Audit - 2006/2007HOUSING AUTHORITY. OF THE CITY OF SALINA.
FINANCIAL STATEMENTS
ADD
SUPPLEMENTARY INF RMATI 1
WITH
INDEPENDENT AUDIT R' S REPORT
FOR THE YEAR-ENDED JUNE , 2
SISTO-OGIRASS9 1DuNiuAP . & COMP sA0
CERTIFIED PUBLIC ACCOUNTANTS
CD
S @
HOUSING AUTHORITY OF THE CITY OF SALINA
TABLE OF CONTENTS
Independent Auditor's Report
Deport on Compliance With Requirements Applicable
:..
to Each Major Program and on internal Control Over
ompiianoe in Accordance with OMB Circular -1
Report on lntemal Control Over Financial Deporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
ianernent Discussion & Analysis
Statement of Net Assets
Statement of Revenue, Expenses and Changes In Not Assets
Statement of Cash Flows
Dotes to Financial Statement
Supplemental Information
Schedule of Findings and Questioned Costs
Schedule of Prior Year Audit Findings
Financial Data Schedules
Schedule of Expenditures of Federal Awards
PAGE
1
3 -4
5-6
7--1
1
1
17-18
19-25
6-
7
28-31
2
S D SNODGRASS, DUNLAP & COn1PANYg P.A.
CERTIFIED PUBLIC ACCOUNTANTS
16 West Jackson
430 Norfli 7fh Strect
213 Borah State,
P.O. Bo 768
P.O. Box 515
P.O. Box 290
Iota, Kansas 66749
Fredonia, Kansas 66736
Yates Cnter, mesas 66783
620-365-3125
620-378-2182
620-625-2371
INDEPENDENT AUDITMS REPORT
To the Board of Commissioners of the
Housing Authority of the City of Salina
We have audited the accompanying finaincial statements of the Mousing Authority of the City of
Salina, HUD Project KS038, as of June 30, 2007, and for the twelve months then ended, as listed
in the table of contents. These financial statements are the responsibility of the Housing Authority
of the City of Salina'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 and the standards applicable to financial audits contained in "Government
Auditing' Standards" issued by the Comptroller General of the United States. Those standards
require that we plan- and perform the audit to obtain reasonable assurance about whether the
financial statements are free of materlal 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 Invade 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 present fairly, in all material respects, the financial
position of Me Housing Authority of the City of Salina as of June 30, 2007, and the results of its
operations and charges in net assets and cash flows for the year then ended in accordance with
accounting principles generally accepted In the United Mates of America.
In accordance with "Government Auditing Standards ", we have also issued a report dated March
, 2008, on our consideration of the Housing Authority of the City. of � lira's internal ccntrcl ever
financial reporting and our tests of its compliance with . certain provisions of laws, regulations,
contracts and grant agreem nts and other matters. The purpose of that 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'considered in assessing the results of our audit.
Management's gement's i cussion and Analysis on pages 7 through 14 is not required part of the basic
financial statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquirie of management regarding the methods of measurement and presentation of the required
supplementary information. Ho wreverf we did not audit the information and express no opinion on
it.
Member PC P /Al C PA Ala ace for CPA Finns
Members of tho American Institute of Certified Public Accountants and Kansas Society of Certified public Accountants
2
Our audit was performed for the purpose of forming an opinion' on the basic financial statements
of the Housing Authority of the City of Salina taken as a whole,. The accompanying financial data
schedules required by. HUD and the accompanying supplemental information. is presented for
purposes o 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 not a required
part of the bane 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.
lola,'l an as
March 2B, 2008
2
CS D SNODGHASS, Duerr & COMPANv, P.A. CERTIFIED PUBLIC ACCOUNTANTS
16 West Jackson 430 North 7th Street
P.O. Box 768 P.O. Box 51
Iota, Kansas 66749 Fredonia, Kansas 66736
620-365-3125 620-378-2182
213 South State
P.O. Box 290
Yates Center, mesas 66783
620 - 625 -2371
DEPORT ON INTERNAL CONTROL Ill FINANCIAL
REPORTING TING AND ON COMPLIANCE AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL IAL TATEME T PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITISTANDARDS
To the Board f Commissioners
Housing Authority of the City of Salina
We have audited the financial statements of the Housing Authority of the City of Salina a special purpose
govern ent as of and for the year ended - June 0, 2007, and have issued our report thereon dated
arch we conducted our audit in accordance with auditing standards generally accepted in the
United States of Amerµica and the standards applicable to financial audits contained in Govemment
-Audifing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial lnternal Fr ting
lr' planning and performing our audit, we considered the Housing Authority of the City of alina's internal
control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on
the effectiveness of the. Organization's ilnternal control. Accordingly, we-do not-express an opinion on the
effectiveness of the organi ationrs Entemal central,
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned. functions, to prevent or' detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies that adversely affects the Organization's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted. arccoulnting principles such that there
Is more than a remote likelihood that a misstatement of the Organization's financial statements that is
more than inconsequential will not be prevented or detected by the Organization's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in.
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the Organization's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might he significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over financial reporting we consider to he material weaknesses, as defined above..
Member PC MAI CPA Al 1i an ce for CPA Firms
Members of the Amedcan Institute of certified Public Accountants and Kansas society of Cerfifled Public Acmunta €nts
omoliance and Other Matters
As part of obtaining reasonable assurance about whether the Housing Authority. of the City of Saliva's
financial statements are free of material misstatement, we performed tests of is compliance with certain
provisions of laws, regulations, contracts, grant agreements and other matters, 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 net an objective of our audit, and
accordingly, .eve do not express such an opinion. - The results of our tests disclosed no instances. of
noncompliance or other natters that are required to be reported under Govemment Auditing Standards,
This- report is intended solety for the information and use of the audit committee, management, others
within the organization and federal awarding. agencies and pass -- through entitles and i not intended to be
end 'should not be used by anyone ether than these specified parties.
- r
Iola, Kansas
March 2, 2008
SNODGRASS,
DuNLALP
ComPANv� P.A*
:..
CERTIFIED. PUBLIC ACCOUNTANTS
T
16West Jackson -
430 North 7th Street
.213 South State
P.O. Box 768
P.O. Box 5 15
P.O. Box 29
Mai Kansas 66749
Fredonia, Kansas i 667
Yates enter, Kansas 66783
620 - 365 -3125
620- 378 -2182
620-625-2371
REPORT T oN COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND CAN INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR -'l
To the Board of Com.missioners of the
Housing Authority of the city of Salina
eoMfiance
We have audited the compliance of the Housing Authority of the City of Salina a special
purpose government) with the types of compliance requirements described in the "U.S. Office of
Management and Budget (OMB) circular -133 Compliance Supplement" that are applicable to
each of its major federal programs for the year ended June 30, 2007.- The Housing Authority of
the City of Salina's major 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 lags, regulations, contracts, and grants applicable to each of its major federal
programs is the responsibility of the dousing Authority of the city of S lina's management. Our
responsibility . is to expres.s an opinion on the lousing. Authority . of the City of Salina's
compliance based ors our audit.
