o
o
o
o
o
o
159,231
272,453
(44,033)
--------------
228,420
387,651
Enterprise
7,314,044
467.693
o
o
11,843
383,400
2,137,585
38,811,172
(18.546,302)
214,479
o
o
30,793,914
222,565
18,858
268,615
11,843
77,010
o
129,479
265,000
o
o
7,380,000
---...----------
8,373,370
2.137,585
20,282,959
o
o
22,420,544
30,793,914
370,316
13,000
o
o
o
o
o
637,307
(288.712)
o
731,911
106,624
o
43,300
o
o
o
149,924
187,102
394,885
o
o
581,987
------_.....-----
731,911
--------------
--------------
Assets and other debits
Assets:
Cuh and Cash Bqui valents
Accnunts Receivable
Tazes Receivable
Specisl Assessllents Receivable
Due frail Other Punds
Inventory and Prepaid Supplies
Restricted Cash and Cuh Bquivalents
Bui Idi ngs
Acc. Depreciation - Buildings
Deferred Issuance Costs
Other Debits:
bount to be Provided-Spec. Assesslle
bount to be Provided
Total assets
Liabilities, equity and other credits
Liabilities:
Accounts Payable
Retainage Payable
Accrued COllpensated Absences
Due to Other Punds
Meter Deposits Payable
Deferred Revenue
Payable frail Restricted Assets:
Accrued Interest Payable
Revenue Bonds Payable - Current
Temporary Notes Payable
General Obligation Bonds Payable
Revenue Bonds Payable
Total liabilities
8quity and other credits:
Investllent in General Piled Assets
Contributed Capital and
Retained Barni ngs:
Reservation of Retained Barnings
Contributed Capital and Unreserved
Retained Barnings
Pund balances:
Reservation of Pund Balance
Unreserved Fund Balance
Total equity and other credits
Total liabilities, equity and other credits
The notes to the financial stateBlents
are an integral part of this statellent.
Fiduciary
Pund Type
Trus t and
Agency
466,994
224
o
o
o
o
o
o
o
o
467,21B
315,188
o
o
o
o
o
o
o
o
o
o
315,188
o
152,029
-------...------
152.029
467,217
Account Groups
Genera I
Piled
Auets
o
o
o
o
o
o
o
lB, 155,956
o
o
o
o
18,155,956
18,155,956
18,155.956
IB,155,956
--------------
--------------
City of Salina
COllbined Balance Sheet
All Pund Types and Account Groups
December 31, 1991
General
Long-terll
Debt
o
o
o
o
o
o
o
o
o
o
3,659,089
10,883,178
--------------
14,542,267
--------------
--------------
o
o
o
o
o
o
o
o
o
o
o
o
o
1,023,267
o
o
o
o
o
607,000
12,912,000
o
14,542,267
14,542,267
Total
Mella Only
1991
13,837,966
890,712
5,644,596
3,659,089
11.843
582,988
2.137,585
57,604,436
(18,835,014)
214,479
3,659,089
10.883,178
------......------
80,290,947
933,888
142,027
1,335,182
11,843
77,010
8,704,614
129,479
265,000
607,000
12,912,000
7,380,000
--------------
32,498,043
18,155,956
o
o
2,324,688
20,677,844
855,207
5,779,210
--------------
47,792,905
80,290,948
--------------
--------------
2
City of Salina
Combined Statement of Revenues. Elpendltures and Changes In Pund Balance
All Governmental Pund Type,
~or the ~Iscal lear ended vecemoer JI. 1991
Rnenues ;
Taus
Intergovernmental
Charges for Services
Pines
Special Assessments
Interest
Reimbursements
Miscellaneous
Total Revenues
Elpenditures;
General Government
Publ ic Safety
Public Works
Recreation
Cultural
Com.unity Development
Health and Welfare
Debt Service
Other
Capital Outlay
Bicentennial Center
Total Elpenditures
Revenues over (under) elpenditures
Other Pinancing Sources (Uses);
Operating Transfers In
Operating Transfers out
Bond and Temporary Note Proceeds
Temporary Note and Interest Payments
Total Other Pinancing Sources (Uses)
Revenuel and other financing
lourcel over (under) elpeoditures
aDd other finanCing uses
Pund Balances, January I
Residual equity transfers 10 (out)
Pund Balances, December 31
General
$8,226,46)
1,116,231
847,347
395,447
532,66U
560,376
419,013
12,097,539
1,481,457
4,930,155
1,043,777
751,696
327,241
122,387
75, III
2,835.767
745,758
12,313,34Q
-------------
(215,810)
88,504
(820,761)
(732,257)
Special
Revenue
Governmental ~und Types
Debt
service
$4,035,424
1,506.994
1.835,158
64,461
9,830
Ill,B88
3,050
-------------
7,566,807
5,885
183,981
725,530
246,792
71 ,504
3,526,415
669,285
1,665,892
7,095,2B4
471,523
215,000
(313,504 )
(98,504 )
(948,067) 373,019
4,894,819 1,629,946
$3,946,752 $2,002,965
$757,342
661,782
12,14 b
33,222
1.464.492
2,299,444
2.299,444
(834.952 )
760,566
760,566
(74,386)
344,280
34,358
---..-...----...--
$304,252
Capital
Projects
30,046
19,954
105.449
155,44'!
1.967,05Q
1,967,059
-------------
( 1.811,610)
70,195
6,069,458
(4.300.52\)
1.839,128
27,518
235,260
(34.358)
5228.420
Total
Memo Only
1991
13.019,231
2.653,271
2,682,505
395,447
726.245
574,590
777.713
4\5,285
21,284.287
1.487,342
4,930,155
1,227.758
1,477,226
327.241
369,179
146,615
2.299,444
6.362.182
3,382,102
1,665,892
---..---------
23,675,136
-------------
(2,390.849)
1,134.265
(J ,134,26\)
6,069,458
(4.300,5251
1.768,933
(621.916)
7,104,305
o
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
$6.482.389
The notes to finanCial statements are an integral part of this statement.
3
City of Salina
Combined Statement of Receipts, Elpnditures and Chanles in Unncuabered Cash
Budlet and Actual - Budletary Basis - General Pund, Special Reunue Punds and Debt Senice Punds
Por the Piscal Year Ended Deceaber 31, 1991
General Pund Special Rnnue Punds
--------------- ------------------ ----------- --- -----------------------------------------
Budlet Actual Variance Budlet Actual Variance
------------- ------------- ------------- ...------------ -----------..- --------......---
Receipts: $7,983,513 $8,024,307 $4,041,991 $3,999,282 (~42,7D91
Tales $40,794
Interlournaental 1,126,314 1,116,231 (10, 083) 1,381,993 1,357,m 24,508
Charges for Services 704,000 851,148 147 ,148 772,500 929,647 157,147
Pines 400,000 395,001 (4,999)
Special Aueuments 75 ,000 61,724 (13,2761
Interest 550,000 542,473 (7,527) 15,000 5,702 (9,298
Rei.bursements 75 ,000 556,900 481,900 12,000 47,984 35,984
Miaceilaneous 20,500 55,719 35,219
Transfera in 451,514 451,798 284 215,000 215,000 0
......-----..----- ----------..-- ----..--...----- .....----------- ..------------ -------------
Total Receipts 11 ,310,841 11,993,577 682,736 6,513,484 6,616,824 103,340
----------...... ---------..-...- -----...------- -----------..- ---....--.............- ..---------......
Elpendi tures: (6191
General Government 1,477 ,213 1,477 ,832
Public Safety 4,837,243 4,936,469 (99,226
Public Works 1,062,858 1,053,739 9,119 247,932 186,467 61,465
Recreation 761,536 751,668 9,868 595,829 725,626 (129,797)
Cultural 317 ,619 315,700 1,919
Coaaunity Dnelopaent 123,781 122,407 1,374
Health and Welfare 69,993 75,111 (5,118) 71,504 71 ,504
Debt Service
Other 2,506,500 2,733,730 (227,2301 3,099,600 2,985,820 113,780
Capital Outlay 812,000 820,837 (8,837 877,181 751,943 125,238
Bicentennial Center 730,711 765,887 (35,176)
Transfers out 852,535 922,730 (70,195 ) 854,099 854,099 0
Cash Reserve 1,806,892 1,806,892 862,988 862,988
------..-..-..-... -----------..- --.......-------- -----..------- ---..-----..--- -----------..-
Total Elpenditures 14,628,170 13,210,223 1,417,947 7,339,844 6,341,346 998,498
--______00___- ------------- ------------- --------....-..- ------------- ..------...---..-
Receipts over (under) eapenditures (3,317,329) (1,216,646) 2,100,683 (826,360 ) 275,478 1,101,838
Unencu.bered Cash, January 1 3,317,329 4,208,443 891,114 826,360 1,067,299 240,939
------------- ---------..--- ------------- ------..------ ------------- -------------
Unencuabered Cash, December 31 $0 $2,991,797 $2,991,797 $0 $1,342,777 $1,342,777
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
The notes to financial statemeuta are an integral part of this state.ent.
City of Salina
Co.biDed Statellnt of Receipts, 8xpnditures ud Chuges iD UDncullbered Cash
Budget ud Actual - Budgetary Basis - Gneral Pund, Special Rnenue Punds and Debt Ser.ice Punds
Por the Piscal Yesr Bnded Dece.ber 31, 1991
Debt Senice Punds
Budget Actual Variuce
Receipts :
Tnll
IDtergonrnantal
Charges for Ser,ices
Pines
Special Asseu.nts
Interest
Rei.buraeants
Mis ce 11 aneous
Trusfers in
$769,484
$757,342
($12,142)
Total Receipts
704,673 656,106 (48,567)
12,146 12,146
33,222 33,222 0
760,566 800,600 40,034
------------- ------------- -------------
2,267,945 2,259,416 (8,529)
------------- ...------------ -------------
8xpnditures:
Gneral Go.ernllent
Public Safety
Public Works
Recreation
Cultural
Couunity Denlopllent
Health and Welfare
Debt Senice
Other
Capital Outlay
BicentenDial Cnter
Transfers out
Cash Reser.e
Total 8xpendi tures
Receipts over (under) expenditures
Unncullbered Cash, January I
Unncu.bered Cash, Decnber 31
2,408,355 2.299,444 108,911
150,000 150,000
------------- ...------------ -------------
2,558,355 2,299,444 258,911
------------- ...------------ -------------
(290,410) (40,028) 250,382
290,410 344,280 53,870
------------- ------------- -------------
$0 $304,252 $304,252
------------- ------------- -------------
------------- ------------- -------------
The notes to fiDancial stateants are an integral part of this statllleDt.
