Audit - 1993/1994
I-OJSI~ AUThOTIlY a= 11-£ CTIY a= SALINA
SALINA, KANSAS
REPrnT CJ-. ALÐIT a= FINAtCIAL ST A TEJv£NTS
AND
SUPPLEJvENT AL DATA Fæ 11-£
TW£L VE M:NfHS ENDED JUNE 30, 1994
CYNTIITA L - WARREN
Certified Public Accountant
Eufaula, Oklahoma 74432
I-OJSI~ AlJT1-ffiTIY a= TI-E cm a= SALINA
SALINA, KANSAS
JUNE 30, 1994
Table of Contents
Financial Statements
Independent Auditor's Report
Low Rent:
Exhibit A - Balance Sheet - Regulatory Basis
Exhibit B - Statement of Income and Expenses - Regulatory Basis
Exhibit C - Analysis of Surplus - Regulatory Basis
Section 8 Certificate:
Exhibit 0 - Balance Sheet - Regulatory Basis
Exhibit E - Statement of Income and Expenses - Regulatory Basis
Exhibit F - ,A,nalysis of Surplus - Regulatory Basis
Section 8 Voucher:
Exhibit G - Balance Sheet - Regulatory Basis
Exhibit H - Statement of Income and Expenses - Regulatory Basis
Exhibit I - Analysis of Surplus - Regulatory Basis
Home Ownership Program:
Exhibit J - Balance Sheet - Regulatory Basis
Exhibit K - Statement of Income and Expenses - Regulatory Basis
Exhibit L - Analysis of Surplus - Regulatory Basis
Notes to the Financial Statements
Supplementary Data
Schedule 1 - Computation of Residual Receipts and
Accruing Annual Contribution - Regulatory Basis (Low Rent)
Schedule 2 - Computation of Annual Contribution Earned - Project
Account and Operating Reserve Changes (Section 8 Certificate)
Schedule 3 - Computation of Annual Contribution Earned - Project
Account and Operating Reserve Changes (Section 8 Voucher)
Schedule 4 - Schedule of Federal Fi~ancial Assistance
Independent Auditor's Report on Supplementary Information -
Schedule of Federal Financial Assistance
Independent Auditor's Report on Compliance Based
on an Audit of the Financial statements Performed
in Accordance with C~vernment Auditing Standards
Independent .D,uditor's Report on Compliance with Specific
Requir~ents Applicable to Major Federal
Financial Assistance Programs
Independent Auditor's Report on Compliance with the
C~neral Requirements Applicable to Federal
Financial Assistance Programs
Independent Auditor's Report on Compliance With Specific
Requirements Applicable to \Jon-r:Bjcr' F9deral
Financial Assistance Program
Independent Auditor's Report on the I"ter-nal Contrc' s"~ ,c~_xe
Based on Sf" Audit of Financial Staterert:~ Df?~"':)r""E".'='
in ADcordance-J i t:!-' C',C)\/9rnmer t A.'...:d it i "g Star ,..J3~ ~ ::
Independer.t .Auditor's Re¡:crt on t'-:e I"terna' Ccnt-o~
Structure used ~n tv::'f"'irc::ter;ng Federa1
F~narc~al .Às-:.,i'_:c:arce Prog:",arn'::,
S"3t_:S 0" Prio:", Audit Findings
cind;ns's, Recomnendatio!~-:.., and P,ep~ ~e'::;
Activ;ties 0" the PHA
3
5
6
7
8
9
10
11
12
13
14
15
16
17
19
20
21
22
23
24
25
26
')7
~I
23
30
"33
" "
. ,
:?1
2
CYNTHIA L - WARREN
Certified Public Accountant
------------------------------------------------------------------.------------
-----------------~-------------------------------------------------------------
Route 4, Box 388
Eufaula, OK 74432
(918) 689-9590
INDEÆNDENT ALOITffi' S REPrnT
Board of Commissioners
Housing Authority of the
City of Sal ina
Post Office Box 1202
Salina, Kansas 67402-1202
U.S. Department of Housing and
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 State Avenue
Kansas City, Kansas 66101-2406
I have audited the accompanying financial statements of the Housing )~uthority of
the City of Salina as of June 30, 1994, and for the year 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. My responsibility is
to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditin¡3 standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit a"lso includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement pr'esentation.
I believe that my audit provides a reasonable basis for my opinion.
As described in note 2 to the financial statements, it is the policy of the
Housing Authority of the City of Salina to prepare its financial statements on
the basis of accounting practices prescribed or permitted by the U.S. Department
of Housing and Urban Development. These practices differ in some respects from
generally accepted accounting principles. Accordingly, the accompanying
financial statements are not intended to present financial position and results
of operations in conformity with generally accepted accounting principles. This
report is intended for filing with the U.S. Department of Housin!j and Urban
Development, or other simi lar agencies, and is not intended for' any other
purpose.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the Housing Authority of the City
of Salina as of June 30, 1994, and the results of its operations and changes in
surplus for the year then ended on the basis of accounting practices referred to
above.
My audit was made for the purpose of forming an opinion on the financial
statements taken as a whole" The accompanying financial information listed as
supplemental data in the table of contents is presented for purposes of
additional analysis and is not a required part of the financial statements of
3
Housing Authority of the City of Salina. Such information has been subjected to
the auditing procedures applied in the audit of the financial stater~nts and, in
my opinion, is fairly presented in all material respects in relation to the
financial statements taken as a whole.
~d~
Certified Public Accountant
September 14, 1994
4
I-OJSING AlfTI-mITY a= 11-£ CTIY a= SALINA
SALINA, KANSAS
ANNUAL cn.rrRIBUTICJ-. S CCM""RACT: FW-1114
PROJECT NLM3ER: KSO38002-OOS
L CM RENT
ST A 1EÞ£NT a= I~ AND EXPENSES - REGJLA TffiY BASIS
Fffi 11-£ lVt£L VE fvOffi-IS ENDED
JUNE 30, 1994
ASSETS
Cash
Accounts Receivable:
Tenants
Interprogram
Debt Amortization Funds
Deferred Charges
Land, Structures, and Equipment
Total Assets
LIABILITIES Af\I) SURPLUS
Liabilities:
Tenants' Security Deposits
Accounts Payable:
Contract Retentions
Other
Accrued Payments in Lieu of Taxes
Prepaid Rents
Fixed Liabilities
Total Liabilities
Surplus (Exhibit C)
Total Liabilities and Surplus
Exhibit A
$
71 , 697 . 55
4 , 985. 16
19,526.80
69,638.31
6,727.67
3,357,481 . 15
~3, 530,056.64
$
9,389.00
50,225.00
6 , 251 . 77
18 , 331 . 53
949.41
1,709,317.14
1,794,463.85
'I . 735. 592. 79
$ ~!. 530 , 056 . 64
The accompanying notes to the financial statements are an integral part hereof.
