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Audit Report- 1988 I I I I I I I I I I I I I I I I I I !I SALINA RECREATION COMMISSION Salina, Kansas REPORT ON EXAMINATION June 30, 1988 CLUBINE AND RETTELE, CHARTERED certified Public Accountants Salina, Kansas I I I I I I I I I I I I I I I I I I I SALINA RECREATION COMMISSION Salina, Kansas Special Financial Statements For the Fiscal Year Ended June 30, 1988 TABLE OF CONTENTS Item Auditor's Report. . Statement 1 Comparison of Cash Balances with Encumbrances and Composition of Cash .. . (Statutory Basis) General Fund. . Special Revenue Fund Employee Benefit Fund Trust and Agency Funds Concession Fund . . : . . . Activity Fund . . Notes to the Financial Statements . ADDITIONAL INFORMATION Schedule 1 Detailed Schedule of Revenues . . Schedule 2 Detailed Schedule of Expenditures Schedule 3 Insurance Coverage. Schedule 4 Fidelity Bonds. . . . Schedule 5 Comparison of Depository Security with Balances on Deposit. .... APPENDIX A Compliance Checklist. Page Numbers 1 2 3 4 5 6 7-9 10 11-12 13 14 15 16-17 I I ~Wt~& I~ I I I I I I I I I I I I I I I Ellsworth 913/472-3915 II ~. Robert 1. Clubine, c.P.A. David A. Rettde, c.P.A. Jay D. Langley, c.P.A. James R, Calahan, c.P.A. 218 South Santa Fe P.O. Box 2267 Salina, Kansas 67402-2267 Salina 913/825-5479 913/827-1188 Salina Recreation Commission Salina, Kansas We have examined the financial statements of the Salina Recreation Commission, as of and for the year ended June 30, 1988, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and the Minimum Standard Audit Proqram, as amended, approved by the State Municipal Accounting Board and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The basis of presentation of the aforementioned statements is described in Note 2 to the financial statements. Note 3 describes how the basis of presentation differs from generally accepted accounting principles. Accordingly, the state- ments are not intended to be presented in confor- mity with generally accepted accounting principles. - In our opinion, the aforementioned financial statements are presented fairly, in conformity with the basis of accounting described for the year then ended, on a basis consistent with that of the previous year. The accompanying additional information listed in the table of contents is not necessary for a fair presentation of the financial statements, but is presented as additional analytical data. This information has been subject to the tests and other auditing procedures applied in the examina- tion of the financial statements mentioned above and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. CLUBINE AND RETTELE, CHARTERED September 30, 1988 ~ ~~4. CPA , nd actively this audit 1 I I I I I I I I I I I I I I I I I I I SALINA RECREATION COMMISSION Salina, Kansas Statement 1 COMPARISON OF CASH BALANCES WITH ENCUMBRANCES AND COMPOSITION OF CASH For the Fiscal Year Ended June 30, 1988 Funds Unencumbered Receipts Disbursements Unencumbered Add Treasurer's Cash Balance and AlP, Encumb. Cash Balance AlP and Cash 7-1-87 Transfers and Transfers 6-30-88 Encumbrances 6-30-88 $120,056.40 $585,243.97 $619,593.85 $ 85,706.52 $ 54,472.60 $140,179.12 GENERAL SPECIAL REVENUE Employees Benefit 45,993.50 47,675.31 7,068.21 7,068.21 8,750.02 TRUST AND AGENCY FUNDS Activity Concession 3,405.96 9,618.00 53,639.02 53,113.10 3,931.88 3,931.88 41 ,328.86 36,767.19 14,179.67 (76.13) 14,103.54 ----------- ----------- ----------- ----------- ----------.. $726,205.35 $757,149.45 $110,886.28 $ 54,396.47 $165,282.75 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Totals $141,830.38 COMPOS IT I ON Cash at Golf Course Snack Bar Cash at Kenwood Pool Cash on Hand Certificates of deposit - Bank IV (Salina, Kansas) Cash in Bank - National Bank of America (Salina, Kansas) Savings Account - National Bank of America (Salina, Kansas) Insufficient Funds $ 100.00 32,487.36 50,000.00 73,979.44 8,685.95 30.00 Totals $165,282.75 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. 