Audit - 2001/2002
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SALINA AREA CHAMBER OF COMMERCE, INe.
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, 2002 and 2001
HARRISON & ARNETT, CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
SALINA, KANSAS
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SALINA AREA CHAMBER OF COMMERCE, INe.
Salina, Kansas
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
Page
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STATEMENTS OF REVENUE AND ALLOW ABLE 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
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HARRISON & ARNETT
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CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
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EUGENE O. HARRISON, C.P.A.
THOMAS G. ARNETT, C.PA
717 ROACH STREET . SALINA, KANSAS 67401
PHONE: (785) 827-7244
FAX: (785) 827-0048
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INDEPENDENT AUDITORS' REPORT
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To: The Board of Directors
Salina Area Chamber of Commerce, Inc.
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We have audited the accompanying: 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 of the Salina Area Chamber of Commerce, Inc. (a
nonprofit organization) as of December 31, 2002 and 2001. These statements are the responsibility of
the Chamber's management. Our responsibility is to express an opinion on these statements based on
our audit.
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We conducted our audits 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 audits provide a reasonable basis for our opinion.
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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.
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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, 2002 and 2001, 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.
HARRISON & ARNETT, CHARTERED
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March 13,2003
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MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
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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
Allowable Expenses
Program expenses (Schedule lA)
Administrative and general expenses (Schedule 2A)
Staff expenses (Schedule 3A)
Building operation expenses (Schedule 4A)
F or the Year Ended
December 3 1 ,
2002 2001
$ 85,000 $ 85,000
15,000 15,000
20,000 20,000
120,000 120,000
61,611 106,790
41,457 28,445
310,071 175,270
28,855 29,133
441,994 339,638
$ (321,994) $ (219,638)
Revenue
City of Salina
Saline County
Salina Airport Authority
Total Revenue
Total Allowable Expenses
Excess of Allowable Expenses Over Revenue
The accompanying notes are an integral part of these financial statements.
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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
F or the Year Ended
December 3 1 ,
2002 2001
Schedule 1A - Allowable Program Expenses
New industry development $ 12,900 $ 28,292
New industry advertising 25,802 15,878
Existing industry development 499 1,399
Regional marketing 1,676
Seminars 19,335
SSBDC expenses 11 ,441
Miscellaneous 8,483
Assessments 4,720 1,074
STC 688
Grants 395
I-Stop supplies and travel 3,057
Special events 152 5
Business development 1,957 1,052
Transfer to SBDC 29,596
Total Allowable Program Expenses $ 61,611 $ 106,790
Schedule 2A - Allowable Administrative and General Expenses
Legal and accounting $ 3,578 $ 2,211
Automobile expense 5,555 4,957
Office supplies 7,165 7,853
Postage 9,163 4,675
Communications 2,638 3,695
Computer services 3,763
Equipment services 3,850
Dues and subscriptions 4,552 3,900
Liability insurance 778 611
Contingency fund 415 543
Total Allowable Administrative General Expenses $ 41,457 $ 28,445
The accompanying notes are an integral part of these financial statements.
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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)
F or the Year Ended
December 31,
2002 2001
Schedule 3A - Allowable Staff Expenses
Salaries $ 238,173 $ 133,053
Contract labor 665 14
Payroll taxes 16,946 8,945
Group medical insurance 34,268 16,140
Retirement 12,878 7,490
Group life insurance 847 325
Cafeteria plan 413 200
Unemployment tax 1,079 341
Workers compensation insurance 779 557
Professional development 4,023 8,205
Total Allowable Staff Expenses $ 310,071 $ 175,270
Schedule 4A - Allowable Building Operation Expenses
Property insurance $ 1,469 $ 912
Utilities 4,201 4,218
Taxes 5,064 3,447
Equipment maintenance 7,755
Maintenance and janitorial 5,521 5,829
Depreciation 12,600 6,972
Total Allowable Building Operation Expenses $ 28,855 $ 29,133
The accompanying notes are an integral part of these financial statements.
