Audit - 2004/2005
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31,2005 and 2004
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALlNA,KANSAS
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
TABLE OF CONTENTS
Paqe
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
Exhibit I
BALANCE SHEETS
2
Exhibit II
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
3
Exhibit III
STATEMENTS OF EXPENSES - BUDGET AND ACTUAL
4
Exhibit IV
STATEMENTS OF CASH FLOWS
5
NOTES TO FINANCIAL STATEMENTS
6-9
SUPPLEMENTAL INFORMATION
Schedule 1
GRANTS FROM THE KANSAS STATE DEPARTMENT OF HEALTH
AND ENVIRONMENT
10
Schedule 2
FEES FOR SERVICES
11
SINGLE AUDIT SECTION
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
12
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
13-14
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
15
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
16
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
17
CORRECTIVE ACTION PLAN
18
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
19
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FINANCIAL SECTION
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CLUBlNE&
RETTELE
CHARfERED
Certified Public Accountants
(fI1
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
Stacy J. Sokol, C.P.A.
Marci K. Fox, C.P.A.
Delores K. Longenecker, C.P.A.
John T. Millikin, C.P.A.
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
Salina Fax
785 / 825-2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
INDEPENDENT AUDITORS' REPORT
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas
We have audited the accompanying financial statements of Salina-Saline County Board of
Health, Salina, Kansas, as of and for the years ended December 31,2005 and 2004 as
listed in the table of contents. These financial statements are the responsibility of the
Board of Health's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the
United States of America, the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States
and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and
Reports, Department of Administration of the State of Kansas. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial 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.
As described in Note B(2), management has not included the capitalization and
depreciation of property and equipment, which should be included in order to conform with
accounting principles generally accepted in the United States of America. The amount that
should be capitalized and depreciated is not reasonably determined.
In our opinion, except for the effect on the financial statements of the omission described in
the preceding paragraph, the financial statements referred to above present fairly, in all
material respects, the financial position of the Salina-Saline County Board of Health at
December 31,2005 and 2004, and the results of its operations and cash flows for the
years then ended in conformity with accounting principles generally accepted in the United
States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
May 31,2006 on our consideration of Salina-Saline County Board of Health's internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements and other matters. The purpose of the
report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 11 and 12 is
presented for purposes of additional analysis and is not a required part of the basic
financial statements. The accompanying schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by U.S. Office of Management
and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the basic financial statements of Salina-
Saline County Board of Health. The supplemental information and the schedule of
expenditures of federal awards has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
Respectfully submitted,
~~~Q \CQm~
CLUBINE AND RETTELE, CHARTERED
May 31,2006
(1 )
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
BALANCE SHEETS
ASSETS
Cash
Accounts receivable
State of Kansas Department of Health and Environment (Note 5)
Medicare and Medicaid
Other care services
Totals
LIABILITIES AND FUND BALANCE
Liabilities
Vouchers payable
Accrued salaries
Accrued liability for compensated absences
Animal Shelter Reward fund payable
Total Liabilities
Deferred Income (Note 5)
Fund Balance
Unrestricted
Totals
The accompanying notes are an integral part
of these financial statements.
(2)
Exhibit I
December 31,
2005 2004
$ 770,447 $ 510,098
36,724 61,809
50,618 43,199
17,059 52,568
$ 874,848 $ 667,674
$ 138,162 $ 9,408
75,190 70,458
203,224 201,871
97,287 102,324
513,863 384,061
36,489 61,595
324,496 222,018
$ 874,848 $ 667,674
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
Exhibit II
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31,
2005 2004
Actual Budget Actual Budget
Revenues
Appropriation from Saline
County, Kansas (Note 4) $ 576,934 $ 576,934 $ 527,410 $ 527,411
Appropriation from City of
Salina, Kansas (Note 4) 796,362 796,362 740,448 740,447
Grants from the State Department of
Health and Environment 817,241 750,515 890,862 690,572
Fees for services 778,210 683,120 794,577 741,120
Interest income 12,292 4,107 850
Miscellaneous revenues 276,501 206,699 276,362 235,175
Total Revenues 3,257,540 3,013,630 3,233,766 2,935,575
Expenses 3,155,062 3,013,630 3,121,586 2,935,575
Excess (Deficit) of Revenues
over Expenses 102,478 112,180
Fund Balance, January 1 222,018 385,130 109,838 385,130
Fund Balance, December 31 $ 324,496 $ 385,130 $ 222,018 $ 385,130
The accompanying notes are an integral part
of these financial statements.
