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Audit - 2004/2005 CLUBlNE& RETIELE GIARTERED Cercified Public Accountants fTl Robert 1. Clubine, C.PA David A. Rettele, C.PA Jay D. Langley, C.PA Jon K. Bell, C.PA Leslie M. Corbett, C.PA Stacy J. Sokol, C.PA Marci K. Fox, C.PA Delores K. Longenecker, c.P.A. John 1. 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 March 15,2006 To the Board of Directors Salina Area Chamber of Commerce, Inc. Salina, Kansas In planning and performing our audit of the [mancial statements of Salina Area Chamber of Commerce, Inc., for the years ended December 31, 2005 and 2004, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the [mancial statements and not to provide assurance on the internal control structure. However, we noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. A reportable condition involves matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure, that in our judgment, could adversely affect the organization's ability to record, process, summarize and report [mancial data consistent with the assertions of management in the financial statements. Our consideration of the internal control structure was for the limited purpose described in the preceding paragraph and would not necessarily disclose all matters that might be reportable conditions. In addition, because of the inherent limitations of any internal control structure, errors or irregularities may occur and not be detected by such control structures. The reportable condition noted in our audit consists of the lack of segregation of duties available for the accounting functions. This condition is due to the small size of the office staff. The benefits which may be achieved by correcting this situation must be weighed against the cost of implementing those changes. This condition is not unusual in small organizations and should not be alarming. The active participation of the Board and the Treasurer and the assignments of duties among the office personnel help alleviate the problems existing with a small office staff. We also noted that deposits held with depository institutions exceeded F.D.I.C insurance coverage by $2,686. We found the records to be well maintained and wish to thank The Board of Directors for the opportunity to work with Salina Area Chamber of Commerce, Inc. We also wish to thank Sandy Cole for her help in assisting us with the audit. Please feel free to call with any questions or concerns you may have. This report is intended solely for the use of management, the Board of Directors, and others within the organization. Respectfully submitted, ay D. Langley Certified Public Accountant Clubine & Rettele, Chartered CLUBlNE& RETIELE CHARTERED Certified Public Accountants crll 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. Linda A. Suelter, C.P.A. John T. Millikin, 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 March 15, 2006 Board of Directors/Audit Committee Salina Area Chamber of Commerce, Inc. We have audited the financial statements of Salina Area Chamber of Commerce, Inc. for the year ended December 31, 2005, and have issued our report thereon dated March 15, 2006. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under U.S. Generally Accepted AuditinQ Standards As stated in our engagement letter dated June 9, 2004, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with U.S. generally accepted accounting principles. Because an audit is designed to provide reasonable, but not absolute, assurance and because we did not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us. As part of our audit, we considered the internal control of Salina Area Chamber of Commerce, Inc.. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. Siqnificant Accountinq Policies Management has the responsibility for selection.and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by Salina Area Chamber of Commerce, Inc. are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the calendar year ended December 31, 2005. We noted no transactions entered into by the Organization during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Audit Adjustments For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements that, in our judgment, may not have been detected except through our auditing procedures. An audit adjustment mayor may not indicate matters that could have a significant effect on the Organization's financial reporting process (that is, cause future financial statements to be materially misstated). In our judgment, none of the adjustments we proposed, whether recorded or unrecorded by the Organization, either individually or in the aggregate, indicate matters that could have a significant effect on the Organization's financial reporting process. Di;;aqreements with Manaqement For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle in the