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Audit - 2011/20121 1 1 1 1 1 1 1 1 1 1 ! 1 1 1 1 1 1 HOUSING AUTHORITY OF THE CITY OF SALINA FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION WITH INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED JUNE 30, 2012 tennis J. Edwards, CV, P.Ao 1 1 1 1 1 1 HOUSING AUTHORITY OF THE CITY OF SALINA TABLE OF CONTENTS Financial Section PAGE Independent Auditor's Report 1 - 2 Management Discussion & Analysis 3-9 Statement of Net Assets 10 Statement of Revenue, Expenses and Changes in Net Assets 11 Statement of Cash Flows 12-13 Notes to Financial Statements 14-20 Special Reports Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards 21-22 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A -133 23-24 Schedule of Findings and Questioned Costs 25 Schedule of Prior Year Audit Findings 26 Supplemental Information Financial Data Schedules 27-38 Schedule of Expenditures of Federal Awards 39 I 1 1 7 1 1 1 1 1 1 1 1 1 1 1 1 I 11 Dennis J. Edwards, C,4, P,4- 1 608 New Jersey • (P. 0. B0.1C461 • YfoCton, XS 66436 (620 ) 433 -7199 INDEPENDENT AUDITOR'S REPORT To the Board of Commissioners of the Housing Authority of the City of Salina I have audited the accompanying financial statements of the business -type activities, of the Housing Authority of the City of Salina as of and for the year ended June 30, 2012, which comprise the Housing Authority's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Salina Housing Authority s management. My responsibility is to express opinions on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Kansas Municipal Audit Guide. 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 the 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 opinions. In my opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business -type activities of the Housing Authority of the City of Salina, as of June 30, 2012, and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, I have also issued my report dated January 10, 2013, on my consideration of the Housing Authority of the City of Salina's internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of my audit. Member PCPS /AICPA Alliance for CPA Firms Members of the American Institute of Certified Public Accountants and Kansas Society of Certified Public Accountants I 1 1 1 1 1 1 1 1 i 1 1 1 1 1 i 1 1 Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 9 and the Financial Data Schedule on pages 27 through 38 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. I have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to my inquiries, the basic financial statements, and other knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Housing Authority of the City of Salina's financial statements as a whole. The accompanying schedule of expenditures of federal awards 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 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the financial statements as a whole. edtoa/Lk cPf- P6 Holton, KS January 10, 2013 Housing Authority of the City of Salina, Kansas Management's Discussion & Analysis (MD&A) June 30, 2012 Management's Discussion & Analysis (MD&A) is an element of the reporting model adopted by the ' Governmental Accounting Standards Board (GASB) in their Statement No. 34 Basic Financial Statements — and Management's Discussion &Analysis —for State and Local Governments issued in June 1999. This discussion and analysis of the financial performance for the Housing Authority for the City of Salina, Kansas, provides an overview of the financial activities for the fiscal year ended June 30, 2012. Please read the MD&A in conjunction with the Housing Authority's financial statements. Financial Highlights ' • Assets. Total assets decreased by $133,966 from $8,034,589 as of June 30, 2011 to $7,900,623 as of ' June 30, 2012. Current assets increased by $12,274 when compared to 2011 while net capital assets decreased by $145,074. ' • Liabilities: 1 • Expenses: ' Total liabilities decreased $32,624 from $270,380 as of June 30, 2011, to $237,756 as of June ' 30, 2012. • Revenue. the FSS Coordinator salary and benefits were recorded under tenant services for a total ' Total revenue decreased from $2,437,190 for the year ended June 30, 2011, to $2,076,075 for the year ended June 30, 2012, a decrease of $361,115. Tenant revenue increased $28,401; ' other income decreased $253,902 while program grants decreased $56,879 and fraud recovery decreased $226. Capital grants decreased $80,668 over 2011 making 2012 receipts $87,759. 1 • Expenses: ' Total expenses decreased from 2011 to 2012. Total expenses were $2,252,054 for the year ended June 30, 2011, and decreased $74,637 to $2,177,417 for the year ended June 30, 2012. Administrative expenses decreased by $33,286 but tenant services increased $49,780 because the FSS Coordinator salary and benefits were recorded under tenant services for a total ' increase of $16,494 in administrative expenses. Maintenance decreased $47,033, utilities decreased $1,344 and HAP payments decreased 3% or $27,104. I I I Housing Authority of the City of Salina, Kansas Management Discussion & Analysis For accounting purposes, the Housing Authority is categorized as an enterprise fund. Enterprise funds account for activities similar to those found in the private business sector where the determination of net income is necessary or useful to sound financial administration. Enterprise funds are reported using the full accrual method of accounting in which all assets and all liabilities associated with the operation of these funds are included on the balance sheet. The focus of enterprise funds is on income measurement, which, together with the maintenance of equity, is an important financial indication. Overview of Financial Statements This annual report includes this Management Discussion & Analysis report, the Basic Financial ' Statements and the Notes to the Financial Statements. The Housing Authority's financial statements are presented as fund level financial statements because the Housing Authority only has proprietary funds. The financial statements of the Housing Authority