HomeMy WebLinkAbout20121186 Jean Sickels
VELD COUNTY Certified Public Accountant
isn!hiSSIONERS 8518 S Kays Chapel Rd
Fredericksburg, IN 47120
10{1 APR 30 A II: Ob
phone (812) 472-3527
RECEIVED fax (812) 472-3649
cell (404) 307-5903
April 25, 2012
Mr. Sean Conway
Board Chair Weld County Housing Authority
Weld County Government
PO Box 758
Greeley, CO 80632
Dear Mr. Conway,
Enclosed please find a copy of the Housing Authority of Weld County Audit
Report for the year ending December 31, 2011 . We are sending you a
Communication to those charged with Governance letter and a copy of this
report in order to copy with current auditing standards (specifically SAS
114 ) .
Thank you for this opportunity to be of service to you and the Housing
Authority of Weld County. Please do not hesitate to contact us concerning
this report or any other matter that may come to your attention. Feel free
to call at any time if there is anything that we can help you with.
We have certainly enjoyed working with your authority and look forward to
the opportunity of doing your audit again next year.
Sincerely,
Ielen
an E. SiSckels6eZ
Certified Public Accountant
JES : cl
Enclosures
e0V-v-v r ti\\C_1s\DL1
CO ' 1- \ a 2012-1186
Jean Sickels
Certified Public Accountant
8518 S Kays Chapel Rd
Fredericksburg, IN 47120
phone (812) 472-3527
fax (812) 472-3649
cell (404) 307-5903
April 25, 2012
Mr. Sean Conway
Board Chair Weld County Housing Authority
Weld County Government
PO Box 758
Greeley, CO 80632
Dear Mr. Conway,
I have audited the financial statement of the Housing Authority of Weld County for the
year ended December 31, 2011, and have issued my report thereon dated April 19, 2012.
Professional standards require that I provide you with the following information related
to my audit .
My Responsibilities under U.S. Generally Accepted Auditing Standards
As stated in my engagement letter dated January 4, 2012, my responsibilities as described
by professional standards, is to express an opinion about whether the financial statements
prepared by management with your oversight are fairly presented, in all material respects,
in conformity with U.S. generally accepted accounting principles. My audit of the
financial statements does not relieve you or management of your responsibilities.
Planned Scope and Timing of the Audit
I performed the audit according to the planned scope and timing previously communicated to
management in our meeting about planning matters on April 19, 2012 .
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. In
accordance with the terms of our engagement letter, I will advise management about the
appropriateness of accounting policies and their application. The significant accounting
policies used by the Housing Authority of Weld County are described in Note 1 to the
financials statements. No new accounting policies were adopted and the application of
existing policies was not changed during 2011 . I noted no transactions entered into by the
Organization during the year for which there is a lack of authoritative guidance or
consensus. There are no significant transactions that have been recognized in the
financial statements in a different period than when the transaction occurred.
Difficulties Encountered in Performing the Audit
I encountered no significant difficulties in dealing with management in performing and
completing my audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements
identified during the audit, other than those that are trivial and communicate them to the
appropriate level of management. Management has corrected all such misstatements. In
addition, none of the misstatements detected as a result of the audit procedures and
corrected by management were material, either individually or in the aggregate, to the
financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management
as a financial, accounting, reporting or auditing matter, whether or not resolved to our
satisfaction that could be significant to the financial statements or the auditor' s
report. I am pleased to report that no such disagreements arose during the course of my
audit.
Management Representations
I have requested certain representations form management that are included in the
management representation letter dated April 19, 2012.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principal to the Organization' s
financial statements or a determination of the type of auditor' s opinion that may be
expressed on those statements, my professional standards require the consulting accountant
to check with us to determine that the consultant has all the relevant facts. To my
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
I generally discuss a variety of matters, including the application of accounting
principals and auditing standards, with management each year prior to retention as the
Organization' s auditors. However, these discussions occurred in the normal course of our
professional relationship and our responses were not a condition to our retention.
This report is intended solely for the information and use of the Authority's management
and the Department of Housing and Urban Development and is not intended to be and should
not be used by anyone other than these specified parties.
Sincerely
Jean E. Sickels
Certified Public Accountant
JES:cl
Enclosures
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HOUSING
AUTHORITY OF
WELD
COUNTY
' AUDITED FINANCIAL STATEMENTS
' Greeley, Colorado
December 31,2011
/CCM e5-14e/6
Certified Public Accountant
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8518 S Kays Chapel Rd 870 Cinderella Court
Fredericksburg, IN 47120 Decatur, GA 30033
812-472-3527 404-297-9881
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HOUSING AUTHORITY
OF WELD COUNTY
' Greeley, Colorado
DECEMBER 31 , 2011
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TABLE OF CONTENTS
' Page
Independent Auditor' s Report 1
Management' s Discussion and Analysis i
1 FINANCIAL STATEMENTS
' Statement of Net Assets 2
Statement of Revenues, Expenses, and Changes in Net Assets 3
Statement of Cash Flows 4
Notes to Financial Statements 6
' SUPPLEMENTAL FINANCIAL INFORMATION
Combining Schedule of Program Net Assets 15
' Combining Schedule of Program Revenue, Expenses and Changes In Net Assets 16
Schedule of Expenditures of Federal Awards 17
' OTHER 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 Government Auditing Standards 18
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 19
Schedule of Findings and Questioned Costs 21
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Jean Sickels
Certified Public Accountant
I 8518 S Kays Chapel Rd
Fredericksburg, IN 47120
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INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Housing Authority of Weld County
' 903 6th Street
Greeley, CO 80631
Report on the Financial Statements
II have audited the accompanying financial statements of the Housing Authority of Weld County
("the Authority") which comprise the statement of net assets as of December 31, 2011, and the
related statements of revenues, expenses and changes in net assets, and cash flows for the
Iyear then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States
of America; this includes the design, implementation and maintenance of internal control
Irelevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
IMy responsibility is to express an opinion 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
IAuditing 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 from material misstatement.