Organization's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Organization's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performinq the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. This information is intended solely for the use of the Audit Committee, Board of Directors and management of Salina Area Chamber of Commerce, Inc. and is not intended to be and should not be used by anyone other than these specified parties. Sincerely, Y D. Langley Certified Public Accountant SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31,2005 and 2004 CLUBINE AND RETTELE, CHARTERED CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT 1 STATEMENTS OF FINANCIAL POSITION - Exhibit I STATEMENTS OF ACTIVITIES - Exhibit II 2 3 STATEMENTS OF CASH FLOWS - Exhibit III 4 STATEMENT OF FUNCTIONAL EXPENSES - Exhibit IV NOTES TO FINANCIAL STATEMENTS SCHEDULES OF PROGRAM REVENUES SCHEDULES OF DIRECT PROGRAM EXPENSES SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES 5 6-8 9 1 0-11 12-14 15-16 CLUBlNE& RETTELE CHARIERED CertifltCl Public Aaountantl crll 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 Board of Directors Salina Area Chamber of Commerce, Inc. Salina, Kansas We have audited the accompanying statements of financial position of the Salina Area Chamber of Commerce, Inc. (a nonprofit organization) as of December 31, 2005, and 2004, and the related statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the Organization's management. 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 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 audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Salina Area Chamber of Commerce, Inc. as of December 31, 2005 and 2004, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information contained in pages 9 through 16 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information 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. CLUBINE AND RETT~H~RTERED ~~\~ March 15, 2006 (1 ) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit I STATEMENTS OF FINANCIAL POSITION For the Year Ended December 31, 2005 2004 ASSETS 831.178 $ 894,714 83,019 53,556 41.682 154,629 671,694 697,933 100,000 100,000 1.727,573 $ 1,900,832 Cash and cash equivalents Accounts receivable Prepaid expenses Land, building and equipment, net (Note 2) Investment land at market value (Note 3) $ Total Assets $ LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 112,677 $ 113,432 Accrued taxes and other liabilities 27,632 25,470 Dues collected in advance 151,859 146,765 Program income collected in advance 124,448 168,550 Total Liabilities 416,616 454,217 Net Assets Unrestricted Net Assets Designated for fixed assets 771,694 797,933 Designated for economic development 61,970 200,000 Designated for convention and tourism 62,868 Undesignated 414,425 448,682 Total Unrestricted Net AssetsfTotal Net Assets 1,310,957 1,446,615 Total Liabilities and Net Assets $ 1,727,573 $ 1,900,832 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (2) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit \I STATEMENTS OF ACTIVITIES For the Year Ended December 31, 2005 2004 Revenues Membership dues $ 317,863 $ 311,784 Program revenue 291,950 422,692 Economic development contributions 120,000 120,000 Convention and tourism contract 671,937 490,637 Facility rental 5,850 6,685 Interest 11,833 10,939 Miscellaneous 15.478 14,732 Total Revenues 1.434,911 1,377.469 Expenses Program Services Agriculture 55,529 52,595 Community development 5,799 9,739 Internal affairs 204,109 192,663 Economic development 161,726 63,730 Convention and tourism 267,771 229,973 Total Program Services 694,934 548,700 Supporting Services Administrative and general expenses 90,546 92,767 Staff expenses 702,913 690,138 Building operation expenses 82,176 84,142 Total Supporting Services 875,635 867,047 Total Expenses 1,570,569 1.415,747 Change in Unrestricted Net Assets (135,658) (38,278) Unrestricted Net Assets, Beginning of Year 1.446,615 1.484,893 Unrestricted Net Assets, End of Year $ 1,310,957 $ 1.446,615 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (3) SALINA AREA CHAMBER OF COMMERCE. INC. Salina, Kansas Exhibit III STATEMENTS OF CASH FLOWS For the Year Ended December 31. 2005 2004 Cash Flows From Operating Activities Cash received from dues and projects $ 692,547 $ 713,016 Cash received from government entities 679,740 610,637 Cash received from other operating activities 21.328 21,417 I nterest received 11,833 10,939 Cash paid to employees and suppliers (1,465.048) (1,462.632) Net Cash Used by Operating Activities (59.600) (106.623) Net Cash Used by Investing Activities Purchase of equipment (3.936) (34.964) Net Decrease in Cash and Cash Equivalents (63.536) (141,587) Cash and Cash Equivalents at Beginning of Year 894,714 1,036,301 Cash and Cash Equivalents at End of Year $ 831.178 $ 894,714 RECONCILIATION OF DECREASE IN NET ASSETS TO NET CASH USED BY OPERATING ACTIVITIES Decrease in net assets $ (135.658) $ (38.278) Adjustments to reconcile decrease in net assets to net cash used by operating activities Depreciation Increase in accounts receivable Decrease (Increase) in prepaid expenses Increase in accounts payable and accrued expenses Decrease in income collected in advance Total Adjustments Net Cash Used by Operating Activities 30.175 34.992 (29,463) (21,460) 112.947 (72,642) 1 ,407 7,672 (39.008) (16.907) 76,058 (68.345) $ (59,600) $ (106.623) SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (4) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit IV STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2005 with Comparitive Totals for 2004 Economic Total Total Develop- Convention Expenses Expenses Chamber ment Tourism 2005 2004 Direct Program Expenses $265,437 $161,726 $ 267,771 $ 694,934 $ 548,700 Administrative and General Expenses Legal and accounting 2,401 1,111 2,340 5,852 3,819 Travel expense 8,952 4,751 8,291 21,994 20,634 Office supplies 7,563 3,684 7,278 18,525 18,508 Postage 2,442 1,481 2,332 6,255 7,996 Communications 2,735 1,429 3,119 7,283 7,375 Computer services 1,765 883 1,716 4,364 8,964 Equipment services 3,225 1,520 3,117 7,862 9,937 Dues and subscriptions 6,542 1,775 1,603 9,920 8,983 Insurance 1,021 466 985 2,472 2,570 Contingency fund 5,794 71 154 6,019 3,981 Total Administrative and General Expenses 42,440 17,171 30,935 90,546 92,767 Staff Expenses Salaries 129,992 186,126 201,667 517,785 516,737 Contract labor 9 Payroll taxes 8,960 12,722 14,097 35,779 36,558 Group medical insurance 24,945 37,964 44,087 106,996 85,583 Retirement 8,486 8,943 11,706 29,135 31,020 Group life insurance 352 269 1,116 1,737 1,742 Cafeteria plan 211 246 328 785 940 Unemployment tax 797 1,185 1,616 3,598 6,426 Workers compensation insurance 648 881 928 2,457 2,458 Professional development 1,738 1,031 1,871 4,640 8,665 Total Staff Expenses 176,129 249,367 277,416 702,912 690,138 Building Operation Expenses Property insurance 2,743 1,250 2,643 6,636 6,513 Utilities 4,587 2,377 4,446 11,410 10,304 Taxes 6,827 3,186 6,580 16,593 16,120 Maintenance and janitorial 7,011 3,538 6,813 17,362 16,212 Depreciation 12,984 4,726 12,465 30,175 34,993 Total Building Operation Expenses 34,152 15,077 32,947 82,176 84,142 Total Expenses $518,158 $443,341 $ 609,069 $ 1,570,569 $ 1,415,747 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (5) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 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. Net Assets Salina Area Chamber of Commerce, Inc. has adopted Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. SFAS No. 117 establishes standards for external financial reporting by not-for-profit organizations and requires that resources be classified for accounting and reporting purposes into three net asset categories according to externally (donor) imposed restrictions. The Chamber has no restricted net assets and therefore all net assets are classified as unrestricted. The Chamber has established a policy of dividing unrestricted net assets into four components: designated for fixed assets, designated for economic development, designated for convention and tourism and undesignated. Unrestricted net assets designated for fixed assets is an amount equal to the Chamber's investment in building, furniture, fixtures, equipment, land improvements and land less accumulated depreciation. Unrestricted net assets designated for economic development is an arbitrary amount the Board of Directors has designated for economic development projects. Unrestricted net assets designated for convention and tourism is the excess income over expenditures of the convention and tourism program. Unrestricted net assets in excess of that designated for fixed assets and economic development are undesignated. E. Cash and Cash Equivalents For the purpose of the cash flows statement, the Chamber considers all short-term investment securities purchased with a maturity of three months or less to be cash equivalents. The Chamber maintains checking, certificate of deposit, and deposits under repurchase agreements with nine financial institutions in Salina, Kansas. The amount not covered by F.D.I.C. insurance totaled $242,686. Of the $242,686, $240,000 was held under repurchase agreements at Sunflower Bank and is secured by direct or indirect obligations of the United States Government. With the exception of the aforementioned deposits under repurchase agreement, accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $100,000, leaving $2,686 uninsured. F. Accounts Receivable Accounts receivable are considered to be fully collectible. Accordingly, the allowance for doubtful accounts is zero. G. Inventories Purchases of supplies that might be considered as inventory are expensed when purchased. Actual amounts on hand are considered immaterial. (6) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,2005 and 2004 H. Membership Dues Membership dues are recognized as revenue in the year in which the dues are earned. The Chamber bills dues in December for the coming membership year, consequently a significant amount of dues are collected in advance and recorded as dues collected in advance in the financial statements. I. 