We conducted our audit of compliance nce ire accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits contained
in Goy emment Auditing Standards, issued by the Comptroller General of the United States; and
OMB circular ' - -'133; "Audits of States, Local Governments, a'nd Non -Profit Organizations. 31
Those standards and OMB Circular A -133 require that we plan and ' erform the audit to obtain
reasonable assurance about whether -noncompliance with the types of compliance requirements
preferred to above that could have a direct and ,material effect on a major federal program
occurred. Our audit included examining, on a test basis: evidence about the lousing -Authority
of the City of Sauna'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 of
the Housing Authority of the city of Saliva's compliance with those requirements..
Ire our opinion, the Housing Authority of the city of Salina complied, in{ a II materlal ,respects,, with
the requirements referred to above that are applicable to each of its major federal programs for
the year ended June 30, 2007.
Member PC PSIAIC PA Al I lance for CPA F!rins
Members-of the American Institute of certifled Public Accountants and Kansas Society of Certified Public Accountants
Page 2
Housing Authority of the city of Salina
nternal ' contrlover - Compliance
The management of the Housing Authority of the city of Salina is responsible for establishing
and maintaining effective internal control over compliance with the requirements of laws,
regulations, contracts, and grants applicable to federal programs. In planning and performing
our audit, we considered the Dousing Authority of the city of Salina's internal control over
compliance With requirements that could have a direct and material effect on a major federal
program as a basis ,for designing ou.r auditing procedures for -the purpose of expressing our
opinion .on compliance and to test and report on the internal conntrol #in accordance with OMB
.circular A-133, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's infernal control. Accordingly, we do not express an opinion on the effectiveness
of the Organization's internal control.
A . control deficiency exists when the design or operation of a control, does not allow
management or empl yees within a timely period, in the normal course of performing their
assigned functions, to prevent or defect noncornpl iance with applicable - requirements -of lags,
regulations, contracts and gr nts that would have a direct and material effect ors- a major federal
program. A significant defEclency is a control deficiency, or combination' of control deficiencies,
that adversely affects the Organization's ability to administer a major federal program in
accordance with applicable requirements of lags, regulations, contracts and grants such that
there is more than a remote likelihood that the organization's noncompliance that is more than
inconsequential will not be prevented or detected by the Organization's internal control.
material weakness is a significant deficiency, or combination of significant deficiencies that
results in more than a remote likelihood that material noncompliance with applicable
requirements of lags, regulations, contracts and grants in relation to a major federal program
will not be prevented or detected by the organization's internal control.
Our consideration of internal control was for the limited purpose described. in the fourth
paragraph and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or Material weaknesses. We did not identify any deficiencies in internal
control that we consider to be material weaknesses, as deferred above.
This report is intended solely for the information and use of the board of commissioners,
management, others within the Organization and federal awarding agencies and pass -thr ugh
entitles and is not intended to be and should not be used by anyone other than those speciffed
parties.
r 0 ,
Iola, Kansas
Marche 28,, 2008
Housing Authority of the city of Salina, Kansas
Management's Discussion and Analysis D & A
June 30, 2007
Management's Discussion and Analysis MD& is an element of the reporting model
adopted by the Gove rnmentaI Accodntin g standards Board (GAS B) in their Statement Flo. 3
Basic Financial Statements - and Ma ra er ent "s Discussion and Analysis - for state and
Local Govemments issued June 1999.
Our discussion and analysis of the financial performance for the Ho.using Authority of the
City of sauna, Kansas, provides an overview of the financial activities for the fiscal year
ended June 30, 2007. Please read the MD &A in' conjunction, with the Housing Authority's
financial statements.
Financial Highlights
Assets:
Total assets -increased by $288,475 from $7,0,0 as of June 30,, 200r. to
$7,938 ,,885 as of June 30, .2007. Current assets increased by -appro imately
$426,500 .w ren compared to 2006 while net- capital assets decreased by
approximately $133,400 as depreciation expense for the current year exceeded
capital asset additions during 2007.
Liabilities:
Total liabilities were $213,145 as of June 30, 2006, but increased to $454,971 as
of June 30, 2007. This increase relates to money received for insurance claims
during 2007 that was recorded as deferred revenue and will be recognized as
revenue In the next year to match the costs of restoring the damaged assets,
Reven Y
Total revenue increased from $2,x.73,740 for the year ended June 30, 06, to
$2,331 ,,696 for the year ended June 30, 2007, an increase of $157,956. Tenant
revenue was larger, federal grants and subsidy revenue increased, investment
income was higher, and other income reported an increase .for 2007*
Expenses:
Total operating expenses also increased from 2006 to 2007. Total operating
expenses were $2,011,030 for the year ended June 30, 2006, but increased by
$135,795 to $2,146,825 for the year ended June 30, 2007. All but two categories
of operating expenses reported increases for 2007.
Housing Authority of the city of Salina, Kansas
s
Management's Discussion and Analysis (MD &A)
For accounting purposes, the Housing Authority is classified as an enterprise fund.
Enterprise funds account for activities similar to those found in the private business sector,
where the determination of net income is -necessary or useful to sound financial
administration. Enterprise funds are reported using the full accrual method-of accounting in
which all assets and all liabilities associated with the operation of these funds are included
on the balance sheet. The focus of enterprise funds is on income measurement, which,
together with the maintenance of equity, i an important financial indication.
Overview of the Financial Statements
This annual report includes this Management Discussion and Analysis report! the Basic
Financial statements and the Dotes to the Financial' statements. This annual report also
contains the Financial Data schedule (FDS) as referenced in the section of'supplemental
information Required by HUD. The Housing.Authority's financial statements are presented
as fund I eve I financiai statements because the Housing Authority only has proprietary funds.
The financial statements of the Housing Authority report information of the Housing
Authority using accounting methods similar to those used by .private sector- companies.
These statements offer. short-term and long-term financial information about the Housing
Authority's activities. The statement of filet- Assets includes all the Housing Authority's
assets and liabilities and provides ipformation' about the nature and -amounts of
investments in resources (assets) and obligations to the Housing Authority's creditors
(liabilities). It also provides the basis for evaluating the capital structure of the Housing
Authority and assessing the liquidity and financial flexibility of the Housing Authority.
