Audit - 1997/1998
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Housing Authority of the City of Salina
Salina, Kansas
Report on Audit of Financial Statements
and Supplemental Data for the
twelve months ended J~ne 3D, 1998
DAVID O. TATE
Certified Public Accountant
Mangum, Oklahoma 73554
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Housing Authority of the City of Salina
Salina, Kansas
June 30, 1998
Page 1 of 2
Table of Contents
Independent Certified Public Accountant's Report
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Financial statements:
OWNED HOUSING:
Exhibit A-Statement of Assets, Liabilities, and
Surplus-Regulatory Basis 6
Exhibit B-Statement of Operating Income, Operating Expenses
Other Credits and Other Charges-Regulatory Basis 7
Exhibit C-Analysis of Surplus-Regulatory Basis 8
HAP CERTIFICATES:
Exhibit D-Statement of Assets, Liabilities, and
Surplus-Regulatory Basis 10
Exhibit E-Statement of Operating Income, Operating Expenses
and Other Charges-Regulatory Basis 11
Exhibit F-Analysis of Surplus-Regulatory Basis 12
HAP VOUCHERS:
Exhibit G-Statement of Assets, Liabilities, and
Surplus-Regulatory Basis 14
Exhibit H-Statement of Operating Income
Operating Expenses-Regulatory Basis 15
Exhibit I-Analysis of Surplus-Regulatory Basis 16
HOME PROGRAM:
Exhibit J-Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
Exhibit K-Statement of Operating Income,
Operating Expenses and Other Credits-Regulatory Basis
Exhibit L-Analysis of Surplus-Regulatory Basis
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Housing Authority of the City of Salina
Salina, Kansas
June 3D, 1998
Page 2 of 2
Table of Contents
Notes to the Financial Statements 21
Supplementary data:
OWNED HOUSING:
Schedule I-Computation of Residual Receipts and Accruing
Annual Contribution-Regulatory Basis - 23
Schedule 5-Statement and Certification of Actual
Comprehensive Inprovement Assistance Cost 29
Schedule 6-Statement and Certification of Actual
Development Cost 30
HAP CERTIFICATES:
Schedule 2-Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis 24
HAP VOUCHERS:
Schedule 3-Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis 26
ALL PROGRAMS:
Schedule 4-Schedule of Expenditures of Federal Awards 28
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. 31
Report on Compliance and on Internal Control Report over
Financial Reporting Based on an Audit of the Financial
Statements Performed in Accordance with "Government
Auditing Standards". 33
Summary Schedule of Findings and Questioned Costs 35
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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
Post Office Box 1202
Salina, Kansas 67402
Independent Certified Public Accountant's Report
I have audited the accompanying financ~al statements of the Housing
Authority of the City of Salina as of June 30, 1998, and for the
year then ended, as listed in the table of contents. These
financial statements are the responsibility of the 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, because of the policy to prepare its financial
statements on the basis of accounting discussed in the preceding
paragraph, the financial statements referred to do not present
fairly, in conformity with generally accepted accounting
principles, the financial position of the Housing Authority of the
City of Salina as of June 30, 1998 or the results of its operations
and changes in surplus for the year then ended.
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However, 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, 1998,
and the results of its operations and changes in surplus for the
year then ended on the basis of accounting practices referred to
above.