5
I-OJSI~ AlJT1--œ.ITY Œ 11-£ CTIY a= SALINA
SALINA, KANSAS
ANNUAL CXNTRIBtJITCJ-. S ŒNTRACT: FW-1114
PROJECT NLM3ER: KS038002-OOS
LON RENT
STATEM::NT OF I~ AND EXÆNSES - REGJLATæy BASIS
Fffi TI-E TW£L VE ~S ENDED JUNE 30, 1 994
Operating Income:
Dwelling Rental
Interest on General Fund Investments
Other Income
Total Operating Income
Operating Expenses:
Administration
Utilities
Ordinary Ma~ntenance and Operation
General Expense
Nonroutine ~~intenance
Total Operating Expenses
Net Operating Loss
Other O1arges:
Prior Years' Adjustments Affect~ng Resid~al Receipts
Prior Years' Adjust~ents Not Affecting Residual Receipts
Lcss from Disposition of Real Property
Loss From Disposition of Nonexpendable Equip~ent
Interest on Notes and Bonds Payable
Total Other Charges
Net Loss
Exhibit B
$
103,873.52
1,765.28
9.470.55
115. 109.35
27,212.33
5,500.01
74,360.83
40,023.81
26.597.72
173.694.70
-.l 58, 585 . 35 )
1,836.09
13,753.14
42,500.00
32,514.89
50, 135. 25
140.739.37
iL 199,324.72)
The accOf"'panying "-'otes to the f-;nanci".~ -statef"'er'-33re an integral par+-, hereo~.
6
I"O.JSI~ AlJT1-œTIY a= TI-E CTIY a= SALINA
SALINA, KANSAS
ANNUAL CXNTRIBUTICJ-. S CXWTRACT; FW-1114
PROJECT NLM3ER; KS038002-OOS
LON RENT
ANALYSIS OF SL~LUS - REGULATORY BASIS
FOR TI-E TW£L VE fvO\ffi1S ENDED JUNE 30 1 994
Unreserved Surplus:
Balance Per Prior Audit
Pr io, Audit A.djustrœnts Recorded in a Subsequent Per iod
B,alance Per Books at the Beginning of the Year
Net Loss :=or the Year
Provision for Cperating Reserve
Total Unreserved Surplus
Operating Reserve;
Balance Per Prior Audit
Provision for Reserve
Total Operating Reserve
Cumulative HUD Contributions:
Balance Per Prior Audit
prior Adjustments Recorded in a Subsequent Period
Balance per Books at the Beg;nning of the Period
Operating Subsidy
Annual contributions
Total Cumulative HUD CcntributCons
CLlrulative Grants:
Balance Per Prior Audit
Grants Received
Total Grants
Total Surplus
Exhibit C
$ ( 1, 843 , 770. 36 )
14.739,96
( 1,829,030.40)
( 199,32.1.72)
~ 14.~2S_75)
~,042..183,87)
55,203.94
14.128.75
69.332.69
2,709,189.44
1.750,20
2,710,939.64
78,647.00
67.888.11
2,857.474.75
~ 31 , 623 . 00
719.646.22
851 . 269 . 22
$~-- }. 735. 592 . 79
T~e acccmpanying notes to tf--e "'-c.-ci",l sta:er:ee't3 are a'- --tegral .::art r-ereo".
7
I-OJSI~ AlJl1-œTIY a= TI-E CITY a= SALINA
SALINA, KANSAS
ANNJAL ŒNTRIBUTICJ-. S ŒNrRACT: KC - 70 15E
PROJECT 1'A.M3ER: KS 16E03800 1 008
SECTICJ-. 8 CERTIFICATE
BALAl'ΠSt-EET - REGJLA TffiY BASIS
JUNE 30, 1994
ASSETS
Cash
Accounts Receivable:
HUD
Investments
Land, Structures, and Equipment
Total Assets
Liabilities:
Accounts Payable:
Interprogram
Surplus (Exhibit F)
LIABILITIES AND SURPLUS
Total Liabilities and Surplus
Exhibit 0
$ 34,813.60
10,996.31
35,390.86
15,248.32
$ 96 ,449 . 09
$ 17,460.07
78,989.02
~; 96,449.09
The accompanying notes to the financial statements are an integral part hereof.
8
f-a.JSI~ AUTI-ŒTIY a= TI£ CTIY CF. SALINA
SALINA, KANSAS
ANNUAL ŒNTRIBUTICJ-. S CCNTRACT: KC - 70 15E
PROJECT NLM3ER: KS16E038001008
SECTICN 8 ŒRTIFICA TF-
ST A TB'vET\¡'T OF I~ A]\¡'O EXPENSES - REGJLA TffiY EASIS
FOR l1-IE TWELVE M:Níh'S ENDED JUNE 30, 1994
Exhibit E
~€rating Income:
IrterE"'3t on Operat ~ ng Reserve
Interest on C~nerâl Fund Investments
Other Income
$
2,773.97
?~~ ~7
'"--v_. V ,
c=:: ,1.1 7C=::
'-""""". 'v
Tota' O~erat~ng Income
~ ~C:,1"""
,,) . c.- ~'-'
Operating Expenses:
Administration
Ordinary ~~irtenance and Operat"or
C-€ne.~a 1 Expense
f-!QL:sing Assistance PaYT;"ents
70,977.66
2,319.90
14,0903.08
635.707.96
Total Cpera:ing E"penses
723.103.60
Net Operating Income (Loss)
( 719,449.20)
Other Charges:
Prior Years' Adjustments Not Affecting Res~dual Receipts
192.57
Net Loss
1; ( 71 9 . 641 . 77)
-------~-----
T'~,::, é'lcccr-pa,,/cng r.otes t:) ::-9 "i~arc'.-";3tè"efT€r.t:: :;re 3.;' '~tegral p3.rt hereof.
9
I-OJSI~ AUTI-œTIY a= TI-£ CTIY a= SALINA
SALINA, KANSAS
ANNUAL CCNrnIBUTIOOS ŒNTRACT: KC - 70 15E
PROJECT NLM3ER: KS16EO38001008
SECTIO'l 8 CERTIFICA 11E
ANALYSIS a= SURPLUS - REGJLATffiY BASIS
Fffi ~:E TWEL VE rvr::NTHS ENDED JUNE 30, 1 994
Unreserved Surplus:
Ba 1 ance Per p, i or .ALd it
Pr i or Aud it A.djus tmen ts Recorded i r. a Subsequent Per i od
Balance Der Books at the Beginning of
Net Loss For the Year
Provision for Operati~g Reserve
Provision for Project Account
Other Adjustíænts or Corrections
the Year
Total Unreserved Surplus
Operating Reserve:
Balance Per Prior Audit
Provision for Reserve
Total Operating Reserve
Project Account - Unfunded:
Balance Per Prior Audit
Provision for Project Account
Other Adjust~ents or Corrections
Total Project Account - Unfunded
O.,m.1lat ive H.JD Contr ibut ions:
Balance Per Prior Audit
Annua~ Contributions
Total Cumulative HUO Contributions
Total Surplus
Exhibit F
$ ( 6,219, 700. 51)
192.57
( 6 219,507.9.1)
( 719,64~.7')
( 92 ¡ . ~ 9 )
( 221 , 911 . 69 )
159.893.00
---.iL. 002 . 089 . 59 )
62,819.51
921 . 19
63.740.~0
934,.169.08
221 , 911 . 69
--L-159.893.00i
996.487,77
5,296.579.33
724.270.31
6 . 020 . 850. ~ .1
~tu~ 78. 989 ' 02
The accompanying 'lotes to the fi,~arc'3; statere"'~s are 3"" ir-'tegral ¡:::art :'-'ereo".
