HomeMy WebLinkAbout20100955.tiff 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 26, 2010
Mr . Douglas Rademacher
Board Chairman for the Housing Authority
of Weld County
915 10th Street
Greeley, CO 80631
Dear Mr. Rademacher,
Enclosed please find a copy of the Housing Authority of Weld County Audit
Report for the year ending December 31, 2009 . We are sending you 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 .
Sincerel
iiii
Skil°
Jean E. Sickels
Certified Public Accountant
JES: cl
Enclosures
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C orhfi an i rah cvn,5 2010-0955
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' HOUSING AUTHORITY OF WELD COUNTY
IAUDITED FINANCIAL STATEMENTS
Greeley, Colorado
IDECEMBER 31 , 2009
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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 Applicable to Each Major
' Program and Internal Control over Compliance in Accordance with
OMB Circular A-133 19
Schedule of Findings and Questioned Costs 21
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' I Jean Sickels
Certified Public Accountant
I8518 S Kays Chapel Rd
Fredericksburg, IN 47120
IINDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Housing Authority of Weld County
903 6`" Street
Greeley, CO 80631
I have audited the financial statements of the Housing Authority of Weld County ("the
IAuthority") as of and for the year ended December 31, 2009, 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.
II 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
Irequire that I plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made
Iby management, as well as evaluating the overall financial statement presentation. I believe
that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material
Irespects, the financial position of the as of December 31, 2009, and the changes in
financial position and cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
IIn accordance with Government Auditing Standards, I have also issued my report dated April
29, 2009, on my consideration of the Authority' s internal control over financial reporting
and on my tests of its compliance with certain provisions of laws, regulations, contracts and
I 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
IGovernment Auditing Standards, and should be considered in assessing the results of my audit.
The Management 's Discussion and Analysis as detailed in this Report, is not a required part
of the financial statements but is supplementary information required by accounting
I principles generally accepted in the United States of America. have applied certain
limited procedures, which consisted principally of inquiries made 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 .
IMy 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 as required by the U. S. Office of Management and Budget Circular A-3.33, Audits of
I 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 has been
I subjected to the auditing procedures applied in the audit of the financial statements and, in
my opinion, is fairly stated, in all material respects, in relation to the financial
statements taken as a whole.
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I Certified Publ nt & t
Fredericksburg, Indiana
IApril 23, 2010
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HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31,2009
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, 2009. 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, 2009
(Continued)
IFinancial Analysis of the Authority as a Whole
The Authority's net assets were $2,373,770 at December 31, 2009 and $2,534,008 at December 31,
2008, representing a decrease of$160,237 or 6.3 percent from 2008. The prior year's increase in net
assets was $18,900 or .8 percent. Net loss for the year 2009 was $160,237 compared to net income of
' $18,900 for 2008, representing a decrease of$179,137. The decrease in net income results is due to a
decrease in HUD grants and contributions of$450,822, an increase in other income of$16,787, and a
decrease in total expenses of$24,856. Administrative expenses increased by $12,177. 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 $2,373,770 at December 31, 2009. Net assets are
' comprised of the following components:
• Current — Consists of unrestricted cash of $1,370,850, restricted cash of $575,216,
receivables of$69,920, and prepaid assets of$2,056.
• Capital assets — Consists of equipment, net of accumulated depreciation and related
debt., if any.
' • Other assets -- Comprised of mortgage loans of$666,018 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, 2009. These increases (or
' decreases) result in the Change in Net Assets for the year.
• Total revenues decreased $201,976 or 7.2% during the year from $2,797,309 to
$2,595,333.
• Total expenses decreased $22,839 or .8% during the year from $2,778,409 to
$2,755,570.