report information of the Housing Authority using accounting methods similar to those used by private sector companies. "These statements offer ' short-term and long -term financial information about the Housing Authority's activities. The Statement of Net Assets includes all the Housing Authority's assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and obligations to ' the Housing Authority's creditors (liabilities). It also provides the basis for evaluating the capital structure of the Housing Authority and assessing the liquidity and financial flexibility of the Housing Authority. ' All of the current year's revenues and expenses are accounted for in the Statement of Revenues, Expenses and Changes in Net Assets. This statement measures the success of the Housing Authority's operations over the past year and can be used to determine whether the Housing ' Authority has successfully recovered all its costs through its user fees and other charges, profitability and credit worthiness. ' The Statement of Cash Flows reports cash receipts, cash payments, and net changes in cash resulting from operating, investing and financing activities and provides answers to such questions as where did cash come from, what was cash used for and what was the change in the cash balance during the 1 reporting period. Notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements. The section Supplemental Information Required by HUD contains the Financial Data Schedule 1 (FDS). I-IUD has established Uniform Financial Reporting Standards that require the Housing Authority to submit financial information electronically to HUD using the FDS format. I I I I [J r 11 Housing Authority of the City of Salina, Kansas Management Discussion & Analysis Financial Analysis The Housing Authority's basic financial statements are the Statement of Net Assets and the Statement of Changes in Net Assets. The Statement of Net Assets provides a summary of the Housing Authority's assets and liabilities as of the close of business on June 30, 2012. The Statement of Changes in Net Assets summarizes the revenues and sources of those revenues generated during the year ended June 30, 2012 and the expenses incurred in operating the Housing Authority for the year ended June 30, 2012. Net assets may serve, over tune, as a useful indicator of a government's financial position. In dne case of the Authority, assets exceeded liabilities by $7,662,867 at the close of the year ended June 30, 2012. This represents a decrease of $101,342 from the previous year. ' The Housing Authority accounts for its housing activities in several programs. The main Housing Authority programs are a low rent program that provides housing for qualified tenants, a capital fund program that the Housing Authority uses for improvements to its low rent property, and a housing choice voucher program that provides rental assistance to tenants living in private housing. The following analysis focuses on the net assets and the change in net assets of the Housing Authority as a whole and not the individual programs. I Net Assets June 30, Current Assets, Net of Inter - program Capital Assets, Net Non - Current Assets Total Assets Current Liabilities, Net of Inter - program Non - Current Liabilities Total Liabilities ' I Net Assets: I I I I Invested in Capital Assets, Net of Debt Restricted Assets Unrestricted Assets Total Net Assets Dollar 2012 2011 6,052,146 6,197,220 (145,074) 2,138 3304 (1,166) 185,776 $ 216,087 $ (30,311) 756 $ 6,052,146 $ 6,197,219 $ (145,073) 114,288 146,058 (31,770) I Housing Authority of the City of Salina, Kansas Management Discussion & Analysis Assets; ' Total current assets were $1,834,065 as of June 30, 2011 and increased by $12,274 to $1,846,339 as of June 30, 2012. The balance of cash increased by $131,161 as of June 30, 2012. This was in part a ' result of a move from investments to cash due to procedures enacted by HUD to reduce the amount of reserves that Housing Authorities carry on their books. ' Net capital assets decreased to $6,052,146 as of June 30, 2012 from $6,197,220 as of June 30, 2011. This decrease of $145,074 in net capital assets is comprised of purchases of $100,395 and depreciation of $245,471. iLiabilities: Total current liabilities decreased from $216,087 as of June 30, 2011, to $185,776 as of June 30, 2012, a decrease of $30,311. The amounts owed to vendors decreased by $3,301 from $14,064 as of June 30, 2011 to $10,763 as of June 30, 2012. ' Net Assets: Net assets decreased by $101,342 as of June 30, 2012 as total expenses of $2,177,417 exceeded total 1 revenue of $2,076,075. For June 30, 2012 there was $114,288 set aside for Restricted Assets for the Section 8 program. This represents funding that can only used for housing assistance payments provided other mandates are followed. Expendable Fund Balance: ' The expendable fund balance of an authority is a measure of liquidity of the entity. If all of the authority's current assets, less materials inventory, are converted to cash, and the authority pays all the current liabilities, the amount of cash left on hand is the expendable fund balance. The 1 expendable fund balance was $1,480,159 at the end of the 2012 fiscal year. The number of months in expendable funds is a measure of how many months the authority could ' operate under current conditions without any additional income. The number of months in expendable funds is calculated by dividing the total expenses for the year, less depreciation and HAP expense, by twelve (12) to arrive at the average monthly expenses. The expendable fund balance is ' then divided by the average monthly expenses to arrive at the number of months expendable fund balance. The ratio as of June 30, 2012 was 19.01 months. I I I Housing Authority of the City of Salina, Kansas ' Management Discussion & Analysis i .1 i [1 Revenue: 1 The authority has two basic sources of revenue. Rent and other tenant charges and funds received from the Department of Housing and Urban Development (HUD) in the form of operating subsidies, tenant assistance, and capital improvement grants. Tenant revenue increased by approximately 9% for