Audit - 1994/1995
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALI NA . KANSAS
REPORT ON AUDIT OF FlNANCL~L STATEMENTS
AND
SUPPLEMENTAL DATA FOR THE
TWELVE MONTHS ENDED JUNE 30, 1995
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CYNTHIA L. ~~RP~~
Certified Public Accountant
Eufaula, Oklahoma 74432
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Financial Statements
Independent Auditor1s Report
Low Rent: '
Exhibit A - Statement of Assets, Liabilities,
and Surplus - Statutory Basis
Exhibit B - Statement of Income and Expenses - Statutory Basis
Exhibit C - Analysis of Surplus - Statutory Basis
Section 8 Certificate: .
Exhibit D - Stat~ent of Assets, Liabilities,
and SurDlus - Statutory Basis 9
Exhibit E - Statement of Income and Expenses - Statutory Basis 10 I
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, ....- Éxhiblt'G'~ StateÌnénfåf Assets~ Ilabilíties~' ..' ,-," " '.. ' ,','
and Surplus - Statutory Basis 12
Exhibit H - Statement of Income and Expenses - Statutory Basis 13
Exhibit I - Analysis of Surplus - Statutory Basis 14
Home Ownership Program:
Exhibit J - Statement of Assets, Liabilities,
and Surplus - Statutory Basis
Exhibit I( - Statement of Income ~nd Expenses - Statutory Basis
Exhibit L - Analysis of Surplus - Statutory Basis
Notes to the Financial Statements
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA, KANSAS
JUNE 30, 1995
"'Table of ConfèntS" , .-
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Supplementary Data
Schedule 1 - Computation of Residual Receipts and
Accruing Annual Contribution - Statutory 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 Modernization and Development Programs
Independent Aud~tor s Report on Supplementary Information -
Schedule of Federal Financial Assistance
Scredule 5 - Schedule of ~ederal Financial Assistance
Independent Auditor's Report on the Internal Control Structure
in Accordance with Government Auditing Standards
,..Il1d€W~nd~ntAuditor,lsReport.on..ÇQ1!Ipliaflçe " ,'" ".- ,',:','",-,
:,' " in Accordance w'ith Government Auditing Standards'
Independent Auditor's Report on the Internal Control
Structure used in Administering Federal
Financial Assistance Programs
Independent Auditor1s Report on Compliance with the
General Requirements Applicable to Federal
Finan~ial Assistance Programs
Independent Auditor's Report on Compliance with Specific
Requirements Applicable to Major Federal
Financial Assistance Programs
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4
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7
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21
22
23
24
25
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27
29
30
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Independent Auditor1s Report on Compliance With Specific
Requ i rements App 1 icab le to Non-major F edera 1
Financial Assistance Program
StatU's' ôf 'Prl'otAudit' Fi ñdi ngs '
Findings, Recommendations, and Replies
Activities of the PHA
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CYNTHIA L. WARREN.
Certified Public Accountant
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Eufaula, OK 74432
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(918) 689-9590
INDEPENDENT AUDITOR'S REPORT
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 Avenu
Kansas City, Kansas 66101-2406
I have audited the accompanying financial statements of the Housing Author'ty of
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. ., . 0 .' 'the' Hoùs 1 ng' Aùthóri fyot' 'the City ôf Sali na ì s" månàgèmeìít: 'My' respons ì bi 1 . ty' is' ,
to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing stan
Government Auditing Standards, issued by the Comptroller General of the
States, and the provisions of Office of Management and Budget Circular
IIAudits of State and Local Governments". Those standards require that I pl
pe~~orm the audit to obtain r~a~onabl~ a~~urance about whether the fin
statements are free of material misstatement. An audit includes examini
a test basis, evidence supporting the amounts and disclosures in the fin
statements. An audit also includes assessing the accounting principles us
significant estimates made by management, as well as evaluating the a
financial statement presentation. I believe that my audit provides areas
basis for my opinion.
As described t~~ the financial statements, the Housing Authority of the
City of Salina pr-epares its financial statements on a prescribed ba is of
accounti ng that demonstrates comp 1 i ance with the accounting pri nci p 1 sand
standards prescribed by the U.S. Department of Housing and Urban Develo ment,
which is a comprehensive basis of accounting other than general1y 3.ccepted
accounting principles.
ards,
nited
-128,
nand
ncial
g. on
ncial
d and
era 11
nable
In my opinion, the financial statements referred to in the first pa agraph
present fairly, in all material respects, the financial position on a reg latory
"", ...~Þ§i~is of.tl}~Housi,ng...l\~~r9r~ty ()f tJ't~.Ç~tY.,9f;Sali,n~.~~,pf June ~O, J~95~..,nd.th.~
" results of lts operatlons and changes ln surplus for the year then ended on the
basis ~f accounting practices described in Note 2.
!n accordance with Government Auditing Sta~dards, I have also issued a report
dated September 26,1995 on my consideration of the Housing Authority of t e City
of Salina's internal control structure and a report dated September 26, 995 on
its compliance with laws and regulations.
My audi t was made for the purpose of formi n9 an opi ni on on the fi anci a 1
statements taken as a whole. The accompanying financial information li ted as
supplemental data in the table of contents is presented for purpo~es of
additional analysis and is not a required part of the financial statements of
4
Housing Authority of the City of Salina. Such information has been subjected to
the auditing procedures applied in the audit of the financial statements and, in
.. myo'p'inJon,is,faJr)y'.p"-'~~,~nted..t'1.al1,mat~ria1.respect~ 1[1 r~Jatton to. ~,he.. . '
financial statements taken as a whole.
This report is intended solely for the information and use of the governing body
and management of the Housing Authority of the City of salina, and for ~iling
with the U.s. Department of Housing and Urban Development. This restrictlion is
not intended to limit the distribution of this report, which is a matter of
public record. .
1
~ ¿1. LUJJt,wJ
Certified Public Accountant
September 26, 1995
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Exhibit A
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA, KANSAS
""ANNUAL' CÓNTRIBUT10N'S'COtftRACT:' FW-1114
PROJECT NUMBER: KS038002-005
LOW RENT
STATEMENT OF ASSETS, LIABILITIES,
AND SURPLUS - STATUTORY BASIS
FOR THE TWELVE MONTHS ENDED
JUNE 30, 1995
ASSETS
Cash
Accounts Receivable:
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"....Irit~rp.r.9gh:im~,'."'.,..:'.." 0' ".,..,. - ",', .',,", '13,49~.:~2,', ,
Oth'er", ' ' " 185.00
Debt Amortization Funds 69,638.31
Deferred Charges 9 331.83
Land, Structures, and Equipment 3 682 091.47
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84.813.92
Total Assets
$ 3 865 944.67
LIABILITIES AND SURPLUS
Liabilities:
Tenants' Security Deposits
Accounts Payable:
Contract Retentions
Other
Accrued Payments in Lieu of Taxes
Prepaid Rents
Fixed Liabilities
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$ 13 783.00
50 225.00
3 373.45
10 339.01
500.00
1 690 392.59
1 ,768 613. as
2 097 331. 52
$ 3 865 944.67
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To:al Liabiìities
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Total Liabilities and Surplus
The accompanying notes to the financial statements are an integral part fuereof.