IAn audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor' s
judgment, including the assessment of the risks of material misstatement of the financial
Istatements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Authority's preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
IAuthority' s internal control. Accordingly, I express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
II believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my audit opinion.
IOpinion
In my opinion, the financial statements referred to above present fairly, in all material
Irespects, the financial position of the Housing Authority of Weld County as of December 31,
2011, and the changes in financial position and cash flows thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
Report on Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the '
Management' s Discussion and Analysis on pages i through v be presented to supplement the
financial statements. Such information, although not a part of the financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the 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 financial statements, and other knowledge I
obtained during my audit of the 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. ,
Report on Other Supplementary Information
My audit was conducted for the purpose of forming an opinion on the Authority' s financial '
statements as a whole. The accompanying Schedule of Expenditures of Federal Awards, as
required by the U.S. Office of Management and Budget Circular A-133, Audits of States Local
Governments and Non-Profit Organizations and the other supplemental information as listed in '
the table of contents are presented for purposes of additional analysis and are 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 t
generally accepted in the United States of Americ I my opinion, the information is fairly
stated in all material respects in relation to t e fi ncial stateme is as a whole.
Clet) (4; I
ertified Public Accountant
Fredericksburg, Indiana '
April 19, 2012
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' HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2011
The discussion and analysis of the Housing Authority of Weld County (the Authority) financial
performance provides an overall review of the Authority's financial activities for the year ended
' December 31, 2011. The intent of this discussion and analysis is to look at the Authority's financial
performance as a whole. Readers should also review notes to the financial statements and the financial
statements to broaden their understanding of the Authority's financial performance.
Financial Highlights
' The primary focus of the Authority's financial statements is on its single enterprise fund, which
includes programs administered by the Housing Authority of Weld County. The Authority operates
under three activities: 1) Housing Choice Vouchers program, 2) Emergency Shelter Grant program,
Iand 3) a Consolidated Other Business program.
These programs are described as follows:
• Housing Choice Vouchers - Section 8 —Voucher payment assistance from the
Department of Housing &Urban Development (HUD) that provides support to low
' income families in need of sanitary, safe, and modest rental housing. Currently the
Authority has authorization for 427 units. HUD provides funding for these payments on
' a pre-determined annual basis and also pays the Authority an administrative fee to cover
its operating costs.
' • Emergency Shelter Grant—The Authority acts as a pass through in providing assistance
to four local shelters offering short term housing support for transitional needy families.
This funding generally comes through Federally supported grants based on submission
of grant requests.
• Consolidated Other Business—This activity provides support through a rehabilitation
' program to assist low income homeowners. The program is targeted to making home
improvement loans for families whose income falls below the 80%AMI (Area Median
Income).
Using the basic Financial Statements
The Basic Financial Statements consist of Management Discussion and Analysis (this section) and a
series of audited financial statements with notes. The audited statements are organized so that the
reader can review the Housing Authority of Weld County as an entire operating entity. The statements
then proceed to provide an increasingly detailed look at specific financial activities.
The overview of the statements is provided to give information about the Authority's overall financial
condition. They are comprised of the following: 1) the Statement of Net Assets; and 2) the Statement
of Activities; and 3) Statement of Cash Flows; and 4) Notes to the Financial Statements
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HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year ended December 31, 2011
Financial Analysis of the Authority as a Whole
The Authority's net assets were $2,582,093 at December 31, 2011 and $2,464,320 at December 31,
2010, representing an increase of$117,773 or 4.8 percent from 2010. The prior year's increase in net
assets was $90,550 or 3.8 percent. Net income for the year 2011 was $117,773 compared to net
income of$90,550 for 2010, representing an increase of$27,223. The increase in net income is due to
an increase from HUD grants and contributions of$34,304, a decrease in interest and other income of
$84,450, and a decrease in total expenses of$77,369. Refer to page 5 of this section for further
review. '
The financial statements report information about the Authority as a whole using accounting methods
similar to those used by private businesses. The statements of net assets include all of the entity's
assets, net of liabilities. The Authority's revenues and expenses are accounted for using the accrual
method of accounting, determined when revenues are earned and costs incurred.
The financial statements report the Authority's net assets and how they have changed. The change in '
net assets is important because it informs the reader that for the Authority as a whole, the financial
position of the Authority has improved or diminished. The causes of these changes may be the result
of various factors including facility conditions, financial, governmental and local economic or
environmental conditions.
Net assets may serve over time as a useful indicator of an organization's financial position. In the case
of the Authority, assets exceeded liabilities by $2,582,093 at December 31, 2011. Net assets are
comprised of the following components: '
• Current— Consists of unrestricted cash of$1,591,696, restricted cash of$370,468,
receivables of$38,359, and prepaid expenses of$6,691. '
• Capital assets - $11,856 - Consists of equipment, net of accumulated depreciation and
related debt., if any.
• Other assets—Comprised of mortgage loans of$643,835, used to rehab existing
housing or acquire a home for first time buyers.
Statement of Activities and Changes in Net Assets reports the operating and non-operating revenues,
and operating and non-operating expenses for the year ended December 31, 2011. These increases (or
decreases)result in the Change in Net Assets for the year.
• Total revenues decreased $50,146 or 1.7.0% during the year from $2,907,688 to
$2,857,542.