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. J. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the use of management's estimates. K. Products and services received in payment of dues are recorded at estimated market value by the Chamber. 2. Land, Building and Equipment Land, Building and Equipment can be summarized as follows: Land, Building and Equipment Buildings Furniture, fixtures and equipment Land improvements Land $ 2005 2004 633,538 $ 633,538 318,522 314,233 15,280 15,280 192,691 192,691 1,160,031 1,155,742 (488,337) (457,810J 671,694 $ 697,933 Less: Accumulated depreciation Total Land, Building and Equipment (net) $ 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. 3. Investment Land The Chamber recorded land purchased May 31, 1985 at its cost of $335,382 and also land purchased for $25,000 in 1997. In 1987, the Chamber constructed the building now serving as the Chamber's office on the west one-half of that land. The remaining one-half of the land was recorded as "Investment land" and is not currently an integral part of Chamber operations. 4. Agreement 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. In 2004, the chamber designated $200,000 of their undesignated funds for economic development programs. $138,030 was expended in 2005 for these programs, leaving a 'net asset designated for economic development balance of $61,970. These expenses were the primary component in the overall decrease in net assets for the year. (7) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,2005 and 2004 5. Agreement 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 recommend to the Chamber, programs in connection with this agreement. Under this agreement the City makes contributions to the Chamber of a portion of the proceeds of the local transient guest tax levied on hotel and motel guests. The Chamber board has designated 2005 excess income over expenditures in the amount of $62,868 as a reserved net asset for convention and tourism. 6. Retirement Plan The Chamber has established a defined contribution retirement plan covering substantially all qualified employees. Qualified employees are at least 21 years of age and have completed one year of service. Contributions are made by the Chamber equal to 6% of eligible compensation. The total expense under the plan was $29,135 and $31,020 for the years ended December 31,2005 and 2004, respectively. 7. Compensated Absences The Chamber grants annual paid vacations to its full time employees based on the following schedule: Years of Service 1-9 10 or more Annual Vacation Allowance 10 days 15 days Vacation days earned must be used within one year and do not accumulate. 8. The Chamber leases three automobiles used in its operations. Total lease expense for the year ended December. 31, 2005 is $13,860. The following is a schedule of future minimum lease payments required under these operating leases as of December 31, 2005: Year Ended December 31, 2006 $ 2007 2008 Subsequent to 2008 13,951 8,338 1.774 (8) SUPPLEMENTAL INFORMATION SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF PROGRAM REVENUES For the Year Ended December 31, 2005 2004 Program Revenues Farm show Dairy show Leadership Salina Legislative action Membership meetings Chamber - Net Annual meeting Assessments 1-Stop administration Case work Business services Grant services SJBB 4A Football, baseball, softball Discover the Crossroads Magazine Special functions $ 82,555 $ 15,191 7,500 1,200 9,971 6,730 133,260 2,715 3,600 21,070 8,158 Total Program Revenues $ 291,950 $ (9) 87,725 15,351 7,500. 1,200 9,118 5,470 117,540 215 19,954 20,085 10,000 30,605 64,707 21,217 20 11,985 422,692 SALINA AREA CHAMBER OF COMMERCE. INC. Salina. Kansas SCHEDULES OF DIRECT PROGRAM EXPENSES For the Year Ended December 31. 2005 2004 Chamber Direct Program Expenses Agriculture Farm show Agriculture development Dairy show Total Agriculture Direct Program Expenses Community Development All American team Arts Education Leadership Salina Transportation Total Community Development Direct Program Expenses Internal Affairs Ambassadors Membership retention Membership services Plans and directors Communication and image Chamber - Net Legilative action Membership meetings Annual meeting Total Internal Affairs Direct Program Expenses Total Chamber Direct Program Expenses Economic Development Program Expenses New Industry development New industry advertising Existing industry development Commercial development Regional assessment Assessments STC Special events 1-Stop supplies and travel Business development Seminars Case management Total Economic