4
City of Salina
Comblnpd Statpment of Rpyenues. Elpenses and Changps In Rptained Earnlngs/Pund Balances
All Proprietary Fund Types and Similar Trust Funds
Por the Piscal Year Ended flecember 31. 1991
Operating Re,enues:
Charges for Services
Reimbursellent s
Miscellaneous
Total Operatln~ Reyenues
OperatlnR Elpensps:
General Goyprnment
Public Works
Recreation
Other
Depreciation
Total Operating Elpenses
Operating Income
Nonoperating Reyenues (Elpenses):
Interest
Misce Ilaneous
Debt SerVl ce
Total NonoperatlnR Revenues (Elpenses)
Net income
Contributed Capital and Retained Earnings/
Pund Balances. January I
Change In Contributed Capital. net
Contributed Capital and Retained Earnings/
Fund Balances, uecember 31
nouclary
Proprietary Pund Types Pund Type.
Enterprise
$B,334,528
15.513
34,239
8.384.280
5.363.068
442.70\
1.094.820
6.900.591
1.483,687
394.749
93.864
(421.618 )
66,99\
1.550.682
20.867,062
2,800
$22.420.544
Internal
Service
Nonupendable
Trust
$1,651,997
96,292
348
$3,397
Total
Memo Only
1991
$9.995.922
111.805
34.587
10.142.314
787
821.476
5.363.068
442.70\
701.908
1.187.416
1.754.637
3.397
821. 476
701.121
92.596
l.615.193
139.444
2,610
787
8.516.573
7.555
o
7.555
139.444
492.898
(50.355)
10.165
1,625,741
402.304
93.864
(421.618 )
74.550
1.700.291
21.501,824
(47.555)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
523,154.560
14 1,861,
$581.987
$152.029
The notes to finanCial statements are an integral part of this statement.
g
City of SaliDa
Co.biD.d Stat...Dt ot Ca.b Plo..
All Proprl't.ry PUDd Typ.. 'Dd Si.ll.r Tru.t PUDd.
Por tb, Pi.cal Y,ar BDd.d O.c..b.r 31, 1991
Ca.b Plo.. troa OperatlDS Acti.ltles:
Op.ratiDS lOCO.'
Adju.t.eDt. to recoDcile operatiDI iDcoae to
D.t ca.b pro,ided by op'ratlDS actl,itie.
D.precut 100
PrO'I'IOD for uDcollectibl, accouDt. recei,.ble
CbaDg, 10 ....t. aDd li.bilitie.:
AccouDt. recel..ble
D'PO'lt R,c'l.able
ID"Dtory 'Dd Pr,paid Suppli..
Cu.to.er "et.r D.po.it.
ACCOUDt. Payable
Accrued liability for co.p.D.ated ab.eDce.
Total Adju.taeDts
N't Cash Pro.ided by OperatlDS Acti,ities
Ca.h Plo.. from Capital aDdR,lated PiDaDciDS Acti,iti,.:
Ac~ui.itioD aDd COD.tructloo of capital a..'t.
Prlocipal paid 00 aaturlDC re..oue bODd.
Iot.re.t paid aD re.eoue bood.
"i.cellaoeou. ioco.,
Net Calh Uled tor Capital aod Related Pioaocioc Acti.itie.
Ca.h Pia.. fro. lo.e.tiol Acti.ities:
lot,rest 00 lo,e.ted Cain
Het locr,ase 10 Ca.b aod Ca.n Bqui.al.ot.
Calb aod Casn Bqui,al.ot., JaDulry I
Ca.b aDd Cash Bqui'II'Dta. Dec..b,r 31
D,c.aber 31. 1991 Casb aod Cain Bqui.al'Dtl i. Coaprl.ed of:
Curr,ot
Rutracttd
Total
Piduciary
Propri.tary Puod T yp" Puod Typ"
----------------------------- ---------------
[otuul NODtlpndabl, Totll.
Bottrpri" S,nic, Tru.t "e.o ODly
------------... ------..------ .------------ -------------
S1.483,&87 S139.444 S2,610 S1.62S,741
------------- ------------- ------------- -------------
1,094,820 92,596 1,187,416
(3,062) (3,062)
(22,915) ~22,915)
( 13 ,000 ) 13,OOOl
(131,449) (131,449
2,m 2,495
23,546 n.m 122.096
2[,434 6,3S6 27,790
------------- ------------- ------------- -------------
984,809 184,502 1,169,311
------------- ------------- ------------- -------------
2,468,496 323,946 2,610 2,195,052
------------- ------------- ------------- -------------
0(8'7991 (10,420) 0 (1 (09.2191
220,000 220,000
666,283 666,283
93,864 93.864
------------- ------------- ------------- -------------
(2,191.218 ) ( [0,420) (2,201,638)
------------- ------------- ------------- -------------
466,199 0 7,593 473,792
------------- ------------- ------------- -------------
743,477 m,m 10,203 1,067,206
8,708, m 56 , 791 [41,602 a, 90',545
------------- ------------- ------------- -------------
S9,451,629 $310,3[7 S[Sl.80S S9,m,m
--.......-------- ---.....-------- ----...----..--- ---..---..............
--...---------- --------..--.... ---.....----..--... -------------
S7,314,044 $370,317 SIS1,805 S7,836,I66
2,131.m 0 0 2,131,5B5
------------- ------------- ------------- -------------
S9.m,m S370,317 sm,805 S9,m,m
------------- ---------..--- ----------..-- -------------
------------- ----..-------- -.--...-------- ------------.
Tb. Dotfl to .flolDcial stlt..eDt. ar, aD iotecrll part of tbi. .tlt..'ot,
6
City of Salioa
Co.biot~ State.tot of Cain Plows
All Proprietary Puo~ Typel ao~ Similar Trult Puodl
Por tne Pilcal Vear Bo~e~ Otct.btr 31. 1991
Noocash Capital aDd Related Pioaoclol Actl'lties:
Eoterprlle Puodl
Accouotl Payable lod Retaloa.e Payable at Oecembtr 31, 1991, iocludel $122.580 related to acqullitloo of filed alletl.
Oeferred bood Illuaoce COltl wert a.ortiled durlo. 1991 as followl:
Capitalile~ aa ioterelt
Charled to debt ler'lce elptOlt
Total
loteroal Ser'lce Puodl
Chaosel 10 filed alletl locluded the followioS:
Cootributioo of co.puter equip.eot from Geoeral Puod. at COlt
Traolter of computer equip.eot to Geoeral Puod for dllpOlltloO, oet of Iccu.ulated depreciation
Net Reduct ioo
The notel to fioaocial Itate.eotl are aD iotelral part of thil Itate.eot.
$2.440
10,300
$12,740
---~----------
--------------
$254,198
(304, m)
-------------
(S50.m)
-------------
-------------
7
CITY OF SALINA
Notes to the Financial Statements
December 31, 1991
Note 1. Summary of Significant Accounting Policies
The financial statements of the City of Salina, Kansas have been prepared in
conformity with generally accepted accounting principles (GAAP) as applied
to government units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant of the
government's accounting policies are described below.
A. Reporting Entity
In evaluating how to define the government, for financial reporting purposes,
management has considered all potential component units. The decision to
include a potential component unit in the reporting entity was made by
applying the criteria set forth in GAAP. The basic - but not the only -
criterion for including a potential component unit within the reporting
entity is the governing body's ability to exercise oversight responsibility.
The most significant manifestation of this ability is financial
interdependency. Other manifestations of the ability to exercise oversight
responsibility include, but are not limited to, the selection of governing
authority, the designation of management, the ability to significantly
influence operations, and accountability for fiscal matters. A second
criterion used in evaluating potential component units is the scope of public
service. Application of this criterion involves considering whether the
activity benefits the government and/or its citizens, or whether the activity
is conducted within the geographic boundaries of the government and is
generally available to its citizens. A third criterion used to evaluate
potential component units for inclusion or exclusion from the reporting
entity is the existence of special financing relationships, regardless of
whether the government is able to exercise oversight responsibilities. Based
upon the application of these criteria, the following is a brief review of
each potential component unit addressed in defining the government's
reporting entity.
Excluded from the reporting entity:
Salina Airport Authority. The Salina Airport Authority (the Airport
Authority) was established by a special state act in 1965. The Airport
Authority's governing board, (which is appointed by the government's
governing body), selects management staff, sets user charges, establishes
budgets and controls all aspects of general aviation, airport management and
development. The government provides no funding to the Airport
Authority. Additionally, the government does not hold title to any of the
Airport Authority's assets, nor does it have any right to the Airport
Authority's surpluses.
Salina Housing Authority. The Salina Housing Authority's (the Housing
Authority) governing board, which is appointed by the government's
governing body, selects management staff, sets user charges, establishes
8
budgets and controls all aspects of the Housing Authority. The government
provides no funding to the Housing Authority.
B . Fund Accounting
The government uses funds and account groups to report on its financial
position and the results of its operations. Fund accounting is designed to
demonstrate legal compliance and to aid financial management by segregating
transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of
accounts. An account group, on the other hand, is a financial reporting
device designed to provide accountability for certain assets and liabilities
that are not recorded in the funds because they do not directly affect net
expendable available financial resources.
Funds are classified in to three ca tegories : governmen tal, proprietary and
fiduciary. Each category, in turn, is divided into separate "fund types".
Governmental funds are used to account for all or most of a government's
general activities, including the collection and disbursement of earmarked
monies (special revenue funds), the acquisition or construction of general
fixed assets (capital projects funds), and the servicing of general long-term
debt (debt service funds). The general fund is used to account for all
activities of the general government not accounted for in some other fund.
Proprietary funds are used to account for activities similar to those found
in the private sector, where the determination of net income is necessary or
useful to sound financial administration. Goods or services from such
activities can be provided either to outside parties (enterprise funds) or to
other departments or agencies primarily within the government (internal
service funds).
Fiduciary funds are used to account for assets held on behalf of outside
parties, including other governments, or on behalf of other funds within the
government. When these assets are held under the terms of a formal trust
agreement, either a nonexpendable trust fund or an expendable trust fund
is used. The terms "nonexpendable" and "expendable" refer to whether or
not the government is under an obligation to maintain the trust principal.
Agency funds generally are used to account for assets that the government
holds on behalf of others as their agent.
C. Basis of Accounting
The accounting and financial reporting treatment applied to a fund is
determined by its measurement focus. All governmental funds and expendable
trust funds are accounted for using a current financial resources
measurement focus. With this measurement focus, only current assets and
current liabilities generally are included on the balance sheet. Operating
statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i. e., expenditures and other financing
uses) in net current assets.
9
All proprietary funds and nonexpendable trust funds are accounted for on a
flow of economic resources measurement focus. With this measurement focus,
all assets and all liabilities associated with the operation of these funds
are included on the balance sheet. Fund equity (i. e., net total assets) is
segregated into contributed capital and retained earnings components.