• Total expenses decreased $77,369 or 2.7% during the year from $2,817,138 to
$2,739,769.
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I HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2011
ICondensed Statement of Net Assets
2011 2010
I Assets:
Cash—unrestricted $ 1,591,696 $ 1,483,916
Cash—restricted 370,468 349,011
I Accounts receivable, net 38,359 71,687
Prepaid expense 6,691 5,550
Net capital assets 11,856 12,989
I Mortgages & notes receivable 643,835 654,660
Total Assets $__2,662,905 $ 2,577,813
Liabilities:
I Current $ 50,815 $ 69,901
Non-current 29,997 43,592
Total Liabilities $ 80 812 $ 113,493
INet Assets:
Invested in capital assets $ 11,856 $ 12,989
IRestricted 341,306 329,410
Unrestricted 2,228,931 2,121,921
Net Assets $ 2,5_82,02 $ 2,464,320 I The Statement of Net Assets reflects increase in total assets and a decrease in liability positions due to
changes in program revenues and expenses. A summary of changes in net assets is as follows:
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Condensed Statement of Activities and Changes in Net Assets
I2011 2010
Program Revenue:
I Operating grants & contributions $ 2,760,855 $ 2,726,551
Investment income 9,258 10,426
Other revenue 87,429 170,711
ITotal Revenue 2,857,542 2,907,688
Expenses:
I Administration 324,908
2 359,347
Housing assistance payments ,392,007 2,402,066
Other expenses 22,854 55,725
' Total Expenses 2,739,769 2,817,138
Change in Net Assets: 117,773 90,550
INet Assets - Beginning 2,464,320 2,373,770
Net Assets - Ending $ 2,58292 $_Z,41,3_20
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HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2011
Reporting the Authority's Most Significant Funds '
Proprietary Funds —Proprietary funds have historically operated as enterprise funds using the same
basis of accounting as business-type activities; therefore, these statements will essentially match the
information provided in the statements for the Authority as a whole. As the Authority has only one
fund, the narrative description of the changes in the government-wide financial statements is the same
as those that would be presented on a fund level.
Results of Operations - Significant changes for revenues and expenses for 2011 are highlighted
below:
• Total revenues decreased $50,146 while total expenses decreased $77,369, resulting in
net income for the year of$117,773 compared to net income of$90,550 in 2010.
• HUD housing grants increased by$34,304 to $2,760,855 from $2,726,551 in 2010.
• Other revenues (including charges for services) decreased $84,450 from $170,711 in
2010 to $96,687 for 2011.
• Administrative expenses decreased $34,439 to $324,908 from $359,347 in 2010.
• Housing Assistance Payments (HAP) expenses decreased $110,059 from $2,402,066 for
2010 to $2,292,007 in 2011. I
The net results of 2011 activities were an increase to Net Assets of$117,773. Additional information
is available in the combining schedule of program revenues of the financial statements.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets - At the end of 2011, the Authority had $11,856 invested in net capital assets (See
below). There is no debt related to these assets.
Balance Balance
1/1/2011 Additions Retirements 12/31/2011
Furniture and Equipment $ 42,039 $ 0 $ 0 $ 42,039
Less: Acc Depreciation (29,050) (1,133) 0 (30,183)
Net Capital Assets $ 12,989 $ (1,133) $ 0 $ 11,856 I
Additional information on the Authority's capital assets can be found in Foot Note A, page 8, of the
financial statements.
The Future of the Authority - The Authority is anticipating continued operational activities at the
same level as previous years.
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HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2011
' Request for Information
The financial report is designed to provide information for regulatory reporting to federal and state
agencies and those with an interest in the Authority's finances. Questions concerning this or any
additional information should be addressed to:
' Tom Teixeira, Executive Director
Greeley/Weld Housing Authorities
903 6` St., PO Box 130
' Greeley, CO 80632-0130
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IFINANCIAL STATEMENTS
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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
STATEMENT OF NET ASSETS
DECEMBER 31, 2011
ASSETS
Current Assets
Cash and cash equivalents $ 1, 591, 696
Restricted cash and cash equivalents 370, 468
Accounts receivable, net 38, 359
Prepaid expenses 6, 691
Total Current Assets 2,007,214
Noncurrent Assets
Mortgages receivable 643, 835
Total Noncurrent Assets 643,835
Capital Assets
Depreciable capital assets, net 11, 856
Total Capital Assets 11,856
TOTAL ASSETS 2,662,905
LIABILITIES
Current liabilities
Accounts payable 751
Accrued liabilities 11,832
Payable from restricted cash and
and cash equivalents:
Family self sufficiency escrow 29, 163
Deferred revenue 9, 069
Total Current Liabilities 50,815
Noncurrent Liabilities
Other noncurrent liabilities 29, 997
Total Noncurrent Liabilities 29,997
Total Liabilities 80,812
NET ASSETS
Invested in capital assets 11,856
Restricted net assets 341, 306
Unrestricted net assets 2, 228, 931
Total Net Assets
$ 2,582,093
The accompanying notes are an integral part of these financial statements.