In accordance with "Government Auditing Standards", I have also
issued a report dated January 13, 1999 on my consideration of
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~~ O. J,~
Certified Public Accountant
January 13, 1999
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Exhibit A
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038
Statement of Assets, Liabilities,
and Surplus-Regulatory Basis
June 30, 1998
Assets
Cash
Accounts receivable:
Tenants'
Interprogram
Debt amortization funds
Deferred charges
Land, structures, and equipment
374-,004.32
34,264.98
18,287.00
67,888.11
8,068.84
6,806,482.80
Total assets
7,308,996.05
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Liabilities and Surplus
A//
(:.T ,---
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Tenants' security deposits
Accounts payable:
Interprogram
Other
Accrued payments In lieu of taxes
Prepaid rents
Deferred credits
Fixed liabilities
/f
17,442.88
12,298.39
2,871.54 '-"
22,945.37
1,480.00(~
6,020.00
658,480.11
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Total liabilities
721,538.29
Surplus (Exhibit C)
6,587,457.76
Total liabilities and surplus
7,308,996.05
The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit B
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Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038
Statement of Operating Income, Operating Expenses,
Other Credits, and Other Charges-Regulatory Basis
For the twelve months ended
June 30, 1998
Operating income:
Dwelling rental
Interest on general fund investments
Other income
250,881.12
4,347.88
210,001.77
Total operating income
465,230.77
Operating expenses:
Administration
Utilities
Ordinary maintenance and operation
General expense
Nonroutine maintenance
72,213.50
20,293.03
103,564.08
91,376.26
8,555.59
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Total operating expenses
296,002.46
Net operating income (loss)
169,228.31
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Other credits:
Gain from disposition of
nonexpendable equipment
2,995.00
Total other credits
2,995.00
Total operating income and other credits
172,223.31
Other charges:
Prior years' adjustments affecting
residual receipts
Interest on notes and bonds payable
304.34
44,972.14
Total other charges
45,276.48
Net income (loss)
126,946.83
----------------
----------------
The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit C
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1998
Unreserved surplus:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
(2,398,679.46)
(200.00)
Balance per books at the beginning
of the year
Net income (loss) for the year
(Provision for) reduction of
operating reserve
(2,398,879.46)
126,946.83
(225,494.24) :J~
Total unreserved surplus
(2,497,426.87)
Operating reserve:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
210,607.40
Balance per books at the beginning
of the year
Provision for (reduction of) reserve
Other adjustments or corrections
210,607.40
225,494.24('J
1,750.23(',.}
Total operating reserve
437,851.87
Cumulative HUD contributions:
Balance per prior audit
Prior adjustments recorded
in a subsequent period
4,255,033.87
Balance per books at the beginning
of the period
Operating subsidy
Annual contributions
4,255,033.87 .
57,856.009
67,888.11\,)
Total cumulative HUD contributions
4,380,777.98
The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit C
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1998
Cumulative grants:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
4,153J037.64
Balance per books at the beginning
of the period
Grants received
4,153,037.64
202,872.06 v
Total grants
4,355,909.70
Cumulative donations:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
5,738.80
Balance per books at the beginning
of the period
Donations received
5,738.80
878.260
Total donations
6,617.06
Cumulative cost of dwellings conveyed
to homebuyers:
Balance per prior audit
Prior audit adjustments recorded in
a subsequent period
(128,798.33)
Balance per books at the beginning
of the year
Other adjustments/corrections
(128,798.33)
32,526.35~J
Total cumulative cost of dwellings
conveyed to homebuyers
(96,271.98)
Total surplus
6,587,457.76
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----------------
The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit D
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS 038E
Statement of Assets, Liabilities, and
Surplus- Regulatory Basis
June 30, 1998
Assets
Cash
Accounts receivable:
Interprogram
Investments
Land, structures, and equipment
36_, 459 . 29
21,782.24
23,929.16
15,418.27
Total assets
97,588.96
Liabilities and Surplus
Accounts payable:
Interprogram
HUD
Deferred credits
22,814.47
9,090.00
2.22
Total liabilities
31,906.69
Surplus (Exhibit F)
65,682.27
Total liabilities and surplus
97,588.96
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The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit E
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS 038E
Statement of Operating Income, Operating Expenses,
and Other Charges-Regulatory Basis
for the twelve months ended
June 30, 1998
Operating income:
Interest on general fund investments
3,617.14
Total operating income
3,617.14
Operating expenses:
Administration
General expense
Housing assistance payments
95 , 7 62 . 0 ~ /I 5/
19,895.20;
467,482.00
J Ie .".-
Total operating expenses
583,139.26
Net operating income (loss)
(579,522.12)
Other charges:
Prior years adjustments affecting
residual receipts
18,663.57
Total other charges
18,663.57