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HOUSING AUTHORITY OF WELD COUNTY '
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2009
(Continued)
Condensed Statement of Net Assets
2009 2008
Assets:
Cash — unrestricted $ 1,370,850 $ 253,813 ,
Cash— restricted 575,216 564,577
Other current assets 71,976 84,088
Net capital assets 13,592 13,544 I
Mortgages & notes receivable 666,018 677,426
Total Assets 2,697,652 2,593,448
Liabilities: '
Current 285,267 30,737 '
Non-current 38,615 28,703
Total Liabilities 323,882 59,440
Net Assets: I
Invested in capital assets 13,592 13,544
Restricted 364,681 544,100 ,
Unrestricted 1,995,496 1,976,364
Net Assets $ 2,373,770 $ 534,008
1'he 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 I
2009 2008 '
Program Revenue:
Operating grants & contributions $ 2,527,882 $ 2,716,994
Investment income 10,443 11,087 '
Other revenue 57,008 69,228
Total Revenue 2,595,333 2,797,309
Expenses: I
Administration 371,030 361,340
Housing assistance payments 2,315,345 2,364,551
Other expenses 69,195 52,518
Total Expenses 2,755,570 2,778,409
Change in Net Assets: (160,237) 18,900 ,
Net Assets - Beginning 2,534,008 2,515,108
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Net Assets - Ending $ 2,373,770 $ 2,534,008
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HOUSING AUTHORITY OF WELD COUNTY
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2009
I (Continued)
' 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 2009 are highlighted
below:
• Total revenues decreased $201,976 while total expenses decreased $22,839, resulting in
a net loss for the year of$160,237 compared to net income of$18,900 in 2008.
' • HUD Housing Assistance Payments decreased by $189,112 to $2,527,882 from
$2,716,994 in 2008.
• Other revenues (including charges for services) decreased $12,220 from $69,228 in
' 2008 to $57,008 for 2009.
• Administrative expenses increased $9,690 to $371,340 from $361,340 in 2008.
• HAP expenses decreased $49,206 from $2,364,551 for 2008 to $2,315,345 in 2009.
The net results of 2009 activities were a decrease to Net Assets of$160,237. 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 2009, the Authority had $13,592 invested in net capital assets (See
below). There is no debt related to these assets.
' Balance Balance
1/1/2009 Additions Retirements 12/31/2009
Furniture and Equipment $ 39,866 1,351 $ 41,217
Less: Acc Depreciation (26,322) (1,303) (27,625)
Net Capital Assets 13 544 _ 48 $ 13,592
Additional information on the Authority's capital assets can be found in Foot Note A, page 8, of the
Ifinancial 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, 2009
(Continued)
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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FINANCIAL STATEMENTS
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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado '
STATEMENT OF NET ASSETS
DECEMBER 31, 2009 I
ASSETS
Current Assets
Cash and cash equivalents $ 1, 370,850
Restricted cash and cash equivalents 575,216
Accounts receivable, net 69, 920
Prepaid expenses 2, 056
Total Current Assets 2,018,042
Noncurrent Assets
Mortgages receivable 666, 018
Total Noncurrent Assets 666,018
Capital Assets
Depreciable capital assets, net 13, 592
Total Capital Assets 13,592
TOTAL ASSETS 2,697,652 I
LIABILITIES
Current liabilities
Accounts payable 34,215
Accrued liabilities 14, 287
Payable from restricted cash and
and cash equivalents:
Family self sufficiency escrow 7,841
Deferred revenue 228, 924
Total Current Liabilities 285,267
Noncurrent Liabilities
Other noncurrent liabilities 38, 615
Total Noncurrent Liabilities 38,615
Total Liabilities 323,882
NET ASSETS
Invested in capital assets 13, 593
Restricted net assets 364, 681
Unrestricted net assets 1, 995, 496
Total Net Assets $ 2,373,77_0_
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The accompanying notes are an integral part of these financial statements.
