Loading...
Audit - 1998/1999 SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas STATEMENTS OF REVENUE AND ALLOWABLE EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT AND CONVENTION AND TOURISM SERVICES AND INDEPENDENT AUDITORS' REPORT December 31,1999 and 1998 CLUBINE AND RETTELE, CHARTERED CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas IN D EX Page INDEPENDENT AUDITORS' REPORT 1 STATEMENTS OF REVENUE AND ALLOWABLE EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES STATEMENTS OF REVENUE AND ALLOWABLE EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES 2-4 5-6 NOTES TO FINANCIAL STATEMENTS 7 CLUBlNE& RElTELE CHARfERED Certified Public Accountants rll Robert I. Clubine, C.PA David A. Rettele, C.PA Jay D. Langley, C.P.A. Jon K. Bell, C.PA Leslie M. Corbett, C.P.A Stacy J. Osner, C.PA Marci K. Fox, C.PA Linda A. Suelter, C.PA 218 South Santa Fe P.O. Box 2267 Salina, Kansas 67402-2267 Salina 785 / 825-5479 785/827-1188 Ellsworth 785/472-3915 INDEPENDENT AUDITORS' REPORT To: The Board of Directors Salina Area Chamber of Commerce, Inc. We have audited the accompanying statements of revenue and allowable expenses of the Salina Area Chamber of Commerce, Inc. (a nonprofit organization) as of December 31, 1999 and 1998, pursuant to an agreement relating to Economic Development services between the Chamber and the City of Salina, Saline County and the Salina Airport Authority, and pursuant to an agreement relating to Convention and Tourism services between the Chamber and the City of Salina. These statements arel the responsibility of the Chamber's management. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statements of revenue and allowable expenses are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying statements were prepared for the purpose of complying with the provisions of agreements described in Note 2 and 3 and are not intended to be a complete presentation of the Chamber's revenues and expenses. In our opinion, the accompanying statements of revenue and allowable expenses present fairly, in all material respects, the revenue and allowable expenses of the Chamber for the years ended December 31, 1999 and 1998, pursuant to the agreements referred to in Notes 2 and 3 in conformity with generally accepted accounting principles. This report is intended solely for the information and use of the board of trustees and management of the Chamber and the City of Salina, Saline County and the Salina Airport Authority and should not be used for any other purpose. CLUBINE AND RETTELE, CHARTERED (ltwt.H.~LC! CJ..jL-t.;('~.li.'-L& February 23, 2000 (1 ) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas STATEMENTS OF REVENUE AND ALLOWABLE EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES For the Year Ended December 31, 1999 1998 Revenue City of Salina Saline County Salina Airport Authority Total Revenue $ 85,000 $ 15,000 20,000 120,000 85,000 15,000 20,000 120,000 Expenses Program expenses (Schedule 1A) Administrative and general expenses (Schedule 2A) Staff expenses (Schedule 3A) Building operation expenses (Schedule 4A) Total Expenses Excess of Expenses Over Revenue 85,177 86,937 12,251 13,394 153,061 142,941 11 ,128 8,452 261,617 251,724 $ (141,617) $ (131,724) SEE THE ACCOMPANY NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (2) WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES SCHEDULES For the Year Ended December 31, 1999 1998 Schedule 1A - Program Expenses New industry development $ 16,085 $ 13,870 New industry advertising 17,389 22,681 Existing industry development 5,244 520 Advertising 43 Progress luncheon 2,585 Careers 2000 1,079 Seminars 4,507 4,108 Jobs Fair 261 3,031 Miscellaneous 24 ( 154 ) Testing and counseling 1,182 7,953 Grants 247 37 S SRS Job development 9,089 8,951 Medical directory 3,740 Business development 2,141 Transfer to SBDC 24,189 23,253 Special events 59 Total Program Expenses $ 85,177 $ 86,937 Schedule 2A - Administrative and General Expenses Legal and accounting $ 1,088 $ 1,019 Automobile expense 1,967 2,004 Office supplies 1,994 2,748 Postage 1,308 1,100 Telephone 2,087 2,026 Dues and subscriptions 3,314 3,619 Insurance 325 596 Miscellaneous 168 282 Total Administrative and General Expenses $ 12,251 $ 13,394 Schedule 3A - Staff Expenses Salaries $ 117,583 $ 118,467 Contract labor 1,399 12 Payroll taxes 7,978 8,218 Group medical insurance 11,120 10,351 Retirement 6,665 (598) Group life insurance 534 367 Cafeteria plan 159 158 Unemployment tax 183 224 Workers compensation insurance 368 363 Professional development 7,072 5,379 Total Staff Expenses $ 153,061 $ 142,941 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (3) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas STATEMENTS OF REVENUE AND ALLOWABLE EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES SCHEDULES (Continued) For the Year Ended December 31, 1999 1998 Schedule 4A -Building Operation Expenses Property insurance Utilities Taxes Equipment maintenance Maintenance and janitorial Depreciation Total Building Operation Expenses $ $ 185 $ 769 924 1,374 1,067 6,809 11,128 :$ SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (4) 115 588 621 722 1,925 4,481 8,452 SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas STATEMENTS OF REVENUE AND ALLOWABLE EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES For the Year Ended Decemb<er 31, 1999 1998 Revenue City of Salina $ 456,777 $ 426,483 Expenses Program expenses (Schedule 1 B) Administrative and general expenses (Schedule 2B) Staff expenses (Schedule 3B) Building operation expenses (Schedule 4B) Total Expenses Excess of Revenue (Expenses) Over Expenses (Revenue) 214,379 241,355 25,645 26,419 167,971 147.547 26,502 24,229 434,497 439,550 $ 22,280 :$ (13,067) SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (5) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas STATEMENTS OF REVENUE AND ALLOWABLE EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES SCHEDULES For the Year Ended DecembE~r 31, 1999 1998 Schedule 1 B - Program Expenses Signage $ 10,106 $ 12,881 Advertising 12,150 7,360 Convention marketing 5,662 7,653 Convention services 27,585 22,235 Tourism marketing 17,835 14,821 Sports 130,841 168,185 Special projects 10,200 8,220 Total Program Expenses $ 214,379 $ 241,355 Schedule 2B - Administration and General Expenses Legal and accounting $ 1,321 $ 1,238 Automobile expense 7,143 8,621 Office supplies 5,659 5,640 Postage 5,106 4,148 Telephone 2,907 3,272 Dues and subscriptions 2,942 2,506 Insurance 386 704 Miscellaneous 181 290 Total Administration and General Expenses $ 25,645 $ 26,419 Schedule 3B - Staff Expenses Salaries $ 130,773 $ 116,465 Contract labor 1,358 12 Payroll tax 9,332 8,205 Group medical insurance 13,458 11 , 130 Retirement 7,785 6,751 Group life insurance 616 664 Cafeteria plan 240 170 Unemployment tax 272 200 Workers compensation insurance 491 435 Professional development 3,646 3,515 Total Staff Expenses $ 167,971 $ 147,547 Schedule 4B - Building Operation Expenses Property insurance $ 829 $ 491 Utilities 2,608 2,002 Taxes 3,941 2,688 Equipment maintenance 4,701 3,400 Maintenance and janitorial 3,564 6,589 Depreciation 10,859 9,059 Total Building Operation Expenses $ 26,502 $ 24,229 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (6) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,1999 1. Nature of Organization and Significant Accounting Policies A. Nature of Organization Salina Area Chamber of Commerce, Inc. (the "Chamber") is a nonprofit organization located in Salina, Kansas. Its purpose is to administer various activities advancing the general welfare and prosperity of the Salina area especially in the areas of economic development and tourism. B. Income Tax Exemption The Chamber is exempt from income tax under Internal Revenue Code Section 501 (c)(6). C. Accounting Method The books of the Chamber are maintained and these financial statements were prepared on the accrual method of accounting. Under this method revenues are recognized when earned and expenses are recognized when incurred. D. Land, Building and Equipment Land, building and equipment are carried at cost. Depreciation of the building and equipment is computed on a straight-line basis over the estimated useful lives of the respective assets. The building, parking lot and landscaping are depreciated over their estimated useful lives which range from 8 to 35 years and the estimated useful lives of the furniture, fixtures and equipment range from 3 to 10 years. E. Allocation of expenses The basis for allocation of expenses to specific programs is determined by management. Expenses that can be directly identified with specific programs are charged to that program. Other expenses are allocated using predetermined percentages. F. Estimates The preparation of financial statements in conformity with generally accepted accountin9 principles requires the use of management's estimates. 2. Contributions Relating to Economic Development The 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. The agreement provides that the Chamber will expend funds received on programs and services that the parties to this agreement believe will enhance the economic development of the area. 3. Contract Relating to Convention and Tourism The Chamber has entered into a contract with the City of Salina to provide convention and tourism programs to encourage, promote and solicit conventions and tourism for the City of Salina, and the City has appointed a Convention and Tourism Advisory Committee to provide recommendations to the Chamber programs in connection with this contract. Under this contract the City makes quarterly contributions to the Chamber of sixty percent of the proceeds of the local transient guest tax levied on hotel and motel guests. (7)