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I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA TABLE OF CONTENTS Financial Section Independent Auditor's Report Management Discussion & Analysis Statement of Net Assets Statement of Revenue, Expenses and Changes in Net Assets Statement of Cash Flows Notes to Financial Statements Special Reports Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standatds Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 Schedule of Findings and Questioned Costs Schedule of Prior Year Audit Findings Supplemental Information Financial Data Schedules Schedule of Expenditures of Federal Awards PAGE 1-2 3-9 10 11 12 - 13 14 - 20 21 - 22 23 - 24 25 ,26 27 - 37 38 I I I I I I I I I I I I I I I I I I I ~ (j)ennis J. P,awardS, C(P}l, CJ>.}l. 6081few Jersey · C1'. o. (8o~ 461 .1foCton, 1\S 66436 (620) 433-7199 INDEPENDENT AUDITOR'S REPORT To the Board of Commissioners of the Housing Authority of the City of Salina We have audited the accompanying financial statements of the Housing Authority of the City of Salina, HUD Project KS038, as of June 30, 2008, 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 material misstatement. An audit includes examining, on a test basis, evi~ence 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 present fairly, in all material respects, the financial position of the Housing Authority of the City of Salina as of June 30, 2008, and the results of its operations and changes in net assets and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. In accordance with "Government Auditing Standards", we have also issued a report dated February 16, 2009, on our consideration of the Housing Authority of the City of Salina's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements 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 Discussion and Analysis on pages 3 through 9 is not a 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 inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 1 Member PCPSlAICPA Alliance for CPA Firms Members of the American Institute of Certified Public Accountants and Kansas Society of Certified Public Accountants I I I I II I I I I I I I I I I I I I I 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 of 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 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. ~ 9. &iwOJlJJloJ CPft, Pit Holton, Kansas February 16, 2009 2 I I I I I I I I I I I I I I I I I I I Housing Authority of the City of Salina, Kansas Management's Discussion & Analysis (MD&A) June 30, 2008 Management's Discussion & Analysis (MD&A) is an element of the reporting model adopted by the Govemmental Accounting Standards Board (GASB) in their StIJte11Jent No. 34 Basic Financial Statements - and Monagem~s DisCllSJion & .hza!Jsis - jJr State anti LJcaJ Governments issued in June 1999. Our discussion and analysis of the financial performance for the Housing Authority for the City of Salina, Kansas, provided an overview of the financial activities for the fiscal year ended June 30, 2008. Please read the MD&A in conjunction with the Housing Authoritis financial statements. Financial HighHghts . Assets: Total assets inaeased by $40,906 from $7,938,883 as of JUne 30, 2007 to $7,979,789 as of June 30, 2008. Cuaent assets increased by approximately $106,849 when compared to 2007 while net capital assets decreased by approximately $58,071 as depreciation expense for the cuaent year exceeded asset additions during 2008. . Labilities: Total liabilities were $454,971 as of June 30, 2007, but decreased to 371,808 as of June 30, 2008. Due to casualty loss insucmce proceeds, that income is recorded in full until the repairs are made. More of that work was completed in fiscal year 2oo8.and consequendy the deferred revenue, or liability, has decreased. . RevenNe: Total revenue decreased from $2,208,299 for the year endedJune 30, 2007, to $2,168,513 for the year ended June 30, 2008, a decrease of $39,786. Tenant revenue increased $42,769; other income increased $87,905, while program grants and subsidies decreased $170,460. . Expenses: Total operating expenses increased slightly from 2007 to 2008. Total operating expenses were $2,126,450 for the year ended June 30, 2007, but increased $11,693 to $2,138,143 for the year ended June 30, 2008. Administrative expenses decreased $21,340 or 50/0 but all other expense categories increased in 2008. 3 I I I I I I I I I I I I I I I I I I I Housing Authori1y of the City of Salina, Kausas Management Discussion &.AnaIysis For accounting purposes. the Housing Authority is categorized as an enterprise fund Enterprise funds account for activities similar to those found in the private business sector where the detf"1'm1nlltion of net income is necessary or useful to sound financial9dm1n1!ltration. Enterprise funds are reported using the full accrual method of accounting in which all assets and all liabilities associated with the o~tion 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, is an important finllncia] indication. Overview of Financial Statements This annual report includes this Management Discussion & Analysis report, the Basic Financial Statements and the Notes to the Financial Statements. The Housing Authority's financial statements are presented as fund level financial statements because