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Audit - 1971 '~"'. ..."",;,:",:"><,,,"~.~;'n",,"",,=" .",,~....' --...;.,;""""" ..'~.,. '-":;';'~,,",'-".' ....;.",~.........£.--__._~ -.- -.. ... .¡ .. SALINE COUNTY-CITY BUILDING AUTIIDRITY Salin at Kansas ,¡ 1'" I .~ \~ REPORT ON EXAMINATION December 3lt 1971 ... ~, KENNEDY AND CaE CERrrIFIED PUBLIC ACCOUNTANTS .."~.;"7;'O;o,,,>o":'...o " ", ,," ~.., 'II J '] .] ~J '¿I ~ I ¡' ,.roo, I 1 .1 ~J ~I I I ,', I I I I .. OP .~ _. ~- .. , """"'.",~o.,o~oq.N",oo,,....o,":' .. ~.. ,~, ., .. - - y,"¡"1'i':i"';' :;~ l"""'~~"""'t'ii,¡,¡.",;" SALINE COUNTY-CITY BUILDING AUTHORITY Sa lí na, Kansas REPORT ON EXAMINATION December 31t 1971 KENNEDY AND COE Certified Public Accountants Salina - Kansas --,. .. .'~'.- .. , .... ,... -.--.. ~ " .~=<.¡; """a'.','w.....,......~,...",._'... ...,.- . ,,---- -'W.." ' , "d' ." 1- .1"11 ",. , , ,.it::,JJ,~'\;"¡';"""~"'¡ii1Ii\""""-";;"""":~;",,,,,:,: I 1 1 ] :1 1 1 1 II .,/,."" 11" :~I,;,~, . II II .'.," ~ '.,r,',~,','. . ¡.,A, ,".'" .. . 18 .. Exhibit A Exhibit B Exhi bit C Exhibit D Exhi bit E Exhibit F Schedule 1 Sehedule 2 Schedule 3 Schedule 4 tz;- .. SALINE COUNTY-CITY BUILDING AUTHORITY Sa lina, Kansas INDEX ACCOUNTANTS' OPINION SUMMARY STATEMENT OF RECEIPTSt EXPENDITURES, AND BALANCES AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES STATEMENT OF RECEIPTS t DISBURSEMENTS t AND BALANCES OF CASHt COMPOSITION OF ENDING CASH BALANCES INSURANCE AND FIDELITY BONDS IN FORCE COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY INVES1MENTS AUDIT ADJUSTMENTS Statement of Receipts Statement of Expenditures - General Operating Fund Statement of Expenditures - Building Fund Statement of Unpaid Contracts - Building Fund ACCOUNTANTS' COMMENTS --.,-.-..--,.-.., ., Page 1 2 3 3 4 4 5-6 '\, 7 8 8 9 10-14 j"'~"""~~""- ~ "., ".~"'... " '" - ,..,..MIIIJ~~""J~~~Im.""'", , -",,'. . ....__.,~ . , . ..~ I I SALINE COUNTY-CITY BUILDING AUTHORITY Salina, Kansas I I I GOVERNING BOARD Year Ended December 31, 1971 Members (1) Mr. Lauren Gray 0) Mr. Melvin Thelander I (1) Mr. Frank Yost (2) Mrs. Nonna Cooper (2) Mr. Jack Weisgerber (3) Mr. Kenneth Ryan (4) Mr. R. Bruce Johnson Officers Mr. Frank Yost Mr. Jack Weisgerber Mr. Melvin Thelander Mr. R. Bruce Johnson Chainnan Vice-Chainnan Secret;ary Treasurer'" 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 , "~,;';,"'"""~.'M",","."""",...",...",-;.,",¡",*"-,>;..,",,,,,,,; """"""""".""-'" , , .......,\¡j¡¡;;¡;;,;;t<.Ii¡¡;;,";i;i~c"'""".~" .. - -"" ....."'.-..,....,. "" '~*~""'-" ...,>.'",¡;¡,'¡.,..iJllW&._~~~.........~ifII<'>,\I(f.",... "J'" .. " , .. lfl,',', fø ]1 ":¡ '] ~J ] ) 1 :1 'I I I I I I I I I KENNEDY AND CaE MEMBERS CERTIFIED PUBLIC ACCOUNTANTS OF OFFICES IN KANSAS SALINA CONCORDIA GREAT BEND OBERLIN COLBY GOODLAND WICHITA AMERICAN INSTITUTE OF CERTIFI ED DUBLIC ACCOUNTANTS To the Board of Directors Saline County-City Building Authority: We have examined the financial statements of the Saline County-City Building Author- itYt Salina, Kansast showing the cash position as of December 31, 1971t 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 opiniont the accompanying statements present fairly the cash position of the Saline County-City Building Authority, Sa1inat Kansas, as of December 3lt 1971t and its financial transactions for the year 1971. Respectfully submitted, ... Salina, Kansas January 1St 1972 ;{'" " ..,k , / ¿y" . / ¡[;,( (';1 ~: By' 4< },,), ð Licensed Municipal Pub ic A countant in charge of and actively engaged on this audit. 1../ -1- r88",=";'J¡,""""~""""""""""'.i1'~~"'>c"'r"..' ,,"",' " '" ,~" ," ",' ", "'" """""'~."'~""" ,.".,,"......,,~...J, ~~::...:" .".-~;;.'