Audit - 1986/1987
.
Audit Report for the
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
For the Twelve Months Ended
June 30, 1987
HOUSING AUTHORITY OF
THE CITY OF SAL1NA
Salinal Kansas
.
REPORT ON EXAMINATION OF
FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA
FOR THE TWELVE MONTHS ENDED
June 30, 1987
SAUNDERS & ASSOCIATES
Certified Public Accountants
Ada, Oklahoma
Exhibit
A
B
C
D
E
F
G
H
I
J
K
HOUSING AUTHORITY OF
THE CITY OF SALINA1 KANSAS
INDEX TO FINANCIAL STATEMENTS
Paqe
Report of Certified Public Accountants.
1
Accountant's Report on Internal Control
2
Accountant's Report on Compliance
4
BalaPlce Sheet
5
Statement of Income and Expenses - Low Rent.
6
Statement of Income and Expenses - Housing
Assistance Payment Program.
7
Notes to Financial Statements.
8
Supplemental Information:
Statement of Analysis of Surplus - Low Rent.
9
Statement of Analysis of Surplus - Housing
Assistance Payment Program.
10
Computation of Residual Receipts and
Accruing Annual Contribution - Low Rent.
11
Project Account Operating Reserve Changes and
Computation of Annual Contribution Earned -
Housing Assistance Payments Program.
12
Statement of Initial Operating Period Income
and Expense - Low Rent.
14
Statement of Actual Development Costs -
uncompleted.
15
Statement of Actual Modernization Costs -
Uncompleted.
16
Reconciliation of Development and Modernization
Advances with Costs.
17
i
Exhibit
L
M
HOUSING AUTHORITY OF THE
CITY OF SALINA1 KANSAS
INDEX TO FINANCIAL STATEMENTS - CONTINUED
Analysis of General Funds Available for
Reduction of Annual Contributions - Low Rent.
Analysis of General Funds Available for
Reduction of Annual Contributions - Housing
Assistance Payments Program.
Activities of the Housinq Authority.
Status of Prior Audit Findings.
Current Audit Findings.
Schedule of Adjusting Entries.
General Comments. .
i i
Paqe
18
19
20
21
22
23
24
s~ cuuL ~
~~~
300 W. ~
~.ð. 930£ 691
$~ ()J( 711872
(-'105) 759-3-'135
Regiona~ Inspector General for Audit
Office of the Inspector General
Department of Housing and Urban Dev.
Region VII, 1103 Grand Ave.
Kansas City, MO 64106
~. ð. 93"", H06
Cù." t)~711820
(-'105) 332-85-'18
Board of Commissioners
Housing Authority of the
City of Salina, Kansas
P. O. Box 1202
Salina, Kansas 67402-1202
We have examined the balance sheet of the Housing Authority of the
City of Salina~ Kansas pertaining to its Low-Rent Housing Program and
its Housing Assistance Payment Program as of June 30, 1987, and the
related statements of income and expenses and analysis of surplus for
the 12 months then ended. Our examination was made in accordance with
generally accepted auditing standards( General Accounting Office
Standards for Audit of Governmental Organization Programs, and the
Compliance Supplement to Office of Management and Budget Circular A-
128, and, accordingly, included such tests of the accounting records
and other such procedures as we considered necessary in the
circumstances.
As described in Note A, the authority's policy is to prepare its
financial statements on the laws of accounting practices prescribed or
permitted by the Department of Housing and Urban Development. These
practices differ in some respects from generally accepted accounting
principles. Accordingly, the accompanying financial statements are
not intended to present financial position and results of operations
in conformity with generally accepted accounting principles. This
report is intended solely for filing with the cognizant agency and is
not intended for any other purpose.
In our opinion, the financial statements referred to above present
fairly the financial position of the Housing Authority of the City of
Salina, Kansas, at June 30, 1987, and the results of its operations
for the 12 months then ended, in conformity with accounting practices
generally followed by local authorities applied on a basis consistent
with HUD procedures.
The supplemental financial data as listed in the Table of Contents has
been tested by us as a part of our auditing procedures, followed in
the examination of the financial statements mentioned above, and in
our opinion, is fairly stated in all material respects :Ln relation to
the financial statements taken as a whole.
