HomeMy WebLinkAbout20111125 Jean Sickels
Certified Public Accountant
8518 S Kays Chapel RdY2
Fredericksburg, IN 47120
phone (812) 472-3527
fax (812) 472-3649
cell (404) 307-5903
April 22, 2011
Ms . Barbara Kirkmeyer
Board Chair Lewisburg Housing Authority
Weld County Government
PO Box 758
Greeley, CO 80632
Dear Ms . Kirkmeyer,
Enclosed please find a copy of the Housing Authority of Weld County Audit
Report for the year ending December 31, 2010 . 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) . Please note that there is a management letter which is located at the
back of the audit report .
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,
Cerarri
SO64.
Jean E. Sic
Certified Public Accountant
JES : cl
Enclosures
2011-1125
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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 22, 2011
Ms. Barbara Kirkmeyer
Board Chair Lewisburg Housing Authority
Weld County Government
PO Box 758
Greeley, CO 80632
Dear Ms. Kirkmeyer,
I have audited the financial statement of the Housing Authority of Weld County for the
year ended December 31, 2010, and have issued my report thereon dated April 22, 2011.
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, 2011, 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 22, 2011.
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 2010. 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 22, 2011.
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,
5cArk,
Jean E. Sick
Certified Public Accountant
JES:cl
Enclosures
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HOUSING
AUTHORITY OF
WELD COUNTY
AUDITED FINANCIAL STATEMENTS
Greeley,Colorado
December 31,2010
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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
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Greeley , Colorado
' DECEMBER 31 , 2010
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TABLE OF CONTENTS
Page
Independent Auditor' s Report 1
Management's Discussion and Analysis i
' 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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II Jean Sickels
Certified Public Accountant
I 8518 S Kays Chapel Rd
Fredericksburg, IN 47120
IINDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Housing Authority of Weld County
II903 6th Street
Greeley, CO 80631
I have audited the accompanying financial statements of the Housing Authority of Weld County ("the
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Authority") as of and for the year ended December 31, 2010 as listed in the table of contents.
These financial statements are the responsibility of the Authority's management. My 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 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
Iare 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.
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In my opinion, the financial statements referred to above present fairly, in all material respects,
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the financial position of the Housing Authority of Weld County as of December 31, 2010, 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.
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In accordance with Government Auditing Standards, I have also issued my report dated April 22, 2011
on my consideration of the Housing Authority of Weld County' s internal control over financial
reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts
and grant agreements and other matters. The purpose of that report is to describe the scope of my
' testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards, and should be considered in assessing the results of my audit.
illThe Management's Discussion and Analysis on pages i through v, is not a required part of the basic
financial statements but is supplementary information required by accounting principles generally
accepted in the United States of America. I have applied certain limited procedures, which
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consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, I did not audit the information
and express no opinion on it.
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My audit was conducted for the purpose of forming an opinion on the financial statements of the
Housing Authority of Weld County. The accompanying Schedule of Expenditures of Federal Awards
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
Itable of contents are presented for purposes of additional analysis and are not a required part of
the financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in my opinion, is fairly stated, in all material
respects, in relation to the basic financial state s taken as a whole.
' f e , c t
I Fredericksburg, Indiana
April 22, 2011
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HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31,2010
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, 2010. 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,
and 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, 2010
Financial Analysis of the Authority as a Whole
The Authority's net assets were $2,464,320 at December 31, 2010 and $2,373,770 at December 31,
2009, representing an increase of$90,550 or 3.8 percent from 2009. The prior year's decrease in net
assets was $160,237 or 6.8 percent. Net income for the year 2010 was $90,550 compared to net loss of
$160,237 for 2009, representing a net change of$250,787. The increase in net income results is due to
an increase in HUD grants and contributions of$198,669, an increase in other and interest income of
' $113,686, and an increase in total expenses of$61,568. Further review is provided on page 5 of this
section.
' 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 $2,464,320 at December 31, 2010. Net assets are
comprised of the following components:
' • Current — Consists of unrestricted cash of $1,483,916, restricted cash of $349,011,
receivables of$71,687, and prepaid assets of$5,550.
• Capital assets - $12,989 - Consists of equipment, net of accumulated depreciation and
' related debt., if any.