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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
I STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2009
I OPERATING REVENUES
Other income $ 57, 008
' TOTAL OPERATING REVENUE 57,008
OPERATING EXPENSES
AdministrativeI 371, 030
Ordinary maintenance and operation 51, 684
General expense 16, 208
Housing assistance payments 2, 315, 345
Depreciation expense 1, 303
ITOTAL OPERATING EXPENSES 2,755,570
IOPERATING INCOME (LOSS) (2,698,562)
NONOPERATING REVENUES
Federal operating grants — — 2, 527, 882
IllInterest income 10, 443
ITOTAL NONOPERATING REVENUES 2,538,325
CHANGE IN NET ASSETS (160,237)
TOTAL NET ASSETS - BEGINNING OF YEAR 2, 534, 007
' TOTAL NET ASSETS - END OF YEAR $ 2,373,770
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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, 2009 '
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from tenants and other deposits $ 276, 863 '
Payments to vendors (207, 235)
Payments to landlords (2, 315, 345)
Payments to employees (174, 989)
Net Cash Used by Operating Activities (2,420,706)
CASH FLOWS FROM NONrAPITAL FINANCING ACTIVITIES
Federal operating grants received 2, 527, 882
Net Cash From Noncapital Financing Activities 2,527,882
CASH FLOWS FROM rAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (1, 351)
Net Cash Flows Provided (Used)
by Capital and Related Financing Activities (1,351)
CASH FLOWS FROM INVESTING ACTIVITIES
Reduction in mortgages receivable 11, 408
Interest income 10, 443
Net Cash From Investing Activities 21,851
Net Increase (Decrease) in Cash and Cash Equivalents 127,676 '
Cash - Beginning of year 1,818,390
Cash - End of year $ 1,946,066
Reconciliation of Cash and Cash Equivalents:
Deposits in bank $ 1, 370, 850
Restricted cash 575, 216
Total Cash and Cash Equivalents $ 1,946,066
Continued
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HOUSING AUHTORITY OF WELD COUNTY
'
Greeley, Colorado
I STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2009
(CONTINUED) j
' RECONCILIATION OF OPERATING ALOSS) TO
NET CASH USED BY OPERATING ACTIVITIES
' Operating income (loss) $ (2, 698, 562)
Adjustments to reconcile net operating income to net cash
I Provided by operating activities:
Depreciation 1, 303
Changes in operating assets and liabilities:
I (Increase) Decrease in:
Accounts receivable 12, 259
Prepaid expenses (148)
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Increase (Decrease) in:
Accounts payable 32, 563
Accrued liabilities 12, 024
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Deferred revenue 219, 855
Net Cash Flows Provided (Used)
Iby Operating Activities $ (2,420,706)
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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, 2009
NOTE A - Summary of Significant Accounting Policies and Organization: I
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, 2009, 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
IGreeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009
I (Continued)
NOTE A - Summary of Significant Accounting Policies: (Continued)
I 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
I 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
I 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
I requires that resources be classified for accounting and reporting purposes
into the following three net asset categories:
I 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.
IRestricted - 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
I assets include assets restricted for capital acquisitions and debt service.
The Authority has restricted funds totaling $575, 216 that represents excess
HAP grant funding provided by the Department of Housing & Urban Development
I 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.I Unrestricted Net assets that are not subject to externally imposed
stipulations. Unrestricted net assets may be designated for specific
I 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
U 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
Iaccounting and financial reporting principles.
Use of Enterprise Accounting - The Authority presents its financial
statements using enterprise accounting, as allowed by governments.
I 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
I 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
I 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, 2009
(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, 2009.
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, 2009
(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
tCompensated 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
' 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.
Leasing Activities (as Lessor) - The Authority is the lessor of dwelling
units primarily to low-income residents. The rents under the leases are
determined generally by the resident 's income as adjusted for eligible
deductions regulated by HUD, although the resident may opt for a flat
rent . Leases may be cancelled by the lessee at any time. The Authority
' may cancel the lease only for cause.
Income associated with these leases are recorded in the financial
statements and schedules as "Rental income". Rental income per resident
generally remains consistent from year to year, but is affected by general
economic conditions which impact personal income, such as local job
availability
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009
(Continued) '
NOTE B - Deposits, Cash and Cash Equivalents, and Investments:
1. HUD Deposit Restrictions I
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
security must be held by the Authority or with an unaffiliated bank or
trust company for the account of the Authority.
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, 2009, 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.
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HOUSING AUTHORITY OF WELD COUNTY
IGreeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009
I (Continued)
NOTE B - Deposits, Cash and Cash Equivalents, and Investments: (Continued)
IThe carrying amounts of the Authority' s cash deposits were $1, 946, 066 at
December 31, 2009. Bank and investment balances before reconciling items
were $1, 946, 784 at that date, the total amount of which was collateralized
I or insured with securities held by an unaffiliated banking institution in
the Authority' s name.
