SCEDO Audit 2020SALINA
KANSAS
November 16, 2021
Mike Schrage
Saline County
300 West Ash, Room 217
Salina, KS 67401
Dear Mike:
Sa l ina Community
Economic Deve l opment
Organization
Attached is a copy of the 2020 Audit Report for the Salina Community
Economic Development Organization. The CPA firm of Woods and Durham
completed the audit of the organization.
The report was presented at the September 16th Board of Directors
meeting by auditor Hillary Richards. After Ms. Richard's review of the
SCEDO financial status and additional questions from the Board of
Directors the audit was accepted.
If you or any of the Commissioners have any questions, please call or email
me and I will be glad to respond to those questions. We greatly appreciate
the Salina Airport Authority's support and assistance with carrying out the
SCEDO's mission.
Respectfully Submitted,
D. Mitch Robinson, CEcD
Executive Director
120 W. Ash I Salina , KS 67402-0586 I 785 .404.3131 I www.salinaedo.org
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
AUDITED FINANCIAL STATEMENTS
December 31, 2020
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina, Kansas
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
TABLE OF CONTENTS
Independent Auditors' Report ................................................. .
Page
Numbers
Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 7
certified
public
C H A R T E R E D accountants
INDEPENDENT AUDITORS' REPORT
To the Members of
Salina Community Economic Development Organization
We have audited the accompanying financial statements of Salina Community Economic Development
Organization (a nonprofit organization), which comprise the statement of financial position as of
December 31 , 2020 , and the related statements of act ivities and cash flows for the year then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America ; this includes
the design , implementation , and the maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America . Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements . The procedures selected depend on the auditor's judgment , including the
assessment of the risks of material misstatement of the financial statements , whether due to fraud or
error . In making those risk assessments , the auditors considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances , but not for the purpose of expressing an opin ion on the effectiveness
of the entity's internal control. Accordingly, we express no such opinion . An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management , as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion , the financial statements referred to above present fairly , in all material respects , the
financial position of Salina Community Economic Development Organization as of December 31, 2020 ,
and the changes in its net assets and its cash flows for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
August 23 , 2021
WoodS el CDurnam, Cntcf.
WOODS & DURHAM , CHTD .
Certified Public Accountants
1619 E. Iron Avenue • P.O. Box 1516 • Salina, Kansas 67402-1516 • Phone 785-825-5494
Fax 785-825-4450 • www.woodsanddurharn.com
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SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
STATEMENT OF FINANCIAL POSITION
December 31, 2020
ASSETS
Current Assets
Cash ·
Member contributions receivable
Prepaid health insurance
Total Current Assets
Property and Equipment
Furniture and equipment
Less: Accumulated depreciation
Net Property and Equipment
TOT AL ASSETS
LIABILITIES AND NET ASSETS
Liabilities
Accounts payable
Payroll liab ilit ies
Deferred member contribut ions
Total Liabilities
Net Assets
W ithout donor restrictions
With donor restrictions
Total Net Assets
TOTAL LIABILITIES AND NET ASSETS
See Independent Aud itors ' Report and No tes to Finan ci al Statemen ts.
2
$
$
$
$
235 ,620
291 ,000
1,364
527 ,984
6 ,145
(5 ,191)
954
528 ,938
2 ,210
4 ,011
291 ,000
297 ,221
211 ,717
20 ,000
231 ,717
528 ,938
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2020
CHANGES IN NET ASSETS WITHOUT DONOR RESTRICTIONS
Private Support
Member contributions
Grants
Gifts in kind
Interest income
Total Support and Revenue Without Donor Restrictions
Expenses
Program Services
Economic Development Expenses
Marketing events
Travel and meetings
Payroll and benefits
Memberships
Advertising and promotion
Other program services
Total Program Services
Supporting Services
Contract services
Payroll and benefits
Office expense
Depreciation
Dues and subscriptions
Donated facilities
Other supporting services
Total Supporting Services
Total Expenses Without Donor Restrictions
Change in Net Assets Without Donor Restrictions
CHANGES IN NET ASSETS WITH DONOR RESTRICTIONS
Grants
Change in Net Assets With Donor Restrictions
NET ASSETS -BEGINNING OF YEAR
NET ASSETS -END OF YEAR
$ 265 ,500
10 ,000
20 ,000
1,377
585
3,339
217 ,055
950
9,927
687
12 ,380
24,644
4,921
651
9 ,255
20,000
5,885
20 ,000
See Independent Auditors' Report and Notes to Financial Statements .
