Audit - 1996/1997
~
,
Housing Authority of the City of Salina
Salina, Kansas
Report on Audit of Financial Statements
and Supplemental Data for the
twelve months ended June 30, 1997
DAVID O. TATE
Certified Public Accountant
Mangum, Oklahoma 73554
4
~
Housing Authority of the City of Salina
Salina, Kansas
June 30, 1997
Table of Contents
Independent Certified Public Accountant's Report
Financial statements:
OWNED HOUSING:
Exhibit A-Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
Exhibit B-Statement of Operating Income, Operating Expenses,
Other Credits and Other Charges-Regulatory Basis
Exhibit C-Analysis of Surplus-Regulatory Basis
HAP CERTIFICATES:
Exhibit D-Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
Exhibit E-Statement of Operating Income and
Operating Expenses-Regulatory Basis
Exhibit F-Analysis of Surplus-Regulatory Basis
HAP VOUCHERS:
Exhibit G-Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
Exhibit H-Statement of Operating Income, Operating Expenses,
Other Credits and Other Charges-Regulatory Basis
Exhibit I-Analysis of Surplus-Regulatory Basis
HOME PROGRAM:
Exhibit J-Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
Exhibit K-Statement of Operating Income and
Operating Expenses-Regulatory Basis
Exhibit L-Analysis of Surplus-Regulatory Basis
Notes to the Financial Statements
Supplementary data:
OWNED HOUSING:
Schedule I-Computation of Residual Receipts and Accruing
Contribution-Regulatory Basis
Schedule 2-Schedule of Adjusting Journal Entries
HAP CERTIFICATES:
Schedule 3-Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
HAP VOUCHERS:
Schedule 4-Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
ALL PROGRAMS:
Schedule 5-Schedule of Expenditures of Federal
Awards-Regulatory Basis
Report on Compliance with Requirements Applicable to Each Major
Program and Internal Control Over Compliance in Accordance with
U. S. Office of Management and Budget Circular A-133 29
Summary Schedule of Prior Audit Findings 32
Findings 33
Annual
22
23
3
5
6
7
9
10
11
13
14
15
17
18
19
20
24
26
28
..
'"
DAVID O. TATE
Certified Public Accountant
112 North Oklahoma, Suite A
Mangum, Oklahoma 73554
Telephone: (580) 782-5541
Board of Commissioners
Housing Authority of the City of Salina
Independent Certified Public Accountant's Report
I have audited the accompanying financial statements of the Housing
Authority of the City of Salina as of June 30, 1997, 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 auditing
standards and "Government Auditing Standards" issued by the
Comptroller General of the United States. 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 also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
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.
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, 1997, and
the results of its operations and changes in surplus for the year
then ended on the basis of accounting practices referred to above.
3
.'
J..
Housing Authority of the City of Salina internal control over
financial reporting and my tests of its compliance with certain
laws, regulations, contracts and grants.
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
expenditures is presented for purposes of additional analysis as
required by U. S. Office of Management and Budget Circular A-133,
"Audits of States, Local Governments, and Non-Profit
Organizations" , and is not a required part of the financial
statements. Such information has been subjected to the auditing
procedures applied in the audit of the financial statements and,
in my opinion, is fairly stated in all material respects, in
relation to the financial statements taken as a whole.
J~-i od,~
Certified Public Accountant
October 29, 1997
4
.~
"
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038001005
Statement of Assets, Liabilities,
and Surplus-Regulatory Basis
June 30, 1997
Exhibit A
Assets
Cash
Accounts receivable:
Tenants'
Interprogram
Debt amortization funds
Deferred charges
Land, structures, and equipment
189,780.08
24,474.07
16,388.67
67,888.11
5,212.24
6,568,893.42
----------------
Total assets
6,872,636.59
----------------
----------------
Liabilities and Surplus
-----------------------
Tenants' security deposits
Accounts payable:
Interprogram
Other
Accrued paYments in lieu of taxes
Prepaid rents
Deferred credits
Fixed liabilities
18,673.00
16,413.57
22,910.95
27,742.07
2,541.00
6,020.00
681,396.08
Total liabilities
----------------
775,696.67
Surplus (Exhibit C)
6,096,939.92
----------------
Total liabilities and surplus
6,872,636.59
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
5
."
,
.'