the Housing Authority only has proprietary funds. The financial statements of the Housing Authority teport information of the Housing Authority using accounting methods similar to those used by private sector companies. These statements offer short-term and long-tenn financial information about the Housing Authorities activities. The Statement of Net Assets includes all the Housing Authority's assets and liabilities and provides information about the nature and amounts of investments in resouzces (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 Revenues, Expenses and Changes in Net Assets. This statement measures the success of the Housing Authoritfs operations over the past year and can be used to detennine 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 teSUlting from opemting. investing and financing activities and provides answers to such questions as where did cash come from, what was cash used for and what was the change in the cash balance during the reporting period Notes to the financial statements provide additional information that is essential to a full undexstanding of the data provided in the basic financial statements. The Financial Data Schedule (IDS) referenced in the section of Supplemental Information Required by BUD is not included in this report. Due to the conversion to Asset Management, the management model implemented by BUD, the FDS template is yet to be finalized by BUD and therefore the FDS cannot be completed at this time. BUD has established Uniform Finlmcial Reporting Standards that require the Housing Authority to submit financial information electronically to BUD using the FDS format. This financial information has not been electronically 4 I I ,I I I I I I I I I I I I I I I I I Housing Authori1)T of the Ci1)T ofSaJina, Kansas Management Discussion & Analysis transmitted to the Real Estate Assessment Center (REAq at this time due to the constraint mentioned above. Financial Analysis One of the most important questions asked about the Authoritys finances is, "Is the Housing Authority as a whole better off, or worse off, as a result of the achievements of the reported fiscal year?" The information presented in this Management Discussion & 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 Changes in Net Assets. The Statement of Net Assets provides a snmm9ry of the Housing Authority's assets and liabilities as of the close of business on June 30, 2008. The Statement of Changes in Net Assets snmm9rizes the revenues and sources of those revenues generated during the year ended June 30, 2008 and the expenses incurred in operating the Housing Authority for the year ended June 30, 2008. The Housing Authority accounts for its housing activities in several progmms. The main Housing Authority progmms are a low rent progmm that provides housing for qn9lifiM tenants, a capital fund program that the Housing Authority uses for improvements to its low rent property, and a housing choice voucher program that provides rental assistance to tenants living in private housing. The following analysis focuses on the net assets and the change in net assets of the Housing Authority as a whole and not the individual prognms. Net Assets June 30 Increase 2008 2007 (Decrease) CutteD.t Assets, Net of Inter-program $1,825,296 $1,718,449 $106,847 Capital Assets, Net 6,143,598 6,201,615 -58,017 Non-Cuttent Assets 10,895 18,821 -7,926 Total Assets $7,979,789 $7,938,885 $40,904 CutteD.t Liabilities, Net of Inter-program $341,912 $405,166 -$63,254 Non-CutteD.t Liabilities 29,896 49,805 -19,909 Total Liabilities $371,808 $454,971 -$83,163 Net Assets: Invested in Capital Assets, Net of Debt $6,827;376 $6,201,615 $625,761 Restricted Assets 280,222 0 280,222 Unrestricted Assets 500,383 1,282,297 -781,914 Total Net Assets $7,607,981 $7,483,912 $124,069 5 I I I I I I I I I I I I I I I I I I I Housing Authority of the City of Salina, Kansas Management Discussion & Analysis Assets: Total cuuent assets were $1,718,449 as of June 30, 2007 and increased by $106,847 to $1,825,296 as of June 30, 2008. The balance of cash, including investments, increased by $85,840 as of June 30, 2008. This increase relates to money received from insmance claims that had not yet been used to restore the damaged property as of year end. Increases in other receivables, prepaid expenses and inventories also contributed to the increase in current assets. Net capital assets increased to $6,827,376 as of June 30, 2008 from $6,201,615 as of June 30, 2007. This increase of $625,761 in net capital assets is comprised of capital asset additions of $859,806 less current year depreciation expense of $234,045. Liabilities: Total current liabilities decreased from $405,166 to as of June 30, 2007, to $341,912 as of June 30, 2008, a decrease of $63,254. But this is still higher than the liabilities as of June 30, 2006, at that time the cw:rent liabilities, were $161,597. Because of a casualty loss in fiscal year 2006 and insw:ance proceeds received in fiscal year 2007, the proceeds are reco.rded as deferred revenue as the restoration of the damaged property is completed. The amounts owed to vendors increased by $9,979 from $11,841 as of June 30,2007 to $21,820 as of June 30, 2008. Net Assets: Net assets increased by $124,069 as of June 30, 2008 as total revenue of $2,359,284 exceeded