Audit-1988
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
ANNUAL REPORT
December 31, 1988
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
Page
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CLUBINE AND RETTELE, CHARTERED
SALINA, KANSAS
To: The Board of Directors
Firefighter's Relief Association of Salina
We have examined the balance sheet of the Firefighter's Relief Association of
Salina, as of December 31, 1988 and 1987, and the related statements of
revenues and expenditures, and changes in fund balance, for the years then
ended.
Our examination was made in accordance with generally accepted auditing
standards and accordingly, included such tests of the accounting records and
such other auditing procedures that we considered necessary in the circum-
stances.
In our opinion, the financial statements present fairly, the financial
position of the Firefighter's Relief Association of Salina as of December 31,
1988 and 1987, and the results of its operations and changes in financial
position, for the years then ended, in conformity with generally accepted
accounting principles applied on a basis consistent with that of the preceding
years.
Respectfully submitted,
~~bd!~
April 21, 1989
(1)
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
Cash in bank
Certificates of deposit
Prepaid life insurance
Receivable - Trust Fund
Exhibit I
BA LANCE SHEET
December 31,
1988 1987
ASSETS
$ 149,559 $ 73,716
100,000 130,000
33,613
1,030
$ 249,559 $ 238,359
Total Assets
LIABILITIES
Benefits payable
$
976 $
FUND BALANCE
Fund Balance
248,583 238,359
Total Liabilities and Fund Balance
$ 249,559 $ 238,359
See accompanying notes which are an integral part of the financial statements.
(2)
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
Exhibi t II
STATEMENT OF REVENUES AND EXPENDITURES
For the Year Ended
December 31,
1988 1987
Revenues
Kansas Commissioner of Insurance $ 63,497 $ 66,439
Interest 13,473 11,468
Benefits received 40,380 30,429
Life insurance proceeds - Note 2 1,492
Total Revenues 118,842 108,336
Expenditures
Medical payments to injured firemen 31,897 23,424
Life and disability insurance premiums 67,603 67,197
Insurance benefits paid out 8,482 8,957
Legal and accounting 465 450
Treasurer's bond 100
Other 171 41
Total Expenditures 108,618 100,169
Revenues Over Expenditures $ 10,224 $ 8,167
See accompanying 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,
1988 1987
$ 238,359 $ 228,240
Adjustment to fund balance
1,952
Revenues Over Expenditures
10,224 8,167
Fund Balance, ending
$ 248,583 $ 238,359
See accompanying notes which are an integral part of the financial statements.
(4)
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1988
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 which 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 two firemen. All
premiums had been paid by the Relief Association.
3. The Firefighter's Relief Association of Salina has $ 100,000 which is
invested in Certificates of Deposit. Also, $ 148,991 is in a money market
account. Under the Federal Deposit Insurance Coverage Act, interest
bearing accounts are only covered up to $ 100,000. Thus, only $ 100,000
would be covered by insurance at December 31, 1988. This situation was
corrected at March 31, 1989 by pledging securities to a total of
$ 300,000.
(5)
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FIREFIGHTER'S RELIEF ASSOCIATION OF SALINA
Salina, Kansas
INVESTMENTS
December 31, 1988
Certificate of Deposit
Certificate of Deposit
Maturity
Date
2-14-89
1-15-89
Total
Number
103-80544
106-79002
Rate
6.75
7.00
Schedule 1
Amount
$ 40,000
60,000
$ 100,000
See accompanying 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, 1988
Balance
F.D.I.C. Bank Unsecured
First National Bank & Trust Co. Coverage Balance By Bank
Demand Deposits $ 568 $ 568 $
Investments 100,000 248,991 148,991
Total $ 100,568 $ 249,559 $ 148,991
See accompanying 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, 1988
Date
Effective
Treasurer, Firefighter's Relief
Association of Salina
9-10-86
Date of
Expiration
9-10-89
Schedule 3
Amount
$ 10,000
(8)
See accompanying notes which are an integral part of the financial statements.