(3)
I SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
I Exhibit III
I STATEMENTS OF EXPENSES - BUDGET AND ACTUAL
I For the Year Ended December 31,
2005 2004
Actual Budget Actual Budget
I Personal Services
Salaries $ 1,927,156 $ 1,869,134 $ 1,862,216 $ 1,826,502
Social security 136,862 141,900 128,517 138,838
I Retirement 71,899 68,565 58,991 61,942
Health insurance 249,527 259,659 261,402 266,357
Unemployment insurance 10,786 10,766 10,584 8,711
Professional services 157,800 152,825 186,473 155,000
I Contractual services
Auditing 7,550 7,000 7,170 7,000
Accounting 760 675 675 675
I Building and grounds - Remodeling
and repair 6,582 1,500 4,744 28,000
Telephone 20,664 17,500 10,284 8,000
I Mileage 59,068 62,000 57,822 65,000
Service contracts and equipment
lease 62,648 41 ,400 47,690 18,000
I Insurance 89,369 89,000 72,156 89,000
Expendable supplies
Office supplies 32,128 26,500 39,572 25,000
Postage and express 15,156 12,135 13,129 12,000
I Books, dues and subscriptions 4,794 5,300 5,429 10,750
Equipment maintenance and repair 690 1,000 860 1,000
Gasoline and oil 5,807 7,000 4,998 7,000
I Clinical and medical supplies 122,693 110,000 124,396 115,000
Chemicals 9,552 3,500 7,753 3,000
Veterinary and medical services 33,500 14,000 87,179 15,000
I Animal maintenance 994 3,300 2,559 3,300
Shelter refund 13,000 12,000 18,863 11,000
Professional meetings 23,958 14,000 17,991 14,000
Utilities and water 50,432 38,000 48,200 14,000
I Custodial services 4,181 5,800 3,897 5,000
Health Education 21,685 21,171 36,928 22,000
Miscellaneous expense 3,121 1,000 1,108 1,500
I Capital equipment 12,700 17,000 3,000
Total Expenses $ 3,155,062 $ 3,013,630 $ 3,121,586 $ 2,935,575
I
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I The accompanying notes are an integral part
of these financial statements.
I (4)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
STATEMENTS OF CASH FLOWS
Cash Flow From Operating Activities
Saline County, Kansas
City of Salina, Kansas
Grants
Fees
Miscellaneous
Interest income
Cash paid to suppliers and others
Cash paid to employees for services
Net Cash Provided by Operating Activities
Increase in Cash
Cash at Beginning of Year
Cash at End of Year
Exhibit IV
$
For the Year Ended
December 31,
2005 2004
576,934 $ 527,410
796,362 740,448
817,220 955,246
770,791 834,771
312,010 276,362
12,292 4,107
(1,104,189) (1,269,035)
(1,921,071 ) (1,824,837)
260,349 244,472
260,349 244,472
510,098 265,626
770,447 $ 510,098
$
RECONCILIATION OF EXCESS (DEFICIT) OF REVENUES OVER EXPENSES
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Excess of Revenues over Expenses - Exhibit II
Adjustments to reconcile excess (deficit) of revenues over
expenses to net cash provided by operating activities
Decrease in accounts receivable
Increase (Decrease) in vouchers payable
Increase in accrued salaries
Increase in accrued compensated absences
Increase (Decrease) in Animal Shelter Reward fund payable
Increase (Decrease) in deferred income
Total Adjustments
Net Cash Provided by Operating Activities
The accompanying notes are an integral part
of these financial statements.