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296 ,877
232,543
77 ,736
310,279
(13,402)
20,000
225 , 119
$ 231 ,717
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
STATEMENT OF CASH FLOWS -INDIRECT
December 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income
Depreciation
(Increase) decrease in :
Member contributions receivable
Prepaid health insurance
Increase (decrease) in :
Accounts payable
Payroll liabilities
Deferred member contributions
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH -BEGINNING OF YEAR
CASH -END OF YEAR
SUPPLEMENTAL CASH FLOW DISCLOSURES
Cash paid for income taxes
Cash pa id for interest
See Independent Auditors ' Report and Notes to Financial Statements .
4
$ 6 ,598
651
(25 ,500)
(116)
1,697
3 ,688
25 ,500
12 ,518
223 ,102
$ 235 ,620
$
$
SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
NOTE 1 -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Salina Community Economic Development Organ ization was created by an agreement dated November
17 , 2015 , between the members : Saline County , Kansas , The Salina Airport Authority, The City of Salina ,
Kansas, and the Salina Area Chamber of Commerce , to be the community's primary economic development
entity. It is funded solely by member contributions on a three-year contractual basis.
Basis of Accounting -The Organization prepares its Financial Statements on the accrual basis of accounting ,
which is a basis of accounting in compliance with generally approved accounting principles . Under this basis ,
revenues are recorded when earned and expenses are recorded when they are incurred.
Basis of Presentation -The Organization is required to report information regarding its financial position and
activities according to two classes of net assets : with donor restrictions and without donor restrictions.
Net Assets -Net assets , revenues , ga ins , and losses are classified based on the existence or absence of
donor-or-grantor-imposed restrictions . Net assets without donor restrictions are available for use in general
operations and not subject to donor restrictions . Net assets with donor restrictions are subject to donor-
imposed restrictions . Some donor-imposed restrictions are temporary in nature, such as those that will be met
by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual
in nature , where the donor stipulates that resources be maintained in perpetuity.
Contributions -Contributions of cash and other assets received without donor stipulations are reported as
support and net assets without donor restrictions. Contributions received with a donor stipulation that limits their
use are reported as support and net assets with donor restrictions. When a donor-stipulated time restriction
ends , or purpose restriction is accomplished , net assets with donor restrictions are reclassified to net assets
without donor restrictions and reported in the statement of activities as net assets released from restrictions.
Property and Equipment -The amount recorded as Property and Equipment represents equipment
purchased by the Salina Community Economic Development Organization and is recorded at cost.
Depreciation has been provided for those assets based upon the straight-line method over the useful life of the
assets . It is the policy of the Organization to capitalize equipment in excess of $1 ,000 . There are no restrictions
placed , nor liens against any of these assets.
Cash and Cash Equivalents -Cash and Cash Equivalents includes all monies in the Organization's bank
account. Fair market value equals carrying amounts .
Use of Estimates -The preparation of financial statements requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from
those estimates .
Income Taxes -The Salina Community Economic Development Organization is exempt from federal income
taxes under Section 501 (c)(6) of the Internal Revenue Code , and is classified as "other than a private
foundation ." Therefore, no provision for income taxes is reflected in these financial statements .
Grants with Donor Restrictions -The Salina Community Economic Development Organization received a
$20 ,000 grant during 2020 , in which the donor stipulated that the funds were to be used for updating of the
organization's strategic plan to address COVID-related issues and their impact. As of December 31 , 2020 ,
none of the funds have been used for this purpose . The funds are expected to be expended within 12 months
of the year-end .
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SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
NOTE 1 -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Advertising Costs -Advertising and promotional costs are charged to expense as incurred . During the year ,
the Organization spent $9,927 for advertising and promotional expense.