All of the current year's revenues and expenses are accounted for in the statement of
Changes inlet Assets. This statement me sores the success of the Housing Authority's
operations over the past year and can be used to determine whether the Housing Authority
has successfully recovered all its costs through its user fees and other charges, profitability
and credit worthiness.
The Statement of cash Flows reports. cash receipts, cash payments, and net changes in
cash resulting from operating, investing, and financing activities and provides answers to
such questions as where did cash come fronn# what was cash used fart and what was the
change in the cash balance during the reporting period.
The n otes to the financial statements provide additional information that is essential to a full
understanding of the data provided in the basic financial statements.
The section supplemental Information Required by HUD contains the Financial Data
Schedule FDS. HUD has established Uniform Financial Reporting. standards that require
the Housing Authority to submit financial information electronically to HUD using the FDs
format. This financial information ' has been electronically transmitted to the Real Estate
Assess rnent center RE c for the yea r =ended June 30, 200 7.
8
Housing Authority of the city of Salina, Kansas
Management's Discussion and Analysis (MID
Financial Analysis
one of the rnost important questions asked about the Authority's finances is, "`Is the Housing
Authority as a wh ole better off, or gorse off, as a resu It of the ach ieve m ents of. the reported
fiscal year?" The information presented in this Management's Disc and Analysis ]is to
assist the reader in answering this question*
The Housing Authority's basic financial statements are the Statement of Net. Assets and the
Statement of charges. in Net Assets. The Statement of Net Assets provides a summary of
the Housing Authority's assets and liabilities as of the close of business on .dune 30, 2007.
The Statement of Changes in Net 'Assets ummari es the revenue and sources of those
revenues generated during the year ended June 30, 2007 and the expenses incurred in
operating the lousing Authority for the year ended June 30, 2007.
The Housing Authority accounts for its housing activities in several -programs. The rain
Housing Authority programs are a low rent program that provides housing for qualified
tenants, a capital fund program that the Housing Authority uses for improvements ents to its lour
rent property, and a housing choice voucher housing program that provides rental
assistance to tenants living in private housing. The following analysis focuses on the net
assets and the orange in net assets of the Housing Authority as a whole and not the
individual programs..
u Trent Assets, Net of 1 nter-- progra m
petal Assets, Net
on- current Assets
Tota I Assets
urrent Liabilities, Net of Inter - program
on- current Liabilities
Total Liabilities
Net Assets:
Invested In capital Assets, Net of Debt
Restricted Assets
Unrestricted Assets
Tota 1 Net Assets
Net Assets
June 30,
9
Increase
2007 2006 Decrease
1,7181449 $ l,2 1, 426,468
6,201..,61.5 61335,021 -33.14
18,821 23,4 -4,587
$ 7,938,885 $ 716501,410 $ 288,475
$ 405,166 $
1617597$
243x569
4,05
511,548
-1,743
4549971$
.2133145 $
241,526
61201,615 $
6P335jQ21
- 133,406
o
254,58
- 254,586
11,282,297
847,658
434,689
7,488,91.2
'7,437,65 $
46,64'
Housing Authority of the city of saliva, Kansas
lan age rnent's. Discussion and Analysis IID & A
Assets:
Total current assets were $1,291,981 as of June 30, 2006, and increased by $426,468 to
$1,718,449 as of June 30, 2007. The balance of cash, including investments, did increase
by approximately $410,700 as of June 30, 2007. This increase relates to money received
from insurance claims that had not yet been .used to restore the damaged property as of
year end. Increases in receivables, prepaid expenses, and inventories also contributed to
the increase i n current assets.
Net capital assets decreased from $6,335,021 as of June 30, 2006, to $6,201615 as of
June 30, 2007. This $133,406 decrease in net capital assets is comprised of capital asset
additions of $95,457 less current year depreciation expense of $22M62M
Non-current assets are comprised of notes receivable. Daring the current }rear, the Authority
received payments of approximately $4,600 toward these notes.
Liabilities:
Total current liabilities increased from $161,597 as of.June 30, 2006, to $405,16 6 as of
June 30, 2007, an increase of $243,569. Approximately $220,000 of this increase relates
to insurance proceeds that will be recognized as revenue net year as the damaged property
is restored. Accrued employee related costs .were approximately $60,000 higher for the
current year because June salaries and gages were not paid until July. The above increases
in current liabilities were offset some by' a decrease of approximately $17,000 in the
amount owed to vendors and the settlement of a liability to HUD of approximately $37,000
related to pre -2005 liabilities.
Net Assets=
The $46,647 increase in net assets is the result of two significant, items. Net assets
increased by approximately $J-85,000 as total revenue of $2,331,696 exceeded total
operating expenses of $2,146,825. Net assets were also affected by prior - period
adjustments that reduced net assets by approximately $138,000. Practical 'ly all of the prior
period adjustment was to properly record pre-2005 settlements with'HUD.
c endable Fund Balance:
The expendable fund. balance of an authority is a measure of the liquidity of the entity. If all
of the authority's current assets,. less materials inventory,.'are converted to cash, and the
authority pays all current liabilities, the amount of cash left on band is the expendable fund
balance. The expendable fund balance was approximately $1,296,000 as of June 30, 2007
(per unaudited amounts submitted to IUD).
The numb r of months in expendable funds is a measure of how many month the authority
could operate under current conditions without any additional into' me. The number of
months in expendable Bands is calcul ted by dividing the total expenses for the year, less
depreciation and HAP expense, by twelve 2 to arrive at the average monthly expenses.
1
Housing Authority of the city of Salina, Kansas
Management's Discussion and Analysis (AVID & A
The expendable fund balance is divided by the average monthly expense- to arrive - at the
number of months expendable fund balance. The ratio as .dune � , � }was .
months (per unaudited amounts submitted to HUD).
Revenue:
Tenant Revenue
Federal Grants & subsidy
Investment Income
Other income
Total Revenue
Changes in Net Assets
For the Year Ended gone 30,
Increase
2007 2006 Decrease
291,077 $
2661544$
24163
13,,6
116,0 -
797598
65,964
.29,1520
36,3
49,026
31t585
17,441
$ 21331,696 $
2, .7 3 ?740 $
157,956
Expenses;
Administrative
495,137 $
4832228$
11 V 90
Tenant services
18,463
1-91973
-- x.,516
Utilities
129,312
14,248
-11936
Routine Maintenance
264,020
2.25,808
28,21 2
General Expenses
101,295
91J99
9P496
Non - Routine Expenses
32,x..79
o
321 17
Casualty Losses
20,3
6
20,375
Housing Assistance Payments (HAS)
3841182
959,546
24,642
Depreciation
2269862
216,428
12,434
Total operating Expenses
2,1462825 $
70,3 $
135:795
klncrease (Decrease) ire Net Assets
1841871$ 16,710 $ 22,16
Revenue:
The authority has two basic sources of. revenue. Rents and other tenant charges and fund
received from the Department ent f Housing and Urban Development (HUD) in the form of
operating subsidies, tenant assistance, and capital improvement grants.