(5)
$
102,478 $
112,180
53,175 49,964
128,754 (10,774)
4,732 19,184
1,353 18,195
(5,037) 1,109
(25,106) 54,614
157,871 132,292
$ 260,349 $ 244,472
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2005 and 2004
1. Summary of Significant Accounting Policies
A. Reporting Entity
The Salina-Saline County Board of Health was formed on June 28, 1955, under the Joint Resolution and
Agreement of the County of Saline and the City of Salina. The Board of Health is a joint venture organized for
the purpose of promoting the public health and sanitation of the county and city. The Governing Body of the
Board of Health is composed of eleven members, three appointed City Commissioners, three appointed
County Commissioners, and five members selected by the six appointed Commissioners.
Based on the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board, the
Board of Health is considered a joint venture between the County of Saline and the City of Salina due to
ongoing financial responsibility of those governments for the Board of Health.
B. Basis of Statement Presentation
The Board of Health maintains its accounting records in accordance with the principles of fund accounting in
order to ensure observance of limitations and restrictions placed on the use of resources available. The
significant accounting policies followed by the Board of Health are described below to enhance the usefulness
of the financial statements to the reader.
1) The accompanying financial statements have been prepared on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e.,
when they become both measurable and available). "Measurable" means the amount of the transaction
can be determined and "available" means collectible within the current period or soon enough thereafter to
be used to pay liabilities of the current period. Revenues from cost-reimbursement grants are recognized
in the period the expenditure is made. It is the Board of Health's policy to follow all Financial Accounting
Standards Board (FASB) standards issued after November 30, 1989.
Deferred revenues arise when grant monies are received prior to the incurrence of qualifying expenditures.
In subsequent periods, when both revenue recognition criteria are met, or when the Board of Health has a
legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and
revenue is recognized.
2) Accounting principles generally accepted in the United States of America require that property and
equipment be capitalized and depreciated. The accompanying financial statements do not conform with
U.S. generally accepted accounting principles in that property and equipment is not capitalized and
depreciated.
3) Individual accounts receivable are written off to bad debt expense in the period in which it is determined
that they are uncollectible. The Board of Health considers accounts receivable to be fully collectible;
accordingly, no allowance for doubtful accounts is required.
4) For purposes of the Statements of Cash Flows, cash equivalents include time deposits and all highly liquid
debt instruments with maturities of three months or less.
5) The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.
2. Budget
The Board of Health does not have tax levying powers and is not required to publish a budget. A budget is adopted
annually by the Governing Board for the purpose of determining appropriations to be requested from Saline County
and the City of Salina. The budget is prepared on the modified accrual basis of accounting.
(6)
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3. Deposits and Investments
Deposits - At December 31, 2005 and 2004, respectively, the carrying amount of the Board of Health's deposits
were $646,668 and $485,257, and the bank balances were $784,094 and $591,906. The differences are
outstanding checks and deposits. In accordance with Kansas statutes, collateral securities were held under joint
custody receipts issued by a third-party bank, which is independent of the depository financial institution, to secure
balances over $100,000. Deposit balances were fully secured by FDIC and joint custody receipts as of December
31, 2005.
4. Appropriations from Taxing Authorities
Saline County and the City of Salina share the net operating costs of the Board of Health. Necessary funds are
included in the tax levies of the respective municipalities, and are summarized by the following schedule:
2005 2004
Saline County, Kansas
Regular tax appropriation $ 576,934 $ 527,410
City of Salina, Kansas
Regular tax appropriation $ 796,362 $ 740,448
5. Grants from the State of Kansas Department of Health and Environment
Agreements were in effect during 2005 and 2004 with the State of Kansas Department of Health and Environment
regarding certain grants which were funded by federal and state monies. Current agreements are for the state's
fiscal year ended June 30, 2006. Unless specifically noted, the grants are payable 25% on or about July 1, and
12.5% on or about October 1, November 15, January 1, February 15, April 1, and May 15. Unexpended grant
amounts are periodically withheld from grant payments. If expenditures for these programs exceed the grant
award, the Board of Health is responsible for the excess. Descriptions of the grants follow:
Federal Programs
Maternal and Child Health Program
Matching funds are provided to furnish comprehensive health care services for mothers and infants,
children and adolescents. The current agreement provides that the Board of Health will receive $79,891.