SAUNDERS & ASSOCIATES
~
G. E. Saunders
Certified Public Accountant
September 8, 1987
GES:bad
1
s~ cuuL ~
~~~
~1!. c} ffi"", HOG
CîJo.. tì~71I820
Accountant's Report on Internal control
300 W. ~
~.(). 930£ 691
$~ t)J( 711872
(-'105) 332-85-'18
Board of Commissioners
Housing Authority of the
City of Salina, Kansas
P. O. Box l202
Salina, Kansas 67402-1202
(-'105) 759-3-'135
Regiona~ Inspector General for Audit
Office of Inspector General
Department of Housing and Urban Dev.
Region VII, 1103 Grand Ave.
Kansas City, MO 64106
We have examined the financial statements of the Housing Authority of
the City of Salina, Kansas, for the twelve months ended June 30, 19871
and have issue~ our report thereon dated September 8, 1987. As a part
of our examination, we made a study and evaluation of the Housing
Authority's system of internal accounting control and those controls
which provide a reasonable assurance of compliance with laws and
regulations to the extent we considered necessary to evaluate the
system as required by the standards' for financial and compliance
audits contained in the U.S. General Accounting Offices' Standards
for Audit of GovernmentalOrqanizationsl Proqramsl Activitiesl and
Functions and Office of Management and Budget Circular A-128, Audits
of state and Local Government.
For the purpose of this report, we have classified the Authority's
significant internal accounting controls into the following
categories:
(1) Payroll/Personnel
(2) Revenue/Cash Receipts/Receivables
(3) Expenditures/Cash Disbursements/Payables
(4) Property and Equipment
Further, we have classified the significant administrative controls
designed to provide reasonable assurance that federal programs are
being managed in compliance with laws and regulations into the
following categories:
(1) Political activity
(2) Davis-Bacon Act compliance
(3) Civil Rights
(4) Cash management
(5) Real property acquisition
and relocation
(6) Federal financial reports
(7) Reporting
Our study included all of the control categories listed above.
purpose of our study and evaluation was to determine the naturel
The
2
Accountant'5 Report on Internal control
Page 2
timing, and extent of the auditing procedures necessary for expressing
an opinion on the Authority's financial statements. Our study and
evaluation was more limited than would be necessary to express an
opinion on the system of internal control taken as a whole, or on any
of the aforementioned categories of controls.
The management of the Housing Authority of the City of Salina, Kansas
is responsible for establishing and maintaining a system of internal
control. In fulfilling this responsibility, estimates and judgments
by management are required to assesS the expected benefits and related
costs of control procedures. The objectives of a system are to
provide management with reasonable, but not absolute assurance that
assets are safeguarded against loss from unauthorized use or
disposition, that transactions are executed in accordance with
management's aûthorization and recorded properly to permit the
preparation of financial statements in accordance with generally
accepted accounting principles, and that there is compliance with
applicable laws and regulations.
Because of inherent limitations in any system of internal control,
errors or irregularities may nevertheless occur and not be detected.
Also, projection of any evaluation of the system to future periods is
subject to the risk that procedures may become inadequate because of
changes in conditions or that the degree of compliance with the
procedures may deteriorate.
Our study and evaluation made for the limited purposes described in
the first paragraph would not necessarily disclose all material
weaknesses in the system. Accordingly, we do not express an opinion
on the system of internal control of the Housing Authority of the
city of Salina, Kansas, taken as a whole, or on any of the categories
of controls identified in the second paragraph. However, our study
and evaluation disclosed no conditions that we believe to be material
in relation to the financial statements of the Housinq Authority of
the City of Salina, Kansas.
This report is intended solely for the use of management and the
cognizant Federal agency, and should not be used for any other
purpose.
SAUNDERS & ASSOCIATES
~
G. E. SAUNDERS
Certified Public Accountant
September 8, 1987
GES:bad
3
S~cuuL~
~~~
~l? ð. ffiO£ HO6
(tk, ~~~m.a, 71;820
Accountant's Report on compliance
300 W. ~
cæ.ð. ffiO£ 691
S~, ()J( 7-'1872
(-'105) 332-85-'18
Board of Commissioners
Housing Authority of the
City of Salina
P. O. Box 1202
Salina, Kansas 67402-1202
(-'105) 759-3-'135
Regional Inspector General for Audit
Office of the Inspector General
Department of Housing and Urban Dev.
Region VII, 1103 Grand Avenue
Kansas City, MO 64106
We have examined the financial statements of the Housing Authority of
the City of Sa1ina, Kansas, for the twelve months ended June 30, 1987.