Proprietary fund-type operating statements present increases (e.g.,
revenues) and decreases (e. g., expenses) in net total assets.
The modified accrual basis of accounting is used by all governmental fund
types, expendable trust funds and agency funds. Under the modified accrual
basis of accounting, revenues are recognized when susceptible to accrual
(Le., when they become both measurable and available). "Measurable" means
the amount of the transaction can be determined and "available" means
collectible within the current period or soon enough thereafter to be used to
pay liabilities of the current period. Expenditures are recorded when the
related fund liability is incurred. Principal and interest on general
long-term debt are recorded as fund liabilities when due.
Those revenues susceptible to accrual are property taxes, special
assessments, certain fines, interest revenue and charges for services. Local
sales and gas taxes collected and held by the state at year end on behalf of
the government also are recognized as revenue. Permits and licenses are not
susceptible to accrual because generally they are not measurable until
received in cash.
The accrual basis of accounting is utilized by proprietary fund types and
nonexpendable trust funds. Under this method, revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred.
The government reports deferred revenue on its combined balance sheet.
Deferred revenues arise when a potential revenue does not meet both the
"measurable" and "available" criteria for recognition in the current period.
Deferred revenues also arise when resources are received by the government
before it has a legal claim to them, as 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 government has a
legal claim to the resources, the liability for deferred revenue is removed
from the combined balance sheet and revenue is recognized.
D. Budgets
Budgets are adopted on a basis consistent with Kansas State Statutes.
Annual appropriated budgets are adopted for the general, debt service,
internal service, enterprise and certain special revenue funds. All annual
appropriations lapse at fiscal year end. Project-length financial plans are
adopted for all capital projects funds.
Encumbrances represent commitments related to unperformed contracts for
goods or services. Encumbrance accounting - under which purchase orders,
contracts and other commitments for the expenditure of resources are
recorded to reserve that portion of the applicable appropriation is
utilized in the governmental funds. Encumbrances outstanding at year end
are reported as reservations of fund balances and do not constitute
10
expenditures or liabilities because the commitments will be honored during
the subsequent year.
E. Cash and Investments
Cash includes amounts in demand deposits as well as short-term investments
with a maturity date within six months of the date acquired by the
government.
State statutes authorize the government to invest in temporary notes or
no-fund warrants issued by the investing governmental unit, time certificates
of deposits, repurchase agreements, and obligations of the U. S. Treasury.
Investments are stated at cost.
For purposes of the statement of cash flows, the City considers all highly
liquid investments (including restricted assets) with a maturity of six
months or less when purchased to be cash equivalents.
F. Short-term Interfund Receivables/Payables
During the course of operations, numerous transactions occur between
individual funds for goods provided or services rendered. These receivables
and payables are classified as "due from other funds" or "due to other
funds" on the balance sheet.
G. Inventories
Inventories are valued
first-in/first-out (FIFO)
inventories are recorded
governmental fund - type
balance.
at cost, which
method. The
as expenditures
inventories are
approximates market, using the
costs of governmental fund-type
when purchased. The balance of
offset by a reservation of fund
H. Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as certain
resources set aside for their repayment, are classified as restricted assets
on the balance sheet because their use is limited by applicable bond
covenants. The "Water and Sewer Principal and Interest" account is used to
segregate resources accumulated for debt service payments over the next
twelve months. The "Debt Service Reserve" account is used to report
resources set aside to make up potential future deficiencies in the Water and
Sewer Principal and Interest Account. The "Extension and Bond Retirement"
account is used to report resources set aside for operation, maintenance,
repair, improvement and debt service purposes, as specified by certain bond
ordinances.
11
The following is a summary of the account balances at December 31, 1991.
Account
Water and Sewer Principal and Interest
Debt Service Reserve
Extension and Bond Retirement
$ 246,327
911 ,500
979,758
$2,137,585
----------
----------
I. Fixed Assets
General fixed assets are not capitalized in the funds used to acquire or
construct them. Instead, capital acquisition and construction are reflected
as expenditures in governmental funds, and the related assets are reported
in the general fixed assets account group. All purchased fixed assets are
valued at cost where historical records are available and at an estimated
historical cost where no historical records are available. Donated fixed
assets are valued at their estimated fair market value on the date received.
The costs of normal maintenance and repairs that do not add to the value of
the asset or materially extend asset lives are not capitalized. Improvements
are capitalized and depreciated over the remaining useful lives of the
related fixed assets, as applicable.
Public domain ("infrastructure") general fixed assets consisting of roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems and
lighting systems are not capitalized, as these assets are immovable and of
value only to the government.
Assets in the general fixed assets account group are not depreciated.
Depreciation of buildings, equipment and vehicles in the proprietary fund
types is computed using the straight-line method over the estimated useful
life of each asset.
Interest is capitalized on proprietary fund assets acquired with tax-exempt
debt. The amount of interest to be capitalized is calculated by offsetting
interest expense incurred from the date of the borrowing until completion of
the project with interest earned on invested proceeds over the same period.
J. Compensated Absences
All employees of the City, except temporary and part-time employees, may
accumulate sick leave at a rate of 8 or 11 hours per month, depending on
their work duty schedule. There is no limit on the amount of sick leave
which can be accumulated. Employees with more than five years of service
with the City are paid for one-third of their accumulated sick leave at their
current wage scale, upon termination of employment in good standing.
All regular employees with at least one year of service are entitled to paid
vacation time. Such leave is granted each year of employment and unused
leave may accumulate to a maximum of one year's accumulation of vacation
leave. Employees are paid for all accumulated vacation leave at their
current wage scale upon termination of employment.
12
Vested or accumulated vacation leave that is expected to be liquidated with
expendable available financial resources is reported as an expenditure and a
fund liability of the governmental fund that will pay it. Amounts of vested
or accumulated vacation leave that are not expected to be liquidated with
expendable available financial resources are reported in the general
long-term debt account group. No expenditure is reported for these
amounts. Vested or accumulated vacation leave of proprietary funds is
recorded as an expense and liability of those funds as the benefits accrue to
employees. In accordance with the provisions of Statement of Financial
Accounting Standards No. 43, Accounting for Compensated Absences, a
liability is recorded for vesting accumulating rights to receive sick pay
benefits.
K. Long-term Obligations
Long-term debt is recognized as a liability of a governmental fund when
due. For other long-term obligations, only that portion expected to be
financed from expendable available financial resources is reported as a fund
liability of a governmental fund. The remaining portion of such obligations
is reported in the general long-term debt account group. Long-term
liabilities expected to be financed from proprietary fund operations are
accounted for in those funds.
L. Fund Equity
Contributed capital is recorded in proprietary funds that have received
capital grants or contributions from developers, customers or other funds.
Reserves represent those portions of fund equity not appropriable for
expenditure or legally segregated for a specific future use.
M. Deferred Issuance Costs
In governmental fund types, issuance costs are recognized in the current
period. Issuance costs for proprietary fund types are deferred and
amortized over the term of the related bonds. Issuance costs are recorded as
deferred charges.
N. Interfund Transactions
Quasi-external transactions (i.e. , transactions that would be treated as
revenues or expenses if they involved organizations external to the
governmental unit, such as internal service fund billings to departments) are
accounted for as revenues, expenditures or expenses. Transactions that
constitute reimbursements to a fund for expenditures/expenses initially made
from it that are properly applicable to another fund, are recorded as
expenditures/expenses in the reimbursing fund and as reductions of
expenditures / expenses in the fund that is reimbursed.
All other interfund transactions, except quasi-external transactions and
reimbursements, are reported as transfers. Nonrecurring or nonroutine
permanent transfers of equity are reported as residual equity transfers. All
other interfund transfers are reported as operating transfers.
13
O. Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned
"memorandum only" to indicate that they are presented only to facilitate
financial analysis. Data in these columns do not present financial position,
results of operations or cash flows in conformity with generally accepted
accounting principles. Neither are such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data.
Note 2. Legal Compliance - Budgets
Kansas statutes require that an annual operating budget be legally adopted
for the general fund, special revenue funds (unless specifically exempted by
statute), debt service funds, and enterprise funds. The statutes provide for
the following sequence and timetable in the adoption of the legal annual
operating budget:
a. Preparation of the budget for the succeeding calendar year on or
before August 1st.
b. Publication in local newspaper of the proposed budget and notice of
public hearing on the budget on or before August 5th.
c. Public hearing on or before August 15th, but at least ten days
after publication of notice of hearing.
d. Adoption of the final budget on or before August 25th.
The statutes allow for the governing body to increase the originally adopted
budget for previously unbudgeted increases in revenue other than ad valorem
property taxes. To do this, a notice of public hearing to amend the budget
must be published in the local newspaper. At least ten days after
publication the hearing may be held and the governing body may amend the
budget at that time. There were no budget amendments for the year ended
December 31, 1991.
The statutes permit transferring budgeted amounts between line items within
an individual fund. However, such statutes prohibit expenditures in excess
of the total amount of the adopted budget of expenditures of individual
funds. Budget comparison statements are presented for each fund showing
actual receipts and expenditures compared to legally budgeted receipts and
expenditures.
All legal annual operating budgets are prepared using the modified accrual
basis of accounting, modified further by the encumbrance method of
accounting. Revenues are recognized when cash is received. Expenditures
include disbursements, accounts payable, and encumbrances. Encumbrances
are commitments by the municipality for future payments and are supported
by a document evidencing the commitment, such as a purchase order or
contract. All unencumbered appropriations (legal budget expenditure
authority) lapse at year-end.
14
A legal operating budget is not required for capital projects funds, trust
and agency funds and the following funds:
Special Revenue Funds - Certain of the special revenue funds are not
budgeted since their revenues are designated for a special purpose or the
fund represents a clearing account.
Bicentennial Center Event Fund - This fund is used as a clearing account
for special events when the City acts as the promoter's agent. The City's
rental fees from such events are transferred from the fund to the
Bicentennial Center Fund.
Water and Sewer Principal and Interest Account and Bond Reserve
Accounts - These funds are not budgeted since receipts and expenditures
are in accordance with requirements of applicable bond issues.