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HOUSING AUHTORITY OF WELD COUNTY
' Greeley, Colorado
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
' FOR THE YEAR ENDED DECEMBER 31, 2011
OPERATING REVENUES
' Other income $ 87, 429
ITOTAL OPERATING REVENUE 87,429
OPERATING EXPENSES
IAdministrative 324, 908
Ordinary maintenance and operation 33,294
General expense (11, 573)
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Housing assistance payments 2, 392, 007
Depreciation expense 1, 133
ITOTAL OPERATING EXPENSES 2,739,769
OPERATING INCOME (LOSS) (2,652,340)
' NONOPERATING REVENUES
Federal operating grants 2,760, 855
IInterest income 9, 258
TOTAL NONOPERATING REVENUES 2,770,113
ICHANGE IN NET ASSETS 117,773
ITOTAL NET ASSETS - BEGINNING OF YEAR 2, 464, 320
TOTAL NET ASSETS - END OF YEAR $ __ 2_,582,093
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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from tenants and other deposits $ 87, 429
Payments to vendors (193, 089)
Payments to landlords (2, 392, 007)
Payments to employees (154, 034)
Net Cash Used by Operating Activities (2,651,701)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Federal operating grants received 2, 760, 855
Net Cash From Noncapital Financing Activities 2,760,855
CASH FLOWS FROM INVESTING ACTIVITIES
Reduction in mortgages receivable 10, 825
Interest income 9,258
Net Cash From Investing Activities 20,083
Net Increase (Decrease) in Cash and Cash Equivalents 129,237 '
Cash - Beginning of year 1,832,927
Cash - End o£ year $ 1,962,164
Reconciliation of Cash and Cash Equivalents:
Deposits in bank $ 1, 591, 696
Restricted cash 370, 468
Total Cash and Cash Equivalents $ 1,962,164
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HOUSING AUHTORITY OF WELD COUNTY
IGreeley, Colorado
STATEMENT OF CASH FLOWS
IFOR THE YEAR ENDED DECEMBER 31, 2011
(CONTINUED)
IRECONCILIATION OF OPERATING (LOSS) TO
NET CASH USED BY OPERATING ACTIVITIES
' Operating income (loss) $ (2, 652, 340)
Adjustments to reconcile net operating income to net cash
I Provided by operating activities:
Depreciation 1, 133
Changes in operating assets and liabilities:
I (Increase) Decrease in:
Accounts receivable 33, 328
Prepaid expenses (1, 141)
I Increase (Decrease) in:
Accounts payable (16, 518)
Accrued liabilities (16, 163)
I Deferred revenue 0
Net Cash Flows Provided (Used)
by Operating Activities $ __ (2651701)I
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' The accompanying notes are an integral part of these financial statements
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011
NOTE A - Summary of Significant Accounting Policies and Organization: '
The financial statements of the HOUSING AUTHORITY OF WELD COUNTY ("the
Authority") have been prepared in conformity with generally accepted
accounting principles (GAAP) as applied to government units . The
Government Accounting Standards Board (GASB) is the accepted standard-
setting body for establishing governmental accounting and financial
reporting principles.
The Housing Authority of Weld County is a political subdivision both
corporate and politic which was established under the provision of Colorado
Statutes, to provide adequate housing at rents which persons of low-income
can afford in areas where there exists a shortage. To accomplish this
purpose, the Authority has entered into annual contributions contracts with
the U.S. Department of Housing and Urban Development (HUD) to be the
Administrator of a Section 8 Housing Assistance Payments Program under
Annual Contributions Contract CO-090. The financial statements also
include the Business Activities and the Emergency Shelter Grants Program.
Reporting Entity
The entity is a public corporation, legally separate, fiscally independent,
and governed by the Board of Commissioners. As required by generally
accepted accounting principles, these financial statements present the
financial position and results of operations of the Housing Authority of
Weld County, a primary government. There are no component units to be
included herewith, but this report does include all programs which are
controlled by the entity' s governing body.
The financial statements of the Housing Authority of Weld County include
the following:
At December 31, 2011, the Housing Authority has 427 units in management.
Project Units
Housing Choice Vouchers 427 '
Basis of Presentation
The Authority' s financial statements are accounted for on the flow of
economic resources measurement focus using the accrual basis of accounting.
Revenues are recognized when they are earned, and expenses are recognized
when incurred. Pursuant to GASB Statement No. 20, Accounting and Financial
Reporting for Proprietary Funds and Other Governmental Entities that use
Proprietary Fund Accounting, the Authority applies all applicable GASB
pronouncements as well as FASB Statements and Interpretations, APB
Opinions, and ARB' s issued on or before, November 30, 1989, unless those
pronouncements conflict with or contradict GASB pronouncements.
In accordance with uniform financial reporting standards for HUD housing
programs, the financial statements are prepared in accordance with U.S.
generally accepted accounting principles (GAAP) as applicable to special
purpose governments engaged only in business type activities.
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HOUSING AUTHORITY OF WELD COUNTY
' Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011
' (Continued)
NOTE A - Summary of Significant Accounting Policies: (Continued)
This special purpose government engaged in activities similar to business
activities uses an enterprise fund to account for those operations that are
financed and operated in a manner similar to private business, or where the
' Board has decided that the determination of revenues earned, costs
incurred, and/or net income is necessary for management accountability.
The intent of the governing body is that the costs (expenses including
' depreciation) of providing services to the general public on a continuing
basis be financed or recovered primarily through user charges .
Generally accepted accounting principles for state and local governments
requires that resources be classified for accounting and reporting purposes
into the following three net asset categories:
' Invested in Capital Assets, Net of Related Debt - Capital assets, net of
accumulated depreciation and outstanding principal balances of debt
attributable to the acquisition, construction or improvement of those
assets.
Restricted - Net assets whose use by the Authority is subject to externally
imposed stipulations that can be fulfilled by actions of the Authority
pursuant to those stipulations or that expire by the passage of time. Such
assets include assets restricted for capital acquisitions and debt service.
The Authority has restricted funds totaling $370, 468 that represents excess
HAP grant funding provided by the Department of Housing & Urban Development
for the sole purpose of providing housing assistance payments (HAP) to
eligible individuals through the Housing Choice Voucher Program. The
requirements imposed by HUD represent a legally enforceable requirement
upon this program.