10
I-OJSI~ AlJT1-ffiTIY a= TI£ CITY a= SALINA
SALINA, KANSAS
ANNUAL CO'ITRIBtJrIO"JS CO"fTRACT: KC - 70 15
PROJECT NlM3ER: KS 16VO3800 1 002
SECTIŒJ 8 vaJCI--ER
BALAI'Œ SI-£ET - REGJLA TOOY BASIS
JUNE 30, 1994
Exhibit G
ASSETS
Cash
Accoun t:3 Rece i vab 1 e :
I~terprogram
i_and, <:::::"'-1ctures, and Ec;uipTent
$ 3, 553 . 17
1 , L.:1 i . 36
-; ¿99.88
Tota 1 ,A.sset5
$ 6. 5CD . 71
LIABILITIES ~V SURPLUS
Liabil~ties:
Accounts Payable:
HUO
Interprogram
$
857.20
2 . 95 1 . 0.1
Total Liab~lities
3,808.24
Surplus (Exhibit I)
2.592.47
Total Liabilities and SL'~pll<:'3
$ 6,500.71
The accc,---'panyirg notes to the f~,""a:-:c~a~ statements are an Cnted:--3~ ;::Jar': "'ere::.
11
~ruSI~ AlJT1-ffiTIY a= TIt CTIY a= SALINA
SALINA, KANSAS
ANNUAL a:NfRIBUTIO\JS a:NfRACT: KC - 7015
PROJECT NLM3ER: KS 16VO38CO 1002
SECTICJ-. 8 vaxJ-ER
ST A TBvENT a= It-aM: AND EXÆNSES - REGJLA TŒY BASIS
Fffi TI-E TWEL VE tvO\/THS ENDED JUNE 30, 1 994
Operating Income:
Interest on Operating Reserve
Interest on General Fund Investments
Other Income
Total Operat~ng Incc~e
Operating Expenses:
Administration
Ordinary Maintenance and Operation
General Expense
Housing Assistance Payments
Total Operating Expenses
Net Loss
Exhibit H
'~
152.27
34.50
22.89
209.66
8,273.55
299.33
2,565.99
92.866.C.o
104.004.S7
$ ( í 03 . 7~~?_~)
T~e 3c::::orr.pany~"':::; notes to tre ~'~E.:~cc.:-:~ ::.t3'-S'~'?:':s ~".r,? .3'1 '-~',,-:::;:-3~ ;:-~3.'~': '--e,r,?c:".
12
I-OJSI~ AlJT1-ffiI1Y a= TI-E CTIY a= SALINA
SALINA KANSAS
ANNUAL CO'.JTRIBUTICJ-. S cn-ITRACT: KC - 7015
PROJECT NLM3ER: KS 16VO3800 1 002
SECTICJ-. 8 va.o-ER
ANAL YSIS a= SURPLUS - REGJLA TeRY BASIS
FeR TIE TW£L VE ~ ENDED JUNE 30 1 994
Unreserved Surplus:
Balance Per Prior Audit
Net Loss for the Year
Provision for Operating Reserve
Provision for Project Account
Total Unreserved Surplus
Operating Reserve:
Balance Per Prior Audit
Provision for Reserve
,Total Operating Reserve
Project Account - Unfunded:
Balance per Prior Audit
Provision for Project Account
Total Project Account - Unfunded
Cumulative HUD Contributions:
Balance Per Prior Audit
Annual Contributions
Total Cumulative HUD Contributions
Total Surplus
Exhibit I
$ ( 362,929.62)
( 103 795.21)
( 1 , 192. 59 )
--.-C. 54,743.20)
--.-C. 522,660.62)
0.00
1.192.59
1,192.59
138,903.69
54,743.20
193,646.89
224,825.81
105,687.80
330.513.61
L-
2.692.47
The accompanying notes to the financial statements are an integral part hereof.
13
Cash
Total Assets
Liabilities:
Accounts Payable:
Interprogram
Total Liabilities
Surplus (Exhibit L)
f-OJSI~ AlJT1-ffiITY a= T1-E CIlY a= SALINA
SALINA., KANSAS
f-O.£ ~ERSHIP PR(XRAM
BALNŒ SI-£ET - REGJLA TffiY BASIS
JUNE 30, 1994
ASSETS
LIABILITIES AND SURPLUS
Total Liabilities and Surplus
Exhibit J
$ 93.542.98
;S 93. 542 . 98
c'
~~
451 . 11
451.11
93 , 09 1 . 87
$ 93,542.98
'T'ìe accOfT.paryi"G notes to the fir3~~;".' -o:':3terre-,ts .=J.~'" 3" i~L"'-:C"'3¡ r-.,:;~': "'e..-eo",
14
I-OJSI~ AlJT1-ffiITY a= 11-£ CTIY a= SALINA
SALINA, KANSAS
f-O.£ aYNERSHIP PROCRðM
STATEJvENT a= INX'tvE AND EXPENSES - REGJLATOOY BASIS
FOO 11-£ TW£L VE r-rnTHS ENDED JUNE 30, 1994
Operating Income:
Interest on General Fund Investments
Operating Expenses:
Administration
Tenant Service
Ordinary Maintenance
General Expense
and Operation
Total Operating Expenses
Net Loss
Exhibit K
$
1 ,495 . 51
948.60
600.00
11,817.95
1,334.77
14,701.32
$( 13,205.81)
The accompanying notes to the financial statements are an integral part hereof.
15
I-roSIr-.G AUll..ŒTIY a= TI-E CTIY a= SALINA
SALINA, KANSAS
f-OvE a¥NERSHIP PRO:RAM
ANALYSIS OF SURPLUS - REGl!LATORY BASIS
FOR TI-E TW£L VE M::ffil-JS ENDED JUNE 30, 1 994
Unreserved Surplus:
Balance Per Prior Aucit
Dr lor Audit Adjustments Recorded
in a Subsequent Period
Balance Per Books at the Beginning
of the Year
Net Loss for the Year
Total Unreserved Surplus
Curulative Contributions:
Balance Per Prior Audit
Pr ior Audit Adjustments Recorded
in a Subsequent Period
Balance Per Books at the Beginning
of the Year
.A.nnual Contributions
Total Cumulative Contributions
Total Surplus
Exhibit L
$ 11,676.75
( 11.676.75)
0.00
( 13 . 205 . 8 n
-.l 13 . 205 . 8 n
13,753.14
-.L
13.753.14)
0.00
106.297.68
106.297.68
~. 93.091.87
The acccrrpanying !'otes to the finar-'c C=O,l:,:a:ernerts 3re a!~ ~:"tegral part herec~.