Family Planning Program
Matching funds are provided to establish and maintain family planning centers to furnish and disseminate
information concerning planned parenthood. The current agreement provides that the Board of Health will
receive $42,274.
Special Supplemental Food Program for Women, Infants, and Children
Reimbursements are provided for administrative costs of the Women, Infants and Children Supplemental
Food Program. The program provides nutritious foods for pregnant and nursing women, infants up to age
1 year, and children up to age 5 years. The current agreement provides that the Board of Health will be
reimbursed monthly for actual expenses up to $264,621, plus any reallocated federal funds that may
become available. This program is on an October 1 through September 30 year-end.
Outreach Clinic Services
Reimbursements are provided for coordination of Cardiac Outreach Clinics at Salina. The current
agreement provides that the Board of Health will be reimbursed quarterly for actual expenses up to an
annual total of $7,800.
HIV Case Management Program
Funds are provided for services performed for new and previously diagnosed HIV positive persons. The
current agreement provides that the Board of Health will receive $45,000.
(7)
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AIDS Health Education/Risk Reduction Program
Funds are provided to identify, coordinate, and provide public information and education regarding
Acquired Immune Deficiency Syndrome. The current agreement provides that the Board of Health will
receive $8,375.
Child Care Licensing Program
Funds are provided for the evaluation, registration, and licensing of homes and/or centers caring for
children. The current agreement provides that the Board of Health will receive $73,000 payable in quarterly
amounts based on number of licenses issued.
Immunization Action Plan
Funds are provided for the implementation of an increased age-appropriate level of immunization for
children aged birth to two years. The current agreement provides that the Board of Health will receive
$11,080.
Breast and Cervical Cancer Screening
Provides cervical and breast cancer screening services to women with no insurance or a high deductible
that has not been met. The current agreement provides that the Board of Health will receive
reimbursement for breast and cervical cancer screenings and diagnostic services that are deemed
reimbursable.
Lead Poisoning Prevention Program
Funds are provided to hire a registered nurse to be the dedicated childhood lead poisoning prevention
nurse to coordinate and implement a screening and blood lead testing program within the county. The
current agreement provides that the Board of Health will receive $20,000.
Bioterrorism Preparedness and Response Program
Funds are provided for the completion of a local emergency preparedness and response inventory and a
submission of a final local bioterrorism preparedness plan. The Agency agrees to be a full participant in
the Health Alert Network. The current agreement provides that the Board of Health will receive $63,888.
Emergency Management
Funds were provided due to presidential disaster declaration for the State of Kansas. The Board of Health
received $9,548.
State Programs
Food Service Licensing Program
Funds are provided for the evaluation, registration, and licensing of food service establishments. The
current agreement provides that the Board of Health will receive 80% of annual licensing fees, payable
monthly.
General Health Services - State Formula Grant
Matching funds are provided to help insure that adequate health services are available to the Saline County
Community. The current agreement provides that the Board of Health will receive $39,901 payable in
quarterly installments.
AIDS Counseling and Testing Site Program
Funds are provided for the counseling and testing of Acquired Immune Deficiency Syndrome. The current
agreement provides that the Board of Health will receive $3,752.
Local Environmental Protection Program
Funds are provided for the development and implementation of the Lincoln, Ellsworth, Ottawa, and Saline
County Sanitary Codes. The current agreement provides that the Board of Health will receive $50,478.
Tuberculosis Control Program
Funds are provided to expand services for people with low income who are not eligible for medicaid, have
no health insurance and no other means of payment for diagnosis and/or treatment of tuberculosis. The
current contract agreement provides that the Board of Health will receive $2,000.