Exhibit B
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038001005
Statement of Operating Income, Operating Expenses,
Other Credits, and Other Charges-Regulatory Basis
For the twelve months ended
June 30, 1997
Operating income:
Dwelling rental
Interest on general fund investments
Other income
157,914.00
2,968.50
22,992.44
Total operating income
183,874.94
Operating expenses:
Administration
Tenant services
Utilities
Ordinary maintenance and operation
General expense
Nonroutine maintenance
46,241.52
513.56
8,900.36
94,012.12
47,360.99
1,993.41
Total operating expenses
199,021.96
Net operating income (loss)
(15,147.02)
Other credits:
Prior years' adjustments affecting
residual receipts
Operating transfers in
49,429.20
9,116.35
Total other credits
58,545.55
Total operating income and other credits
43,398.53
Other charges:
Interest on notes and bonds payable
46,510.16
Total other charges
46,510.16
Net income (loss)
(3,111.63)
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
6
."
,'\
Exhibit C
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038001005
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1997
Unreserved surplus:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
(2,253,285.53)
(33,809.06)
Balance per books at the beginning
of the year
Net income (loss) for the year
(Provision for) reduction of
operating reserve
----------------
(2,287,094.59)
(3,111.63)
(108,473.24)
Total unreserved surplus
----------------
(2,398,679.46)
----------------
Operating reserve:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
102,134.16
Balance per books at the beginning
of the year
Provision for (reduction of) reserve
----------------
102,134.16
108,473.24
Total operating reserve
----------------
210,607.40
----------------
Cumulative HUD contributions:
Balance per prior audit
Prior adjustments recorded
in a subsequent period
3,152,320.77
Balance per books at the beginning
of the period
Operating subsidy
Annual contributions
Other adjustments/corrections
----------------
3,152,320.77
67,380.00
67,888.11
967,444.99
Total cumulative HUD contributions
----------------
4,255,033.87
The accompanying notes to the financial statements are an integral
part hereof.
----------------
7
.,..... - -...............-.---...
,
, '
Exhibit C
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038001005
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1997
Cumulative grants:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
2,746,529.06
Balance per books at the beginning
of the period
Grants received
----------------
2,746,529.06
1,406,508.58
Total grants
----------------
4,153,037.64
Cumulative donations:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
----------------
2,917.79
Balance per books at the beginning
of the period
Donations received
----------------
2,917.79
2,821.01
Total donations
----------------
5,738.80
Cumulative cost of dwellings
conveyed to homebuyers:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
----------------
(96,271.98)
Balance per books at the beginning
of the period
Dwellings conveyed during the year
------------------
(96,271.98)
(32,526.35)
Cumulative cost of dwellings conveyed
to homebuyers
----------------
(128,798.33)
----------------
Total surplus
6,096,939.92.
The accompanying notes to the financial statements are an integral
part hereof.
----------------
----------------
8
..
Exhibit D
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS038E002008
Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
June 30, 1997
Assets
Cash
Accounts receivable:
Interprogram
Other
Investments
Land, structures, and equipment
121,944.96
22,665.49
434.59
22,594.24
15,418.27
Total assets
183,057.55
----------------
----------------
Liabilities and Surplus
Accounts payable:
Interprogram
HUD
Other
Deferred credits-rounding
11,934.86
54,095.00
503.08
1. 34
Total liabilities
66,534.28
Surplus (Exhibit F)
116,523.27
Total liabilities and surplus
183,057.55
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
9
"
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS038E002008
Statement of Operating Income and
Operating Expenses-Regulatory Basis
for the twelve months ended
June 30, 1997
Exhibit E
Operating income:
Interest on general fund investments
4,185.16
Total operating income
----------------
4,185.16
Operating expenses:
Administration
General expense
Housing assistance payments
----------------
66,911. 35
16,302.55
493,627.99
Total operating expenses
----------------
576,841.89
----------------
Net income (loss)
(572,656.73)
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
10
'-
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS038E002008
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1997
Exhibit F
Page 1 of 2
Unreserved surplus:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
(875,844.38)
43,541.26
Balance per books at the beginning
of the year
Net income (loss) for the year
Interest earned on operating reserve
(Provision for) reduction of
operating reserve
(Provision for) reduction of
project account-unfunded
Other adjustments or corrections
(8,732,303.12)
(572,656.73)
2,358.32
397.46
(320,121.25)
0.15
Total unreserved surplus
(9,622,325.17)
Operating reserve:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
103,944.24
-----------------
Balance per books at the beginning
of the year
103,944.24
Provision for (reduction of) reserve
Other adjustments or corrections
(397.46)
(2,441.78)
Total operating reserve
101,105.00
----------------
The accompanying notes to the financial statements are an integral
part hereof.
