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Audit - 1992/1993 I I I I I I I I I I I I I !I I I I I I I SALINA AREA CHAMBER OF a:MMERCE , INC. Sal ina , Kansas STATEMENI'S OF REVENUES AND AI..IaVABI.E EXPENSES UNDER AGREEMENI' WITH '!HE CITY OF SALINA, SALINE OXJNI'Y AND '!HE SALINA AIRroRI' AUl'HORITY 'ID PROVIDE ECDNcro:C DEVEIDIMENT AND CDNVENTION AND VISI'IDR SERVICES AND INDEPENDENT AIJDI'IDR' S REroRI' December 31, 1993 and 1992 HARRISON AND ARNEIT, ŒIARI'ERED CERI'IFIED RJBLIC ACCDUNI'ANl'S SALINA, KANSAS I I I I I I I I I I I I I I I , I I , I I I I I I I SALINA AREA CHAMBER OF CDMMERCE, INC. Sal ina , Kansas INDEX INDEPENDENT AIJDI'IDR' S REroRI' STATEMENI'S OF REVENUE AND ALlOWABLE EXPENSES UNDER AGREEMENT WITH '!HE CITY OF SALINA, SALINE OXJNI'Y AND '!HE SALINA AIRroRI' AUIHORITY 'ID PROVIDE ECDNCMIC DEVEIDFMENT SERVICES STATEMENI'S OF REVENUE AND AI..IaVABI.E EXPENSES UNDER AGREEMENT WITH '!HE CITY OF SALINA 'ID PROVIDE CDNVENTION AND VISI'IDR SERVICES NarES 'ID FINANCIAL STATEMENI'S Paqe 1 2-4 5-7 8-9 I I I I I I I I I I I I , I I I I I I I HARRISON & ARNETT CHARTERED CERTIFIED PUBLIC ACCOUNTANTS EUGENE O. HARRISON, C.P.A. THOMAS G. ARNETT, C.P.A. 719 EAST CRAWFORD. SALINA, KANSAS 67401 PHONE: (913) 827.7244 FAX: (913) 827.0048 INDEPENDENT AIJDI'IDR' S REFDRI' '!he Board of Directors '!he Salina Area Chamber of Conunerce, Inc. We have audited the accampanying statements of revenues and allowable expenses of the Salina Area C1amber of Conunerce, Inc. (a nonprofit organi- zation) for the years ended December 31, 1993 and 1992, pursuant to an agreement :relating to Economic Development savices between the Chamber and the city of Salina, Saline County and the Salina AiJ:port Authority, and pursuant to an agreement relating to CoIWention and Visitor savices between the 01amber and the City of Salina. '!hese statements are the responsibility of the Chamber's management. OUr responsibility is to express an opinion on these statements based on our audit. To: We corrlucted our audit in accordance with generally accepted auditing standards . '!hose standards require that we plan and perfo:rm the audit to obtain reasonable assurance about whether the statement of revenues and allowable expenses are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the am:>UIrt:s and dis- closures in the statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well aseva1uating the overall presentation of the statement of revenues and allowable expenses. We believe that our audit provides a reasonable basis for our opinion. '!he accompanying statements were prepared for the purpose of complying with the provisions of agreenents described in Note 2. and 3. and is not interrled to be a complete presentation of the 01amber' s revenues and expenses . In our opinion, the accampanying statement of revenues and allowable expenses presents fairly, in all material respects, the revenues and allowable expenses of the Chamber for the years ended December 31, 1993 and 1992, pursuant to the agreements referred to in Note 2. and 3. in accordance with generally accepted accounting principles. '!his report is inteIrled solely for the infonnation and use of the board of trustees and management of the 01amber and the City of Salina, Saline County and the Salina Airport Authority and should not be used for any other purpose . 7~r6 ~ sal ina , Kansas March 2, 1994 MEMBERS OF DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Year Ended December 31 , 1993 1992 I I I I I I I I I I II ! I I I I I I I I SALINA AREA CHAMBER OF a:MMERCE , INC. Sal ina , Kansas STATEMENI'S OF REVENUE AND ALlOWABLE EXPENSES UNDER AGREEMENT WI'IH '!HE CITY OF SALINA , SALINE CDUNI'Y AND '!HE SALINA AIRroRI' AUlliORITY 'ID PROVIDE ECDNCMIC DEVEIDFMENT SERVICES REVENUE City of Salina Sal ine COunty Salina Airport Authority 'IDI'AL REVENUE $ 85,000 15,000 20.000 120.000 EXPENSES Program expenses ( Schedule 1A.) 69 , 4 3 7 Administrative and general expenses (Schedule 2A.) 15,632 Staff expenses (Schedule 3A.) 111,339 Building operation expenses (Schedule 4A.) 14.071 'IDI'AL EXPENSES 210.479 EXCESS OF EXPENSE OVER REVENUE $(90,479) See accompanying notes which are an integral part of the financial statements (2) $ 85,000 15,000 20.000 120.000 31,991 14,046 105,555 15.659 167.251 $(47,251) I I I I I I I I I I I I I I I I I I I I SALINA AREA CHAMBER OF crM1ERCE , INC. Sal ina , Kansas STATEMENI'S OF REVENUE AND AI..IaVABI.E EXPENSES UNDER AGREEMENT WI'IH '!HE CITY OF SALINA , SALINE CDUNI'Y AND '!HE SALINA AIRroRI' AUIHORITY 'ID PROVIDE EmNcro:C DEVEIDFMENT SERVICES SCHEI:UI.ES SCHEI:UI.E lA. ~ EXPENSES New in:ìu$try development New in:ìu$try advertising Existing irrlustry development Prospect development Existing irrlustry Progress luncheon seminars Allies day Made in Salina day Economic outlook conference Medical <:lirectory Health care guide Salina package Miscellaneous 'IDI'AL PROGRAM EXPENSES SCHEI:UI.E 2A. AI:MINISI'RATIVE AND GENERAL EXPENSES Ißgal and accounting Automobile expense Office 5\i1PPlies Postage Telephone D..1es and subscriptions Insurance Miscellaneous 'IDI'AL AI:mINISI'RATIVE AND GENERAL EXPENSES Year Ended December 31 , 1993 1992 $ 10,534 $ 5,301 12,816 5,930 422 1,370 5,770 2,742 466 3,141 17,934 6,687 1,249 1,982 3,343 581 524 4,763 3,653 1,392 1,182 6,978 2,620 48 $ 69,437 $ 31,991 $ 1,340 4,912 2,667 1,526 1,465 2,553 809 360 $ 1,225 4,764 2,154 1,329 1,399 1,770 1,128 277 $ 15,632 $ 14,046 See accompanying notes which are an integral part of the financial statements (3) Year Ended December 31 , 1993 1992 I I I I I I I I I I I I I I I ¡ , il I I :1 I SALINA AREA ŒJAMBER OF a:MMERCE , lliC . Sal ina , Kansas STA'I'EMENI'S OF REVENUE AND ALlOWABLE EXPENSES UNDER AGREEMENT WI'IH '!HE CITY OF SALINA , SALINE CDUNI'Y AND '!HE SALINA AIRroRI' AIJIHORITY 'IO PROVIDE ECX>NC'MI C DEVEID FMENT SERVICES SCHEI:UI.ES SCHEI:UI.E 3A. STAFF EXPENSES Salaries Payroll taxes Ercployee insurance Retirement Cafeteria plan Professional development Contract labor $ 82,527 6,802 9,985 5,112 204 5,993 716 'IDI'AL STAFF EXPENSES $111,339 SCHEI:UI.E 4A. RJIIDING OPERATION EXPENSES Property insurance Utilities Taxes Equipment maintenance Maintenance and janitorial Depreciation Refuse Facilities maintenance Equipment $ 282 1,494 1,996 1,701 1,575 6,943 80 'IDI'AL BUIIDlliG OPERATION EXPENSES $ 14,071 See accompanying notes which are an integral part of the financial statements (4) $ 80,194 6,480 9,398 5,253 342 3,771 117 $105,555 $ 15,550 109 $ 15,659 I I I I I I I I I I I I I ¡I I I I I II I SALINA AREA CHAMBER OF <DMMERCE, INC. Sal ina , Kansas STATEMENTS OF REVENUE AND ALI.CMABI.E EXPENSES UNDER AGRE»ŒNT WI'IH '!HE CITY OF SALINA 'ID PROVIDE mNVENTION AND VISI'IDR SERVICES Year Ending December 31 , 1993 1992 REVENUE City of Salina $286.200 $280.038 EXPENSES Program expenses (Schedule lB.) Administrative and general expenses (Schedule 2B.) Staff expenses (Schedule 3B.) Building operation expenses (Schedule 4B.) 'IDI'AL EXPENSES 139,223 136,831 27,054 29,394 144,820 136,171 18.240 19.859 329.337 322.255 $ (43, 137) $(42,217) EXCFSS OF EXPENSE OVER REVENUE See accompanying notes which are an integral part of the financial statements (5) Year Ending December 31, 1993 1992 $ 11,367 $ 13,170 3,842 8,411 5,416 2,168 15,585 12,446 5,443 7,210 1,473 564 946 691 5,665 6,975 2,918 64 4,451 2,945 55,338 61,360 3,410 3,541 8,540 10,336 9,050 9,000 1,594 1,397 64 674 $139,223 $136,831 I I I I I I I I I I I I I I I I I I ¡ I I SALINA AREA CHAMBER OF CDMMERCE, INC. Sal ina , Kansas STATEMEN'IS OF REVENUE AND ALI.DWABIE EXPENSES UNDER AGREEMENT WITH '!HE CITY OF SALINA 'ID PROVIDE mNVENTION AND VISI'IDR SERVICES SCHEI:UI.ES SCHEI:UI.E lB. mNVENTION AND VISI'IDR PR.CGRAM EXPENSES Signage Advertising CoIWention marketing Services Tourism marketing 1-70 Association T. LA.K. National Tourism Association Salina package Tour planning guide Sports and special events Big 8 women's toUI:nament 4-A basketball Sports Car Club of America Smoky Hill River Festival Calendar of