Fair Value of Financial Instruments -The amounts reported on the Statement of Financial Position for
member contributions receivable , accounts payable and payroll and other liabilities , are reported at actual
value , which is considered to be fair value , due to the short-term nature of these financial instruments .
Functional Allocation of Expenses -The costs of providing various programs and other activities have been
summarized on a functional basis in the Statement of Activities . The Statement of Functional Expenses
presents the natural classification of expenses by function. Accordingly, certain costs have been allocated
among the programs and supporting services benefited . The expenses allocated include salaries and benefits,
which were allocated on the basis of estimated time and effort.
Contributed Services -No amounts have been reflected in the financial statements for donated services. The
Organization generally pays for services requiring specific expertise . Some individuals volunteer their time and
perform tasks that assist the Organization ; however , these services do not meet the criteria for recognition .
NOTE 2 -LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS
Financial assets available for general expenditure , that is, without donor or other restrictions limiting their use,
within one year of December 31, 2020 , is comprised of the following :
Total financial assets
Donor-imposed restrictions
Financial assets available to meet cash needs
for general expenditures within one year
$ 235 ,620
(20 ,000)
$ 215 ,620
As part of the Organization's liquidity management, it is set up for automatic transfers between the operating
bank account and commercial sweep account. The sweep account is set up to monitor the balance of the
checking account and will transfer funds as needed.
NOTE 3 -SUPPORT -MEMBER CONTRIBUTION
The funding for the Organization is based upon scheduled member contributions over a three-year funding
model.
The current funding schedule is as follows:
2019 2020 2021
City of Salina $ 250 ,000 $ 225 ,000 $ 250,000
Saline County 20 ,000 20 ,000 20 ,000
Salina Airport Authority 20 ,000 20 ,500 21 ,000
$ 290 ,000 $ 265 ,500 $ 291 ,000
The Organization considers these contribution receivables as fully collectible, so, accordingly, no allowance for
uncollectibility is recorded . The next funding agreement will be for years 2022-2024.
NOTE 4 -CONCENTRATION OF CREDIT RISK
As of December 31 , 2020, and for certain periods prior to year-end, the cash balance of the Organization
exceeded the FDIC account limits at the banking institution .
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SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
NOTE 5-CONCENTRATION OF REVENUE RISK
During the year ended December 31, 2020, the Organization's member contributions made up approximately
89% of total revenue and 100% of receivables .
NOTE 6 -UNCERTAIN INCOME TAX POSITION
The Organization follows the provision of uncertain tax positions as addressed in FASB Accounting Standards.
The Organization believes that it has appropriate support for any tax position taken, and as such, does not have
any uncertain tax positions that are material to the financial statements.
NOTE 7 -COMPENSATED ABSENCES
Employees are not permitted to carry over unused vacation or illness allowances. Accordingly , no accrual for
such is included in these financial statements .
NOTE 8 -RETIREMENT EXPENSE
Retirement expense for the years ending December 31 , 2019 and 2020 was $11,012 and $11,052 ,
respectively. Due to timing, the total of $22 ,064 is reflected on the financial statements for the year ending
December 31 , 2020 . The retirement plan is essentially an IRA contribution made on behalf of the employee,
and is recorded as additional compensation to the employee.
NOTE 9 -GIFTS IN-KIND
The Organization utilizes office space , furnishings , and staff support from the Salina Area Chamber of
Commerce. The facilities and support are provided at no cost to the Organization, but based on current market
rates, the Organization would have paid $20,000 for the year ended December 31, 2020.
NOTE 10 -RELATED PARTIES
The Organization has a revenue agreement (see Note 3) with three related party organizations. Member
contributions from related parties were $265 ,500 for the year ending December 31, 2020. Gifts in-kind from
related parties were $20,000 for the year ending December 31, 2020 (see Note 9).
NOTE11-SUBSEQUENTEVENTS
Management has evaluated subsequent events through August 23 , 2021 , the date on which these financial
statements were available to be issued . Management concluded that there were no material subsequent
events or transactions that required additional disclosure in these financial statements. However, the long-term
effects of the COVID-19 pandemic on the financial position and activities for the year 2021 are unknown at this
time .
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