Combined actual operations (budgetary basis) compared to budget for
proprietary fund types for the year 1991 are as follows:
Enterprise Funds
Budget Actual Variance
Receipts
Charges for services $ 8,025,000 $ 8,463,035 $ 438,035
Interest 380,000 383,759 3,759
Reimbursements 303,000 4,267 (298,733)
Miscellaneous 27,400 128,104 100,704
Total Receipts 8,735,400 8,979,165 243,765
Expenditures
Public Works
Recreation
Debt service
Capital outlay
Transfers out
Cash reserve
Total Expenditures
5,276,675
478,270
2,366
2,171 ,068
1,042,791
5,488,597
401,626
900
892,750
1,258,020
5,940,919
13,982,812
(5,247,412)
8,971 ,170
7,995
Receipts over (under) expenditures
Unencumbered cash, January 1
5,656,268
5,247,412
Unencumbered cash, December 31
5,664,263
----------
----------
211 ,922
(76,644)
(1,466)
(1,278,318)
215,229
5,940,919
5,011,642
5,255,407
408,856
5,664,263
-----------
-----------
15
Internal Service Funds
Receipts
Charges for services
Reimbursements
Transfers in
Miscellaneous
Total Receipts
Bud~et
$ 741,457
32,791
936,864
800
1,711,912
Expenditures
General government
Other
Capital outlay
Transfers out
Cash reserve
Total Expenditures
892,704
666,137
11 ,900
7,150
153,196
1,731,087
(19,175)
19,175
Receipts over (under) expenditures
Unencumbered cash, January 1
Unencumbered cash, December 31
----------
----------
Note 3. Budgetary Reconciliation
Actual
$ 721,112
44,518
936,884
348
1,702,862
662,276
693,216
9,419
294,150
1,659,061
43,801
45,789
89,590
----------
----------
Variance
$ (20,345)
11 , 727
20
(452)
(9,050)
230,428
(27,079)
2,481
(287,000)
153,196
72,026
62,976
26,614
89,590
---------
---------
The actual data presented in the Combined Statement of Receipts,
Expenditures, and Changes in Unencumbered Cash-Budgetary Basis differ
from the data in the Combined Statement of Revenues, Expenditures and
Changes in Fund Balances, which is presented on the GAAP basis. The
following reconciliations are presented to provide a correlation between the
different bases of reporting.
General
Fund
Revenues (GAAP basis)
Add operating and residual
equity transfers
Adjustment for accrued/
deferred revenue
Nonbudgeted funds
Receipts (budgetary basis)
$12,097,539
88,504
(192,466)
o
11,993,577
-----------
-----------
Expenditures (GAAP basis)
Add operating and residual
equity transfers
Adjust for encumbrances
Nonbudgeted funds
Expenditures (budgetary basis)
12,313,349
820,761
76,113
o
13,210,223
Special
Revenue
Funds
$7,566,807
215,000
(60,631)
(1,104,352)
6,616,824
----------
----------
7,095,284
313,504
73,316
(1,140,758)
6,341,346
Debt
Service
Fund
$1,464,492
794,924
o
o
2,259,416
---------
---------
2,299,444
o
o
o
2,299,444
16
The actual data presented in Note 2 for Proprietary Fund Types differ from
the data in the Combined Statement of Revenues, Expenses and Changes in
Retained Earnings for Proprietary Fund Types. The following reconciliation
is presented to provide a correlation between the different bases of
reporting.
Enterprise
Funds
Internal Service
Funds
Net income (GAAP basis)
$ 1,550,682
$ 139,444
Additions:
Depreciation
Amortization of bond issue costs
Increase in accrued compensation
Increase in meter deposits payable
Decrease in encumbrances
Nonbudgeted fund
1,094,820
12,740
21,434
2,495
92,596
6,357
2,830
114,462
Deductions:
Capital ou Hay
Capitalized interest-net
Decrease in accrued interest payable
Debt service-principal
Increase in inventory and
prepaid supplies
Increase in receivables
Increase in encumbrances
Nonbudgeted fund
Receipts over (under) expenditures
(budgetary basis)
(1,502,520)
(66,533)
(136,079)
(220,000)
(10,420)
(131,449)
(7,441)
(724,616)
(187,006)
7,995
43,801
---------
---------
---------
---------
Note 4. Deposits and Investments
Deposits. At year end, the carrying amount of the government's deposits
was ($487,327) and the bank balance was $396,012. All of the bank balance
was covered by federal depository insurance or by collateral held by the
government's agent in the government's name.
Statutes require collateral pledged for deposits to be held in the
government's name by an approved third party financial institution or the
Federal Reserve.
Investments. The government's investments can be categorized as either (1)
insured or registered or for which the securities are held by the government
or its agent in the government's name, (2) uninsured and unregistered for
which the securities are held by the broker's or dealer's trust department or
agent in the government's name or (3) uninsured and unregistered for which
the securities are held by the broker or dealer, or by its trust department
or agent but not in the government's name.
17
The following is a summary of investments by category at December 31, 1991.
1
Categories
2
3
Carrying
Amount
Market
Value
U. s. Government Securities
Repurchase Agreements
$13,967,639
-0-
$-0-
-0-
$-0-
2,475,000
$13,967,639
2,475,000
$14,155,626
2,475,000*
Total Investments
$13,967,639
$-0-
$2,475,000
$16,442,639
$16,630,626
*Market value of underlying securities, $2,529,670.
Note 5. Receivables
Receivables at December 31, 1991 consist of the following:
Special Debt Internal Trust &
General Revenue Service Enterprise Service Agency Total
Receivables:
Interest $ 144,106 $ $ $ 11,109 $ $224 $ 155,439
Taxes 1,684,180 2,830,731 1,157,570 5,672,481
Accounts 208,209 39,866 525,171 773,246
Loans 28,259 28,259
Special Assessments 3,699,204 3,699,204
Deposit 13,000 13,000
Intergovernmental 3,476 51,151 54,627
Gross Receivables $2,039,971 $2,950,007 $4,856,774 $536,280 $13,000 $224 $10,396,256
Less: Allowance for
uncollectibles 69,788 16,846 46,637 68,587 201,858
Net Total Receivables $1,970,183 $2,933,161 $4,810,137 $467,693 $13,000 $224 $10,194,398
---------- ---------- ---------- -------- ------- ----------
---------- ---------- ---------- -------- ------- ----------
Property taxes are levied as of November 1, on property values assessed as
of January 1 of the same year. The tax levy is divided into two billings.
The first billing is mailed on November 1 and the second billing is mailed on
May 1. The billings are considered due upon receipt by the taxpayer;
however the actual due date is based on a period ending 50 days after the
tax bill mailing. On these dates (December 20 and June 20), the bill becomes
delinquent and penalties and interest may be assessed by the government.
18
Note 6. Fixed Assets
The following is a summary of changes in the general fixed assets account
group during the fiscal year:
Balance
January 1
1991
Land 2,501,353
Land Improvements
Buildings 9,235,969
Equipment 3,238,666
Vehicles 2,657,358
Total 17,633,346
30,000
192,732
207,483
111,070
541,285
8,675
10,000
18,675
Balance
December 31
1991
2,501,353
30,000
9,428,701
3,437,474
2,758,428
18,155,956
Additions
Retirements
----------
----------
-------
-------
------
------
----------
----------
The following is a summary of proprietary fund-type fixed assets at
December 31, 1991.
Enterprise
Funds
Internal Service
Funds
Land
Land Improvements
Water Plant & Equipment
Sewage Plant & Equipment
Other Buildings
Other Vehicles & Equipment
Construction in Progress
Less Accumulated Depreciation
Net Fixed Assets
458,322
237,210
22,660,177
11,284,519
254,107
2,395,547
1,521,290
38,811,172
18,546,302
20,264,870
22,122
615,185
637,307
288,712
348,595
----------
----------
--------
--------
The City has entered into contractual commitments totaling $1,309,900 to
complete certain water and sewer projects included in Construction in
Progress at December 31, 1991.
In proprietary funds, the following estimated useful lives are used to
compute depreciation:
Utility Plant & Buildings
Equipment and Vehicles
20-50 Years
5-20 Years
Note 7. Capitalization of Interest
Interest costs incurred to bring certain assets in proprietary funds to the
condition and location necessary for their intended use are capitalized as
part of the historical cost of acquiring the assets. Additionally, in
situations involving the acquisition of certain assets financed with the
proceeds of tax-exempt borrowing, any interest earned on related
interest- bearing investments from such proceeds are offset against the
19
related interest costs in determining either capitalization rates or
limitations on the amount of interest costs to be capitalized.
A summary of interest cost of the proprietary funds for the year 1991 follows:
Total interest cost
Capitalized interest cost
$ 542,944
121,326
Interest expense
421,618
--------
--------
Capitalized interest cost
Related interest earned on unexpended
bond proceeds whose use is limited
121,326
54,793
Net Interest Cost Capitalized
$
66,533
-------
-------
Note. 8. Risk Management
The government established a limited risk management program for workers'
compensation in 1991. The program covers all City employees. Premiums are
paid into the workers' compensation reserve fund by all other funds and are
available to pay claims, claim reserves and administrative costs of the
program. During fiscal year 1991, a total of $151,769 was paid in benefits
and administrative costs. An excess coverage insurance policy covers
individual claims in excess of $250,000 ($350,000 for accidents involving
employees classified as policemen or firemen). Incurred but not reported
claims of $84,801 have been accrued as a liability based primarily upon
subsequent payments. Interfund premiums are reported as quasi-external
interfund transactions.
Note 9. Long-term Debt
General Obligation Bonds. The government issues general obligation bonds to
provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for general government
activities only. General obligation bonds have been issued to refund only
general obligation bonds.
General obligation bonds are direct obligations and pledge the full faith and
credit of the government. These bonds generally are issued as 10 year serial
bonds, except for refunding issues, with approximately equal amounts of
principal maturing each year. General obligation bonds currently outstanding
are as follows:
20
Purpose
1985 Refunding Bonds
1986 Street and Utilities
1987 Downtown Redevelopment
1988 Internal Improvements
1989 Internal Improvements
1990 Broadway Overpass
1991 Internal Improvements
1991 Street and Utilities
1991 Crawford Street
Interest Rate
8.25 - 9.0 %
5.2 - 5.7 %
6 . 10 - 6. 65 %
6.150 - 6.375%
5.800 - 7.875%
5.75 - 7.75 %
5 . 25 - 7. 25 %
5.4 - 7.4 %
4.5 - 6.5 %
Final Maturity
Date
Apr 1, 1996
Dec 1, 1996
Dec 1, 1997
Dec 1, 1998
Dec 1, 1999
Dec 1, 2000
Oct 1, 2001
Oct 1, 2001
Oct 1, 2001
Amount
$2,090,000
1,240,000
3,000,000
740,000
935,000
405,000
1,300,000
1,417,000
1,785,000
$12,912,000
----------
----------
Annual debt service requirements to maturity for general obligation bonds,
including interest of $3,286,203 are as follows:
Fiscal Year Ending
December 31
1992
1993
1994
1995
1996
Thereafter
General Long-Term
Debt Account Group
$2,841,742
2,693,119
2,471,995
2,307,161
1,936,353
3,947,833 ,
$16,198,203
----------
----------
Revenue Bonds. The government also issues bonds where the government
pledges income derived from the acquired or constructed assets to pay debt
service. Revenue bonds outstanding at December 31, 1991, are as follows:
Purpose
Water & Sewage System
Series 1990A Refunding
Water & Sewage System
Series 1990B
Interest Rates
6.0 - 7.0%
7.0 - 7.1%
Final
Maturity Date
Oct 1, 2005
Oct 1, 2008
Amount
$5,435,000
2,210,000
$7,645,000
----------
----------
Revenue bond debt service requirements to maturity, including $5,454,190 of
interest are as follows:
Fiscal Year Ending
December 31
1992
1993
1994
1995
1996
Thereafter
Total
Amount
$ 782,915
786,750
784,080
785,180
784,860
9,175,405
$13,099,190
21
The City has established certain reserve accounts pursuant to the bond
ordinance authorizing the issuance of Combined Water and Sewage Systems
Revenue Bonds, Series 1990, to provide funds for the retirement of the
bonds and payment of interest thereon and for making replacements to the
system in the event other funds are not available. The pledge of gross
revenues of the Water and Sewer Department to secure payment of the bonds
is subordinate to a similar pledge to secure payment of certain defeased
Water and Sewer revenue bonds.