(8)
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The Board of Health periodically receives payments in advance or reimbursements to finance expenditures
incurred in administering the above programs. The following schedules summarize accounts receivable and
deferred income at December 31,2005 and 2004:
December 31,
2005 2004
Accounts Receivable
Special Supplemental Food Program for
Women, Infants, and Children $ 32,030 $ 41,585
Food Service Licensing Program 2,744 7,096
Outreach Clinic Services 1,950 3,600
Lead Poison Prevention 6,748
Immunization Action Plan 1,385
Breast and Cervical Cancer Screening 842
Tuberculosis Control Program 553
Total Accounts Receivable $ 36,724 $ 61 ,809
Deferred Income
HIV Case Management $ 11,250 $ 7,500
General Health Services State Formula Grant 10,054
Child Care License Program 8,816
Local Environmental Protection Program 25,239 25,239
Maternal and Child Health Program 9,986
Total Deferred Income $ 36,489 $ 61,595
6. Home Health Agency
The Board of Health provides services to patients which are reimbursed by third party payers, principally Medicare
and Medicaid. Total fees for services include reimbursements made under the Medicare and Medicaid programs.
7. Defined Benefit Pension Plan
Plan Description: The Board of Health participates in the Kansas Public Employees Retirement System (KPERS), a
cost-sharing multiple-employer defined benefit pension plan as provided by K.S.A. 74-4901, et seq. KPERS provides
retirement benefits, life insurance, disability income benefits and death benefits. Kansas law establishes and amends
benefit provisions. KPERS issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to KPERS, 611 South Kansas, Suite 100, Topeka,
KS 66603-3803 or by calling 1-888-275-5737.
Funding Policy: K.S.A. 74-4919 establishes the KPERS member-employer contribution rate at 4% of covered salary.
The employer collects and remits member-employee contributions according to the provisions of section 414(h) of the
Internal Revenue Code. State law provides that the employer contribution rate be determined annually based on the
results of an annual actuarial valuation. KPERS is funded on an actuarial reserve bases. State law sets a limitation on
annual increases on the contribution rates for KPERS employers. The employer rate established for calendar year
2005 was 4.01 % for January 1, 2005 to June 30,2005 and 4.41 % for July 1, 2005 to December 31,2005. The Board
of Health employer contributions to KPERS for the years ended December 31,2005,2004 and 2003 were $70,960,
$58,991 and $50,710, respectively, equal to the required contributions for each year.
8. Commencing June 14, 2005, the Board of Health updated their copier lease agreement to include additional copiers
and printers. The lease term is 63 months. The lease payment is $1,703 per month. Prior to June 14, 2005, the
lease payment was $1,299 per month. Total rent expense under this lease was $18,192 for the year ending
December 31,2005. Future minimum rental payments required under the lease are as follows:
December 31,2006
December 31,2007
December 31,2008
December 31, 2009
December 31,2010
$
20,796
20,796
20,796
20,796
10,398
9. Compliance with Kansas Statutes
Deposits were not adequately secured for all months of the 2005 calendar year.
(9)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUPPLEMENTAL INFORMATION
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina. Kansas
GRANTS FROM THE KANSAS STATE DEPARTMENT
OF HEALTH AND ENVIRONMENT
Federal Programs
Maternal and Child Health Program
Family Planning Program
Women, Infants, and Children Supplemental Food Program
Outreach Clinic Services
HIV Case Management
Child Care Licensing Program
Immunization Action Plan
Breast and Cervical Cancer Screening
Lead Poisoning Prevention
Bioterrorism Preparedness and Response Program
AIDS Health Education/Risk Reduction Program
Chronic Disease Risk Reduction
Emergency Management Grant
Total Federal Programs
State Programs
Food Service Licensing Program
General Health Services - State Formula Grant
Local Environmental Protection Program
AIDS Counseling and Testing Site Program
West Nile Virus Program
Tuberculosis Control Program
Total State Programs
Total Grants
(10)
Schedule 1
For the Year Ended
December 31 ,
2005 2004
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Title XVIII
Title XIX
Patients and insurance
Home care services
Homemaker services
Family planning services
General nursing clinics
Environmental health fees
Day care provider fees
Senior care fees
Child health assessment fees
Immunizations
Total Fees for Services
SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
FEES FOR SERVICES
(11 )
Schedule 2
$
For the Year Ended
December 31 ,
2005 2004
164,233 $ 133,022
255,820 277,221
37,968 44,599
18,305 17,232
6,364 5,021
48,431 48,374
160,592 189,039
32,674 20,326
8,980 10,449
4,027 5,078
3,797 3,525
37,019 40,691
778,210 $ 794,577
$
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SINGLE AUDIT SECTION
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CLUBlNE&
RETIELE
CHARfERED
Certified Public Accountants
rll
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
Stacy J. Sokol, C.P.A.