' Unrestricted - Net assets that are not subject to externally imposed
stipulations. Unrestricted net assets may be designated for specific
' purposes by action of management or the Authority Board or may otherwise be
limited by contractual agreements with an outside party.
Accounting Policies - The financial statements of the Authority have been
' prepared in conformity with generally accepted accounting principles (GAAP)
as applied to government units. The Government Accounting Standards Board
(GASB) is the accepted standard setting body for establishing governmental
' accounting and financial reporting principles.
Use of Enterprise Accounting The Authority presents its financial
statements using enterprise accounting, as allowed by governments.
' Although the Authority accounts for its programs using accounts for its
internal reporting, the Authority is considered to be a unified enterprise
fund for reporting purposes. Accordingly, the Authority uses the economic
' resources measurement focus and the related accrual basis of accounting.
Under the economic resources measurement focus, the Authority accounts for
all assets and liabilities. Under the accrual basis of accounting expenses
are recorded when the goods and services are received, irrespective of when
' paid for, and revenues are recorded as earned, irrespective of when cash is
received.
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS '
DECEMBER 31, 2011
(Continued)
NOTE A - Summary of Significant Accounting Policies: (Continued)
Budgets - Budgets are prepared on an annual basis for each major operating
program and are used as a management tool throughout the accounting cycle.
The capital fund budgets are adopted on a "project length" basis.
Budget compared to Actual presentation has been omitted because the
Authority does not annually adopt a legally authorized budget. The
Authority's budget is adopted by the Authority's board and approved by
HUD. This budget does not represent an appropriated budget that has been
signed into law or a non-appropriated budget authorized by constitution.
The Authority's budget represents budgetary execution and management by
its board and HUD; therefore, budgetary data and presentation is not
required.
Cash and Cash Equivalents - Deposits consist of checking accounts, saving
accounts and money market accounts and are stated at fair value. Deposits
are fully collateralized or vested in securities of the United States
Government and are identified specifically in the name of the Authority.
For the purposes of the Statement of Cash Flows, the Authority considers
all highly liquid cash deposits and cash equivalents with a maturity of
three months or less when purchased and non negotiable Certificates of
Deposit to be cash equivalents. There were no noncash investing, capital,
and financing activities during the year.
Tenant Receivables - Receivables for rentals and service charges are
reported at net of an allowance for doubtful accounts. The Housing
Authority Board takes monthly action as required to write off specific
uncollectable accounts receivable balances.
Prepaid - Prepaids represent payments made to vendors for services that
will benefit beyond December 31, 2011.
Inter-program Due From and Due To - During the course of its operations,
the Authority has inter-program transactions to finance operations and
provide services. Inter-program accounts receivable and payable have been
recorded to recognize transactions between programs for which the
applicable cash transfer had not been made as of the balance sheet date.
Inter-program accounts have been eliminated for financial statement
reporting purposes. The Housing Authority of the City of Greeley
Administrative Fund acts as the common pay master.
Capital Assets - Capital assets purchased are capitalized at the time of
purchase. Such assets are recorded at cost. The capitalization policy of
the Authority requires assets to be capitalized when their cost is $500.
Donated assets are recorded at fair market value at the date of donation.
Because developments and major capital repairs or improvements are
financed through cash advances from HUD, there are no capitalized interest
costs in current programs.
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HOUSING AUTHORITY OF WELD COUNTY
' Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011
(Continued)
NOTE A - Summary of Significant Accounting Policies: (Continued)
' Depreciation of property and equipment is computed by the straight-line
method based upon the estimated useful lives of the assets as follows:
' Class Life
Furniture, Equipment & Machinery 5-7 years
' Compensated Absences - Compensated absences are those absences for which
employees will be paid, such as vacation and sick leave. A liability for
compensated absences that is attributable to services already rendered and
' that are not contingent on a specific event that is outside the control of
the Authority and its employees, is accrued as employees earn the rights
to the benefits. Compensated absences that relate to future services or
t that are contingent on a specific event that is outside the control of the
Authority and its employees, are accounted for in the period in which such
services are rendered or in which such events take place.
Operating Revenues and Expenses - Operating revenues and expenses
generally result from providing and producing goods and/or services in
connection with providing low income housing programs. Operating expenses
include the cost of sales and services, administrative expenses and
' depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as non operating revenues and expenses.
' Restricted Assets - When both restricted and unrestricted resources are
available for use, it is the Authority' s policy to use unrestricted
resources first, then restricted resources as they are needed.
' Use of Estimates - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
' the reported amounts of assets and liabilities and disclosure of
contingent liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
' NOTE B - Deposits, Cash and Cash Equivalents, and Investments:
' 1. HUD Deposit Restrictions
HUD requires Authorities to invest excess HUD program funds in obligations
of the United States, certificates of deposit or any other federally
' insured Instruments.
HUD also requires that deposits of HUD program funds be fully insured or
' collateralized at all times. Acceptable security includes FDIC insurance
and the market value of securities purchased and pledged to the political
subdivision. Pursuant to HUD restrictions, obligations of the United
States are allowed as security for deposits . Obligations furnished as
1 security must be held by the Authority or with an unaffiliated bank or
trust company for the account of the Authority.
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS '
DECEMBER 31, 2011
(Continued)
NOTE B - Deposits, Cash and Cash Equivalents, and Investments: (Continued)
The Colorado Public Deposit Protection Act (PDPA) requires that all units
of local government deposit cash in eligible public depositories.
Eligibility is determined by state regulations. Amounts on deposit in
excess of federal insurance levels must be collateralized by eligible
collateral determined by the PDPA. The institution is allowed to create a
single collateral pool for all public funds held. The pool is to be
maintained by another institution or held in trust for all the uninsured
public deposits as a group. The market value of the collateral must be at
least equal to 102 percent of the uninsured deposits.