The amounts required to be maintained in the reserve accounts established by
the bond ordinance authorizing issuance of the 1990 bonds have been
provided and the total revenues of the water and sewerage system appear
sufficient to meet the requirements of the ordinance.
Temporary Notes. Kansas Statutes permit the issuance of temporary notes to
finance certain capital improvement projects which will be refinanced with
general obligation bonds. Temporary notes outstanding at
December 31, 1991, are payable as follows:
Date Issued
December 1, 1991
December 1, 1991
December 1, 1991
December 1, 1991
Interest Rate
4.6%
4.7%
4.8%
4.9%
Due Date
Dec 31, 1993
Dec 31, 1993
Dec 31, 1993
Dec 31, 1992
Amount
202,000
255,000
110,000
40,000
607,000
--------
--------
Change in Long-Term Debt. The following is a summary of long-term debt
transactions for the year ended December 31, 1991.
General Long-term Debt Account Group
Proprietary
Fund Types
General
Obligation
Bonds
Temporary
Notes
Accrued
Compensation
922,029
Totals
13,992,029
Revenue
Bonds
7,865,000
Outstanding, January 1
10,040,000 3,030,000
New Debt Issued or Acquired
1991 Internal Improvements
1991 street and utilities
1991 Crawford street
Temporary Notes
Net Change in Accrued
Compensation
1,567,458
1,300,000
1,417,000
1,785,000
1,567,458
1,300,000
1,417,000
1,785,000
101,238
101,238
Debt Retired
(1,630,000) (3,990,458)
(5,620,458)
(220,000)
Outstanding, December 31
12,912,000
607,000
1,023,267
14,542,267
7,645,000
22
Defeased Bonds. In prior years, the City defeased certain general obligation
and revenue bonds by placing the proceeds of new bonds and cash and certain
investments in irrevocable trusts to provide for all future debt service
payments on the old bonds. Accordingly, the trust account assets and the
liability for the defeased bonds are not included in these financial
statements. On December 31, 1991, a total of $2,590,000 of general obligation
and $11,776,000 of revenue bonds are considered defeased.
Note 10. Interfund Assets/Liabilities
Due From/To Other Funds:
Receivable Fund
Water and Sewer
Payable Fund
Sanitation
Amount
$11 ,843
Note 11. Fund Equity
A. The following reservations of fund balances and retained earnings are
used by the City.
Reserved for Encumbrances - Segregates a portion of fund balance for
expenditures upon vendor performance.
Reserved for Inventories - Identifies that the related assets do not
represent expendable available financial resources.
Reserved for Workers' Compensation Claims - Identifies the unexpended
balance of the Workers I Compensation reserve fund.
Reserved for Revenue Bond Retirement and Extension - Segregates that
portion of retained earnings for resources legally restricted to payment of
revenue bonds principal and interest and to fund asset renewals and
replacements.
B. Residual equity transfer. During 1991, the City transferred unexpended
cash balances from certain construction projects to the debt service fund,
resulting in a residual equity transfer of $34,358.
Note 12. Segment Information--Enterprise Funds
The government maintains four enterprise funds which are intended to be
self-supporting through user fees charged for services to the public.
Financial segment information as of and for the year ended December 31, 1991
is presented below.
23
Sanitation
Solid
Waste
Golf
Water &
Sewer
Total
Course
Operating Revenues $759,892 $359,953 $490,044 $ 6,774,391 $ 8,384,280
Depreciation Expense 37,737 46,012 49,334 961,737 1,094,820
Operating Income (loss) (33,655) (21,885) (4,914) 1,544,141 1,483,687
Net Income 1,955 16,089 (2,018) 1,534,656 1,550,682
Current Capital contributions 2,800 2,800
Property, Plant & Equipment
Additions 41,142 347,286 34,055 1,080,036 1,502,519
Net Working Capital 613,717 635,634 54,902 5,922,778 7,227,031
Total Assets 831,295 1,221,408 392,238 28,348,973 30,793,914
Bonds Payable 7,645,000 7,645,000
Total Equity $761,093$1,207,074 $374,104 $20,078,273 $22,420,544
Note 13. Contributed Capital
During the year, contributed capital changed by the following amounts:
Source Water & Sewer Data Processing
Governmen t - general
Additions $ 2,800 $254,198
Dis posi tions (304,553)
Net Change $ 2,800 ($ 50,355)
-------- ----------
-------- ----------
Note 14. Contingent Liabilities
Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies, principally the federal government. Any
disallowed claims, including amounts already collected, may constitute a
liability of the applicable funds. The amount, if any, of expenditures which
may be disallowed by the grantor cannot be determined at this time although
the government expects such amounts, if any to be immaterial.
The government is a defendant in various lawsuits. Although the outcome of
these lawsuits is not presently determinable, in the OpInIOn of the
government attorney the resolution of these matters will not have a material
adverse effect on the financial condition of the government.
Note 15. Subsequent Events
The City issued $1,240,000 of general obligation bonds, dated May 1, 1992 to
finance infrastructure improvements. A companion general obligation bond
issue for $1,660,000 was issued to refund the 1985 General Obligation
Refunding Bonds. The bonds I effective interest rate was 5.043% and they
mature April 1, 1993 through October 1, 2002.
24
The City issued $15,000,000 of Water and Sewer System Revenue bonds,
dated July 1, 1992 to finance improvements to Wastewater Plant No. 1 and to
construct an interceptor sewer. The bonds' effective interest rate was 6.16%
and they mature October 1, 1993 through October 1, 2012.
Note 16. Defined Benefit Pension Plan
Substantially all full-time employees of the City of Salina participate in
the Kansas Public Employees Retirement System (the System), a
multiple-employer public employee retirement system. A group of employees
participate in the Kansas Police and Firemen System (KP&F), a separate
program administered by the System.
Following is a summary of covered payroll and contributions to the System for
the year ended December 31, 1991.
Covered
Payroll
Employer
Contributions
Employee
Total
General Employees
Police and Fireman
Totals
$4,846,429
3,800,791
$8,647,220
$116,085
578,759
$694,844
$207,903
252,290
$460,193
$ 323,988
831,049
$1,155,037
----------
----------
--------
--------
--------
--------
----------
----------
The total payroll for the City of Salina was $9,832,806 for the year ended
December 31, 1991.
Substantially all general employees of the City of Salina are eligible to
participate in the System after one year of employment. Employees who retire
at or after age 65 are entitled to a retirement benefit, payable monthly for
life, equal to 1 percent of their final average salary for each year of
"prior" service and 1.25 to 1.5 percent for each year of "participating"
service depending upon the number of years of service. Final average salary
is the employee's average salary over the highest four years of credited
service. Benefits fully vest on reaching 10 years of service. Vested
employees may retire at age 55 to 65 with 10 years of credited service and
receive reduced retirement benefits. The system also provides death and
disability benefits. Benefits are established by State statute.
Covered general employees are required by State statute to contribute 4% of
their salary to the plan; in addition, there are various options available to
covered employees, where the employees may make additional contributions.
The employer is required by the same statute to contribute the remaining
amounts necessary to pay benefits when due. The employer's contribution
was 2.4% of covered payroll for 1991.
The retirement benefits for participants in KP&F are different from those
described above for other participants in the System. Normal retirement for
KP&F participants is at age 55. They can retire at age 50 with 20 years of
service, but with reduced benefits. The contribution rate was 3% to 7% for
employees and 15.2% for the employer for 1991.
25
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 and assess
progress made in accumulating sufficient assets to pay benefits when due.
The System does not make separate measurements of assets and pension
benefit obligation for individual employers. The pension benefit obligation
at June 30, 1991, for the System as a whole, determined through an actuarial
valuation performed as of that date, was $3.733 billion. The System's net
assets available for benefits on that date were estimated to be $3.760
billion, leaving no unfunded pension benefit obligation. The net assets
available for benefits exceeded the pension benefit obligation by $27 million.
Other information related to the system can be found in the KPERS 1991
Component Unit Financial Report.
Note 17. Construction Fund Projects
The Construction Fund is used to account for the purchase or construction of
capital facilities, equipment and public improvements.
Construction fund projects cumulative expenditures through
December 31, 1991 are compared to project authorizations as follows:
Project Name
Crawford Street Phase II
Water and Sanitary Sewer Extension
and Street Improvements (Country
Club Estates)
Sidewalk Improvements (89-791)
Schilling Road Interchange Project
from 1-135 to South Ninth Street
Sidewalk Improvements (90-808)
Crawford Street Phase III
Ninth and Cloud Intersection
North Street Bridge
Huesner Sidewalk
Connecting Links
1991 Sidewalks
Ninth and Belmont Intersection
KSU Boundary Roads
Project
Au thoriza tion
Cumulative
Expenditures
1,820,000
1,698,746
1,525,505
92,717
1,438,293
64,983
818,000
88,915
2,940,000
54,742
141,694
71 , 769
314,635
54,742
2,995
10,007
123,669
30,908
190,282
21,435
9,482
150,649
94,041
235,000
26
A summary of the fund's unencumbered cash balance (deficit) at
December 31, 1991 follows:
Cash balance resulting from:
Capital projects in process
Special Assessment projects
Total
$(28,875)
(15,250)
$(44,125)
---------
---------
General Funds are being used to temporarily finance the deficit cash balance
as of December 31, 1991 in accordance with K. S.A. 10-1116(a)(2).
