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)