Marci K. Fox, C.P.A.
Delores K. Longenecker, C.P.A.
John T. Millikin, C.P.A.
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
Salina Fax
785 / 825-2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas
We have audited the accompanying financial statements of Salina-Saline County Board of
Health, as of and for the years ended December 31,2005 and 2004 and have issued our
report thereon dated May 31,2006. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America, the standards applicable to
Government Auditing Standards, issued by the Comptroller General of the United States
and the Kansas Municipal Audit Guide, prescribed by the Director of Accounts and
Reports, Department of the Administration of the State of Kansas.
Internal Control Over Financial Reportinq
In planning and performing our audit, we considered Salina-Saline County Board of
Health's internal control over financial reporting in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements and not
to provide an opinion on the internal control over financial reporting. Our consideration of
the internal control over financial reporting would not necessarily disclose all matters in the
internal control over financial reporting that might be material weaknesses. A material
weakness is a reportable condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that
misstatements caused by error or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operation that we
consider to be material weaknesses. However, we noted other matters involving the
internal control over financial reporting that we have reported to management of Salina-
Saline County Board of Health in a separate letter dated May 31 , 2006.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Salina-Saline County Board of
Health's financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance that are required
to be reported under Government Auditing Standards.
This report is intended for the information and use of the governing board, management,
others within the organization and federal awarding agencies and pass-through entities,
and is not intended to be and should not be used by anyone other than these specified
parties
Respectfully submitted,
t~MaJ( ~
CLUBINE AND RETTELE, CHARTERED
May 31,2006
(12)
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CLUBlNE&
RElTELE
CHARfERED
Certified Public Accountants
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Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
Stacy J. Sokol, C.P.A.
Marci K. Fox, C.P.A.
Delores K. Longenecker, C.PA
John T. Millikin, C.PA
Linda A. Suelter, C.PA
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
Salina Fax
785 / 825-2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OMB CIRCULAR A-133
To the Governing Board
Salina-Saline County Board of Health
Salina, Kansas
Compliance
We have audited the compliance of the Salina-Saline County Board of Health with the
types of compliance requirements described in the U.S. Office of Management and Budget
(OMB) Circular A-133 Compliance Supplement that are applicable to each of its major
federal programs for the year ended December 31,2005. Salina-Saline County Board of
Health's major federal programs are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major
federal programs is the responsibility of Salina-Saline County Board of Health's
management. Our responsibility is to express an opinion on Salina-Saline County Board of
Health's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the
United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations. Those standards and OMB Circular A-133 require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about Salina-Saline County Board of Health's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination on Salina-Saline County Board of Health's
compliance with those requirements.
In our opinion, Salina-Saline County Board of Health complied, in all material respects, with
the requirements referred to above that are applicable to each of its major federal
programs for the year ended December 31,2005.
Internal Control Over Compliance
The management of Salina-Saline County Board of Health is responsible for establishing
and maintaining effective internal control over compliance with requirements of laws,
regulations, contracts and grants applicable to federal programs. In planning and
performing our audit, we considered Salina-Saline County Board of Health's internal control
over compliance with requirements that could have a direct and material effect on a major
federal program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control over
compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is
a reportable condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that noncompliance with
applicable requirements of laws, regulations, contracts and grants caused by error or fraud
that would be material in relation to a major federal program being audited may occur and
not be detected within a timely period by employees in the normal course of performing
their assigned functions. We noted no matters involving the internal control over
compliance and its operation that we consider to be material weaknesses.
