H O U SIN G AU TH O R ITY O F TH E P A R ISH O F SA B IN E M A N Y,LO U ISIA N A

Transcription

1 /i~'/ ~7' Ill:Ill,Ill ~:_.!.lil!c('l!"lr. Jill,I~lfi",lSEfil~01~' UOIJ~:( ItOrl'l I~1~, I;Oi;n~lIIIl~~ l>la{;[ I~I~1{!1~h~filf' Rffi~3VU1 LEC,,SI/JIVf:;D1Lr:f OR 2OOIJUL -7 A[III:30 H O U SIN G AU TH O R ITY O F TH E P A R ISH O F SA B IN E M A N Y,LO U ISIA N A G EN ERA L PU RPO SE FIN A N C IA L STA TEM ENTS A N D IN D EPEN D EN T A U D IT O R S R EPO R T S A S O F A N D FO R T H E Y EA R EN D ED D EC EM BER 31,1999 W IT II SU PPL E M E N T A L IN FO R M A T IO N SC H E D U LE S WILLIAM DAN1EL M CCASK ILL,CPA A PROFES570NAL ACCO UN TIN G CORPORA TION 415 M A G N O LIA LAN E M AN D EVILLE,LO UISIAN A 70471

2 TA BLE O F'C ON TEN TS IN D EPEN D EN T A UD ITO R 'S REPO RT ON GEN ERA L PURPO SE FIN AN CIA L STATEM EN TS AN D SU PPLEM EN TA RY SCttED ULE O F EX PEN D ITU RES O F FED ER A L A W A R D S EX H IBITS---G EN F~RA L PU RPO SE FIN AN CIA L STA TEM EN TS A C O M B1N ED BA LA N C E SH EET A T SEPTEM BER 30,1999,A LL FU N D S C O M BIN ED STA TEM EN T O F REV EN U ES,EX PEN D ITU RES A N D CItA N G ES IN RE TA IN ED EA RN IN G S---A LL FU N D S FO R ]'H E Y EA R EN D ED SEPTEM BER 30,1999 C C O M BIN ED STA TEM EN T O F CA SH FI,O W S-A LL FUN D S C O M BIN EI) STA TEM EN T O F REV EN U ES A N D EX PEN D ITU RES- BU I)G ET V S.A CTU A L N O TES TO TH E FIN AN CIA L STA TEM EN TS AN D A CCOM PA N Y IN G IN FO RM A TIO N SU PPLEM I:;N TA R Y IN FO RM A TIO N SC IIED U LE S- G A A P BA SIS I 11 SCH ED ULE OF EX PEN D ITU RES O F FED ERA C O M BIN IN G BA LA N CE SH EET-A LL FU N D S L A W ARD S Ill C O M BIN IN G STA TEM EN T O F REV EN U ES,EX PEN SES,A N D CH A N G ES IN EQUITY FUNDS SU PPLEM EN TA RY IN FO RM A TIO N SCH ED U LES- STA TU TO RY BA SIS IV PftA 'S STA TEM EN T AN D CERTIFICA TION OF A CTUA L CO SlIS- - LA 48PO REPO RT O N CO M PLIA N C E A N D ON IN TERN A L C ON TRO L O V ER FIN A N ICA L REPO RTIN G BA SED O N A N A U D IT O F FINA N CIA L STA TEM EN TS PERFO RIVIEI) IN ACCO RDAN CE W ITH G O V ERN M EN T AU D ITIN G STAN DA RD S REPORT ON COM PLIANCE W ITH Pd?,QUIREM ENTS APPLICABLE TO EACH M A JO R PRO GRA M AN D IN TERN A L CON TRO L OV ER COM PLIAN CE IN A CCO RD A N CE W ITH O M B CIRC U LA R A -133

3 SU M M A R Y SCH ED U LE O F PRIO R A U D IT FIN D IN G S SCH ED U LE O F A D JU STIN G JO U RN A L EN TRI ES-N ON E SCHEDULE OF CURI ~,~ENT FIN DIN GS AND QUESTIONED COSTS CO R RECTIV E A CTIO N PLA N

