Audit

Comprehensive Annual Financial Report (CAFR)

Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. This requirement has been complied with and the auditor's opinion has been included with each annual audit. The City of Salina's Finance and Administration Department prepares the report and the responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. 

A critical part of the control system is the City's Comprehensive Budgetary and Financial Policies, which addresses such items as fund balances, capital improvements, operating budgets, long term debt management, accounting, auditing and financial reporting, revenues, cash management and investments. These policies are reviewed by the City Commission and updated each year as a part of the budget process and contribute to financial stability by:

  • Providing consistent guidance in decision making  

  • Establishing appropriate levels of fund balances   

  • Governing the use of one time or unanticipated resources

  • Providing a multi-year capital improvements process   

  • Establishing responsibilities and deadlines for budget preparation

  • Providing for a balanced annual operating budget

  • Providing guidelines on the use of debt, including appropriate purposes and terms

  • Providing a linkage between capital improvement scheduling and long term debt management planning

  • Requiring annual audits and financial reporting in conformance with Generally Accepted Accounting Principles (GAAP)

  • Requiring timely and regular interim financial reporting to the governing body

  • Insuring the safety of cash and near cash resources

City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and the adequate accounting data is compiled to allow the preparation of financial statements in conformity with generally accepted accounting principles. The internal structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgement by management.

The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the fund level, in accordance with State Statutes. However, management control is maintained at the department level. The City uses an encumbrance accounting system, in which estimated purchases amounts are recorded before the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund balance at the end of the year in the general fund and the special revenue funds. Various internal compliance procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of accountability for both revenue and expenditures.

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