2 I I I I I I I I I I I I I I I I I I , II I SALINA RECREATION COMMISSION Salina, Kansas Statement 2 COMPARISON OF RECEIPTS, EXPENDITURES, TRANSFERS, ENCUMBRANCES AND CHANGES IN UNENCUMBERED CASH - BUDGET AND ACTUAL (STATUTORY BASIS) GENERAL FUND For the Fiscal Year Ended June 30, 1988 with Comparative Actual Amounts for the Fiscal Year Ended June 30, 1987 Budqet 1988 Variance Favorable Actual (Unfavorable) 1987 Actual Unencumbered cash, 7-1-87 $120,200.00 $120,056.40 $ (143.60) ----------- ----------- ----------- Receipts & Transfers General Property Taxes 458,081.00 451,443.29 (6,637.71) 450,794.71 Reimbursed Expenses 100,000.00 125,224.17 25,224.17 89,638.71 Interest 8,576.51 8,576.51 9,934.50 ----------- ----------- ----------- ----------- Total Receipts & Transfers 558,081.00 585,243.97 27,162.97 $550,367.92 ----------- ----------- ----------- ----------- ----------- Disb. , AlP, Encumb. , and Transfers 591,944.00 619,593.85 (27,649.85) 610,212.10 Budget Credits ----------- ----------- ----------- ----------- Total Disb. , AlP, Encumb. & Budget Credits 591,944.00 619,593.85 (27,649.85) $610,212.10 ----------- ----------- ----------- ----------- ----------- Unencumbered Cash, 6-30-88 $ 86,337.00 $ 85,706.52 $ (630.48) ----------- ----------- ----------- ----------- ----------- ----------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. 3 I I I I I I I I I I I I I I I I I I I SALINA RECREATION COMMISSION Salina, Kansas Statement 2 (Cont. ) COMPARISON OF RECEIPTS, EXPENDITURES, TRANSFERS, ENCUMBRANCES AND CHANGES IN UNENCUMBERED CASH - BUDGET AND ACTUAL (STATUTORY BASIS) SPECIAL REVENUE FUNDS EMPLOYEE BENEFIT FUND For the Fiscal Year Ended June 30, 1988 with Comparative Actual Amounts for Fiscal Year Ended June 30, 1987 Budqet 1988 Variance Favorable Actual (Unfavorable) 1987 Actual Unencumbered cash, 7-1-87 $ 8,747.00 $ 8,750.02 $ 3.02 ----------- ----------- ----------- Receipts & Transfers Ad Valorem Property Taxes 44,538.00 45,993.50 1,455.50 $ 22,044.91 ----------- ----------- ----------- ----------- ----------- Disb. , A/P, Encumb. and Transfers 46,000.00 47,675.31 (1,675.31) $ 25,901. 79 ----------- ----------- ----------- ----------- ----------- Unencumbered Cash, 6-30-88 $ 7,285.00 $ 7,068.21 $ (216.79) ----------- ----------- ----------- ----------- ----------- ----------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. 4 I I I I I I I I I I I I I I I I I I I SALINA RECREATION COMMISSION Salina, Kansas Statement 2 COMPARISON OF RECEIPTS, EXPENDITURES, TRANSFERS, ENCUMBRANCES AND CHANGES IN UNENCUMBERED CASH - BUDGET AND ACTUAL (STATUTORY BASIS) TRUST AND AGENCY FUNDS CONCESSION FUND For the Fiscal Year Ended June 30, 1988 with Comparative Actual Amounts for the Fiscal Year Ended June 30, 1988 6-30-88 Actual 6-30-87 Actual $ 9,618.00 $ 14,023.01 Unencumbered Cash, 7-1-87 Receipts and Transfers Interest Receipts - East Crawford Receipts - Indian Rock Receipts - Kenwood Pool Receipts - Shilling Receipts - Sunset Receipts - Golf Course Total Receipts and Transfers Disb., AlP Encumb., and Transfers Payment to city of Salina - Golf Course utilities Operation supplies Salaries Merchandise purchases Miscellaneous 326.43 11,661. 