11
"
Exhibit F
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS038E002008
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1997
Project account-unfunded:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
1,272,383.26
(43,541.26)
Balance per books at the beginning
of the year
Provision for (reduction of)
project account
1,228,842.00
320,121.00
Total project account-unfunded
1,548,963.00
Cumulative HUD contributions:
Balance per prior audit
Prior adjustments recorded
in a subsequent period
7,518,709.34
Balance per books at the beginning
of the period
Annual contributions
Other adjustments/corrections
7,518,709.34
570,071.00
0.10
Total cumulative HUD contributions
8,088,780.44
Total surplus
116,523.27
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
12
'-
Exhibit G
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS038V001004
Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
June 30, 1997
Assets
Cash
Land, structures, and equipment
21,453.12
1,669.83
Total assets
23,122.95
----------------
----------------
Liabilities and Surplus
Accounts payable:
Interprogram
HUD
Deferred credits
4,591.38
10,496.00
1. 74
Total liabilities
15,089.12
Surplus (Exhibit I)
8,033.83
Total liabilities and surplus
23,122.95
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
13
..!:=."""'Ii4f~"l' c _ "_ ~
Exhibit H
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS038V001004
Statement of Operating Income and
Operating Expenses-Regulatory Basis
for the twelve months ended
June 30, 1997
Operating income:
Interest on general fund investments
916.12
Total operating income
916.12
Operating expenses:
Administration
General expense
Housing assistance payments
12,433.38
753.23
70,252.78
Total operating expenses
83,439.39
Net income (loss)
(82,523.27)
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
14
--- - ~-~-
'.
Exhibit I
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-701S (HAP vouchers)
Project number: KS038V001004
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1997
Unreserved surplus:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
(840,564.62)
(5.72)
Balance per books at the beginning
of the year
Net income (loss) for the year
Interest earned on operating reserve
(Provision for) reduction of
operating reserve
(Provision for) reduction of
project account-unfunded
Other adjustments or corrections
----------------
(840,570.34)
(82,523.27)
248.45
618.11
(72,688.00)
(0.34)
Total unreserved surplus
----------------
(994,915.39)
----------------
Operating reserve:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
7,159.47
Balance per books at the beginning
of the year
----------------
7,159.47
Provision for (reduction of) reserve
Other adjustments or corrections
(618.11)
(177.36)
Total operating reserve
----------------
6,364.00
----------------
The accompanying notes to the financial statements are an integral
part hereof.
15
"
Exhibit I
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS038V001004
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1997
Project account-unfunded:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
279,147.28
5.72
Balance per books at the beginning
of the year
Provision for (reduction of)
project account
279,153.00
72,688.00
Total project account-unfunded
351,841.00
Cumulative HUD contributions:
Balance per prior audit
Prior adjustments recorded
in a subsequent period
562,917.22
Balance per books at the beginning
of the period
Annual contributions
562,917.22
81,827.00
Total cumulative HUD contributions
644,744.22
Total surplus
8,033.83
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
16
.
,
Housing Authority of the City of Salina
Salina, Kansas
HOME Program
Statement of Assets, Liabilities,
and Surplus-Regulatory Basis
June 30, 1997
Exhibit J
Assets
Cash
Accounts receivable:
Interprogram
Mortgage notes receivable
Investments
149,010.52
12,549.22
59,061. 05
24,000.00
Total assets
244,620.79
----------------
----------------
Liabilities and Surplus
-----------------------
Accounts payable:
Interprogram
18,663.57
----------------
Total liabilities
18,663.57
Surplus (Exhibit L)
225,957.22
----------------
Total liabilities and surplus
244,620.79
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
17
"
Exhibit K
Housing Authority of the City of Salina
Salina, Kansas
HOME Program
Statement of Operating Income and
Operating Expenses-Regulatory Basis
For the twelve months ended
June 30, 1997
Operating income:
Interest on investments
2,799.21
Total operating income
2,799.21
Operating expenses:
Administration
General expense
1,602.46
584.87
Total operating expenses
2,187.33
Net income (loss)
611. 88
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
18
Exhibit L
Housing Authority of the City of Salina
Salina, Kansas
HOME Program
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1997
Unreserved surplus:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
193,211.32
Balance per books at the beginning
of the year
Net income (loss) for the year
193,211.32
611.88
Contributions
Other adjustments or corrections
32,526.35
(392.33)
Total surplus
225,957.22
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
19
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Notes to the Financial Statements
June 30, 1997
Note 1-The Reportinq Entitv.