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Exhibit B
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA. KANSAS
ANNUACcONTRIBUiIONSCONTRACT': "tw":1114-'" -'
PROJECT NUMBER: KS038002-005
LOW RENT
STATEMENT OF INCOME AND EXPENSES - STATUTORY BASIS
fOR THE TWELVE MONTHS ENDED JUNE 30, 1995
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Operating Income:
Dwelling Rental
Interest on General Fund Investments
Other Income
Total Operating Income
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Utilities 4,47.46
Ordinary Maintenance and Operation 85,78.88
General Expense 48,99.41
Nonroutine Maintenance 12 07.59
Total Operating Expenses
Net Operating Loss
Other Charges:
Prior Years', Adjustments Affecting Residual Receipts
Interest on Notes and Bonds Payable
Total Other Charges
Net Loss
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The accompanying notes to the financial statements are an integral part ~ereof.
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Exhibit C
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA~ ,KANSAS
, ' , ANNUAL CONTRIBUTIONS tONTRACT: 'FW~1l14
PROJECT NUMBER: KS038002-005
LOW RENT
ANALYSIS OF SURPLUS - STATUTORY BASIS
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
Net Loss For the Year
Provision for ODerating Reserve
Unreserved Surplus:
Balance Per Prior Audit
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".,. -,' OJ)ératlng Reserve: "', '. '. ,- -: ,"" "'" -,-' ""
Balance Per Prior Audit
Provision for Reserve
Total Operating Reserve
Cumulative HUD Contributions:
Ba1ance Per Prior Audit
Operating Subsidy
Annual contributions
Total Cumulative HUD Contributions
Cumulative Grants:
Balance Per Prior Audit
Grants Received
33371.42
Total Grants
1. 185 0 0.64
Total Surplus
S 2. 'J97 . 3 1. 62
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The accompanying notes to the financial statements are an integral part htreof.
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Exhibit D
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA, KANSAS '
A~NUAl CONiRIBUTIONS' 'CÒ~TRÄCT: ' KC~ 70 l5E ."
PROJECT NUMBER: KS16E038001008
SECTION 8 CERTIFICATE
STATEMENT OF ASSETS, LIABILITIES,
AND SURPLUS - STATUTORY BASIS -
JUNE 30, 1995
ASSETS
Cash
Accounts Receivable:
HUD
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24.56
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15 48.32 '
178 08.81
Total Assets
LIABILITIES AND SURPLUS
Liabilities:
Accounts Payable:
lnterprogram
Deferred Credits
$ 10. 21.65
69. 112.00
Total Liabilities
ì9~ 33.65
Surplus (Exhibit F)
Total Liabilities and Surplus
98 75. 16
$ 178 08.81
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The accompanying notes to the financial statements are an integral part h reof.
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HOUSING AUTHORITY OF THE CITY OF SALINA
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ANNUAL CONTRIBUTIONS CONTRACT: Kc-70l5E
PROJECT NUMBER: KS16E038001008
SECTION 8 CERTIFICATE
STATEMENT OF INCOME AND EXPENSES - STATUTORY BASIS
FOR THE TWELVE MONTHS ENDED JUNE 30t 1995
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Operating Income:
Interest on Operating Reserve
Interest on General Fund Investments
Total Operating Income
Exhibit E
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Oper,atjngExpenses; -, '..,.",",.. '..;,. ',' "':""" "
Administration
Independent Public Accountant Costs
Housing Assistance Payments
Total Operating Expenses
Net Loss
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The accompanying notes to the financial statements are an integral part h~reof.
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA, KANSAS
, , ANNUAl' CONTRIBUTIONS CONTRACT:' 'Kc~ 70 15E
PROJECT NUMBER: KS16E038001008
SECTION 8 CERTIFICATE
ANALYSIS OF SURPLUS - STATUTORY BASIS
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
Unreserved Surplus:
Balance Per Prior Audit
Net Loss For the Year
Provision for ODerating Reserve
Provision for Project Account
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Operating Reserve:
Balance Per Prior Audit
Provision for Reserve
Total Operating Reserve
P~Qject Accau~t - U~fu~ded:
Balance Per Prior Audit
Provision for Project Account
Total Project Account - Unfunàed
Cumulative HUD Contributions:
Balance Per Prior Audit
Annual Contributions
Total Cumulative HUD Contributions
Total Surplus
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Exhibit F
$( 7,002.89.59)
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The accompanying notes to the financial statements are an integral part ~ereof.
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA, KANSAS
ANNUAL CONTRIBUTIONS CONTRACT:' ", KC:7015" ", ",
PROJECT NUMBER: KS16VO38001002
SECTION 8 VOUCHER
STATEMENT OF ASSETS, LIABILITIES,
AND SURPLUS - STATUTORY BASIS
JUNE 30, 1995
Exhibit G
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ASSETS
Cash $ 12,291.24
Accounts Receivable:
HUD 4,419.56
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LIABILITIES AND SURPLUS
Liabi ì Hies:
Accounts Payable:
Interprogram
Deferred Credits
Total Liabilities
$ 2,348.47
10.952.00
13,300.47
Surplus (Exhibit I)
4 910.21
Total Liabilities and Surplus
$ 18.210.68
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The accompônyi ng notes to the fi nanci a 1 statements are an integra 1 part hlereof.
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Exhibit H
HOUSING.AUTHORITY OF THE CITY OF SALINA
SALINA~ KANSAS .. '
, ANNUAl'tONTRlBUTIÒNS tONTRACT:-'K(-7Ò15
PROJECT NUMBER: KS 1 6V038001 002
SECTION 8 VOUCHER
STATEMENT OF INCOME AND EXPENSES - STATUTORY BASIS
FOR THE TWELVE MONTHS ENDED JUNE 30,1995
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Operating Income:
Interest on Operating Reserve
Interest on General Fund Investments
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Total Operating Income
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.. Admi ni strati 9Ì1 ' , "". ,: ..' ,-' '" .. ' -,.. ,. "..' .. 11, 10..0.6 , .. ,.
Indeoendent Public Accountant Costs 8.00
Housing Assistance Payments 9869.39
Total Operating Expenses
Net Loss
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The accompanying notes to the financial statements are an integral part h reof.