the current year from $333,390 for the year ended June 30, 2011 to $361,791 for the year ended June 30, 2012. Tenant revenue includes rent charged as well as any move -out charges or other maintenance charges incurred. The amount collected from tenants for charges other than rent decreased by $9,261. Tenant rents are also ' affected by the tenant's reported income and other tenant attributes. The amount of rent that a tenant pays increases as the tenant's income increases. I 7 Changes in Net Assets for the Year Ended June 30 Increase 2212 2011 cr a e Revenue: Tenant Revenue $ 361,791 $ 333,390 $ 28,401 Federal Gents & Subsidy 1,660,507 1,798,054 (137,547) Investment Income 15,275 19,684 (4,409) Gain /Loss on Sale of Asset 1,698 (4,870) 6,568 Other Income 36,804 290,932 (254,128) Total Revenue $ 2,076,075 $ 2,437,190 $ (361,115) Expenses: Administrative $ 467,922 $ 501,208 $ (276) Tenant Services 53,809 4,029 (89,179) Utilities 14,494 15,838 (3,021) Routine Maintenance 244,867 291,900 (14,324) Protective Services 1,648 288 (194) Insurance Premiums 95,316 103,934 (9,121) Other General Expenses 37,103 34,262 (37,259) Casualty Losses 18,959 27,957 (8,998) Housing Assistance Payments (HAP) 997,828 1,024,932 (13,369) Depreciation 245,471 247,706 14,279 Total Expenses $ 2,177,417 $ 2,252,054 $ 74,637 Increase (Decrease) in Net Assets $ (101,342) $ 185,L36 $ (286,478) Prior Period Adjustment 930 930 Total Change in Net Assets $ (101,342) $ 184,206 $ (285,548) Revenue: 1 The authority has two basic sources of revenue. Rent and other tenant charges and funds received from the Department of Housing and Urban Development (HUD) in the form of operating subsidies, tenant assistance, and capital improvement grants. Tenant revenue increased by approximately 9% for the current year from $333,390 for the year ended June 30, 2011 to $361,791 for the year ended June 30, 2012. Tenant revenue includes rent charged as well as any move -out charges or other maintenance charges incurred. The amount collected from tenants for charges other than rent decreased by $9,261. Tenant rents are also ' affected by the tenant's reported income and other tenant attributes. The amount of rent that a tenant pays increases as the tenant's income increases. I 7 J I 1 i I 11 1 I 11 Housing Authority of the City of Salina, Kansas Management Discussion & Analysis Federal grants and subsidy revenue decreased from $1,798,054 for the year ended June 30, 2011 to $1,660,507 for the year ended June 30, 2012, for a decrease of $137,547. Section 8 HAP assistance decreased $27,104, the HAP assistance is also determined by tenants reported income and other tenant attributes-. HAP assistance will decrease as the tenant's income increases. Capital grant revenue decreased by $80,668. Investment income decreased $4,409 as the amount earned for the year ended June 30, 2011 was $19,684 and $15,275 for the year ended June 30, 2012. The rate of return on investments declined which attributed to the decrease. Expenses: Administrative expenses decreased by $33,286 from $501,208 for the year ended June 30, 2011 to $467,922 for year ended June 30, 2012. Tenant services expenses increased by $49,780. Also utilities expense decreased by 8 % from $15,838 for the year ended June 30, 2011 to $14,494 for the year ended June 30, 2012. Routine maintenance expenses decreased by $47,033, from $291,900 for fiscal year 2011 to $244,867 for fiscal year 2012. Capital Assets: At June 30, 2012 the Housing Authority had $6,052,146 invested in net capital assets. This amount represents a net decrease of $145,074 in net capital assets when compared to net capital assets as of June 30, 2011. Capital expenditures for FY 2012 were to purchase the Buick LeSabre for the office and two large file cabinets. The fixed asset listing was updated removing multiple discarded or replaced items. During the current year, some work in progress projects were completed and certain assets of $122,209 were transferred from construction in progress to other capital assets categories. The Housing Authority still has approximately $384,237 in Capital program funds to spend on future improvements. I 1 Housing Authority of the City of Salina, Kansas Management Discussion & Analysis ' Debt 1 I I I As of June 30, 2012, the Authority does not have any outstanding debt, bonds, mortgages, or notes payable. There are some non - current liabilities as of June 30, 2012, for emplovee compensated absences of approximately $3,338 and escrow amounts of $48,642 held for participating tenants of the FSS escrow program. Economic Factors The Housing Authority is dependant upon HUD for the funding of operations; therefore, the Housing Authority is affected both by federal budget and local economic conditions. The funding of programs could be significantly affected by HUD and the 2012 and 2013 federal budgets. Contacting the Housing Authority's Financial Management Our financial report is designed to provide our citizens, taxpayers and creditors with a general overview of the Housing Authority's finances and to show the Housing Authority's accountability for the money it receives. If you have questions about this report or wish to request additional financial information, contact Tina Lewis, Interim Executive Director, at the Salina Housing Authority, 469 S. 5s' St., Salina, KS 67402, telephone number 785 -827 -0441. Capital Assets at Year End (Net of Accumulated Depreciation) June 30, Increase 2012 2011 Decrease Land $ 1,456,891 $ 1,456,891 $ Buildings 6,557,567 6,461,296 96,271 Furniture, Equipment & Machinery, Dwellings 18,730 18,730 - Furniture, Equipment &Machinery, Admin 217,060 244,532 (27,472) Leasehold Improvements 659,006 633,068 25,938 Construction in Progress 482,494 516,945 34,451 Subtotal 9,391,748 9,331,462 $ 60,286 Accumulated Depreciation (3,339,60 3,134,242) 205,360) Net Capital Assets S 6.052.146 S 6.197.220 S (145.074) ' Debt 1 I I I As of June 30, 2012, the Authority does not have any outstanding debt, bonds, mortgages, or notes payable. There are some non - current liabilities as of June 30, 2012, for emplovee compensated absences of approximately $3,338 and escrow amounts of $48,642 held for participating tenants of the FSS escrow program. Economic Factors The Housing Authority is dependant upon HUD for the funding of operations; therefore, the Housing Authority is affected both by federal budget and local economic conditions. The funding of programs could be significantly affected by HUD and the 2012 and 2013 federal budgets. Contacting the Housing Authority's Financial Management Our financial report is designed to provide our citizens, taxpayers and creditors with a general overview of the Housing Authority's finances and to show the Housing Authority's accountability for the money it receives. If you have questions about this report or wish to request additional financial information, contact Tina Lewis, Interim Executive Director, at the Salina Housing Authority, 469 S. 5s' St., Salina, KS 67402, telephone number 785 -827 -0441. 