4 W ILLIA M DA N IEL M C CA SK ILL,CPA A PR O FE SSIO N A L A C C O U N TIN G C O R PO RA TIO N 415 M A GN O LIA LA N E M A N D EVILLE,LO UISIAN A TELEPHONE FAX CELLULAR.~04-g07-649g E-M AIL OANNV M EM BER LOUISIANA SOCIETY OF CPA'S M ISSISSIPPISOCIETY OF CPA'S AM ERICAN INSTITUTE OF CPA'S BOA RD O F CO M M ISSION ER S HO U S1N G A U TH ORITY O F PA RISH O F SA BINE M A N Y,LO U ISIA N A INDEFENDEN'IAUDITOR'S REPORT UNQUALIFIED OPINION ON GENERAL PIJRPOSE FINANJCIAL~STATEM ENTS AND S I~[P_P~.EMENTARY~ IP :HEDULE OF EXPENDITURES OF t'ederal A WARDS l have audited the accom panying general purpose financial slatem ents of the ItousingAuthority of the Parish of Sabine (PItA)asofand forthe yearended December 31, 1999,as listed in the table of contents. These generalpurpose financialstatem ents are the responsibility of the PH A 's m anagem ent. M y responsibility is to express an opinion o lthese generalpurpose financialstatem entsbased on m y audit. Iconducted m y auditin accordance w ith generally accepted auditing standards applicable to financial audits contained in G overn m ent A uditing Standar&% issued by the Com ptrollerg eneralof the U nited States,and provisionsof the Louisiana G overnm ental A udit G uide. Those standards required that I plan and perform the audit to obtain reasonable assurance aboutw hetherthe 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 generalpurp ose financialstatem ents. An auditalso includes assessing the accounting principles used and the significantestim ates m ade by m anagem ent, as w ell as evaluating the overall general purpose finan cial statem ent presentation. Ibelieve thatm y auditprovidesa reasonable basis form y opinion. In m y opinion,the generalpurp ose finan cialstatem entsreferred to above presentfairly in all m aterialrespects,the finan cialposition of the Housing A uthority of the Parish of Sabine as of D ecem ber3 I,1999,and the resultsof itsoperationsand chan ges in itstotal equity forthe yearended in conform ity w ith generally accepted accounting principles. A s described in N ote A to the financial statem ents, the PH A has changed from the G overum entalfunds to the Enterp rise Funds m ethod for the year ended D ecem ber 31, 1999.

5 In accordan ce w ith Govern m ent A uditing _ Standards,Ihave also issued a reportdated June 22,2000 on m y consideration of the PH A 's internalcontroloverfinan cialreporting and m y testsof itscom pliance w ith certain law s,regulations,contracts,and grants. M y auditw as conducted for the purpose of form ing an opinion on the generalpurpose financialstatem ents of the PH A taken as a w hole. The com bining and individualfund financialstatem entsan d schedules,asw ellas the accom panying schedule of expenditures offederalawardsand the FinancialData schedules(iian d III)arepresented forpurp oses of additionalanalysisasrequired by the U.S.O ffice of M anagem entan d BudgetCircular A -133,A udits of States LocalG overnm ents and N on Profitorgan izations,and is nota required part of the generalpurpose finan cial statem ents. Such inform ation has been subjected to theauditing proceduresapplied in the auditof thegeneralpurpose finan cial statem entsand,in m y opinion,is fairly presented in allm aterialrespectsin relatiun to the finan cialstatem entsand an y oth erincluded supplem entary inform ation taken asa w hole. This reportis intended solely forthe inform ation and use of the PH A,and forfiling w ith the D epartm entof ttu D otherpurp ose. m m lssloners used forany June 22,2000 W illiam D anielm ccaskill,cpa A ProfessionalA ccounting Corporation

6 Housing Authority ofthe Parish ofsabine CO M BINED BALANC E SHEET --ALL FUNDS D ecem ber31,1999 EXH IBIT A A LL FU NDS ASSETS C urrentassets: Cash and cash equivalents Tenants rents receivable(net) Accounts and notes receivables Prepaid expenses and otherassets Inventories Interprogram due from Investm ents-unrestricted Totalcurrentassets Fixed assets (net) Totatassets 41, ,707 29, LIABILITIES AND FLIND EQ UITY C urrentliabilities: Accounts Payable and accrued liabilities Defered revenues C urrentportion ofiong-terrn debtcapitalprojects Security deposits Interprogram due to 40, , Totalcurentliabilities Noncurrentliabilities: Noncurentliabilities-other Noncurentportion of long-term debt Totalliabilities Totalfund equity Totalliabilities and fund equity , see notes to financialstatem ents