Net income (loss)
(598,185.69)
The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit F
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS 038E
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1998
Unreserved surplus:
Balance per prior audit
Prior HUD adjustments recorded
in a subsequent period
(9,622J325.17)
1,063,658.000
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
(8,558,667.17)
(598,185.69)
2,232.44(0
50,806.00
( 2 64 , 12 8 . 0 0 )(/:7
(1.75 )
Total unreserved surplus
(9,367,944.17)
Operating reserve:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
101,105.00
Balance per books at the beginning
of the year
101,105.00
Provision for (reduction of) reserve
Other adjustments or corrections
(50,806.00)
(35.00)
Total operating reserve
50,264.00
The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit F
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS 038E
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1998
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Project account-unfunded:
Balance per prior audit
Prior HUD adjustments recorded
in a subsequent period
I, 54 8_, 963 . 0 0
(1,063,658.00)(J
Balance per books at the beginning
of the year
Provision for (reduction of)
project account
485,305.00
264,128.00cD
Total project account-unfunded
749,433.00
Cumulative HUD contributions:
Balance per prior audit
Prior adjustments recorded
in a subsequent period
8,088,780.44
Balance per books at the beginning
of the period
Annual contributions
8,088,780.44
545,149.00 (V
Total cumulative HUD contributions
8,633,929.44
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Total surplus
65,682.27
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/1).-
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c- , / n ,\,j d f- (f
~ '1 "/1'--' I
The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit G
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS 038V
Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
June 30, 1998
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Assets
Cash
Accounts receivable:
Interprogram
Land, structures, and equipment
3 4_, 63 7 . 53
5,000.00
1,669.83
Total assets
41,307.36
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Liabilities and Surplus
Accounts payable:
Interprogram
Deferred credits
38,393.77
0.76
Total liabilities
38,394.53
Surplus (Exhibit I)
2,912.83
Total liabilities and surplus
41,307.36
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The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit H
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Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS 038V
Statement of Operating Income and
Operating Expenses-Regulatory Basis
for the twelve months ended
June 30, 1998
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Operating income:
Interest on general fund investments
767.39
Total operating income
767.39
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Operating expenses:
Administration
General expense
Housing assistance payments
13,162.44~
2,713.34
55,849.26
{:' -
Total operating expenses
71,725.04
Net income (loss)
(70,957.65)
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The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit I
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS 038V
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1998
Unreserved surplus:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
(994-1915.39)
247,689.008
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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
(747,226.39)
(70,957.65)
196.93(1)
5,469.000
( 11 , 9 6 5 . 0 0 )(l-
(0.28) .
Total unreserved surplus
(824,483.39)
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Operating reserve:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
6,364.00
Balance per books at the beginning
of the year
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Provision for (reduction of) reserve
Other adjustments or corrections
6,364.00
(5,469.00)0
348.000
Total operating reserve
1,243.00
The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit I
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS 038V
Analysis of Surplus-Regulatory Basis
for the twelve months ended
June 30, 1998
Project account-unfunded:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
35L, 841. 00
(247,689.00)\U"
Balance per books at the beginning
of the year
provision for (reduction of)
project account
104,152.00
11,965.00:0
Total project account-unfunded
116,117.00
Cumulative HUD contributions:
Balance per prior audit
Prior adjustments recorded
in a subsequent period
644,744.22
Balance per books at the beginning
of the period
Annual contributions
644,744.22
65,292.od~
Total cumulative HUD contributions
710,036.22
Total surplus
2,912.83
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L(j~ lo\ (d~'~~'
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The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit J
Housing Authority of the City of Salina
Salina, Kansas
HOME Program
Statement of Assets, Liabilities, and
Surplus-Regulatory Basis
June 30, 1998
Assets
Cash
Accounts receivable:
Interprogram
Mortgage notes receivable
Investments
151,572.05
12,298.39
52,767.55
25,774.13
Total assets
242,412.12
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Liabilities and Surplus
Surplus (Exhibit L)
242,412.12
Total liabilities and surplus
242,412.12
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The accompanying notes to the financial statements are an integral
part hereof.