11 HOUSING AUTHORITY OF THE CITY OF SALINA HUD PROJECT NO. KS038 STATEMENT OF NET ASSETS June 30, 2012 ' ASSETS 2012 Current Assets ' Cash and cash equivalents $ 724,467 HUD accounts receivable 10,718 Tenant accounts receivable, net 2,971 Other receivables 1,559 ' Prepaid expenses and other assets 32,620 Current portion of note receivabe - Investments 893,600 ' Inventories 17,474 Restricted: Cash and cash equivalents 114,288 ' Investments Total current assets 48,642 1,846,339 Fixed assets -net of accumulated depreciation 6,052,146 Noncurrent Assets Notes receivable, net of current portion 2,138 TOTAL ASSETS $ 7,900,623 LIABILITIES, EQUITY, AND OTHER CREDITS Current Liabilities Accounts payable - 90 days $ 10,763 ' Accrued wages/payrolltaxes Accrued compensated absences - current 37,955 13,352 Accounts payable - PHA projects - Accounts payable - other government 30,664 Tenant security deposits 83,935 Deferred revenues 8,530 Other current liabilities 577 Total current liabilities 185,776 ' Noncurrent Liabilities Noncurrent Liabilities - other 48,642 Accrued compensated absences - noncurrent 3,338 ' Total noncurrent liabilities 51,980 Total Liabilities 237,756 ' Net Assets Invested in capital assets net of related debt 6,052,146 Restricted net assets 114,288 ' Unrestricted net assets 1,496,433 Total equity and other credits 7,662,867 TOTAL LIABILITIES,EQUITY, AND OTHER CREDITS $ 7,900,623 The accompanying notes are an integral part of these finanical statements. 10 11 I 1 HOUSING AUTHORITY OF THE CITY OF SALINA HUD PROJECT NO. KS038 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS For the Year Ended June 30, 2012 REVENUES 2012 Tenant revenue $ 361,791 Program grants -rent subsidies 1,572,748 Fraud recovery 13,566 Other income 23,238 Total revenues 1,971,343 OPERATING EXPENSES Current Administrative 467,922 Tenant services 53,809 Utilities 14,494 Maintenance 244,867 Protective services 1,648 Insurance premiums 95,316 Other general 37,103 Housing assistance payments 997,828 Depreciation 245,471 Total operating expenses 2,158,458 Operating income (loss) (187,115) Non-operating revenues (expenses) Interest income 15,275 Gain (loss) on sale of capital asset 1,698 Casualty losses- non - capitalized (18,959) Non-operating income (loss) (1,986) Income (loss) before contributions and transfers (189,101) Capital grants 87,759 Change in net assets (101,342) Net assets at beginning of the year 7,764,209 Prior period adjustment - Net assetss at the beginning of the year restated 7,764,209 Net assets at the end of the year $ 7,662,867 The accompanying notes are an integral part of these financial statements. 11 HOUSING AUTHORITY OF THE CITY OF SALINA HUD PROJECT NO. KS038 STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES For the Year Ended June 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from tenants I I 11 II I CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Tenant security deposits (Increase) decrease in investments (Increase) decrease in restricted cash Gain (loss) on sale of capital assets Casualty losses - non - capitalized Purchase of fixed assets Cash received from capital grants Net cash provided (used) by financing activities CASH FLOWS FROM INVESTING ACTIVITIES Cash received from interest Net cash provided (used) by investing activities INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR $ 367,001 1,591,806 38,130 (480,917) (53,809) (14,494) (267,148) (1,648) (94,712) (35,878) (997,828) 50,503 (219) 62,283 33,218 1,698 (18,959) (100,395) 87,759 65,385 15,275 15,275 131,163 593,306 $ 724,467 The accompanying notes are an integral part of these financial statements. 12 Cash received from grants /subsidies ' Cash received from other sources Cash paid for operating expenditures Administration Tenant services Utilities ' Maintenance Protective services Insurance premiums ' Other general Housing assistance payments Net cash provided (used) by operating activities I I 11 II I CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Tenant security deposits (Increase) decrease in investments (Increase) decrease in restricted cash Gain (loss) on sale of capital assets Casualty losses - non - capitalized Purchase of fixed assets Cash received from capital grants Net cash provided (used) by financing activities CASH FLOWS FROM INVESTING ACTIVITIES Cash received from interest Net cash provided (used) by investing activities INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR $ 367,001 1,591,806 38,130 (480,917) (53,809) (14,494) (267,148) (1,648) (94,712) (35,878) (997,828) 50,503 (219) 62,283 33,218 1,698 (18,959) (100,395) 87,759 65,385 15,275 15,275 131,163 593,306 $ 724,467 The accompanying notes are an integral part of these financial statements. 12 I C 1 u I 1 I 1 HOUSING AUTHORITY OF THE CITY OF SALINA HUD PROJECT NO. KS038 , STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES For the Year Ended June 30, 2011 CASH FLOWS FROM OPERATING ACTIVITIES Excess (deficiency) of revenues over (under) expenditures $ (187,115) Adjustments to reconcile excess (deficiency) of revenues over (under) exenddures to net cash provided by operating activities Depreciation 245,471 Increase or decrease in: Tenants receivable 5,210 Grants receivable 19,058 Other receivable 1,326 Miscellaneous prepaid expenses 604 Inventories (1,646) Accounts payable - 90 days 1,865 Wages and Compensated absences payable (12,498) Other liabilities (1,137) Deferred revenues (20,635) Net cash provided (used) by operating activities $ 50,503 The accompanying notes are an integral part of these financial statements. 