7 Housing Authority ofthe Parish ofsabine CO M BINING STATEM ENT O F R EVENUES,EXPENSE A ND CHANG ES IN EQ UITY--ALL FUNDS Forthe yearended Decem ber31,1999 EXHIBIT B O perating revenues: Nettenantrevenue Tenantrevenue-other Interestincom e O therincom e HUD PHA grants G ain orloss ofthe sale offixed assets Totaloperating revenues O perating expenses: Adm instration Tenantservices Utilities O rdinary m aintenance G eneralexpense Protective services Non-routine m aintenance Housing assistance paym ents O perating expense.,;before depreciation Operating income/(ioss)before depreciation Depreciation expense Netoperating income/(ioss)afterdepreciation NetEquity, NetOperating Income (loss)afterdepreciation Currentyearadjustments C apitaloutlays TotalEquity, A LL FU N DS ,349 10, , ,137 2,500 8, , (2,614) ,466 32,867 (3,401) 1,129,055 (3,401) 119, , see notes to financialstatem ents

8 Housing Authority ofthe Parish ofsabine C O M BIN ING STAT[M ENT O F CASH FLO W S --ALL FUNDS Forthe YearEnded Decem ber EXHIBI'f'C page 1 of2 C ash flow s from operating activities: Cash received from tenants Cash received from otherincom e C ash paid forgoods and services Cash paid to em ployees Netcash provided by operating activities Cash flows from noncapital financing activities: O perating grants and subsidies A LL FU N DS 173,956 10,309 (548,204) (217,336) (581,275) C ash flows from capitaland related financing activities Proceeds from grants Acquistion ofcapitalassets Proceeds from issuance ofnotes Acquistion ofca pitalassets 378,572 (378,572) Netca sh used forca pitaland related financing activities Cash flows from investing activities Intereston investm ents see notes to financialstatem ents

9 Housing A uthority ofthe Parish ofsabine C O M BIN ING STATEM ENT O F CA SH FLO W S-A LL FLO W S [-orthe YearEnded Decem ber EX H IBIT C page 2 of2 Reconciliation ofoperating incom e to netcash provided by operating activities Adjustments to reconcile operating incom e 1:o netcash NetAdjustm ents-non Cash (Increase)decrease in tenant rents receivable (Increase)decrease due from US DeptofHUD (Increase)decrease due in supplies inventory (Increase)decrease in prepaid assets (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 accounts payable HUD Increase (decrease)in accrued vaca tion pay Increase (decrease)in deferred revenues Increase (decrease)in tenantsecurity deposits Totaladjustments (6,043.72) 1, , , (54,755.00) , (3,273.00) 20, , C hange in ca sh and equivalents Beginning C ash Cash and ca sh equivalents end ofyear-exhibita 103, see notes to financialstatem ents

10 Housing Authority ofthe Parfsh ofsabine Many,Louisiana COMBINED STATEMENT OF REVENUES AND EXpENDITURES-BUDGET VS.ACTUAL GENERAL FUND AND SPECIAL REVENUE FUND FOR THE YEAR ENDED DECEMBER 31,lggg EXHIBIT D REVENUES LocalSources: Dweling Rental Inta restcfiarge~ Receipts from t~e Sale ofequipm ent Other FederalSources: Operating Subsidy AnnualContribugons Grants TotalRevenues EXPENDITURES Current: Adm in(stret ion Utilities Ordinary M aintenance & Ope rations TenantServices Gener~tExpendibJres TenantServices Housing Ass=stance Paym m~ls Facilities Acquisition & Consti~JC~ion Nonroutine Maintenance PrYrAdjAfecting Res.Re;eipts DebtService: PrincipalRetirem ent Interes t& Bank Charges TotalExpe nditures EXCESS (DEFICIENCY)OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) LOW RENT Budget 183, Actual Favorabfs Variance 173, (9,844.19) 9, (5.74) , ( , , ,788,00 493, (9,851.30) 122, , ,740,00 8, , ,500,00 4, (2, , , see notes to financialstatem ents 174, ,124.2t 136, , , (2, ,303.4g 4,140.2t 5.7g 6, (5.96) , ,786.56