total operating expenses of $2,235,215. For June 30, 2008 there was $280,222 set aside for Restricted Assets for the Section 8 program. This represents funding that can only used for housing assistance payments provided other mandates are followed. E~dA.hle Fund BS1I1A.ft("p~ The expendable fund balance of an authority is a measure of liquidity of the entity. If all of the authoritis current assets, less materials inventory, are converted to cash, and the authority pays all the cuuent liabilities, the amount of cash left on hand is the expendable fund balance. The expendable fund balance was approximately $1,178.000 at the end of the 2008 fiscal year. The number of months in expendable funds is a measure of how many months the authority could operate under cuuent conditions without any additional income. The number of months in expendable funds is calculated by dividing the total expenses for the year, less depreciation and HAP expense, by twelve (12) to arrive at the average monthly expenses. The expendable fund balance is then divided by the average monthly expenses to arrive at the number of months expendable fund balance. The ratio as of June 30,2008 was approximately 15.03 months. 6 I I I I I II I I I I I I I I I I I I I 'Housing Authority of the City of SaIioa, Kansas Management Discussion & Analysis Changes in Net Assets for the Year Ended June 30, 2008 Increase 2008 2001. (pecrease) Revenue: Tenant Revenue $333,846 $291,077 $42,769 Fedeml Grants & Subsidy 1,835,628 1,925,689 (90,061) Investment Income 52,879 65,904 (13,025) Other Income 136,931 49,026 87,905 Total Revenue $2,359,284 $2,331,696 $27,588 Expenses: Administtative $475,323 $495,137 ($19,814) Tenant Services 30,216 18,463 11,753 Utilities 16,338 12,312 4,026 Routine Maintenance 289,985 254,020 35,965 Geneml Expenses 129,450 101,295 28,155 Non-Routine Expenses 0 32,179 (32,179) Casualty Losses 97,072 20,375 76,697 Housing ~ce Payments (HAP) 962,786 984,182 (21,396) Depreciation 234,045 228,862 5.183 Total Operating Expenses 2,235,215 $2,146,825 $88,390 Increase (Decrease) in Net Assets $124,069 $184,871 ($60,802) Revenue: The authority bas two basic sow:ces of revenue. Rent and other tenant chaIges and funds received from the Department of Housing and Urban Development (HUD) in the form. of operating subsidies, tenant assistance, and capital improvement grants. Tenant revenue increased by approximately 9% for the current year from $291.077 for the year ended June 30, 2007 to $333,846 for the year ended June 30, 2008. The number of unit months leased was nearly the same for the two years. Tenant rents are also affected by the tenant's reported income and other tenant attnbutes. The atnount of rent that a tenant pays increases as the tenant's income increases. Fedeml grants and subsidy revenue decreased from $1,925,689 for the year ended June 30, 2007, to $1,835,628 for the year ended June 30, 2008, for a decrease of $90,061. Section 8 HAP assistance decreased $21,396, the HAP assistance is also determined by tenants reported income and other tenant attnbutes. HAP assistance will decrease as the tenant's income increases. Capital grant revenue increased by over $80,000 and low rent subsidy decreased by $24,772. 7 I I I I I i I I I I I I I I I I I I I I Housing Authority of the City of Salina, Kansas Management Discussion & Analysis Investment income decreased $13.025 as the amount earned for the year ended June 30. 2007 was $65,904 and $52.879 for the year ended June 30. 2008. The rate of retum on investments declined which attributed to the decrease. Other income increased over the previous fiscal year due to the casualty loss insurance proceeds. ~nRes: Administrative expenses decreased by $21. 340 from $496,663 for the year ended June 30.2007 to $475,323 for year ended June 30. 2008. Tenant services expenses increased by $11,753 with the addition of the public housing Family Self Sufficiency gcm.t which allowed for the employment of a new staff member to assist public housing tenants achieve self sufficiency. Also utilities expense increased by 33% from $12.312 for the year ended June 30. 2007 to $16,338 for the year ended June 30.2008. Routine maintenance expenses increased by $3.796 from $286.199 for fiscal year 2007 to $289.985 for fiscal year 2008. Capital AssetB: At June 30. 2008 the Housing Authority had $6.143.598 invested in net capital assets. This amount represents a net decrease of $58.017 in net capital assets when compared to net capital assets as of June 30, 2007. The Salina Housing Authority office building suffered an electrical fire in December 2007 and while the damages were covered by insurance, the structw:al repairs. replacement of office equipment, which were two computers and two printets. were considered capital expenditures. Other cuttent year major additions were an additional printer and replacement of the backup tape drive. During the CI1tteD.t year. some work in progress projects were completed and certain assets of $39.141 were transferred from consttuction in progress to other capital assets categories. The Housing Authority still has approximately $61,000 in Capital progum funds to spend on future improvements. 