16
I-OJSI~ AunrnrTY a= 11-£ CTIY a= SALINA
SALINA, KANSAS
r-oTES TO 11-£ FINAtCIAL ST A TB-ENTS
JUI'E 30, 1994
Page 1 of 2
Note 1 - The ReportinQ Entity
The agency was created under the provisions of the laws of the State of
Kansas. The purpose of the agency is to administer Public Housing
Programs authorized by the United States Housing Act of 1937.
The governing board is appointed by the Mayor of the City of Sa 1 ina. The
governing board employs executives; authorizes contracts of subsidy with
the U.S. Department of Housing and Urban Development (Annual o)ntributions
contract) pursuant to that agency's regulations and statutory
author izat ions; and causes the agency to construct, own, and operate
public housing facilities. The financial liability of the housing agency
is essentially supported by the operating and debt service subsidies
received under contract from the Federal government.
In determining how to define the reporting entity, all potential component
units have been considered. Each potential component unit ~~s evaluated
using the criteria set forth in Governmental Accounting Standards board
pronouncements. These criteria include, but are not limited to
manifestation of oversight responsibility, scope of public service, and
special financing relationships. Oversight responsibility is determined
by the extent of financial interdependency, control over the selection of
the governing board and management, ability to significantly influence
operations, and accountability for fiscal matters. Based on these
criteria, there are not additional entities which should be included in
the financial statements.
Note 2 - Basis of AccountinQ
The financial statements of the authority are presented in accordance with
a basis permitted or prescribed by the U.S. Department of !-Iousing and
Urban Development, and differs from generally accepted accounting
principles, in that:
A.
Funds and activities of the agency are not classified by fund type
or account group.
B.
Government grants are not reflected in the income stat~~nt, but are
credited directly to the surplus accounts.
c.
In the event any of the activities of the agency were classified as
an Enterprise Fund, no depreciation is provided as a cha~ge against
earnings.
D.
Most of the disclosures required by generally accepted accounting
principles are omitted.
17
K.
L.
M.
N.
I-OJSI~ Aun-œrTY a= l1-E CTIY a= SALINA
SALINA, KANSAS
OOTES TO 11-£ FINAf'CIAL ST A TEfvENTS
JUNE 30, 1994
Page 2 of 2
E.
Comparative data is not presented.
F.
Nearly all expenses are rec09nized when paid rathel~ than when
incurred, and all revenue, with the exception of income from
tenants/participants, is recognized when received rath~r than when
earned.
G.
A statement of cash flows is not presented.
H.
There is no allowance for doubtful accounts as uncollectible
accounts are charged against earnings using the specific charge-off
method.
1.
Inventories of materials and supplies are not maintained.
J.
Prior year's adjustments are reflected in the income statement
rather than in the equity statement.
The balance of equity accounts for the beginning of the period is
reconciled to the prior audited financial statement balances.
No budgeted to actual comparisons are presented.
No combined or combining financial statements are presented.
The costs of compensated absences are reported in the period paid
rather than in the period earned.
18
I-OJSI~ Aun-œTIY a= TIt CTIY a= SALINA
SALINA, KANSAS
ANNUAL CD'ITRIBlJITCJ-. S CD'ITRACT: FW-1114
PROJECT NLM3ER: KS038002-OOS
<XM'UT A TICJ-. a= RESIDUAL RECEIPTS AND
Acx::RUI~ ANNUAL CO'ITRIBUTIa-J - REGJLA TORY BASIS
LON RENT
FΠTIE TWEL VE MJNTHS ENDED JUNE 30, 1 994
Computation of Residual Receipts:
Operating Receipts:
Operating Income (Exhibit B)
HUD Operating Subsidy
Total Operating Receipts
Operating Expenditures:
Operating Expenses (Exhibit B)
Prior Years' Adjust~ents Affecting Residual Receipts
Capital Expenditures:
Replacement of Nonexpendable Equipment
Casualty Losses - Capitalized - Net
Total Operating Expenditures
Residual Receipts (Deficit) Per Audit
Provision for (Reduction of) Operating Reser\/e
Residual Receipts (Deficit) Per PHA
Computation of Accruing Annual Contribution:
Fixed Annual Contribution
Accruing Annual Contribution
19
Schedule 1
$ 115,109.35
78,647.00
193.756.35
173,694.70
1,836.09
645. .17
3 . .15 1 . 3.1
179.627.60
1.1,128.75
14.128.75
:£ 0.00
:£ 67 . 888. 11
L 67.888.11
Schedule 2
. I-OJSI~ AlJT1-œITY a= ll-E CTIY a= SALINA
SALINA, KANSAS
Ar-NJAL ŒNTRIBUTICJ-. S cnITRACT: KC - 70 15E
PROJECT NLM3ER: KS16E038001008
SECTICJ-. 8 CERTIFICATE
c:o.PUT A TICJ-. a= ANNUAL ŒNTRIBUTICJ-. EARNED - PROJECT AO:CUNT
AND CFERA TI~ RESERVE a-w-ŒS
FOO 11-£ TW£L VE f\O'ITHS El'DED JUNE 30, 1994
Maximum Contributions Available:
Maximum Annual Contributions Authorized
Project Account Balance at the Beginning
of the Year
Total Funds Required
$ 946, 182. 00
774,576.08
1.720.758.08
87,828.62
609.40
360.00
635,707.96
724,505.98
Total Annual Contributions Available
Annual Contribution Required:
Administrative Fee
Aud i t Fee
Hard-to-House Fees
Housing Assistance Payments
Project Receipts Other than Annual
Contributions
235.67
Total Annual Contributions Required
L 724.270.31
Project Account Change:
Provision for Project Account (Exhibit F)
L 221 . 911 . 69
Annual Contribution Earned
L724,270.31
Operating Reserve Changes:
Operating Receipts:
Operating Income (Exhibit E)
Annual Contribution Earned
$ 3,654.40
724.270.31
Total Operating Receipts
727,924.71
Operating Expenditures:
Operating Expenses (Exhibit E)
Capital Expenditures
723,103.60
3.899.92
Total Operating Expenditures
727.003.52
Net Operating Receipts Available ~er Audit
Provision for Operating Reserve
921 . 19
921 . 19
Deficit (Carryover)
$___UH____- Q.._qg-
20
Schedu 1 e 3
I-OJSI~ AUT1-œTIY a= TH: CTIY a= SALINA
SALINA, KANSAS
ANNUAL cnrrRIBUTICJ-. S cnITRACT: KC - 7015
PROJECT MM3ER: KS 16V03800 1002
SECTI CJ-. 8 vcx..o-ER
c.c:J-PIJT A TICJ-. OF ANl'UAL CCNTRIBUTIŒ.I EARNED - PROJECT Acxn;NT
AND Œ'ERA TI~ RESERVE D-W\Œ:S
FOR TÆ TW£L VE ~ ENDED JUNE 30, 1994
Maximum Contributions Available:
Maximum Annual Contributions Authorized
Project Account Balance at the Beginning
of the Year
$
160,431.00
Total Annual Contributions Available
138,903.69
î 299,334.69
Annual Contribution Required:
Administrative Fee
Audit Fee
Hard-to-House Fees
Housing Assistance Payments
12,593.80
82.50
180.00
92.866.00
Total Funds Required
105,722.30
Project Receipts Other than Annual
Contributions
34.50
Total Annual Contributions Required
t_~~~~
Pioject Account Change:
Provision for Project Account (Exhibit I)
1. 54 , 743 . 20
~ 105.687.80
Annual Contribution Earned
Operating Reserve Changes:
Operating Receipts:
Operating Income (Exhibit H)
Annual Contribution Earned
$
209.66
105.687.80
Total Operating Receipts
105.897.46
Operating Expenditc.wes:
Operating Expenses (Exhi~it ~)
Capital Expenditures
104,004.87
700.00
Total Operating Expenditures
104.704.87
Net Operating Receipts Availabl",! Per Audit
Provision for Operating Reserve
1,192.59
1.192.59
Deficit (Carryover)
:L 0.00
- --_u_--,---------
21
H:XJSI~ AUTl-œ:ny a= 11-£ CTIY a= SALINA
SALINA, KANSAS
SCJ-EDULE a= FEDERAL FINN-CIAL ASSIST AJICE
JUNE 30, 1994
SchedJ 1 e 4
Federal Grantor
Program Title
CFDA No.