2. Risk Disclosures
Interest Rate Risk: As a means of limiting its exposure to fair value
losses arising from rising interest rates, the Authority' s investment
policy limits the Authority's investment portfolio to maturities not to
exceed two years at time of purchase. At December 31, 2011, the
Authority' s deposits and investments were not limited and all of which are
either available on demand or have maturities of less than two years.
Credit Risk: This is a risk that a security or a portfolio will lose some
or all of its value due to a real or perceived change in the ability of
the issuer to repay its debt. The Authority's investment policy is that
none of its total portfolio may be invested in securities of any single
issuer, other than the US Government, its agencies and instrumentalities.
Custodial Credit Risk: This is the risk that in the event of the failure
of the counterparty, the Authority will not be able to recover the value
of its investments or collateral securities that are held by the
counterparty. All of the Authority's investments in securities are held
in the name of the Authority. The Authority' s custodial agreement policy
prohibits counterparties holding securities not in the Authority' s name.
The carrying amounts of the Authority's cash deposits were $1, 962, 164 at
December 31, 2011 . Bank and investment balances before reconciling items
were $1, 962, 164 at that date, the total amount of which was collateralized
or insured with securities held by an unaffiliated banking institution in
the Authority' s name.
Deposits consist of the following:
Checking, money market and saving accounts $ 1, 962, 164
Restricted cash consists of tenant Section 8 HAP reserves and escrow
accounts.
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HOUSING AUTHORITY OF WELD COUNTY
' Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011
I (Continued)
NOTE C - Accounts Receivable:
IAccounts receivable at December 31, 2011, consist of the following:
Fraud Recovery - Net of allowance for doubtful
I accounts of $13, 781 $ 10, 708
Current portion of notes receivable 22, 153
Accounts receivable - related party (Housing Authority
of the City of Greeley) 5, 498
ITotal $ 38, 359
INOTE D - Prepaid Expenses:
Prepaid expenses at December 31, 2011, consist of the following:
IPrepaid expenses $ 6, 691
NOTE E - Notes Receivable:
INotes Receivable at December 31, 2011 consists of the following:
Fort Lupton Housing Partners $ 300, 000
I Catholic Charities and Community Services 225, 925
Catholic Charities and Community Services 70, 063
Weld County Farm Labor 70, 000
INotes receivable 665, 988
Current portion 22, 153
ILong term portion $ 643, 835
I The Fort Lupton Housing Partners note has a 3% interest rate based upon
the cash flow. The original amount of the note is $300, 000.
The Catholic Charities notes have a 3% interest rate. The first note had
I an original date of February 11, 1999 with an original balance of $300, 000
and a final due date of February 1, 2033. The second note had an original
date of October 18, 2001 with an original balance of $100, 000. The final
I due date is August 1, 2024 .
The Weld County Farm Labor note had an original balance of $100, 000 and
has 0% interest .
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS '
DECEMBER 31, 2011
(Continued)
NOTE F - Capital Assets:
A summary in changes in capital assets is as follows:
Beginning Ending
Balance Balance
1/1/11 Additions Retirements 12/31/11
Furniture & Equipment $ 42, 039 $ 0 $ 0 $ 42, 039
Less: Accumulated
Depreciation ( 29, 050) ( 1, 133) 0 ( 30, 183)
Capital Assets, Net $ 12, 989 $ ( 1, 133) $ 0 $ 11, 856
Depreciation expense of $1, 133 was incurred during the year.
NOTE G - Accounts Payable:
Accounts payable at December 31, 2011, consist of the following:
Vendors' accounts payable $ 751 '
NOTE H - Accrued Liabilities:
Accrued liabilities at December 31, 2011, consist of the following: I
Accrued wages/payroll taxes $ 1,794
Accrued compensated absences 10, 038
Total $ 11, 832
NOTE I - Deferred Revenue:
Deferred Revenue at December 31, 2011, consists of the following:
Prepaid grant revenue $ 9, 069
NOTE J - Other Noncurrent Liabilities:
Other noncurrent liabilities at December 31, 2011, consist of the following:
1/01/11 Additions Deletions 12/31/11
Non-current portion of accrued
compensated absences $ 43, 592 $ 0 $ 13, 595 $ 29, 997
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HOUSING AUTHORITY OF WELD COUNTY
I Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011
I (Continued)
NOTE K - Federal Operating Grants:
I HUD contributed the following operating subsidies approved in the operating
budgets under the Annual Contributions Contracts:
I Housing Choice Vouchers $ 2, 656, 855
Emergency Shelter Grants Program 104, 000
I
Total $ 2, 760, 855
NOTE L - Commitments and Contingencies:
I
Litigation: At December 31, 2011, the Authority was not involved in any
threatened litigation.
Examinations: The Authority is subject to possible examinations made by
I federal and state authorities who determine compliance with terms,
conditions, laws, and regulations governing other grants given to the
Authority in the current and prior years. There were no examinations during
Ithe year ended December 31, 2011.
Grant Disallowances: Amounts received or receivable from HUD are subject to
audit and adjustment by HUD. Any disallowed claims, including amounts
I already collected, may constitute a liability of the Authority. The
amounts, if any, of expenditures which may be disallowed by the grantor
cannot be determined at this time although the Authority expects such
Iamounts, if any, to be immaterial.
NOTE M - Pension Plan:
I The Authority provides pension benefits for all its full-time employees
through an Individual Retirement Account (IRA SEP) . The account is
administered by Mutual of America. The Housing Authority Board is
I authorized to establish or amend the benefits. Benefits depend solely on
amounts contributed to the account plus investment earnings. Employees are
eligible to participate from the date of employment. The Authority
contributes an amount equal to 3% of the employee's base salary each month.
