Audit-1989
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
ANNUAL REPORT
December 31, 1989
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALINA, KANSAS
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
I N D E X
ACCOUNTANT'S OPINION
BALANCE SHEET - Exhibit I
STATEMENT OF REVENUES AND EXPENDITURES - Exhibit II
STATEMENT OF CHANGES IN FUND BALANCE - Exhibit III
NOTES TO FINANCIAL STATEMENT
INVESTMENTS - Schedule 1
COMPARISON OF DEPOSITORY SECURITY WITH BALANCES
ON DEPOSIT - Schedule 2
TREASURER'S FIDELITY BOND - Schedule 3
Paqe
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CLUBINE AND RETTELE, CHARTERED
SALINA, KANSAS
INDEPENDENT AUDITOR'S 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, 1989 and 1988, and the related statements of revenues and expen-
ditures 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, 1989 and 1988, and the results of its operations, for
the years then ended, in conformity with generally accepted accounting
principles.
CLUBINE AND RETTELE, CHARTERED
cMe~~~
May 31, 1990
( 1 )
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
Exhibit I
BALANCE SHEET
December 31,
1989 1988
ASSETS
Cash in bank
Certificate of deposit
Cash surrender value of life insurance (Note 4)
$ 51,141
90,000
236,413
$ 149,559
100,000
122,800
Total Assets
$ 377,554 $ 372,359
LIABILITIES
Benefits payable
s
s
976
FUND BALANCE
Fund Balance
S 377,554 S 371,383
Total Liabilities and Fund Balance
S 377,554 $ 372,359
See notes which are an integral part of the financial statements.
( 2 )
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
STATEMENT OF REVENUES AND EXPENDITURES
Exhibit II
For the Year Ended
December 31,
1989 1988
Revenues
Kansas Commissioner of Insurance
Interest
Benefits received
Life insurance proceeds - Note 2
S 57,887 S
11,067
46,993
5,847
Total Revenues
121,794
Expenditures
Medical payments to injured firemen
Life and disability insurance premiums
Insurance benefits paid out
Legal and accounting
Treasurer's bond
Other
37,407
64,190
13,421
505
100
Total Expenditures
115,623
6,171 S 10,224
Excess of Revenues Over Expenditures
s
63,497
13,473
40,380
1, 492
118,842
31,897
67,603
8,482
465
171
108,618
See notes which are an integral part of the financial statements.
( 3 )
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
Exhibit III
STATEMENT OF CHANGES IN FUND BALANCE
Fund Balance, beginning
For the Year Ended
December 31,
1989 1988
S 371,383 S 238,359
Prior period adjustment - Note 5
122,800
Excess of Revenues Over Expenditures
6,171 10,224
Fund Balance, ending
S 377,554 S 371,383
See notes which are an integral part of the financial statements.
( 4 )
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II
FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1989
1. A summary of significant accounting policies is as follows:
A. 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.
B. 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 not normally recorded.
3. Interest on long-term debt which is normally an
expenditure when due and paid.
C. Investments are stated at cost.
D. The Firefighter's Relief Association of Salina has no
fixed assets.
2. The proceeds from life insurance are the cash surrender value
received by the Relief Association on two policies carried on
firemen. All premiums had been paid by the Relief Association.
3. The Firefighter's Relief Association of Salina has $ 90,000 which
is invested in Certificates of Deposit and $ 49,166 in a money
market account. Since under the Federal Deposit Insurance
Coverage Act, interest bearing accounts are only covered up to
$ 100,000, the bank has pledged securities of $ 300,000 to the
Association.
4. 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,
1989.
5. The prior period adjustment reflects the cash surrender value of
the life insurance policies in previous years. The cash surrender
value has not previously been reflected on the financial state-
ments.
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
INVESTMENTS
December 31, 1989
Certificate of Deposit
Certificate of Deposit
Maturity
Date
6-16-90
6-12-90
Total
Number
103-80544
106-79002
Rate
8.65
8.80
Schedule 1
Amount
S 30,000
60.000
S 90,000
See notes which are an integral part of the financial statements.
( 6 )
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
Schedule 2
COMPARISON OF DEPOSITORY SECURITY WITH BALANCES ON DEPOSIT
December 31, 1989
Balance
F.D.I.C. Bank Unsecured
First National Bank & Trust Co. Coveraqe Balance By Bank
Demand Deposits $ 1,976 $ 1,976 $
Investments 100,000 139,166
Total (Note 3) 101,976 $ 141,141 S
Pledged Securities by Bank 300,000
Total Coverage $ 401,976
See notes which are an integral part of the financial statements.
( 7 )
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
TREASURER'S FIDELITY BOND
December 31, 1989
Date Date of
Effective Expiration
Treasurer, Firefighter's Relief
Association of Salina
9-10-89
9-10-92
Schedule 3
Amount
$ 10,000
See notes which are an integral part of the financial statements.
(8 )