Grant
1. D. No.
Program
Receipts
-------------------------------------------------------------------------------
U.S. Department of Housing and Urban Development
Major Programs:
Direct Programs:
Development 14.852
Operating Subsidy 14.850
Annual Contributions 14.850
Annual Contributions 14.156
Total Major Federal Program
FW-1114
FW-1114
FW-1114
KC-7015E
Receipts
$
719,646.22
78,647.00
67,888.11
724.270.31
'1 . 590 . 451 . 64
Non-major Programs:
Direct Programs:
Annual Contributions
14. 177
KC-7015
105,687.80
Total Federal Program Receipts
i:1 ,696, 139.44
Federal Grantor
Program Title
CFDA No.
Grant
1. D. No.
Program
Expenditures
-------------------------------------------------------------------.-----------
U.S. Department of Housing and Urban Development
Major Programs:
Direct Programs:
Development 14.852
Operating Subsidy 14.850
Annual Contributions 14.850
Annual Contributions 14.156
Total Major Federal Program
FW-1114
FW-1114
FW-1114
KC-7015E
Expenditures
$
686,718.48
78,647.00
67,888.11
724.270.31
1.557,523.90
Non-major Programs:
Direct Programs:
Annual Contributions
14.177
KC-7015
105,687.80
~. 663 . 211 .7-2
Total Federal Program Expenditures
Indebtedness to the U.S. Department of Housing
and Urban Development
Indebtedness guaranteed by the U.S. Department of Housing
and Urban Development
$ 967.444.99
L2~,~:..:~~~
The program receipts listed above reflect amounts expended by tre U.S. Department
of Houshg and Urban Development on behalf of the h,ousing authority, as well as
amounts pa~d directly to it.
The program expenditures 1 isted above reflect amounts expended b:/ the housing
author ity under its federal financial assistance programs as well as expenditures
made or applied on its behalf.
22
CYNTHIA L. WARREN
Certified Public Accountant
------------------------------------------------------------------.------------
------------------------------------------------------------------.------------
Route 4, Box 388
Eufaula, OK 74432
(~ 18) 689-9590
INDEPENDENT AUDITŒ' S
~T ON SUPPLEJvENT ARY I~ TION -
SCÆDULE a= FEDERAL FIN#CIAL ASSIST At-Œ
Board of Commissioners
Housing Authority of the
City of Sal ina
Post Office Box 1202
Salina, Kansas 67402-1202
U.S. Department of Housing and
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 State Avenue
Kansas City, Kansas 66101-2406
I have audited the financial statements of the Housing Authority of the City of
Salina for the year ended June 30, 1994 and have issued my report thereon dated
September 14, 1994. These financial statements are the responsibility of the
Housing Authority of the City of Salina's management. My responsibility is to
,express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards,
Government Auditing Standards, issued by the Comptroller General of the United
States, and the provisions of Office of tv1anagement and Budget Circular A-128,
"Audits of State and Local Governments." Those standards and CM3 ci¡~cularA-128
require that I plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by managerrent, as well
as evaluating the overall financial statement presentation. I believe that my
audit provides a reasonable basis for my opinion.
My audit was made for the purpose of forming an opinion on the financial
statements of the Housing Authority of the City of Salina taken as a whole. The
accompanying Schedule of Federal Financial Assistance is presented for purposes
of additional analysis and is not a required part oP the financial statements.
The information in that schedule has been subjected to the auditin~J procedures
applied in the audit of the financial statements, and, in my opinion, is fairly
presented in all material respects in relation to the financial statE~nts taken
as a whole.
&¡ r¡ld: fUo. cY. ~
Certified Public Accountant
September 14, 1994
23
CYNTIITA L. WARREN
Certified Public Accountant
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Route 4, Box 388
Eufaula, OK 74432
(918) 689-9590
INDEÆNDENT AUDITŒ' S ~T CJ-. CCM'LIMCE BASED
CJ-. AN AUDIT a= TI-E FINM-CIAL ST A TEM::NTS ÆRF<ßvED IN
Acx::œoM-Œ WITH GD\JERNvENT AUDITII'K3 STANDARDS
Board of Commissioners
Housing Authority of the
City of Salina
Post Office Box 1202
Salina, Kansas 67402-1202
U.S. Departrnent of Housing and
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 State Avenue
Kansas City, Kansas 66101-2406
I have audited the financial statements of the Housing Authority of the City of
Sal ina, as of and for the year ended June 30, 1994, and have issued my report
thereon dated September 14, 1994.
,I conducted my audit in accordance with generally accepted auditin!~ standards,
Government Auditing Standards, issued by the Comptroller General of the United
States, and the provisions of Office of Management and Budget Circular A-128,
"Audi ts of State and Loca 1 Governments." Those standards and Qv18 Ci ITular A-128
require that I plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the
Housing Authority of the City of Salina is the responsibility of the Housing
Authority of the City of Salina's management. As part of obtaininG reasonable
assurance about whether the financial statements are free of material
misstatement, I performed tests of compliance with certain provisions of laws,
regulations, contracts, and grants. However my objective was not to provide an
opinion on overall compliance with such provisions. Accordingly, I do not
express such an opinion.
The results of my tests indicate that, with respect to the items tested, the
Housing Authority of the City of Sal ina compl ied, in all material respects, with
the provisions referred to in the preceding paragraph. With respect to items not
tested, nothing came to my attention that caused me to believe that the Housing
Authority of the City of Salina had not complied, in all material respects, with
those provisions.
This report is intended for the informa.tion c" 'T13nagement any applicable
regulatory body, and the cognizant agency. ~wever. this report is a matter of
public record and its distribution is not limited.