60 7,538.68 12,013.06 4,413.61 5,375.48 41,328.86 5,375.48 167.93 8,276.94 18,307.71 4,639.13 Total Disb., AlP, Encumb. and Transfers Unencumbered Cash, 6-30-88 36,767.19 $ 14,179.67 $ 9,618.00 39,373.63 586.31 5,265.30 7,606.98 10,094.21 1,764.17 3,955.13 5,696.52 34,968.62 5,696.52 186.25 377.07 8,132.77 15,457.69 9,523.33 ----------- ----------- ----------- ----------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. 5 I I I I I I I I I I I I , I I I I I I I SALINA RECREATION COMMISSION Salina, Kansas Statement 2 (Cont. ) COMPARISON OF RECEIPTS, EXPENDITURES, TRANSFERS, ENCUMBRANCES, AND CHANGES IN UNENCUMBERED CASH - ACTUAL (STATUTORY BASIS) TRUST AND AGENCY FUNDS ACTIVITY FUND For the Fiscal Year Ended June 30, 1988 with Comparative Actual Amounts for the Fiscal Year Ended June 30, 1987 6-30-88 Actual 6-30-87 Actual $ 3,405.96 $ 5,761.03 Unencumbered Cash, 7-1-87 Receipts and Transfers Fees Transfer from concession fund 53,639.02 Total Receipts and Transfers Disb., A/P Encumb., and Transfers Transportation Meals and lodging Supplies Equipment rental Lift tickets Admissions Miscellaneous 53,639.02 16,517.05 22,170.55 3,090.00 8,226.00 2,052.26 1,057.24 Total Disb., A/P, Encumb. and Transfers 53,113.10 $ 3,931.88 $ 3,405.96 47,523.52 Unencumbered Cash, 6-30-88 45,168.45 45,168.45 13,494.42 22,921.11 133.04 2,209.00 6,382.50 800.55 1,582.90 ----------- ----------- ----------- ----------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. 6 I I I I I I I I I I I I I I I I I I I SALINA RECREATION COMMISSION Salina, Kansas NOTES TO FINANCIAL STATEMENTS For the Fiscal Year Ended June 30, 1988 1. Fund Accounting A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The following types of funds comprise the financial activities of the Salina Recreation Commission for the fiscal year ending June 30, 1988. Governmental Funds: General Fund--to account for all unrestricted resources except those required to be accounted for in another fund. Special Revenue Funds--to account for the proceeds of specific revenue sources (other than special assessments or major capital projects) that are restricted by law or administrative action to expenditure for specified purposes. Capital Project Funds--to account for financial resources segregated for the acquisition of major capital facilities (other than those financed by Enterprise Funds). Debt Service Funds--to account for the accumulation of resources for, and the payment of, interest and principal on general long-term debt, and the financing of special assessments which are general obligations of the Salina Recreation Commission. Proprietary Funds: Enterprise Funds--to account for operations that are financed and operated in a manner similar to private business enterprises--where the stated intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered 7 I I I primarily through user charges--or where periodic determination of revenues earned, expenses incurred, and/or net income is deemed appropriate for capital maintenance, public policy, management control, accountability or other purposes. Internal Service Funds--to account for the financing of goods and services provided by one department or agency to other departments or agencies of the governmental unit, or other governmental units, on a cash-reimbursement basis. I I I I Fiduciary Funds: Trust and Aqency Funds--to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. These include (a) Expendable Trust Funds, (b) Nonexpend- able Trust Funds, (c) Pension Trust Funds and (d) Agency Funds. 