Our examination was made in accordance wi th generëÜly accepted
auditing standards; the General Accounting Office Standards for Audit
of Governmental Organizations, Programs, Activities and Functions, as
they pertain to financial and compliance audits; the provisions of the
Office of Management and Budget's COMB) Compliance Supplement for
Single Audits of State and Local Governments; and the provisions of
OMB's Circular A-128, Audits of State and Local Governments, and
accordingly included such tests of the accounting records and such
other auditing procedures as we considered necessary in the
circumstances.
Based on our examination, we found that, for the items tested, the
Housing Authority of the City of Salina, Kansas, complied with the
material terms and conditions of applicable laws, regulations, and
award agreements. Further, nothing came to our attention to indicate
that the Housing Authority of the City of Salina, Kansas had not
complied with the material compliance terms and conditions referred to
above.
This report is intended solely for
the City of Salina, Kansas, the
federal and state audit agencies.
limit the distribution of this
completion, is a matter of public
the use of the Housing Authority of
cognizant audit agency, and other
This restriction is not intended to
report which, within 30 days of
record.
SAUNDERS & ASSOCIATES
G. E. SAUNDERS
Certified Public Accountant
September 8, 1987
GES:bad
4
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
BALANCE SHEET
June 30, 1987
Assets
Cash (Exhibits L, M)
Accounts receivable:
Tenants
Other:
Utility deposits
Due from Section 8
Due from Proi. 38-3
Investments.
Debt amortization funds
Deferred charges:
Prepaid insurance
Land, structures and equipment
TOTAL ASSETS
Liabilities and Surplus
Accounts payable:
Contract retentions
Tenant's security deposits
HUD
Revolving fund
Due, Low-Rent
Other
Accrued liabilities:
Interest payable - Dev. Notes
and Bonds
Interest payable - Administrative
Notes
PILOT
Deferred credits:
Tenant's prepaid rents
Fixed liabilities
TOTAL LIABILITIES
Surplus (Exhibits D, E)
TOTAL LIABILITIES AND SURPLUS
E>:hlblt A
K c -1-.Q~ KC-7015
$ 9'71468.47 $ 6,332.11
627.80
185.00
6,281.45
7,820.85
54,316.25
93,350.61
7,528.96
21351,.387.83
$2,618,967.22
------------
------------
$
873.00
9,483.00
19,528.28
28,345.08
31406.13
$38,083.32
---------
---------
$ 767.36
530.00
6,281.45
7,578.81
.Jj11504.51
S3B,O83.32
--.-------
--.-------
* The accompanying notes are an integral part of the financial
statements.
9,957.0l
68,9~1.91
129,119.19
42,550.16
518.00
2,146,140.80
2,427,121.35
191¿~~
$2,618,967.22
------------
------------
5
Exhibit B
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
STATEMENT OF INCOME AND EXPENSES - LOW-RENT
For the Twelve Months Ended June 30, 1987
K-C -J~29-
ODe r a tin.9 .Lnc_o.m~
Dwelling rental
Nondwellinq rental
Interest on general fund investments
Other income
$
981413.(13
60.00
3,703.04
3,502.\L~
.
Total Operating Income
105,679.0~
Oper~tinq Expens~~
Administration
Utilities
Ordinary maintenance and
General expense
Nonroutine maintenance
operation
19,226.90
3,023.33
26,215.51
261640.37
31075.96
Total Operating Expenses
___78,182.07
27,496.98
NET OPERATING INCOME (LOSS) (Exhibit F)
Other Cred i te ang .Lçb.arqes )-
Interest on notes and bonds payable
Prior year adjustments - not affectinq
residual receipts
Prior year adjustments - affectinq residual
receipts
(l72,78tJ.84)
5,190.40
(~855.06)
NET INCOME (LOSS)
(Exhibit D)
$(1521956.52>
-------------
------------
* The accompanyinq notes are an integral Dart of the financial
statements.
6
Exhihit c
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
STATEMENT OF INCOME AND EXPENSES
HOUSING ASSISTANCE PAYMENT PROGRAM
For the Twelve Months Ended June 30, 1987
OperatiQg Jncom~
Interest - general fund
Interest - operating reserve
$
1,071.54
l,645.21
Total Operating Income (Exhibit G)
2,71b.7~
.