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Exhibit K
Housing Authority of the City of Salina
Salina, Kansas
HOME Program
Statement of Operating Income, Operating Expenses,
and Other Credits-Regulatory Basis
for the twelve months ended
June 30, 1998
Operating income:
Interest on general fund investments
4-1567.22
Total operating income
4,567.22
Operating expenses:
Administration
General expense
6,495.89
285.00
Total operating expenses
6,780.89
Net operating income (loss)
(2,213.67)
Other credits:
Prior years' adjustments affecting
residual receipts
18,668.57
Total other credits
18,668.57
Net income (loss)
16,454.90
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The accompanying notes to the financial statements are an integral
part hereof.
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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, 1998
Unreserved surplus:
Balance per prior audit
Prior audit adjustments recorded
in a subsequent period
225,957.22
Balance per books at the beginning
of the year
Net income (loss) for the year
225,957.22
16,454.90
Total surplus
242,412.12
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The accompanying notes to the financial statements are an integral
part hereof.
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Housing Authority of the City of Salina
Salina, Kansas
Notes to the Financial Statements
June 30, 1998
Page 1 of 2
Note I-The Reportinq Entity.
The agency was created under the provisions of the laws of the
State of Kansas. The purpose of the agency is to administer
Public Housing Programs authorized by the United States Housing
Act of 1937.
The governing board 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.
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Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Notes to the Financial Statements
June 30, 1998
B.
Government
statement,
accounts.
reflected
directly
the
the
income
surplus
in
to
grants
but are
are not
credited
C.
In the event any of the activities of
classified as an Enterprise Fund, no
provided as a charge against earnings.
the agency were
depreciation is
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.
1.
Inventories of materials and supplies are not maintained.
J.
Prior year's adjustments are reflected in the income
statement rather than in the equity statement.
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
presented.
are
combining
financial
statements
N.
The costs of compensated absences are reported ln the
period paid rather than in the period earned.
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Schedule 1
Housing Authority of the City of Salina
Salina, Kansas
Annual contributions contract: FW-1271 (Owned housing)
Project number: KS038
Computation of Residual Receipts and
Accruing Annual Contribution-Regulatory Basis
June 30, 1998
Computation of Residual Receipts:
Operating receipts:
Operating income (Exhibit B)
HUD operating subsidy
465-,230.77
57,856.00
Total operating receipts
523,086.77
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Operating expenditures:
Operating expenses (Exhibit B)
Prior years I adjustments affecting
residual receipts
Capital expenditures:
Replacement of nonexpendable
equipment
296,002.46
304.34
1,285.73
Total operating expenditures
297,592.53
Residual receipts (deficit) per audit
225,494.24
Audit adjustments
Residual receipts (deficit) per LHA
before provision for reserve
provision for (reduction of) operating
reserve
225,494.24
225,494.24
Residual receipts (deficit) per LHA
0.00
----------------
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Computation of Accruing Annual Contribution:
Fixed annual contribution
67,888.11
Less amounts available for reduction of
annual contribution:
Residual receipts
0.00
Part II adjustments
0.00
Total reductions
0.00
Accruing annual contribution
67,888.11
----------------
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Schedule 2
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS 038E
Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
For the twelve months ended
June 30, 1998
Maximum contributions available:
Maximum annual contributions authorized
Pro rata maximum annual contribution
applicable to a period of less than
twelve months
316,141.00
493,136.00
Maximum contribution for the period
Project account balance at the beginning
of the year, as adjusted
809,277.00
485,305.00
Total annual contributions available
1,294,582.00
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Annual contribution required:
Administrative fee
Audit fee
Housing assistance payments
80,419.00
865.00
467,482.00
Total funds required
548,766.00
Project receipts other than annual
contributions
3,617.00
Total project receipts other than
annual contributions
3,617.00
Total annual contributions required
545,149.00
Project account change:
Provision for project account (Exhibit F)
264,128.00
----------------
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Annual contribution earned
545,149.00