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA. KANSAS
, , .. ANNUAL' 'CONTR]BUTIONS CONTRACT: Kc-7015
PROJECT NUMBER: KS16V038001002
SECTION 8 VOUCHER
ANALYSIS OF SURPLUS - STATUTORY BASIS
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
Unreserved Surplus:
Balance Per Prior Audit
Net Loss for the Year
Provision for Operating Reserve
Provision for Project Account
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. Operatlng Reservè:'
Balance Per Prior Audit
Provision for Reserve
Other Adjustments or Corrections
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Total Operating Reserve
~rQject Account - Unfunded:
Balance per Prior Audit
Provision for Project Account
Total Project Account - Unfunded
Cumulative HUO Contributions:
Balance Per Prior Audit
Annual Contributions
Total Cumulative HUD Contributions
Total Surplus
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The accompanying notes to the financial statements are an integral
14 -
Exhibit I
$ ( 522.60.62)
( 109,39.36)
( 2. 95.20)
( 48.96.44)
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA9 KANSAS
,.. "HOMÊ'OWNERSHIP PROGRAM" ',"0
STATEMENT OF ASSETS, LIABIlITIES9
AND SURPLUS - STATUTORY BASIS
JUNE 30, 1995
Exijibit J
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ASSETS
Cash
Accóunts- Receivable:
Other
Total Assets
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LIABILITIES AND SURPLUS
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Liabilities:
Accounts Payable:
Interprogram
Surp1us (Exhibit L)
$
425.30
88 817.57
Total Liabilities and Surplus
,2.87
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The accompanying notes to the financial statements are an integral part hereof.
15
HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA~ KANSAS
. . . . HOME OWNERSHIP PROGRAM ..' .. . , ',-,
STATEMENT OF INCOME AND EXPENSES - STATUTORY BASIS
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
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Operating Income:
Interest on General Fund Investments
Operating Expenses:
Administration
Ordinary Maintenance and Operation
General ExDense
"",';'" ""!";:"'!:'~"'::":""¡<"';.,..v';H~"'" :,', Tqt,g,l ,..9P.~..rj~,:t;,tQ9, "~~!l.~f!!,~,.,,, :"""':"'::"';:<'>":'F~;:'.;-7 4-,;c,""',', -""...li,:,:,..,:"oé ,-:::.-:....¡,:j',,':'I;"';' '.
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The accompanying notes to the financial statements are an integral part ereof.
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA~ KANSAS
"-"-"'" "HOME'OWNERSHIP'PROGRAM ,-
ANALYSIS OF SURPLUS - STATUTORY BASIS
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
Exhibit l
Unreserved Surplus:
Balance Per Prior Audit
$ (
Net Loss for the Year
Total Unreserved Surplus
~:è "'-"""" ...i.,~;:,..'~'o ":,~ç"~{-~~~~p~~Q.~:~t2~1;kt'å{¥~,,,.;i"""':-'"'$"j"r........;.~~~,~.:",,~...-,"-:...~~ ~,;"":""~""J.~~4-:~"'7,~"i<:'..,..J,.;.;'.....~- '16ff": 97 :6å'- : '. ',\O,;? ,:::,:..,,';"::. ,
""" "",""""'0 ,....'..,' '-"'-""',"""""""""""""""-,0"""", ,,>', "..
Total Surplus
$
. .."
-,.",.. ,
, ,
The accompanying notes to the financial statements are an integral part h reof.
17
.. ,",' "..
HOUSING AUTHORITY OF THE CITY OF SALINA
.. " ,SAU~~ ,~SAS,...; , '. ~
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995
Page 1 of 3
Note 1 - The ReDortinQ Entity
The agency was created under the provisions of the laws of the S ate of
Kansas. The purpose of the agency is to administer Public ousing
Programs authorized by the United States Housing Act of 1937.
The governing board is appointed by the Mayor of the City of Salin. The
gov~rn;ng board employs executives; authorizes contracts of subsi y ~ith
the U.S. Department of Housing and Urban Development (Annual contri utions
. ..', 'r-nnt"'a' ct\.nur.suant ,.- +,nc.., tb::>:t . agenl"'vls, reau1~+;nns "and' st tu+~"':v. ' "
,.:,:_""c"""",s:"""",':':'f.~r',;:'_"",~",; . ""';'-,y ,~. ,: "',J'.~:I.""',".';""", ~",...,..' UJ.õ.""',....,WI", ~1a:u1.Cl "~."', ,':~"'" . '~"::r-"',:"'",,,';-~:",~,~,
,authorjzations ;,..,and, causes ,the.. agency, to ,construct,. own,., and, perate
public housing facilities. The financial liability of the housing agency
is essentially supported by the operating and debt service su sidies
received under contract from the Federal government.
In determining how to define the reporting entity, all potential co ponent
units have been considered. Each potential component unit was ev luated
using the criteria set forth in Governmental Accounting Standard board
pr~~cu~ce~ê~ts. These criteria iöclüde, but are öct liilli ad tc
manifestation of oversiaht resoonsibilitv. scooe of Dublic servi e. and
special financing relationships. Oversight responsibility is det rmined
by the extent of financial interdependency, control over the selec ion of
the governing board and management, ability to significantly in luence
operations, and accountability for fiscal matters. Based on these
criteria, there are not additional entities which should be incl ded in
the financial statements.
Note 2 - Basis of Accounting
The financial statements of the authority are presented in accordan e with
a basis permitted or prescribed by the U.S. Department of Housing and
Urban Development, and differs from generaily accepted acc unting
principles, in that:
A.
c.
Funds and activities of the agency are not classified by fu d type
,or:,accouot ,group., :",. .~.' '.. ""'¡-', . , ;""
'G~v~r!1ment gran~'s are no~ refle~ted in the income statement, tut are
credited directly to the surplus accounts.
In the event any of the activities of the agency were classi ied as
an E~terprise Fund, no depreciation is provided as a charge 19ainst
earm ngs . ,
Most of the disclosures required by generally accepted acc unting
principles are omitted.
B.
D.
18
- ,
.. ..,;..- ,', ',' " , " ". -
HOUSING AUTHORITY OF THE CITY OF SALINA -
. " " SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995
!
Pagel 2 of 3
Note 2 - Basis of AccountinQ - (Continued)
E.
F.
Comparative data is not presented.
Near 1 y a 11 expenses are recogn i zed when pa i d rather th n when
incurred, and all revenue, with the exception of inço e from
tenants/participants, is recognized when received rather t an when
èarned.
G. A statement of cash flows is not presented. " '
'",',r~,.".:,~."~,~.~,¡¡,<;~;",.~~.'i,"~",:,,,,;;,.,~"t;'l:.-.~~~",.",,""':i::~""';:?';~,; ~~"':"""'t:,<, ',"-:""':~.,,~; ;,;!;" ,,",,:, "'1""';'\<""..-:1,i"+,;';"""-"VS;';",,.r",:"",t.~~... :~,"¡';':'r.t""-' :';;'" "::-=:"'~"';;:'~,:¡,.!:":!...:-t:..,:."""
. ,", "" "".'
Note 3 - Cash
H/"" There is no allowance for doubtful' accounts"as 'uncolectible
accounts are charged against earnings using the specific ch rge-off
method.