Tenant revenue increased by approximately ately % for the current year from $266,544 for the
year ended June 30, 2666, to $291,077 for the year ended June 80, 2007. The number of
unit months leased was about the same for the two years. Tenant rents are also affected by
the tenant's reported income and other tenant attributes. The amour' t of rent that a tenant
pays increases as the tenant's income increases. .
Federal grants and subsidy revenue increased from $1,84.6,091 for the year ended June'30,
2006, to $1,925,689 for the year ended June 30, 2067. Hoare assistance. increased by
approximately ${44,000, HAP assistance increased by approximately $25,060, capital grant
11
Housing Authority of the city of Salina., Kansas
Management's Discussion -and Analysis MD & A)
revenue increased by approximately $45,000, and low rent subsidy decreased by
approximately $34,000.
Investment income more than doubled as investment income for the year ended June 30,
2007, was $65,904 as compared to $29,520 for the year ended. June 30,, 2006. The
Authority had more money invested during the current year and the rate of'return for the
current year itproved over tine prior year.
Other income a also increased for the current year. Other income for the year ended June 3 ,
2007, was $49,026 as compared to other income of $31,585 for the year ended June 30,
2006. other income for the current year includes approximately $20,000 of insurance
proceeds related to the casualty loss reported in total operating expenses.
Ex n s.:
Routine maintenance expenses increased by $28,212 to $254,020 for tlne'year ended June
30, 2007. Maintenance personnel costs, to include employee benefits, did increase by
approximately $40,000 for the current gear. The Authority added additional maintenance
personnel. offsetting some of this increase was a decrease of approximately $15,000 in
contract costs from 2006. Material costs were sonne higher in tine current gear. -
General expenses increased by approximately 0% or $9,496 during the current year to a
total of $101,295. The approximate $14,000 increase in- insurance expense was
comprised of an approximate $7,000 increase in workmen's compensation insurance, auto
insurance increased by approximately # oo, and property insurance increased by
a p proximately $5,000. offsetting to some extent the increase. in insurance was a decrease
in compensated absences of approximately $8,000. The adjustment of 'compensated
absences was lower for the current year as the employees utilized most of the time off
earned during the current year.
Ikon- routine expenses were $32,x.79 for the year ended June 30,. 2007, as compared to
zero in Zoo. The Authority performed several renovations during the current year to
include -renovations to windows, carpeting, fencing, and flooring just to. name a few of the
renovations.
The Authority incurred $20,375 irn the current year to restore capital assets damaged during
the gear. Restoration costs should be even more in the corning year s the Authority ..
continues to restore the damaged assets.
The changes in administrative expenses, tenant services expense, utility expenses, and HAP
expenses are not considered significant to tine Authority's overall financial status.
12
Housing Authority of the City of Salina, Ka
Management's ent's Discussion and Analysis (MD & A)
a p ita I _ Assets
At June 30, 2007 the Housing Authority had $6,201,615 invested in net capital assets. This
amount represents a net decrease of $133,406 in net capital assets Then- compared to net
capital assets as of June 3, 2006.
The current-year major additions were buildi.ng improvements f $34,294, a handicap door
opener for $2,037, a voi ema il system for $x.,384 and a.paper shredder for 7 13.
During the current year,. some work in progress projects were completed and certain assets
of $x.92,287 were transferred from -construction in progress to other capital asset
categories.
The Housing Authority still has approximately $68,909 in Capital program funds' to spend on
future improvements.
Capital Assets at Year End
(Net of Acc u mulated Depreclation
June 3,
Land
Buildings
Furniture, Equipment & Machinery -. Dwell
Furniture, Equipment & Machinery - Ad in
Leasehold Improvements
o n tru cti b n in ro ress
s u btota l
Accumulated Depreciation
Net Capital Assets
Debt
As of June 59, 2007, the Authority does not have any outstanding debt,, bonds, mortgages,
or notes payable. There are some non-current liabilities as of Jane 59, 2997, for employee
compensated absences of approximately $44 #900 and escrow amounts of approximately
$6,009 held for participating tenaMnts of the FSS escrow program.
Increase
2907
200
Decrease
1r481,890 $
11481,890
5!7891,556
5,5971,139
183,4
2,79
321,789.
288,751
279,313
.9..438
527,288
493,288
3 49000
3 B, 747
520P915
(135,168
8,497,921$
:33
911687
(212951,406)
(2,1070y313)
(225x993)
61201,615
.,333F21
33.,p4
Debt
As of June 59, 2007, the Authority does not have any outstanding debt,, bonds, mortgages,
or notes payable. There are some non-current liabilities as of Jane 59, 2997, for employee
compensated absences of approximately $44 #900 and escrow amounts of approximately
$6,009 held for participating tenaMnts of the FSS escrow program.
dousing Authority of the City of Salina, Kansas
M n ge a t "s Discussion and Analysis WI .
Economic Factor
The Housing Authority is dependent upon HUD for the funding of operations; therefore, the
Housing Authority is affected both by the federal budget and by local economic condltions.-
_
The funding f programs could be significantly affected by HUD and by the 2007 and 2008
federal budget.
Contacting the Housing Authoritys Financial Management
Our financial report is designed to provide our citizens, t p iers, and creditors with
general overview of the housing Authority's finances and to show the Dousing Authority's
accountability for the money it receives. If you have questions about this report or .wish .to
request additional financial information, contact Lynn Vossman, Interim Executive Director,
at the dousing Autho rity of the City of $a I i na Kansas, 469 S 5th St. 1, Sa11na . l s, 6x7402,
telephone number (785) 827-0441.
4
ALI fA. HOUSING AUTHORITY
HUD PROJECT KS0 .