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Schedule 2
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP certificates)
Project number: KS 038E
Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
For the twelve months ended
June 30, 1998
Operating reserve changes:
Operating receipts:
Operating income (Exhibit E)
Interest on operating reserve
Annual contribution earned
3,617.14
2,232.44
545,149.00
Total operating receipts
550,998.58
Operating expenditures:
Operating expenses (Exhibit E)
Prior years adjustments affecting
residual receipts
Other
583,139.26
18,664.00
1. 32
Total operating expenditures
601,804.58
Net operating receipts available per audit
Audit adjustments
(50,806.00)
provision for operating reserve
(50,806.00)
----------------
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Schedule 3
Page 1 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS 038V
Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
For the twelve months ended
June 30, 1998
Maximum contributions available:
Pro rata maximum annual contribution
applicable to a period of less than
twelve months
77,257.00
Maximum contribution for the pe~iod
Project account balance at the beginning
of the year, as adjusted
77,257.00
104,152.00
Total annual contributions available
181,409.00
Annual contribution required:
Administrative fee
Audit fee
Housing assistance payments
10,130.00
80.00
55,849.00
Total funds required
66,059.00
Project receipts other than annual
contributions
767.00
Total project receipts other than
annual contributions
767.00
Total annual contributions required
65,292.00
Project account change:
Provision for project account (Exhibit I)
11,965.00
Annual contribution earned
65,292.00
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Schedule 3
Page 2 of 2
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: KC-7015 (HAP vouchers)
Project number: KS 038V
Computation of Annual Contribution Earned-Project
Account and Operating Reserve Changes-Regulatory Basis
For the twelve months ended
June 30, 1998
Operating reserve changes:
Operating receipts:
Operating income (Exhibit H)
Interest on operating reserve
Annual contribution earned
197.00
767.00
65,292.00
Total operating receipts
66,256.00
Operating expenditures:
Operating expenses (Exhibit H)
71,725.00
Total operating expenditures
71,725.00
Net operating receipts available per audit
Audit adjustments
(5,469.00)
Provision for operating reserve
(5,469.00)
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Schedule 4
Housing Authority of the City of Salina
Salina, Kansas
Schedule of Expenditures of Federal Awards
for the twelve months ended June 30, 1998
Federal grantor/
Pass-through
Grantor/Program
or Cluster Title
CFDA No.
Pass-Through
Entity
Identifying
Federal
Number Expenditures
U. S. Department of Housing and
Housing assistance payments:
Certificates 14.857
Vouchers 14.855
Public and'Indian
Housing 14.850
Comprehensive Improvement
Assistance Program 14.852
Urban Development
545,149.00
65,292.00
322,803.48
8,003.66
Total expenditures of Federal awards
941,248.14
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Schedule 5
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: FW-1271 (Owned housing)
Project number: KS16P038004
Statement and Certification of Actual
Development Cost
June 30, 1998
1.
The actual comprehensive improvement assistance
program costs are as follows:
Classification
Administration
Operations
Initial operating period deficit
Planning
Site acquisition
Site improvement
Dwelling structures
Dwelling equipment
Nondwelling equipment
Total costs
2.
The date of the ADCC is:
March 25, 1997
----------------
----------------
Amount
14,695.23
9,116.35
(1,606.05)
26,887.33
45,035.60
85,315.91
490,510.00
8,073.32
2,172.31
680,200.00
The distributions of costs by major cost accounts
as shown on the Statement of Actual Development
Costs accompanying the Actual Development Cost
Certificate submitted to HUD for approval is in
agreement with the LHA1s records.
3.
4.
All development costs have been paid.
5.
The LHA incurred no budget overruns.
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Schedule 6
Housing Authority of the City of Salina
Salina, Kansas
Annual Contributions Contract: FW-1271 (Owned housing)
Project number: KS 16P038005
Statement and Certification of Actual Development Cost
June 30, 1998
1. The Actual Development Costs of the Project
are as follows:
Classification
Amount
Administration
Operations
Initial operating period deficit
Planning
Site acquisition
Site improvement
Dwelling structures
Dwelling equipment
Nondwelling equipment
52,790.47
185,923.53
3,000.00
119,659.86
288,949.22
194,571.20
2,701,214.52
39,780.00
22,989.65
Total costs
3,608,878.45
----------------
----------------
2. The date of the ADCC is:
October 23, 1998
3. The distribution of costs by major cost accounts
as shown on the Statement of Actual Development
Costs accompanying the Actual Development Cost
Certificate submitted to HUD for approval is in
agreement with the LHA's records.