11 TH E H O U SIN G A UTH O R ITY O F TH E PA R ISH O F SA BIN E M A N Y,LO U ISIAN A N O TES TO TH E FIN A N CIA L STA TEM EN TS Housing A uthorities are chartered as a public corporation under the laws (LSA-RS 40:391)oflheStateof Louisiana.forthe purpose of providing safe and san itary dwelling accom m odations for the residents of Sabine Parish, Louisiana. This creation w as contingentupon the localgoverning body of the city orparish. The PH A isgoverned by a five m em ber Board of Com m issioners. The m em bers, appointed by the Parish Presidentof Sabine Parish serve a fouryear staggered term. Under the ljnited StatesH ousing A ctof 1937,as am ended,the US Departm entof H UD has direct responsibility for adm inistering low rent housing program s in the U nited States. A ccur dingly,h U D has entered into an annualcontributions contractw ith the PH A forthe purp ose of assisting the PH A in financing the acquisition,construction and leasing ofhousing unitsand to make annualcontributions(subsidies)to the PttA forthe purpose of m aintaining this low rentcharacter. N O TE A (1)FinancialRep_o _rt_in~g~ G enerally accepted accounting principlesrequire thatthe financialstatem entspresentthe accountsand operationsof the PH A and itscom ponentunits,entitiesforw hich the PtfA is considered to he 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 are 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 thatitislegally separate from the PH A. A sof D ecem ber31,1999,and forthe fiscal then ended, the PH A had no discretely presented com ponent units or any com ponentunits required to be blended in these financialstatem ents. (2) Chan~ein Accountina Princinle For the year ended D ecem ber 31, 1999, the PH A has changed from the G AA P G overm nentfunds M ethod to the Enterprise M ethod. The Enterprise Funds M ethod accounts for operations in a m anner sim ilw:to a private business, landerthis m ethod,allassets,including fixed assets,and allliabilities are in one fund,mad one 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 in the period incurred,if m easurable. In the priorm ethod used,the G overnm entalfunds M ethod,the m odified accrualm ethod used.

12 D epreciation expense m ust be recognized for the Enterprise Fund. U nder the G overnm ental Funds M ethod, depreciation w as optional and the PH A elected not to recognize it. (3) Bud et~.~ Data (4) d Cash The entity defines cash and cash equivalents to include certificates of deposit, m oney m arketfunds,savingsaccounts,and dem and, deposits. (5) TenantReceivables Receivables for rental and service charges are reported in the General Fund, allow ancesfor doubtfulaccounts. net of (6) Compensated 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 Category 1-- Insured orcollateralized w ith securitiesheld by the entity orby itsagentin the entity'snam e. Category 2 -- Collateralized w ith securities held by the pledging financialinstitution's trustdepartm entor agentin the entity's nam e. Category 3 -- Uncollateralized,uninsured an d unregistered,butw ith securities held by the bank,itsagent,pledged to the PHA,butnotin the PH A 'snam e.

13 Cash Deposits,categorized by levelof risk,(atcost,which approxim atesmarket)are Category Total Bank Balances 2 $433, , ,594 Even though lhe pledged securities are considered uncollateralized (Category 3)trader the provisions of GA SB Statem ent 3, Louisiana Revised Statute 39:1229 im poses a statutory requirem enton the custodialbank to advertise and sellthe pledged securities w ith 10 daysof being notified by the PH A thatthe fiscalagenthasfailed to pay deposited fundsupon dem and. N O TE C -- A CTIV ITIES O F TH E PH A A td ecem ber31,1999,the PH A w as m anaging low -rentprogram,vouchers program, certificates program,and a com prehensive gran tprogram. N O TE D -- CO N TIN G EN C IES The entity is subject to possible exam inations by federalregulators who determine com plian ce w ith term s,conditions,law s aald regulations governing grants given to the entity in the currentan d prioryears. These exam inations m ay resultin required refund by the entity to federalgrantorsand/orprogram beneficiaries. N O TE E -- FIX ED A SSETS A snoted in N ote A,soft costsform erly capitalized have been w ritten off an d fixed assets are now depreciated on the straight-line m ethod over their estim ated useful lives as follow s: Site im provem ents Buildings Building im provem ents N ondw elling structures Equipm ent 20 Year s 20 Y ears I0 Year s 20 Y ear s 3 to 7 Y ear s