IDeposits consist of the following:
Checking, money market and saving accounts $ 1, 946, 066
I Restricted cash consists of tenant Section 8 HAP reserves and escrow
accounts.
I NOTE C - Accounts Receivable:
Accounts receivable at December 31, 2009, consist of the following:
I Fraud Recovery - Net of allowance for doubtful
accounts of $18, 237 $ 10, 708
Accounts receivable HUD 491
Current portion of notes receivable 22, 153
I
Accounts receivable - related party (Housing Authority 36, 568
of the City of Greeley)
Total $ 69, 920
' NOTE D - Prepaid Expenses:
Prepaid expenses at December 31, 2009, consist of the following:
IPrepaid expenses $ 2, 056
INOTE E - Notes Receivable:
Notes Receivable at December 31, 2009 consists of the following:
I Fort Lupton Housing Partners $ 300, 000
Catholic Charities and Community Services 239, 721
Catholic Charities and Community Services 78, 450
IWeld County Farm Labor 70, 000
Notes receivable 688, 171
' Current portion 22, 153
Long term portion $_ 666, 018
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.
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009
(Continued)
NOTE E - Notes Receivable: (Continued)
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 l '
due date is August 1, 2024 .
The Weld County Farm Labor note had an original balance of $100, 000 and '
has 0% interest.
NOTE F - Capital Assets:
A summary in changes in capital assets is as follows: '
Beginning Ending '
Balance Balance
1/1/09 Additions Retirements 12/31/09
Furniture & Equipment $ 39, 866 $ 1,351 $ 0 $ 41,217
Less: Accumulated I
Depreciation ( 26, 323) ( 1, 303) 0 ( 27, 625)
Capital Assets, Net $ 13, 544 $ 48 $______, 0 $ 13, 592
1
Depreciation expense of $1, 303 was incurred during the year.
NOTE G - Accounts Payable: I
Accounts payable at December 31, 2009, consist of the following:
Vendors' accounts payable $ 34, 215 '
NOTE H - Accrued Liabilities: '
Accrued liabilities at December 31, 2009, consist of the following:
Accrued wages/payroll taxes S 2, 180
Accrued compensated absences 12, 107
Total $ 14, 287 '
NOTE I - Deferred Revenue:
Deferred Revenue at December 31, 2009, consists of the following: '
Prepaid voucher & grant revenue $ 228, 924
NOTE J - Other Noncurrent Liabilities: '
Other noncurrent liabilities at December 31, 2009, consist of the following:
1/01/09 Additions Deletions 12/31/09 '
Non-current portion of accrued
compensated absences $ 28, 703 $ 9, 912 $ 0 $._38.615
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HOUSING AUTHORITY OF WELD COUNTY
1 Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009
I (Continued)
NOTE K - Federal Operating Grants:
' HUD contributed the following operating subsidies approved in the operating
budgets under the Annual Contributions Contracts:
I Housing Choice Vouchers $ 2, 396, 679
Emergency Shelter Grants Program 131, 203
ITotal $ 2, 527, 882
NOTE L - Commitments and Contingencies:
ILitigation: At December 31, 2009, the Authority was not involved in any
threatened litigation.I 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
Ithe year ended December 31, 2009.
Grant Disallowances: Amounts received or receivable from HUD are subject to
I 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
1 amounts, 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
I 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.
IThe Authority' s total payroll in fiscal year 2009 was S135, 376. The
Authority made the required contributions, amounting to S3, 739 from the
Authority, and $7, 443 from the employees . The Authority's total payroll in
I fiscal year 2008 was $134, 041 . The Authority made the required
contributions, amounting to $3, 441 from the Authority and $7, 224 from the
employees. The Authority' s total payroll in 2007 was $118, 163 and the
' Authority contributed $3, 144 .