I.
J.
Inventories of materials and supplies are not maintained.
Prier year I s adjustments are reflected in the income s atement
rather than in the equity statement.
'I
1\..
The ba1ance of equity accounts for the beginning of the p riod is
reconciled to the prior audited financial statement balanc s.
No budgeted to actual comparisons are presented.
L.
M.
N.
No combined or combining financial statements are
The costs of compensated absences are reported in the period paid
rather than in the period earned.
As required by law, the depository is required to have FDIC insura ceo As
of June 30, 1995, the Hcusing Authority was not fully insured. owever,
fu 11 coverage was provi ded duri ng Ju 1y, 1995. Cash i nc ì udes demand
deposits and time deposits.
- ".-.." "-"'r'.'
Note 4 - Fixed liabilities
The balance of $967,444.99 represents the amount of financing received
from the Department of Housing and Urban Development for the const uction
of housing projects. Due to provisions of the "Consolidated Omnibus
Budget Act of, 198511, the Department of Housing and Urban, Develop ent no
longer makes debt service annual contributions on HUD-held notes.
The Housing Authority has a note payable to the Federal Financing bank of
$722,947.60 at 6.6%. The Department of Housing and Urban Development has
guarantees through the Annual Contribution Contract for the servi ing of
the debt.
19
, -""""" ' "
HOUSING AUTHORITY OF THE CITY OF SALINA
SALlNA~ KANSAS, .
NÖTÈS to' rHEFÜ4ÄNêIAlSTÀTEMËNTŠ" .
JUNE 30 ~ 1995
Page ~ of 3
:
,
,j., ,
Note 4 - Fixed Liabilities - (Continued)
Maturities for the note payable to the Federal Financing Bank are as
follows:
Year Ending
Princioal
6-30-96
6-30-97
$
20.173.57
21,377 .95
"C..> '" ~,.t-~à"$o'¡j"-,~,,.. .-'" }.;"":~'!i":',""-";i.....,-,...,.y",,:.Q,-::~,O.;::9~,:,,:i':'"'~;"'-:¡':"" ,~,:,:":":\,!,\;;,,,,,,:"':¡'~~'.:v;:<..,~,......j,,!~d'.22.-,9.1&,J,9Jt'::.- "':i:;:i,~,:.~,~'.<i'~~":.J';'-:W"-".;"_"" ;;,~" ,.,,':"
-"',",',',' '", .6-~0-99. "'" .~...",.24,~428.42"... ... '.
'6-30-00 26,040.70
Thereafter 608.010.99
$ 722.947.60
, -,... "' L ,..c"., .',
. ," .
",' > ¡"""
, ','{~' ,. '
.' ,',',' ..,
20
HOUSING AUTHORITY OF THE CITY OF SALINA
- SALINA~ KANSAS
- "ANNUAL CONTRIBUTIONS CONTRACT: .. FW-1l14"
PROJECT NUMBER: KSO38002-005
COMPUTATION OF RESIDUAL RECEIPTS AND
ACCRUING ANNUAL CONTRIBUTION - STATUTORY BASIS
LOW RENT "
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
Computation of Residual Receipts:
Operating Receipts:
Operating Income (Exhibit B) -
HUD Operating Subsidy
Schedule 1
I .'
I
':".:",'.".~.' ,;"'".,'-":,,;t ,:,:..::.i.",-:;;;..,I.!t~:~J.>9,p~r~i\'l~::-,.~~,ç..J.'1~g..:.t~~ :!:;:"""¿-::':'<""'.:,'-",<""i,'r";:':,"!~,~~,;"..~'"~';,!:,~:",,,r..¡P~i""",;'" -" - .~"' 5, -,' ," ~.., ,'~""':~.'::~L"";"~"",
Operátirig Expeñdittires':"
Operating Expenses (Exhibit B)
Replacement of Nonexpendible Equipment
Property Betterments and Additions
Prior Years' Adjustments Affecting Residual
Total Operating Expenditures
Receipts
Residual Receipts Per Audit
Provision for Operating Reserve
Residual Receipts (Deficit) Per PHA
Computation of Accruing Annual Contribution:
Fixed Annual Contribution
Accruing Annual Contribution
" ,; ,
"
21
$
$
, ,,',. ~ ,", '-'-
""':' '.'
HOUSING AUTHORITY OF THE CITY OF SALINA
, SAllNA~ KANSAS
'," " . . 'ANNUAL CONTRIBUTIONS CONTRACT: 'Kc'-70l5E
PROJECT NUMBER: KS 1 6E038001 008
SECTION 8 CERTIFICATE
COMPUTATION OF ANNUAL CONTRIBUTION EARNED - PROJECT ACCOUNT
AND OPERATING RESERVE CHANGES
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
Sch dule 2
I, ..
I
Maximum Contributions Available:
Maximum Annual Contributions Authorized
Project Account Balance at .the Beginning
of the Year
Operating Reserve Changes:
Operating Receipts:
Operating Income (Exhibit E)
Annual Contribution E~rned
$
, ~~:", ~",.,;:...'~i,'~'"
" ""~' ".~..ïnt¡: l"Annu¡: 1...,C'pntr.i.butiQl1$",Av.¡: ilQblø "~"""""""""""f'~--""""
':' "..""""(.,,..:.;.s.,r.~,~,"t',.,y~~;,,~~~!!~,"1::..~, .~L...~~" -, ." "'",,'"""', ,.,-.,.,\.~-",. -.'" """"-'.--,:,'~'" "'.""""~-'~-""-
'Annuà f Contributlon' Required: "-
Administrative Fee
Audit Fee
Hard-to-House Fees
Housing Assistance Payments
Total Funds Required
Project Receipts Other than Annual
Contributions
Total Annual Contributions Required
Project Account Change:
Provision for Project Account (Exhibit F)
Annual Contribution Earned
Total Operating Receipts
. Ope'rating' EXpenditures:"
Operating Expenses (Exhibit E)
'"",
.' "
, "
Net Operating Receipts Available Per Audit
Provision for Operating Reserve
710 02.66
19,3 6.14
19 3 6. 14
Deficit (Carryover)
$
0.00 '
22
HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA, KANSAS
ANNUAL CONTRIBUTIONS CONTRACT: KC-7015
, 'PROJECT NUMBER: KS16VOjåOOlû02'
SECTION 8 VOUCHER,
COMPUTATION OF ANNUAL CONTRIBUTION EARNED - PROJECT ACCO
AND OPERATING RESERVE CHANGES
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
Operating Expenditures:
" ,Oper,ating, ~ens~s: (E~hibit H)
Net Operating Receipts Available Per Audit
Provision for Operating Reserve
." ,
UNT
$ 160 ,431. 00
193 646.89
$ 354 077 .89
- ~,'i<'...,,!""";'~' '~;'~-'!'."'~"'l'-
" 13 ,079.44
78.00
98 689.39
111 846.83
12.27
$ 111 834.56
$ 48 596.44
$ 111 834.56
$ 188.09
111 834.56
112 022.65
109 927.45
2 095.20
2 095.20
$ 0.00
';":-::':-"'S-,;O¡'C""
Maximum Contributions Available:
Maximum Annual Contributions Authorized
Project Account Balance at the Beginning
of the Year
Total Annual Contributions Available
~ c' ~ ':"C"','" , ,'." ':O:"',;f,!,.'S<".,.~.,:..,'~~;~"........,ç¡,,--f,..:v,';::<I..,i,...,' .~,~,,"¡,;;,¡ ~~.",.,v_,"":~u;,"'. ~':"'....".-s" ~.., ...~;..:',....~'",,-:; ";';">~';"'¡~,~~;"'~'n, -t..~:~?o:~~.....",..~ ~r;.:y,