• Other assets — Comprised of mortgage loans of$654,660, used for rehab and first time
' home 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, 2010. These increases (or
decreases) result in the Change in Net Assets for the year.
' • Total revenues increased $312,355 or 12.0% during the year from $2,595,333 to
$2,907,688.
• Total expenses increased $61,568 or 2.2% during the year from $2,755,570 to
' $2,817,138.
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HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31,2010
Condensed Statement of Net Assets
2010 2009
Assets:
Cash—unrestricted $ 1,483,916 $ 1,370,850
Cash—restricted 349,011 575,216
Accounts receivable, net 71,687 69,920
Prepaid expense 5,550 2,056
Net capital assets 12,989 13,592
Mortgages & notes receivable 654,660 666,018
Total Assets $ 2,577,813 $ 2,697,652
Liabilities:
Current $ 69,901 $ 285,267
Non-current 43,592 38,615
Total Liabilities $ 113,493 $ 323,882
Net Assets:
Invested in capital assets $ 12,989 $ 13,592
Restricted 329,410 364,681
Unrestricted 2,121,921 1,995,496
Net Assets $ 2,464 320 $ 2,373,770
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:
Condensed Statement of Activities and Changes in Net Assets
2010 2009
Program Revenue:
Operating grants & contributions $ 2,726,551 $ 2,527,882
Investment income 10,426 10,443
Other revenue 170,711 57,008
Total Revenue 2,907,688 2,595,333
Expenses:
Administration 359,347 371,030
Housing assistance payments 2,402,066 2,315,345
Other expenses 55,725 69,195
Total Expenses 2,817,138 2,755,570
Change in Net Assets: 90,550 (160,237)
Net Assets - Beginning 2,373,770 2,534,008
Net Assets - Ending $ 2 464 320 $2373.770
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HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2010
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
I 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 2010 are highlighted
below:
' • Total revenues increased $312,355 while total expenses increased $61,568, resulting in
a net income for the year of$90,550 compared to net loss of$160,237 in 2009.
• HUD Housing Assistance Payments increased by $198,669 to $2,726,551 from
' $2,527,882 in 2009.
• Other revenues (including charges for services) increased $113,703 from $57,008 in
2009 to $170,711 for 2010.
• Administrative expenses decreased $11,683 to $359,347 from $371,030 in 2009.
• Housing Assistance Payments (HAP) expenses increased $86,721 from $2,315,345 for
2009 to $2,402,066 in 2010.
The net results of 2010 activities were an increase to Net Assets of$90,550. Additional information is
available in the combining schedule of program revenues of the financial statements.
CAPITAL ASSET AND DEBT ADMINISTRATION
1 Capital Assets - At the end of 2010, the Authority had $12,989 invested in net capital assets (See
below). There is no debt related to these assets.
' Balance Balance
1/1/2010 Additions Retirements 12/31/2010
Furniture and Equipment $ 41,217 822 -- $ 42,039
Less: Acc Depreciation (27,625) (1,425) (29,050)
' Net Capital Assets $ 13,592 (603) -- $J2,0_9
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 31,2010
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, 2010
ASSETS
Current Assets
Cash and cash equivalents $ 1, 483, 916
Restricted cash and cash equivalents 349, 011
Accounts receivable, net 71, 687
Prepaid expenses 5, 550
Total Current Assets 1,910,164
Noncurrent Assets
Mortgages receivable 654, 660
Total Noncurrent Assets 654,660
Capital Assets
Depreciable capital assets, net 12, 989
Total Capital Assets 12,989
TOTAL ASSETS 2,577,813
LIABILITIES
Current liabilities
Accounts payable 26, 831
Accrued liabilities 14, 400
Payable from restricted cash and
and cash equivalents:
Family self sufficiency escrow 19, 601
Deferred revenue 9, 069
Total Current Liabilities 69,901
Noncurrent Liabilities
Other noncurrent liabilities 43, 592
Total Noncurrent Liabilities 43,592
Total Liabilities 113,493
NET ASSETS
Invested in capital assets 12, 989
Restricted net assets 329, 410
Unrestricted net assets 2, 121, 921
Total Net Assets $ 2,464,320
The accompanying notes are an integral part of these financial statements.