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 employs executives; authorizes contracts
of subsidy with the U. S. Department of Housing and Urban
Development (Annual Contributions Contract) pursuant to that
agency's regulations and statutory authorizations; 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 was 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 no additional entities which should be included in
the financial statements.
While the governing body is appointed by the ultimate
beneficiary of the agency, it does not approve the budget and
is not able to significantly influence operations. Therefore,
the Housing Authority of the City of Salina is not a component
unit of any other entity.
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 Housing and Urban Development, and differ from
generally accepted accounting principles, in that:
A. Funds and activities of the agency are not classified by
fund type or account group.
20
,
,
Housing Authority of the City of Salina
Salina, Kansas
Notes to the Financial Statements
June 30, 1997
Page 2 of 2
B.
Government
statement,
accounts.
grants
but are
are not
credited
reflected
directly
in
to
the
the
income
surplus
C. In the event any of the activities of the agency were
classified as an Enterprise Fund, no depreciation is
provided as a charge against earnings.
D. Most of the disclosures required by generally accepted
accounting principles are omitted.
E. Comparative data is not presented.
F. Nearly all expenses are recognized when paid rather than
when incurred, and all revenue, with the exception of
income from tenants/participants, are recognized when
received rather 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.
I. Inventories of materials and supplies are not maintained.
J. Prior year's adj ustments are reflected in the income
statement rather than in the equity statement.
K. The balance of equity accounts for the beginning of the
period is reconciled to the prior audited financial
statement balances.
L. No budgeted to actual comparisons are presented.
M. No combined or combining financial
presented.
statements are
N. The costs of compensated absences are reported in the
period paid rather than in the period earned.
I
21
\,
Schedule 1
Housing Authority of the City of Scllina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038001005
Computation of Residual Receipts and
Accruing Annual contribution-Regulatory Basis
June 30, 1997
Computation of Residual Receipts:
Operating receipts:
Operating income (Exhibit B)
BUD operating subsidy
Prior years' adjustments affecting
residual receipts
Operating transfers in
183,874.94
67,380.00
49,429.20
9,116.35
Total operating receipts
309,800.49
Operating expenditures:
Operating expenses (Exhibit B)
Capital expenditures:
Property betterments and additions
Replacement of nonexpendable
equipment
199,021.96
1,823.99
281.30
Total operating expenditures
201,127.25
Residual receipts (deficit) per audit
108,673.24
Audit adjustments
(200.00)
Residual receipts (deficit) per LHA
before provision for reserve
Provision for (reduction of) operating
reserve
108,473.24
108,473.24
Residual receipts (deficit) per LHA
(0.00 )
----------------
----------------
Computation of Accruing Annual Contribution:
Fixed annual contribution
67,888.11
I
Less amounts available for reduction of
annual contribution:
Residual receipts
0.00
I
Part II adjustments
0.00
Total reductions
0.00
I
I
Accruing annual contribution
67,888.11
----------------
----------------
22
\.
Schedule 2
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038001005
Schedule of Adjusting Journal Entries
June 30, 1997
Account
number
for audit
purposes
Dr.
Account
number
for posting
to LHA's
books
Cr.
(1 )
Insurance deposits
Insurance
To record investment
1212 200.00
4510 200.00
in a mutual insurance company.
1212
6010
(2 )
Permanent notes-HUD
Cumulative HUD
contributions
To cancel HUD held
2311
967,444.99
2311
2840 967,444.99
debt per COBRA of 1986.
2840
23
\.
Schedule 3
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS038E002008
Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
For the twelve months ended
June 30, 1997
Maximum contributions available:
Maximum annual contributions authorized
Pro rata maximum annual contribution
applicable to a period of less than
twelve months
810,460.00
79,732.00
Maximum contribution for the period
Project account balance at the beginning
of the year, as adjusted
890,192.00
1,228,842.00
Total annual contributions available
2,119,034.00
Annual contribution required:
Administrative fee
Audit fee
Housing assistance paYments
79,308.00
1,320.00
493,628.00
Total funds required
574,256.00
Project receipts other than annual
contributions
4,185.00
Total project receipts other than
annual contributions
4,185.00
Total annual contributions required
570,071.00
Project account change:
provision for project account (Exhibit F)
320,121.00
----------------
----------------
Annual contribution earned
570,071.00
----------------
----------------
24
"
Schedule 3
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS038E002008
Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
For the twelve months ended
June 30, 1997
Operating reserve changes:
Operating receipts:
Operating income (Exhibit E)
Interest on operating reserve
Annual contribution earned
4,185.16
2,358.32
570,071.00
Total operating receipts
576,614.48
Operating expenditures:
Operating expenses (Exhibit E)
Capital expenditures
576,841.99
169.95
Total operating expenditures
577,011.94
Net operating receipts available per audit
Audit adjustments
(397.46)
Provision for operating reserve
(397.46)
----------------
----------------
25
'.