~¡r~¡t~¡¡itÍ.\~:¡::,:,~';'Jh"¡ ~ -- ... ,--,-_.. "'--, I Unencumbered balance beginning of year Encumbrances of prior years voided Unencumbered balance, beginning of year as Receipts - Schedule 1 Total Receipts and Beginning Balance adjusted General Operating Building Fund $ 8,633 $ l,444 14.000 8,633 lSt444 91.791 6,000 100,424 21,444 Exhibit A j '~~,' !J SALINE COUNTY-CITY BUILDING AUTHORITY Sa1inat Kansas a I I StmMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES Year Ended December 31, 1971 I I,',', " ,t I J Expenditures General Operating Fund - Schedule 2 Building Fund - Schedule 3 iI Totals 98,681 2l,096 l.743 .- 348 '\. St180 348 20,000 St180 20t348 3 ,437 20tOOO $ 1. 743 $ 348 I Unencumbered balance end of year I Represented By: Cash in bank Certificate of deposit Total Cash Deduct unpaid encumbrances I' '¡;, '~.,15:," . I ..~ q 111 ~ ..-. '¡, -2 - "">""""¡",""","",'--'k,,H,',";'W,, ~I "I ) jl i J I I I I I",.",' ~' I I '.',7, ' ,~ I it I , J ,:"';':¡;¡;~itJ¡\lII*i~'¡rii'""..w..¡""¡.c,':,.~,...,..,..".."",,, """,~""",..(*iit~\'mw.'"....... ,,",Co, -"'",.. ," SALINE COUNTY -CITY BUnDING AUTHORITY Salina, Kansas Exhibit B STATEMENT OF RECEIPTS, DISBURSEMENTS, AND BALANCES OF CASH, COMPOSITION OF ENDING CASH BALANCES Year 1971 .. Cash balance beginning of year Cash receipts Cash disbursements General Operating Building Fund Fund $12,855 $23t844 91,791 6,000 (99.466) (9,496) 5.180 20.348 Cash Balance End of Year Available Cash Cash in bank Planters State Certificate of Bank, Salinat Kansas deposit 5tl80 348 20.000 Total Available Cash $ 5.180 $20.348 Exhibit C INSURANCE AND FIDELITY BONDS IN FORCE December 31. 1971 \. Property Coverage Amount All property located at 216-300 West Ash, Salina Fire, lightning, extended coveraget vandalism, and malicious mischief $lt586t700 Saline County-City Building Authority employ~es Workmen's compensation Public liability Statutory 100tOOO 1961 Chevrolet: pickup Liability Bodily injury - Per person Aggregate 50,000 150,000 25,000 1tOOO 10,000 20tOOO 5,000 Property damage Medical payments Uninsured motorists - Per person Aggregate Fidelity Bond Treasurer -3 - """".r'J',..."",-,"".~l"""'""",Ù"""¡ " ";"""""",-,",~~~;",¡;,,,.Úi;""';~,;,,~,,,"" """'~Jj!;r-¡""'~".."",,,,¡..,~¡,,",,,Ü;<' .' í.,.....""".... "'--" , ~ H'." "",,,,">"'""<"'\C"""'i.~,"'~;;;"'" ------ ,~ , 11 ~ SALINE COUNTY-CITY BUILDING AUTHORITY Salina, Kansas Exhibit D J j COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY December 3lt 1971 I I I Planters State Bank Salina, Kansas I Gross Cash Balances Cash in bank - General Operating Fund - Building Fund Certificate of deposit - Building Fund Total Security provided by bank - F.D.I.C. coverage $ 7,604 349 20,000 27 t953 20,000 I Excess Gross Cash Balance Over Security Provided 7 .953 I Additional Security Required (70%) Additional Security Provided 5,567 I Excess Security Required Over Security Provided $ 5.567 I ExJJ,ibit E INVESTMENTS December 3lt 1971 I There were no investments at December 3lt 1971t other than the certificate of deposit classified as cash. I I I I 8. I -4- 1!~';¡¡~;tif:í'i'Ì"!.\~~,'W"'ì¡¡;¡~~V~"i-:,?',\~í¡'¡¿;ff.~~~~t:1;'l,ç;"., .'. , , ..... ,'". "'"., .""~'" ";.""V"'J" J :"','1\;;,'::\',\,);:i';';,é"..:', ,,:,\'.. u Salina, Kansas ::),ö,l[ NE COLJWI'Y -CITY BUI LDING AUTHORITY .