&¡-mILL-a cY. ~
Certified Public Accountant
September 14, 1994
24
CYNTI-IIA L - WARREN
Certified Public Accountant
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Route 4, Box 388
Eufaula, OK 74432
(g'18) 689--9590
INDEPENDENT AUDITffi' S REPan CJ-. CXJ¥PLIAr-Œ
WITH SÆCIFIC REQJIR&ENTS APPLICABLE TO
MAJCR FEDERAL FINAt-CIAL ASSIST N-ΠPROCRAMS
Board of Comm~ssioners
Hous i r,g Author i ty' of the
C"ty of Sal ina
Post Office Box 1202
Salina, Kansas 67402-1202
U.S. Department of Housing and
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 State Avenue
Kansas City, Kansas 66101-2406
I have audited the financial statements of Housing Authority of the City of
Sal ina, as of and for the year ended June 30, 1994, and have issued my report
thereon dated September 14, 1994.
. I have a 1 so audited the Hous i ng Author i ty of the Ci ty of Sa 1 i na' s comp 1 iance wi th
the requirements governing types of services allowed or unallowed; eligibility;
spec ia 1 report ing requi rements j spec ia 1 tests &. provi sions; and c la ims for
advances and reimbursements that are appl icable to each of its rTIé\jor federal
financial assistance progr&~s, which are identified in the accompanying Schedule
of Federal Financial Assistance, for the year ended June 30, 1994. ~he
manageITent of the Housing Authority of the City of Sal~na is responsible for the
Housing Authority of the City of Salina's compliance with those rE~quirements.
tv1y responsibi 1 ity is to express an opinion on compl iance with those I~equirements
based en my audit.
I conducted my audit in aecordance with generally accepted auditin(~ standards,
Government Auditing Standards, issued by the Comptroller General ef the United
States, and Off ice of Management and Budget Ci rcular A-128, "Audi ts of State and
Local Governments." Those standal~ds and CMB Circular A-128 require that I plan
and perform the audit to obtain reasonable assurance about whether material
noncompliance with the requirements referred to above occurred. An audit
includes examining, on a test basis, evidence about the Housing Authority of the
City of Salina's compliance with those requirements. I believe that my audit
provides a reasonable basis for my opinion.
In my opinion, the Housing Authority of the City of Salina complied, in all
material respects, \..lith the requirements governing types of services allowed or
unallowed; eligibility; special t-eporting requ'rementSj special tests and
provisions; and claims for ad'/ances and reiiTburSeme¡its that are appl icable to
each ef its rrajcr federal financial assistance prograrrs fer the year ended June
30, ~994.
Thi'3 report lS intended for the information of rraragerTent an/ appl icable
regu~atory body, and the cognizant agency. However, th;s repor~ is a matter of
public record and its distr;~ution is not lim'~ed
&¡1fLk fU a df. LV ~
Certified Public ,Áccountant
September 14, 1994
25
CYNTI-IIA L. WARREN
Certified Public Accountant
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Route 4, Box 388
Eufaula, OK 74432
(Ø18) 689-9590
INDEÆNDENT AUOITOO' S ~T CJ-. ŒfvPU:Ar-Œ WITH
TIt Œf\ERAL REQJIREÞ£NTS APPLICABLE TO
FEDERAL FINMCIAL ASSISTMO:: PRO?fWvtS
Board of Commissioners
Housing Authority of the
City of Salina
Post Office Box 1202
Salina, Kansas 67402-1202
U.S. Department of Housing and
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 State Avenue
Kansas City, Kansas 66101-2406
I have audited the financial statements of Housing Authority of the City of
Sa 1 i na, as of and for t he year ended June 30, 1994, and have issued my repor t
thereon dated September 14, 1994.
I have applied procedures to test the Housing Authority of the City of Salina's
'compliance with the following requirements applicable to its federal financial
assistance programs, which are identified in the Schedule of Federal Financial
Assistance, for the year ended June 30, 1994.
Political activity;
Davis-Bacon Act;
Civil rights;
Cash management;
Relocation assistance and real property
Federal financial reports;
Allowable costs/cost principles;
Drug-free Workplace Act;
Administrative Requirements;
acquisition;
My procedures were limited to the applicable procedures described in the Office
of Management and Budget's Compliance Supplement for Single Audits of State and
Loca 1 Governments. My procedures were substant ia lly less in scope than an audit,
the objective of which is the expression of an opinion on the Housir1g Authority
of the City of Salina's compliance with the requirements listed in the preceding
paragraph. Accordingly, I do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no
material instances of noncompliance with the requirements listed in the second
paragraph of this report. With respect to items not tested. nothinø came to my
attention that caused me to believe that the Housing Authority of the City of
Salina had not complied, in all material respects, with those requirements.
This report is intended for the information
regulatory bodies, and the cognizant agency
of public record and its distribution is not
~ -l fùo. c;)f. ~
Certified Public Accountant
September 14, 1994
of the management. any applicable
However. this report is a matter
limited.
26
CYNTHIA L - WARREN
Certified Public Accountant
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Route 4, Box 388
Eufaula, OK 74432
(Ø18) 689-9590
INDEPENDENT AUDITŒ' S REF'CFT CJ-. CX1-PLIMŒ WITH
11-£ SPECIFIC REQUIRBvENTS APPLICABLE TO I\a\l-MAJæ
FEDERAL FINMCIAL ASSIST AI'ΠPROCRAMS
Board of Commissioners
Housing Authority of the
City of Salina
Post Office Box 1202
Salina, Kansas 67402-1202
U.S. Department of Housing and
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 State Avenue
Kansas City, Kansas 66101-2406
I have audited the financial statements of Housing Authority of the City of
Sal ina, as of and for the year ended June 30, 1994, and have issUi=d my report
thereon dated September 14, 1994.
In connection with my audit of the June 30, 1994 financial staternents of the
Housing Authority of the City of Salina, and with my consideration of the Housing
Authority of the City of Salina's internal control systems used to administer
federal financial assistance programs, as required by Office of Management and
Budget Circular A-128, "Audits of State and Local (;:)vernments," I selected
certain transact ions app 1 icab le to certa in non-major federa 1 financial assistance
programs for the year ended June 30, 1994.
As required by Q'vE Circular A-128, I have performed auditing procedures to test
compliance with the requirements governing types of services allowed or
unallowed; eligibility; special reporting requirements; prohibition against the
use of lead-base paint in construction contracts; and procurement actions CQ~ly
with Section 306 of the Annual Contributions Contract that are applicable to
those transactions. My procedures were substantially less in scope than an
audit, the objective of which is the expression of an opinion on the Housing
Authority of the City of Salina's compliance with these rE~quirements.
Accordingly, I do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no
material instances of noncompl iance with the requirements 1 isted in the preceding
paragraph. Wi th respect to items not tested, noth i r¡g came to my at tent ion that
caused me to believe that the Housing Authority of the City of Salina had not
complied, in all material respects, with those requirements
This report is intended for the information of the management, any applicable
regulatory bodies, and the cognizant agency. However, this report is a matter
of public record and its distribution is not limited.
~c¥.