, '., ',Annual~ Coritribut ion Requi ~~cj: , " '., ,'. ' ',' '. ~
Administrative Fee' , ,
Audit Fee
Housing Assistance Payments
Total Funds Required
Project Receipts Other than Annual
Contributions
Total Annual Contributions Required
Project Account Change:
Provision for Project Account (Exhibit I)
Annual Contribution Earned
Operating Reserve Changes:
Operating Receipts:
Operating Income (Exhibit H)
Annual Contribution Earned
Total Operating Receipts
Deficit (Carryover)
23
HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA, KANSAS
SCHEDULE OF MODERNIZATION AND DEVELOPMENT PROGRAMS
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995
Sch dule 4
KS16-P03804z KS16-P038-005 KS16-P 38-004
Funds Approved $ 30,000.00 $ 3,427,411. 00 $ 678,945.00
Funds Expended 30.000.00 477 .561.60 671 037.45
Excess Funds Approved $ 0.00 $ 2_,-949.849.40 $ 7 07.55
",:,..'" ; """""':"->{ ~y¡.".\.,. '1!";"~ ';, ,. ".','"~ ,~: ;,",.,.," .,., ~'...,~-,' ":::;",'~"'J',,,:,.ti" ";'.,-,;,..;.' ,'~":,,,,:""NC:'--;,~';"':-~,,', ,',' ~"..,';"" :",': ,'t:o "~y,,,~.,.,:-.....,,';'~,,:,:",,4':': ..~t........'.';'.'.""""~"'¡'-'" ':":";'\.;"'.i,";.~
Funds Advanced' '$' 29,005.51 ' $ 438,736~ 11 . $ 671;649.22-
' ',' .., .' "., - , , ','.. .. .' '~, , " '~",' " ,
Funds Expensed
Excess Funds Advanced
30.000.00
$ ( 994.49)
477 . 561. 60
,L( 3ê.825.41l,
$
671 037.45
11.77
',.".
, .
. ... ,
24
CYNTHIA L. WARREN
Certified Public Accountant
=======================================================================
P. o. Box 189 " ,
Eufaula, OK 74432
, '.' ,,' ,
INDEPENDENT AUDITOR'S
REPORT ON SUPPLEMENTARY INFORMATION -
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
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 Aven e
Kansas City~ Kansas 66101-2406
I have audited the financial statements of the Housing Authority of the ityof
,',. "',,'" ". ,::,',i,;""i,.. :;=SaHna'-fofÞ' the"Y~Y'-:'~nded""ður ,ê'30"';'i"1995"':::1hd,,'ttá'VÈf,'t s'§ûed"'ib:r~'r'epor't' they'eô' "'da.téd'::""~""""'" ','
~ September 26, 1995.' ,These fi nanci a1 . statements" are the respons i bil i ty of the" ., '
Housing Authority of the City of Salina's management. My responsibilit is to
express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing sta dards,
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.1I Those standards and OMB circula A-128
require that I plan and perform the audit to obtain reasonable assuranc about
~hetheÎ the finõncial statements are free of materiaì misstatement. A audit
includes examining, on a test basis, evidence supporting the amoun sand
disclosures in the finõncia1 statements. An audit also includes assess ng the
accounting principles used and significant estimates made by management, swell
as evaluating the overall financial statement presentation. I believe hat my
audit provides a reasonable basis for my opinion.
As described in my report on the financial statements referred to in th first
paragraph, the Housing Authority of the City of Salina prepares its fi ancial
statements on a prescribed basis of accounting that demonstrates complian e with
the accounting principles ~nd standards prescribed by the U.S. aep~rt ent of
Housing and Urban Develooment. This basis is a comprehensive basis of acc unting
other than generally accepted accounting principles.
My audit vias made for the purpose of forming an opinion on the fi ancial
stateI:lents of the Housing Authority of the City of Salina taken as a whoì . Tne
", "accompanying Schedule of Federal'Financial Assistance is presented for p rposes'
of additional analysis and isllo1[) required Rart of the financial stat ments.
ïhe information in that schedule has-6een subjected to the auditing pro edures
applied in the audit of the financial statements, and, in my opinion, is fairly
presented in all material respects in relation to the financial statement taken
as a whole.
~d.~
Certified Public Accountant
September 26, 1995
25
HOUSING AUTHORITY OF THE CITY OF SALINA
. . SALINA9 , KANSAS,
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
JUNE 30, 1995
Sc edule 5
Federal Grantor
ProgrãID Title
CFDA No.
Grant
1.0. No.
rogram
eceipts
U.S. Department of Housing and Urban Development
Major Programs:
Direct Programs:
Development' 14~852 FW-1114 $ 33 ,771.42
Operating Subsi~y 14.850 FW-l114 7 ,922.00
Ann~al Ccntributicns 14.850 FW-1114 6/,838.11
Annual Contributions 14.156 KC-7015E 72 332.56
'.,: .,'.,:, ".,..~';'.J"'~,A,!!"':~ë'; ~:.,;r otal;'Major:;f edera }',Progra1i""'-Recei pts' f,:v "",-"",:,¡"!~"",_:""",,,~,;~,,;'.6'-'!:""'!"!1 "20 ""91:.t~ Og-:":,;-":':,,,,:,,."'<,.
---------------------------------------------------------------------- -------
Non-major Programs:
Direct Programs:
Annual Contributions
14.177
KC-701S
111 834.56
Total Federal Program Receipts
Federal Grantor
?rogram Title
$131
748.65
CFDA No.
Grant
1.0. 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-11l4
FW-l1l4
FW-1114
KC-7015E
Expenditures
$ 323, 187.61
76,922.00
67,888. 11
726 332.56
1.194330.28
Non-major Programs:
Qirect Programs:
Annual Contributions
14. 177
Kc-7015
111 834.56
Tota1 Federal Program Expenditures
$1.306 164.84
Indebtedness to the'U.S. Department of Housing
. . ànd Urban Deve 1 opment
Indebtedness guaranteed by the U.S. Department of Housing
and Urban Development
I,
$ 967 444.;9
$ 722 947.60
The progr.am rece i pts 1 i sted above ref1 ect amounts expended by the U. S. Dep ~rtment
of Housing and Urban Development on behalf of the housing authority, as ~ell as
amounts paid directly to it.