'.
--
Schedule 4
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS038V001004
Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
For the twelve months ended
June 30, 1997
Maximum contributions available:
Maximum annual contributions authorized
Pro rata maximum annual contribution
applicable to a period of less than
twelve months
Maximum contribution for the period
Project account balance at the beginning
of the year, as adjusted
Total annual contributions available
Annual contribution required:
Administrative fee
Audit fee
Housing assistance paYments
Total funds required
Project receipts other than annual
contributions
Total project receipts other than
annual contributions
Total annual contributions required
Project account change:
Provision for project account (Exhibit I)
Annual contribution earned
26
154,515.00
154,515.00
279,153.00
433,668.00
12,368.00
122.00
70,252.78
82,742.78
916.12
916.12
81,826.66
72,688.34
----------------
----------------
. 81,826.66
----------------
----------------
....
Schedule 4
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS038V001004
Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
For the twelve months ended
June 30, 1997
Operating reserve changes:
Operating receipts:
Operating income (Exhibit H)
Interest on operating reserve
Annual contribution earned
916.12
248.45
81,826.66
----------------
Total operating receipts
82,991.23
----------------
Operating expenditures:
Operating expenses (Exhibit H)
Capital expenditures
83,439.39
169.95
----------------
Total operating expenditures
83,609.34
----------------
Net operating receipts available per audit
Audit adjustments
(618.11)
----------------
Provision for operating reserve
(618.11)
----------------
----------------
27
",
"
Schedule 5
Housing Authority of the City of Salina
Salina, Kansas
Schedule of Expenditures of Federal
Awards-Regulatory Basis
for the twelve months ending June 30, 1997
Federal grantor:
Program title:
U. S. Department of Housing and
Urban Development
Public and Indian Housing
Housing Assistance Payments
Comprehensive Improvement
Assistance Program
Total expenditures
28
CFDA
numbers
Amount
expended
14.85
14.855-14.857
1,505,664.00
651,898.00
14.852
36,112.39
--------------
2,193,674.39
--------------
--------------
\ ".
..
'..
DAVID O. TATE
Certified Public Accountant
112 North Oklahoma, Suite A
Mangum, Oklahoma 73554
Telephone: (580) 782-5541
Report on Compliance with Requirements Applicable to Each Major
Program and Internal Control Over Compliance in Accordance
with U. S. Office of Management and Budget Circular A-133
Board of Commissioners
Housing Authority of the City of Salina
Compliance
I have audited the compliance of the Housing Authority of the City
of Salina with the types of compliance requirements described in
the "U. S. Office of Management and Budget Circular A-133
Compliance Supplement" that are applicable to each of its maj or
programs for the year ended June 30, 1997. the Housing Authority
of the City of Salina's major federal programs are identified in
the summary of auditor t s results section of the accompanying
schedule of findings and questioned costs. Compliance with
requirements of laws, regulations, contracts and grants applicable
to each of its major federal program is the responsibility of the
Housing Authority of the City of Salina's management. My
responsibility is to express an opinion on the Housing Authority
of the City of Salina's compliance based on my audit.
I conducted my audit of compliance in accordance with generally
accepted auditing standards; the standards applicable to financial
audits contained in "Government Auditing Standards", issued by the
Comptroller General of the United States; and U. S. Office of
Management and Budget Circular A-133, "Audits of States, Local
Governments, and Non-Profit Organizations". Those standards and
U. S. Office of Management and Budget Circular A-133 require that
I plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on
a major federal program occurred. An audit includes examining, on
a test basis, evidence about the Housing Authority of the City of
Salina's compliance with those requirements and performing such
other procedures as I considered necessary in the circumstances.
I believe that my audit provides a reasonable basis for my opinion.
