Audit - 1972
SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
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REPORT ON EXA}IINATION
December 31, 1972
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
. :
REPORT ON EXAMINATION
December 31, 1972
KENNEDY AND COE
Certified Public Accountants
Salina - Kansas
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
GOVERNING BOARD
Year Ended December 3l, 1972
MEMBERS
Mr. Lauren Gray
Mr. Melvin Thelander
Mr. Frank Yost
Mrs. Norma Cooper
(2)
(3)
(4)
OFFICERS
Mr. Frank Yost
Mr. Jack Weisgerber
Mr. Melvin Thelander
Mr. R. Bruce Johnson
Representatives From:
(l) Board of County Commissioners
(2) Board of Commissioners of The City of Salina, Kansas
(3) Governing Board of Salina Unified School District #305
(4) Member at Large
Mr. Jack Weisgerber
Mr. Kenneth Ryan
Mr. R. Bruce Johnson
Chairman
Vice-Chairman
Secretary
Treasurer
Exhibit A
Exhibit B
. Exhibit C
Exhibit D
Exhibit E
Exhibit F
Schedule 1
S chedu le 2
Schedule 3
SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
INDEX
ACCOUNTANTS' OPINION
SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES
AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES
STATEMENT OF RECEIPTS, DISBURSEMENTS, AND BALANCES OF
CASH, COMPOSITION OF ENDING CASH BALANCES
INSURANCE AND FIDELITY BONDS IN FORCE
COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY
INVESTMENTS
AUDIT ADJUSTMENTS
Statement of Receipts
Statement of Expenditures - General Operating Fund
Statement of Expenditures - Building Fund
ACCOUNTANTS' COMMENTS
Page
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3
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11- 14
Index
KENNEDY AND CaE
MEMBERS
CERTIFIED PUBLIC ACCOUNTANTS
OF'
CERTIF'IEC
OF'F'ICES IN KANSAS
SALI NA
CONCORDIA
GREAT BEND
COLBY
GOODLAND
WICHITA
OF'
AMERICAN INSTITUTE
PU"LIC ACCOUNTANTS
To the Board of Directors
Saline County-City Building Authority:
We have examined the financial statements of the Saline County-City Building Author-
ity, Salina, Kansas, showing the cash position as of December 3l, 1972, and the
financial transactions for the year then ended. Our examination was performed in
accordance with the provisions of the Minimum Standard Audit Program approved by
the State Municipal Accounting Board, and accordingly included the required audit-
'ing procedures and such other auditing procedures as we considered necessary in the
circumstances.
In our opinion, the accompanying statements present fairly the cash position of the
Saline County-City Building Authority, Salina, Kansas, as of December 3l, 1972, and
its financial transactions for the year 1972.
Respectfully submitted,
Salina, Kansas
January l2, 1973
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By ¿7./
Certified Public Ac untant in
charge of and actively engaged
on this audit.
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
Exhibit A
SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND
BALANCES AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES
Year Ended December 3l, 1972
General
Operating
Fund
Building
Fund
Unencumbered Balance Beginning of Year
Receipts - Schedule 1
Total Receipts and Beginning Balance
$ l,743
112,9l8
114,66l
$ 348
1,007
1,355
Expenditures
General Operating Fund - Schedule 2
Building Fund - Schedule 3
Totals
110,460
150
4.201 1.205
9,054 1,205
20,000
9,054 2l,205
4,853 20,000
$ 4,20l $ 1. 205
Unencumbered Balance End of Year
Represented By:
Cash in bank
Certificate of deposit
Total Cash
Deduct unpaid encumbrances
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SALINE COUNTY-CITY BUILDING AUTHÒRITY
Salina, Kansas
Exhibit B
STATEMENT OF RECEIPTS, DISBURSEMENTS, AND
BALANCES OF CASH, COMPOSITION OF ENDING CASH BALANCES
Year 1972
Cash Balance Beginning of Year
Cash receipts
Cash disbursements
General
Operating Building
Fund Fund
$ 5,180 $20,348
112,918 1,007
(l09 , 044) (150)
9.054 21. 205
Cash Balance End of Year
Available Cash
Cash in Bank
Planters State Bank, Salina, Kansas
Certificate of deposit
9,054
1,205
20,000
Total Available Cash
$
9.054
$21. 205
SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
Exhibit C
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INSURANCE AND FIDELITY BONDS IN FORCE
December 31, 1972
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Property
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Coverage
Amount
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All property located at
216-300 West Ash, Salina
Fire, lightning, extended coverage,
vandalism, and malicious mischief
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Workmen's compensation
Public liability
$1,914,000
Saline County-City
Building Authority
employees
Statutory
lOO,OOO
1961 Chevrolet pickup
Liability
Bodily injury - Per person
Aggregate
..