14 Cost Current Prior N et D epreciation D epreciation Land Buildings Equipm ent-d w elling Equipm ent-a dm in Leasehold Im provem ents $171,442 6,922, ,768 11, ,575 20,942!,260, ,442 6,276, , , ,509 19,124 1,260,826 $ 8,686,090 32,867 7,816, ,443 A llland an d building are encum bered by a D eclaration of Trustin favor of the United Statesof A m erica assecurity forobligations guar anteed by the govenm aentand to protect otherintere,;tsof the governm ent. N OTE F -- LON G -TERM DEBT Long-term debtow ed 1o H U D or guar anteed and services by H U D has been closed to H U D equity"accounts. For the year ended Series A N otes & Bonds outstanding of $635, w ere reclassified. N OTE G -- RETIREM EN T PLAN 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 the plan,plus investm entearnings. Em ployees ar e eligible lo participate after a six m onths exclusionary period. "Ilae em ployees contribute 5% and the entity contributes 8% of the em ployee's base salary each m onth. The entity's contributions for each employee (an d interest allocated to the employee's accoarlt) are vested 20% annually for each year of participation. An em ployee is fully vested after 5 years of participation. The entity's totalpayrollin fiscalyear ended D ecem ber 31, 1999 was $217,336. The entity's contributions w ere calculated using the base salary am otm t of $217,336. Contributions to plan were $10,867 an d $17,387 by the em ployee and the entity, respectively.

15 N OTE H --D ISCLO SIJRES AB OU T FAIR V A LU E O F FINAN CIA L IN STRU M EN TS The follow ing m ethodsand assum ptionsw ere used to estim ate the fairvalue of each class of financialinstrum ents forw hich itis practicable to estim ate thatvalue: Cash an d Investm ents The carrying am ount approxim ates fair value because of the short m aturity of these instru m ents. N O TE I -~ U SE O F ESTIM A TES IN TH E PREPA RA TION O F FIN AN CIA L STA TEM ENTS The prepara tion of financialstatem entsin conform ity w ith generally accepted accounting principles requires m anagem ent to m ake estim ates and assum ptions that affectcertain reported mnotmts an d disclosur es. Accordingly,actualresults could differ from those estim ates.

16 Housing Authority ofthe Parish ofsabine C ity ofm any,louisiana SCH EDULE O F EXPENDITU RES O F FEDERAL AW ARDS Forthe yearended Decem ber31,1999 SCHEDULE FED ERA L A G ENCY C FDA NO. FederalAwa rd E xpenditures U S Departm entofhousing and U rban Developm entd irectprogram s Low Incom e Housing: O perating Subsidy Leased Developm ent TotalLow Inco m e Housing Section 8 C luster: Vouchers Certificates M oderate Rehabilitation New Construction SubstantialRehabilitation TotalSection 8 C luster Com prehensive G rants C la P , Public Housing D rug [:lim ination Program : PH D EP Youth Sports TotalPH D EP Shelter+ C are HO PE HO M E Child Care Food Program (USDA) TO TA L FED ERAL EX PEN D ITU R ES NO TE:This schedule ofexpenditures offederalaw ards is prepared on G AA P enterprise accounting. see notes to financialstatem ents

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21 Housing Authority ofthe Parish ofsabine M any,louisiana PHA's Statem entand Certification ofactualm odernization Costs C O M PLETED PRO JECT LA48P A nnualcontributions ContractFW -741 Forthe YearEnded Decem ber SC H ED U LE IV 1.The actualmodernization costs ofthe projectare as fo lows PROJECT LA48P Funds A pproved Funds Expended Excess offunds A pproved FUN D S A DVA N C E[) H U D Funds Expended E-xcess offunds A dvanced The distribution ofcosts by projectas shown on the FinalStatem entofm odernization Costdated accom panying the ActualM odernization CostCertificate subm itted to H U D forapprovalis in agreem entw ith the PHA's record.,~. 2.A llm odernization co sts have been paid and allrelated liabilities have been discharged through paym ent. see notes to financialstatem ents