Note 18. Compliance with Kansas Statutes
A summary of statutory violations related to 1991 follows:
A. Expenditures of the following funds exceeded budgeted expenditures for
the year ended December 31, 1991, which appears to be a violation of the
Kansas budget law (K. S . A . 79 - 2935 )
Fund
Recrea tion
Risk Management
Golf Course
Excess of Actual Expenditures
Over Budget
$81,241
20,866
42,210
B. Central Garage internal service fund has a deficit unencumbered cash
balance at December 31, 1991, which appears to be a violation of K.S.A.
10-1102, cash basis law.
Note 19. Change in Basis of Accounting
The City has prepared its financial statements for previous years on a
prescribed basis of accounting that demonstrates compliance with the cash
basis and budget laws of the State of Kansas, which is a comprehensive basis
of accounting other than generally accepted accounting principles.
Under this basis of accounting, revenues are recognized when cash is
received; expenditures include disbursements, accounts payable, and
encumbrances that is, commitments related to unperformed (executory)
contracts for goods or services.
The basis of presentation described above results in a statement of revenues
on the cash basis and expenditures on a modified accrual basis further
modified by the inclusion of encumbrances. Balance sheets that would have
shown non-cash assets such as receivables, inventories, and prepaid
expenses, liabilities such as deferred revenue and matured principal and
interest payable, and reservations of the fund balance are not presented.
Under generally accepted accounting principles, encumbrances are only
recognized as a reservation of fund balance; encumbrances outstanding at
year-end do not constitute expenditures or liabilities. Consequently, the
expenditures as reported do not present the cost of goods and services
27
received during the fiscal year in accordance with generally accepted
accounting principles. In addition, general fixed assets and long-term debt
account groups are not presented.
The City has prepared its financial statements
December 31, 1991, in accordance with generally
principles for government units.
for the year ended
accepted accounting
28
CITY OF SALINA
SUPPLEMENT AL INFORMATION
BUDGETARY BASIS
Receipts:
Taxes - Property
Taxes - Sales
Taxes - Franchise
Intergovernmental
Charges for Services
Fines
Interest
Reimbursements
Miscellaneous
Transfers in
Total receipts
Expenditures:
City Commission
City Manager
Legal
Finance
Buildi ngs
Human Relations
Police
Municipal Court
Parking Meters
Fire
Permits and Inspection
Engineering
Streets
Flood Works
Traffic Control
Parks
Swimming Pools
Neighborhood Centers
Arts and Humanities
Smoky Hill Museum
Planning
Heritage Commission
Cemetery
Contingency
Capi tal Outlay
Transfers out
Cash Reserve
Total expenditures
Receipts over (under) expenditures
City of Salina
General Fund
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual
-------------- --------------
788,513 800,876
5,718,000 5,714,378
1,477,000 1,509,053
1,126,314 1,116,231
704,000 851,148
400,000 395,001
550,000 542,473
75,000 556,900
20,500 55 ,719
451,514 451,798
-------------- --------------
11 ,310,841 11,993,577
-------------- --------------
Variance
12,363
(3,622)
32,053
( 10,083)
147,148
( 4 ,999 )
(7,527)
481,900
35,219
284
682,736
556,285 550,608 5,677
186,689 186,414 275
78,020 89,979 ( 11 ,959 )
348,118 351,329 (3,211)
206,073 198,389 7,684
102,028 101,113 915
2,079,194 2,120,017 ( 40 ,823 )
106,587 102,732 3,855
31,052 30,686 366
2,470,192 2,507,936 (37,744)
150,218 175,098 (24,880)
170,419 177,676 ( 7,257)
692,306 679,551 12,755
74,870 77,914 (3,044 )
125,263 118,598 6,665
619,500 599,236 20,264
55,400 66,139 ( 10,739 )
86,636 86,293 343
145,567 148,887 ( 3 ,320 )
172 ,052 166,813 5,239
116,481 114 ,788 1,693
7,300 7,619 ( 319 )
69,993 75,111 (5,118)
2,506,500 2,733,730 (227,230 )
812,000 820,837 (8,837)
852,535 922,730 ( 70 , 195 )
1,806,892 0 1,806,892
-------------- -------------- --------------
14,628,170 13,210,223 1,417,947
-------------- -------------- --------------
(3,317,329 ) (1,216,646 ) 2 , 100 ,683
-------------- -------------- -------------- 29
City of Salina
General Fund
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
Unencumbered Cash, January 1
3,317,329
4,208,443
Unencumbered Cash, December 31
o
2,991,797
--------------
--------------
--------------
--------------
Variance
891,114
2,991, 797
--------------
--------------
30
Receipts:
Taxes - Property
Intergovernmental
Reimbursements
Total receipts
Expenditures:
Earned Leave
Unemployment
Social Security
Li fe Insurance
Kansas Police and FiTe Retirement
Kansas Public Employees Retirement
Health Insurance
Transfers Out
Cash Reserves
Total expendituTes
Receipts over (under) Expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Employee Benefit
Statement of Receipts, Expenditures and
Changes in UnencumbeTed Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
2,338,712 2,335,366 ( 3 , 346 )
146,567 146,567 0
0 2,312 2,312
-------------- -------------- --------------
2,485,279 2,484,245 (1,034 )
-------------- -------------- --------------
40,000 0 40,000
26,600 22 ,105 4,495
275,000 295,522 ( 20 ,522 )
45,000 40,771 4,229
568,000 578,785 ( 10 ,785 )
74,000 70,843 3,157
995,000 960,362 34,638
290,688 290,688 0
220,000 0 220,000
-------------- -------------- --------------
2,534,288 2,259,076 275,212
-------------- -------------- --------------
( 49 ,009 ) 225,169 274,178
49,009 64,769 15,760
-------------- -------------- --------------
0 289,938 289,938
-------------- -------------- --------------
-------------- -------------- --------------
31
Receipts:
Taxes - Property
Transfers in
Total receipts
Expenditures:
Gas Service
Street Lighting
Water Service
Light and Power
Traffic Control
Cash Reserves
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Utility
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
Variance
702,875
15,000
702,463
15,000
( 412 )
o
717,875
717,463
(412 )
58,000 53,590 4,410
250,000 243,572 6,428
70,000 98,747 ( 28,747)
302,000 279,463 22,537
38,000 36,036 1,964
70,000 0 70,000
-------------- -------------- --------------
788,000 711 ,408 76,592
-------------- -------------- --------------
00,125) 6,055 76,180
70,125 153,740 83,615
-------------- -------------- --------------
0 159,795 159,795
-------------- -------------- --------------
-------------- -------------- --------------
32
Receipts:
Taxes - Property
Total receipts
Expenditures:
Transfers Out
Cash Reserves
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
Ci ty of Sali na
Special Liability
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
Variance
253,422
252,440
( 982 )
253,422
252,440
( 982 )
249,907 249,907 0
20,000 0 20,000
-------------- -------------- --------------
269,907 249,907 20,000
-------------- -------------- --------------
(16,485) 2,533 19,018
16,485 26,829 10,344
-------------- -------------- --------------
0 29,362 29,362
-------------- -------------- --------------
-------------- -------------- --------------
33
Receipts:
Taxes - Property
Charges for Services
Interest
Reimbursements
Total receipts
Expenditures:
Personal Services
Supplies
Contractual
Other Services and Charges
Capital Outlay
Cash Reserves
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Recreation
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
446,982 447,740 758
202,500 282,498 79,998
15,000 5,702 (9,298 )
10,000 15,672 5,672
-------------- -------------- --------------
674,482 751,612 77 ,130
-------------- -------------- --------------
345,109 404,243 (59,134 )
54,300 54,288 12
83,500 70,937 12,563
112,920 196,158 (83,238)
60,500 36,344 24,156
24,400 0 24,400
-------------- -------------- --------------
680,729 761, 970 ( 81,241)
-------------- -------------- --------------
(6,247) (10,358 ) (4,111)
6,247 12,311 6,064
-------------- -------------- --------------
0 1,953 1,953
-------------- -------------- --------------
-------------- -------------- --------------
34
Receipts:
Special Assessments
Total receipts
Expenditures:
Contractual
Transfers Out
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
Ci ty of Sali na
Business Improvement Dist.