events Miscellaneous 'IDI'AL CDNVENTION AND VISI'IDR PROGRAM EXPENSES SCHEI:UI.E 2B. CDNVENTION AND VISI'IDR AI:MINIsmATION AND GENERAL EXPENSES Ißgal and accounting Automob il e expense Office supplies Postage Printing Telephone I:Ues and subscriptions Insurance Miscellaneous $ 1,576 7,481 4,376 4,275 3,131 4,080 1,728 407 'IDI'AL mNVENTION AND VISI'IDR AI:MINISTRATION AND GENERAL EXPENSES $ 27,054 See accompanying notes which are an integral part of the financial statements (6) $ 1,434 11,277 3,490 3,890 62 2,708 4,134 1,996 403 $ 29,394 Year Ending December 31 , 1993 1992 I I I I I I I I I I I I I I II ! ! I I I : I I SALINA AREA aIAMBER OF <::a-1MERCE, INC. Sal ina , Kansas STATEMENTS OF REVENUE AND ALI.DWABIE EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA 'ID PROVIDE mNVENTION AND VISI'IDR SERVICES SCHEI:UI.ES SæEIUIE 3B. CDNVENTION AND VISI'IDR STAFF EXli'ENSES Salaries Payroll tax Errployee insurance Retirement Cafeteria plan Professional development Contract labor $107,762 8,803 16,345 6,562 212 4,356 780 'IDI'AL CDNVEN'!'ION AND VISI'IDR STAFF EXPENSES $144,820 SCHEI:UI.E 4B. CDNVENTION AND VISI'IDR ElJIIDING OPERATION EXPENSES Property insurance utilities Taxes Equipment maintenance Maintenance and janitorial Depreciation Refuse Facilities maintenance Equipment $ 365 1,937 2,587 2,205 2,042 9,000 104 'IDI'AL CDNVENTION AND VISI'IDR ElJIIDING OPERATION EXPENSES $ 18,240 See accompanying notes which are an integral part of the financial statements (7) $101,490 9,008 16,104 4,900 342 3,931 396 $136,171 $ 19,600 259 $ 19,859 I I I I I I I I I I I I I I I II I I II I NOI'E 1. NOI'E 2. NOI'E 3. SALINA AREA ŒIAMBER OF a:MMERCE, mc. Sal ina , Kansas NOI'ES 'ID FINANCIAL STATEMENTS December 31, 1993 and 1992 SUMMARY OF SIGNIFICANT ACOJUNl'ING roLICIES: Accountinq Method '!he books of the Salina Area C11arnber of Carmnerce, Inc. are maintained on and these statements are prepared on the accrual method of accounting. Under this method revenue is recognized when earned and expenses are recognized when incurred. Property and Equipment Depreciation Property and equipment are carried at cost. Depreciation of property and equipment is provided using the straight-line method at rates based on the following useful lives: Building Furniture and Fixtures Parking lot I.arnscaping Years 35 5-10 8 8-20 cx)NI'RIBlJTIONS REIATING 'ID EmNcro:c DEVEIDIMENT: '!he Chamber receives contributions from the City of Salina, Saline County and the Salina Airport Authority (Grantors) to help fund a program, the purpose of which is to encourage economic development in the salina/Saline County area. '!he agreement provides that the C11arnber will expend funds received on programs and savices that the parties to this agreement be- lieve will enhance economic development within the area. Grentors are under no obligation to fund the excess of expense over revenue, such excess being the 01amber' s contribution to the program. AGREEMENT REIATING 'ID mNVENTION AND VISI'IDR: '!he Chamber has entered into an agreement with the City of Salina to provide coIWention and visitor programs to encourage, pram:Jte and solicit coIWentions and tourism for the City of Salina and the City has appointed a CoIWention and Tourism Advisory Committee to reconunend to the 01amber programs in connection with this agreement. Umer this agreement the City contributes to the C11arnber quarterly sixty percent of the proceeds of the local transient guest tax levied on hotel and motel guests. '!he City is under no obligation to fund the excess of expense over revenue, such excess being the C1arnber' s contribution to the program . (continued) (8) I I I I I I I I I I I I I I I ,I ! I I I NOl'E 4. ( continued) aJANGE IN FORM AND DEI'AIL OF PRESENTATION: '!he fo:rm of the financial statements in this presentation differ from the fo:rm presented in previous years. '!his new fo:rm has been adopted by the 01amber in order to be consistent with the form of financial statements of the 01amber as a whole. (9)