~ AUDIT ADJUSTMENTS December 31, 1971 G EN ERAL 0 PERA TI "iG FUND u .. j -1- Outstanding encumbrances -- General Fund Janitor supplies Repair and maintenance Utilities I I Legal fees Emplov>c'e,~ retirement fund expense Payroll taxes Kansa withholding i:axes To reverse outstanding encumbrances 1970, wi,:ch were paid in 1971,. at December 3lt I I -2. Equipmen t Receipts - Saline County Receipts - ,Jther Insurance - Employee Insurance - Employer's Insurance - Property State withholding tax Federal withholding tax Legal and accounting fees Repairs and maintenance Miscellaneous expense Insurance Receipts - State of Kansas Receipts - Saline County Welfare Janitor supplies To reclassify various accounts into more c1assifi,'ltions at December 31,1971, descriptive I I I I I I -3- I Social sl~curity Other withholding - Payroll Payroll taxes Retirement fund United Eund To close 3nd adjust correct b31ances at I payroll withholding accounts to D(~cember 31, 1971. I Debit $ 4,221.60 2,239.17 821.67 3,200.00 lt518.l7 ltO88.58 2,499.77 464 . 15 4t617.l5 983.48 2t324.65 723.37 ,'_'""-""~"",i~~,,,,"~~"""',,,,-,-" -- Exhibit F Credit $ 137.41 87 .86 2t435.47 24.00 417.33 1,003.73 115.80 "; \, 177 .68 10t203.04 2,606.75 3t200.00 821.67 423.00 2,324.65 700.37 23.00 -5- ';.iiiì"""'t'i"~~.,,,";"""-"""""";;""""""""':"'*"",r rIIi'Y'\' 'iõ~_.""".....,.,â";_ii~,';"";"""k,;""""""""";,,,>,"'~""'""""""""""',,",.. , .:_C:..... h,.,..,..ÚJi;i .,,~ "."'""""""""'" """"-,,,_., ._~"~~.,'" "",. ":,Ù,¡¡";i¡~'N""",: -.... I 'I SALINE COUNTY-CITY BUILDING AUTHORITY Salinat Kansas I AUDIT ADJUSTMENTS December 3lt 1971 Exhibit F (Contd.) 'I GENERAL OPERATING FUND (CONTD.) I -4- Payroll taxes State withholding taxes Retirement fund Utilities Repairs and maintenance Miscellaneous expense Outstanding encumbrances - General Fund To record outstanding encumbrances at December 3lt 1971, for the General Fund I I I BUILDING ruND I -1- Expenditures - Building Fund Outstanding encumbrances To record encumbrance of funds 1971, for sculpture contract. at December 31t I I -2- Outstanding encumbrances - Building Fund Fund balance - Building Fund To reverse encumbrance for sculpture set up in prior period - Contract was cancelled with no performace. I I -3- Outstanding encumbrances - Building Fund Site development costs - Contracts To record Building Fund encumbrance paid by General Funds in 1971. I I -4- II I Site development costs - Contracts Outstanding encumbrances - Building Fund To correct for writedowns in contracts made December 31, 1970t which were subsequently restored. I ¡ " Debit - $ 1 t 116.75 114.85 637 .99 1 t491. 77 50.53 25.14 20,000.00 14,000.00 68.29 598.59 Credit $ 3,437.03 20,000.00 14,000... 00 68.29 598.59 -6- ;"."~~-'""-~"""""""""""~"'d",,~,.,"',¡j"....i-' -~..;p , """""""-""",~-"","~'..ø"'""""""~"'-"""""""',"N~_,"""" I I I r r .,' "¡"" "".. "":.",,',' >', ' SALINE COUNTY-CITY BUILDING AUTHORITY Sa1inat Kansas .. STATEMENT OF RECEIPTS Year 1971 Appropriations from Municipalities Regular appropriations Saline County Saline County Treasurer Saline County Welfare Snack bar rental Ci ty of Salina Salina UniUed School District /F305 Total Regular Appropriations $ 35,929 9t698 2,266 Maintenance Charges Salina Public Library Saline County City of Salina Total Maintenance Charges Other Receipts Space rental - State of Kansas Insurance proceeds from hail damage Miscellaneous receipts Return of funds advanced for sculpture Total Other Receipts Total Receipts -,- ..~ Schedule 1 General Operating Fund Building Fund $ $47,893 23,000 11 ,500 82,393 3,300 3,300 'I. 3t200 2,559 339 6tOOO 6,098 6,000 ~ $6.000 -7 - , """""""""'_'~~~"":"~""-'"--'--'- ~",,;",.__... ,~." ,.',~ L'.- I I I I I I I I I I I I I I I I I I I ..--..-,--- "._-~-'~~"""'"""~'L~C',""",'~""",~",."