~
Certified Public Accountant
September 1~, 1994
27
CYNTHIA L - WARREN
Certified Public Accountant
==================================================================:============
Route 4, Box 388
Eufaula, OK 74432
CØ18) 689-9590
INDEÆNDENT AUDITOO' S ~T CJ-. 11-£ INTERNAL cnfTROL
STRLCTURE BASED CJ-. AN AUDIT a= FINAt-CIAL ST A TEJ-.-ENTS PERFa=M3J
IN AœœDAf\Œ WITH mVERt+ENT AUDITI~ STANDARDS
Board of Commissioners
Housing Authority of the
Ci ty of Salina
Post Office Box 1202
Salina, Kansas 67402-1202
U.S. Department of Housing and
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 State Avenue
Kansas City, Kansas 66101-2406
I have audited the financial statements of the Housing Authority of the City of
Sal ina, as of and for the year ended June 30, 1994, and have issued my report
thereon dated September 14, 1994.
,I conducted my audit in accordance with generally accepted auditing standards,
Government Auditing Standards, issued by the Comptroller General of the United
States, and the provisions of Office of Management and Budget Circular A-128,
"Audits of State and Local Governments." Those standards and Qv18 Circular A-128
require that I plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement,
In planning and performing my audit of the financial statements of the Housing
Authority of the City of Salina for the year ended June 30, 1994, I considered
its internal control structure in order to determine my auditing procedures for
the purpose of expressing my opinion on the financial statements and not to
provide assurance on the internal control structure.
The management of the Housing Authority of the City of Salina is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide
management wi th reasonab le, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, and that
transactions are executed in accordance with management's authorizations and
recorded proper ly to permit the preparat ion of f inancia 1 staternents in accordance
with accounting practices prescribed or permitted by the U.S. Department of
Housing and Urban Development, Because of inherent limitations in any internal
control structure, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any evaluation of the structure to f~ture periods
is subject to the risk that procedures may become inadequate because of changes
in conditions or that the effectiveness of the design and operation of policies
and procedures may deteriorate,
For the purpose of this report, I have classifled the significant internal
control structure policies and procedures in the following categor-es:
Treasury;
Revenue;
28
Expenditures, including payroll;
Financial Reporting;
Types of services allowed or unallowed;
El igibi 1 ity;
Special reporting requirements;
Political activity;
Davis-Bacon Act;
Civi 1 rights;
Cash management;
Relocation assistance and real property
Federal financial reports;
Allowable costs/cost principles;
Drug-free Workplace Act;
Administrative Requirements;
Monitoring Subrecipients;
Claims for Advances and Reimbursements;
acquisition;
For all of the applicable internal control structure categories listed above, I
obtained an understanding of the design of relevant policies and pr'ocedures and
whether they have been placed in operation, and I assessed contro' risk,
My consideration of the internal control structure would not necessar'ily disclose
all matters in the internal control structure that might be material weaknesses
under standards established by the American Institute of Certified Public
Accountants, A material weakness is a reportable condition in which the design
or operation of one or more of the specific internal control structure elements
does not reduce to a relatively low level the risk that errors or irregularities
in amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. I noted no matters
involving the internal control structure and its operation that I consider to be
material weaknesses as defined above.
This report is intended for the information of the management, any applicable
regulatory bodies and the cognizant agency. However, this report is a matter of
public record and its distribution is not limited.
~c!f.~
Certified Public Accountant
September 14, 1994
29
CYNTI-ITA L. WARREN
Certified Public Accountant
------------------------------------------------------------------.------------
------------------------------------------------------------------.------------
Route 4, Box 388
Eufaula, OK 74432
(918) 689-9590
INDEÆNOENT AUDITffi' S REF'CRT CJ-. T1-£
INTERNAL CXMfROl STRlCnJRE USED IN AJ::W:NIS1lERING
FEDERAL FINftJ-.CIAL ASSIST AfICE PRŒRAMS
Board of Commissioners
Housing Authority of the
Ci ty of Salina
Post Office Box 1202
Salina, Kansas 67402-1202
U.S. Department of Housing and
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 state Avenue
Kansas City, Kansas 66101-2406
I have audited the financial statements of the Hcusing ,.ð,uthority of the City of
Sal ina, for the year ended June 30, 1994, and have issued my report thereon datec
September 14, 1994. I have also audited the Housing Authority of the City of
Salina's compliance with requirerrents applicable to rrajor federal financial
assistance programs and have issued my report thereon dated September 14, 1994.
I conducted my audits in accordance ~ith generally accepted auditi~g standards;
C~vernment Auditing Standards, issued by the Comptroller General of the United
States; and Office of Management and Budget (GA.B) circular A-128, Audits of State
and Local Governments. Those standards and Cfv1ß Circular A-128 require that I
plan and perform the audit to obtain reasonable assurance about ~hether the
f i nanc i a 1 stat~.ents are free of mater' i a 1 misstatement and about '".,¡hether the
Housirg Authority of the City of Salina ccmplied with laws and regulatiors,
noncompl iance with which would be rraterial to a major federal financial
assistance program.
In planning and performing my audits ¡Oor the year ended June 30, 1994 I
considered the Housing Authority 0" the City of Salina's inter'nal control
structure in order to determine my auditing procedures for the purpose of
expressing my opinion on the financial statements and on its compliance '.tJith
requirements applicable to major and/or non-major programs and not to provide
assurance on the internal contrcl structure. The report addresses ;:¡)-'
consideration of internal control pC' icies and procedures relevant t:::¡ camp! iance
with requirements applicable to federal financial assistance progr3fTis. I have
addressed pol icies and procedur9C:' ;--elevant to my audit of tre financial
statements in a separate report dated Septerrter ~4, 1994.
The management of the Housing A:,;t\,ority' of the City of Sal ina is responsible for
establishitlg and rraintaining3.n i,..,ternal contrc' :3~.ruct,Jre. Iii ",_:O"~lling thi3
respons ib i 1 i ty, est imates and Judgnelìts tJ/ maragerent .3r.O' """-::;i. 'rc,,--' +:~ ac:sess :he
expected benefits and related ':o:::t-:, of "..,terna' c-:'-,;rtrr;'~3t""Xt,"e ,=c>cie'3 3r-'cj
procedures. The objectives of 3'~, ;.-terral contro' :"'-:c',r-e 3r,:,;' t:::¡ ¡:rovide
mEmager;-¡ent wit'", "easonable, ':,'-,' ,0" 3Q=o'I"te,3ssurance '_"'at a:set-.s are
s'afeguardeda;;ôinst loss from ;,.:iia,'-hcr':zed l.Jse 0" C"3fy-,.:,ition. ':.""at ~,~~-;n'33ct'C:~s
aree'<,ecuted i,~ accordance I.-lith rDaraGerr""n~'3 a'¡¡',hOr';::3~,~':Jn a,¡c' recorcec ;::"-:,;=e,'/
to perf'"':it the preparation c.f fir3ncial =;t-.3"F"f"er"c ;~ 3ccordance \.jct}', ':.:'-'e 'Jas;3
cf acc::ounting pr3ct'ces pre'3cribe,j -,- ;::F",-';¡:.tecl the U.C:. C'-epart-ner"- cf ~CI.I:ir2
3:-0 '_'rban Development, and that ferJer?' fi:~3r;c'a' as'_"i.:.tar:ce prografT¡~; .3r'e "'"B'aged
iì~r'rnp'iance with apP"ca~le la'^!":; ","'d regulations. Because c" inher;::-n+:
~im;t-.ations in any internal contro' 3tr'_cct'-"re, er,rOr'3, irregu'ar'ties -
30
instances of nonca~pliance may nevertheless occur and not be detected. Also,
project ion of any $va luat ion of the structure to future per iods is subject to the
risk that procedures may become inadequate because of changes in conditions or
that the effect iveness of the des ign and operat ion of po 1 icies and procedures may
deteriorate.