13 HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS ' NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2012 ! NOTE A — SUMMARY OF SIGNIFICANT POLICIES Organization ' The Authority was created under the laws of the State of Kansas. The purpose of the Authority is to administer the housing programs authorized by the United States Housing Act of 1937, as ' amended. These programs are subsidized by the Federal Government through the U.S. Department of Housing and Urban Development (HUD). The financial statements of the Authority have been prepared in accordance with accounting principles generally accepted in the United States of America as applied to governmental units. The Governmental Accounting Standards Board ( "GASB ") is the standard- setting body for governmental accounting and financial reporting. As allowed in Section P80 of GASB's ! Codification of Governmental Accounting and Financial Reporting Standards, the Authority has elected not to apply to its proprietary activities Financial Accounting Standards Board Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins of the Committee of Accounting Procedure issued after November 30, 1989. ! Financial Reporting Entitv ' In determining how to define the reporting entity, management has considered all potential component units. The decision to include a component unit in the reporting entity was made by applying the criteria set forth in Section 2100 and 2600 of the Government Accounting Standards Board Codification. These criteria state that the financial reporting entity consist of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are ' such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Based on these criteria, there are no additional agencies or entities which should be included in the financial statements of the Authority. Basis of accounting, measurement focus, and financial statement presentation The accounts of the Authority are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included in the Statement of Net Assets. The Statement of Revenues, Expenses and Changes in Net Assets present increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the ! liability is incurred ! ! ! See Independent Auditor's Report 14 HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS ' NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2012 ' NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) The Authority distinguishes between operating and nonoperating revenues and expenses in its ' Statement of Revenues, Expenses and Changes in Net Assets. For this purpose, the Authority's operating revenues result from providing low- income housing services such as tenant rent, HUD Section 8 funds earned and other tenant charges. Operating expenses ' include the cost attributed to administration, tenant services, utilities, maintenance and operations, housing assistance payments and depreciation on capital assets. All revenues and expenses not meeting these definitions are reported as nonoperating revenues and expenses. ' Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of revenues, Expenses and Changes in Fund Net Assets, and a Statement of Cash Flows. ' Budgetary Process The Authority establishes a budget for the fiscal year and is adopted by the Board of Commissioners. ' Cash and Investments ' The Authority's deposits can only be invested in the following HUD approved investments: direct obligations of the federal government backed by the full faith and credit of the United States, obligations of federal government agencies, securities of government- sponsored agencies, demand and savings deposits, money- market deposit accounts, municipal depository ' fund, super now accounts, certificate of deposit, repurchase agreements, sweep accounts, separate trading of registered interest and principal securities (STRIPS), and mutual funds that consist of securities purchased from the HUD approved list. ' Accounts Receivable All receivables are current and therefore due within one year. Receivables are reported net of ' an allowance for uncollectible account and revenues net of uncollectibles. Allowances are reported when accounts are proven to be uncollectible. ' Prepaid Items Prepaid balances are for payments made by the Authority in the current year to provide services occurring in the subsequent fiscal year. Inventory ' Inventories consist of supplies and are recorded at the lower of cost or market on a first -in, first - out basis. ' Capital Assets and Depreciation Property and equipment are stated at actual or estimated historical cost, net of accumulated depreciation. Contributions of assets are recorded at fair market value at the date donated. tSee Independent Auditor's Report 15 I I I 1 L L_ I I I i I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2012 NOTE A— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) The Authority generally capitalized assets with a cost of $500 or more as purchases and construction outlays occur. Depreciation has been calculated on each class of depreciable property using the straight -line method. Estimated useful lives are as follows: Furniture and fixtures 5 -10 years Equipment 3 -10 years Use of Restricted /Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the Authority's policy is to apply restricted assets first. Due to and Due from Other Funds Interfund receivables and payables arise from interfund transactions and are recorded by all funds affected in the period in which transactions are executed. The balances result from the time lag between the dates that interfund goods and services are provided or expenditures occur, transactions are recorded in the accounting system, and payments between funds. Transfers Permanent reallocation of resources between funds of the reporting entity are classified as interfund transfers. Grant