8 II I I I I I I I I I I I I I I I I I I Housing Authori1}1 of the City of Salina, Kansas Management Discussion & Analysis Capital Assets at Year End (Net of Accumulated Depreciation) June 30, 2008 Land Buildings Furniture, Equipment & Macbinety, Dwellings Furniture, Equipment & Macbinety, Admin Leasehold Improvements Construction in Progress Subtotal Accumulated Depreciation Net C itDl Assets Debt .& of June 30, 2008, the Authority does not have any outsunrling debt, bonds, mortgages, or notes payable. There are some non-ament liabilities as of June 30, 2008, for employee compensated absences of approximately $23,000 and escrow amounts of $9,475 held for participating tenants of the FSS escrow program. Economic Factors The Housing Authority is dependant upon HUD for the funding of opemtions; therefore, the Housing Authority is affected both by fedeml budget and local economic conditions. The funding of programs could be siw'if1QlfJtJy affected by HUD and the 2008 and 2009 federal budgets. Contacting the Housing Authority's Financial Management Our financial report is designed to provide our citizens, taxpayers and aeditors with a general overview of the Housing Authority's finances and to show the Housing Authority's accountability for the money it receives. If you have questions about this report or wish to request additional financial information, contact Larry Pankratz, Executive Director, at the Salina Housing Authority, 469 s. Sib St., Salina, KS 67402, telephone number 785-827-00-1. 9 I I I I I I I I I I I -I I I I I I I I I SALINA HOUSING AUTHORITY HUD PROJECT KS03B STATEMENT OF NET ASSETS June 30, 2008 ASSETS Cunent Assets Cash and cash equivalents HUD accounts receivable Tenant accounts receivable, net Other receivables Prepaid expenses and other assets Current portion of note receivabe Investments Inventories Restricted: Cash and cash equivalents Investments Total cunent assets Non-cunent Assets Notes receivable. net of current portion $ 129,536 13,512 24,110 6,024 52,874 2,293 1,218,573 15,330 82,822 280,222 1,825,296 6,143,598 10,895 $ 7,979,789 Fixed assets""et of accumulated depredation TOTAL ASSETS UABlLmES, EQUITY, AND OTHER CREDrr8 Cunent Liabilities Accounts payable - 90 days Accrued wages/payroll taxes Accrued compensated absences - current Accounts payable - PHA project Accounts payable - other government Tenant security deposits Deferred revenues Other current liabilities Total cunent liabilities $ 21,820 37,452 2,269 113 26,614 73,347 177,495 2,802 341,912 9,475 20,421 29,896 371,808 6,143,598 280,222 1,184,161 7,607,981 $ 7,979.789 Noncurrent LIabilities Noncurrent Liabilities - other Accrued compensated absences - noncurrent Total noncunent liabilities Total Uablllties Net Assets Invested in capital assets net of relatecl debt Restricted net assets Unrestricted net assets Total equity and other aedits TOTAL LlABILlTIES,EQUITY, AND OTHER CREDITS The accompanying notes are an integral part of these finanical statements. 10 I I I I I I I I I I I I I I I I I I I SALINA HOUSING AUTHORITY HUD PROJECT KS038 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED June 30, 2008 REVENUES Tenant revenue $ 333.846 Program grants-rent subsidies 1,697,736 Other income 136,931 Total revenues 2,168,513 OPERATING EXPENSES Current Administrative 475,323 Tenant services 30,216 Utilities 16,338 Maintenance 289,985 General 129,450 Housing assistance payments 962,786 Depreciation 234.045 Total operating expenses 2,138.143 Operating income (loss) 30,370 Non-operating revenues (expenses) Interest income 52,879 Casualty losses (97,072) (44,193) Income (loss) before contributions and transfers (13,823) Capital grants 137,892 Operating transfers in Operating transfers out Excess (deficiency) of revenues over (under) expenses 124,069 Net assets at beginning of the year 7,483,912 Net assets at the end of the year $ 7,607,981 The accompanying notes are an integral part of these finanical statements. 11 I I I I I I I I I I I I I I I I I I I SAUNA HOUSING AUTHORITY HUD PROJECT KS038 STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES YEAR ENDED June 30. 2008 CASH FLOWS FROM OPERAnNG ACTMrIES Cash received from tenants $ 336,392 Cash received from grants/subsidies 1,697,736 Cash received from other sources 97,487 Cash paid for operating expenditures Administration (486,288) Tenant services (30,216) Utilities (16,338) Maintenance (293.571 ) General (198,841) Housing assistance payments (1.007,428) Net cash provided (used) by operating activities 98,933 CASH FLOWS FROM CAPITAL AND RELATED ANANCING ACTIVITIES Tenant security deposits and FSS escrows 65.108 Purchase of fixed assets (176.028) Casuaty losses (97.072) Cash received from capital grants 142,020 Net cash provided (U8ed) by financing act1v1t1e8 (65,972) CASH FLOWS FROM INVESTING ACTIVITIES Cash received from interest 52,879 (Increase) decrease in investments (338.837) Gain on sale of assets Net cash provided (used) by Investing activities (285.958) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (252.997) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 465,355 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 212,358 The accompanying notes are an integral part of these finanical statements. 