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HOUSING AUHTORITY OF WELD COUNTY
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Greeley, Colorado
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
1 FOR THE YEAR ENDED DECEMBER 31, 2010
1 OPERATING REVENUES
Other income $ 170, 711
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TOTAL OPERATING REVENUE 170,711
OPERATING EXPENSES
AdministrativeI 359, 347
Ordinary maintenance and operation 44, 685
General expense 9, 616
Housing assistance paymentsI 2, 402, 066
Depreciation expense 1, 424
1 TOTAL OPERATING EXPENSES 2,817,138
OPERATING INCOME (LOSS) (2,646,427)
INONOPERATING REVENUES
Federal operating grants 2, 726, 551
Interest income 10, 426
TOTAL NONOPERATING REVENUES 2,736,977
ICHANGE IN NET ASSETS 90,550
TOTAL NET ASSETS - BEGINNING OF YEAR 2, 373, 770
1 TOTAL NET ASSETS - END OF YEAR $ 2,464,320
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1 The accompanying notes are an integral part of these financial statements
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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from tenants and other deposits $ (49, 144)
Payments to vendors (233, 002)
Payments to landlords (2, 402, 066)
Payments to employees (176, 441)
Net Cash Used by Operating Activities (2,860,653)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES - .
Federal operating grants received 2,726, 551
Net Cash From Noncapital Financing Activities 2,726,551
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (821)
Net Cash Flows Provided (Used)
by Capital and Related Financing Activities (821)
CASH FLOWS FROM INVESTING ACTIVITIES
Reduction in mortgages receivable 11, 358
Interest income 10, 426
Net Cash From Investing Activities 21,784
Net Increase (Decrease) in Cash and Cash Equivalents (113,139)
Cash - Beginning of year 1,946,066
Cash - End of year S 1,832,927
Reconciliation of Cash and Cash Equivalents:
Deposits in bank $ 1, 483, 916
Restricted cash 349, 011
Total Cash and Cash Equivalents $ 1,832,927
Continued
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HOUSING AUHTORITY OF WELD COUNTY
' Greeley, Colorado
STATEMENT OF CASH FLOWS
I FOR THE YEAR ENDED DECEMBER 31, 2010
(CONTINUED)
I RECONCILIATION OF OPERATING (LOSS) TO
NET CASH USED BY OPERATING ACTIVITIES
IOperating income (loss) $ (2, 646, 427)
Adjustments to reconcile net operating income to net cash
Provided by operating activities:
IDepreciation 1, 424
Changes in operating assets and liabilities:
I (Increase) Decrease in:
Accounts receivable (1, 767)
Prepaid expenses - (3, 494)
I Increase (Decrease) in:
Accounts payable 4, 376
Accrued liabilities 5, 090
I Deferred revenue (219, 855)
Net Cash Flows Provided (Used)
by Operating Activities $ (2,860,653)
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IThe 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, 2010
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, 2010, 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 GASH 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, 2010
(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
1 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 $329, 410 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
1 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
(GASH) 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, 2010
(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, 2010.
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.
B
I
HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado I NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010
I
(Continued)
NOTE A - Summary of Significant Accounting Policies: (Continued)
I Depreciation of property and equipment is computed by the straight-line
method based upon the estimated useful lives of the assets as follows:
IClass Life
Furniture, Equipment & Machinery 5-7 years
I 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
I 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
that are contingent on a specific event that is outside the control of the
I Authority and its employees, are accounted for in the period in which such
services are rendered or in which such events take place.
I 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
I depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as non operating revenues and expenses.
I 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.
I 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
I 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.
INOTE 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
Iinsured Instruments.
HUD also requires that deposits of HUD program funds be fully insured or
collateralized at all times. Acceptable security includes FDIC insurance
I 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
I security must be held by the Authority or with an unaffiliated bank or
trust company for the account of the Authority.
I 9
HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010
(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, 2010, 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, 832, 927 at
December 31, 2010. Bank and investment balances before reconciling items
were $1, 832, 927 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 S 1, 832, 927
Restricted cash consists of tenant Section 8 HAP reserves and escrow
accounts.