Property damage
Medical payments
Uninsured motorists - Per person
Aggregate
50,000
150,000
25,000
l,OOO
10,000
20,000
5,000
Fidelity Bond
Treasurer
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SALINE COUNTY-CITY BUILDING AVTHORITY
Salina, Kansas
Exhibit D
COMPARISON OF GROSS CASH BALANCES WITH
DEPOSITORY SECURITY
December 31, 1972
1
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Planters State
Bank and
Trus t Company,
Salina, Kansas
Gross Cash Balances
Cash in bank - General Operating Fund
- Building Fund
Certificate of deposit - Building Fund
Deduct F.D.I.C. coverage
$14,230
1,205
20.000
35,435
20,000
Balance Securable by Collateral
15,435
Security Required (70%)
lO.805
Security Provided by Banks
City of Abilene, General Obligation Bonds
$25.000
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
Exhibit E
INVESTMENTS
December 3l, 1972
There were no investments at December 31, 1972, other than the certificate of
deposit classified as cash.
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
AUDIT ADJUSTMENTS
December 31, 1972
GENERAL OPERATING FUND
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- Outstanding encumbrances - General Fund
Payroll taxes
State withholding taxes
Retirement fund
Utilities
Repairs and maintenance
Miscellaneous expense
To reverse outstanding encumbrances at December 31,
1971, which were paid in 1972
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Repairs and maintenance
Janitor supplies
Utilities
Outstanding encumbrances
To record outstanding encumbrances
1972, for the General Fund
at December 31,
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Janitor supplies
Equipment
Repairs and ~intenance
To reclassify various accounts into more
classifications at December 3l, 1972
descriptive
Debit
$3,437.03
3,164.66
35.83
l,652.75
76.20
816.80
Exhibit F
Credit
$l, 116 .75
114.85
637.99
1,491. 77
50.53
25.14
4,853.24
893.00
SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
STATEMENT OF RECEIPTS
Year 1972
Appropriations from Municipalities
Regular appropriations
Saline County
Saline County Treasurer
Saline County Welfare
Snack bar rental
City of Salina
Salina Unified School District #305
Total Regular Appropriations
Maintenance Charges
Salina Public Library
Saline County
City of Salina
Total Maintenance Charges
Total Appropriations
from Municipalities
Other Receipts
Space rental - State of Kansas
W.I.N. trainee reimbursement - State of Kansas
Miscellaneous receipts
Interest
Total Other Receipts
Total Receipts
$54,540
9,860
1. 936
General
Operating
Fund
$ 66,336
23,000
l4,300
103.636
2,475
450
600
3,525
107.161
4,800
832
l25
5.757
$112.918
Schedule 1
Building
Fund
$
1.007
1,007
$1.007
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
Schedule 2
STATEMENT OF EXPENDITURES - GENERAL OPERATING FUND
Year 1972
(With comparative figures for the preceding year)
Total General Operating Fund Expenditures
1972 1971
$ 50,331 $45,201
29,220 29,069
3,860 3,626
l2,656 lO, 242
l,492 2,239
2,383 2,500
720 959
4,000
2,602 2,324
3,131 2,l57
65 364
$110,460 $98.68l
Salaries and wages
U,Ulities
Janitor supplies
Repairs and maintenance
Equipment
Insurance
Legal and auditing
Payment on fountain sculpture
Payroll taxes
Employees' group insurance and retirement
Mis ce llaneous
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LY-CITY BUILDING AUTHORITY
Salina, Kansas
s"
. EXPENDITURES - BUILDING FUND
Year 1972
e figures for the preceding year)
(Wi th
1972
ine County-City Buil,
ite Development ConSè
General
culpture for fou'ntai!
,ccounting and audi tiT,
t Costs
sts
$
n
150
Total Building Fund
res
ll5Q
Schedule 3
1971
$ 530
20,000
566
$2l,096
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
ACCOUNTANTS' COMMENTS
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
HISTORY
The Saline County-City Building Authority was formed on March 22, 1965, under the
Authority of the Interlocal Cooperation Act of Kansas (K.S.A. l2-290l to l2-2907).
According to the creating instrument, the authority is a joint venture organized
by the 3 participating municipalities for the purpose of acquisition of land and
construction thereon of a building (including parking areas and related improve-
ments) to house and accommodate the county, city, and school district administrative
offices, the county and city courts, and such other offices as may be expedient; to
equip such building; and to operate and maintain the building and grounds so acquired.