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009
(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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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
COMBINING SCHEDULE OF PROGRAM NET ASSETS
DECEMBER 31, 2009
CO090
Housing
Choice
Vouchers
ASSETS
Current Assets
Cash and cash equivalents $ 377, 448
Restricted Cash and cash equivalents 575, 216 '
Accounts receivable, net 57, 767
Prepaid expenses 2, 056
Total Current Assets 1,012,487
Noncurrent Assets
Mortgages receivable 60, 000
Total Noncurrent Assets 60,000
Capital Assets
Depreciable capital assets, net 13, 592
Total Capital Assets 13,592
TOTAL ASSETS 1,086,079
LIABILITIES
Current liabilities
Accounts payable 767
Accrued liabilities 14, 287
Payable from restricted cash and
and cash equivalents:
Family self sufficiency escrow 7, 841
Deferred revenue 219, 855
Total Current liabilities 242,750 ,
Noncurrent Liabilities
Other noncurrent liabilities 38, 615
Total Noncurrent Liabilities 38,615
Total Liabilities 281,365
NET ASSETS
Invested in capital assets 13, 593
Restricted net assets 364, 681
Unrestricted net assets 426, 440
Total Net Assets $ 804,714
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I Emergency
Shelter Business
Grant Activities Total
I
i $ 42, 517 S 950, 885 $ 1, 370, 850
Ill 0 0 575, 216
0 12, 153 69, 920
I 0 0 2, 056
42,517 963,038 2,018,042
' 0 606, 018 666, 018
0 606,018 666,018
I
0 0 13,592
I0 0 13,592
42,517 1,569,056 2,697,652
I
II 33, 448 0 34, 215
0 0 14, 287
I0 0 7, 841
9, 069 0 228, 924
ll42,517 0 285,267
' 0 0 38, 615
0 _ 0 38,615
I
42,517 0 323,882
I
0 0 13, 593
0 0 364, 681
0 1, 569, 056 1, 995, 496
IS 0 S 1,569,056 $ 2,373,770
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HOUSING AUHTORITY OF WELD COUNTY
Greeley, Colorado
COMBINING SCHEDULE OF PROGRAM REVENUES, EXPENSES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2009 I
C0090
Housing
Choice
Vouchers
OPERATING REVENUES
Other income $ 26, 587
TOTAL OPERATING REVENUE 26,587
OPERATING EXPENSES
Administrative 236, 501
Ordinary maintenance and operation C
General expense 16, 208
Housing assistance payments 2, 315, 345
Depreciation expense 1, 303
TOTAL OPERATING EXPENSES 2,569,357
OPERATING INCOME (LOSS) (2,542,770)
NONOPERATING REVENUES (EXPENSES)
Federal operating grants 2, 396, 679
Interest income 414
TOTAL NONOPERATING REVENUES 2,397,093
CHANGE IN NET ASSETS (145,677)
TOTAL NET ASSETS - BEGINNING OF YEAR 950, 391
TOTAL NET ASSETS - END OF YEAR $ 804,714
•
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1 Emergency
I
Shelter Business
Grant Activities Total
II' $ 0 $ 30, 421 $ 57, 008
0 30,421 57,008
I131,203 3, 326 371, 030
0 51, 684 51, 684
1 0 0 16, 208
0 0 2, 315, 345
0 0 1, 303
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131,203 55,010 2,755,570
(131,203) (24,589) (2,698,562)
I
131, 203 0 2, 527, 882
I
0 10, 029 10, 443
131,203 10,029 2,538,325
I0 (14,560) (160,237)
0 1, 583, 616 2, 534, 007
$ 0 $ 1,569,056 $ 2,373,770
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HOUSING AUTHORITY OF WELD COUNTY
Greeley, Colorado
SCHEDUT.W OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2009
ANNUAL PROGRAM
CONTRIBUTION AND CFDA
CONTRACT ASSISTANCE TYPE NUMBER AWARD EXPENDITURES
U. S. DEPARTMENT OF HUD '
Emergency Shelter Grants
Program 14 .231 $ 131, 203 $ 131, 203
CO-090 Section 8 Housing Choice
Voucher Program 14 .871 2, 396, 679 2, 396, 679
TOTAL FEDERAL FINANCIAL ASSISTANCE $ 2,527,882 $ 2,527,882 t
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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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, 2009, and have issued my report thereon dated April 23, 2010, 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 we reported to management of Housing Authority of Weld County in a
separate letter dated April 23, 2010.
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.
5
Certified Public Accountant
Fredericksburg, Indiana
April 23, 2010
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Jean Sickels
Certified Public Accountant
I 8518 S Kays Chapel Rd
Fredericksburg, IN 47120
I REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR
PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OMB CIRCULAR A-133
I
Board of Commissioners
Housing Authority of Weld County
903 6" Street
Greeley, CO 80631
ICompliance
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 are
applicable to each of its major federal programs for the year ended December 31, 2009. 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 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 conducted my audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States; and OMB
Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those
Istandards and OMB Circular A-133 require that I plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about 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
basis for my opinion. My audit does not provide a legal determination on the Housing
Authority of Weld County's compliance with those requirements.
ll
In my opinion, the Housing Authority of Weld County complied, in all material respects, with
the requirements referred to above that are applicable to each of its major federal programs
for the year ended December 31, 2009.
Internal Control Over Compliance
Management of the Housing Authority of Weld County is responsible for establishing and
Imaintaining 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
' IIcompliance with the requirements that could have a direct and material effect on a major
federal program in order to determine my auditing procedures for the purpose of expressing my
opinion on compliance and to test and report on internal control over compliance in
accordance with 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
Ion the effectiveness of the Housing Authority of Weld County' s internal control over
compliance.
II
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A deficiency in internal control over compliance exists when the design or operation of a
control over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent or detect and correct, noncompliance with a
type of compliance requirement of a federal program on a timely basis. A material weakness
in internal control over compliance is a deficiency, or combination of deficiencies, in
internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis.
My consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in
internal control over compliance that might be 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.
Certified Public Accountant
Fredericksburg, Indiana
April 23, 2010
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HOUSING AUTHORITY OF WELD COUNTY
IGreeley, Colorado
DECEMBER 31, 2009
ISCHEDULE OF FINDINGS AND QUESTIONED COSTS
SECTION 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
I - Significant deficiencies identified that are
not considered to be material weaknesses? Yes X none reported
Noncompliance material to financial statements
' noted? Yes X no
FEDERAL AWARDS
I Internal control over major programs:
- 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
' for 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:
CFDA Number Name of Federal Program
14 .231 Emergency Shelter Grants Program
14 . 871 Housing Choice Vouchers
i � Dollar threshold used to distinguish
between type A and type B programs: $ 300, 000
IAuditee qualified as low-risk auditee? X yes no
I SECTION II - FINANCIAL STATEMENT FINDINGS
There 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, 2009
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
PRIOR YEAR FINDINGS I
There were no prior year findings .
CURRENT YEAR FINDINGS I
There were no current year findings.
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I Jean Sickels
Certified Public Accountant
I8518 S Kays Chapel Rd
Fredericksburg, IN 47120
I phone (812) 472-3527
fax (812) 472-3649
cell (404) 307-5903
IIApril 23, 2010
' Mr. Tom Teixeira
• Executive Director
Housing Authority of Weld County
903 6th Street
Greeley, CO S0631
IIDear Mr. Teixeira:
In planning and performing my audit of the financial statements of the Housing Authority of Weld
County as of and for the year ended December 31, 2009, 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 23,
2010 on the financial statements of the Authority.
II
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
IIin implementing the recommendation. My comments are summarized as follows:
1. CONDITION: CLIENT FILES
IIIn the sample of section 8 client files, one contract was not signed for this year.
RECOMMENDATION:
I The Authority should thoroughly review all client files and make sure all the documents are
properly executed.
2. CONDITION: SEMAP DOCUMENTATION
The Authority is not keeping worksheets that document the indicators submitted.
RECOMMENDATION:
' The Authority should keep worksheets that summarize the results of the quality control
samples. These worksheets should be filed for audit.
II wish to thank the Executive Director and the staff of the Authority for their support and
assistance during my audit.
This report is intended solely for the information and use of the Board of Commissioners,
IIManagement, and others within the Authority and is not intended to be and should not be used by
anyone other than these specified parties.
1 incerely,
•
Jean Sickels
IICertified Public Accountant
Hello