10
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HOUSING AUTHORITY OF WELD COUNTY
I Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010
I (Continued)
NOTE C - Accounts Receivable:
I
Accounts receivable at December 31, 2010, consist of the following:
Fraud Recovery - Net of allowance for doubtful
I accounts of $20, 044 $ 10, 708
Accounts receivable HOD - Miscellanous 1, 830
Current portion of notes receivable 22, 153
Accounts receivable - related party (Housing Authority 36, 996
I
of the City of Greeley)
Total $ 71, 687
INOTE D - Prepaid Expenses:
Prepaid expenses at December 31, 2010, consist of the following:
IPrepaid expenses $ 5, 550
INOTE E - Notes Receivable:
Notes Receivable at December 31, 2010 consists of the following:
I Fort Lupton Housing Partners $ 300, 000
Catholic Charities and Community Services 232, 665
Catholic Charities and Community Services 74, 149
IWeld County Farm Labor 70, 000
Notes receivable 676, 814
ICurrent portion 22, 153
Long term portion $ 654, 661
IThe Fort Lupton Housing Partners note has a 3% interest rate based upon
the cash flow. The original amount of the note is $300, 000.
I The Catholic Charities notes have a 3% interest rate. The first note had
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
I date of October 18, 2001 with an original balance of $100,000. The final
due date is August 1, 2024 .
The Weld County Farm Labor note had an original balance of $100, 000 and
' has 0% interest.
I
I 11
HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010
(Continued)
NOTE F - Capital Assets:
A summary in changes in capital assets is as follows:
Beginning Ending
Balance Balance
1/1/10 Additions Retirements 12/31/10
Furniture & Equipment $ 41, 218 $ 821 $ 0 $ 42, 039
Less: Accumulated
Depreciation ( 27, 626) ( 1, 424) 0 ( 29, 050)
Capital Assets, Net $ 13, 592 $ ( 603) $ 0 $ 12, 989
Depreciation expense of $1, 424 was incurred during the year.
NOTE G - Accounts Payable:
Accounts payable at December 31, 2010, consist of the following:
Vendors' accounts payable $ 26,831
NOTE H - Accrued Liabilities:
Accrued liabilities at December 31, 2010, consist of the following:
Accrued wages/payroll taxes $ 2,348
Accrued compensated absences 12, 052
Total $ 14, 400
NOTE I - Deferred Revenue:
Deferred Revenue at December 31, 2010, consists of the following:
Prepaid grant revenue $ 9, 069
NOTE J - Other Noncurrent Liabilities:
Other noncurrent liabilities at December 31, 2010, consist of the following:
1/01/10 Additions Deletions 12/31/10
Non-current portion of accrued
compensated absences $ 38, 615 $ 4, 977 $ 0 $ 43, 592
12
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HOUSING AUTHORITY OF WELD COUNTY
' Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010
(Continued)
NOTE K - Federal Operating Grants:
HUD contributed the following operating subsidies approved in the operating
budgets under the Annual Contributions Contracts:
' Housing Choice Vouchers $ 2, 622, 042
Emergency Shelter Grants Program 104, 509
Total $ 2, 726,551
NOTE L - Commitments and Contingencies:
' Litigation: At December 31, 2010, the Authority was not involved in any
threatened litigation.
' Examinations: The Authority is subject to possible examinations made by
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
' the year ended December 31, 2010.
Grant Disallowances: Amounts received or receivable from HUD are subject to
' audit and adjustment by HUD. Any disallowed claims, including amounts
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
' amounts, if any, to be immaterial.
NOTE M - Pension Plan:
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
' 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.
' 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.
The Authority's total payroll in fiscal year 2010 was $136, 419. The
Authority made the required contributions, amounting to $3,705 from the
Authority, and $6, 780 from the employees. The Authority' s total payroll in
fiscal year 2009 was $135, 376. The Authority made the required
contributions, amounting to $3, 739 from the Authority and $7, 443 from the
employees. The Authority' s total payroll in 2008 was $134, 041 and the
Authority contributed $3, 441.
' 13
HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010
(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 O - Economic Dependency:
The Authority receives approximately 94% 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.
