Audit - 1991/1992�� �` ►• M ►• is �- • ••: 1 101, IN
@Wj-Ql-b#IM OF BOARD DESIGNATED FUNDS FOR ECONUUC DEVEIOPJ
AND CONVENTION AND TOURISM
AND
INDEPENDENT AUDITIORIS REPORT
December 31, 1992 and 1991
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Page
INDEPENDENT AMIT•' REPORT
•1 1911 9t OF •• •, 1 DEVELOR41ENT REVENUE, RELATED XP 91 9•.
AND :••'/ DESIGNATED FUND •E
SCFMMTIM OF CONVENTION AN1 TOURISM REVENUE, RELATED • 9i1 911. 9 9E.
AND :••'1 DESIGNATED 1 BALANCES
NOTES • FINANCIAL STATEMENTS
HARRISON & ARNUT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
EUGENE 0. HARRISON, C.P.A. 719 EAST CRAWFORD • SALINA, KANSAS 67401 PHONE:(913)827.7244
THOMAS G. ARNETT, C.P.A. FAX: (913) 827.0048
t z 10) 04 y DI IZ 1111) DI • ' • 01' •1'J
To: The Board of Directors
Salina Area Clamber of C.cmmierce, Inc.
We have audited the accanpanying schedules of Econcmic Development and
Convention and Tourism revenue, related expenses, and board designated
fund balances of the Salina Area chamber of C=oerce, Inc., Salina,
Kansas, for the year ended December 31, 1992. These financial statements
are the responsibility of the Chamber's management. Our responsibility is
to express an opinion on these financial statements based on our audits.
The schedules of Economic Development and Convention and Tourism revenue,
related expenses, and board designated fund balances of the Salina Area
Chamber of Cam erce, Inc. for the year ended December 31, 1991 were
audited by other auditors whose report dated February 14, 1992, expressed
an unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement 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.
In our opinion, the financial statements referred to above present
' fairly, in all material respects, the results of cperaticns and the
changes in fund balances for the year ended December 31, 1992 of the
Economic Development and Convention and Tourism Funds of the Salina Area
Chamber of Commerce, Inc., in conformity with generally accepted
'accounting principles.
Salina, Kansas
March 2, 1993
r
(1)
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
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BLANK PAGE
SALM AREA « r r ER OF CU41ERCE,
Salina, Kansas
SCREDUIM OF ECONOMIC DEVELOPMENT REVENUE, RELATED EXPENSES,
See accompanying notes which are an integral part
of the financial statements
(2)
For the Year Ended
December 31,
1992
1991
Revenue
Program activities
$ 10,999
$ 8,478
Allocations for economic development
120,000
125,000
Other revenue
357
558
Total Revenue
131,356
134,036
Expenses
Salaries
80,194
76,778
Payroll taxes
6,480
6,044
Employees' insurance
9,398
6,905
Employees' retirement
5,253
5,265
Employees' cafeteria plan
342
-
Automobile expenses
4,764
5,144
Postage
1,329
1,493
Printing
-
83
Supplies
2,154
3,090
Professional services
1,225
1,134
Telephone
1,399
1,414
Dues and subscriptions
1,770
1,852
Insurance
1,128
1,311
Facilities maintenance
15,550
15,550
Professional development
3,771
4,265
Equipment
109
133
Contract labor
117
834
Miscellaneous
Program expenses
277
1,378
Prospect development
11,230
25,946
Economic development activities
11,567
3,859
Special functions and activities
9,194
10,301
Total Expenses
167,251
172,779
Deficit of Revenue Over Expenses Before
Transfers
(35,895)
(38,743)
Transfer from Administrative
45,000
40,000
Excess of Revenue Over Expenses
9,105
1,257
Board Designated Fund Balances, beginning
of period
18,110
16,853
Adjustment, accrued vacation payable
(3,064)
-
Board Designated Fund Balances, end of period
$ 24,151
$ 18,110
See accompanying notes which are an integral part
of the financial statements
(2)
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SAL,INA AREA CHAM6ER OF CaMMERCE, INC.
Salina, Kansas
For the Year Ended
December 31,
1992 1991
Revenue
Program activities $ 70,673 $ 80,118
Allocations for convention and tourism 280,038 261,228
Other revenue 65 299
Total Revenue
350,776
341,645
Expenses
Salaries
101,490
94,955
Payroll taxes
9,008
8,438
Employees' insurance
16,104
16,194
Employees' reticent
4,900
4,885
Employees' cafeteria plan
342
-
Automobile expenses
11,277
11,344
Postage
3,890
2,986
Printing
62
377
Supplies
3,490
3,897
Professional services
1,434
1,323
Telephone
2,708
2,530
Dues and subscriptions
4,134
4,771
France
1,996
1,813
Facilities maintenance
19,600
19,600
Professional development
3,931
2,297
Equipment
259
500
Contract labor
396
834
Miscellaneous
Program
403
1,971
expenses
Advertising and promotion
21,582
35,791
Special functions and activities
89,203
112,655
Convention marketing
2,168
9,946
Convention services
12,446
19,342
Tourism marketing
11,432
13,147
Total Expenses
322,255
369,596
Excess (Deficit) of Revenue Over Expenses
28,521
(27,951)
Board Designated Fund Balances, beginning
of period
96,294
124,245
Adjustment, accrued vacation payable
(3,303)
-
Board Designated Fund Balances, end of period
$121,512
$ 96,294
See accompanying notes which are an integral part
of the financial statements
(3)
SALIVA AREA aMMBER OFaMMCE, INC.
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1992 and 1991
1. The financial statements of the Salina Area Chamber of Commerce,
Inc., a Kansas corporation with exempt status under Internal
Revenue Code Section 501(c) (6), were audited, and the financial
statements were submitted under separate cover. The Board of
Directors have designated certain funds to establish appropriate
accounting. The Economic Development Fund and the Convention and
Tourism Fund are two such funds. Both funds are programs
administered by the Salina Area Chamber of Commerce, Inc. with
partial funding from public entities. The significant accounting
policies are described below to enhance the usefulness of the
financial statements to the reader:
A. Purchases of supplies that might be considered as inventory
are expensed when purchased. Actual amounts on hand are
considered immaterial as an asset.
B. The basis for allocation of expenses to specific programs is
determined by management. Expenses that can be directly
identified with specific programs are charged to that
program. Other expenses are allocated using predetermined
percentages.
2. Allocations for Economic Development - Payments received for the
economic development program under agreements with the City of
Salina, Saline, County, and the Salina Airport Authority for 1992
and 1991 are summarized as follows:
1992 1991
City of Salina $ 85,000 $ 85,000
Saline County 15,000 20,000
Salina Airport Authority 20,000 20.000
Total $120,000 $125,000
3. Allocations for Convention and Tourism - The Chamber has entered
into an agreement with the City of Salina to operate a program
whose purpose is to encourage, promote and solicit tourism and
conventions for the City of Salina. The agreement provides that
funds will be allocated to the Chamber for budgeted expenditures
incurred in operation of the program from the proceeds of a tax
levied by the City upon hotel and motel transient guests with the
City. Allocations include $280,038 and $261,228 under this
agreement with the City for 1992 and 1991, respectively.
(continued)
(4)
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4. The C1wWm has provided for accrued vacation pay in its financial
statements. A prior year adjustment has been provided for accrued
vacation pay at the beginning of the year for Economic Development
and Convention and Tburism in the amount of $3,064 and 3,303 respec-
tively.
(5)