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SALINA AREA CHAMBER OF COMMERCE, INe.
Salina, Kansas
STATEMENTS OF REVENUE AND ALLOW ABLE EXPENSES UNDER AGREEMENT
WITH THE CITY OF SALINA TO PROVIDE
CONVENTION AND TOURISM SERVICES
F or the Year Ended
December 31,
2002 2001
Revenue
City of Salina
$ 440,000 $ 437,450
Allowable Expenses
Program expenses (Schedule IB)
Administrative and general expenses (Schedule 2B)
Staff expenses (Schedule 3B)
Building operation expenses (Schedule 4B)
206,942 230,132
32,059 24,536
202,236 190,863
21,641 29,373
462,878 474,904
$ (22,878) $ (37,454)
Total Allowable Expenses
Excess of Allowable Expenses Over Revenue
The accompanying notes are an integral part of these financial statements.
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I SALINA AREA CHAMBER OF COMMERCE, INC.
Salina, Kansas
I ST A TEMENTS OF REVENUE AND ALLOW ABLE EXPENSES UNDER AGREEMENT
WITH THE CITY OF SALINA TO PROVIDE
CONVENTION AND TOURISM SERVICES
I SCHEDULES
F or the Year Ended
I December 31,
2002 2001
Schedule 1B - Allowable Program Expenses
Signage $ 13,629 $ 7,709
I Advertising 10,867 12,730
Convention marketing 18,757 9,395
Convention services 12,563 22,112
I Tourism marketing 21,198 26,732
Sports 123,728 145,254
Special project 6,200 6,200
I Total Allowable Program Expenses $ 206,942 $ 230,132
Schedule 2B - Allowable Administration and General Expenses
Legal and accounting $ 2,684 $ 1,659
I Automobile expense 6,630 6,189
Office supplies 5,332 5,955
Postage 6,954 4,470
I Communications 1,974 2,834
Computer services 1,837
Equipment services 2,887
I Dues and subscriptions 2,866 2,559
Insurance 583 510
Miscellaneous 312 360
I Total Allowable Administration and General Expenses $ 32,059 $ 24,536
Schedule 3B - Allowable Staff Expenses
Salaries $ 157,857 $ 149,490
I Contract labor 15
Payroll tax 11 ,284 10,748
Group medical insurance 20,139 18,338
Retirement 10,046 8,749
I Group life insurance 690 542
Cafeteria plan 301 258
Unemployment tax 502 429
I Workers compensation insurance 576 655
Professional development 841 1,639
I Total Allowable Staff Expenses $ 202,236 $ 190,863
Schedule 4B - Allowable Building Operation Expenses
Property insurance $ 1,101 $ 995
Utilities 3,150 3,163
I Taxes 3,799 3,900
Equipment maintenance 5,815
Maintenance and janitorial 4,141 4,388
I Depreciation 9,450 11,112
Total Allowable Building Operation Expenses $ 21,641 $ 29,373
I The accompanying notes are an integral part of these financial statements.
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SALINA AREA CHAMBER OF COMMERCE, INe.
Salina, Kansas
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NOTES TO FINANCIAL STATEMENTS
December 31, 2002 and 2001
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1. Nature of Organization and Significant Accounting Policies
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A. Nature of Organization
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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.
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B. Income Tax Exemption
The Chamber is exempt from income tax under Internal Revenue Code Section 501(c)(6).
e. Accounting Method
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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.
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D. Land, Building and Equipment
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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.
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E. Allocation of Expenses
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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.
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F. Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires the use of management's estimates.
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2. Agreement Relating to Economic Development
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The Chamber received funds from the City of Salina, Saline County and the Salina Airport
Authority 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.
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3. Agreement Relating to Convention and Tourism
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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. The City has appointed a Convention and Tourism Advisory Committee to provide
recommendations to the Chamber programs in connection with this agreement.
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Under this agreement, the City makes quarterly payments to the Chamber equal to sixty percent
of the proceeds of the local transient guest tax levied on hotel and motel guests.
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