The program expenditures listed above reflect amounts expended by the ousing
authority under its federal financial assistance programs as well as expen itures
made or applied on its behalf.
26
CYNTHIA L. WARREN
Certified Public Accountant
I
, P. O. Box 189
Eufau1a, OK 74432
====================================================================== =======
(918) 89-9590
INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL
STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
"
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 11,400 State Ave ue
Kansas City, Kansas 66101-2406
I have audited the financial statements of the Housing Authority of the City of
"'<:'"""'~~',~"""",wi.~a:Sa:1å.n<t,',~.a$...Qf.,~nd.<f{)r..",the,.year _'.ended June¡,.,30,." ]'995".~"aDd,-havehissued....-m"repor:~" ;,,";.."-.!","~,
thereon dated September, 26, 1995. As described in Note 2 to thef nancial
statements on a prescribed basis of accounting that demonstrates complia ce with
the accounting principles and standards prescribed by the U.S. Depar ment of
Housing and Urban Development, which is a comprehensive basis of accounti g other
than generally accepted accounting principles.
I conducted my audit in accordance with generally accepted auditing st ndards,
Government Auditing Standards, issued by the Comptroller General of th United
States, and the provisions of Office of Management and Budget Circulal A-128,
IIAudits of State and Local Governments.1I Those standards and OMB Circu1 r .4.-128
require that I plan and perform the audit to obtain reasonable assuran e about
whether the financial statements are free of material misstatement.
The management of the Housing Authority of the City of Salina is respons ble for
establishing and maintaining an internal control structure. In fulfill ng this
responsibility, estimates and judgments by management are required to as ess the
expected benefits and related costs of internal control structure poli ies and
procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that ass ts are
safeýuarded against loss from unauthorized use or disposition, a d that
transactions are executed in accordance with management's authorizati ns and
recorded proper ly to permi t the preparati on of fi nanci a 1 statements in ac ordance
with accounting practices prescribed or permitted by the U.S. Depai~'" ent of
Housing and Urban Development. Because of inherent limitations in any internal
control structure, errors or irregularities may nevertheless occur and not he
detected. ,Also, projection of any evaluation of the struct~re to future periods
is subject to the risk that procedures may become inadequate because of changes
in cond~tions or that the effectiveness of the design and operation of ciicies
and procedures may deteriorate.
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, 1995, Iobt ined an
understanding of the tnternal'control structure. With respect to the i ternal
control structure, I obtained an understanding of the design of relevant p licies
and procedures and whether they have been placed in operation, and I assessed
control risk in order to determine my auditing procedures for the pur ose of
expressing my opinion on the financial statements and not to provide an pinion
on the internal control structure. Accordingly, I do not express such an 0 inion.
27
A material weakness is a reportable condition in which the design or op ration
of one or more of the speci f i c i nterna 1 contra 1 structure elements d es not'
reduce to a relatively low level the risk that errors or irregulari ies in
amounts that would be material in relation to the financial statement being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions.
My consideration of the internal control structure would not necessarily d sclose
all matters in the internal control structure that might be rèportable con itions
and, would not necessarily disclose all reportable conditions that a e also
considered to be material weaknesses as defined above.
This report is intended for the information of the management, any app icable
regulatory bodies and the cognizant agency. However, this report is a ma ter of
public record and its distribution is not limited. '
,- -. - f. '< ' . $.Î1I"":;r':j'.'¡"";~ "~t...P' l?"Þr','"} '::'~' '.' ;:,', ""4¿,,~,,~',b'("';:;~; ;C'4:,~""!"".',.~-,;:",,,~"~;<t!.~~:";""-""""'~':\'i\..,~~-'"""~;":;'."""'~'-";.' ":,;". ,...'.
,""',,"".~~' ~~~-<~'"'""'~';;;;:;;"ú ~~;--'~"
Certified Public Accountant
September 26, 1995
,-
28
"
CYNTHIA L. WARREN
Certified Public Accountant
=========================;===================;=========================þ======
P.O. Box 189 .
Eufaula, OK 74432 (918) j9-9S90
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS I
¡
I
U.S. Department of Housing and ¡
Urban Development
Kansas City Regional Office
Gateway Tower II, 400 State Aven e
Kansas City, Kansas 66101-2406
Board of Commissioners
Housing Authority of the
City of Salina
Post Office Box 1202
Salina, Kansas 67402-1202
I have audited the financial statements of the Housing Authority of the City of
,~.". '"",', '-', ~'~h~~~~~~~~~'t~~""~~~tr:J'be~Q~2i~~~{9~~~e4:Ä~~J)dèl2;i 6~cI?til~ßgi:~?'~~"fs.sïR-1~'~"-~rl~l;~l";~ '-,~,~"~. . '
statements on a prescri bed bas is of accounti ng that demonstràtes' comp 1 i a ée wi th
the accounting principles and standards prescribed by the U.s. Depart ent of
Housing and Urban Development, which is a comprehensive basis of accounti g other
than generally accepted accounting principles.
I conducted my audit in accordance with generally accepted auditing sta dards,
Government Auditing Standards, issued by the Comptroller General of the United
States, and the provisions of Office of Management and Budget Circular A-128,
II Audits of State and Local Governments. II Those standards and OMB C i rcu 1 r 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 re sonable
assurance about whether the financial statements are free of aterial
misstatement, I performed tests of compliance with certain provisions of laws,
regulations, contracts, and grants. However my objective was not to pr vide an
opi ni on on overa 11 comp 1 i ance wi th such provi s ions. Accordi ng 1 y, I do not
express such an opinion.
The results of my tests disclosed no instances of noncompliance that are equired
to be reported herein under government Auditing standards.
This report is intended, for the- information of management, any ap licabìe
regulatory body, and the cognizant agency. However, this report is am tterof
public record and its distribution is not limited.
&¡t¡WUo d. LÙtiwl
Certified Public Accountant
September 26, 1995
29
CYNTHIA L. WARREN
Certified Public Accountant
P.O. Box 189
Eufaula, OK 74432
------------------------------------------------------------------------------
------------------------------------------------------------------------------
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 Aven e
Kansas City, Kansas 66101-2406
(918) 6~9-9S90
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INDEPENDENT AUDITOR1S REPORT ON THE
INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING
EIPERAl FINANCIAL ASSISTANCE PROGRAMS
I have audited the financial statements of the Housing Authority of the ityof
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September 26, 1995. ~ r havealso'áudited the Housing Authoritý of the ityof
Sa 11 na IS compliance with requi rementsapp 1 i cab 1 e to major federal fianci a 1 0
assistance programs and have issued my report thereon dated September 26 1995.