Revenue The Authority, a recipient of grant revenues, recognizes revenues (net of estimated uncollectible amounts, if any), when all applicable eligibility requirements, including time requirements are met in accordance with GASB Statement No. 33. Resources transmitted to the Authority before the eligibility requirements are met are reported as deferred revenue. Investment Income Investment income from pooled cash and investments is allocated monthly based on the percentage of a fund's average pooled cash and investments balance. Compensated Absences Employees receive all unused vacation time when they terminate as long as they have passed their probationary period. Employees will only receive sick leave upon retirement from the Housing Authority. See Independent Auditor's Report 16 r 1 HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS 1 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2012 1 NOTE A— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) Income Taxes The Authority is a govemmental subdivision of the State of Kansas and is exempt from Federal and State income taxes. ' Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues, expenditures, expenses, and other disclosures. Accordingly, actual results could differ from 1 those estimates. Leases The majority of leases and subleases are short-term operating leases. Schedule of Expenditures of Federal Awards 1 The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Housing Authority of the City of Salina, Kansas and is presented in accordance with generally accepted accounting principles. The information in this schedule is presented in accordance with the requirements of Office of Management and Budget Circular A -133, Audits of States, Local Governments and Non -Profit Organizations. 1 NOTE B — CASH AND CASH EQUIVALENTS At June 30, 2012, the reconciled amount of the agency's deposits were $1,780,997 and the bank balance was $1,801,003, which includes certificates of deposit. Cash and cash equivalents are stated at cost which is their fair market value and include all unrestricted 1 investments with the original maturities of three months or less are considered cash equivalents. It is the policy of the agency to be secured by collateral valued at market or par, whichever is lower, less the amount of the insurance provided by the Federal Deposit Insurance Corporation. 1 The agency's deposits were secured by $500,050 FDIC insurance and the balance of $1,300,953 was secured by securities pledged by the institution in which they were on deposit. i 1 1 1 �1 See Independent Auditor's Report 17 i i I I I I I I I I I I I I I HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2012 NOTE C - PROPERTY AND EQUIPMENT Property and equipment is recorded at the cost of acquisition. Depreciation is provided over the estimated useful lives of the assets as a charge against earnings. Most property and equipment is acquired with grants from Federal, state, and tribal governments, so no interest costs are usually associated with these acquisitions. A summary of the property and equipment and the related accumulated depreciation follows: SCHEDULE OF CHANGES IN FIXED ASSET ACCOUNTS Year Ended June 30, 2012 Land Buidlings Furn, equip & mach - dwellings Fum, equip & mach - admin Leashold improvements Construction in progress TOTAL Accumulated depreciation NET BOOK VALUE Beginning Reclass- Balance Ifications Additions Deductions $ 1,456,891 $ $ $ 6,461,296 18,730 244,532 633,068 516,945 9,331,462 (3,134,242) $ 6,197,220 96,271 - 12,637 25,938 (122,209) 87,758 100,395 245,471 $ $(145,074) (40,109) (40,109) (40,109) Ending Balance $ 1,456,891 6,557,567 18,730 217,060 659,006 482,494 9,391,748 (3,339,602) $ 6,052,146 Buildings are depreciated over an estimated useful life of 40 years, land improvements over an estimated useful fife of 35 years, and equipment over an estimated useful life of 5 to 10 years. The straight -line method is used in computing depreciation. For the twelve months ended June 30, 2012 the sum of $245,471 was charged against earnings. NOTE D— ACCOUNTS RECEIVABLE At June 30, 2012, the agency has amounts due from tenants in the amount of $3,422. An allowance for uncollectible accounts in the amount of $451 has been established which management feels is adequate. In addition, the agency has completed all the requirements necessary to receive $10,718 in grants from the U. S. Department of Housing and Urban Development. There are other miscellaneous accounts receivable in the amount of $1,512. NOTE E — DEFERRED CHARGES The agency has purchased insurance policies from various insurance companies, of which $32,620 was unexpired, pro rata, at June 30, 2012. This is more than the amount that could be realized upon cancellation of the policies. The agency has purchased commercial insurance coverage to cover claims arising from the use of private automobiles by employees on agency business, automobile property damage and liability, losses from fire and other natural disasters, employee bond, and director's liability, and workers' compensation. In addition, the agency has maintenance materials on hand with a cost of $17,474. See Independent Auditor's Report 18 HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2012 NOTE F — INTERGOVERNMENTAL REVENUES During the twelve months ended June 30, 2012, the agency. received $1,660,507 from the U. S. Department of Housing and Urban Development as operating subsidies, rental assistance and t capital grant funds. These amounts are reflected in the financial statements as intergovern mental revenues. ' NOTE G — ACCOUNTS PAYABLE Accounts payable represent amounts due vendors in the normal course of business in the amount of $60,193, including amounts withheld from employees, and the employer's share of employee benefits. NOTE H — ACCRUED EXPENSES Amounts due employees for compensated absences and the related employee benefit expenses were $16,690. Of this amount, $13,352 represents amounts due to be paid in the next twelve months, and $3,338 expected to be paid in future periods. The agency also ' maintains escrow accounts for tenants who are participating in