I The Employees are eligible to participate in the Pension Plan upon the
first pay period. The Authority's contributions for each employee (and
interest allocated to the employee's account) are fully vested immediately.
I The Authority' s total payroll in fiscal year 2011 was $118, 545. The
Authority made the required contributions, amounting to $3, 235 from the
Authority, and $5, 320 from the employees.
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS I
DECEMBER 31, 2011
(Continued)
NOTE N - Risk Management:
The Authority is exposed to various risks of losses related to torts; theft
of, damage to and destruction of assets; errors and omissions; injuries to
employees; and natural disasters. The Authority carries commercial
insurance coverage for these risks to the extent deemed prudent by
Authority management, which includes public officials, tenant
discrimination, workman's compensation, flood, property, and auto
insurance. Settled claims have not exceeded this commercial coverage in
any of the past 3 years.
NOTE 0 - Economic Dependency:
The Authority receives approximately 97% of its revenues from HUD. If the
amount of revenues received from HUD falls below critical levels, the
authority' s operations could be adversely affected.
NOTE P - Contingencies - Taxpayer's Bill of Rights:
In November, 1992, the voters of the State of Colorado approved an
amendment to the states constitution limiting the amount of revenue which
may be spent or retained by Colorado governmental entities. The amendment
is in effect for most governmental entities for the years beginning after
1992, but exempts "enterprise" funds and activities from the limitations.
The Board of Commissioners of the Authority believes it is exempt from the
provisions of the Taxpayer' s Bill of Rights because it is an "enterprise"
(a business operation able to issue its own revenue bonds and receiving
less than 10% of its revenues from state and local grants) as defined in
the constitutional amendment. The board also believes it is not subject to
the provisions of TABOR because the governing board is not an elected
board, does not have an electoral constituency, and does not have the power
to impose taxes which are all the basic operational requirements of TABOR.
However, many provisions of the TABOR Amendment are complex and subject to
further interpretation and will require judicial interpretation.
NOTE Q - Related Party:
The Authority is a part of a consortium with the Housing Authority of the
City of Greeley. The Authority allocates the appropriate expenses to these
entities and recovers regular reimbursement for services rendered.
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SUPPLEMENTAL FINANCIAL INFORMATION
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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
COMBINING SCHEDULE OF PROGRAM NET ASSETS
DECEMBER 31, 2011
C0090
Housing
Choice
Vouchers
ASSETS
Current Assets
Cash and cash equivalents $ 529, 026
Restricted Cash and cash equivalents 370, 468
Accounts receivable, net 26, 206
Prepaid expenses 1, 542
Total Current Assets _,. 927,242
Noncurrent Assets
Mortgages receivable _ 60, 000
Total Noncurrent Assets 60,000
Capital Assets I
Depreciable capital assets, net 11, 856
Total Capital Assets 11,856
TOTAL ASSETS 999,098
LIABILITIES '
Current liabilities
Accounts payable 751
Accrued liabilities 11, 832
Payable from restricted cash and
and cash equivalents:
Family self sufficiency escrow 29, 163
Deferred revenue 0
Total Current liabilities 41,746
Noncurrent Liabilities
Other noncurrent liabilities 29, 997
Total Noncurrent Liabilities 29,997
Total Liabilities 71,743
NET ASSETS
Invested in capital assets 11, 856
Restricted net assets 341, 306
Unrestricted net assets 574, 193
Total Net Assets $ 927355
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I Emergency
Shelter Business
Grant Activities Total
I
$ 3, 920 $ 1, 058, 750 $ 1, 591, 696
I0 0 370, 468
0 12, 153 38, 359
5, 149 0 - 6, 691
I9,069 1,070,903 2,007,214
I0 583, 835 643, 835
0 583,835 643,835
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o 0 11,856
I0 _ 0 11,856
9,069 1,654,738 2,662,905
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0 0 751
0 0 11, 832
I0 0 29, 163
9, 069 0 9, 069
I9,069 0 50,815
I0 0 29, 997
0 0 29,997
9,069 0 80,812
'
0 0 11, 856
I0 0 341, 306
0 1, 654, 738 2, 228, 931
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$._ --. -. 0_ $___1.x,738 $ 2,5821093
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HOUSING AUHTORITY OF WELD COUNTY
•
Greeley, Colorado
COMBINING_ $c3EDULE OF PROGRAM REVENUES, EXPENSES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2011
00090
Housing
Choice
Vouchers
OPERATING REVENUES
Other income $ 29,216
TOTAL OPERATING REVENUE 29,216
OPERATING EXPENSES
Administrative 216, 311
Ordinary maintenance and operation 0
General expense (11, 573)
Housing assistance payments 2,392, 007
Depreciation expense 1, 133
TOTAL OPERATING EXPENSES 2,597,878
OPERATING INCOME (LOSS) (2,568,662)
NONOPERATING REVENUES (EXPENSES) I
Federal operating grants 2, 656, 855
Interest income 362 '
TOTAL NONOPERATING REVENUES 2,657,217
CHANGE IN NET ASSETS 88,555
TOTAL NET ASSETS - BEGINNING OF YEAR 838, 800
TOTAL NET ASSETS - END OF YEAR $ 927,355
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IEmergency
Shelter Business
' Grant Activities Total
$ 0 $ 58, 213 $ 87, 429
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0 58,213 87,429
I104, 000 4, 597 324, 908
0 33, 294 33, 294
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0 0 (11, 573)
0 0 2, 392, 007
0 0 1, 133
I104,000 37,891 2,739,769
(104,000) 20,322 (2,652,340)
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104, 000 0 2,760, 855
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0 8, 896 9, 258
104,000 8,896 2,770,113
I0 29,218 117,773
0 1, 625, 520 2, 464, 320 I $__ 0 $ _1,65738 $__. 2,582,093
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS '
FOR THE YEAR ENDED DECEMBER 31, 2011
ANNUAL PROGRAM
CONTRIBUTION AND CFDA
CONTRACT ASSISTANCE TYPE NUMBER AWARD EXPENDITURES
U. S. DEPARTMENT OF HUD
Emergency Shelter Grants
Program 14 .231 $ 104, 000 $ 104, 000
CO-090 Section 8 Housing Choice
Voucher Program 14 . 871 2, 656, 855 2, 656, 855
TOTAL FEDERAL FINANCIAL ASSISTANCE $ 2,760,855 $ 2,760,855 '
Notes to Schedule of Expenditures of Federal Awards
Note 1 - The Schedule of Expenditures of Federal Awards is presented on the accrual
basis of accounting as described in Note A.