As described in Note 2 to the financial statements on a prescribed b sis of
account i ng that demonstrates comp 1 i ance wi th the accounti ng pri nci p 1 sand
standards prescribed by the U.S. Department of Housing and Urban Devel pment,
wh i ch i s a comprehens i ve bas i s of account i ng other than genera 11 y a cepted
accounting principles.
I conducted my audits in accordance with generally accepted auditing sta dards;
Government Auditing Standards, issued by the Comptroller General of the United
States; and Office of Management and Budget (OMB) circular A-128, Audits 0 State
and Local Governments. Those standards and OMB Circular A-128 require that I
plan and perform the audit to obtain reasonable assurance about wheth r the
financial statements are free of material misstatement and about whethe the
Hous i ng Authori ty of the City of Sa 1 i na comp 1 i ed with 1 aws and regu 1 t ions,
noncompliance with which would be material to a major federal fi ancial
assistance program.
In planning and performing my audits for the year ended June 3D, 995 I
considered the Housing Authority of the City of Salin31s internal ontrol
structure in order to determine my auditing procedures for the purp se of
expressing my opinion on the financial statements and on its comp1ianc with
requirements applicable to major programs and to report on the internal ontro1
structure in accordance with OMB Circular A-128. The report addres es my
consideration of internal control policies and procedures relevant to com liance
with requirements applicable to federal financial assistance programs. I have
addressed policies and procedures relevant to my audit of the financial
statements in a separate report dated September 26, 1995.
The management of the Housing Authority of the City of Salina is responsi le for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to ass ss the
expected benefits and related costs of internal control structure polici sand
procedures. The objecti ves of an i nterna 1 contro 1 structure are to p ovi de
management with reasonable, but not absolute, assurance that asse s are
safeguarded against loss from unauthorized use of disposition, that transa tions
are executed in accordance with management1s authorization and recorded prpperly
3()
,to permit the preparation of financial statements in accordance with the basis
of accounti ng practi ces prescri bed or permi tted by the U. S. Department of H us i ng
and Urban Development, and that federal financial assistance programs are m naged
in camp 1 i ance wi th app 1 i cab 1 e 1 aws and regu 1 ati ons. Because of in erent
limitations in any internal control structure, errors, irregulariti~s, or
instances of noncompliance may nevertheless occur and not be detected. . Also,
projection of any evaluation of the structure to future periods is subject 0 the
risk that procedures may become inadequate because of changes in conditi ns or
that the effectiveness of the design and operation of policies and procedures may
deteriorate. '
For the purpose of this report, I have classified the significant in ernal
contro 1 structure po 1 i ci es and procedures used i n admi ni steri ng federa 1 fi n nci a 1
assistance programs in the following categories:
~ , ,', .
Treasury;
Revenue;
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Types of services allowed or unallowed;
Eligibility;
Special reporting requirements;
Political activity;
Davis-Bacon Act;
Ci vi1 ri ghts;
Cash management;
Relocation assistance and real property acquisition;
Federal financial reports;
Allowable costs/cost principles;
Drug-free Workplace Act; 'I
Adm, inistrative Requirements;
Monitoring Subrecipients;
Claims for Advances and Reimbursements; I
For all of the internal control structure categories listed above, I Detailed an
understanding of the design of relevant policies and procedures and determined
whether they have been placed in operation and I assessed control risk. I
During the year ended June 30, 1995~ the Housing Authority of the City of ali~a
expended 91 percent of its total federal financial assistance under major f deral
financial assistance programs listed in the accompanying Schedule of F deral
Financial Assistance.
I performed tests of controls, as required by OMB circular A-128, to evalua e the
effectiveness of the design and operation of internal control structure po icies
and procedures that I considered relevant to preventing or detecting ma erial
noncompliance with specific requirements, general requirements, and requir ments
governing claims for advances and reimbursements and amounts claimed or us d for
matching that are applicable to each of the Housing Authority of the City of
Salina's major and non-major federal financial assistance programs, whi hare
identified in the accompanying Schedule of Federal financial Assistance. My
procedures were less in scope than would be necessary to render an opin on of
these internal control structure policies and procedures. Accordingly, I a not
express such an opinion.
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My cons i derat i on of the i nterna 1 contro 1 po 1 i ci es and procedures ~sed in
administering Federal Financial Assistance~ would not necessarily discl~se all
matters in the internal control structure that might constitute m~terial
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a reportable condition in wh'ch the
design or operation of one or more of the internal control structure e ements
does not reduce to a relatively low level the risk that noncompliance wi h laws
and regulations that would be material to a federal financial assistance rogram
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 involv ng the
internal control structure and its operations that I consider to be m terial
weaknesses as defined above. '
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Th is report is intended for the i nformat i on of management, any app i cab 1 e
regulatory bodies and the cognizant agency. This res~riction is not inte ded to
limit the distribution of this report, which is a matter of public reco ds.
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Certified Public Accountant
September 26, 1995
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, CYNTH IA L. WARREN
Certified Public Accountant
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P.O. Box 189
Eufaula, OK 74432
INDEPENOÐH-AUDITOR'S REPORT ON COMPLIANCE WITH
THt ~QUIREMENTS APPLICABLE TO
FÈDÈRAl FINANCIAL ASSISTANCE PROGRAMS
(918) 689-9590
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Board of Commissioners U.S. Department of Housing and I
Housing Authority of the Urban Development
City of Salina Kansas City Regional Office
Post Office Box 1202 Gateway Tower II, 400 State Aven e
Salina, Kansas 67402-1202 Kansas City, Kansas 66101-2406
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Salina, as of and for the year ended June 30, 1995, and have issued my report
thereon dated September 26, 1995. As described in Note 2 to the fi ancial
statements on a prescribed basis of accounting that demonstrates compliance with
the accounting principles and standards prescribed by the U.S. Depart ent of
Housing and Urban Development, which is a comprehensive basis of accounting other
than generally accepted accounting principles.
I have applied procedures to test the Housing Authority of the City of S lina's
compliance with the following requirements applicable to its federal fi ancial
assistance programs, which are identified in the Schedule of Federal Fi ancial
Assistance, for the year ended June 30, 1995.
Political activity;
Davis-Bacon Act;
Ci vil ri ghts;
Cash management;
Relocation assistance and real property acquisition;
Federal financial reports;
Allowable costs/cost principles;
Dr~g-free Workplace Act;
Administrative Requirements;
My procedures were limited to the applicable procedures described in the Office
of Management and Budget's Compliance Supplement for- Single Audits of St te and
lccal Governments. My procedures wer2 substantially less in scope than an audit,
the objective of which is the expression of an opinion on the Housing Au hority
of the City of Salina's compliance with the requirements listed in the pr ceding
paragraph. Accordingly, I do not express such an opinion. '
With respect to the items tested, the results of those procedures discl sed no
material instances of noncompliance with the requirements listed in the second
paragraph of this report. With respect to items not tested, nothing cam to'my
attention that caused me to believe that the Housing Authority of the ityof
Salina had not complied, in all material respects, with those requireme ts.