22 W ILL IA M D A N IEL M C C A SK ILL,C PA A PR O FESSIO N A L A C C O U N TIN G C O R PO R A TIO N 415 M A GN O LIA LA N E M A N D EV ILLE,LO U ISIAN A TELEPHONE 50' FA X CELLULAR D~ b~ Y MA~ M_Q_~QM M EM BER LOUISIANA SOCIETY OF CPA'S M ISSISSIPPISOCIETY OF CPA 'S AM ERICAN INSTITUTE OF CPA 'S REPORT ON COM PLIANCE ANn ON INTERNAL CONTRO l,over FINANCIAL REPO RTING BASED ON AN AUDrI' OF FINANCIAL STATEM ENTS PERFORM ED IN ACCORDANCE W Erll BO A RD O r'com M ISSION ERS H OU SIN G AUTH O RITY O F TH E PA RISH OF SA BIN E M A N Y.LO U ISIA N A Ihave audited the financialstatem ents of the H ousing A uthority of the Parish of Sabine (PHA),asof and for the year ended Decem ber31,1999,and have issued nay report thereon dated June 22,2000. Iconducted m y auditin accordance w ith generally accepted auditing standards and the standards applicable to finan cial audits contained in G overnm el!la uditstan dar ds,issued by the Com ptrollerg eneralof the U nited States. Com pliance A s partof 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 pliance w ith certain provisions of law s,regulations,contracts and grants,noncom pliance w ith w hich could have a direct and m aterial effect on the determ ination of financialstatem ent am ounts. However,providing an opinion on compliance with those provisionswasnotan objective of nay auditand accordingly,ido notexpress such an opinion. The results of ourtests disclosed no instances of noncom plian ce that are required to be reported under G overnm enta uditing Standards. InternalC ortrolo ver FinancialR eportin _ g In planning and perform ing m y audit, I considered the PH A 's internal control over financial reporting in order to determ ine m y auditing procedures for the purpose of expressing lny opinion on the financialstatem ents an d notto provide assuran ce on the internalcontrolover financialreporting. M y consideration of the intern alcontrolover financialreporting w ould notnecessar ily disclose allm atters in the internalcontrolover financialreporting thatm ightbe m aterialw eaknesses.a m aterialw eaknessisa condition in w hich the design or operation of one orm ore of the internalcontrolcom ponentsdoes notreduce to a relatively low levelthe risk thatm isstatem ents in mnounts thatw ould be m aterial in relation to the finan cial statem ents being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm alcourse of perform ing their

23 assigned functions. I noted no m atters involving the internal control over financial reporting artd its operation thaticonsiderto be m aterialw eaknesses. This reportis intended forthe inform ation of the auditconm l HU D. H ow ever,thisreportisa m atterof public record an d its m mlagem ent,an d for im ited. June 22,2000 W illiam 131anielM ccaskill,cpa A ProfessionalA ccounting Corporation

24 W ILLIA M DA N IEL M C CA SK ILL,CPA A PR O FE SSIO N A L A C C O U N TIN G C O R PO RA TIO N 415 M A GN O LIA LA N E M AN D EV ILLE,LO U ISIAN A TELEPFIONE FAX CELLULAR l)a N N~.M._AC.~ Q~(~OM M EM BER LOUISIANA SOCIETY OF CPA'S M ISSISSIPPISOCIETY OF CPA 'S AM ERICAN IN STITUTE OF CPA'S BOA RD O F COM M ISSION ERS H O U SIN G A U TH OR ITY OF TH E PA RISH OF SA BIN E M A N Y,LO U ISIAN A REPORT ON COM PLIANCE W 1TIInEQUIREM ENTS APPEICABLE TO EACIIM AJOR PROGRAM AND INTERNAL CO NTRO L OVER CO M PLIANCE IN ACCO RDANCE W ITH O M B CIRCULAR A-133 Com pliance. Ihave audited the compliance of the Housing Authority of theparish of Sabine(PHA) w ith the types of com pliance requirem ents described in the U.S.O ffice of M anagem ent and Budget _ L_OM B)CircularA-133 Comoliance Supplem entthatare applicableto each of itsmajorfederalprogramsfortheyearended December31,1999. ThePHA'smajor federal program s are identified in the sum m ary of auditor's results section of the accom panying schedule of findings and questioned costs. Com pliance w ith the requirem enlsoflaws,regulations,contracts,and grantsapplicable to each ofitsmajor federalprogram sis the responsibility of the PH A 's m anagem ent. M y responsibility is to expressan opinion on the PHA 'scom pliance based on nay audit. I conducted nay audit of com pliance in accordan ce w ith generally accepted auditing standards:the standar dsapplicable to finan cialauditscontained in Governm enta uditing Standards,issued by the Com ptroller Generalof the U nited States;an d O M B Circular, A uditsof Slates LocalG overn m ents and N on ProfitO rganizations. Those standards an d O M B Circular A -133 require thatiplan and perform the auditto obtain reasonable assuran ce aboutw hethernoncom plian ce w ith the t~ )es of com plian ce requirem entsreferred to above thatcould have a directan d materialeffecton a major federalprogrmn occurred. A n auditincludes exam ining,on a testbasis,evidence about the PH A 's c'om plian ce w ith those requirem ents and perform ing such other procedures as w e considered necessary in the circum stances. I believe that m y audit provides a reasonable basis form y opinion. M y auditdoes notprovide a legaldeterm ination on the PH A 's com pliance w ith those requirem ents. In m y opinion, the PH A 's com plied, in all m aterial respects w ith the requirem ents referred to abovethatare applicableto each of itsmajorfederalprogram sforthe year ended D ecem ber31,1999.