14
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1 SUPPLEMENTAL FINANCIAL INFORMATION
1
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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
COMBINING SCHEDULE OF PROGRAM NET ASSETS
DECEMBER 31, 2010
C0090
Housing
Choice
Vouchers
ASSETS
Current Assets
Cash and cash equivalents $ 434, 365
Restricted Cash and cash equivalents 349, 011
Accounts receivable, net 59, 534
Prepaid expenses 1, 449
Total Current Assets 844,359
Noncurrent Assets
Mortgages receivable 60, 000
Total Noncurrent Assets 60,000
Capital Assets
Depreciable capital assets, net 12, 989
Total Capital Assets 12,989
TOTAL ASSETS 917,348
LIABILITIES
Current liabilities
Accounts payable 955
Accrued liabilities 14, 400
Payable from restricted cash and
and cash equivalents:
Family self sufficiency escrow 19, 601
Deferred revenue 0
Total Current liabilities 34,956
Noncurrent Liabilities
Other noncurrent liabilities 43, 592
Total Noncurrent Liabilities 43,592
Total Liabilities 78,548
NET ASSETS
Invested in capital assets 12, 989
Restricted net assets 329, 410
Unrestricted net assets 496, 401
Total Net Assets $ 838,800
15
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IEmergency
Shelter Business
Grant Activities Total
' S 30, 844 $ 1, 018, 707 $ 1, 483, 916
0 0 349, 011
0 12, 153 71, 687
I 4, 101 0 5, 550
34,945 1,030,860 1,910,164
I0 594, 660 654, 660
0 594,660 654,660
I
0 0 12,989
I0 0 12,989
34,945 1,625,520 2,577,813
I
I25,876 0 26, 831
0 0 14, 400
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0 0 19, 601
' 9,069 0 9, 069
34,945 0 69,901
I0 0 43, 592
0 0 43,592
I34,945 0 113,493
0 0 12, 989
0 0 329, 410
0 1, 625, 520 2, 121, 921
I $ 0 $ 1,625,520 $ 2,464,320
I
HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
COMBINING SCHEDULE OF PROGRAM REVENUES, EXPENSES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2010
C0090
Housing
Choice
Vouchers
OPERATING REVENUES
Other income $ 77, 122
TOTAL OPERATING REVENUE 77,122
OPERATING EXPENSES
Administrative 252, 310
Ordinary maintenance and operation 0
General expense 9, 616
Housing assistance payments 2, 402, 066
Depreciation expense 1, 424
TOTAL OPERATING EXPENSES 2,665,416
OPERATING INCOME (LOSS) •
0 (2,588,294)
NONOPERATING REVENUES (EXPENSESL
Federal operating grants 2, 622, 042
Interest income 338
TOTAL NONOPERATING REVENUES 2,622,380
CHANGE IN NET ASSETS 34,086
TOTAL NET ASSETS - BEGINNING OF YEAR 804, 714
TOTAL NET ASSETS - END OF YEAR $ 838,800
16
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' Emergency
Shelter Business
Grant Activities Total
$ 0 $ 93, 589 $ 170, 711
1 0 93,589 170,711
I104, 509 2, 528 359, 347
0 44, 685 44, 685
I 0 0 9, 616
0 0 2, 402, 066
0 0 1, 424
I104,509 47,213 2,817,138
(104,509) 46,376 (2,646,427)
I
104, 509 0 2, 726, 551
0 10, 088 10, 426,
104,509 10,088 2,736,977
I0 56,464 90,550
' 0 1, 569, 056 2, 373, 770
$ 0 $ 1,625,520 $ 2,464,320
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2010
ANNUAL PROGRAM
CONTRIBUTION AND CFDA
CONTRACT ASSISTANCE TYPE NUMBER AWARD EXPENDITURES
U. S. DEPARTMENT OF HUD
Emergency Shelter Grants
Program 14 .231 $ 104, 509 $ 104, 509
CO-090 Section 8 Housing Choice
Voucher Program 14 .871 2, 622,042 2, 622, 042
TOTAL FEDERAL FINANCIAL ASSISTANCE $ 2,726,551 $ 2,726,551
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.
17
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' 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, 2010, and have issued my report thereon dated April 22,
2011, 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.
I noted certain matters that I reported to management of Housing Authority of Weld County in a separate
letter dated April 22, 2011.
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.
(140itififfil u li ant
Fredericksburg, Indiana
April 22, 2011
18
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I Jean Sickels
Certified Public Accountant
'
8518 S Kays Chapel Rd
Fredericksburg, IN 47120
I 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
' INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
IHousing Authority of Weld County
903 6th Street
Greeley, CO 80631
I Compliance
I have audited the compliance of the Housing Authority of Weld County with the types of
compliance requirements described in the OMB Circular A-133 Compliance Supplement that could
have a direct and material on each of the Housing Authority of Weld County's major federal
I programs for the year ended December 31, 2010. The Housing Authority of Weld County'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
I 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 responsibility
is to express an opinion on the Housing Authority of Weld County's compliance based on my
audit.