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
75,000
61,724
75,000
61,724
58,000
17,000
44,751
17,000
75,000
61,751
o
( 27)
o
890
o
863
--------------
--------------
--------------
--------------
Variance
(13,276)
(13,276)
13,249
o
13,249
( 27)
890
863
--------------
--------------
35
Receipts:
Taxes - Transient Guest
Total receipts
Expenditures:
Contractual
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
Ci ty of Sali na
Tourism and Convention
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
300,000
261,273
300,000
261,273
300,000
261,273
300,000
261,273
o
o
o
--------------
--------------
--------------
--------------
Variance
( 38 ,727)
(38,727)
38,727
38,727
o
o
o
o
o
o
--------------
--------------
36
Receipts:
Intergovernmental
Total receipts
Expenditures:
Transfers Out
Total Expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
Ci ty of Sali na
Special Parks
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
67,713 77,448 9,735
-------------- -------------- --------------
67,713 77,448 9,735
-------------- -------------- --------------
71 ,504
71 ,504
o
71 ,504
71 ,504
o
(3,791)
5,944
9.735
3,791
11 ,078
7,287
o
17,022
17,022
--------------
--------------
--------------
--------------
--------------
--------------
37
Receipts:
Intergovernmental
Total receipts
Expenditures:
Contractual
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Special Alcohol
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
67,713
77 ,448
67,713
77,448
71,504
71,504
71 ,504
71,504
(3,791)
5,944
3,791
11 ,079
o
17,023
--------------
--------------
--------------
--------------
Variance
9,735
9,735
o
o
9,735
7,288
17,023
--------------
--------------
38
Receipts:
Total Receipts
Expenditures:
Capital Outlay
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Street Machinery
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
o
63,681
63,380
63,681
63,380
(63,681 )
( 63 ,380 )
63,681
63,380
o
--------------
--------------
--------------
--------------
Variance
o
o
301
301
301
(301 )
o
o
--------------
--------------
39
Receipts:
Intergovernmental
Total receipts
Expenditures:
Personal Services
Supplies
Capital Outlay
Transfers Out
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Special Gas
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
1,100,000 1, 056 ,022 ( 43 ,978 )
-------------- -------------- --------------
1,100,000 1,056,022 (43,978)
-------------- -------------- --------------
96,332 88,501 7,831
151,600 97,966 53,634
719,000 592,264 126,736
225,000 225,000 0
284,068 0 284,068
-------------- -------------- --------------
1,476,000 1,003,731 472,269
-------------- -------------- --------------
(376,000 ) 52,291 428,291
376,000 509,473 133,473
-------------- -------------- --------------
0 561,764 561,764
-------------- -------------- --------------
-------------- -------------- --------------
40
Receipts:
Charges for Services
Reimbursements
Transfers in
Total receipts
Expenditures:
Personal Services
Supplies
Contractual
Other Services and Charges
Capital Outlay
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Bicentennial Center
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
570,000 647,149 77 ,149
2,000 30,000 28,000
200,000 200,000 0
-------------- -------------- --------------
772,000 877 ,149 105,149
-------------- -------------- --------------
432,111 411,986 20,125
42,000 45,356 (3,356 )
2,000 281 1,719
254,600 308,264 ( 53 ,664 )
34,000 59,955 ( 25 ,955 )
244,520 0 244,520
-------------- -------------- --------------
1,009,231 825,842 183,389
-------------- -------------- --------------
(237,231 ) 51,307 288,538
237,231 213,750 (23,481)
-------------- -------------- --------------
0 265,057 265,057
-------------- -------------- --------------
-------------- -------------- --------------
41
Receipts:
Taxes
Special Assessments
Accrued Interest on Bonds
Miscellaneous
Transfers in
Total receipts
Expenditures:
Other services and Charges
Principal
Interest
Commission and Postage
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Debt Service Fund
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
769,484 757,342 (12,142 )
704,673 656,106 (48,567)
0 12,146 12,146
33,222 33,222 0
760,566 800,600 40,034
-------------- -------------- --------------
2,267,945 2,259,416 (8,529 )
-------------- -------------- --------------
0 391 ( 391 )
1,679,900 1,630,000 49,900
726,955 668,306 58,649
1,500 747 753
150,000 0 150,000
-------------- -------------- --------------
2,558,355 2,299,444 258,911
-------------- -------------- --------------
(290,410 ) ( 40 ,028 ) 250,382
290,410 344,280 53,870
-------------- -------------- --------------
0 304,252 304,252
-------------- -------------- --------------
-------------- -------------- --------------
42
Receipts:
Reimbursements
Transfers in
Total receipts
Expenditures:
Personal Services
Supplies
Contractual
Other Services and Charges
Capital Outlay
Transfers Out
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Risk Management
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Var iance
-------------- -------------- --------------
391 14,106 13,715
739,225 739,245 20
-------------- -------------- --------------
739,616 753,351 13,735
-------------- -------------- --------------
41,331 41,589 ( 258 )
1,900 3,646 (1,746 )
638,700 445,462 193,238
3,500 1,960 1,540
400 0 400
0 287,000 (287,000 )
72,960 0 72,960
-------------- -------------- --------------
758,791 779,657 ( 20 ,866 )
-------------- -------------- --------------
(19,175) (26,306 ) (7,131)
19,175 32,372 13,197
-------------- -------------- --------------
0 6,066 6,066
-------------- -------------- --------------
-------------- -------------- --------------
43
Receipts:
Reimbursements
Transfers in
Total receipts
Expenditures:
Supplies
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Worker's Compo Reserve
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
o
o
51,775
287,000
o
338,775
o
85,924
o
85,924
o
252,851
o
o
252,851
--------------
--------------
--------------
--------------
Variance
51,775
287,000
338,775
(85,924 )
(85,924)
252,851
o
o
252,851
--------------
--------------
44
Receipts:
Charges for Services
Reimbursements
Total receipts
Expenditures:
Personal Services
Supplies
Other Services and Charges
Capital Outlay
Transfers Out
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Central Garage
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31. 1991
Budget Actual Variance
-------------- -------------- --------------
739,457 716,855 ( 22 ,602 )
0 458 458
-------------- -------------- --------------
739,457 717,313 ( 22 , 144 )
-------------- -------------- --------------
172,987 176,512 ( 3 ,525 )
481,050 500,832 ( 19 ,782 )
12,100 15,872 (3,772)
8,500 8,393 107
4,820 4,820 0
60,000 0 60,000
-------------- -------------- --------------
739,457 706,429 33,028
-------------- -------------- --------------
0 10,884 10,884
0 ( 11 ,687 ) ( 11,687)
-------------- -------------- --------------
0 ( 803 ) ( 803 )
-------------- -------------- --------------
-------------- -------------- --------------
45
Ci ty of Sali na
Data Processing
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
Receipts:
Charges for Services 2,000 4,257 2,257
Reimbursements 32,400 29,954 ( 2 ,446 )
Miscellaneous 800 348 ( 452 )
Transfers in 197,639 197,639 0
-------------- -------------- --------------
Total receipts 232,839 232 , 198 ( 641 )
-------------- -------------- --------------
Expenditures:
Personal Services 154,373 144,567 9,806
Supplies 3,500 6,293 ( 2 ,793 )
Contractual 2,500 3,530 (1,030 )
Other Services and Charges 46,900 15,229 31,671
Capi tal Outlay 3,000 1,026 1,974
Transfers Out 2,330 2,330 0
Cash Reserve 20,236 0 20,236
-------------- -------------- --------------
Total expenditures 232,839 172,975 59,864
-------------- -------------- --------------
Receipts over (under) expenditures 0 59,223 59,223
Unencumbered Cash, January 1 0 25,104 25 ,104
-------------- -------------- --------------
Unencumbered Cash, December 31 0 84,327 84,327
-------------- -------------- --------------
-------------- -------------- --------------
46
Receipts:
Charges for Services
Interest
Miscellaneous
Total receipts
Expenditures:
Personal Services
Supplies
Contractual
Other Services and Charges
Capital Outlay
Transfers Out
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
Ci ty of Sali na
Sanitation
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget
Actual
708,000
30,000
1,300
760,355
35,610
1,478
739,300
797,443
457,352
114,280
13,320
61,230
87,000
87,270
465,430
438,447
107,900
14,045
59,537
85,747
87,270
o
1,285,882
792,946
(546,582 )
4,497
546,582
678,856
o
683,353
--------------
--------------
--------------
--------------
Variance
52,355
5,610
178
58,143
18,905
6,380
( 725 )
1,693
1,253
o
465,430
492,936
551,079
132,274
683,353
--------------
--------------
47
Receipts:
Charges for Services
Interest
Miscellaneous
Total receipts
Expenditures:
Personal Services
Supplies
Contractual
Other Services and Charges
Capital Outlay
Transfers Out
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
City of Salina
Solid Waste
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
290,000 348,445 58,445
50,000 37,974 (12,026)
100 11 ,508 11 ,408
-------------- -------------- --------------
340,100 397,927 57,827
-------------- -------------- --------------
144,183 145,721 ( 1 ,538 )
84,090 111,155 (27,065)
500 26,226 ( 25 ,726 )
18,400 21,702 ( 3 ,302 )
373,750 354,112 19,638
30,000 30,000 0
511 ,636 0 511 ,636
-------------- -------------- --------------
1,162,559 688 ,916 473,643
-------------- -------------- --------------
(822,459 ) ( 290 ,989 ) 531,470
822,459 935,294 112,835
-------------- -------------- --------------
0 644,305 644,305
-------------- -------------- --------------
-------------- -------------- --------------
48
Receipts:
Charges for Services
Interest
Reimbursements
Miscellaneous
Total receipts
Expenditures:
Personal Services
Supplies
Contractual
Other Services and Charges
Capital Outlay
Transfers Out
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
Ci ty of Sali na
Golf Course
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual Variance
-------------- -------------- --------------
422,000 486,574 64,574
0 2,896 2,896
3,000 1,003 ( 1, 997)
1,000 2,467 1,467
-------------- -------------- --------------
426,000 492,940 66,940
-------------- -------------- --------------
240,626 238.464 2,162
77 ,750 98.296 ( 20 ,546 )
9,000 16,676 (7,676 )
74,250 124,834 ( 50 ,584 )
32,000 33,020 ( 1,020)
2,920 2,920 0
35,454 0 35,454
-------------- -------------- --------------
472 ,000 514,210 (42,210 )
-------------- -------------- --------------
(46,000 ) (21,270 ) 24,730
46,000 59,805 13,805
-------------- -------------- --------------
0 38,535 38,535
-------------- -------------- --------------
-------------- -------------- --------------
49
Receipts:
Charges for services - Water
Charges for Services - Sewer
Interest
Reimbursements
Miscellaneous
Total receipts
Expenditures:
Water Administration
Water Customer Accounting
Water Distribution
Water Softening
Water Service
Sewer Collection
Sewer Pretreatment
Debt Service
Capital Outlay
Transfers Out
Cash Reserve
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
Ci ty of Sali na
Water and Sewer
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
Budget and Actual
For the fiscal year ended December 31, 1991
Budget Actual
-------------- --------------
5,049,000 5,217,812
1,556,000 1,649,849
300,000 307,279
300,000 3,264
25,000 112,651
-------------- --------------
7,230,000 7,290,855
-------------- --------------
982,300 941,344
322,903 399,576
512,732 531,427
1,684,832 1,425,242
248,821 213,488
803,818 808,300
39,836 32,565
900 2,366
400,000 1,698,189
1,137,830 922,601
4,928,399 0
-------------- --------------
11 ,062 ,371 6,975,098
-------------- --------------
(3,832,371) 315,757
3,832,371 3,982,313
-------------- --------------
0 4,298,070
-------------- --------------
-------------- --------------
Variance
168,812
93,849
7,279
( 296 ,736 )
87,651
60,855
40,956
(76,673 )
( 18,695 )
259,590
35,333
( 4 ,482 )
7,271
(1,466 )
(1,298,189 )
215,229
4,928,399
4,087,273
4,148,128
149,942
4,298,070
--------------
--------------
50
Ci ty of Salina
Bicentennial Center Event
Statement of Receipts, Bxpenditures and
Changes in Unencumbered Cash
Por the fiscal year ended December 31. 1991
Receipts:
Charges for Services
Total receipts
Expenditures:
Supplies
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
896,068
896,068
888,081
888,081
7,987
22,322
--------------
--------------
30,309
51
City of Salina
BUD Ca--ity Development
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For the fiscal year ended December 31. lQQl
Receipts:
Intergovernmental
Interest
Reimbursements
Transfers in
Total receipts
Expenditures:
Personal Services
Supplies
Contractual
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
81,300
1,793
49,317
5,045
137,455
32,546
20,530
164,706
217,782
(80,327)
32,233
--------------
--------------
(48,094)
52
City of Salina
Community Development Rev.