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I OTHER REPORTS
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Jean Sickels
Certified Public Accountant
8518 S Kays Chapel Rd
Fredericksburg, IN 47120
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING ON COMPLIANCE
AND ON OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Housing Authority of Weld County
903 6th Street
Greeley, CO 80631
I have audited the financial statements of the Housing Authority of Weld County ("the Authority")
as of and for the year ended December 31, 2011, and have issued my report thereon dated April 19,
2012, which included a disclaimer of opinion on Management's Discussion and Analysis. 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.
Internal Control Over Financial Reporting
In planning and performing my audit, I considered the Housing Authority of Weld County's internal
control over financial reporting as a basis for designing my 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 Weld County' s internal control over financial
reporting. Accordingly, I do not express an opinion on the effectiveness of the Housing Authority
of Weld County' 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
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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Housing Authority of Weld County's
financial statements are free of material misstatement, I performed tests of its compliance with
certain provision 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 Board of Commissioners, Management,
and others within the Authority and is not intended to be and should not be used by anyone other than
these specified parties.
Sege:
e tified Public Acc
Fredericksburg, Indiana
April 19, 2012
18 '
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Jean Sickels
ICertified Public Accountant
8518 S Kays Chapel Rd
IFredericksburg, IN 47120
•
REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT
I AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
INDEPENDENT AUDITOR' S REPORT
IBoard of Commissioners
Housing Authority of Weld County
903 6th Street
' Greeley, CO 80631
Compliance
I have audited the compliance of the Housing Authority of Weld County with the types of
IIcompliance requirements described in the OMB Circular A-133 Compliance Supplement that could
have a direct and material effect on each of the Housing Authority of Weld County' s major
federal programs for the year ended December 31, 2011 . The Housing Authority of Weld
ICounty'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 the Housing Authority of Weld County' s management. My
Iresponsibility is to express an opinion on the Housing Authority of Weld County' s compliance
based on my audit.
I conducted my audit of compliance in accordance with auditing standards generally accepted
Iin 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
Ireasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the Housing Authority
Iof Weld County' s compliance with those requirements and performing such other procedures as I
considered necessary in the circumstances. I believe that my audit provides a reasonable
basis for my opinion. My audit does not provide a legal determination on the Housing
Authority of Weld County' s compliance with those requirements.
IIn my opinion, the Housing Authority of Weld County complied, in all material respects, with
the compliance requirements referred to above could have a direct and material effect on each
of its major federal programs for the year ended December 31, 2011.
IInternal Control Over Compliance
Management of the Housing Authority of Weld County is responsible for establishing and
maintaining effective internal control over compliance with requirements of laws,
Iregulations, contracts and grants applicable to federal programs. In planning and performing
my audit, I considered the Housing Authority of Weld County' 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
Ion compliance and to test and report on internal control over compliance in accordance with
OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, I do not express an opinion on the
' effectiveness of the Housing Authority of Weld County' s internal control over compliance.
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Internal Control Over Compliance (Continued) I
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 a 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 the Board of Commissioners,
Management, and others within the Authority and is not intended to be and should not be used
by anyone other than these specified parties.
1
ertified Public Accountant I
Fredericksburg, Indiana
/
April 19, 2012
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
IDECEMBER 31, 2011
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
ISECTION I - SUMMARY OF AUDITOR' S RESULTS
1 FINANCIAL STATEMENTS
Type of auditor' s report issued: Unqualified
IInternal control over financial reporting:
- Material weakness (es) identified? Yes X no
- Significant deficiencies identified that are
not considered to be material weaknesses? Yes X none reported I Noncompliance material to financial statements
noted? Yes X no
IFEDERAL AWARDS
Internal control over major programs:
I -
Material weakness(es) identified? yes X no
- Significant deficiencies identified that are
not considered to be material weakness (es) ? yes X none reported
Type of auditor' s report issued on compliance
I
for major programs: Unqualified
IllAny audit findings disclosed that are required
to be reported in accordance with section 510 (a)
of Circular A-133? yes X no
Identification of major programs:
I
CFDA Number Name of Federal Program
14 . 871 Housing Choice Vouchers
I Dollar threshold used to distinguish
between type A and type B programs: $ 300, 000
Auditee qualified as low-risk auditee? X yes no
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SECTION II - FINANCIAL STATEMENT FINDINGS
IThere were no Financial Statement findings.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
IThere are no Federal Award findings.
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
DECEMBER 31, 2011 1
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued) 1
PRIOR YEAR FINDINGS
There were no prior year findings.
CURRENT YEAR FINDINGS I
There are no current year findings.
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