I I conducted my audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States; and OMB
I Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those
standards and OMB Circular A-133 require that I plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
I occurred. An audit includes examining, on a test basis, evidence about the Housing Authority
of 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
I basis for my opinion. My audit does not provide a legal determination on the Housing
Authority of Weld County's compliance with those requirements.
In my opinion, the Housing Authority of Weld County complied, in all material respects, with
I 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, 2010.
Internal 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,
regulations, 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
I with the requirements that could have a direct and material effect on a major federal program
to determine the auditing procedures for the purpose of expressing my opinion on compliance
and to test and report on internal control over compliance in accordance with OMB Circular A-
133, but not for the purpose of expressing an opinion on the effectiveness of internal
I 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)
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.
d o�
Certified Public Accountant
Fredericksburg, Indiana
April 22, 2011
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HOUSING AUTHORITY OF WELD COUNTY
I - Greeley, Colorado
DECEMBER 31, 2010
ISCHEDULE OF FINDINGS AND QUESTIONED COSTS
SECTION I - SUMMARY OF AUDITOR'S RESULTS
IFINANCIAL STATEMENTS
Type of auditor's report issued: Unqualified
' Internal control over financial reporting:
- Material weakness (es) identified? Yes X no
I - Significant deficiencies identified that are
not considered to be material weaknesses? Yes X none reported
Noncompliance material to financial statements
Inoted? Yes X no
FEDERAL AWARDS
I Internal control over major programs:
- Material weakness (es) identified? yes X no
- Significant deficiencies identified that are
Inot considered to be material weakness (es) ? yes X none reported
Type of auditor's report issued on compliance
Ifor major programs: Unqualified
Any audit findings disclosed that are required
to be reported in accordance with section 510 (a)
Iof Circular A-133? yes X no
Identification of major programs:
I CFDA Number Name of Federal Program
14 .871 Housing Choice Vouchers
' Dollar threshold used to distinguish
between type A and type B programs : $ 300, 000
IAuditee qualified as low-risk auditee? X yes no
SECTION II - FINANCIAL STATEMENT FINDINGS
IThere were no Financial Statement findings.
ISECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There are no Federal Award findings.
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
DECEMBER 31, 2010
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
PRIOR YEAR FINDINGS
There were no prior year findings.
CURRENT YEAR FINDINGS
There are no current year findings.
22
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I Jean Sickels
Certified Public Accountant
I 8518 S Kays Chapel Rd
Fredericksburg, IN 47120
I phone (812) 472-3527
fax (812) 472-3649
cell (404) 307-5903
IIApril 22, 2011
Mr. Tom Teixeira
IIExecutive Director
Housing Authority of Weld County
903 6th Street
Greeley, CO 80631
IIDear Mr. Teixeira:
In planning and performing my audit of the financial statements of the Housing Authority of Weld
IICounty as of and for the year ended December 31, 2010, I considered the Authority's internal
control in order to determine my auditing procedures for the purpose of expressing an opinion on
the financial statements and not to provide assurance on internal control.
IIHowever, during my audit, I became aware of a matter that is an opportunity for strengthening
internal controls and operating efficiency. This letter does not affect my report dated April 22,
2011 on the financial statements of the Authority.
I I will review the status of the comment during my next audit engagement. I have already discussed
the comment and suggestion with Authority personnel, and will be pleased to discuss the comment in
further detail at your convenience, to perform any additional study of the matter, or to assist you
in implementing the recommendation. My comment is summarized as follows:
llI. CONDITION: VOUCHER MANAGEMENT SYSTEM (VMS)
II The Housing Assistance Payments (HAP) reported on the Financial Data Schedule (FDS) and on
the VMS does not agree.
RECOMMENDATION:
' The Authority should correct the VMS submissions and ensure that the Authority receives the
proper funding.
I wish to thank the Executive Director and the staff of the Authority for their support and
liassistance during my audit.
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
IIanyone other than these specified parties.
' Sincerely,
Ilcan Sickels
Certified Public Accountant
II
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