Audit - 1971
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SALINE COUNTY-CITY BUILDING AUTIIDRITY
Salin at Kansas
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REPORT ON EXAMINATION
December 3lt 1971
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CERrrIFIED PUBLIC ACCOUNTANTS
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SALINE COUNTY-CITY BUILDING AUTHORITY
Sa lí na, Kansas
REPORT ON EXAMINATION
December 31t 1971
KENNEDY AND COE
Certified Public Accountants
Salina - Kansas
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Exhibit A
Exhibit B
Exhi bit C
Exhibit D
Exhi bit E
Exhibit F
Schedule 1
Sehedule 2
Schedule 3
Schedule 4
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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
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salina, Kansas
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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
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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,
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Salina, Kansas
January 1St 1972
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this audit.
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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
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SALINE COUNTY-CITY BUILDING AUTHORITY
Sa1inat Kansas
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StmMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND
BALANCES AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES
Year Ended December 31, 1971
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Expenditures
General Operating Fund - Schedule 2
Building Fund - Schedule 3
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Totals
98,681
2l,096
l.743 .- 348
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St180 348
20,000
St180 20t348
3 ,437 20tOOO
$ 1. 743 $ 348
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Unencumbered balance end of year
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Represented By:
Cash in bank
Certificate of deposit
Total Cash
Deduct unpaid encumbrances
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SALINE COUNTY -CITY BUnDING AUTHORITY
Salina, Kansas
Exhibit B
STATEMENT OF RECEIPTS, DISBURSEMENTS, AND
BALANCES OF CASH, COMPOSITION OF ENDING CASH BALANCES
Year 1971
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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
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348
20.000
Total Available Cash
$ 5.180
$20.348
Exhibit C
INSURANCE AND FIDELITY BONDS IN FORCE
December 31. 1971
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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
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Salina, Kansas
Exhibit D
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COMPARISON OF GROSS CASH BALANCES WITH
DEPOSITORY SECURITY
December 3lt 1971
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Planters
State Bank
Salina, Kansas
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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
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Excess Gross Cash Balance Over Security Provided
7 .953
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Additional Security Required (70%)
Additional Security Provided
5,567
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Excess Security Required Over Security Provided
$ 5.567
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INVESTMENTS
December 3lt 1971
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There were no investments at December 3lt 1971t other than the certificate of
deposit classified as cash.
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::),ö,l[ NE COLJWI'Y -CITY BUI LDING AUTHORITY
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AUDIT ADJUSTMENTS
December 31, 1971
G EN ERAL 0 PERA TI "iG FUND
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Outstanding encumbrances -- General Fund
Janitor supplies
Repair and maintenance
Utilities
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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
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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
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Social sl~curity
Other withholding - Payroll
Payroll taxes
Retirement fund
United Eund
To close 3nd adjust
correct b31ances at
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D(~cember 31, 1971.
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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
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Credit
$
137.41
87 .86
2t435.47
24.00
417.33
1,003.73
115.80
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10t203.04
2,606.75
3t200.00
821.67
423.00
2,324.65
700.37
23.00
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Salinat Kansas
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AUDIT ADJUSTMENTS
December 3lt 1971
Exhibit F (Contd.)
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GENERAL OPERATING FUND (CONTD.)
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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
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BUILDING ruND
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Expenditures - Building Fund
Outstanding encumbrances
To record encumbrance of funds
1971, for sculpture contract.
at December 31t
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Outstanding encumbrances - Building Fund
Fund balance - Building Fund
To reverse encumbrance for sculpture
set up in prior period - Contract was
cancelled with no performace.
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Outstanding encumbrances - Building Fund
Site development costs - Contracts
To record Building Fund encumbrance
paid by General Funds in 1971.
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Outstanding encumbrances - Building Fund
To correct for writedowns in contracts made
December 31, 1970t which were subsequently
restored.
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Debit
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$ 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
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SALINE COUNTY-CITY BUILDING AUTHORITY
Sa1inat Kansas
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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
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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
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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
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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
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Salina, Kansas
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STATEMENT OF UNPAID CONTRACTS - BUILDING FUND
December 3l, 1971
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Name of Contractor
Purpose
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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
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(1)
Contract cancelled
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Final contract adjustment
(3)
Payments made in 1971 as follows:
Building Fund $3,205
General Fund 61
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Total Payments
83.266
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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
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SALINE COUNTY-CITY BUILDING AUTHORITY
Salinst Kansas
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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. 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
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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.
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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
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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:
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Participating Agency
Saline County
City of Salina
Salina Unified School District #305
Ratio
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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.
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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
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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
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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
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