12 I I I I I I I I I I I I I I I I I I I SAlNA HOUSING AUTHORITY HUD PROJECT KS038 STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES YEAR ENDED June 30,2008 CASH FLOWS FROM OPERATING ACTIVITIES Excess (deficiency) of revenues over (under) expenditures Adjustments to reconcile excess (deficiency) of revenues over (under) exenditures to net cash provided by operating activities Depreciation Increase or decrease in: 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 $ 30,370 234,045 2,546 (44,642) 7,567 (23,738) (3,586) (10,965) (26,334) (47,011)O(23,110) 3,791 $ 98,933 The accompanying notes are an integral part of these finanical statements. 13 I I I I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2008 NOTE A - SUMMARY OF SIGNIFICANT POLICIES Oruanization The Authority was created under the laws of the State of Kansas. The 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 Government through the U.S. Department of Housing and Urban Development (HUD). The financial statements of the Authority have been prepared in accordance with accounting principles generally accepted in the United 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 Accountina and Financial Reoortina Standards. the Authority has elected not to apply to its proprietary activities Financial Accounting Standards Board Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins of the Committee of Accounting Procedure issued after November 30, 1989. Financial ReDortina Entitv 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, (b) 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 with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Based on these criteria, there are no additional agencies or entities which should be included in the financial statements of the Authority. Basis of accountina. measurement focus. and financial statement Dresentation The accounts of the Authority are organized on the basis of funds, each of 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 liabilities (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 expenses are recognized in the period in which the liability is incurred. See Independent Auditor's Report 14 I I I I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2008 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) The Authority distinguishes between operating and nonoperating revenues and 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 as nonoperating 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. Budaetarv Process The Authority establishes a budget for the fiscal year and is adopted by the Board of Commissioners. Cash and Inve&ments The Authority's deposits can only be invested in the following HUD approved investments: direct obligations of the federal government backed 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-market deposit accounts, municipal depository fund, super now accounts, certificate of deposit, repurchase agreements, sweep accounts, 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 an allowance for uncollectible account and revenues net of uncollectibles. Allowances are reported when accounts are proven to be uncollectible. Preoaid Items Prepaid balances are for payments made by the Authority in the current year to provide services occurring in the subsequent fiscal year. Inventorv Inventories consist of supplies and are recorded at the lower of cost or market on a first-in, first- out basis. Caoital Assets and Deoreciation Property and equipment are stated at actual or e&imated historical cost, net of accumulated depreciation. Contributions of assets are recorded at fair market value at the date donated. See Independent Auditor's Report 15 I I I I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2008 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD) The Authority generally capitalized assets with a cost of $500 or more as purchases and construction outlays occur. Depreciation has been calculated on each class of depreciable property using the straight-line method. Estimated useful lives are as follows: Furniture and fIXtures Equipment Use of Restricted/Unrestricted Net Assets 5-10 years 3-10 years 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 Interfund receivables and payables arise from interfund transactions and are recorded by all funds affected in the period in which 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 reporting entity are classified as interfund 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 GASa 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. Comoensated Absences Employees receive all unused vacation time when they terminate as long as they have passed their probationary period. Employees will only receive sick leave upon retirement from the Housing Authority. See Independent Auditor's Report 16 I I I I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2008 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'O) Income Taxes The Authority is a governmental subdivision of the State of Kansas and is exempt from Federal and State income taxes. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues, expenditures, expenses, and other disclosures. Accordingly, actual results could differ from those estimates. Leases The majority of leases and subleases are short-term operating leases. Schedule of Exoenditures of Federal Awards 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 in 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-133, Audits of States, Local Governments and Non-Profit Organizations. NOTE B - CASH AND CASH EQUIVALENTS. At June 30, 2008, the reconciled amount of the agency's deposits were $1,711,103 and the bank balance was $1.729,452, 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 are considered cash equivalents. It is the policy of the agency to be secured by collateral valued at market or par, whichever is lower, less the amount of the insurance provided by the Federal Deposit Insurance Corporation. The agency's deposits were secured by $864,176 FDIC insurance and the balance of $865,276 was secured by securities pledged by the institution in which they were on deposit. See Independent Auditor's Report 17 I I I I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2008 NOTE C. PROPERTY AND EQUIPMENT Property and equipment is recorded at the cost of acquisition. Depreciation is provided over the estimated useful lives of the assets as a charge against earnings. Most property and equipment is acquired with grants from Federal, state, and tribal governments, so no interest costs are 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 30, 2008 Land Buildings Furniture, equip & machinery Construction in progress TOTAL Accumulated depreciation NET BOOK VALUE Beginning Balance $ 1,481.891 6,307,844 321,540 385.747 8,497,022 2.295.407 S 6201615 Reclassifications Additions 174,033 2,193 (176.226) 32,676 6,267 137.085 176,028 234.045 S (58 017\ S Ending Deductions Balance $ 1,481,891 6.514,533 330,000 346.606 8,673,050 2.529.452 S 6.143.598 S Buildings are depreciated over an estimated useful life of 40 years, land improvements over an estimated useful life of 35 years, and equipment over an estimated useful life of 5 to 10 years. The straight-line method is used in computing depreciation. For the twelve months ended June 30, 2008 the sum of $234,045 was charged against earnings. NOTE D - ACCOUNTS RECEIVABLE At June 30, 2008, the agency has amounts due from tenants in the amount of $24,110. An allowance for uncollectible accounts in the amount of $19,581 has been established which management feels is adequate. In addition, the agency has completed all the requirements necessary to receive $13,512 in grants from the U. S. Department of Housing and Urban Development. There are other miscellaneous accounts receivable in the amount of $6,024. NOTE E - DEFERRED CHARGES The agency has purchased insurance policies from various insurance companies, of which $52,874 was unexpired, pro rata, at June 30,2008. This is more than the amount 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 director's liability, and workers' compensation. In addition, the agency has maintenance. materials on hand with a cost of $15,330. NOTE F -INTERGOVERNMENTAL REVENUES During the twelve months ended June 30, 2008, the agency received $1,835,628 from the U. S. Department of Housing and Urban Development as operating subsidies, rental assistance and capital grant funds. These amounts are reflected in the financial statements as intergovernmental revenues. See Independent Auditor's Report 18 I I I ! I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2008 NOTE G - ACCOUNTS PAYABLE Accounts payable represent amounts due vendors in the normal course of business in the amount of $71,662, 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 $22,690. Of this amount, $2,269 represents amounts due to be paid in the next twelve months, and $20,421 expected to be paid in future periods. The agency also maintains escrow accounts for tenants who are participating in the Family Self Sufficiency Program. As of June 30, 2008, the agency had $9,475 held in these escrow accounts. NOTE 1- TENANT SECURITY DEPOSITS The agency is holding the sum of $73,347 to secure payment of rents and to assure that vacated units 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, 2008, the housing authority had received $2,209 of HAP for July 2009, the agency also had $171,055 in insurance proceeds not expended. In addition the housing authority had $4,231 in Capital Funds advanced but not yet expended. NOTE K - FEDERAL AND STATE GRANTS In the normal course of operations, the agency receives grant funds from various Federal and State agencies. The grant programs are subject to audit by agents of the granting authority, the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability for reimbursement that may arise as the result of these audits is not believed to be material. 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, 2008, the Authority did not reduce insurance coverage from levels in place during the prior year. No settlements have exceeded coverage levels in place during the past three fiscal years. See Independent Auditor's Report 19 I I I I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2008 NOTE N -ACCOUNTS PAYABLE OTHER GOVERNMENT As of June 30, 2008, the organization owed $26,614 to the City of Salina for PilOT (Payment in lieu of Taxes) expense. Note 0 - DEFINED BENEFIT PENSION PLAN Plan' description. The Housing Authority of the City of Salina participates in the Kansas Public Employees Retirement System (KPERS), a cost-sharing multiple-employer defined benefit pension plan as provided by K.S.A. 74-4901, et seq. KPERS provides retirement benefits, life insurance, disability income benefits, and death benefits. Kansas law establishes and amends benefits