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Audit- 1992 CITY OF SALINA, KANSAS City AUomey GIq A Beopoa (913) sz:4..632S 129 South 8dt P.O. IkK 380 Salina, ICS 67402-0380 June 1, 1993 HAND-DELIVERED Jacqueline B. Shiever City Oerk City of Salina P.O. Box 736 Salina, KS 67402-0736 Re: Audit Report for Firefighters Relief Association of Salina December 31, 1992 Dear Jackie: I hand you the captioned audit report for your files. Very truly yours, ~ Legal Assistant to Greg A Bengtson, City Attorney sg enc. I I I I I I I I I I I I I I I I I I I FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas FINANCIAL STATEMENT AND INDEPENDENT AUDITORS' REPORT December 31, 1992 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 FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas I N D E X INDEPENDENT AUDITORS' REPORT BALANCE SHEET - Exhibit I STATEMENTS OF REVENUE AND EXPENDITURES - Exhibit II STATEMENTS OF CHANGES IN FUND BALANCE - Exhibit III NOTES TO FINANCIAL STATEMENTS INVESTMENTS - Schedule 1 COMPARISON OF DEPOSITORY SECURITY WITH BALANCES ON DEPOSIT - Schedule 2 TREASURER'S FIDELITY BOND - Schedule 3 Page 1 2 3 4 5 6 7 8 I I I I I I I I I I I I I I I I I I I CLUBINE AND RETTELE, CHARTERED SALINA, KANSAS INDEPENDENT AUDITORS' REPORT To: The Board of Directors Firefighter's Relief Association of Salina We were engaged to audit the accompanying balance sheet of Fire- fighter's Relief Association of Salina, Salina, Kansas, as of December 31, 1992 and 1991, and the related statements of revenue and expenditures and changes in fund balance, for the years then ended. These financial statements are the responsibility of Firefighter's Relief Association of Salina's management. 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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. In our opinion, the financial statements referred to in the first paragraph above, present fairly, in all material respects, the financial position of Firefighter's Relief Association of Salina, as of December 31, 1992 and 1991, and the results of its operations, for the years then ended, in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedules 1 - 3 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CLUBINE AND RETTELE, CHARTERED ~'-.SLQv~ ~ May 10, 1993 (1 ) I I I I I I I I I I I I I I I I I I I FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas BALANCE SHEET ASSETS Current Assets Cash in bank $ Certificate of deposit Cash surrender value of life insurance (Note 3) Total Current Assets Property and Equipment Equipment Total Assets FUND BALANCE Fund Balance - Exhibit III Total Liabilities and Fund Balance Exhibit I December 31, 1992 1991 78,779 90,000 343.031 511. 810 1. 393 $ 79,740 90,000 291.675 461.415 $ 513,203 $ 461,415 S 513.203 S 461.415 $ 513,203 $ 461,415 See notes which are an integral part of the financial statements. (2 ) I I I I I I I I I I I I I I I I I I I FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas Exhibit II STATEMENTS OF REVENUE AND EXPENDITURES For the Year Ended December 31, 1992 1991 Revenue Kansas Commissioner of Insurance Interest and dividends Benefits received Other revenue Total Revenue $ 55,319 $ 6,179 825 13,806 76,129 58,183 9,193 5,000 6,504 78,880 Expenditures Medical payments to injured firemen Life and disability insurance premiums Insurance benefits paid out Legal and accounting Reimbursement Fiduciary fees Insurance bond Office supplies Total Expenditures 825 13,026 840 585 8,203 663 100 99 24,341 5,000 18,714 468 575 3,386 449 23 28,615 Excess of Revenues Over Expenditures $ 51,788 $ 50,265 See notes which are an integral part of the financial statements 0 (3 ) I I I I I I I I I I I I I I I I I I I FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas Exhibit III STATEMENTS OF CHANGES IN FUND BALANCE Fund Balance, beginning For the Year Ended December 31, 1992 1991 $ 461,415 $ 411,150 Excess of Revenue Over Expenses 51,788 50,265 Fund Balance, ending $ 513,203 $ 461,415 See notes which are an integral part of the financial statements. (4 ) I I I I I I I I I I I I I I I I I I I FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1992 1. A summary of significant accounting policies is as follows: A. The financial statements have been prepared on the modified accrual basis. Firefighter's Relief Association of Salina, Salina, Kansas is exempt from federal and state income taxes under Internal Revenue Code Section 501(c) (3). The significant accounting policies are described below to enhance the usefulness of the financial statements to the reader. B. The modified accrual basis of accounting is used. The modifications from the accrual basis are as follows: 1. Revenues are recorded as received in cash except for revenues susceptible to accrual and material revenues that are not received at the normal time of receipt. C. Expenditures are recorded on an accrual basis except for as follows: 1. Disbursements for inventory type items which are expensed at the time of purchase. 2. Prepaid expenses are normally recorded as expenses at the time of payment. 3. Interest on long-term debt which is normally an expenditure when due and paid. D. Investments are stated at cost. E. Acquisition of property and equipment - Original acquisition of equipment is recorded at cost. No depreciation has been taken. 2. The Firefighter's Relief Association of Salina has $ 90,000 which is invested in Certificates of Deposit and $ 73,556 in a money market account. Under the Federal Deposit Insurance Coverage Act, interest bearing accounts are only covered up to $ 100,000, therefore, the bank has pledged securities of $ 300,000 to the Association. 3. The cash surrender value of the life insurance policies held by the Association reflects the amount the Association would receive if the life insurance policies were terminated as of December 31, 1992. (5) I I I I I I I I I I I I I I I I I I I FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas Schedule 1 INVESTMENTS December 31, 1992 Maturity Date Type Rate Amount Glendale Federal 10-22-93 C of D 4.20 $ 30,000 Guardian Savings 8-04-93 C of D 4.40 60,000 Total $ 90,000 See notes which are an integral part of the financial statements. (6) I I I I I I I I I I I I I I I I I I I FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas Schedule 2 COMPARISON OF DEPOSITORY SECURITY WITH BALANCES ON DEPOSIT December 31, 1992 Balance F.D.I.C. Bank Unsecured First National Bank & Trust Co. Coverage Balance By Bank Demand Deposits $ 5,223 $ 5,223 $ Investments 100.000 163.556 Total (Note 3) 105,223 $ 168,779 $ Pledged Securities by Bank 300.000 Total Coverage $ 405,223 See notes which are an integral part of the financial statements. (7 ) I I I I I I I I I I I I I I I I I I I FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA Salina, Kansas TREASURER'S FIDELITY BOND December 31, 1992 Treasurer, Firefighter's Relief Association of Salina Date Date of Effective Expiration 9-10-92 9-10-95 Schedule 3 Amount $ 10,000 (8 ) See notes which are an integral part of the financial statements.