The authority does not have tax levying powers, but derives its funds from the fol-
lowing municipalities which comprise the participating agencies of the authority.
Name of
Participating Agency
Number of
Directors on
Authority Board
Saline County
City of Salina
Salina Unified School District #305
Total
3
2
1
g
The Board of Directors of the authority is composed of 7 members, 6 of which are
appointed from the governing boards of the.participating municipalities in the
ratio listed above, and 1 of which is selected at large by the 6 members.
DEPOSITORY SECURITY
The bank had sufficient security pledged during the year to meet the statutory
requirements of K.S.A. 9-1402, with the exception of the period January 1 to
January 28, 1972, when only F.D.I.C. coverage was applicable. Additional security
was pledged by the bank on January 29, 1972.
The securities pledged by the depository are held in escrow under a joint custody
receipt, and comply with statutory requirements as to type.
RECEIPTS
Receipts, as shown by Schedule l, consist of regular appropriations from partici-
pating agencies to cover net operating costs of the building and other special
payments. The appropriations for net operating costs are to be borne by the
participating agencies in the ratio of the floor space occupied by each agency to
the total floor space so occupied as follows:
Total
64%
23%
13;0
100%
Saline County
City of Salina
Salina Unified School District #305
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The schedule shown below summarizes the regular appropriations paid by the parti-
cipating municipalities to the General Operating Fund during 1972 and the position
'of each agency as to the correct payment ratio at December 31, 1972.
Total cash received in 1972
on regular payments
Payments made in 1971 appli-
cable to 1972 appropriations
Snack Bar Receipts
December 1972 receipt,
applied to 1973
December 1971 receipt,
applicable to 1972
Total Adjusted Payments
Payments required according
to agreed ratios
Amount of overpayment on
regular payments
Cumulative underpayment on
proportionate share of
building maintenance
Saline City of Salina U.S.D.
County Salina 4/:305 Total
$66,336 $23,000 $14,300 $103,636
2,809 4,600 7,409
(150) (150)
182 182
69,177 27,600 14,300 ll1, 077
64,000 23.000 13,000 100.000
5,l77 4,600 l,300 11,077
( 450) (300) (750)
~ 4.727 ~ 4.30Q $ 1. 300 $ 10.327
Net Overpayment
The Building Authority entered into an agreement with the Saline County Commissioners
whereby Saline County financed the purchase of snack bar equipment. The purchase
price is to be repaid with snack bar rental income, including interest at 5 percent
per annum. A summary of transactions and balances under this contract is as follows:
Unpaid Balance December 31, 1971 $9,399
Payments in 1972 $1,936
Less interest at 5% 432 1 , 504
Unpaid Balance December 31, 1972 $7.895
EXPENDITURES
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Schedules 2 and 3 summarize the expenditures of the General Operating Fund and
Building Fund respectively.
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The General Operating Fund paid $4,000 on a contract for sculpture work previously
encumbered by the Building Fund. This payment should be reimbursed.
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We noted expenditures during the period which appeared to be in violation of statu-
tory provisions. They were as follows:
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1.
K.S.A. l2-l0Sb requires the approval of the officer or officers charged by
law to approve claims prior to payment thereof. Although payments were
supported by itemized statements, several of the statements were not approved
by the proper officer during 1972.
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2.
Adequate records were not kept of funds encumbered and we could not determine
if any violations of the Cash Basis Law, K.S.A. 10-ll12 occurred.
INSURANCE AND FIDELITY BOND COVERAGE
Exhibit C shows the details relating to insurance and fidelity bond coverage.
Fidelity bonds were approved by the governing board.
MINUTES OF BOARD MEETINGS
The Minutes of the Board Meetings were examined for matters pertaining to the audit.
Regular meetings were held monthly.
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We noted that the minutes for the month of July were not signed by the Chairman or
Secretary; however, the minutes were subsequently approved in the minutes for the
month of August. All other months were properly approved and signed.
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REQUIRED STATEMENTS
References
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Comparison of Cash Balances with Encumbrances
Exhibit A
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Classified Statement of Receipts, Disbursements, and
Balances of Cash and Composition of Ending Cash Balance
Exhibit B
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Comparison of Depository Security and Balances on Deposit
Exhibit D
Schedule of Investments
Exhibit E
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Summary of Insurance Coverage
Exhibit C
Schedule of Fidelity Bonds of Officers
Exhibit C
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