T H E H O U SIN G A U T H O R IT Y O F T H E C IT Y

Transcription

1 T H E H O U SIN G A U T H O R IT Y O F T H E C IT Y O F W E ST W E G O,L A IN D E PE N D E N T A U D ITO R 'S R EPO R T A N D R EPO R TS O N FED ER A L AW A R D S,INTERN AL C O N TR O l-a N D C O M I'LIAN CE For tile Y ear E nded June 30,2001 Underprovisions ofstate law,this reportis a public docum ent.a copy ofthe reporthas been subm itted to the entity and otherappropriate public officials. -the reportis available forp,~blic:inspection atthe B3ṭ on Rouge office ofthe Leoisl~tive Auditorand, w here

2 C O N TEN T S PA G E NA N C IAL IN FO R M ATIO N SEC TIO N IndependentA uditor's R eport B alance Sheet- Statem entof R eveuoes,expensesand ChangesiJi Retained Earnings(Defiei0 Statem entof C ash Flow s N otesto tile FinancialStatem ents SU PPL E M EN TA R Y IN FO R M A TIO N Schedule ofexpenditures(expenses)federalawards R EPO R T O N C O M PLIA N CE A ND INTER N A l,c O N TR O L O V ER FIN A N C IA I,R EPO R TIN G BA SED O N A N A U DIT O F FIN A N C IAL STATEM EN TS A N D PER FO R M ED 1N A C C O R D A N C E W ITH G O I/ER N M EN T.4UD IT1N G S TA N DA R D S REPORT ON COM PLIANCE W ITH REQUIREM ENTS A PPL IC A B L E T O E A C It M A JO R PR O G R A M A N D IN T E R N A l,c O N TR O I,O V ER C O M PLIA N C E IN A C C O R D A N C E W ITItO M B C IR CU LAR A -133 Schedule of Findingsand Questioned Costs Statusof Prior Year Findingsand Questioned Costs M anagem eut's C orrective A ction Plan Schedule ofthecom prehensive GrantProgram (CGP) A ctivity -#

3 E l!.i~;i~n SItANKI,IN A NI)RUS CERI'IFII~1) PU B IJC A CCO UNTA N'I A I,IMIhi,I,IAIqI.H y M em berofiho A m erican ]nstilulc of ('erlified Public A cg~~inlad s M em berof Iho LouisianaSociety of Certified l'ublic IN D E PE N D E NT A U D ITO R 'S R E PO R T B oard of D irectors The ltousing A uthority of the City of W estw ego,la,lnc 1010 Sixth St. W estw ego,la have audited lhe accom panying financial statem ents of the tlonsing Authority of thecity ofw estwego;la (a proprietary governmentalfund) (thehousing Authority)asofand forthe yearended June 30,2001,as listed in the table of contents. These financial statem ents are the responsibility of the H ousing A uthority's m anagem ent. M y responsibility isto expressan opinion on these financial statem entsbased on m y audit. I conducted m y audit in accordm~ce w ith generally accepted auditing standards and the standards applicable to financial audits contained in Governm entauditing Standards,issued by the Com ptrollergeneralof the U nited States.Those standardsrequire thatiplan and perform the auditto obtain reasonable assurance aboutw hetherthe financialstatem entsare free of m aterialm isstatem ent. A n audit includes exam ining,on a test basis, evidence supporting the am ounts and disclosures in the financial statem ents.a n auditalso includesassessing the accounting principlesused and significantestim atesm ade by m anagem ent,as w ellas evaluating the overallfinancialstatem entpresentation. 1believe thatm y auditprovidesa reasonable basis for m y opinion. In m y opinion the financialstatem ents referred to above presentfairly,in allm aterialrespects,the financialposition of the H ousing A uthority of W cstw ego,la asof June 30,2001 and results of operations and the cash flow s of its proprietary fund in conform ity w ith generally accepted accounting principles. In accordm~ce w ith Governm entauditing Standards,Ihave also issued nay report dated N ovem ber 5, 2001 on m y consideration of the H ousing A uthority's internal control over financial reporling and m y tests of its com pliance with certain provisions of law s, regulations, contracts and grants."lqlatreportis an integralpartof an auditperform ed in accordance with GovernmentAuditing Standards and should be read in conjunction w ith this reportin considering the resultsof m y audit rd St,Stc.9 Kf!NNI':R,LA Ol'vlCl!:(504) "} F^x:(504) ]~M^I.: esacpa@ aol.com

4 M y auditw asperform ed forthe purpose of fom aing an opinion on the financialstatem entsof the Itousing A uthority taken as a w hole. The accom panying schedule of expenditures of federal aw ards and other supplem entary information is presented forpuq)oses of additionalanalysis as required by theu.s.office ofm anagementand BudgetCircularA-133,Auditsof States,Local Governments, and Non-Profit Organizations and the Department of Housing and Urban D evelopm ent,and isnota required partof the financialstatem ents of the H ousing A uthority of the City ofw estwego,la.such information hasbeen subjected 1o the auditing procedures applied in lhe auditof the financialstatem entsand,in m y opinion,isfairly stated,in allm aterial respects,in relalion to the financialstatem entstaken asa whole. EILEEN SItA N K LIN AN D RU S CERTIFIED PU BLIC A CCO U N TA N T A 1AM 1TED LIA BILITY COM PA N Y N ovem ber5,2001

5 THE HOUSING AUTHOR ITY OF TH E CITY OF WESTWEGO, LA BA L~/qCE SH EET JUNE 30, 2001 A SSET~ Curren t A ssets Cash - Unrestricted Cash - Restricted Investm ent Certificate of Deposit Prepaid Insurance Inven tories Total Curren t A ssets 134,058 94, ,080 52,037 Fixed A ssets Land Bu ildings Equ ipm en t & Furn iture Total Fi~ed A ssets AccD/nulated Depreciation Total Fixed A ssets, Net 2,264,014 6,807,7 38 9,421,858 ( _ 3_,022,599) ~,399,2~ Total A ssets Curren t L iab ilities Accounts Payable Prepaid Rent Accrued Comp ensated Ab sences D eferred Revenue Accrued Liabilities Bond Payable Total Current Liabilities 32, ,402 52,849 36, ,527 Total Liab ilities 237,527 Fund Equity Con tribu ted Cap ital Un de sign ated Re ta in ed Earn ing s Total Retained Earrings 9,628,186 (2,911,2~2~h 6,716,9~ Total Liab ilities & Retained Earnings See accomp anying notes.

6 THE HOUSING AUTHORITY OF THE CITY OF WESTWEGO, LA. STATEMENT OF REVENUESI EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED JUNE 30,2001 Operating Revenues Net Tenant Rental Revenue Total Operating Revenues 580.4/~ Operating Expenses Administrative Salaries Auditing Fees Employee Benefit - Adm inistrative O ther Operating Expense - Administrative Water Electricity Gas Other utility Expense Ordinary M aintenance - Labor Ordinary Maintenance - Material Ordinary Main tenance - Emp loyee Bene fit ordinary Maintenance - Contract Co st Insurance Expense Tax Expense Bad Debt- Tenant Rent Depreciation Expense Total Operating Expenses 101,739 1,375 16, ,256 37,920 35, ,855 60, ,484 68,393 21,634 48,426 81,292 ~4,782 6,474 Operating Income ( Loss) Non -Operating Revenues and Expenses Revenue- Department of Housing and Neighborhood Development Other Income In terest Gain/(Loss) on Disposition of Equipm ent Total Non -Operating Revenue and~expenses 617,965 21,413 15,542 Net Income (Loss) Beginning Retained Earnings Prior Period Adjustment Adjusted Beginning Retained E arn ing s Ending Retained Earnings 6,476,755 6,597~/~5~ See accompanying notes 6

7 THE HOUSING AUTHORITY OF THE CITY OF WESTWEGO, LA STATEMENT OF CA SH FLOWS FOR THE YEAR ENDED JUNE 30, 2001 Cash flow s from Op erating A ctiv ities : In crease in N et Incom e Add : Depreciation Expense Add : Loss on Disposition of Equ ipm ent Adjustment to Income: (Increase) Decrease in Net Income: Tenant Receivab le Prepaid Insurance Inventories Increase (Decrease) in Liabilities: A ccounts Pay ab le Security Deposit Accrued Ab sences D eferred Revenue Other Goverznnent - Taxes Net Cash Provided (Used) by Operating Activities 119, ,021 1, (2,782) (1,500) 26,314 (1,739) 5,342 52,849 1, ,170 Cash Flows from Capital and Related Financing Activities Bond Paym en ts In terest Paym ents Net Cash Provided (Used) by Capital and Related Financing ' Activ ities Cash Flows from Investing Activities In terest In com e Equipment and Building Improvem ents Net Cash Provided (Used) in Investing Activ ities (65,000) (2,275) 15,542 _(~24,644) Net Increase in Cash and Cash Equivalents Cash and Cash Equ ivalents at Beginning of Year Cash and Cash Equ ivalen ts at End of Year See accompany ing notes 7

8 TH E H OU SIN G AU TH OR ITY OF TH E C ITY O F W E STW EGO, LA Notes to the Financial Statem en ts For the Year Ended June 30, N OT E i. SUMMA RY O F SIGN IFICAN T A CCOUN T IN G POL IC IE S The Housing Authority of Westwego, LA (the Housing Authority) w as created pu rsuan t to the adop tion o f the Un ited States Hou sing A ct o f 1937 to engage in the acquisition, dev elopm en t, and adm in istra tion o f a low incom e hou sing p rogram to p rov ide safe, san itary, and a ffordab le hou sing to the citizen s o f W estw ego, Lou isian a. Under the A ct o f 1937, as am ended, the U.S. Dep artm en t of Housing and Urban Development (HUD) has direct oversight and financial re sp on sib ility for adm in istering and overseeing low ren t hou sing p rogram s in the Un ited Sta tes. To accomp lish this task, HUb ha s en tered in to annual con tribu tion s con tracts w ith the Hou sing Au thor ity for the purpo se o f p rov id ing assistance to the Au thor ity to acqu ire, con tract and lease the hou sing un its. The annua l con tribu tion s or sub sidies also aid in help ing the Hou sing Au thority m ain tain its low rent character. Presen tly, the Hou sing Au thority m anages 300 pub lic hou sing un its at fou r differen t sites th roughou t the city o f W estw ego, LA. The Housing Authority also has modernization projects in progress from con trac ts d ated 1999 th rough The Board is comp osed o f fiv e M ayor o f the C ity o f W estw ego, t e rm s. m emb ers who are app oin ted by the LA. M emb ers serv e staggered year A. B asis o f Presen tation The Hou sing Au thority mu st comp ly w ith the Lou isiana State reporting laws (LSA - R.S. 24 :513 and 24 :514) which requires fin ancial statem en ts to b e p rep ared in accordance w ith generally accep ted accounting princip les (GAAP). Th e accomp any ing fin ancial statem en ts h av e b een p rep ared on the fu ll accrual b asis o f accoun ting in accordance w ith generally accepted accounting principles (GAAP) as applied to gov ernm en tal un its. The Governm en tal A ccoun ting Standards Board (GASB) is the acceptable standard -setting body for estab lish ing governm en tal accoun ting and financial rep orting p r in c ip le s.

9 TH E H OU SIN G A UT HOR IT Y O F TH E C ITY O F W E STW EGO, LA Notes to the Financial Statem en ts For the Year Ended June 30, 2001 NOTE i. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Basis of Presentation (Continued) The Hou sing Au thority also follow s the Financial A ccoun ting Standards Board (FASB) Statements and Interpretations, issued after N ovemb er 30, 1989, ex cep t for those that con flict w ith or con trad ict Governm en tal Accoun ting Standards Board (GASB) pronouncements. B. Rep orting En tity Fo r fin ancial statem en t reporting pu rp oses, the Hou sing Au thority o f W estw ego, LA is related to the City o f W estw ego, in that the Hou sing Au thority 's Board is appoin ted by the m ayor o f the City. How ever, the City has no financial resp on sib ility for the Hou sing Au thority and the City canno t imp ose its w ill on the Hou sing Au thority nor can th e Hou sing Au thority cau se the City to incur any financial burden as a resu lt o f its fin ancial decision s. The Hou sing Au thorlty 's oversight does not include the various tenant associations, which are legally separate en tities. C. Fund A ccoun ting Fund accounting is designed to demonstrate legal comp liance and to aid financial m anagement by segregating tran sactions re lating to certain governm en t function s or activ ities. A fund is a sep arate accoun ting en tity w ith a self-b alancing se t o f accoun ts. The Hou sing Au thority u ses on e fund to rep ort the fin ancial position and the resu lts o f its op era tion s. Proprietary/enterprise funds use the economic resources measurement focus. The accounting objectives are the d e te rm in a tion o f n e t in com e, fin an c ia l p o si tion, an d ca sh flow s. A ll assets and liab ilities associa ted w ith a p rop rietary fund 's activ ities are included on its b alance shee t. Prop rietary fund equ ity is segregated in to con tribu ted cap ital and retained earn ing s.

10 TH E H OU SIN G A UTH OR IT Y O F TH E C ITY O F W E STW EGO, LA Notes to the Finan cial Statem en ts For the Year Ended June 30, NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis o f A ccoun ting The accoun ting and financial reporting treatm en t app lied to a fund is detelnmin ed by its m easurem en t focu s. The Proprietary~Enterprise Fund is accounted for using a h isto rical financial resou rces m easurem en t focu s m uch like a bu sin ess en terprise. Fu ll accrual accoun ting is u sed and all deb t and fixed assets are recorded d irectly in the fund. E. Change in Presen tation The Housing Authority has elected to presen t its activity in a p rop rietary fund as suggested by the Departm en t of Housing an d U rb an D ev elopm en t. In the p redecessor aud itor 's pr ior year audit reports a general fund, capital projects fund, g en eral long -term deb t and general fix ed asset accoun t group s w ere u sed to p resen t the Hou sing Au thority 's resu lts o f operations; however, the Authority m aintain s its in ternal accoun ting record s as an en terpr ise fun d statem en t. F. Budget Practices The Hou sing Au thority has adop ted an op erating sub sidy budg et an d a cap italization m u lti -y ear bu dget, wh ich are on an o ther comp rehen sive b asis o f accoun ting. Becau se there is no requ irem en t for form al budget adop tion on en terprise fund s, the budgets are u sed by the Au thority as m anagem en t too ls, and the Au thority 's budgets are for gran t rep orting pu rp o ses. For th is reason, a comp ar ison of bu dget to actu al (non -GAAP basis) is not presented in these statements The b udge t is in tegrated in to the accoun ting record s and recorded on an o ther comp rehen sive b asis o f accoun ting and emp loy ed as a m an agem en t con trol dev ice. Budget comp arison s are p resen ted to the b oard p eriodically a t board m eetings. The b oard does no t u se encumb rance accoun ting or app rop riation s. ]0

11 TH E H O U S IN G A U T H O R IT Y O F TH E C IT Y O F W E STW EG O, LA No tes to the Financial Statem en ts For the Year Ended June 30, 2001 NOTE i. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Cash Cash includes a~ ounts in dem and depo sits and in terest - b earing dem and deposits. Under state law, the district m ay deposit funds in demand deposits, interest-b earing dem and depo sits, m on ey m arket accoun ts, or tim e deposits w ith state b ank s org an ized under Lou isian a law an d n ation al b ank s hav ing their p rincip al o ffices in Lou isiana. H. Inv e stm en ts Inve stm en ts are composed o f Certificates o f D ep osit, and are carried at fair m arket value, which approx im ates historical co s t. I. Inven tories A ll pu rchased inven tory item s are v alu ed at cost. A cqu isition o f m aterials and supp lies are accoun ted for on the pu rchase m ethod, that is, the exp end iture is charged w hen the item is pu rchased. J. Fix ed A ssets Fix ed assets are v alu ed at historical cost or fa ir m arket v alu e wh en h istorical cost is n ot av ailab le. Th e Hou sin g A u thority follow s the p olicy o f cap italizing costs o f assets valued at $~,500 or more. D ep rec iation is b ased on ths stra igh t-lin e m ethod ov er the e stim ated u se fu l life, in y ears, for the fo llow ing dep rec iab le categories o f fixed assets : Bu ild ing s and structures Fu rn itu re & F ix tu re s Im p rov em en ts Y e a r s Major repai~ expenditures such as painting, roofing and p lumb ing are not cap italized, b u t ch arged to exp en se wh en in cu rred.

12 TH E H OUSIN G AUTHORITY OF THE CITY OF W ESTW EGO, LA N otes to the Fin an cial Statem en ts For the Year Ended June 30, 2001 NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Fixed Assets (Continued) In the p ast the Hou sing Au thority did n ot cap italize in terest on fix ed assets. For the sake of con sistency and b ecau se o f the imm aterial a~ oun t o f in terest in cu rred in the curren t year, this practice w ill also not be followed for th e y ear ended June 30, To tal in terest exp en se in curred a t Jun e 3 0, equals $2,275. K. Compensated Ab sences T he Hou sing Au thority 's emp loy ees earn varying am oun ts o f vaca tion and sick leave each y ear. Emp loy ees can no t accrue sick leave ; how ever, vacation leave m ay b e accrued and u sed to supp lem en t sick leav e in th e even t o f catastroph ic illn ess. There fore, there is no liab ility for accum u lated sick leave relating to the Hou sing Au thority, bu t v acation m ay accrue up to a m ax im um o f 300 hours. Any unused vaca tion days in excess of 300 hours w ill be lost if not taken in the curren t y ear. The accompany ing statem en ts con ta in p rov ision for accrued compensated absences of $50,402. L. Revenue Recognition/ Deferred Revenue Am oun ts collected or drawn down b efore du e is treated as d eferred revenue. Ren tal fees w ill b e in cluded in revenue w h en co llected. Am ounts drawn down or dep osited for op eration s and m odern ization w ill b e recogn ized w hen earned. M. Prior Period Adjustment A prior period adjustment has $ 120,403 was recorded in the record ing o f the no te payable p rior y ear 's statem en ts. b een recorded in th e am oun t o f cu rren t y ear to re fle ct th e wh ich w as no t recorded on the 12

13 TH E HOU SING AUTHORITY OF THE CITY OF W ESTW EGO, LA Notes to the Financial Statem en ts For the Year Ended June 30, 2001 NOTE i. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Pen sion P lan The Authority provides a defined contribu tion p ension p lan for eligible full-tim e employees. The Au thority contributes an am oun t equ al to five p ercen t o f each emp loyee 's annual comp en sation to the p lan, and accoun ts for p en sion costs as in cu rred. Pen sion expen ses fo r the year ended Jun e 30, 2001 total $ 16,402. O. Per D iem Paid to th e Board The governing board of the Authority receives $ 150 for each m on th o f the year. The fo llow ing is a listing o f am oun ts receiv ed by each eouncilp erson. N am e Parnell Morris W alton A rnondin Carro ll Bonv illian Card elia Sykes Eric LeB lanc To tal Paid Am oun t $ 1,800 1,800 1,800 1,800 1,800 $ 9,000 P. U ses o f Estim ates The p rep aration o f financial statem en ts in con form ity w ith gen erally accep ted accoun ting p rincip les requ ires m an agem en t to m ake estim ates and asslu~p tion s th at affect certain rep orted am oun ts and disclosures. A ccordingly, actual resu lts cou ld d iffer from those estim ates. 13

14 TH E HOU SIN G A U TH OR ITY OF TH E CITY OF W E STW EGO, LA N otes to the Fin an cial Statem en ts For the Y ear Ended June 30, 2001 NOTE 2- CASH & CASH EQUIVALENTS The H ou sing Au thority has one bank accoun t w ith am oun ts in excess of Federal Deposit Insurance Corporation (FDIC) lim its. The am oun t in excess o f the FD IC lim its are secu red by securities p ledged in th e H ou sing Au th ority 's n am e by th e depository bank. The total m arket value of am oun ts p ledged against the Housing Authority 's balances equals $ 286,079 at June 30, Th is am oun t p lu s the FD IC in surance are m ore than adequate to cover the Au thority 's deposits. N OTE 3 - INV ESTM ENTS Th e fair m arket value o f the Hou sing Au thority 's certificate of deposit balance is $ 269,080.This amount is covered by $I00,000 of FDIC coverage. The difference of $169,080 is covered by securities p ledged by ~he b ank, wh ich holds the inv estm en t. N OTE 4 - FURN ITURE AND F IXTURE S Th e D istrict 's furn iture and fix tu res con sist o f the fo llow ing : Land $ 2,264,014 Buildings 6,330,509 Fu rn iture & Fix tures 323,699 Beginning Ending Balance Additions Deletions Balance 477, $2,264, ,807,738 46,849 20, ,106 Totals $ ~,918,222 $524,078 Less l Accumulated Depreciation Net Fixed A ssets $ (20,422) $2 2_41,858 (3,022,599) D ep reciation exp en se recorded in ~he en terp rise fund totaled $ 199,021 at June 30,

15 TH E HOUSING AUTHOR ITY OF THE CITY OF W ESTW EGO, LA NOTE 5 N o te Pay ab le No tes to the F inancial Statem en ts For the Year Ended June 30, 2001 The Hou sing Au thority has an ou tstanding no te at Jun e 30, 2001 as ou tlined b elow. The bonds note b ears in terest at 3. 5% per annum and is secured by land and bu ild ing s o f the Au thority. This note m atures 6/1/2002. D ecemb er 31 Am oun t ,000 Total $ 65,000 15

16 SU P P L E M E N T A R Y IN F O R M A T IO N

17 T H E H OU S IN G A U T H OR IT Y O F T H E C IT Y O F W E STW E G O, L A SCHEDULE OF FEDERAL EXPENDITURES (EXPENSES) FOR THE YEAR END ED JUN E 30, 2001 Federal Grantor/Pass-Through Grantor/ Program T itle CFDA Number Expenses U.S.D ep artm en t o f Hou sing and U rb an D ev elopm en t Pub lic and Ind ian Hou sing ,476 * Pub lic Hou sing Comp rehen siv e Gran t Program ,4 88 To ta l U.S. Dep artm en t o f Hou sing an d U rb an D evelopm en t 711,964 To ta l Exp end itu res o f Federal Aw ard s * Denotes Major Program Note : This schedule w as prepared on the full accrual basis of accounting. Deferred Revenue of $ 52,849 received by the Comp rehen sive g ran t has not b een exp ended as o f June 30, 2001 and is no t in cluded in the am oun ts listed as exp end itu res for th e y ea r en d ed Jun e 3 0, See accomp any ing n o te s. 17

18 E ILEEN SIIANKLIN A NDRUS C I~Rq'll,'lEl) PU BI3 C A CCOU NTA Nq A l.imiii;d LIA[~I1,11Y (~OMPANy R EPO R T O N C O M PLIAN CE A N D O N INTERN A L C O N TR O l, O V ER FIN A N C IA l. RE PO R TIN G BA SED O N A N A U D IT O F FIN A N C IA l. STA TEM EN TS PER FO RM ED IN A C C O R D A N CE W ITI1 GO VERNM EN T A UD ITIN G STA N DA RD S B oard of D irectors The tzlousing A uthority of the City of W es(wego,la 1010 Sixth St. W estw ego,la Ihave audited the financialstatem entsof the H ousing A uthority of the City of W estwego,la (thehousing Authority)asof and fortheyearended June30, 2001,and have issued nay reportthereon dated N ovem ber5,2001. Iconducted m y auditin aceordanee w ith generally accepted auditing standardsand the standardsapplicable to financialauditscontained in Governm entauditing Standards,issued by the Com ptrollerg eneralof the U nited States. Com pliance M emberofihe A m erican IfJslittlle ofcertified Public A eeol.lntanls M em berofthe Louisiana Society of Certified Public A ccountanls A spartof obtaiuing reasonable assurance aboutw hetherthe H ousing A uthority's financial statem ents are fi'ee of m aterial m isstatem ent,i performed tesls of its com pliance w ith certain provisions of law s, regulations, contracts, and grants, nonconrpliance w ith which could have a direct and m aterial effect on the determination of financialstatem entam ounts.h ow ever,providing an opinion on compliance with those provisions was not an objective of nay audit, and accordingly,]do J~otexpresssuch an opinion."the resultsof m y tesls disclosed no instances of noncom pliance that arc required to be reported under G overm nent A uditing Standards. ernalcontroloverfinancialreoortin~ rd St.,Ste.9 KI!NNER,LA Om ce:(504) l"~,x:(504) F.M Al.: csacpa~~aol.coln In planning and perfom ling m y audit, 1 considered the H ousing A uthority's internal control over financial reporting in order to determine nay auditing procedures for the purpose of expressing m y opinion on the financialstatem ents and notto provide assurance on the intern alcontrolover financialreporting.m y consideration of the intern alcontroloverfinancialreporting w ould notnecessarily disclose allm atters in tl~e intern alcontrolover financialreporting thatm ightbe m aterialw eaknesses.a m aterialw eakness is a condition iu w hich tim design or operation of one or m ore of the intenlalcontrolcom ponents does notreduce to a relatively low levelthe risk thatm isstatem entin am ountsthatw ould be m aterialin relation to the financialstatem entsbeing audited m ay occur and notbe detected w ithin a tim ely period by em ployees in the'normal course of perform ing their assigned functions.inoted no m atters involving the intern alcontroloverfinancial reporting and its operation thaticonsiderto be m aterialw eaknesses.

19 This report is intended for the information of the Board of the H ousing A uthority and its m anagem ent,the Legislalive A uditor of the State of Louisiana,federal,state and localaw arding agencies and pass-through agencies and is notintended to be used by anyone other thatthese specified parties.u nder Louisiana Revised Statute 24:513, this report is distributed by the Legislative A uditorasa public docum ent. EILEEN SH AN K LIN AN D U S CERTIFIED PU BLIC A CCOU NTAN T A IAM ITED LIA B ILITY CO M PA N Y N ovem ber5,

20 E 1LEEN SI1ANKLIN A NDRUS C]'.'RTIIqED PU BLIC A CCO U N 'I'A N q A IJMI]ID ElABILIIY COM*'^NV REPORT ON COM PLIANCE W ITItREQUIREM ENTS A PPLICA BLE TO EA CH M AJO R PR O G R AM A N D IN TER N A L C O N T R O L O V ER C O M PLIA N C E IN A C C O R D A N C E W IT It O M B C IR C U L A R A -133 B oard of D irectors The H ousing A uflaority of the City of W estw ego,la 1010 Sixth St. W estw ego,la Compliance M cm belof the A lne,rican Jnslilulc of Cerlified Public A ccol.lulanls M em berofthe Louisiana Sociely of Certified Public A ccotlnlanls I have audited the com pliance of the H ousing A uthority of the City of W estwego,la w ith the typesof com pliance requirem entsdescribed in the U.S,Office of M anagementand BudgettOM B) CircularA-13 3 Compliance Supplementthatare applicable to itsmajorfederalprogram forthe year ended June 30, 2001.The H ousing Authority's federal program s are identified in the sum m ary of auditor'sresultssection of the accom panying schedule of findings and questioned costs. Com pliance w ilh lhc requirem ents of law s,regulations,contraets,and grants applicable to each of its major federal programs is the responsibility of the Itousing A uthority'sm anagem ent.m y responsibility isto expressan opinion on the H ousing A uthority'scom pliance based on nay audit. Iconducted m y auditof com pliance in accordance w ith generally accepted auditing standards;the standardsapplicable to financialauditscontained in G overnm entauditing Standards,issubd by the Com ptrollerg eneralof the United States; and OM B Circular A-133, Audits of States, Local Governments,and Non-ProfitOrganizations.Thosestandardsand OM B Circular A -133 require that 1 plan and perform the audit to obtain reasonable assurance about w hether noncom pliance w ith the types of com pliance requirem ents referred to above that could have a direct and m aterialeffecton a m ajor federalprogram occurred.an auditincludes exam ining, on a test basis, evidence about the H ousing A uthorily's com pliance w ith those requirem entsand perform ing such otherprocedures, as I considered necessary in the circum stances.i believe that m y audit provides a reasonable basis form y opinion.m y auditdoes notprovide a legal determ ination of the H ousing A uthority's com pliance w itl~ those requirem ents rd St.,Sic. 9 KE~NI~k,LA Ovucl~:(504) FAX:(504) I'~MAI[.; csacpa@ aol.conl In nay opinion,the H ousing A uthority com plied,in allm aterialrespects, with the requirem entsreferred to above thatare applicable to itsm ajor federalprogram for the year ended June 30,2001.

21 InternalControlO vercom pliance The m auagem ent of the H ousing A uthority is responsible for establishing and m aintaining effective intern alcontrolovercom pliance w ith the requirem ents of law s,regulations,eonlraels, and grantsapplicable to federalprogram s.in planning and perform ing m y audit,iconsidered the H ousing A uthority 's iuterualcontrolovercom pliance w ith requirem ents thatcould have a direcl and m aterialeffecton amajorfederalprogram in orderto determinemy auditing proceduresfor the purpose of expressing nay opinion on com pliance and to testand reporton the intern alcontrol overcom pliance in accordance w ith O M B CircularA M y consideration of the internal control over com pliance w ould not necessarily disclose all m atters in the internal control thai m ight be m aterial w eaknesses.a m aterial w eakness is a condition in w hich the design oroperation of one orm ore of the internalcontrolcom ponentsdoes notreduce to a relatively low levelthe risk thatnoncom pliance w ith applicable requirem entsof laws,regulations,contracts and grantsthatwould be materialin relation to a major federal program being audited m ay occurand notbe detected w ithin a tim ely period by em ployeesin the norm al course of perfora ting their assigned functions.] noted no m atters involving internal controlovercom pliance and itsoperation thaiiconsiderto be m aterialw eaknesses. This report is intended for the information of the Board and m anagem ent of tile /lousing A uthority of the City of W estw ego,la,the Legislative A udilorof the State of Louisiana,federal, state mad localaw arding agencies and pass-through agencies and is notintended to be used by anyone otherthatthese specified parties.underlouisiana Revised Statute 24:513,this reportis distributed by the Legislative A uditor asa public docam em. Eileen Shanklin A ndrus CERTIF/ED PU B LIC A CC O UN TA N T A LIM ITED LIA B ILITY CO M PAN Y N ovem ber5,2001 2

22 TIlE H O U SING AUTH O R ITY O F TItE CITY O F W ESTW EG O, LA. SCIIEDULE OF FINDINGS AND QUESTIONED COSTS For lhe year ended June 30,2001 Fin ancialstatentents Type of auditor'sreportissued: U nqualified InternalC ontrol hllernalc ontrolo ver FinancialR eporting Section 1.Sum m ary of A uditor's R eports M aterialw cakncss(es)identified Yes.X No Reportable Condition(s)identified thatis notconsidered to be m aterialw eaknesses Y es X none reported C om pliance N oncom pliance m aterialto financial Statem entsnoted? Y es X N o l'ederala wards IuternalCoutrolovermajorprograms M aterialweakuess(es)identified? Yes X No Reportableeoudition(s)identified thatisnotconsidered to be nmterialweakness(es)? Yes X nonereported Type ofauditor'sreportissued on compliance for m ajorprogram s= unqualified. A ny auditfiudings disclosed that A re required to be reported Iu accordance w ith scctiou 510 (a)ofcirculara-133? Y es X N o 22

23 TH E H O USING AUTH O RITY O F TH E CITY O F W ESTW EG O,LA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For 1he year ended June 30,2001 Section 1 Sum m ary of A uditor's R eports identification ofm ajorprogram s CFDA Num ber(s) am e of FederalProl~ram or C luster Public H ousing C om prehensive G ran! D ollar threshold used to distinguish Between type A and type B program s: $ 300~00~) A uditec qualified as low -risk auditee? X Y es _ N o Section IIFinancialStatem entfindings N O N E N O T ED Section 111FederalAward Findingsand Questioned Costs N O N E N O TED

24 3"liE H O U SIN G A U TIIO R ITY O F TItE C ITY O F W ESTW EG O,LA STATUS OF PRIOR YEAR'S FINDINGS AND QUESTIONED COSTS For file year ended June 30,2001 N O N E R EPO R TED IN PRIO R Y EA R. M A N A G E M EN T 'S C O R R EC TIV E A C TIO N PI,A N N O N E N EED E D

25 TIlE H O U SIN G A U TH O R ITY O F TH E CITY O F W ESTW EG O,LA SC IIED U LE O F C O M PR EItEN SIV E G R A N T A C T IV ITY L A 48P For tile Y ear E nded June 30,2001 Project# LA 48PO Funds A pproved FundsA dvanced FundsR em aining $ 386,837 (386,837) $ ~ 0- Funds A dvanced $ 386,837 Funds Expended Excess(Deficiency) $