Audit - 1991
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FILED
'92 JUN 22 Arl 9 38
CITY 0 F SALl NA, KS
CITY CLERK'S OFFICE
SALINA DOWNTOWN, INC.
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31, 1991
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALINA, KANSAS
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SALINA DOWNTOWN, INC.
Salina, Kansas
I N D E X
INDEPENDENT AUDITORS' REPORT
Paqe
1
BALANCE SHEET - Exhibit I
2
STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN CUMULATIVE
EXCESS OF REVENUE OVER EXPENSES - Exhibit II
3-4
NOTES TO FINANCIAL STATEMENTS
5
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CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALINA, KANSAS
INDEPENDENT AUDITORS' REPORT
To: The Board of Directors
Salina Downtown, Inc.
We have audited the accompanying balance sheet of Salina Downtown,
Inc., Salina, Kansas, as of December 31, 1991 and 1990, and the related
statements of revenue and expenses, and changes in cumulative excess of
revenue over expenses, for the years then ended. These financial
statements are the responsibility of the Salina Downtown, Inc. 's
management. Our responsibility is to express an opinion on these
financial statements based on our audits.
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 audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of the Salina
Downtown, Inc. as of December 31, 1991 and 1990, and the results of its
operations for the years then ended, in conformity with generally
accepted accounting principles.
CLUBINE AND RETTELE, CHARTERED
~~~~
May 22, 1992
( 1 )
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Exhibit I
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Unrestricted Restricted
I December 31, December 31,
1991 1990 1991 1990
I $ 39,998 $ 36,334 $ 2,970 $ 2,841
2,346 7,382 2,000
I 42,344 43,716 2,970 4,841
I 3,876 5,813
I $ 46,220 $ 49,529 $ 2,970 $ 4,841
I
I $ 4,458 $ 7,695 $ $
13,565 12,180
500 450
1,132 1,085 20 47
I 71 101
19,726 21,511 20 47
I
13,727 16,389
I 11,695 11,629
25,422 28,018
I 1,948 2,775
2,074 2,019
I 4,022 4,794
25,422 28,018 4,022 4.794
$ 45,148 $ 49,529 $ 4,042 $ 4,841
I
See the accompanying notes which are an integral part
I of the financial statements.
( 2 )
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Undesignated
December 31,
1991 1990
Unrestricted
Designated by
Governing Board
December 31,
1991 1990
$ 125 $
61,751
30,000
19,337
555
2,078
640
125 $
60,368
30,000
12,493
526
2,088
114,486 105,600
41,600
3,929
2,400
471
2,100
1,211
883
2,160
572
300
279
1,100
1,339
98
982
316
3,442
15
1,937
355
335
17,000
82,824
40,113
3,845
2,400
875
2,100
1,092
1,223
2,464
366
300
191
1,200
212
122
494
1,552
20
1,937
326
331
17,000
78,163
- $
66
66
300
300
Exhibit II
Restricted
Farmer's Market Others Designated
Management Fund By Donor
December 31, December 31,
1991 1990 1991 1990
- $
- $
377 1,665
1,000
377
1,054
150
1,204
2,665
1,000
124
1,124
- $
- $
1,788
74
147
74
430
2,365
See the accompanying notes which are an integral
part of the financial statements.
(3 )
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Exhibit II (Cont.)
Unrestricted Restricted
Designated by Farmer's Market Others Designated
Undesignated Governing Board Management Fund By Donor
December 31, December 31, December 31, December 31,
1991 1990 1991 1990 1991 1990 1991 1990
$ 29 $ - $ - $ - $ - $ - $ - $
20
29 20
940 2,228
619 374
240 1,000 947
123 641
1,922 4,243 947
12,071 10,065
4,582 4,864 19 1,947
14,218 4,977
1,105 1,238
397 630
32,373 21,774 19 1,947
117,148 104,200 300 1,204 2,071 19 1,947
(2,662 ) 1,400 66 (300) (827) 594 55 418
16,389 14,989 11,629 11,929 2,775 2,181 2,019 1,601
$ 13,727 $ 16,389 $ 11,695 $ 11,629 $ 1,948 $ 2,775 $ 2,074 $ 2,019
See the accompanying notes which are an integral
part of the financial statements.
( 4 )
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SALINA DOWNTOWN, INC.
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
1. A summary of some of the significant accounting policies of Salina
Downtown, Inc. is as follows:
A. The financial statements have been prepared on the accrual
basis. Salina Downtown, Inc. is exempt from federal and state
income taxes under Internal Revenue Code Section 501(c)(6).