the Family Self Sufficiency Program. As of June 30, 2012, the agency had $48,642 held in these escrow accounts. NOTE I — TENANT SECURITY DEPOSITS ' The agency is holding the sum of $83,935 to secure payment of rents and to assure that vacated units are left clean and habitable. After a tenant moves out, if there are unpaid rents or ' the housing unit must be cleaned or repaired, these amounts are deducted from the deposit and the balance is returned to the tenant. NOTE J — DEFERRED REVENUES 1 As of June 30, 2012, the housing authority had received $6,693 of tenant rents for July 2012, the agency also had received $1,837 in the grants that had not been expended at June 30, 2012. tNOTE K— FEDERAL AND STATE GRANTS i In the normal course of operations, the agency receives grant funds from various Federal and State agencies. The grant programs are subject to audit by agents of the granting authority, the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability for reimbursement that may arise as the result of these audits is not believed to be material. NOTE L— ADVERTISING COSTS ' The Agency has elected to expense all advertising costs as incurred. 11 1 See Independent Auditor's Report 19 h i L HOUSING AUTHORITY OF THE CITY OF SALINA, KANSAS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2012 NOTE M - RISK MANAGEMENT The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors and omissions; injuries to employees; and natural disasters for which the Authority purchases commercial insurance. During the year ended June 30, 2012, the Authority did not reduce insurance coverage from ' levels in place during the prior year. No settlements have exceeded coverage levels in place during the past three fiscal years. 1 NOTE N — ACCOUNTS PAYABLE OTHER GOVERNMENT As of June 30, 2012, the organization owed $30,664 to the City of Salina for PILOT (Payment in Lieu of Taxes) expense. NOTE O — DEFINED BENEFIT PENSION PLAN Plan description. The Housing Authority of the City of Salina participates in the Kansas Public Employees Retirement System (KPERS), a cost- sharing multiple - employer defined benefit pension plan as provided by K.S.A. 74 -4901, et seq. KPERS provides retirement benefits, life insurance, disability income benefits, and death benefits. Kansas law establishes and amends benefits provisions. KPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to ' KPERS (400 SE 8th Avenue, Suite 200; Topeka, Kansas 66603 -3925) or by calling 1- 800 -228- 0366. Funding Policy, K.S.A. 74 -4919 establishes the KPERS member - employee contribution rate of ' 4% of covered salary. The employer collects and remits member - employee contributions according to the provisions of section 414 (h) of the Internal Revenue Code. State law provides that the employer contribution rate be determined annually based on the results of annual ' actuarial valuation. KPERS is funded on an actuarial reserve basis. State law sets a limitation on annual increases in the contribution rates for KPERS employers. The employer rate established for the period July 1, 2011 to December 31, 2011 was 7.74 % %, for the period I� I I January` 1, 2012 to March 31, 2012 was 8.34 %, and for the period April 1, 2012 to June 30, 2012 was 7.34°/x. The 1% accidental death and disability insurance was removed by a mandate from the Governor for April 2012 through June 2012. The Housing Authority of the City of Salina's employer contributions to KPERS for the years ending June 30, 2012, 2011 and 2010 were $33,737, $34,357, and $32,243, respectively, equal to the statutory required contributions for each year. NOTE P — SUBSEQUENT EVENTS The Housing Authority evaluated events and transactions occurring subsequent year end through January 10, 2013, and there were no subsequent events requiring recognition in the financial statements. Additionally, there were no non - recognized subsequent events requiring disclosure. See Independent Auditor's Report 20 l_J I 1 1 I i I 1 1 1 1 1 1 I 11 I i SPECIAL REPORTS Dennis 1. Edwards, CV, <1-As _ 608 New Je r sey P. O. B o 461 • olton , X5 66436 (6200) 433 -7199. 1 1 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS To the Board of Commissioners Housing Authority of the City of Salina Salina, Kansas I have audited the financial statements of the business type activities Housing Authority of the City of Salina as of and for the year ended June 30, 2012, which collectively comprise of the Housing 1 Authority of the City of Salina's basic financial statements and have issued my report thereon dated January 10, 2013. 1 conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in 1 Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting 1 Management of the City of Salina is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing my audit, I considered the Housing Authority of the City of Salina's internal control over financial reporting as a basis for designing my 1 auditing procedures for the purpose of expressing my opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Housing Authority of the City of Salina's internal control over financial reporting. Accordingly, 1 do not express an opinion on the effectiveness of the Organization's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, ' or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. My consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. I did not identify any deficiencies in internal control over financial reporting that I consider to be material weaknesses, as defined above. I l 1 21 Member PCPSIAICPA Alliance for CPA Firms Members of the American Institute of Certified Public Accountants and Kansas Society of Certified Public Accountants I I 11 I I I U t_ 1 I 'I 7 1, I Compliance and Other Matters As part of obtaining reasonable assurance about whether the Housing Authority of the City of Salina's financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the audit committee, management, others within the organization and federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. L"A. 4 jr �U �a�f/J Holton, Kansas ��U// January 10, 2013 22 I I I I I L ILJ I I I I I I I I d Dennis ].Edwards, CV, P.Ae 608 