STATEMENT of NET ASSETS
JUNE 30P 2007
ASSETS
Current Assets
Cash and cash eq WIents
HUD accounts receivable
Tenant accounts receivable, net
_. Other receivables
Prepaid expenses and other assets
Current portion of note recelvabe
Investments
Inventories
I _estd ted:
Cash and cash equivalents
`total current assets
Fixed a se -net of accumulated depreciation
Ikon .-current Assets
Fetes receivable, net of current portion
TOTAL ASSETS
LIABILITIES, EQUITY, AND OTHER CREDITS
Current Liabilities
Accounts payable - 98 days
Accrued wages/ payroll taxes
Accrued compensated absences - current
Accounts payable - other government
Tenant security deposits
Deferred revenues
Other current liabilities
Total current liabilities
Nonpurrent. Liabilities_
Noncurrent Wbili es other
Accrued compensated absences - noncurrent
: Total noncurrent llabilItIes
Total Liabilities
Net Assets
:. Invest d in capital assets net of related debt
Unre tdcted net assets
Total equity and other credits
TOTAL LIABILITIESXQUITY, AND OTHER CREDITS
See accompanying notes to financial statements.
1
388,41
17,640
28,666
5,6'65
93136
2,293
11 F744
GAn
6}201,616
18,82'1
$ 719387883
1 1,84'1
6I,19
41903
23,223
71,256
81239.
99A V%n
A
454,971
6,28;616
1,282,297
71483,91
7,9881883
ALIHA HOUSING AUTHORITY
HUD PROJECT KS038
STATEMENT OF REVENUES, EXPENSES AND cHANGES IN NET ASSETS
YEAR ENDED JUNE 30s, 2007
REVENUES
Tenant revenue
Program grants -rent subsidies
Other Income
Total revenues
OPERATING ► EXPENSES
Current
Administrative
Tenant services
Utilities
Maintenance
General
Housing assistance payments
_ Depreciation
Total operating expenses
porat ng In of ne (lass)
Non-operating r v noes (expenses)
Interest income
suaitj losses
income (loss) before contributions and transfers
Capital grants
Operating transfers in
Operating transfers out
Excess (deficiency) of revenue over (under) expenses
Net assets at beginning of the gear
Prior period adjustment
Net assets at be innIng of the year restated
Net assets at the end of the year
Sae accompanying notes to financial statements.
16
291 ,077
1,808,1 90
49,025
2,208 :299
490,683
18,463
12,312
288,199
99,769
984,182
228,882
2,1 25,45.0
81,849
65,904
1')A 79►
IGI ,w]I U
57,493
204,744
(204,744
1 84,871
x',437,265
1a.
7,299,041
$ 7,483,912
SALI IA HOUSING AUTHORITY
IUD PROJECT KS038
STATEMENT OF CASH FLOWS PROPRIETARY F A D TYPES
61738
DEAR ENDED JUNE 0, 2007
(553457)
CASH FLOWS FROM OPERATING ACTIVITIES
(20+375)
Cash received frorn tenants
2802868
Cash received from grants /subsidies
11881,705
Cash received from other sources
274,359
Cash paid for operating expenditures
65,563
Administration'
(439,252)
Tenant services
(1 89463)
Utilities
(12w3.12
Maintenance
(306,155)
General
(102,601)
recapture of FLAP by HUD
174,795)
Housing assistance payments
� (964,182
Net cash provided (used) by operating activities
356,688
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Tenant security deposits and F 8 escrows
61738
Purchase of fixed assets
(553457)
asuty lasses
(20+375)
Cash received from capital grants
579493
Not cash provided (geed) by financing activities
(515601
CASH FLOWS FROM I[ VE TING ACTIVITIES
Cash received from interest
65,563
(Increase) decrease In investments
(656,346)
Gain on sale of assets
Not cash provided (used) by investing .activities
59 ,777
INCREASE EASE (DECREASE) IN CASH AND CASH EQUIVALENTS (245,690)
CASH AND CASH EQUIVALENTS TS T BEGINNING F YEAR 7'11 ,945
CASH AND CASH EQUIVALENTS AT END of YEAR 465,365
See accompanying notes to financial statements
1
SAI A HOUSING AUTHORITY'
HUD PROJECT KS0 8
STATEMENT of CASH FLOWS PROPRIETARY FU D TYPES,
YEAR ENDED .DUNE 81, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Excess (deficiency) of revenues over (under) expenditures
Adjustments to reconcile excess (deficiency) of revenues
over (under) a enditures to net cash provided by
operating activities
Depreciation
Increase or decrease ire:
Tenants receivable
Grants receivable
Other receivable
Miscellaneous prepaid expenses
Inventories
Accounts payable - 90 days
Wages and Compensated absences payable
Deferred revenues
HUD PHA programs
Other liabilities
Net cash provided (used) by operating activities
'811849
228,.882
See accompanying motes to inn i l statements
.
3967888
HOUSING AUTHORITY Y of THE CITY of SALINA, KANSAS
NOTES To THE FINANCIAL STATEMENTS
TS
JUNE 30, 20
NOTE A — SUMMARY of SIGNIFICANT POLICIES
organization
The Authority was created- under the laws of the State of Kain a . Tine. purpose of the Authority
is to administer the housing programs authorized. by the United states Housing Act. of 1937, as
amended. These programs are subsidized by the -Federal G ove rnMent through the U:s,
epartmer't of Housing and Urban Development (HUD).
The financial- state me nts of the Authority -have been pre pared in adc rdan ce with - accounti n
principles generally accepted in the Urnited States of America as applied to governmental units.
The Governmental Accounting standards. Board "GASB" is the -standard- setting body for .
governmental accounting and financial reporting. As allowed in section P80 of GASB's
Codification of Governmental nmental , c o ntinc and Financial Renorting. MStandards, the Authority has
eluted not to apply to its proprietary activities Financial Accounting standards Board
Statements and IYnterpretations, Accounting' Principles Board opinions, and Accounting
Resea r h Bulletins. of the Com mittee of Acco uintirn g Procedure issued after November 30, 19 8 g.
Financial Reportinq Entit
In determining how to define -the reporting entity, management has considered all. potential -
component units. The decision to include a component unit in the -reporting entity was made,by
applying the criteria set forth in section 2100 and 2600 of the Government Accounting
Standards Board Codification, These criteria state that the financial reporting entity consist of
(a) the primary government, organizations for. which the primary government is, financially
accountable, and c other organizations for which the primary government' is not accountable,
but for which the nature and significance of their relationship wi6 the p.rir ry government are
such that exclusion would cause .the reporting entity's financial st er. ent .to be misleading or
incomplete. Eased on these criteria, there are no additional age'ncies:o r. entities which should
be included in the financial statements of the Authority,
Basis , f accounting, measurement focus, an financial s enn. .w: Mr,-e -- - - - - -e- `nt tion
- - --
The accounts of the Authority are organized on the basis of funds, each f 'which is considered
a separate accounting entity. The operations of each fund are accounted for with a separate set
of self - balancing accounts that comprise its assets, 'liabilities, fund 'equity, revenues and
expenditures or expenses, as appropriate.