The significant accounting policies are described below to
enhance the usefulness of the financial statements to the
reader.
B. Salina Downtown, Inc. considers accounts receivable to be fully
collectible; accordingly, no allowance for doubtful accounts is
required. If amounts become uncollectible, they will be
charged to operations when that determination is made.
C. Depreciation of furniture, fixtures and equipment is determined
using the straight-line method over the estimated useful life
of each asset.
2. Government appropriations are as follows:
A. Salina Downtown, Inc. has entered into an agreement with the
City of Salina to merge private efforts with city government
efforts toward the development of plans and programs to assure
the vitality and prosperity of Salina's Central Business
District. The agreement provides that the City and Salina
Downtown, Inc. will jointly fund these programs.
Appropriations from the City of Salina for 1991 and 1990 were
$ 30,000 each year, (excluding appropriations for Farmer's
Market Management Fund and the Board designated funds received
from the Business Improvement District No.1).
3. Farmer's Market Management Fund is as follows:
A. Salina Downtown, Inc. has agreed to manage the Farmer's tlarket
in behalf of the Board of Advisors of Business Improvement
District No.1. Government appropriations for this fund
include $ 1,000 from Saline County and $ 1,000 from Salina
Downtown, Inc. for 1990.
4. Functional classification of expenses is as follows:
A. Salina Downtown, Inc. 's expenses are primarily program related
with an insignificant amount of expenses related to
administration and fund raising. Thus, the statement of
functional expenses is not presented.
( 5 )
....
~
CLUBlNE&
RETIELE
CHARfERED
Certified Public Accountants
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
James R. Colahan, C.P.A.
Jon K. Bell, C.P.A.
Linda A. Suelter; C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
913/825-5479
913/827-1188
Ellsworth
913/472-3915
May 22, 1992
Board of Directors
Salina Downtown, Inc.
P.O. Box 1065
Salina, KS' 67402~1065
We have audited the financial statements of Salina
Downtown, Inc. for the year ended December 31, 1991 and
issued our report thereon dated May 22, 1992. In the
course of our audit, we reviewed the system of internal
control of Salina Downtown, Inc. Our purpose was to
determine the extent of testing procedures we would use
during the audit. We did not perform procedures that
would be necessary for us to give an opinion on the
system of internal accounting control taken as a whole.
It is management's responsibility to maintain the system
of internal control to assure themselves that all
transactions are recorded and that the assets of the
organization are safeguarded against any possible loss.
Any system of internal control has certain limitations
that may allow errors or irregularities to occur and not
be detected. Our limited study would not necessarily
reveal all material weaknesses in the system and
therefore, we do not express an opinion on the system of
internal accounting control of Salina Downtown, Inc.
taken as a whole. However, our study and evaluation of
the system disclosed what we believed to be a material
weakness in the internal control as follows.
There exists a lack of segregation of duties between the
accounting and recordkeeping function, and the custody
of assets including the control of recording and
depositing receipts and disbursements of funds. Good
internal control requires that these duties be
segregated in order to insure control over the
safeguarding of the assets. This lack of segregation is
primarily due to the small size of the office staff
which is not unusual in a small organization and
therefore, the cost of correcting this weakness would
probably exceed any benefit which might be realized.
Management should assess the benefits of any such
controls in relation to their cost of implementation.
This weakness did not cause us any problems in the audit
but increased the possibility that errors or
irregularities may go undetected.
We have some additional comments regarding the
organization which came to our attention during the
audit of the Salina Downtown, Inc. financial statements
for the year ended December 31, 1991.
. .
.
Salina Downtown, Inc. (Cont.)
May 22, 1992
Page # 2
The handling of the gift certificates conti~ to be an area of
concern especially in light of the changes in office personnel. The
Board may want to increase control over this area. One possibility
would be for the bookkeeper to provide a monthly reconciliation of the
pre-numbered gift certificates issued to the amount deposited in the
bank. This would help the Board to check that money received for gift
certificates has been deposited and that gift certificates are not
being issued without cash being received.
We feel this area needs to be discussed by the Board and we would be
glad to answer any questions or provide any additional service to help
any way we can. We appreciate the opportunity to provide your audit
services and look forward to working with you in the future.
Sincerely,
a- ~?CJL
ames R. Colahan,
Certified Public Accountant
JRC/ekg