2. Basis of Presentation These financial statements are presented in compliance with the cash basis and budget laws of Kansas. Revenues are recognized when cash is received. Expenditures include disbursements, accounts payable and encumbrances--that is, commit- ments related to unperformed (executory) contracts for goods or services. I I I I I I 3. Departure from Generally Accepted Accountinq Principles The basis of presentation described above results in a statement of revenues on the cash basis and expendi- tures 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 received during the fiscal year in accordance with generally accepted accounting principles. In addition, General Fixed Assets that account for the land, buildings and equipment owned by the Salina Recreation Commission are not recorded. A waiver of fixed accounting has been approved until 7-1-88. I I I I I I 8 I I I I I I I I I I I I I I I I I I II The required balance sheet, income statement and the statement of changes in financial position are not presented for the proprietary fund types. Generally accepted accounting principles require these fund types to be accounted for by the full accrual method of accounting. 4. Budqet and Tax Cycle Kansas laws require that a budget for the next calendar year be adopted for the general, special revenue, debt service and enterprise funds unless exempted by specific statute. These budgets are prepared utilizing the modified accrual basis--revenues are recognized in the accounting period in which they become susceptible to accrual (that is when they become both measurable and available to finance expenditures of the fiscal period); expenditures are recognized whenever any indebtedness is created (the encumbrance method of accounting). Interest on unmatured long-term debt is recognized when due. All budgets must be filed with the county clerk by August 25th. The county clerk must calculate the final tax levy rates necessary to finance the budget subject to any legal limitations. After all budgets have been received and tax rates calculated, the clerk certifies the tax roll to the county treasurer, who prepares tax statements and receives payment. These taxes become a lien against all property November 1st. Taxpayers have the option of paying in full or in two installments. The delinquency dates are December 20th and June 20th. Delinquent taxes are assessed interest at 18 percent per annum. This interest is retained by the county. Taxes levied to finance the budget are made available to the Salina recreation commission after January 1st and are distributed by the county treasurer approximately every month and a half. At least 50 percent of the taxes levied are available in January. Delinquent tax collections are distributed throughout the year. 5. Statutory violations None. 6. Lonq-Term Debt None. 9 I I I I I I I I I I I I I I I I I I II SALINA RECREATION COMMISSION Salina, Kansas Schedule 1 DETAILED SCHEDULE OF REVENUES For the Fiscal Year Ended June 30, 1988 with Comparative Actual Amounts for the Fiscal Year Ended June 30, 1987 Budqet General Property Taxes Ad Valorem Property Taxes $373,591.00 Back Taxes 5,648.00 Other Taxes 78,842.00 Total Taxes $458,081.00 ----------- ----------- Refunds and Reim- bursements $100,000.00 ----------- ----------- Interest $ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 8,576.51 $ 8,576.51 $ 9,934.50 GENERAL FUND 1988 Variance Favorable Actual (Unfavorable) 1987 Actual $365,971.53 $ (7,619.47) $364,202.78 7,879.59 2,231.59 6,925.84 77,592.17 (1,249.83) 79,666.09 ----------- ----------- ----------- $451,443.29 $ (6,637.71) $450,794.71 ----------- ----------- ----------- ----------- ----------- ----------- $125,224.17 $ 25,224.17 $ 89,638.71 ----------- ----------- ----------- ----------- ----------- ----------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. 