Proprietary funds ' are accounted for using the "economic resources" measurement focus and
the ,accrual basis of accounting. Accordingly, all assets and lia ii -Iitii s (whether current or
noncurrent) are included in the Statement of Net Assets. The Statement of Revenues,
Expenses and Changes in Net Assets present increases (revenues) and decreases (expenses)
in total net assets. Under the accrual basis of accounting, revenues are recognized in the.
period. in which they are earned while ,.e penses are- recognized in the period in which. the
liability is incurred.
See I de endeiat Auditor's Repot
1
HOUSING AUTHORITY of THE CITY of SALI NA, .KANSAS - .
NOTES T -THE. FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
The Authority distinguishes between operating and - nonoperating revenues anal expenses In its
Statement of Revenues, Expenses -and Changes in Net Assets. For this purpose, the
Authority's operating revenues result from providing low - income housing services such as
tenant rent, HUD Section 8 funds earned and other tenant charges. Operating, expenses
include the cost attributed to administration, tenant services, utilities,. maintenance and
operations, housing assistance payments and depreciation on capital- assets. -All revenues and
expenses not meeting these definitions are reported a 'nonop rating revenues and expenses.
Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of
revenues, .Expenses and Changes in Fund Net Assets,, and a Statement of. Cash Flows.
Budgetary Process
The Authority establishes a budget for the fiscal year and
Commissioners.
Cash and Investments
I adopted .:by the Board of
The Authority's deposits can only be invested in the following. HUD approved investments:
direct obligations of the federal government backed ed by the full faith and credit of the United
States, obligations of federal government agencies, securities of government- sponsored
agencies, demand and savings deposits, money - arl et deposit accounts, municipal depository
fund, super now accobnt , - certificate. of deposit, repurchase ag reement f . sweep ac ounts,
separate trading of registered interest and principal 'securities, (STRIPS), and mutual funds that
consist of securities purchased from the HUD approved list.
Accounts Receivable .
All receivables are current and therefore- due within one year., Receivables are reported net-of
a allowance for uncollectible account and revenues net of un ollectible .. Allowances are
reported when accounts are proven to be uncollectible.
Prepaid. 11trns
Prepaid balances are for p yr ents made b the Authority in the cu�rr nt.'y t provide er rice
occurring in the subsequent fiscal year.
Inv
nto
Inventories consist of supplies and are recorded at the lower of cost' r 'm rl et . n a first -in, first -
out basis.
Capital Assets and Depreciation
Property and equipment are stated at actual or estimated historical cost, net of .accumulated
depreciation. Contributions of assets are recorded at fair market value at,the date donated.
See Independent Auditor's Report
0
HOUSING AUTHORITY ITY of THE CITY OF S LINA, KANSAS
NOTES To THE FINANCIAL STATEMENTS
TS
:. JUNE 30, Zoo
MOTE A — SUMMARY of SIGNIFICANT ACCOUNTING POLICIES C I T' D)
The Authority generally capitalized assets with a cost. of - $ oo or: m r . as purchases and
construction outlays occur.
Depreciation has been calculated on-each class f depreciable property! using the straight-line
method. Estimated useful lures are as follows:
Furniture and fixtures 5-10 gears
Equipment 3 -10 gears
Buildings 20 -0 gears
Building improvements 10- 0 gears
Use of Restricted/Unrestricted I et Assets
When an expense is incurred for purposes for which both restricted and unrestricted net assets
are available, the Authority's policy is to apply restricted assets first.
Due to and Due from other Funds
Intertund receivables and parables arise from interfurnd transactions and are recorded by all
funds affected in the period in .wh.ich transactions are executed. The balances. result from the
time lag between the dates that interfund goods and services are provided or expenditures
occur, transactions are recorded in the accounting system, and payments between funds.
Transfers =
Permanent reallocation of resources between -funds of the rep' rtir . - ::P" n' tit r: are classified : -a .
inteund transfers.
Grant Revenue
The Authority, a recipient of grant revenues, recognizes revenues (net of estimated uncollectible
amounts, if any), when all applicable eligibility requirements, including time requirements are
met in accordance with GASB Statement No. 33; Resources transmitted to the Authority before
the eligibility requirements are met are. reported as deferred revenue.
Investment Income
Investment income from pooled cash and investments is allocated monthly based on the.
percentage of a fund's average pooled cash and investments balance.
Compensated Absences
The Authority's polio' allows employees to accumulate unused vacation leave. -Sick leave may
be accrued -but is not -paid upon termination, except upon retirement.
HOUSING AUTHORITY OF THE CITY of SAUNA, .KANSAS
NOTES To THE FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT113)
The Authority is -a governmental subdivision of the State of Kansas and is exempt from Federal
and state income taxes.
Pti,fa
The preparation of financial statements in conformity with accounting principles. generally
accepted in the United . states of America requires managern nt to make certain estimates and
assumptions, that affect the reported - amounts of certain assets, ' .Iiabllities, .revenues,
expenditures, expenses, and other disclosures. Accordingly, actual.. re ults. could differ from
those estimates.
Leases
The majority of leases and subleases are short -term operating leases::.
Schedule of'E enditures of Federal A wards
The accompanying schedule of Expenditures of Federal Awards includes the federal grant
activity of the Housing Authority of the City of, Salina, Kansas and is .presented ire .accordance
with generally accepted accounting principles. The -information -in this schedule is presented in
accordance with the requirements of office of Management and Budget- Circular A -1 33, Audits
of States,, Local Governments and Non-Profit Organizationa.
NOTE B — DEPOSITS AND INVESTMENTS.
At June 301 2007, the, reconciled amount of. the agency's deposits were $1,421,655 and the
bank balance vas $1,51 6,605: which includes certificates 'of deposit. Cash and cash
equivalents are stated at cost which is their fair market value and include .all unrestricted
investments with the original maturities of three months or less acre considered cash equivalents:
It is the policy of the .. agency - - -to be secured by collateral - valued a t ark et or par, whichever is
to wer, less the amount of-the insurance provided by the Federal Deposit.:.:. ran a C .orp ration.