Development Direct Program Expenses $ 37.702 $ 3,019 14,808 55,529 34,137 2,975 15,483 52,595 10 42 787 1,893 6,992 25 9,739 5,789 5,799 5,376 5,014 1,828 17,486 5,936 6,428 14,494 147.547 204,109 265,437 6,372 229 4,767 2,581 18,804 6,525 7.518 6,842 139,026 192,663 254,997 25,625 13,458 13,847 3,269 98,572 711 250 19,814 21.283 8,002 1,675 889 5,105 3.537 491 2,533 4,740 1,066 589 63,730 161.726 (10) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF DIRECT PROGRAM EXPENSES (Continued) For the Year Ended December 31, 2005 2004 Convention and Tourism Direct Program Expenses Signage Advertising Convention marketing Convention services Tourism marketing 1-70 Association T .I.A.K. Market place Regional marketing Magazine - Discover the Crossroads KATT Global Flyer City tour brochure sports and special events SJBB women's basketball 4-A basketball, football, baseball, softball ASA softball 5-A baseball/softball Revion VI Smoky Hill River Festival CVD organization dues Calendar of Events Total Convention and Tourism Direct Program Expenses 15,447 14,657 13,362 25,726 13,487 10,471 23,576 13,203 20,242 21.722 90 48 1,117 1,500 317 2,450 1,250 1,207 658 958 852 3,151 20,016 7,213 14,821 19,888 71,585 76,073 46,451 3,230 3,000 3,075 19,331 3,500 3,500 5,000 5,000 3,387 2,383 2,400 2,400 267,771 229,973 Total Direct Program Expenses $ 694,934 $ 548.700 (11) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND 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, 2005 2004 Revenues City of Salina $ 85,000 $ 85,000 Saline County 15,000 15,000 Salina Airport Authority 20,000 20,000 Total Revenues $ 120,000 $ 120,000 Expenses Program expenses (Schedule 1A) Administrative and general expenses (Schedule 2A) Staff expenses (Schedule 3A) Building operation expenses (Schedule 4A) Total Expenses $ 161,726 $ 63,730 17,171 31,863 249,367 291,763 15,077 33,660 443,341 $ 421,016 $ (12) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES Schedule 1A - Program Expenses New industry development New industry advertising Existing industry development Commercial development Regional assessment Assessments STC Workforce development Special events 1-Stop supplies and travel Seminars Total Program Expenses Schedule 2A - Administrative and General Expenses Legal and accounting Travel expense Office supplies Postage Communications Computer services Equipment services Dues and subscriptions Insurance Contigency fund Total Administrative and General Expenses Schedule 3A - Staff Expenses Salaries Payroll taxes Group medical insurance Retirement Group life insurance Cafeteria plan Unemployment tax Workers compensation insurance Professional development Total Staff Expenses $ $ $ $ $ $ (13) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND 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, 2005 2004 Schedule 4A -Building Operation Expenses Property insurance Utilities Taxes Maintenance and janitorial Depreciation Total Building Operation Expenses $ 1,250 $ 2,378 3.185 3,538 4,726 15,077 $ 2,605 4,122 6,448 6,488 13,997 33,660 $ (14) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES For the Year Ended December 31, 2005 2004 Revenues City of Salina SJBB 4A Football, baseball, softball Special functions Total Revenues $ 559,740 $ 490,637 58,139 48,214 5,844 671,937 $ 490,637 $ Expenses Program expenses (Schedule 1 B) $ 267,771 $ 229,973 Administrative and general expenses (Schedule 2B) 30,935 26,657 Staff expenses (Schedule 3B) 277,416 225,283 Building operation expenses (Schedule 4B) 32,947 25,245 Total Expenses $ 609,069 $ 507,158 (15) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES For the Year Ended December 31, 2005 2004 Schedule 1 B - Program Expenses Signage $ 15,447 $ 14,657 Advertising 13,362 25,726 Convention marketing 13,487 10,471 Convention services 23,576 13,203 Tourism marketing 51,755 31,036 Sports 139,357 125,097 Special projects 10,787 9,783 Total Program Expenses $ 267,771 $ 229,973 Schedule 2B - Administration and General Expenses Legal and accounting $ 2,340 $ 1,145 Travel expense 8,291 7,776 Office supplies 7,278 5,598 Postage 2,332 2,399 Communications 3,119 2,236 Computer services 1,716 2,624 Equipment services 3,117 2,981 Dues and subscriptions 1,603 999 Insurance 985 771 Contingency fund 154 128 Total Administration and General Expenses $ 30,935 $ 26,657 Schedule 3B - Staff Expenses Salaries $ 201,667 $ 166,626 Payroll tax 14,097 11,807 Group medical insurance 44,087 29,524 Retirement 11,706 10,242 Group life insurance 1,116 796 Cafeteria plan 328 345 Unemployment tax 1,616 2,345 Workers compensation insurance 928 735 Professional development 1,871 2,863 Total Staff Expenses $ 277,416 $ 225,283 Schedule 4B - Building Operation Expenses Property insurance $ 2,643 $ 1,954 Utilities 4,446 3,091 Taxes 6,580 4,836 Maintenance and janitorial 6,814 4,866 Depreciation 12,464 10,498 Total Building Operation Expenses $ 32,947 $ 25,245 (16)