10 I I I I I I I I I I I I I I I I I I I SALINA RECREATION COMMISSION Salina, Kansas Schedule 2 DETAILED SCHEDULE OF EXPENDITURES For the Fiscal Year Ended June 30, 1988 with Comparative Actual Amounts for the Fiscal Year Ended June 30, 1987 GENERAL FUND Budqet 1988 Variance Favorable Actual (Unfavorable) 1987 Actual Personal Services Full time Part time $155,200.00 70,700.00 $157,041.54 77,000.30 $ (1,841.54) $132,501.66 (6,300.30) 76,268.53 Total Personal Services $225,900.00 $234,041.84 $ (8,141.84) $208,770.19 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Contractual Services Telephone $ 6,600.00 $ 7,094.50 $ (494.50) $ 7,086.53 Travel & training 7,200.00 9!082.00 (1,882.00) 6,533.30 Business expense 700.00 677.31 22.69 697.72 Postage & freight 5,500.00 5,712.06 (212.06) 5,816.52 Printing & adver- tising 4,200.00 4,943.24 (743.24) 4,482.09 Insurance 3,500.00 3,141.60 358.40 5,155.00 Group insurance 14,574.30 Light & power 18,000.00 14,325.17 3,674.83 15,193.31 Water service 600.00 553.99 46.01 544.24 Building repairs 5,000.00 5,278.05 (278.05) 5,140.31 Transportation 5,000.00 2,986.30 2,013.70 2,741.49 Audit 1,800.00 1,510.00 290.00 1,510.00 Other professional services 87,800.00 90,576.01 (2,776.01) 81,306.27 Other contractual services 4,500.00 5,154.89 (654.89) 2,236.22 Rentals ----------- ----------- ----------- ----------- Total Contractual Services $150,400.00 $151,035.12 $ (635.12) $153,017.30 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. 11 I I I I I I I I I I I I I I I I I I I SALINA RECREATION COMMISSION Salina, Kansas Schedule 2 (Cont.) DETAILED SCHEDULE OF EXPENDITURES (CONT.) For the Fiscal Year Ended June 30, 1988 with Comparative Actual Amounts for the Fiscal Year Ended June 30, 1987 $178,844.00 $188,717.57 $ (9,873.57) $210,697.16 Commodities Office supplies $ Janitorial supplies Recreation supplies Other operating supplies Vehicles & equip- ment maintenance Chemicals Gas & oil Dues & subscriptions Miscellaneous Refunds Total Commodities Capital Outlay Facilities Equipment Vehicles Building Total Capital Outlay Budqet 3,800.00 800.00 20,000.00 3,200.00 6,000.00 800.00 1,500.00 700.00 $ 36,800.00 ----------- ----------- $168,344.00 10,500.00 GENERAL FUND 1988 Variance Favorable Actual (Unfavorable) 1987 Actual $ 6,143.67 $ (2,343.67) $ 4,167.92 534.23 265.77 802.73 27,865.43 (7,865.43) 21,648.45 2,614.96 585.04 3,245.24 5,554.42 445.58 5,386.07 770.00 30.00 464.41 1,569.61 (69.61) 1,547.63 747.00 (47.00) 465.00 ----------- ----------- ----------- $ 45,799.32 $ (8,999.32) $ 37,727.45 ----------- ----------- ----------- ----------- ----------- ----------- $180,745.46 $(12,401.46) $162,643.88 7,972.11 2,527.89 14,882.00 33,171.28 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. 12 I I I I I ~ of Insurance Fire and Extended Coverage I I I Bodily Injury, Property Damage Medi ca l., Comprehens i ve and Collision and Upset I I I Bodily Injury Each Person Each Accident Property Damage Each Accident Medical Each Person Uninsured Motorist Bodily Injury I I Workman's Compensation I General liability I I SALINA RECREATION COMMISSION Salina, Kansas INSURANCE COVERAGE June 30, 1988 Property Insured Contents located in the joint City-County Building, Salina, Kansas Contents located at 1720 N. 5th Contents located at 835 Markley Road Indian Rock Park Contents located at 1722 N. 5 th Playground Equipment located at 410-412 W. Ash Street 1972 Ford 1 Ton Truck 1984 Ford Van 1980 Dodge Van 1988 Buick Skylark 1984 Enclosed Box Type Trailer 1981 Chevy Van 1987 Dodge Van Schedule 3 Amount Insurance Co- Insurance $ 18,000 80% 9,000 80% 15,000 80% 6,000 80% 15,000 80% 14,000 80% $500,000 500,000 500,000 2,000 500/500,000 Statutory limits 500/500,000 I SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. I I 13 I I I I I Bond Number 87-0030-00346-758 