Operatinq Expenses
Administration
Housing assistance payments
Maintenance and operation
Other
Preliminary expenses
41,405.18
300,842.00
143.~O
10,999.94
424.05
Total Operating Expenses (Exhibit G)
353,814.67
Net Operating Loss
(35L097.92)
Other Credits and (Charqes)
Prior period adjustment - affection residual
receipts
5,818.90)
NET LOSS (Exhibit E)
$(356,916.82)
-----------
-----------
* The accompanying notes are an integral part of the financial
statements.
7
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
NOTES TO FINANCIAL STATEMENTS
Note l\~ Summar-y QÍ S i qn] f i cant AçÇ_9~!lt i fl.9. ~2J i c i es :
Basis of Accounting:
The accountinq records are maintained in accordance with the standards
set forth by the U. S. Uepartment of Housing and Urban Development for
Public Housing Authorities.'
Note B :- ~'~.Ð~ ~Jructl!):"e_::>.:- 9!!..c1 ~g~jJ?!T\~J1t
All costs related to the acquisition of land, oriqinal construction of
the housing units, completed modernization costs, and equipment costs
are carried in this account.
* The accompanying notes are an inteqral part of the financial
statements.
8
.
SUPPLEMENTAL INFORMATION
E;.:h1b1t D
HOUSING AUTHORITY OF THE
CITY OF SALJNA, KANSAS
STATEMENT OF ANALYSIS OF SURPLUS - LOW-RENT
For the Twelve Months Ended June 30, 1987
~C-IO2~
KS 38-2,3
Unreserved Su~us
Balance per audit June 30, 1986
Prior audit adiustments backed out
Balance per books at June 30, 1986
Initial operating period Income (Loss)
(Exhibit H)
Net income (Loss) for year ended
June 30, 1987 (Exhibit B)
(Provision for) Reduction of Operating Reserve
for year ended June 30, 1987 (Exhibit F)
S(l,184,979.82)
----- 628.50
/1,184,351.32)
13,692.59
152,956.52)
37,053.44)
Balance at June 30, 1987
(l,360,668.69)
Reserved Surplus ~ Operati~ Reserve
Balance per audit June 30, 1986
(Provision for) Reduction of Operating Reserve
23,261.56
371053.44
Balance at June 30, 1987 (Exhibit L)
60,315.00
Cumulative HUD Contributions
Balance per prior audit
Adjusted for initial operating period
income (Exhibit H)
HUD adiustment to annual contribution
Accrued annual contribution for year
ended June 30, 1981 (Exhibit F)
Operating subsidy June 30, 1987 (Exhibit F)
l,432,509.73
13,692.59)
25,462.50)
87,514.92
111330.00
Balance at June 30, 1987
L4921199.56
TOTAL SURPLUS (Exhibit A)
S
191,845.87
-------------
-------------
* The accompanying notes are an integral part of the financial
statements.
9
Exhibit E
HOUSING AUTHORITY OF THE
CITY OF SALINA1 KANSAS
STATEMENT OF ANALYSIS OF SURPLUS
HOUSING ASSISTANCE PAYMENT PROGRAM
For the Twelve Months Ended June 30, 1987
KC-70l5
Unreseryed ~~rplus
Balance per audit June 30, 1986
Prior audit adiustment backed out
Balance per bo~ks June 30, 1986
Net Income (Loss) for year ended
June 30, 1987 (Exhibit C)
Project account unfunded
$11,758,647.28)
32.10
(1,758,615.18)
356,916.82)
166,716.39)
Balance June 30, 1987
(2,282,248.39)
Operatinq Reserve
Balance per audit June 30, 1986
Provision for (Reduction of) Operating Reserve
for year ended June 30, 1987 (Exhibit G)
3l,999.7l
L250.97)
Balance June 30, 1987 (Exhibit M)
27,748.74
Project Account Unfunded
Balance per audit June 30, 1987
Provision for Project Account for
year ended June 30, 1987
291,095.47
Balance June 30, 1987
1701967.36
-- 4621062.83
Cumulative HUD Contributions
Balance per audit June 30, 1986
Annual contribution for year ended
June 30, 1987 (Exhibit G)
1,470,168.69
352,772.64
Balance at June 30, 1987
-1J822,94l.33
TOTAL SURPLUS (Exhibit A)
$
30,504.51
-------------
-------------
* The accompanying notes are an integral part of the financial
statements.