Statement of Receipts. Expenditures and
Changes in Unencumbered Cash
For the fiscal year ended December 31. lqql
Receipts:
Interest
Reimbursements
Total receipts
Expenditures:
Contractual
Transfers Out
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash. January 1
Unencumbered Cash. December 31
1991
2.335
18.849
21.184
16.925
5,045
21,970
(786 )
47,246
--------------
--------------
46.460
53
Ci ty of Salina
Heritage Commission
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For thp fiscal year ended December 3}, lqql
1991
Expenditures:
Total expenditures
o
Unencumbered Cash, January 1
426
Unencumbered Cash. December 31
426
--------------
--------------
54
Ci ty of Salina
Fair Housing
Statement of Receipts. Expenditures and
Changes in Unencumbered Cash
F0r thp fi sc.:ll Vf>ar ended DE>cemop.... -q. 1 QQ 1
Receipts:
Intergovernmental
Reimbursements
Total receipts
Expenditures:
Contractual
Other Services and Charges
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash. December 31
1991
4.750
2.350
7.100
1.539
4.346
5.885
1.215
629
--------------
--------------
1.844
55
Ci ty of Salina
Special Law Enforcement
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For the fiscal year ended December 31. 1991
Receipts:
Miscellaneous
Total receipts
Expenditures:
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash. January 1
Unencumbered Cash, December 31
1991
3.050
3.050
o
3,050
1.409
--------------
--------------
4,459
56
Ci ty of Salina
Water and Sewer P & I
Statement of Receipts, Expenses and
Changes in Unencumbered Cash
For the fiscal year ended Decembpr 31. 1991
Receipts:
Reimbursements
Interest
Transfers in
Total receipts
Expenditures:
Principal
Interest
~88ion on Bonds
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
11,245
82,440
675,770
769,455
220,000
663,895
23
883,918
( 114,463)
360,790
246,327
--------------
--------------
57
Ci ty of Salina
Water and Sewer Bond Reserves
Statement of Receipts, Expenses and
Changes in Unencumbered Cash
For the fiscal year ended December 31. 1Qq,
1991
Receipts:
Total receipts
o
Unencumbered Cash. January 1
1,891,258
Unencumbered Cash. December 31
1.891,258
--------------
--------------
Comprised of:
Extension and Bond Retirement Reserve
1990 Bond Reserve
Depreciation and Emergency Replacement
$
979.758
786.500
125.000
$ 1,891,258
---------------
---------------
58
Ci ty of Salina
Construction
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
tor the fiscal year ended December ~l. 1991
Receipts:
Intergovernmental
Interest
Reimbursements
Other Financing
Total receipts
Expenditures:
Capital Outlay
Transfer Out
Temporary Notes
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
30,046
19,202
105.822
6,069,458
6,224.528
1.224,739
91,044
4,300.525
5.616.308
608.220
(652.346)
(44,126)
--------------
--------------
59
Ci ty of Salina
Community Theatre Construction
Statement of Receipts. Expenditures and
Changes in Unencumbered Cash
Por the fiscal vear ended December 31. 19q1
Receipts:
Reimbursements
Total receipts
Expenditures:
Capital Outlay
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash. December 31
1991
2.363
2,363
5.000
5,000
(2.637)
2.637
--------------
--------------
o
60
City of Salina
Pre~er Baaeball Pield
Statement of Receipts. Expenditures and
Changes in Unencumbered Cash
For the fiscal year ended Decemb~r 31. 1991
Receipts:
Interest
Reimbursements
Total receipts
Expenditures:
Capital Outlay
Total expenditures
Receipts over (under) expenditures
Unencumbered Cash. January 1
Unencumbered Cash. December 31
1991
752
67.459
68.211
68. 119
68 .119
92
o
--------------
--------------
92
61
City of Salina
Citizenship Trust
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For the Fiscal Year Ended December 31, 1991
Receipts:
Interest
Total Receipts
Expenditures:
Other Services and Charges
Total Expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
725
725
750
750
(25)
13,862
13,837
------
------
62
City of Salina
Cemetery Endowment
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For the Fiscal Year Ended December 31, 1991
Receipts:
Charges for Service
Interest
Total Receipts
Expenditures:
Other Services and Charges
Total Expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
3,397
5,736
9,133
37
37
9,096
107,333
116,429
-------
-------
63
City of Salina
Mausoleum Endowment
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For the Fiscal Year Ended December 31, 1991
Receipts:
Interest
Total Receipts
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
948
948
17,999
18,947
------
------
64
City of Salina
Special Assessment Escrow
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For the Fiscal Year Ended December 31, 1991
Receipts:
Special Assessments
Interest
Total Receipts
Expenditures:
Transfers out
Total Expenditures
Receipts over (under) expenditures
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
80,272
4,090
84,362
5,959
5,959
78,403
26,822
105,225
-------
-------
65
City of Salina
Tricentennial Commission
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For the Fiscal Year Ended December 31, 1991
Receipts:
Interest
Total Receipts
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
184
184
2,408
2,592
------
------
66
City of Salina
Fire Insurance Proceeds
Statement of Receipts, Expenditures and
Changes in Unencumbered Cash
For the Fiscal Year Ended December 31, 1991
Receipts:
Reimbursements
Total Receipts
Unencumbered Cash, January 1
Unencumbered Cash, December 31
1991
995
995
o
995
------
------
67
CITY OF SALINA
Salina, Kansas
SINGLE AUDIT SECTION
KENNEDY AND COE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
INDEPENDENT AUDITORS' REPORT ON SCHEDULE
OF FEDERAL FINANCIAL ASSISTANCE
To the Mayor and
The Board of City Commissioners
City of Salina, Kansas:
We have audited the general purpose financial statements of the City of Salina, Kansas, for the year
ended December 31, 1991, and have issued our report thereon dated October 22, 1992. These general
purpose financial statements are the responsibility of the City's management. Our responsibility is
to express an opinion on these general purpose 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 general purpose financial statements are free of material misstate-ment.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
general purpose 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 made for the purpose of forming an opinion on the general purpose financial statements
of the City of Salina, Kansas, 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 general
purpose financial statements. The information in that schedule has been subjected to the auditing
procedures applied in the audit of the general purpose financial statements and, in our opinion, is
fairly presented in all material respects in relation to the general purpose financial statements taken
as a whole.
Salina, Kansas
October 22, 1992
Respectfully submitted,
~~
~/
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS
68
CITY OF SALINA
Salina, Kansas
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
December 31, 1991
Federal Grantor/ Federal
Pass Through Grantor/ CFDA January 1, Revenue Expendi- December 31,
Program Title Number 1991 Recognized tures 1991
U.S. Department of Housing
and Urban Development:
Emergency Shelter Grants
Program (Passed Through
Department of Social and
Rehabilitation Services) 14.231 ($553) $ 10.585 $ 10.032 L-:.
Community Development
Block Grant/Small Cities
Program (Passed Through
Kansas Department of
Commerce) 14.219
Housing, Grant No.
89-HR-099 47,814 47,814
Housing, Grant No.
91-HR-080 84.637 84.637 -
-
132.451 132.451
Cooperative Agreement for
Fair Assistance Program
(Direct Assistance)
Contract No. FF207K897008 629 629
Contract No. FF207K907008 - 11.500 11.500 -
- -
629 11.500 12.129 -
-
Total Federal Financial
Assistance 1...ll $154.536 $154.612 .L.....;.
69
KENNEDY AND COE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
INDEPENDENT AUDITORS' SINGLE AUDIT COMBINED REPORT
ON INTERNAL CONTROL STRUCTURE
To the Mayor and
The Board of City Commissioners
City of Salina, Kansas:
We have audited the general purpose financial statements of the City of Salina, Kansas, for the year
ended December 31, 1991, and have issued our report thereon dated October 22, 1992.
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 (OMB) Circular A-128, II Audits of State and Local Governments. II Those
standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended December 31, 1991, we considered the City's
internal control structure in order to determine our auditing procedures for the purpose of expressing
our opinion on the City's general purpose financial statements and not to provide assurance on the
internal control structure.
The management of the City of Salina, Kansas, 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 general purpose 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 limita-tions in any internal
control structure, errors, irregularities, or instances of noncompliance 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.
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
70
For the purpose of this report, we have classified the significant internal control structure policies and
procedures in the following categories:
Accounting Controls
1. Cash and investment balances
2. Revenue/receipts
3. Purchases/disbursements
4. Financial reporting
Controls Used in Administering Federal Programs
1. General requirements
Political activity
Civil rights
Cash management
Allowable costs
Drug-free workplace
2. Specific requirements
Types of services
Matching
Reporting
Special requirements
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, 1991, the City of Salina, Kansas, had no major federal financial
assistance programs and expended 86 percent of its total federal fmancial assistance under the
following nonmajor federal financial assistance program: U.S. Department of Housing and Urban
Development - Community Development Block Grant/Small Cities Program.
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 have considered
relevant to preventing or detecting material noncompliance with specific requirements, general
requirements, and requirements governing claims for advances and reimbursements and amounts
claimed or used for matching that are applicable to the aforementioned nonmajor program. 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 the specific 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 general purpose 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.
71
This report is intended for the information of the Mayor, Board of City Commissioners and
management of the City of Salina, Kansas. However, this report is a matter of public record and its
distribution is not limited.
Respectfully submitted,
Salina, Kansas
October 22, 1992
~~~
72
KENNEDY AND COE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
LAWS AND REGULATIONS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Mayor and
The Board of City Commissioners
City of Salina, Kansas:
We have audited the general purpose financial statements of the City of Salina, Kansas, as of and for
the year ended December 31, 1991, and have issued our report thereon dated October 22, 1992.
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 City of Salina, Kansas, is
the responsibility of the City's management. As part of obtaining reasonable assurance about whether
the financial statements are free of material misstatement, we performed tests of the City'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 City of Salina, Kansas,
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 City of
Salina, Kansas, had not complied, in all material respects, with those provisions.
We noted certain instances of noncompliance, as described in Note 18, that do not result 10
misstatements in the financial statements.
This report is intended for the information of the Mayor, Board of City Commissioners and
management of the City of Salina, Kansas. However, this report is a matter of public record and its
distribution is not limited.
Respectfully submitted,
Salina, Kansas
October 22, 1992
K~~~
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
73
KENNEDY AND COE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913-825-1561
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE
GENERAL REQUIREMENTS APPLICABLE TO
FEDERAL FINANCIAL ASSISTANCE PROGRAMS
To the Mayor and
The Board of City Commissioners
City of Salina, Kansas:
We have audited the general purpose financial statements of the City of Salina, Kansas, as of and for
the year ended December 31, 1991, and have issued our report thereon dated October 22, 1992.
We have applied procedures to test the compliance of the City of Salina, Kansas, with the following
requirements applicable to each of its federal financial assistance programs for the year ended
December 31, 1991: political activity, civil rights, cash management, allowable costs, and Drug-Free
Workplace Act.
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 City'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 City of Salina,
Kansas, had not complied, in all material respects, with those requirements.
This report is intended for the information of the Mayor, Board of City Commissioners and
management of the City of Salina, Kansas. However, this report is a matter of public record and its
distribution is not limited.
Respectfully submitted,
Salina, Kansas
October 22, 1992
~~~
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
74