My audit does not provide a legal determination on the Housing
Authority of the City of Salina's compliance with those
requirements.
29
..:...J.i......______ _
\.
...
....
As described in item 063097-01 in the accompanying schedule of
findings and questioned costs, the Housing Authority of the City
of Salina did not comply with statutory, regulatory, and
contractual requirements that are applicable to its Public and
Indian Housing program.. Compliance with such requirements is
necessary, in my opinion, for the Housing Authority of the City of
Salina to comply with requirements applicable to that program.
In my opinion, except for the noncompliance describe in the
preceding paragraph, the Housing Authority of the City of Salina
complied, in all material respects, with the requirements referred
to above that are applicable to each of its major programs for the
year ended June 30, 1997.
Internal Control Over Compliance
The management of the Housing Authority of the City of Salina is
responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations,
contracts and grants applicable to federal programs. In planning
and performing my audit, I considered the Housing Authority of the
City of Salina internal control over compliance with requirements
that could have a direct and material effect on a major program in
order to determine my auditing procedures for the purpose of
expressing my opinion on compliance and to test and report on
internal control over compliance in accordance with U. S. Office
of Management and Budget Circular A-133.
I noted certain matters involving the internal control over
compliance and its operation that I consider to be reportable
conditions. Reportable conditions involve matter coming to my
attention relating to significant deficiencies in the design or
operation of the internal control over compliance, that, in my
judgment, could adversely affect the Housing Authority of the City
of Salina I s ability to administer a major federal program in
accordance with applicable requirements of laws, regulations,
contracts and grants. Reportable conditions are reported in the
accompanying schedule of findings and questioned costs as items
063097-01.
A material weakness is a condition in which the design or operation
of one or more of the internal control components does not reduce
to a relatively low level the risk that noncompliance with
applicable requirements of laws, regulations, contracts and grants
that would be material to a major federal program 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 over compliance would not
necessarily disclose all matters in the internal control that might
30
.. \0
. ~
~
be reportable conditions and, accordingly, would not necessarily
disclose all reportable conditions that are also considered to be
material weaknesses. However, I believe none of the reportable
conditions described above is a material weakness.
This report is intended for the information of management, federal
awarding agencies and pass-through agencies. However, this report
is a matter of public record and its distribution is not limited.
J --.' J /). d-.~
Certified Public Accountant
October 29, 1997
31
.~~
~
Housing Authority of the City of Salina
Salina, Kansa3
Summary Schedule of Prior Audit Findings
June 30, 1997
063096-01-lnsufficient bonding insurance.
increased to $75.000.
The bond has been
063096-02-lncomplete board minutes. The minutes of the meetings
of the governing body have been reconstructed and are now complete.
063096-03-lmproper handling of signature stamp. The person
whose signature is on the stamp has retrieved it and maintains it
in his possession.
063096-04-Failure to
development expenses.
all disbursements.
maintain documentation for ClAP and
Properly approved original invoices support
063096-05-lnsufficient accounting for ClAP and development. The
accounting records for all programs are adequate.
063096-06-Failure to provide annual accounting.
accounting was prepared for the HOME program.
An annual
063096-07-Failure to establish reserve account. A separate account
in the amount of $20,000 has been established.
063096-08-Payroent of housing authority operating expenses from home
ownership funds. These funds have been reimbursed to the HOME
program.
I
I
I
I
I
I
32
33
t-("
..
Housing Authority of the City of Salina
Salina, Kansas
Findings
June 30, 1997
1. Finding 063097-01.
A. Owned housing program.
B. CFDA number 14.850
C. U. S. Department of Housing and Urban Development.
D. Kansas statutes, regulations promulgated by the U. S.
Department of Housing and Urban Development, and
cooperation agreements between the housing authority and
the City of Salina and other taxing authorities require an
annual payment in lieu of taxes be made as soon as possible
after the end of the fiscal period.
E. Payment in lieu of taxes have not been paid for the period
ending June 30, 1996, in the amount, of $12,520.75.
F. No questioned cost is involved.
G. It appears this may be an isolated occurrence as all prior
years have been paid.
H. Failure to make this payment is a violation of Kansas
statutes, program regulations, and cooperation agreements,
and may cause a fiscal hardship on the taxing authorities.
I. As soon as possible after the end of the fiscal year, the
balance due the taxing authorities should be paid. The
amount is reflected on line 60, Page 2, HUD-52599.
J. This amount has been paid and a voucher copy of the check
has been provided to the auditor.