10
Exhibit F
HOUSING AUTHORITY OF THE
CITY OF SALINA1 KANSAS
COMPUTATION OF RESIDUAL RECEIPTS AND ACCRUING
ANNUAL CONTRIBUTION - LOW RENT
For the Twelve Months End~d June 30, 1987
KC-I029
~~ 38-L-l
Compu ta t i on Qi. Res id_l!tl Rec~ !Qts
Net operating income (loss) (Exhibit B)
Capital expend1tures
Prior year adiustmenls - affecting
residual receipts
Operating subsidy (Exhibit D)
Residual receipts (Deficit) per audit
Audit adjustment backed out
Residual receipts per PHA before provision
for operating reserve
(Provision for) Reduction of operating
reserve (Exhibit D)
~: 27..496.98
5,190.40
_11,330.00
44,017.38
(- l,l28.25)
421889.13
(371053.44)
RESIDUAL RECEIPTS
s
5,835.69
----------
----------
Computation of Accruinq Annual Contribution
Fixed annual contribution
Adiustments
S 93,350.61
( 5,835.69)
ACCRUING ANNUAL CONTRIBUTION (Exhibit 0)
$ 87,514.92
----------
----------
* The accompanying notes are an integral part of the financial
statements.
11
Exhibit G
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
PROJECT ACCOUNT OPERATING RESERVE CHANGES AND
COMPUTATION OF ANNUAL CONTRIBUTIONS EARNED -
HOUSING ASSISTANCE PAYMENTS PROGRAM
For the Twelve Months Ended June 30, 1987
Se_ct i Q.!l 8
K_Ç_-::J _Q12
Ma~!Jn_llJTl Çon ~r) Q.!:!.tjQ.lJ. A~a_tJi!Þl~
.
Maximum annual contribution authorized
$ 523,740.00
Project account balance at beginning of
fiscal year
__291 ,_Q9 5. 47
Total Annual Contribution Available
8141 835~
Annual Çontribution Required
Administrative expenses
50,479.98
Preliminary expenses
1,181.20
Independent public accountant audit fee
576.00
Hard to house fee
765.00
Housing assistance payments
_300,8,~2.00
Total Funds Required
353, 8.H .18
Proiect Receipts Other Than ACC
( -
1,071.54)
TOTAL ANNUAL CONTRIBUTION REOUIRED
$ 352,772.64
------------
------------
* The accompanyinq notes are an integral part of the financial
statements.
12
Exhibit G-2
PROJECT
HOUSING AUTHORITY OF THE
CITY OF SALINA1 KANSAS
ACCOUNT OPERATING RESERVE CHANGES AND COMPUTATION OF
ANNUAL CONTRIBUTIÚNS EARNED - CONT1NUfo;D
HOUSING ASSISTANCE PAYMENTS PRÚGRAM
Annua 1 ~QJltx ibut'!'QD E;arn_~_d-
Lesser of contribution available or
contribution required (Exhibit C)
$ 352,882.64
QQ.~~~ t i n_9 R~ s e !:y~ Cha n..~-
Operatina Inco~e (Exhibit C)
2,716.75
Annual contribution earned (Exhibit E)
_12_l-L LI'2.~fL4-
Total Operating Receipts
22_~-L. J ~
Ooe..léat!Jlg Expendi tures
Operating Expenses (Exhibit C)
353,814.67
Prior period adjustment - affecting
residual receipts
5,818.90
Capital expenditures
757.15
Total Operating Expenditures
~QL390.72
Provision for operating receipts avajlable
4,901.33)
Audit adiustment backed out
- --- _fL~Q~_.L6-
PROVISION FOR OPERATING RESERVE
(Exhibit E)
$ (
4,250.971
------------
--------.----
* The accomoanyinq notes are an integral part ot the financial
statements.
13
Exhibit H
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
STATEMENT OF INITIAL OPERATING PERIOD
INCOME AND EXPENSE - 'LOW-RENT
June 301 1987
~C-1029
prot_.- l<~ 38- 3
.
Initial operating period income:
Dwelling rental
Interest on general fund investments
Other income
$37,156.73
1,050.25
413.11
Total Initial Operating Income
38,620.09
Initial operating expense:
Administration
Utilities
Ordinary maintenance and operation
General expense
6,876.57
1,620.93
8,641.47
71788.53
Initial Operating Expense
lL927.50
NET INITIAL OPERATING INCOME (Exhibit D)
$13,692.59
-.--------
-.--.------
* The accompanying notes are an integral part of the financial
statements.