~""-,,~,,",,.,,,,,, .." "".. . , .i¡'i:~~ì:\\l;¡;¡~,~i~~'ffi¡"á'¡'" , SALINE COUNTY-CITY BUILDING AUTHORITY Salina, Kansas Schedule 2 STATEMENT OF EXPENDITURES - GENERAL OPERATING FUND Year 1971 (With comparative figures for the preceding year) Salaries and wages Utilities Jani tor supplies Repairs and maintenance Equipment Insurance Legal and auditing Building improvements Payro 11 taxes Employees' group insurance and retirement Miscellaneous 1971 1970 $45t20l $44t870 29t069 31,914 3t626 3,532 10 ,242 8,673 2,239 3,679 2,500 lt572 959 601 1,001 2t324 2 t 154 2t157 781 364 600 98.681 99..377 Schedule 3 " Total General Fund Expenditures STATEMENT OF EXPENDITURES - BUILDING FUND Year 1971 Saline County-City Building Project Costs - Site Development Construction Costs General Sculpture for fountain completion Accounting and auditing fees $ 530 20tOOO 566 Total Building Fund Expenditures $21.096 -8- """""""'-"'-¥"""""::"'"" ',..,""",','.', '"..,i"~-"".C~ ",-=":...,...;¡¡"""""""""".~,<-""""",""':i,.,,'...,,. --., ",""""""""",""",,,,"',. ¿ " ,"', -' SALINE COUNTY-CITY BUILDING AUTHORITY Salina, Kansas ~ STATEMENT OF UNPAID CONTRACTS - BUILDING FUND December 3l, 1971 .. \1 ¡¡" Name of Contractor Purpose Ii It Sculpture Richard A. Bergen Robert H. Platts Total Building Fountain completion Fountain completion L. Construction Site Development Abbott Constructiont Inc. Wilson-Shaver, Architects-Engineers Total Site Development General construction Architectural t l Totals t: (1) Contract cancelled ... ~ (2) Final contract adjustment (3) Payments made in 1971 as follows: Building Fund $3,205 General Fund 61 I; Total Payments 83.266 ~, I, I. I L, i "¡""""",,"'C"',,,,".."~"'"'" ' " '""".,""",....""""""""".""....,........."."""",,~,",.~.""""""""'~"""'" "...,.,......".."""'~",~...".""., t"'~""""'~"'"~'.'~, _."~. ...-"." '_.. .~_.. "',"'..",i;;¡""""",, , ' Schedule 4 ... ' I Balance of Contract Payable Additions Change Adjusted Paid in Encumbered December 31 t 1970 (Deletions) Orders Contract Payable 1971 12-31- 71 $ $20,000 $ $20tOOO $ $20,000 l4,OOO (l4,OOO) (1) l4,000 6,000 20,000 20,000 5,134 592 (2) 5 t 726 5 t 726 3,266 3,266 3,266(3) 8t400 592 8 ,992 8t992 $22 .4~ ~ ~ $28.992 $8.992 $20.000 I I I ~ t I l t -9- "1"1 ,.,..'t~;<-."~.~.""."",.~,_.,><-"",-""",<,.'~""f!"'" ~"'~'.~~'f"lîlil<"'""""_\~~",.~",~""""',,,""..r",;,,. " ' ,'" ';"",..".',..'"',, SALINE COUNTY-CITY BUILDING AUTHORITY Salinst Kansas .. ' ACCOUNTANTS' COMMENTS I I I , \, -10- ""C"<,.i~"""_",,,"',"",,kC, ",'c'~:"""c":.y,f,-,.",""¡¡¡"""""'~~"i""""""'.;!¡¡"""""IÔ,"¡¡'¡¡J-'~...ü,~",_.'ì"-:i.<J¥,¡¡i&,;.,'y", '" rr"IIl. 11 t ' f ......_""'l í""""'~==",-,=J~, I I I I I I I I I I I "'~"-~_'" .. -, -., ..-,'- , .. , - , 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. 12-2901 to 12-2907). According to the creating instrumentt the authority is a joint venture organized .6y 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 9fticest 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 powerst 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 3 2 1 Total g The board of directors of the authority is composed of 7 memberst 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. ~ COMPARISON OF CASH BALANCES WITH ENCUMBRANCES A summary of cash balances and encumbrances is shown on Exhibit A. Practically all expenditures of the Building Fund are on construction contracts over which there appears to be good control. The General Operating Fund was established in 1969 for the purpose of paying the cost " of operating, maintaining, and repairing the building. The 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. These ratios were determined in 1970, and the ratios applicable to 1971, as shown in the Minutes of the Board, are as shown on the following page: -11- .~........... ......., j } I J I I I J J I I I ---,,----_. "----"---"--""""""--'" , ..---,.....