The agency's deposits were secured by $527,173 FDIC insurance and the balance of $985,306
was secured by securities pledged by the institution in which they,- were. or' deposit. The bank
balance of ' 4,127 was neither insured or collateralized against
At .dune 2007,- the agency hid investments in the Kansas Pot l i ne Investment ire-. the
amount of $.203,658. All investments rnad 'for the Portfolio must om1 ply with Kansas statutes
and the Rules and Regulations of the Pooled Money Investment. bard. The Portfolio primarily
consists of government securities (including U.S. Treasuries are Federal'Agencies), certificates
of deposit in Kansas - banks, and top -rated domestic . commercial paper. - U.S. Government
securities carry the highest industry ratings and are considered among.the safest- investments in
the world. Portfolio investments In commercial- paper, are restricted to top -rated (A1/P1 or
better), highly credit-worthy corporations. All of these investments present very limit 6d risk to the
investor. The maximum it um final maturity of any security purchased for the portfolio is limited to four
years. The Pool owns no, securities itself, but rather all securities are. part of the Pooled Money
.Investment Portfolio. Pool deposits acre not insured or otherwise guaranteed by-the State of
Kansas
See Independent Auditor's Report
PAX
HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE c -- PROPERTY AND EQUIPMENT
Property and equipment is recorded at the cost of acquisition. Depreciatio'n.is provided over the
estimated useful lives of the assets as a. charge against earnings.` mot property and equipment
is acquired with grants from Federal, . state, and tribal governor nts , so no . interest costs .. ar
usually associated with -these acquisitions.
A summary of the property and equipment and the .related accumulated depreciation follows.
SCHEDULE OF CHANGES. IN FIXED ASSET ACCOUNTS
Year Ended June 3. 2007
Reclassifications Additions
186,983
53304
(13242871
34,204
41134
57.119
95,457
228,862
..w 4
Ending
Deductions Balance
$114813890
33789 07307,844
3213540
38, 747'
33709 814973021
3,759 2,29 5,480
$672011615
Buildings are depreciated over an estimated useful life of 40 years,-' :1 n . prpvernents Over an
estimated useful .life of 3 ' years, and equipment over are, estimated u. fi l "life of 5 to 10 years.
The straight -line method is used in computing depreciation.. For the' twe.l e. ,months -ended June
302 2007, the sum of $228,862 was charged against earnings. -
NOTE D -- ACCOUNTS RECEIVABLE :. ;..:..
At June 30,' 2007; the agency has amounts due ftor % tenants in the amount of $29,240. An
allowance for uncollectible accounts in- the amount of $2,584 has been established which
management feels is adequate. In addition, the agency has completed all the requirements
necessary to receive $17,640 in grants from the D. S. Department of -Housing and Urban
Development. There are other miscellaneous accounts receivable in. the amount of $5,665.
NOTE E --- DEFERRED CHARGES
The agency has purchased. insurance policies from various insurance companies,. of which
$29,136 was une pired, pre rata, at .June 30, 2007. This is more than the aM- unt that could -be
realized upon cancellation of the policies. The agency has purchased commercial insurance
coverage to cover claims arising from the use of private automobiles by employees on agency
business, automobile property damage and liability, losses from fire and other natural disasters,
employee bond, and directors liability, and workers' compensation. In addition, -the agency has
maintenance ,materials on hand with a cost of $11,744.
NOTE F — INTERGOVERNMENTAL REVENUES
During the twelve months ended June 30, 2007; the agency recel r -':11:.'t 25:,' 89 from the U. ' S.
Department -of Housing and Urban Development as operating su'bsidie's,. rental-'as sistance n-d
capital. grant funds. - These amount -are reflected in -the' - financial . statements as
intergovernmental -revenues.
See Independent Auditor's Deport
23
Beginning
Balance
Land
174811890
Buildings
59038 :427
Furniture, equip & machinery
3121182
Constructiorn in progress
520,915
TOTAL
81485 :334
Accumulated depreciation
X787833_
NET BOOK ALUE
6.3351021
Reclassifications Additions
186,983
53304
(13242871
34,204
41134
57.119
95,457
228,862
..w 4
Ending
Deductions Balance
$114813890
33789 07307,844
3213540
38, 747'
33709 814973021
3,759 2,29 5,480
$672011615
Buildings are depreciated over an estimated useful life of 40 years,-' :1 n . prpvernents Over an
estimated useful .life of 3 ' years, and equipment over are, estimated u. fi l "life of 5 to 10 years.
The straight -line method is used in computing depreciation.. For the' twe.l e. ,months -ended June
302 2007, the sum of $228,862 was charged against earnings. -
NOTE D -- ACCOUNTS RECEIVABLE :. ;..:..
At June 30,' 2007; the agency has amounts due ftor % tenants in the amount of $29,240. An
allowance for uncollectible accounts in- the amount of $2,584 has been established which
management feels is adequate. In addition, the agency has completed all the requirements
necessary to receive $17,640 in grants from the D. S. Department of -Housing and Urban
Development. There are other miscellaneous accounts receivable in. the amount of $5,665.
NOTE E --- DEFERRED CHARGES
The agency has purchased. insurance policies from various insurance companies,. of which
$29,136 was une pired, pre rata, at .June 30, 2007. This is more than the aM- unt that could -be
realized upon cancellation of the policies. The agency has purchased commercial insurance
coverage to cover claims arising from the use of private automobiles by employees on agency
business, automobile property damage and liability, losses from fire and other natural disasters,
employee bond, and directors liability, and workers' compensation. In addition, -the agency has
maintenance ,materials on hand with a cost of $11,744.
NOTE F — INTERGOVERNMENTAL REVENUES
During the twelve months ended June 30, 2007; the agency recel r -':11:.'t 25:,' 89 from the U. ' S.
Department -of Housing and Urban Development as operating su'bsidie's,. rental-'as sistance n-d
capital. grant funds. - These amount -are reflected in -the' - financial . statements as
intergovernmental -revenues.
See Independent Auditor's Deport
23
HOUSING AUTHORITY of THE CITY OF SALINA, KANSAS
NOTES To THE FINANCIAL STATEMENTS'
JUNE 3 , 2007
NOTE G — ACCOUNTS PAYABLE
Accounts 'ayable represent amount due vendor in the normal course of business in the
amount of $73,039, Including amounts withheld. from employees, and the employer's share of-
employee benefits.
NOTE H — ACCRUED EXPENSES
Amounts -due employees for compensated absences. and. the- related- employee benefit
expenses were $49,024.' of this amount, $4,903 amounts'-due. to. paid in the next
twelve months, and $44,121 expected to b paid in future periods: - Th- ; aqen cy also maintains
escrow accounts for tenants who are participating in the Family Self Su'uffi i bey Program. As of
June 30, 2007, the agency had $5,684 held in these. escrow account
NOTE I — TENANT SECURITY DEPOSITS
The agency i holding the sun of $71,256 to secure payment of jents . and to assure that
vacated unit's are left clean and habitable. After a tenant moves out, if there are unpaid rents or
the housing unit must be cleaned or repaired, these amounts are deducted from the deposit and
the balance is returned to the tenant.