14
E:.:hibit I
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
STATEMENT OF ACTUAL DEVELOPMENT COSTS - UNCOMPLETED
June 30, 1987
KC:-_1-929
Prqi.,- K~. l~l
The Actual Development Costs - uncompleted are as follows:
Class i ti.C<it.J9JJ
p rc~1 e c t
l' 0 Da t ~
Administration
Interest paid
Interest earned
Planning
Site acquisition
Construction and equipment
Relocation costs
Contract retentions
s
18,849.01
68,951.91
4,502.36)
9,442.21
954,031.46
48,65l.00
8,452.50
873.00)
Total Cost
1,103,002.73
Less Interest Payable To HUD
681951.9l
Net Development Cost to Date (Exhibit K)
$ l,034,050.82
-------------
-------------
* The accompanvinq notes are an integral part of the financial
statements.
1 ~)
8
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
STATEMENT OF ACTUAL MODERNIZATION
COSTS - UNCOMPLETED
June 30.. 1987
K~_=-1_9)~
KS 3ß-:~.Q2
Exhibit J
The Actual Mod~rnization Costs - Uncompleted are as follows:
Clas s i.f.l ca t iQ!J
Administration
Dwelling structures
Construction and equipment
Total (Exhibit K)
ço=~ TQ.
pat~
$ 17,l37.82
19,583.17
222 1999 . II
$259,720.10
----.------
----.------
* The accompanying notes are an inteqral part of the financial
statements.
16
_...,~
Exhibit K
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
RECONCILIATION OF DEVELOPMENT AND MODERNIZATION
ADVANCES WITH COSTS
June 30, 198'/
K- C--=--1. 0 2~
KS ~"':2
KS ]~~Q1.
Total
Funds Advanced
Costs .
EXCESS (DEF.) (Exhibit L)
$],069,238.00
5 2~5,282.00
52,293,610.00
L_0_lL-9_5JL 82
.2- 5 9 -L~? CLlP
2 . 2§_L._~6_Q~
$
35,187.18
5(
41438.10) $
30,749.08
------------
------------
-----------
-----------
------------
------------
* The accompanying notes are an intcqral part of the financial
statements.
17
E;.:h i bit L
HOUSING AUTHORITY OF THE
CITY OF SALINA
ANALYSIS OF G~NERAL FUNDS AVAILABLE
FOR HEDUCTIUN 1)]<' ^NNUAL CONTRIBUTIONS -
LOW-RENT
June 30, 198~1
KC-IU¿':J
"".-" - --
Develooment/Modernization tund~ advanced
S 1,324,520.00
Development/Modernization costs
1 2937íO.9'¿
uH-L_-"---'"--_-------
.
Excess (Deficiency)
(Exhibit K)
S
30,749.08
"---------.---
--------"-------
Cash šLnQ. Q.t:.h..~J;:- ðssete
Cash (Exhibit A)
Adjusted for excess funds
Accounts receivable:
Tenants
Other
Investments
Deferred charqes:
Prepaid insurance
advanced
S 397,468.4'1
( 30,149.08)
627.80
13,159.05
54,316.25
___II52~~_~
Total
$
142,351.45
------- - - -"- -
-------------
L i ~Þl.li tie s '- R~ e_~z:,:{G_e .3J!d ðæQ~D.J:...s-
Ava ~ lable- L~r- ÇQDJ;rtbut;jQJ1. ß~~ll.c:J:j-9lì-
Accounts payable:
Tenant's security deposits
HUD
Other
Accrued liabilities - PILOT
Deferred credits:
Tenant's prepaid rents
Operating reserve (Exhibit 0)
S
9,483.00
19152t!.28
9,957.01
42,550.16
518.00
- ~......]J~-~~QQ
Total
$
142,351 45
----_.----------
_____n -- --'---
* The accompanyinq notes are an intearal Dart of the financial
statements.
18
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
ANALYSIS OF GENERAL FUNDS AVAILABLE FOR
REDUCTION OF ANNUAL CUNTI<lBlJ1'ltJN
HoUSING ASSISTANCE PAYMENTS PROGRAM
June ::3 0, J 98.7
KC-7015
- - --. -- - --
~ë!éh è2_nQ OttlE:..!=: Assets
Cash (Exhibit A)
..