--.. Participating Agency Saline County City of Salina Salina Unified School District #305 Ratio - 64% 23% 13% 100% Total DEPOSITORY SECURITY p~oss cash balances at December 3lt 1971, exceeded security provided by the banks as shown by Exhibit D. This appears to be a violation of the provisions of K.S.A. 75-42l8. RECEIPTS Receipts, as shown by Schedule It consist of regular appropriations from participating municipalities and other special payments. The ratios of project constrûction costs were determined by the architects during 1970 and approved by the participating agencies. The final ratios were as follows: Saline County City of Salina Salina Unified School District #305 63.580811% 23.l4l692% 13.277497% lOO.OOOOOO% Total The schedule shown below summarizes the regular appropriations paid by the par- ticipating municipalities to the General Operating Fund during 1971 and the position .f each agency as to the correct payment ratio at December 3l, 1971. Saline County City of Salina Salina U.S.D. fÞ30S ..,' "- Total Total cash received in 1971 on regular payments Payment made in 1970 by Saline County applicable to 1971 appropriations Payment made in 1971 by Salina U.S.D. #305 applicable to 1970 appropriations Snack bar receipts December 1971 receipt, applied to 1972 December 1970 receipt, applicable to 1971 Adjusted payments $47,893 $23,000 $11 tSOO $82t393 6,140 6,l40 (1,100) (1,100) (182) (182) 158 158 54,009 23,000 10,400 87,409 -12- ',<' -"",.~"""""""""""""C_"",,,"..~',<'..'.. ,,': '.' ," "r;~;t').II1:i.{I:~,'~J1:1!&;,;'""" .,.'A w,~;;f.J'}"::,"'~\'¡':""",, , ("'~'¡':" ,',:,,~h"" , "" ' '.1""""11.~ - ; " I I I -. ",- Continued from page 12 Saline City of Salina U.S.D. County Salina f130S Total - Payments Required according to agreed Ratios $51.200 $18.400 $10,400 $80,000 Amount of overpayment on regular payments 2,809 4,600 7,409 . Amount of underpayment on pro- portionate share of building maintenance 300 300 600 ;' . Net Overpayment $ 2.509 ~ $ $ 6.809 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 3lt 1970 Payment in 1971 Less interest at 5% $11 , l48 $2,266 517 1,749 Unpaid Balance December 3l, 1971 $ 9.399 EXPENDITURES Schedules 2 and 3 summarize the expenditures of the General Operating Fund and .utiding Fund respectively. A schedule of unpaid contracts applicable to the Building Fund, together with payments made and remaining unpaid balances, is shown in Schedule 4. ~ " Wendted expenditures during the period which appeared to be in violation of statutory provisions. They were as follows: 1. K.S.A. l2-l05b 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 1971. 2. It appears a violation of the Cash Basis February, 1971, since outstanding checks cash in the bank at that date. Adequate encumbered and we could not dertemine if Law occurred. Law, K.S.A. 10-1112 occurred in at February 28.1971, exceeded records were not kept of funds other violations of the Cash Basis -13- """....,,' """,'" '.. ..' .. I i i 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. We~oted that the minutes for the month of April were not signed by the Secretary ahd the minutes for the month of December had not been signed by the Chairman. All other months were properly approved and signed. No approval or order to pay the bills for the month of November could be found in the minutes. REQUIRED STATEMENTS References Comparison of Cash Balances with Encumbrances Exhibit A Classified Statement of Receipts, Disbursements, and Balances of Cash and Composition of Ending Cash Balance Exhibit B Comparison of Depository Security and Balances on Deposit Exhibit D Schedule of Investments Exhibit E Summary of Insurance Coverage Exhibit'C Schedule of Fidelity Bonds of Officers Exhibit C -14-