provisions. KPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to KPERS (400 SE 8th Avenue, Suite 200; Topeka, Kansas 66603-3925) or by calling 1-800-228- 0366. Funding Policy, K.S.A. 74-4919 establishes the KPERS member-employeecontribution rate of 4% of covered salary. The employer collects and remits member-employee contributions according to the provisions of sedion 414 (h) of the Internal Revenue Code. State law provides that the employer contribution rate be determined annually based on the results of annual aduarial valuation. KPERS is funded on an aduarial reserve basis. State law sets a limitation on annual increases in the contribution rates for KPERS employers. The employer rate established by statute for fiscal year July 1, 2007 through June 30, 2008 is 5.31 % for the first six months and 5.93% for the last six months. The Housing Authority of the City of Salina's employer contributions to KPERS for the years ending March 31, 2008, 2007 and 2006 were $16,659, $23,373, and $24,838, respectively, equal to the statutory required contributions for each year. See Independent Auditor's Report 20 I I I I I I I I I I I I I I I I I I I SPECIAL REPORTS I I I I, I I I I I I I I I I I I I I I ~ (j)ennis J. fEcfwartfs, CP}I, P.}I. 608 gfew Jersey. CRO. <Box. 461. J{o~on, 1(S 66436 (620) 433-7199 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MA TIERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of 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 government) as of and for the year ended June 30, 2008, and have issued our report thereon dated February 16, 2009. 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. Internal Control Over Financial ReDOrtina In planning and performing our audit, we considered the Housing Authority of the City of Salina'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 internal 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 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 accounting 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 be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting we consider to be material weaknesses. as defined above. 21 Member PCPS/AICPA Alliance for CPA Firms Members of the American Institute of Certified Public Accountants and Kansas Society of Certified Public Accountants I I I I I I I I I I I I I I I I I I I ComDliance and Other Matters As part of obtaining reasonable assurance about whether the Housing Authority of the City of Salina's financial statements are free of material misstatement, we performed tests of its 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 not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the audit committee, management, others within the organization and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ~ Q. fdw{).JLdo C-PA, Pit Holton, Kansas February 16, 2009 22 I I I I I I I I I I I I I I I I I I I ~ (j)ennis J. CEtfwarcfs, CCP.JI, CP..JI. 608 New Jersey. (['.0. (Bo~ 461. 1fofton, 7(S 66436 (620) 433-7199 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Board of Commissioners of the Housing Authority of the City of Salina ComDliance We have audited the compliance of the Housing Authority of the City of Salina (a special purpose govemment) with the types of compliance requirements described in the "U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplemenr that are applicable to each of its major federal program~ for the year ended June 30, 2008. 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 laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the Housing Authority of the City of Salina's management. Our responsibility is to express an opinion on the Housing Authority of the City of Salina's compliance based on our audit We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, "Audits of States, Local Govemments, and Non-Profit Organizations." Those standards and OMB Circular A-133 require that we plan and perfonn the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred 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 Housing Authority of the City of Salina's compliance with those requirements and perfonning 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 detennination of the Housing Authority of the City of Salina's compliance with those requirements. In our opinion, the Housing Authority of the City of Salina complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2008. 23 Member PCPS/AICPA Alliance for CPA Finns Members of the American Institute of Certified Public Accountants and Kansas Society of Certified Public Accountants I I I I I I I I I I I I I I I I I I I Internal Control Over ComDliance 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 Housing 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 our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control in accordance with OMS Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal 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 employees within a timely period, in the normal course of performing their assigned functions, to prevent or detect noncompliance with applicable requirements of laws, regulations, contracts and grants that would have a direct and material effect on a major federal program. A significant deficiency 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 laws, 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. A 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 laws, 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 defined 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-through entities and is not intended to be and should not be used by anyone other than those specified parties. ~ q ~CJ.Ado CPfJ-,PfJ- Holton, Kansas February 16, 2009 24 I I I I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2008 SUMMARY OF AUDIT RESULTS 1. The auditor's report expresses an unqualified opinion on the financial statements ofthe Housing Authority of the City of Salina. 