For the purpose of this report, I have classified the significant inte¡nal
control structure pol icies and procedures used in administering federal financial
assistance programs in the following categories:
Treasury;
Revenue;
Expenditures, ircluding payroll;
Fiîancial Repc¡ting;
Types of services allowed or unallowed;
El;gibility;
Special re¡::;orting requirements;
Political activity;
Davis-Bacon Act;
C i v i 1 r i gh t s ;
Cash management;
Relocation assistance and real prcperty
Federal financial reports;
Allowable costs/cost principles;
Drug-free Workplace Act;
A,dmi n i strat ive Requ i rements;
Monitoring Subrecipients;
Cla ims for A,dvances and Reimbursement",,;
. . ~ .
acqulSll..10n;
For all of the interna' cont¡o' structure categories listed above, I obtained an
understanding of the design of relevant policies and procedures and determined
whether they have been placed in operation and I ass8'3sed control ~isk.
During the year ended June 30, 1994, the Housing Authority of the City of Salina
expended 99 percent of its total federa' financial assistance under major federal
financial assistance programs listed -in the accompanying Schedule of Federal
Financial Assistance.
I performed tests of controls, as required by CJv1B circular A-128, to evaluate the
effectiveness of the design and operation of interna' cor~rol ~,tructure policies
and procedures that I cons i cered relevant to ;:.'revent i ng or ,:'-etect i ng mater ia ì
nonccmp 1 iance wi th spec c" ic requ ~ rements, gener3.1 req; i remerts, and ,-equi rements
govern i ng c 13 ims for advance::. ê\,"",j reimtursefnent~, a,..,d amcuC't.~ c'a i;Yl8d or used for
,,'atc"ing t~at are appl;cable to each of t're ~Ot:::.;C'g ,~l_;t:!'-'or'~ty ~f "he City 0"
Sal~'la'::; 'T'.&jor and non-major- "'ec'eral f;,~;:'c'ci3' 3:::;sistarCf? progr3f"'~". '-Jnich are
identified in the accor"'par,:/c"2 Schedule of Federal f'i~arcia' Assistance. Hy
prccedures were lec:;.", ;n scope t),an wol_:'d be necessary'::::; ren-:'f?>'" ail opinion of
U"',es;e internal contro' ::.tructure ;Jolicies and ;Jrocedv'I':'",. .ð-c:ccrdingly, I de not
evpress such an opinion
I noted ro matters in'-/clving t!-1p i'-',:er,,31 CCC't~::" Çt~L:ct :re ,':1nd it:s cperation
t"at I ccnc:,ider to be r9por'tab'e -::e>r,dCt'cn':: .,.,,(Je~-:t3nG3~.js 9'3"3',)1 ;::.hed by the
A,merican Institute of Ce,rtified é)ublic Accc:Tta"ts. Repcrtab'e ccr-'d-itions
involve matters ccrni,ng to cur 3tte"t;cn '-e13ting L;,:.~gn'ri-::3~" ,jef;,:iercies in
the design or operatio;l of the interna' cc"t~cl s~r':ctu~e ':'-at ;..., "1",>, ju':'.gn:ert
31
could adversely affect the Housing Authority of the City of Salina's ability to
administer federal financial assistance programs in accordance with applicable
laws and regulations.
A material weakness is a reportable condition in which the design or operation
of one or more of the internal control structure elements does not reduce to a
relatively low level the risk that noncompliance with laws and regulations that
would be material to a federal financial assistance program may occur and not be
detected within a timely period by employees in the normal course c" performing
their assigned functions.
tvt,rconsideration of the internal control str-ucturewould not necessarily disclose
all matters in the internal control structure that might be reportable conditions
and, accordingly, would not necessarily disclose all reportable conditions that
a¡"e al::.o considered to be rraterial weaknesses as defined above. Since there were
no reportable conditions, there are likewise no material \.Jeaknesses.
This report is intended for the informat ion of managernent, any appl icable
regulatory bodies and the cognizant agency. This restriction is not intended to
limit the distribution of this report, which is a matter of public records.
~cY.~
Certified Public Accountant
Sep':ember 14, 1994
32
rOJSIi'G Alm-rnTIY a= Th'E CTIY a= SALINA
SALINA, KANSAS
STATJS a= PRIm AUDIT FINDI~
JUNE 30, 1994
The prior report on the audit of the financial statements as of and for the
twelve mcnths ended June 30, 1993, contained four findings. The corrective
actions taken by the Housing Authority is described below:
1 .
BondinG Insurance
The Hous i ng Author i ty
members.
now
has
F~delity
Bonding
for
all
Board
"
¿.
BudÇJet Overruns
The HOl:sirg Authority has monitored its budget more carefully.
3.
Overhead Exoenses
The Housing ,A,uthority is no\~ allocating a percentage of overhead
expenses to the Home Ownership Program.
4.
Tenant Fi les
Form 50058 is now being prepared for all tenants and rT¡aintained in
their file and lease amendf"'ents are being initialed by both the
Housing Authority and the tenant.
FINDII'KJS, REca+ENDA TIa~, AND REPLIES
JUNE 30, 1994
The following finds and recoTmencations were discussed with the Executive
Director during the audit.
"
L,
1 .
Tenant Files
Upon review of tenant files, ore file did not include all tenant
income for recerti~icatio~,
Recorrmendation
The Housing Authority
recertification.
should
tenant's
include
all
income
for
ReDly
The Housing Authoritj ha::. corrected tf-e file,
FDIC Insurance
The !-Iousi-cg Al:thorit> \,,;a'3 over it", cOle '~sur-,'iI,C~ "[1""t "or core of
its financial i"-'sti",!:icr'o, by $9,7n2
Recorrmencation
The Housing ,Authc:-~I:_' =:~Ol ~c rro~iror' '~'3 -::JepO'=;" "\'~'-C1IJ't3 to in~,ure
that it i-:: f!.:'l/ 'rj' :'ec' ,3~ -31' ¡:'~e'::-,
ReD"1'y'
The HoL:-::i:g Al_:thorir,/ ,'il' irrr-e(:'iate~y contact tl-.,,::, fi"ancia~
instit'.ltiof' 1"l or':'er 1::.:: becaTe adequateiy co"ate..-a'ized f::,~
lnsurance proposes.
33
..vJSI~ AlJT1-ffiITY a: 11-£ cm a: SALINA
SALINA, KANSAS
ACTIVITIES a= 11-£ PHA
JUt£ 30, 1994
The Housing Authority has 96 low income units under management, along with
28 Section 8 Vouchers and 229 Section 8 Certificates.
34