wew Jersey • P.O. Bo,1C461 • JCofton, X5 66436 (6200) 433 -7199 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 To the Board of Commissioners of the Housing Authority of the City of Salina Compliance I have audited Housing Authority of the City of Salina's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Housing Authority of the City of Salina's major federal programs for the year ended June 30, 2012. Housing Authority of the City of Salina's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Housing Authority of the City of Salina's management. My responsibility is to express an opinion on Housing Authority of the City of Salina's compliance based on my audit. I conducted my audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A- 133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB 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 Housing Authority of the City of Salina's compliance with those requirements and performing such other procedures as 1 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 of Housing Authority of the City of Salina's compliance with those requirements. In my opinion, Housing Authority of the City of Salina, complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. 23 Member PCPSIAICPA Alliance for CPA Firms Members of the American Institute of Certified Public Accountants and Kansas Society of Certified Public Accountants I IInternal Control over Compliance Management of Housing Authority of the City of Salina is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing my audit, I 1 considered Housing Authority of the City of Salina's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing my opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133, but not for the 1 purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, I do not express an opinion on the effectiveness of Housing Authority of the City of Salina's internal control over compliance. I I 1 J I I I I 11 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. My consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. I did not identify any deficiencies in internal control over compliance that I consider to be material weaknesses,, as defined above. This report is intended solely for the information and use of management, the Board of Commissioners, others within the entity, federal awarding agencies, and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. Holton, KS January 10, 2013 24 HOUSING AUTHORITY OF THE CITY OF SALINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2012 1 SUMMARY OF AUDIT RESULTS 1. The auditor's report expresses an unqualified opinion on the financial statements of the ' Housing Authority of the City of Salina. 2. No material weaknesses were identified during the audit of the financial statements. ' 3. No instances on noncompliance material to the financial statements of the Housing Authority of the City of Salina were disclosed during the audit. ' 4. No significant deficiencies were disclosed during the audit of internal control over major federal award programs. I 5. The auditor's report on compliance for the major federal award programs for the Housing Authority of the City of Salina expresses an unqualified opinion. 6. Audit findings relative to the major federal award programs for the Housing Authority of the City of Salina are reported in this Schedule. The programs tested as major programs included: U.S. Department of Housing and Urban Development Low Rent Public Housing — CFDA# 14 -850a 1 U.S. Department of Housing and Urban Development Housing Choice Vouchers — CFDA# 14-871 U.S. Department of Housing and Urban Development Capital Fund Cluster Public Housing Capital Fund Program — CFDAAA# 14 -872 ' ARRA Public Housing Capital Fund Stimulus (Formula) Recovery Act Funded — CFDA# 14 -885 i I I 7. The threshold for distinguishing Types A and 8 programs was $300,000. 8. The Housing Authority of the City of Salina was determined to be a low -risk auditee. FINDINGS- FINANCIAL STATEMENTS AUDIT None FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAMS AUDIT There were no findings or questioned costs for the year ended June 30, 2012. 25 HOUSING AUTHORITY OF THE CITY OF SALINA ' SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2012 1 There are no prior year audit findings. 1 1 I d LJ 1 1 I I 26 I I I 1 I I I 1 1 1 SUPPLEMENTAL INFORMATION I 1 1 1 [l ' a Z LL N 'J Uy� HZUUjO ' N F � � OJT OaU' ¢xz � LL Z O x I N Nmb'�' �NObi nm P1� ' 1I1 � Nm V n N N pO pN OgQO b1+l a � pin O�Op pb NP b<� `° mm Q N of Q emn� O N b ^ •y b t0 v m ON1 W °1NA00 m m N C eN-� N N O H 0 F 1OO m W 1`N') P � N � m R w c m .8 � � W m Ls] ^. 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" |!!!!; !i!{1,, ©E I = w ��• / / {§tom f 9 !! { /_! /\ #! !f!a /!! |!! !;!!! !!!a!!!= !!! \}§ /}i \ / 21 ! :!!!rl ;, ON I I I I I I 0 I I I I i I I I HOUSING AUTHORITY OF THE CITY OF SAUNA HUD PROJECT NO. KS038 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2012 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the City of Salina, HUD Project No. KS038, and is presented on the accrual basis. The information in this schedule is presented in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. E Federal CFDA Federal Federal Grantor /Pass - Through Grantor /Program or Cluster Title Number Expenditures ($} CFP Cluster - Cluster Department of Housing and Urban Development Direct Programs Public Housing Capital Fund 14.872 195,921 ARRA - Public Housing Capital Fund Stimulus 14.885 14,802 (Formula) Recovery Act Funded Total CFP Cluster - Cluster 210,723 Other Programs Department of Housing and Urban Development Direct Programs Public and Indian Housing 14.850 294,313 Resident Opportunity and Support Services- 14.870 53,097 Service Coordinators Section 8 Housing Choice Vouchers 14.871 1,058,548 Shelter Plus Care 14.238 43,826 Total Other Programs 1,449,784 Total Expenditures of Federal Awards 1,660,507 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the City of Salina, HUD Project No. KS038, and is presented on the accrual basis. The information in this schedule is presented in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. E