Audit - 2004 (outside agency)
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
For the Year Ended December 31, 2004
CLUBINE AND RETTELE, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALINA, KANSAS
SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
INDEX
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
2-4
STATEMENTS OF REVENUE AND ALLOWABLE EXPENSES UNDER
AGREEMENT WITH THE CITY OF SALINA TO PROVIDE CONVENTION
AND TOURISM SERVICES
5-6
NOTES TO FINANCIAL STATEMENTS
7-8
CLUBlNE&
RETTELE
CHARfERED
Certified Public Acrounrants
v
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K Bell, C.PA
Leslie M. Corbett, C.P.A
Stacy J. Sokol, C.P.A.
Marci K Fox, C.PA
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
785/827-1188
Ellsworth
785 / 472-3915
INDEPENDENT AUDITORS' REPORT
To: The Board of Directors
Salina Area Chamber of Commerce, Inc.
Salina, Kansas
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,
2004, 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 are the responsibility of the
Chamber's management. Our responsibility is to express an opinion on these statements
based on our audit. The prior year financial statements were audited by other auditors.
Those auditors expressed an unqualified opinion on the statements of revenue and
allowable expenses in their report dated March 25, 2004.
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 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 audit provides 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
year ended December 31, 2004, pursuant to the agreements referred to in Notes 2 and 3
in conformity with accounting principles generally accepted in the United States of
America.
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 R~ARTERED
~ ~~
March 7, 2005
(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.
2004 2003
Revenue
City of Salina $ 85,000 $ 85,000
Saline County 15,000 15,000
Salina Airport Authority 20,000 20,000
Total Revenue $ 120,000 $ 120,000
Allowable Expenses
Program expenses (Schedule 1A) $ 63,730 $ 67,700
Administrative and general expenses (Schedule 2A) 31,863 29,519
Staff expenses (Schedule 3A) 291,763 302,497
Building operation expenses (Schedule 4A) 33,660 33,473
Total Allowable Expenses 421,016 433,189
Excess of Allowable Expenses Over Revenue $ (301,016) $ (313,189)
SEE THE ACCOMPANY NOTES TO THE FINANCIAL STATEMENTS
WHICH ARE AN INTEGRAL PART HEREOF.
(2)
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,
2004 2003
Schedule 1 A - Allowable Program Expenses
New industry development $ 19,814 $ 27,010
New industry advertising 21,283 20,489
Existing industry development 8,002 2,790
Commercial development 1,675 3,500
Workforce development 1,066 3,352
Assessments 3,537 157
STC 491 1,152
Special events 2,533
1-Stop supplies and travel 5,329 9,200
Jobs Fair 50
Total Allowable Program Expenses $ 63,730 $ 67,700
Schedule 2A - Allowable Administrative and General Expenses
Legal and accounting $ 1,528 $ 1,496
Travel expense 6,372 5,891
Office supplies 7,374 5,988
Postage 3,198 1,830
Communications 3,103 3,039
Computer services 3,716 2,428
Equipment services 3,975 3,891
Dues and subscriptions 1,399 3,076
Insurance 1,028 947
Contingency fund 170 932
Total Allowable Administrative and General Expenses $ 31,863 $ 29,518
Schedule 3A - Allowable Staff Expenses
Salaries $ 220,837 $ 228,023
Payroll taxes 15,695 15,517
Group medical insurance 35,428 43,654
Retirement 12,227 10,492
Group life insurance 633 803
Cafeteria plan 362 367
Unemployment tax 2,924 857
Workers compensation insurance 1,061 637
Professional development 2,596 2,147
Total Allowable Staff Expenses $ 291,763 $ 302,497
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
(Continued)
For the Year Ended
December 31,
2004 2003
Schedule 4A -Allowable Building Operation Expenses
Property insurance
Utilities
Taxes
Equipment maintenance
Maintenance and janitorial
Depreciation
Total Allowable Building Operation Expenses
$
2,605 $
4,122
6,448
$
6,488
13,997
33,660 $
SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS
WHICH ARE AN INTEGRAL PART HEREOF.
(4)
2,828
4,245
5,535
6,868
13,997
33,473
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
December 31,
2004 2003
Revenue
City of Salina
$
490,637 $
460,000
Allowable Expenses
Program expenses (Schedule 1 B)
Administrative and general expenses (Schedule 2B)
Staff expenses (Schedule 3B)
Building operation expenses (Schedule 4B)
Total Allowable Expenses
229,973
26,657
225,283
25,245
507,158
225,065
24,991
205,942
25,104
481,102
Excess of Allowable Expenses Over Revenue
$
(16,521) $
(21,102)
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
For the Year Ended
December 31,
2004 2003
Schedule 1 B - Allowable Program Expenses
Signage $ 14,657 $ 16,600
Advertising 25,726 19,915
Convention marketing 10,471 1 0,231
Convention services 13,203 14,680
Tourism marketing 31,036 39,031
Sports 125,097 117,408
Special projects 9,783 7,200
Total Allowable Program Expenses $ 229,973 $ 225,065
Schedule 2B - Allowable Administration and General Expenses
Legal and accounting $ 1,145 $ 1,122
Travel expense 7,776 6,452
Office supplies 5,598 4,490
Postage 2,399 1,373
Communications 2,236 2,048
Computer services 2,624 1,821
Equipment services 2,981 2,919
Dues and subscriptions 999 3,342
Insurance 771 710
Miscellaneous 128 714
Total Allowable Administration and General Expenses $ 26,657 $ 24,991
Schedule 3B - Allowable Staff Expenses
Salaries $ 166,626 $ 152,832
Contract labor
Payroll tax 11,807 11,036
Group medical insurance 29,524 26,746
Retirement 10,242 9,946
Group life insurance 796 760
Cafeteria plan 345 290
Unemployment tax 2,345 662
Workers compensation insurance 735 477
Professional development 2,863 3,192
Total Allowable Staff Expenses $ 225,283 $ 205,941
Schedule 4B - Allowable Building Operation Expenses
Property insurance $ 1,954 $ 2,121
Utilities 3,091 3,184
Taxes 4,836 4,151
Equipment maintenance
Maintenance and janitorial 4,866 5,151
Depreciation 10,498 10,497
Total Allowable Building Operation Expenses $ 25,245 $ 25,104
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, 2004 and 2003
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 accounting 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 an agreement 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 agreement.
Under this agreement the City makes quarterly contributions to the Chamber of a portion of the proceeds of the
local transient guest tax levied on hotel and motel guests.
[7)
4. Subsequent Events
Management of the Chamber and City of Salina met on March 29, 2005 in regard to transient guest tax collected
in 2004 that was in excess of the budgeted amount. As a result of that meeting, the Chamber will amend it's
2005 budget to include the excess transient guest tax, resulting in an amended budget item of $510,000 versus
the original $483,465.
(8)