I I I I I I I I I I I I I I Inception Date 4-1-87 Expiration Date 4-1-88 SALINA RECREATION COMMISSION Sal ina, Kansas FIDELITY BONDS June 30, 1988 Official Position Schedule 4 Amount of Bond .l!:! Name of Superintendent of Recreation Commission Chairman of Recreation Commission Vice Chairman of Recrea- tion Commission Secretary-Treasurer of Recreation Commission Director of Community Services $10,000.00 Salina Recreation Commission Salina Recreation $10,000.00 Commission Salina Recreation $10,000.00 Commission Salina Recreation $10,000.00 Commission Salina Recreation $10,000.00 Commission SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS YHICH ARE AN INTEGRAL PART HEREOF. 14 I I I SALINA RECREATION COMMISSION Sal ina, Kansas Schedule 5 I COMPARISON OF DEPOSITORY SECURITY WITH BALANCES ON DEPOSIT June 30, 1988 I I F.D.I .C. Cover<lqe Security Pledqed Total Cover<lqe Bank Balance Bank Balance Unsecured The National Bank of America, Salina, Kansas I Interest Bearing Accounts $100,000.00 $150,000.00 $250,000.00 $130,880.63 $ I Bank IV Salina, Kansas Certificates of Deposit $ 50,000.00 $ - $ 50,000.00 $ 50,000.00 $ I I I I I I I I I SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. I 15 I I I I I I I I I I I I I I I I I I I I COMPLIANCE CHECKLIST Miscellaneous Municipality Recreation Commission Period Ended 6-30-88 General 1. Adequacy of internal control (SAS AU section 320). 2. Income from investments properly accounted for and credited to funds. (KSA 10-131, 12-1677, 15-124). 3. Investments made in accordance with statutory provisions (KSA 10-131, 12-1675, 17-5002) . 4. Fixed asset accounting policies and pro- cedures properly established (KSA 75-1120a). A waiver of fixed asset accounting has been received. 5. Petty cash funds limited to statutory use (KSA 72-8208) (KSA 71-201(16)) (KSA 12-171) (KSA 19-26419-267). 6. Depositories officially designed for all public monies (KSA 9-1401). 7. Bank deposits adequately secured (KSA 9- 1403). 8. Peak periods designated and used properly (KSA 9-1403) . 9. Proceeds from bonded obligations expended for authorized purposes (KSA 10-117). 10. Levies for sinking and reserve funds made in accordance with statutory provisions (KSA 10- 113) . 11. Claims itemized, internally audited and approved (KSA 12-105b). 12. Budget approved by the governing body (KSA 79-2925 et seq.). 16 Remarks Yes Yes Yes No Yes Yes Yes None N/A N/A Yes Yes I I I I I I I I I I I I I I I I I I I 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Expenditures made in compliance with the budget law (KSA 79-2935) . Expenditures made in compliance with the cash basis law (KSA 10-1113). Disclosures of violations of statutory provisions in the notes to financial statements (KSA 75-1126). The county attorney received a copy of the audit report (KSA 75-1126). All funds and accounts of the district audited (KSA 75-1117). Fidelity bonds and insurance policies properly filed (KSA 13-518 and 13-2106). Minutes contain an adequate record of the proceedings of the governing body, indexed and signed (KSA 13-518 and 13-2106). Clerk kept a fund ledger Clerk kept the required fund encumbrance records (KSA 10-1117). Clerk kept an account of unencumbered budget balances by fund by required (KSA 79-2934). Funds disbursed as provided by law (KSA 12- 105a, 105b and 10-801 et seq.). Joint custody receipts pledging to secure deposits properly filed (KSA 9-1405). Distinction made in the accounting for restricted funds (HAG-8). Definition of acronyms used above: SAS ( 1 ) KSA HAG (1 ) statement of Auditing Standards Kansas Statutes Annotated Hospital Audit Guide (1) AICPA publication '17 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes