kelcase DateII-15-CO

Transcription

1 H O U SIN G A U T H O R IT Y O F TH E T O W N O F ST.M A R T IN V ILL E ST.M A R T IN V IL L E,L O U ISIA N A G EN ERA L PU RPO SE FIN A N CIA L STA TEM EN TS A N D IN D EPEN D EN T A U D ITO R S R EPO R TS A S O F A N D FO R TH E Y EA R EN D ED M A R CH 31,2000 W ITH SU PPLEM EN TA l_,in FO RM A TION SCH ED U LES!; 'Fit. r,(~'i (i~,:~: (r I~i::':~ ~.,, I. ~.0 ~[:('C:I;;~"/ ;. lii'jot?('1~('~);y~;';i~,lj?[?til)',[( CfP,dbqS. "Ihe re:',.~r!i5 ~:v,:;!~h,f~)rg:k::',;:ih:r?:'c,k): ~:tiill [5(:'-";l [.":"q.'of'ice C[i/e [~q!;:;, '.",,'*:',di~(; PlrlJ, \x4!? e L, ;O~)li(~t(.!,a[the 0;;I(:C)I"the psrjsh c:}e~k ofcourt. kelcase DateII-15-CO WILLIAM DANIEl.M CCASKILL,CPA A PRO FESSIONAL A CC O UN TIN G C ORP ORA TION 415 M A G N O LIA LA N E M AN D EVILLE,LOU ISIA N A 70471

2 TA B LE O F CON I'EN TS IN D EPt'N D EN T A U D ITO R 'S R EPO RT ON G EN ERA L PU R P()SE FIN A N CIA L STA TEM EN TS AN D SU PPLEM EN TA RY SCH EDU LE O F EX PEN D ITU RES OF FED ERA L A W A RD S EX H IBITS -G t:'n ERA L PU RPO SE FIN AN CIA L STA TEM EN TS A B C D E CO IvlBIN ED BA LA N CE SH EET A T M A R CH 31, 2000,A LL FU N D S CO IVlt~IN ED STA TEM EN T O F REVEN U ES,EX PEN DITU RES AN D Ct[A N G ES IN R ETA IN ED EA RN IN G S--A LL FU N D S FO R TH E Y EA R EN D ED M A RCH 31,2000 (?()M t{in I-2D S'FA TEM EN T O F CA SH FLO W S-A LL FUN D S CO M BIN ED STA TEM EN T O F REV EN U ES,EX PEN D ITU RE,S A N D CItA N G E 1N RE TA IN ED EA RN IN G S-BU D G ET V S.A CTUA L STA TEM EN T A N D CER TIFICA TIO N O F A CT UA L M O D ER N IZA TIO N CO S']'S --PR O JECT LA 48PO N O TES TO TH E FIN A N CIA L STA TEM EN TS A N D A C CO M PA N Y IN G IN FO RM A TIO N SU PPLEM EN TA R Y IN FO RM A TIO N SC IIED U LES- G A A P BA SIS SCItED U LE O F EX PEN D ITU R ES O F FED ERA L A W A RD S CO M BIN IN G BA LAN CE SH EET-A LL FUN D S CO M BIN IN G STA TEM EN T O F RE V EN U ES,EX PEN SES,A N D CH A N G ES IN RETA IN ED EA RN IN G S-A LL FU N D S REPO RT ON CO M PLIA N CE AN D ON IN TERN A L CON TRO L O V ER F1N A N ICA L REPO RTIN G BA SED ON A N A U D IT O F FIN AN CIA L STA TEM EN TS PERFORM ED IN A CCO RD AN CE W ITH G O V ERN M EN T AU D ITIN G STA N D A RD S REPORT ON COM PLIANCE W ITH REQUIREM ENTS APPLICABLE TO EACH M A JO R PRO G RA M AN D IN TERN A L CON TROL O V ER CO M PM A N CE IN A C CO R D AN CE W ITH O M B CIR CU LA R A -133 SU M M A R Y SC H E D U L E O F PR IO R A U D IT FIN D IN G S

3 SC H ED U LE O F A D JU STIN G JO U RN A L EN TRIES-N O N E SCHEDULE OF CURRENT FINDINGS AND QUESTIONED COSTS CO RR E(2T[VE A CTION PLAN -N ON E

4 W ILLIA M DA N IEl,M C CA SK 1LL,CPA A PR O FESSIO NA L A C C O UN TIN G C O R PO RA TIO N 415 M A GN O LIA LAN E M A N D EV ILLE,LO U ISIA N A I[sLEPIIONE FAX 504-8, CELLULAr.5; ,198 E-M AIL I)AN.N. Y MA(,:~.(.'M_Q CQM M EM BER LOUISIANA SOCIETY OF CPA'S M ISSISSIPPISOCIETY OF CPA'S AM ERICAN INSTITUTE OF CPA'S BOA RD O 1,'CO M M ISSION ERS H O U SIN G A UTI-IO R ITY O F TH E TO W N O F ST.M A RTIN V ILLE ST.M A RTIN V II,LE.LO U ISIA N A INDEPENDEN r AUDrFO R'S REPORT IJNQUALIFIEI)OPINION ON GENERA[,PU IPOSF,[!M F-N'I'AR Y 5~.fiLEUI-F OF EXPENDITURES OF FEDAIM L,.IWARDS I have audited the accom panying general purpose financial statem ents of the H ousing Authority ofthetown ofst.m artinville(pha)asof and fortheyearended M arch 31, 2000,as listed in the table of contents. These generalpurpose financialstatelnents are the responsibility of the PH A 'sm anagem ent. M y responsibility isto expressan opinion on these tgerleralpurpose financialstatem entsbased on m y audit. conducted m y auditin accordance w ith generally accepted auditing standardsapplicable to financial audits contained in G overnm ent A uditing _ Standar _d_s_, issued by the C om ptrollerg eneralof the U nited States,and provisions of the Louisiana G overnm ental Audit G uide. Those standards required that I plan and perform the audit to obtain reasonable assurance aboutwhetherthe generalpurpose financialstatem ents are free of m aterialm isstatem ent. A n auditincludes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the genelalpurpose financialstatem ents. A n auditalso includes assessing the accounting principles used and the significantestim ates m ade by inanagem ent, as w ell as evaluating lhe overall general purp ose financial statem ent presentation. Ibelieve thatm y auditprovidesa reasonable basisform y opinion. In m y opinion,the generalpurpose financialstatem entsreferred to above presentfairly in allm aterialrespects,the financialposition of the H ousing A uthority of the Tow n of St. M artinville asof M arch 31,2000,and the resultsof itsoperationsand the cash flow sof its propriety fund types for the year ended in conform ity w ith generally accepted accounting principles. A s described in N ote A to the financial statem ents, the PHA has changed from the G overnm entalfundsto the Enterprise Fundsm ethod forthe yearended M arch 31,2000.

5 In accordance w ith G overnm ent A uditing. Standards,I have also issued a report dated A ugust 29, 2000 on m y consideration of the PH A 's internal control over financial reporting and m y tests of its com pliance w ith certain law s,regulations,contracts, and grants. That report is an integral part of all audit perform ed in accordan ce w ith GovermnenlAuditing Standardsand should be read in conjunction with thisrepma in considering the resultsof m y audit. M y auditw as conducted forthe purpose of form ing an opinion on the generalpurp ose financialstatem ents of the PH A taken as a w hole. The com bining mid individualfund financialstatem ents and schedules,asw ellas the accom panying schedule of expenditures of federalaw ards ispresented forpurposes of additionalanalysis asrequired by the U.S. O fi ce of M anagem entand BudgetCircular A -133.A uditsof States LocalG overnm ents and N on Profit9y~anizations,and is nota required part of the generalpurpose financial stateman ts. Such information hasbeen subjected to theauditing proceduresapplied in the audit of the general purp ose financial statem ents and, in m y opinion, is fairly presented in all m aterial respects in relation to the financial statem ents and an y other included supplem entary inform ation taken asa w hole. Thisreportis intended solely forthe intbrm ation of the PH A,and forfiling with the D epar tm ent otherpurpose. A ugust29,200( W illiam D anielm ccaskill,cpa A ProfessionalA ccounting Corporation

6 H ousing Authority ofthe Tow n ofst.m artinville CO M BINED BALANCE SHE['T --ALl.FUNDS March EXHIBIT A A LL FU N D S ASSETS C urrentassets: Cash and cash equivalents "ienants rents recen,able(net) Accounts and notes receivables Prepaid expenses and otherassets Inventories Interprogram due from Investm ents Totalcurrentassets Fixed assets (net) Totalassets 141, , ,208, LIABILITIES AND FU ND EQ U ITY C urrentliabilities: Accounts Payable and accrued liabilities Deferred revenues C urrentportion oflong-term debtcapitalprojects Security deposes Interprogram due to 30, Totalcurrentliabilities Nencurrentliabilities: N oncurrentliabilities-other Noncurrentportion of long-term debt Totalliabilities Fund equity: Contributed capital(net) Retained earnings Totalfund equity ,850,043 (522,782) 1,327,261 Totalliabilities and fund equity see notes to financialstatem ents

7 Housing Authority ofthe Town ofst.m artinvile C O M BIN IN G STATI-M I-N T O F R EV EN U ES A N D EX PEN SE EXHIBIT B Forthe yearended M arch 31,2000 O perating revenues: N ettenantrevenue Tenantrevenue-other Interestincom e O therincom e HU D PHA grants O thergovernm entgrants Totaloperating revenues O perating expenses: Adm instration fenantservices Utilities O rdinary m aintenance G eneralexpense Protective services Non-routine m aintenance Housing assistance paym ents O perating expenses before depreciation Operating income/(ioss)before depreciation Depreciation expense Netoperating inceme/(ioss)afterdepreciation A LL FU N D S 220,319 51,262 7,448 3, ,374 86, , (46,249) 152,837 (199,086) see notes to financialstatem ents

8 H ousing A uthority ofthe Tow n ofst.m artinville C O M BIN IN G S IATEM ENT O F CASH FLO W S --A LL FU N D S Forthe YearEnded M arch EX HIBIT C page 1 of 2 C ash flow s from operating activities: C ash received frorn tenants Cash received frorn otherincom e Cash paid forgoods and services C ash paid to em ployees Netcash provided by operating activities Cash flow s from noncapital financing activities: O perating grants and subsidies A LL FU N DS 271,581 3,406 (265,086) (102,096) (92,195) Cash flow s from capitaland related financing activities Proceeds from grants Acquistion ofcapitalassets Proceeds from issuance ofnotes Acquistion ofcapitalassets Netcash used forcapitaland related financing activities Cash flow s from investing activities Intereston investm ents see notes to financialstatem ents

9 Housing Authority ofthe Town ofst.m artinvile C O M BIN IN G STATEM ENT O F:CASH FLO W S--A LL FLO W S Forthe YearEnded M arch EXH IBIT C page 2 of2 Reconciliation ofoperating incom e to netcash provided by operating activities Adjustments to reconcile operating incom e to netcash NetAdjustments-Non Cash -Accrued Leave (Increase)decrease in tenant rents receivable (increase)decrease due from US DeptofHUD (Increase)decrease due in supplies inventory (Increase)decrease in prepaid insurance (Increase)decrease in undistributed debits (increase)decrease in accts receivable misc. Increase (decrease)in accounts pay othergovts Increase (decrease)in accounts payable and accrued liabilities Increase (decrease)in accountspayable HUD Increase (decrease)in accrued vacation pay Increase (decrease)in deferred revenues Increase (decrease)in tenantsecurity deposits Totaladjustments ) (4,933.00) (5,924.08) (277.00) (145.31) (2,721.05) 13, , C hange in cash and equivalents Beginning Cash Cash and cash equivalents end ofyear-exhibita (22,525.84) 163, see notes to financialstatem ents

10 Housing Authority ofthe Tow n ofst.m artinvile EXHI[~IT D St.M artinvile,louisiana Com bined Statem entofrevenues and Expenditures--Budgetvs.Actua G eneralfund Forthe YearEnded M arch 31,2000 R E!V EN U ES LocalSources: [)w e ling Rental InterestC harges Receipts from tile Sale ofequipm ent O ther FederalSources: O perating Subsidy AnnualC ontributions G rants TotalRevenues EXPEN D ITU RES Current: A dm instration [enantsalaries Utilities O rdinary M aintenance & O perations Protective Services G eneralexpenditures Extraordinary M aintenance Housing Assistance Paym ents Facilities Acquisition & C onstruction PriorYearAdj.Affecting ResidualReceipts Depreciation Expense Interest& Bank C harges TotalExpenditures Budget 289, A~ ua 271, Favorable Variance (17,909.00) , (3,744.00) , , , (19,245.00) 72, , , , , , , , (120.00) (7,669.00) (37,177.00) (4,113.00) (8,000.00) , , , (19,783.00) see notes to financialstatem ents

11 H ousing Authority ofthe;tow n ofst.m artinville St.M artinville,louisiana PHA's Statem entand C ertification ofactualm odernization Costs C O M PLETE[)PR O JECT LA48PO EX IH IBIT E Forthe YearEnded M arch The actualmodernization costs ofthe projectare as fo lows PRO JECT LA48PO Funds A pproved Funds Expended Excess offunds A pproved FU N D S A DVA N C E[) H U D Funds Expended Excess offunds Advanced 1.The distribution ofcostsby the projectas shown on the FinalStatem entofm odernization Costdated Septem ber27,1999 accom panying the ActualM odernization C ostc ertificate subm itted to H U D forapprovalis in agreem entw ith the PHA's records. 2. A llm odernization costs have been paid and allrelated liabilities have been discharged through paym ent. see notes to financialstatem ents

12 TH E H O U SIN G A UT H O R IT Y O F TttE T O W N O F ST.M A R TIN V ILL E ST.M A RTIN V ILLE,LO U ISIA N A N OTES TO TH E FIN AN CIA L STA TEM EN TS Housing Authorities are chartered as a public corporation under the laws (I_,SA-RS 40:391)of thestate of Louisiana.forthepurposeof providing safe and sanitary dwelling accom m odations for the residents of St. M artinville, Louisiana. This creation w as contingentupon the localgoverning body of the city orparish. The PH A is governed by a five m em her Board of C om m issioners. The m em bers,appointed by the M ayorof St. M artinville,lonisiana,serve a fouryearstaggered tenn. Underthe United States Housing A ctof1937,asam ended,the U S D epar tm entof HU D has direct responsibility for adm inistering low rent housing program s in the U nited States. A ccordingly,h U D has entered into an annual contributions contract w ith the PHA forthe purpose of assisting the PHA in financing the acquisition,construction and leasing of housing unitsand to makeannualcontributions(subsidies)to the PHA forthe purpose of m aintaining this low rentcharacter. N O TE A (1~LFj a a~n:i_a_tre [L~ rtin g EntitV Generally accepted accounting principlesrequire thatthe financialstatem entspresentthe accountsand operationsof the PHA and itscom ponentunits,entitiesforwhich the PHA is considered to be financially accountable. Blended com ponentunits,although legally separate entities,are, in substance,part of the PH A 's operations and data from these units,if"any ar e com bined w ith data of the PH A. Each discretely presented com ponent,if any,w ould be reported in a separate colum n in the com bined financial statem ents to em phasize that it is legally separate from the PtIA. A s of M arch 31,2000,and forthe fiscal then ended, the PH A had no discretely presented com ponent units or any com ponem unitsrequired to be blended in these financialstatem ents. (2)_ChAal~tein Accounting Principle Forthe yearended M arch 31,2000,the PHA haschanged from the GA A P Govern m ent FundsM ethod to the G A A P Enterp rise M ethod. The Enterprise Funds M ethod accounts for operations in a m anner sim ilar to a private business. U ndertkts m etb.od.,airassets,including fixed assets,and allliabilities ar e in one fund,and on(;financialstatem ent. The Enterprise Fund recognizes revenues and expenses on the full accrual basis. Revenuesare recognized w hen earned and becom e m easurable. Expensesare recognized

13 in the period incurred,if m easurable. In the priorm ethod used,the G overnm entalfunds M ethod,~he m odified accrualm ethod w asused. D epreciation expense m ust be recognized for the Enterprise Fund. Under the Governm enta l Funds M ethod,depreciation w as optional and the PItA elected nat to recognize it. (3) 13u.dge_t_a!y I_)ata The PH A isrequired by its H U D A nnualcontributionscontractto adoptannualbudgets forthe Low RentH ousing Program and the Section 8 Program s. A nnualbudgetsare not requiredforciap grantsastheirbudgetsareapproved forthelength oftheproject.both annualand projectlength budgetsrequiregrantorapproval. (4) Cash_a_n_d C_~_t_sh Equivalents The entity defines cash and cash equivalents to include certificates of deposit,m oney m arketfunds,savingsaccounts,and dem and deposits. (5) l"en a_xk.!~_9_c_e_i_v able s Receivables tbr rental and service charges are reported in the General Fund, net of allow ancestbrdoubtfulaccounts. (6) Cong.~ensated Absences A uthority em ployees accrue personal leave,or com pensated absences,by a prescribed form ula based on length of service. N O TE B.-.CA SH D EPO SITS W ITH FIN A N C IA L IN STITU TIO N S Itisentity'spolicy fordepositsto be secured by collateralvalued atm arketorpar,which is low er,less the am ountof the FederalD epositinsurance Corporation insurance. The entity'sdepositsare categorized to give an indication of the levelof risk assum ed by the entity atd ecem ber31,1999. The categories ar e described asfollow s: Category 1-- Insured orcollateralized w ith securitiesheld by the entily orby itsagentin the entity'snam e. C ategory 2 -- Collateralized w ith securities held by the pledging finan cialinstitution's trustdepartn~entoragentin the entity'snam e. Category 3 -- U ncollateralized,uninsm 'ed and unregistered,butw ith securities held by the bank,itsagenl,pledged to the PH A,butnotin lhe PHA 'snam e. Cash Deposits,categorized by levelof risk,(atcost,which approximatesmarket)are:

14 C ategory Total Bank Balances 2 $141, ,000 41,367 Even though tile pledged securitiesare considered uncollateralized (Category 3)under the provisions of G A SB Statem ent 3, Louisiana Revised Statute 39:1229 im poses a statutory requirem ent on the custodialbank to advertise and sellthe pledged securities w ith 10 daysof being notified by the PHA thatthe fiscalagenthasfailed to pay deposited funds upon dem and. N O TE C -- A C'IIV ITIES O F TH E PH A AtM arch 31,2000,the PH A w asm analging 124 unitsof low -rentunderfw N O TE D -- C ON TIN G EN CIES Tb,e entity is.~uh~ectto possible examinations by federalregulators wb.o deten-aine com pliance w ith term s,conditions,law s and regulations governing grants given to the entity in thecunentand prioryears. These exam inationsm ay resultin required refund by the entity to federalgrantorsand/orprogram beneficiaries. N O TE E -- RETIR EM EN T PLA N The entity provides benefits for all of its full-tim e em ployees through a defined contribution plan. In a defined contribution plan, benefits depend solely on am ounts contributed to lhe plan,plus investm entearnings. Em ployeesare eligible to par ticipate after a six m onths exclusionary period. The em ployees contribute 5% an d the entity contributes8% of the em ployee'sbase salary each m onth. The entity'scontributionsfor each em ployee (an d interest allocated to the employee's account) are vested 20% annually for each year of par ticipation. An em ployee is fully vested after 5 years of participalion. The entity'stotalpayrollin fiscalyear ended M arch 31,2000 w as $102,096.The entity 's contributionsw ere calculated using the base salary am ountof $102,096. Contributionsto plan were $5, an d $8, by the em ployee an d the entity,respectively.

15 N O TE F --D ISC LO SU RES A BO U T FA IR V A LU E O F FIN A N CIA L IN STRU M EN TS The follow ing m cthods and assum ptions w ere used to estim ate the fairvalue of each class of financialinstrum ents for w hich itis practicable to estim ate thatvalue: Cash and Investm ents The carl~/ing am ount approxim ates fair value because of the short m aturity of these instrum ents. N O TE G -- U SE O F EST1M A TF.S IN TttE PREPA RA TIO N O F FIN A N CIA L STA TEM EN TS The preparation of financialstatem entsin conform ity w ith generally accepted accounting principles requires m anagem ent to m ake estim ates and assum ptions thataffectcertain reported am ounts and disclosures. A ccordingly,actualresults could differ from those estim ates. N OTE It -- CON D U IT D EBT O BLIG ATION S To provide fordevelopm entan d m odernization of low renthousing units,the authority issued N ew H ousing A uthority Bondsand Perm anent N otes- F.F.B. These bondsand notesare payable by HU D and secured by annual contributions. The bondsan d notesdo notconstitute a debtby the authority and accordingly have notbeen reported in the accom panying financialstatem ents.

16 H ousing Authority ofthe Tow n ofst.m artinville Tow n ofst.m artinville,louisiana SC H ED U LE O F IEX PEND ITU R ES O F FEDERA L AW A R D S Forthe yearended M arch 31,2000 SC H EDU LE FED ERA L AG EN CY C FDA N O. FederalAw ard Expenditures U S Departm entofhousing and Urban Developm entd irectprogram s Low Incom e Housing: O perating Subsidy Leased Developm ent TotalLow Incom e Housing Section 8 C luster: V ouchers Certificates M oderate Rehabilitation New C onstruction SubstantialRehabilitation TotalSection 8 C luster Com prehensive G rants C la P Public Housing Drug Elim ination Program : PH D EP Youth Sports TotalPH D EP Shelter+ Care HO PE HO M E Child Care Food Program (USDA) TO TA L FED ER A L EX PEN D ITU RES NO TE:This schedule ofexpenditures offederalaw ards is prepared on the governm entalg AA P enterprise m ethod ofaccounting = = = = = =.-= = ~ _- = = = see notes to financialstatem ents

17 H ousing Authority otthe Tow n ofst.m artinvile CO M BINING BALANCE SH FET-ALL FU NDS M arch SC HED ULE I page t of2 A SSETS : CURRENT AssETS Cash-unrestricted Cash-restricted-m odernization and developm ent Cash-otherrestdcted Cash-tenantsecurib/deposits TotalCash Low Rent ClA P Total , , A ccounts and notes receivable: Accounts receivable-pkla projects Accountsreceivable-HLID otherprojects Accounts receivable-othergovernm ents Accounts receivable-m isce laneous Accounts receivable-tenantdweling rents A lowance fordoubtfulaccounts-dweling rents A low ance fordoubtfulaccounts-other N otes and m ortgages receivable-current Fraud recovery A low ance fordoubtfulaccounts-fraud Accrued interestreceivable TotalReceivable.netofa low ances fordoubtfulaccounts , C urrentinvestm ents: Investm ents-unrestricted Investm ents-restricted Prepaid Expenses and O therassets Inventories Interprogram Due From Am ounts to be provided TOTAL CURREN1 ASSETS NO NCURRENT AS,~ETS: Fixed A ssets: Land Buildings Furniture,Equipm ent& M achinery-dw e lings Furniture,Equipm ent& M achinery-a dm instration Leasehold Im provem enls C onstruction in Progres.,~ Accum ulated Depreciation "rotalfixed Assets,NetofAccum ulated Depreciation N otes and m ortgages receivable-noncurrent N otes and m ortgages rece~vable-pastdue O therassets Undistributed debits Investments in jointventures 80,997 2,682,563 71,188 30, (2,557,675) ,564 13, ,686 (120,855) ,997 3, ,958 44, , ,686 (2,678,530) 1,208,712 TOTAL NO NCURREN1 ASSETS TOTAL ASSETS 747, ,731 1,208, see notes to financialstatem ents

18 Housing Authority oftile "[ow n ofst.m artinvile COM BINING BALANCE SHEET-ALL FUNDS M arch SCHEDULE l page 2 of2 LIABILITIES AND EQ UITY: LIABILITIES: CURRENT LIABILITIES Bank overdraft Accounts payable <=90 days Accounts payable >=90 days Accrued w ages payrolltaxes payable Accrued com pensated absenses Accrued contingency liability Accrued interestpayable Accounts payable-hud PHA program s Accounts payable-ph,t~prejects Accounts payable-ethergovernm ents Tenantsecurity deposits Deferred revenues Currentportion ofl+t debt-capitalprojects Currentportion ofl-t debt-operating borrowings Othercurrentliabilities Accrued liabilities-ol:he r Inter-program -due to TOTAL CURRENT LIABILITIES NO NC URRENT LIABII.ITIE;S Long-term debt,netofcurrent-capitalprojects Long-term debt,netofcurrent-operating borrow ings Noncurrentliabilities-other TO TAL NO NC U R RENT LIA BILITIES TO TAL LIABILITIES Low Rent C la P Total ,319 25, ,621 17,319 25,535 2,339 58,814 58,814 EQUITY Investm entin generalfixed assets C ontributed C apital: Long-term DebtG uaranteed NetHUD PHA contributions OtherHUD contributions Othercontributions Totalcontributed capital Reserved fund balance: Reserved foroperating activities Reserv ed forcapitalactivities Totalreserv ed fund balance Undesignated fund balance/retained earnings TOTAL EQ UITY TOTAL LIABILM ES AND EQ UITY see notes to financialstatem ents 641, , , (522,782) 866, , (522,782) 1,327, ,075

19 Housing Authority ofthe Tow n ofst M artinvile CO M BINING STATEM ENT O F REVENUES AND EXPENSE Forthe yearended M arch 31,2006 REVENUE Nettenantrevenue Tenantrevenue -other iotaltenantrevenue HUD PHA grants Othergovernm entgrants Investm entincom e unrestricted Mortgage interestincom e Fraud recovery O therrevenue G ain orloss ofthe sale affixed assets Investm entincom e-restricted Low Re~ SCHEDULE C lap 220,319 51, , page 1 of2 Total 220,319 51, ,581 38,498 7, TO TAL REVENUE 320, ,933 EXPENSES Adm instrative: Adm instrative salaries Auditing fees O utside m anagem enlfees Com pensated absences E-m ployee benefitcontributions-adm instrative Otheroperating-adm instrative -renantservices: Tenantservices-salaries Relocation costs Fm ployee benefitcontributions-tenantserv ices Tenantservices-other Utilities W ater Electricity G as Fuel Labor Em ployee benefitcontributions-.utilities O therutilities expense O rdinary m aintenance and operations O rdinary m aintenance and operations-labor O rdinary m aintenance and operations-m aterials and othe[ O rdinary m aintenance and operations-contractcosts [:_m ployee benefitcontributions-ordinary m aintenance Protective services Protectwe serv icesqabor Protective services-othercontractcosts Protective services-other Em ployee benefitcontributions-protective serv ices see notes to financialstatem ents 55, ,632 16, ,876 51, ,583 24,602 45, , ,632 16, ,876 51, ,583 24,602 45,

20 H ousing Authority olthe Tow n ofst.m artinville COM BINING STATEM ENT C)F REVENUES AND EXPENSE Forthe yearended M arch 31,2000 SC HED U LE IJI page 2 of2 G eneralexpenses Insurance prem ium s Othergeneralexpense(,; Paym ents in lieu oftaxes Bad debt-tenantrents Severance Expense Extraordinary M aintenance Severance Expense Casualty Ioss-nonca;)italized Low Rent ClAP Tota 29,048 17, , ,048 17,319 5,515 3, OPERATING EXPENSPS BEFO RE DEPRECIATIO N NET O PERATING INCOM E BEFO RE DEPRECIATIO N 366,680 (46,249) (46,249) Depreciation expense Netoperating incom e (loss)afterdepreciation 128,666 (174,915) 24,171 (24,171) 152,837 (199,086) see notes to financialstatem ents

21 W IL L IA M D A N IEL M C C A SK IL L,C PA A PR O FE SSIO N A L A C C O U N T IN G C O R PO RA TIO N 415 M AGN OLIA LAN E M A N D EV ILLE,LO U ISIA N A TELEPHON E FAX CELLULAR E-M A l,[)a.j~in Yb4A(~~C',.M O~C O M M EM BER LOUISIANA SOCIETY OF CPA'S M ISSISSIPPISOCIETY OF CPA'S AM ERICAN INSTITUTE OF CPA'S REPO RT O N CO M PLIANCE AND ON INTERNAL CON FROL OVER FINANCIAl,REPORTING BASED ON AN AUDIT O F FINANCIAL STATEM ENTS PERFORM ED IN ACCO RDANCE W ITH BO A RD OF CO M M ISSION ERS H O U SIN G A U TItO PdTY O F TH E ST.M A RTIN V ILLE ST.M A RTIN V 1LLE,LO U ISIA N A Ihave audited the financialstatem entsof the H ousing A uthority of the C ity of Cohunbus (PHA),asofand forthe yearended M arch 31,2000,and haveissued my reportthereon dated A ugust29,2000. I conducted m y audit in accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in G ovem nlenta uditstandards issued by the Com ptrollerg eneralof the U nited States. C o mlg!jli_a:n_c_e. A s part(if obtaining reasonable assurance aboutw hether the PH A 's financialstatem ents are free of m aterial m isstatem ent, I perform ed tests of its com plian ce w ith certain provisions of law s,regulations,contracts and gran ts,noncom pliance w ith w hich could have a direct mad m aterialeffect on the determ ination of financial statem ent am ounts. However,providing an opinion on compliancewith thoseprovisionswasnotan objective of m y auditand accordingly,i do notexpress such an opinion. The results of m y tests disclosed no instances of noncom pliance that are required to be reported under G overn m enta uditin~ Standards. InternalControlO verfinancialredortin In planning an d perform ing m y audit, I considered the PH A 's internal control over financial reporting in order to detel~nine m y auditing procedures for tile purpose of expressing m y opinion on the financialstatem ents an d notto provide assuran ce on the intern alcontrolover financialreporting. M y consideration of the internalcontrolover financialreporting w ould notnecessarily disclose allm atters in the intern alcontrolover financial reporting that m ight be m aterial w eaknesses. A m aterial w eakn ess is a condition in w hich the design or cooperation of one or m ore of the internal control com ponents does notreduce to a relatively low levelthe risk thatm isstatem ents in the am onnls ~hatwould be m aterialin relm,ion to the financialstatem ents being audited m ay

22 occur and notbe detected w ithin a tim ely period by em ployees in the norm alcourse of perform ing their assigned functions. I noted no m aters involving the intern alcontrol overfinancialreporting and itsoperation thaticonsiderto be m aterialw eaknesses. This reportis intended forthe inform ation of the audit H U D. H ow ever,thisreportisa m atterof public record A ugust29,2000 A ProfessionalA ccounting Corporation

23 W ILLIA M DA N IEL M C C A SK ILL,C PA A PR O FE SSIO N A L A C C O U N T IN G C O R PO R A T IO N 415 M A GN O LIA LA N E M AN D EVILLE,LOU ISIAN A TELEPIIONE FAX 504-g CELLULAR D ANN VMAC~LCMOC~)M M EM BER LOUISIANA SOCIETY OF CPA 'S M ISSISSIPPISOCIETY OF CPA'S AM ERICAN INSTITUTE OF CPA'S REPORT ON COM PLIANCE W IT IREQIIIREM EN'I'S AI'PLICABLE TO EACH M AJOR PROGRAM AND INTERNAL CONTRO L OVER COM PLIANCE [N ACCORDANCE W ITH OM B CIRCULAR A-133 BO A R D O 17CO M M ISSIO N ER S HOU SING A U TH ORITY OF TH E TO W N OF ST.M A RTIN V ILLE ST.M A RTIN VILLE,LOU ISIAN A C om phliaal _ ce 1have audited the com pliance of the H ousing Authority of the Tow n of St.M artinville (PHA) with the types of compliance requirem ents described in the U.S.Office of Ṃ anagem ent and Budget (OM B) Circular A-133 Compliance SuA~ lem ent that are applicableto each ofitsm ajorfederalprogram sfortheyearended M arch 31,2000.The PHA'smajorfederalprogramsareidentified in thesummary ofauditor'siesultssection of the accom panying schedule of findings and questioned costs. Com pliance w ith the requirementsoflaws,regulations,contracts,and grantsapplicableto each ofitsmajor federalpl'ogram sisthe responsibility of the PH A 'sm anagem ent. M y responsibility isto express an opinion on the PH A 's com pliance based on m y audit. 1 conducted m y audit of com pliance in accordance w ith generally accepted auditing standards:the standardsapplicable to finan cialauditscontained in Governm enta uditing Standards,issued by the Com ptroller G eneralof the U nited States;and O M B Circular, A uditsof States LocalG overnm ents,and N on ProfitO rganizations. Those standards and O M B C ircular A -133 require that Iplmaand perfornlthe auditto obtain reasonable assurance aboutw hethernoncom pliance w ith the typesof com pliance requirementsreterred to abovethatcouklhavea directan d materialeffecton amajor federalpm grmn occurred. A n auditincludes exam ining,on a testbasis,evidence about the PH A 's com pliance w ith those requirem ents mad perform ing such otherprocedures as we considered necessary in the circum stances. I believe that m y audit provides a reasonable basisform y opinion. M y auditdoesnotprovide a legaldeterm ination on the PH A 'scom pliance w ith those requirem ents. In nay opinion, lhe PHA 's com plied, referred to above thatare applicable to ended M arch 31,2000. in all m aterial respects w ith the requirem ents each ofitsmajorfederalprogramsfortheyear

24 Intern alcontrolo vercom pliance The m anagem entof the PH A is responsible for establishing and m aintaining efective internalcontrol over com pliance w ith requirem ents of law s,regulations,contracts and grantsapplicable to federalprogram s. In planning and perform ing m y audit,iconsidered the PH A 's intern alcontrolover com pliance w ith requirem ents thatcould have a direct and materialeffect on a major federalprograxn in ~rder to determine my auditing proceduresforthe purpose of expressing m y opinion on com pliance and to testand report on intel3aalcontrolover com pliance in accordance w ith O M B C ircular A M y consideration of the intem alcontrolovercom pliance would notnecessarily disclose allm atecin the internalcontrolthatm ightbe m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design or operation of the intern alcontrolcom ponents does not reduce to a relatively low level the risk that noncom pliance w ith applicable requirem entsof law s,regulations,contractsand grantsthatw ould be m aterialin relation to amajorfederalprogram being audited may occurand notbedetected within atimely period by em ployeesin the norm alcourse of perform ing theirassigned functions. Inoted no m attersinvolving the internalcontrolover com pliance an d itsoperation thaticonsider to be m aterialw eaknesses. This report is intended for the inform ation H U D. t-lov~ever,this reportis a m atterof pub A ugust29,2000 W illiam DanielM ccaskill,cpa A ProfessionalA ccotm ting C orporatio l

25 TH E H O U SIN G A U TH O RITY O F TH E TO W N O F ST.M A RTINV ILLE ST.M A RTIN V ILLE,LO U ISIA N A SU M M A R Y SC H ED U LE O F PR IO R FIN D IN G S There w ere no findingsin the prioraudit.

26 TH E H O U SIN G A U TH O RITY O F TtlE TO W N O F ST.M AR TIN V ILLE ST.M A RTIN V 1LL E,L O U ISIA N A SCttEDULE OF CURRENT AUDIT FINDINGS AND QUESTIONED COSTS PerA-133,Section 505(d) 1. Sum m ary Schedule of A uditors Results The reportincludesan unqualified opinion on the financialstatem ents. There w ere no reportable conditions in internalcontrolsfound required to be disclosed atthe finan cialstatem entlevel. The auditdisclosed no noncom pliance w hich ism aterialto the financialstatem ents. V V. vi vi viii. ix. No reportable conditionsin internalcontrolovermajorprograms,as required by A -133,w ere disclosed by the audit. The complian cereportissued formajorprogram swasunqualified. The reportdisclosed no auditfindingsrequired to be reported under Section 510a of A Allmajorprogram shaveoversightby HUD and are identified as follow s: CFD A # N am e of Program C om prehensive Im provem enta ssistance Program s The dollarthreshold used to distinguish between Type A an d Type B program sw as$300,000. The auditee w asconsidered a low risk auditee. 2. Finding relating to the financialstatem entsrequired to be reported w ith G A G A S are asfollow s: N one Findings an d questioned costs for Federalaw ards as defned in A -133,Section 510a allw ith H U D oversight: N one

27 TH E ItO USIN G A U TH O R ITY O F TIlE TO W N O F ST.M ARTIN V ILLE ST.M A RTIN V ILLE,LO U ISIA N A C O R R E CTIV E A C TIO N PLA N O urcorrective action plan isasfollow s N ON E