25 Intern alcontrolo vercom pliance The m anagem entof the PHA is responsible for establishing and m aintaining effective internalcontrolover com pliance w ith requirem ents of law s,regulations,contracts and gran tsapplicable to federalprogram s. In planning and perform ing m y audit,iconsidered the PH A 's internalcontrolover com pliance w ith requirem ents thatcould have a direct and materialeffect on a major federalprogram in order to determine my auditing proceduresforthe purpose of expressing m y opinion on com plian ce an d to testand report on internalcontrolovercom plian ce in accordan ce w ith O M B C ircular A M y consideration of the internalcontrolovercom plian ce w ould notnecessarily disclose allm atterin the internalcontrolthatm ightbe m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design or operation of the internalcontrolcom 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 a majorfederalprogram being audited may occurand notbedetected within a timely period by em ployeesin the norm alcourse of perform ing theirassigned functions.inoted no m attersinvolving th e intern alcontrolover com plian ce and itsoperation th aticonsider to be m aterialw eaknesses. This repo l is intended for the inform ation of H U D. How ever,thisreport isa m atterof public ent, and lim ited. June 22,2000 W illiam D anielm ccaskill,cpa A ProfessionalA ccounting:c orporation

26 TH E H O U SIN G A UTH O R ITY O F TH E PA RI SH O F SA BIN E M A N Y,LO U ISIA N A SU M M A R Y SC H ED U L E O F PR IO R FIN D IN G S There w ere no findingsin the prioraudit.

27 TH E H O USIN G A U TH O RITY O F TH E PA RI SH O F SA BINE M AN Y,LOU ISIAN A SCH EDULE OF CURRENT AUDIT FINDING S AND QUESTIONED CO STS PerA-133,Section 505(d) 1. Sum m ary Schedule of A uditors Results The reportincludes an unqualified opinion on the finan cialstatem ents There w ere reportable conditionsin intern al controlsfound required to be disclosed atthe financialstatem entlevel. The auditdisclosed noncom pliance which is m aterialto the financial sta tem ents. No reportable conditionsin intern alcontrolovermajorprograms,as required by A -133,w ere disclosed by the audit. iv. Thecomplian cereportissued formajorprogram swasunqualified The reportdisclosed no auditfindingsrequired to be reported under Section 510a of A Allmajorprogram shave oversightby HUD and are identified as follow s: CFD A # N am e of Program V ouchers Certificates vii. viii. The dollar threshold used to distinguish betw een Type A an d Type B program sw as $300,000. The auditee w as considered a low risk auditee. 2. Finding relating to the finan cial statem entsrequired to be reported with GA GA S are as follow s: N one 3. Findingsand questioned costsforfederalaw ar dsas defined in A -133,Section 510a al lw ith H U D oversight: N one

28 TH E H O U SIN G A U TH O R ITY O F TH E PARISH O F SA BIN E M AN Y,LOU ISIAN A C O R R ECTIV E A CTIO N PLA N O urcorrective action plan isas follow s N ON E