(13)
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This report is intended for the information and use of the governing board, management, others within the organization
and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone
other than these specified parties.
Respectfully submitted,
~TT~A~~
May 31,2006
(14)
I SALINA-SALINE COUNTY BOARD OF HEAL TH
Salina, Kansas
I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2005
I Federal
CFDA Federal
Federal Grantor/Pass-Through Grantor/Program Title Number Expenditures
I U.S. Department of Aqriculture
Passed Through State of Kansas Department of Health and Environment
I Special Supplemental Nutrition Program for Women, Infants,
and Children - 04/05 10.557 $ 150,246
Special Supplemental Nutrition Program for Women, Infants,
and Children - 05/06 10.557 154,721
I U.S. Department of Health and Human Services
I Passed Through State of Kansas Department of Health and Environment
Maternal and Child Health Services Block Grant
Salina Outreach Clinic Services - 04/05 93.994 7,200
I Salina Outreach Clinic Services - 05/06 93.994 3,900
Maternal and Child Health - 04/05 93.994 39,945
Maternal and Child Health - 05/06 93.994 39,946
I Family Planning - Services
04/05 93.217 15,563
05/06 93.217 21,137
I Immunization Action Plan
04/05 93.268 10,081
05/06 93.268 5,540
I Acquired Immunodeficiency Syndrome (AIDS) Activity
Aids/HERR - 04/05 93.118 3,078
Aids/HERR - 05/06 93.118 4,188
I HIV Case Management - 04/05 93.917 29,521
HIV Case Management - 05/06 93.917 22,500
Child Welfare Services
I Child Care Institutions Licensing - 04/05 93.596 32,294
Child Care Institutions Licensing - 05/06 93.596 39,195
I Breast and Cervical Cancer Screening
Breast and Cervical Cancer Screenings - 04/05 93.919 2,635
Breast and Cervical Cancer Screenings - 05/06 93.919 127
I Lead Poisoning Prevention
04/05 66.707 7,607
05/06 66.707 8,177
I Tobacco Prevention
Bioterrorism Preparedness and Response Program - 04/05 93.283 31,715
Bioterrorism Preparedness and Response Program - 05/06 93.283 31,944
I Emergency Management
Public Assistance - 2005 97.036 9,548
Total $ 670,808
I The accompanying notes are an integral part
of these financial statements.
I (15)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31,2005
1.
Basis of Presentation
The accompanying schedule of expenditures of federal awards includes federal grant activity of Salina-Saline
County Board of Health and is presented on the modified accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations.
2.
Subrecipients
Of the federal expenditures presented in the schedule, Salina-Saline County Board of Health provided federal
awards to subrecipients as follows:
Federal Program
Amount
Provided to
CFDA Number Subrecipients
Special Supplemental Food Program for
Women, Infants and Children
10.557 $ 70,195
(16)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31,2005
Summary of Auditor's Results
Financial Statements
Type of auditor's report issued:
Qualified
Internal control over financial reporting:
Material weakness(es) identified
No
Reportable condition(s) identified that are
not considered to be material weaknesses?
None reported
Noncompliance material to financial statements noted?
No
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
No
Reportable condition(s) identified that are
not considered to be material weakness(es)
None reported
Type of auditor's report issued on compliance for major programs:
Unqualified
Any audit findings disclosed that are required to be reported
in accordance with section 510(a) of Circular A-133?
No
Identification of Maior proqrams:
10.557
Special Supplemental Food Program
for Women, Infants and Children
Dollar threshold used to distinguish between type A
and type B programs:
$ 300,000
Auditee qualified as low-risk auditee:
Yes
Section II - Financial Statement Findinqs:
None
Section III - Federal Award Findinqs and Questioned Costs:
None
(17)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
CORRECTIVE ACTION PLAN
For the Year Ended December 31,2005
None required.
(18)
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SALINA-SALINE COUNTY BOARD OF HEALTH
Salina, Kansas
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended December 31,2005
There are no prior audit findings.
(19)