NOTE J — DEFERRED REVENUES
As of .June 30# 2007, the .housing authority had received $8,239 of rents from tenants for July
2007. +
NOTE FEDERAL AND STATE GRANTS
In the normal course of operations, the agency receives grant funds from various Federal and
State agencies. The graint programs are subject to audit by agents of the granting authority, the
purpose of which is t ensure. com liance with conditions precedent to -.the granting of .funds.
Any liability for reimbur -serpent- that may arise as the result of these audit '. is not believed to be
material. .......: _
Yi
NOTE L — ADVERTISING COSTS;
The Agency has elected to expense all advertising costs as incurred.
NOTE -M - RISK MANAGEMENT
The Authority is exposed to various risks of loss ' related to torts; theft' of, damage to and
destruction of assets, errors and omissions; injuries to employees; and natural disasters for
which the Authority purchases commercial insurance.
During the year ended June 30, 2007, the Authority did not reduce. insurance 'coverage from
levels in place during the prior gear. No settlements have exceeded overage levels in place
during the past three fiscal years.
NOTE N — ACCOUNTS PAYABLE OTHER GOVERNMENT
As of June 30, 2007, the organization .owed $23,223 to the City of Salina for PILOT. (Payment in
Lieu of Taxes) expense.
HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS
NOTES To TIDE FINANCIAL STATE M ENT
JUNE 30g 2007
NOTE o PENSION PLAN :. .: ...
Plan description. The non - school municipality participates in- the a Public Employees
Retirement ent Sy tem KPERS , a cost - sharing multiple - employer defined benefit pension plan as
provided by K.S.A. 74-4901, et seq. .. KPEI S provides retirement benefits, life insurance,
disability income benefits, and death benefits. Kansas law establishes and amends benefit
provisions. KPEIS issues a publicly available financial report that includes financial statements
and required supplementary information.' That report may be obtained by writing KPE S (400
VIA 3 Avenue, Suite 200, Topeka, KS 66603 -3925) or by calling 1 -300- 228 -0366.
-Funding Policy. K.S.A. 74-4919 establishes the KPEI S member-employee contribution rate at
4% covered salary. The employer collects and remits member- employee contributions
a . according to the provisions of section 414h of the internal Revenue Code. State laver provides
that the employer contribution - rate be determined annually based on the results of a n annual
actuarial valuation. KPERS is funded on' an actuarial reserve- basis. State lair sets a limitation
on annual increases in the contributions rates for. KPE S employers. - --The non-school
municipality ern ployer contributions to XPE S for the period of July 1, 2006 through December
31, 2006 was 4.81%, and from January 1, 2007 through June 3 # 2007 was 5.31%. equal to the
statutory required contributions for each period. The employer corntribtions for the years ended
June 30, 2007# 2006 and 2005 were $20,130, $17,047 and $15,182-,.'re'spectively.
NOTE P — PRIOR PERIOD A JUSTEMENT
In order to correct errors made in prier }fears, an' entry was maid to d'e'crease.ne't assets in the
amount of $'133,224. $137,305 was. the .result of HAP money. recaptured by HUD for a P rior
year. '$374 was to correct capitalization of assets from a prior year. $4 5 was to correct portability
expenses.
See Independent- udit r' ,Report
25
SUPPLEMENTAL INFORMATION
HOUSING AUTHORITY -OF THE CITY OF SALINA
SCHEDULE of FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30' 2007
SUMMARY OF AUDIT RESULTS
1. The auditor's report expresses an unqualified opinion on the financial statements of the
Housing Authority of the city of Saline.
2. No material weaknesses were identified during the audit o 'the financial statements.
3. No instances on noncompliance material to the fin not l.-st tennents of the' Housing Authority
of the City of Saline were disclosed during the audit.
4. No significant deficiencies, were disclosed during the audit of in' t rnal control over major
fed r l award programs.
5. The auditor's report on compliance for the major federal award programs for the Housing
Authority of the City of Salina expresses are unqualified opinion.
6. Audit findings relative to the major federal award programs for the Housing Authority of the
City of Salina are reported In this Schedule.
The programs tested as major programs included:
U.S. Department of Housing and Urban Development
Low lent Public Housing — CFDA## 14-850a
D.S. Department.of Housing and Urban Development
Housing Choice Vouchers --- CFD ## 14-871
U.S. Department of Housing and Urban Development.
r
Public Housing C.pital Fund Program — CFDA# 1 -'
:. . The threshold for distinguishing Types A and B programs was $300,000.
8. The Housing Authority of the City of Salina was not terrrrin' d to' a lover -risk auditee.
FINDINGS - FINANCIAL STATEMENTS AUDIT
None
FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAMS AUDIT
There were no findings or questioned costs for the year ended .June Sot 2007.
26 , .
HOUSING AUTHORITY OF THE CITY OF SALINA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30,'2007
All of the prior year audit findings, 2006 -1 have been closed.
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NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The accompanying schedule of expenditures of federal awards includes the federal. grant activity of the
aina Housing Authority HUD Project No. KS038, and is presented ors tine accrual basis. The
information in this schedule is presented in accordance with .the re uirernents of OMB Circular A -133J.
Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented
In this schedule may differ from amounts presented ire, or used in the preparation of, the basic financial.
statements.
See accompanying notes.to financial statements....
AI A HOUSING AUTHORITY.
HUD PROJECT NO. KS0
SCHEDULE- OF EXPENDITURES OF FEDERAL AWARDS
r .
YEAR ENDED JUNE 30,2007
FDA ##
NAME F FEDERAL PROGRAM
i TAN E
1 4.238
Sheffer Care Plus
.1,521
1 4.239
HOME.Investment Partnerships Program
68,142
14.a
Low Rent Public Housing
326,976
' 14.871
i
Housing Choice Vouchers'
1,191,080
14.872
Public Housing Capital. Fund Project
324,1 57
.
Total Assistance
1,910,976
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The accompanying schedule of expenditures of federal awards includes the federal. grant activity of the
aina Housing Authority HUD Project No. KS038, and is presented ors tine accrual basis. The
information in this schedule is presented in accordance with .the re uirernents of OMB Circular A -133J.
Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented
In this schedule may differ from amounts presented ire, or used in the preparation of, the basic financial.
statements.
See accompanying notes.to financial statements....