4. All development costs have been paid.
5. The LHA/IHA incurred the following budget overruns.
Actual
Classification Cost
Total development cost
3,608,878.45
Amount
Overrun
3,602,500.00
6,378.45
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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
Post Office Box 1202
Salina, Kansas 67402
Compliance
I have audited the compliance of the Housing Authority of the City
of Salina with the types of compliance requirements described in
the "D. 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, 1998. major federal programs
are identified in the summary of auditor'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 management. My responsibility is to express an
opinion on 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
D. 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 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 compliance with those requirements.
In my opinion, 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, 1998.
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Internal Control Over Compliance
I
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.
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My consideration of the internal control over compliance would not
necessarily disclose all matters in the internal control that might
be material weaknesses. A material ~eakness 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. I noted no matters involving the
internal control over compliance and its operations that I consider
to be material weaknesses.
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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.
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Certified Public Accountant
January 13, 1999
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DAVID o. TATE
Certified Public Accountant
112 North Oklahoma, Suite A
Mangum, Oklahoma 73554
Telephone: (580) 782-5541
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Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit
of the Financial Statements Performed in
Accordance with "Government Auditing Standards"
Board of Commissioners
Housing Authority of the City of Salina
Post Office Box 1202
Salina, Kansas 67402
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I have audited the financial statements of the Housing Authority
of the City of Salina, as of and for the year ended June 30, 1998,
and have issued my report thereon dated January 13, 1999. These
financial statements were prepared on the basis of accounting
practices prescribed or permitted by the U. S. Department of
Housing and Urban Development. I conducted my audit in accordance
with generally accepted auditing standards applicable to financial
audits contained in "Government Auditing Standards", issued by the
Comptroller General of the United States.
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Compliance
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As part of obtaining reasonable assurance about whether financial
statements are free of material misstatement, I performed tests of
its compliance with certain provisions of laws, regulations,
contracts and grants, 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 that are required to be reported under
"Government Auditing Standards".
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Internal Control Over Financial Reporting
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In planning and performing my audit, I considered internal control
over financial reporting in order to determine my auditing
procedures for the purpose of expressing my opinion on the
financial statements and not to provide assurance on the internal
control over financial reporting. My consideration of the internal
control over financial reporting would not necessarily disclose all
matters in the internal control over financial reporting that might
be material weaknesses. A material weakness is a condition in
which the design or operation of one or more of the internal
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control components does not reduce to a relatively low level the
risk that misstatements in amounts that would be material in
relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal
course of performing their assigned functions. I noted no matters
involving the internal control over financial reporting and its
operation that I consider to be material weaknesses.
This report is intended for the information of the management and
federal awarding agencies and pass-through entities. However, this
report is a matter of public record and its distribution is not
limited.
j~o~
Certified Public Accountant
January 13, 1999
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Housing Authority of the City of Salina
Salina, Kansas
Schedule of Findings and Questioned Costs
June 30, 1998
Summary of auditor's results.
Financial statements:
Type of auditor's report issued: Qualified opinion
Material weaknesses identified? No.
Reportable conditions identified that are not considered to be
material weaknesses? None reported. _
Noncompliance material to financial statements noted? No.
Federal awards:
Internal control over major programs:
Material weakness identified? No_
Reportable conditions identified that are not considered to be
material weaknesses? None reported.
Type of auditor's report issued on compliance for major
programs: Unqualified.
Any audit findings disclosed that are required to be reported
in accordance with Section 510(a) of Circular A-133? No.
Identification of major programs:
Housing assistance paYments
Dollar threshold used to distinguish between type A and B
programs: $300,000.
Auditee qualified as low-risk auditee? No.
35