Investments
Total
Lia_bilities-L.. Fes~_~.':{E:~ aD.9.. bmo_u..D.J;&
Available for Con~rib~tJ~~ Reductio~
Accounts payable:
HUD
s
767.36
Revolving fund
530.00
Due Low-Rent
~ 6 3~_9-
Operating reserve (Exhibit E)
Total
E:.;h i t¡] t M
s 6,332.11
!: t¿ !J...45..._QJ~
$34,677.19
---------
---------
6,928.45
1.2J_-", 4 ~.~1
$34,677.19
---------
----------
* The accompanying notes are an inteqral part ot the financiaJ
statement~~ .
19
--
HOUSING AUTHORITY OF THE
CITY OF' SALINA, KANSAS
ACTIVITIES OF THE HOUSING AUTHORITY
June 30, 1987
At June 30, 1987 the Housing Authority of the City of Salina had the
following units under management and development.
Mšl!1~ ge meJlt
Q~ v ~J.52P!TI ~n t.
'to_ta 1
KC-I029:
Pro;ect KS-38-2
Pro;ect KS-38-3
25
75
25
75
.
KC-7015:
Section 8 Existinq Housing
l86
186
'I'ota 1 Un its
286
---
They are also in the process of completing a $250,000.00 CIAP program.
* The accompanyinq notes are an integral part ot the financial
statements.
2U
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
STATUS OF PRIOR AUDIT FINDINGS
The prior audit report contained three findinqs.
taken is described below.
Corrective action
(I) Bud~ Overruns. Expenditures have been closely monitored and the
Housing Authority experienced no budget overruns during the
current audit period.
.
( 2) Ço II ect ion LossE:!e.!.TE:!_!l9Dt ~Ç.~~I1tS- Re_ç~ i.\f_~_bl~. Co llect ion 1 asses
and excessive accounts receivable continue to be a problem area
for the Housing Authority. See Current Audit Findinq Number 1.
(3) Develooment/Modernization Exoense Misclassification. All
modernization costs were correctly classified.
* The accompanying notes are an inteqral part of the financial
statements.
21
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
CURRENT AUDIT FINDINGS
(1) Excessive ßccounts Heceiy"ëible and Collection Loss h'.~Ue-Offs. At
June 30, 1987 the Housinq Authority was carrying accounts
receivable which averaged $62.78 per unit, well in excess of the
Sl5.00 standard set by HUD. In addition, tenant accounts
receivable totaling 2% of total rental income were written off.
This amount is still sliqhtly in excess of limits established by
HUD as being reasonable.
Recommendation. The Housing Authoritv should work toward strict
-- .
enforcement of its collection policy.
Reply. We are presently strictly enforcing our collection policy.
(2) Lonq-Outstanding Çh~~k~. The Housing Authority is carrying the
following long-outstanding checks on its books:
Çheck No.
8290
800001
800604
pa1~ Written
9-01-85
4-10-86 -:s;
10-01-86 ~
[\mount
12.00
190.00
140.00
RecQmITI.~J1dation. These checks should be voided and either rewritten
or removed from the Housing Authority's expenses with an
appropriate adiustment to the cash account.
ReDlY. We will contact the fee accountant with regard to this
matter.
* The accompanying notes are an integral part of the financial
statements.
22
Audit
Accts_!-
1129.9
4540
4540
21l9.9
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
SCHEDULE OF ADJUSTING ENTRIES
For the Twelve Month Period Ended June 30, 1987
Dr.
~ow ~ens Proiect 18~~
(1)
Accounts Receivable - Section 8
Prior Period Adjustment -
Affectin? Residual Receipts
.
1,128.25
ÇL
1,128.25
650.36
* The accompanying notes are an integral part of the financial
statements.
To correct accounts receivable from Section 8
per Housin? Authority's records.
Section ~ Project 38-1
( 2 )
Prior Period Adiustments -
Affecting Residual Receipts
Accounts Payable - Low Rent
650.36
To correct accounts payable to Low-Rent
per Housing Authority's records.
23
LHA
Accounts
l129.9
6010
6010
2119.9
HOUSING AUTHORITY OF THE
CITY OF SALINA, KANSAS
GENERAL COMMENTS
The books of the Housing Authority were in excellent condition tor
audit. The personnel were knowledgeable and orofessional and were
most cooperative.
The Housinq Authoritv should work closely with the fee accountant
to maintain control of the costs which are to be distributed between
the programs and to insure that the receivables and payables between
the two programs are always in balance.
.
24