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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. '
(l¡UdUa CJ ' ~
Certified Public Accountant
September 26, 1995
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CYNTHIA L. WARREN
Certified Public Accountant
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P.O. Box 189
Eufaula, OK 74432
INDEPENDEHI-AUDITORIS REPORT ON COMPLIANCE
WIT~~?ÊCIFIC REQUIREMENTS APPLICABLE TO
MAJO~FEDERÄCíFINANCIAl ASSISTANCE PROGRAMS
(918) 689-9590
Board of Com~issioners
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 Aven~e
Kansas City, Kansas 66101-2406:
I have audited the financial statements of Housing Authority of the ~ity of
Salina, as of and for the year ended June 30, 1995, and have issued my I report
thereon dated September 26, 1995. As descri bed in Note 2 to the fi l\1anci a 1
statements on a prescribed basis of accounting that demonstrates complianFe with
the accounting principles and standards prescribed by the U.S. Depart~ent of
Hous i ng and Urban Deve 1 opment, wh i ch is a comprehens i ve bas i s of account i ng other
than generally accepted accounting principles.
I have also audited the Housing Authority of the City of Salina1s compliance with
the requirements governing types of services allowed or unallowed; e1igi~'lity;
special reporting requirements; special tests & provisions; and clai s for
advances and reimbursements that are applicable to each of its major ederal
financial assistance programs, which are identified in the accompanying S~hedu1e
of Federal Financial Assistance, for the year ended June 30, 19951 The
management of the Housing Authority of the City of Salina is responsible for the
Housing Authority of the City of Salina's compliance with those requir~ments.
My responsibility is to express an opinion on compliance with those requi~ements
based on my audit. ¡
I conducted my audit in accordance with generally accepted auditing starydards,
Government Auditing Standards, issued by the Comptroller General of the ¡United
States, and Office of Management and Budget Circular A-128, IIAudits of St~te and
Local Governments.1I Tho~e standards and OMB Circular A-128 require that I plan
and perform the audi t to obtain reasonab 1 e assurance about whpther m~teri a 1
noncompliance with the requirements referred to above occurred. Anl audit
includes examining, on a test basis, evidence about the Housing Authority of the
City of Salina1s compliance with those requirements~ I believe that m~ audit
provides a reasonable basis for my opinion. ' .
The results of my audit procedures disclosed~immateria1 ~nstances f noncom liance
with the requirements referred to in t e secon para~rap, whic are e crlbed
in the accom an i ng Schedu 1 e of Fi ndi ngs. I cons 1 dered these i nstan es a
noncompliance in orml my OplnlOn on compliance, which is expressed lin the
following paragraphs. . . .
In my opinion, the Housing Authority of the City of Salina complied, ¡in all
material respects, with the specific requirements referred to in the 'second
paragraph that are applicable to each of its major federal programs for tHe year
ended June 30, 1995.
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Th is report i s i ntended for the i nformat i on of, management, any app li cab 1 e
regulatory body, and the cognizant agency. However, this report is a matter of
public record and its distribution is not limited. '
~¿j,~
Certified Public Accountant
September 26, 1995
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CYNTHIA'L. WARREN
Certified Public Accountant
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P.O. Box 189
Eufaula, OK 74432
(918) 689-9590
INDEPENDENT AUDITOR1S REPORT ON cOMPl~A '
THE SPECIFIC REQUIREMENTS APPLICABLE T NOH-MÅ~
FEDERAL FINANCIAL ASSISTANCE PRO .
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 Aven~e
Kansas City, Kansas 66101-2406
I have audited the financial statements of Housing Authority of the City of
Salina, as of and for the year ended June 30, 1995, and have issued my report
thereon dated September 26, 1995. As described in Note 2 to the financial
statements on a prescribed basis of accounting that demonstrates comp1ianlce with
the accounting principles and standards prescribed by the U.S. Depart$ent of
Housing and Urban Development, which is a comprehensive basis of accountinlg other
than generally accepted accounting principles.
In connection with my audit of the June 30, 1995 financial statements of the
Housing Authority of the City of Salina, and with my consideration of the ~ousing
Authority of the City of Salina1s internal control systems used to admânister
federal financial assistance programs, as required by Office of, Managem~nt and
Budget Circular A-128, IIAudits of State and Local Governments,1I I s~lected
certain transactions applicable to certain non-major federal financial assijstance
programs for the year ended June 30, 1995.
As required by OMB Circular A-128, I have performed auditing procedures to test
compliance with the requirements governing types of services a1lo~ed or
unallowed; eligibility; special reporting requirements; prohibition against the
use of lead-base paint in construction contracts; and procurement actionsl comply
with Section 306 of the Annual Contributions Contract that are applic.b1e 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 ~ousing
Authority of the City of Salina1s compliance with these requirements.
Accordingly; I do@b exPress such an opinion. i
With respect to the items tested, the results of those procedures disclbsed no
materi a 1 instances of noncomp 1 i ance wi th the requi rements 1 i sted in the pr~cedi ng
paragraph. With respect to items not tested, nothing came to my attentiþn that
caused me to believe that the Housing Authority of the City of Salina had not
comp 1 i ed, in a 11 materi a 1 respects, wi th those requi rements. Howev~r, the
resu 1 ts of our procedures d' sc 1 osed'l i . /I. noncom l' . wi th
'those requirements, which re described in the accompanying Schedule of Fi dings,
Recommendation, and Replies.
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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.
~'o d. ~
Certified Public Accountant
September 26, 1995
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HOUSING AUTHORITY OF THE CITY OF SALINA
SALINA KANSAS
STATUS OF~AUDIT FINDINGS
~ 1995
The prior report on the audit of the financial statements as of and for the
twelve months ended June 30, 1994, contained two findings. The corrective
actions taken by the Housing Authority is described below:
1.
Tenant Files
The Housing Authority has corrected the file in question and no
findings are indicated for the current year.
FDIC Insurance
2.
See Audit Finding #1 for the current year.
FINDINGS, RECOMMENDATION~ AND REPLIES
JUNE 30~ 1995
The following finds and recommendations were discussed with the Exequtive
Director during the audit.
1.
FDIC Insurance
The Housing Authority was over its FDIC insurance limit for
financial institutions.
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Recommendation
The Housing Authority should monitor its deposit accounts to insure
that it is fully insured at all times.
ßm.ly
The Housing Authority contacted the financial institutions in order
to become adequately collateralized for insurance proposes.
Subsequent to June 30~ 1995~ the Housing Authority had obtained the
proper security collateral.
ACTIVITIES OF THE PHA
JUNE 30~ 1995
The Housing Authority has 106 low income units under management, along with
33 Section 8 Vouchers and 239 Section 8 Certificates.
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