2. No material weaknesses were identified during the audit of the financial statements. 3. No instances on noncompliance material to the financial statements of the Housing Authority of the City of Salina were disclosed during the audit. 4. No significant deficiencies were disclosed during the audit of internal control over major federal 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 an 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 Rent Public Housing - CFDA# 14-850a U.S. Department of Housing and Urban Development Housing Choice Vouchers - CFDA# 14-871 U.S. Department of Housing and Urban Development Public Housing Capital Fund Program - CFDA# 14-872 7. The threshold for distinguishing Types A and B programs was $300,000. 8. The Housing Authority of the City of Salina was determined to be a low-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 30, 2008. 25 I I I I I I I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2008 There are no prior year audit findings. 26 : i I I II I I I I I I I I I I I I I I I I I SUPPLEMENTAL INFORMATION I I I I I I I ! I I I I I I I I I I I I coon ~~ (')t-. on~ 1 ~.. ~~ !-< <II - j . i = roil - co on ~!i i ~!Q: .... I')i:!. j ~ t-... II fIj --v- 1<11 ~ .. e~ <D' .~ Qi ~ il;.l ~~ (It - NOO .ra El G>t-. ....ot e'l o G> ~ I') llIlo e~ ll.. (It -.- N ~fJ i ... on . ~ :e ~5 - := -f llo< (It = I t ! J . III 11 II Ii c jJ 11 -5u ~J t4 .sZ ::~ =~ ~ EI ! r: IIJ ~ ~ Ollie i!:i!l!s ~~i~ ii;!o -"'oc'" ~ue. OW _di :J:as-. ~fl IIJ II. 121" G>I') !~ 1~i::I! 1::/;;'- ~U!J I')<'l ...... NN G>.. ... .. I:: . ..... ~~ 1')", ...on ~ 1::;: NN ~~ :81:: I')<'l ....... 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KS038 FINANCIAL DATA SCHEDULES June 30, 2008 Une Item Deseription Total Projects KSO~1 No. 111 Cash-unrestricted $ 7S.512 $ 7S 512 114 Cash-tenant securitY deoosits 73347 73347 100 Total Cuh 151.859 151.859 122-620 Accounts receivable - HUD other oroiecls - Capital fund 3nS 3nS 122 AeeoUDtlI reeeivable - BUD other Droieetll 3.778 3.778 126 Accounts receivable - tenants 1283 1283 128 Fraud recovery 42,408 42408 128.1 Allowance for doubtful accounts - fraud (195811 (19 581l 129 Accrued interest receivable 3276 3276 120 Total reeeivables. net of alIowanee for doubtful aeeoUDtll 31.164 31.164 131 Investments - unrestricted 705527 705 527 142 Prepaid elCl)8nse6 and other assets 52.568 52 568 143 Inventories 15330 15330 144 Inter Droaram - due from 62.726 62 726 150 Total CurrentAssetll 1019.174 1019.174 161 162 163 164 165 166 167 168 160 net of aecumulated de redation 180 Total Noa-eurrent Assets 190 I Total Assets Is '-139,710 I s 6.139,710 I 312 Accounts oavable <= 90 daYS 17 174 17.174 321 Accrued ~ n taxes pavable 23.914 23.914 322 Accrued com absences - current DOrtion 1626 1626 333 Accounts pavable - other Government 26.614 26.614 341 Tenant securitY deoosits 73,347 73347 342-620 Deferred revenue - Capital fund 4.231 4.231 342-630 Deferred revenue - Other 171,055 171 055 342 Deferred revenue 175.186 175.286 345 Other current liabilities 2802 2802 310 Total Current IJablUtIes 320.763 320.763 Accrued com absenoes- Non-<:urrent Total NoD-Current IJabiJides 14,633 14 633 335.396 I 300 I Total Liabilities 335,396 I 508.l Invested in capital assets net of related debt 5,120.536 5,120,536 511.1 Restricted Net Assets - 512.1 Unrestricted Net Assets 683,nS 683.nS 513 Total EooitvlNet Assets 5.804.314 5.804.314 600 I Total LlablUtles and EquitylNet asseC8 Is 6,139,710 I 6,139,710 I s 32 I I I I I I I I I I I I I I I I I I I i.a i!:1!J:!co 3:.1:00 .... . 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I I . . . . j III J IU 1'1 II II m hi l 3 ~~a: ~~ !il~ ~i~8 - - -- ==~~ .... .., I I I I I I I I I I I I I I I I I I I I SALINA HOUSING AUTHORITY HUD PROJECT NO. KS038 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED June 30, 2008 CFDA # NAME OF FEDERAL PROGRAM ASSISTANCE 14.238 Shelter Care Plus $ 23,481 14.239 HOME Investment Partnerships Program 61,950 14.8508 Low Rent Public Housing 301,304 14.870 Resident Opportunity and Supportive Services 26,420 14.871 Housing Choice Vouchers 1,133.938 14.872 Public Housing Capital Fund Project 287,713 Total Assistance $ 1,634,806 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The accompanying schedule of expenditures of federal awards indudes the federal grant activity of the Sains Housing Authority HUD Project No. KS038, and is presented on the accrual basis. The infonnation in this schedule is presented in accoldance with the requirements of OMS Circular A.133, Audits of states, Local Governments, and Non-Profit Organizations. Therefore. some amounts presented in this schedule may differ from amoun~ presented in. or used in the preparation of, the basic financial statements. 38