Tracey McDermott Interim Chief Financial Officer Financial Services Department

Transcription

1 Fiscal Year 2015 Presentation to the SDHC Board Meeting November 20, 2015 Tracey McDermott Interim Chief Financial Officer Financial Services Department

2 Agenda Summary of Audit Results Financial Results Operational Highlights Slide #2

3 Summary of Audit Results Audit Period: July 1, June 30, 2015 Independent Auditors: CohnReznick LLP Audit Opinion: Unmodified No Passed Adjustments No Management Letter Comments Slide #3

4 Reports and Statements Issued: Summary of Audit Results (Cont.) o o o o o o o o Fiscal Year (FY) 2015 Comprehensive Annual Financial Report (CAFR) Office of Management and Budget Circular A-133 Single Audit Reports Report to the Audit Committee FY 2015 Independent Auditors' Report on the Otay Villas Housing Development FY 2015 Independent Auditors' Report on the Scattered Sites Housing Development FY 2015 Northern SDHC FHA LLC Financial Statements FY 2015 Southern SDHC FHA LLC Financial Statements FY 2015 Central SDHC FHA LLC Financial Statements Slide #4

5 Statement of Net Position Changes from Prior Fiscal Year Total Assets of $606.3 million, an increase of $23.8 million or 4% Notes and Mortgages Receivable, net of allowance, totaled $265.7 million (current and non-current), an increase of $8.8 million, or 3% Total Assets exceeded Total Liabilities (Net Position) by $483.7 million, an increase of $26.8 million, or 6% Slide #5

6 SDHC Financial Results Assets (in millions) Accrued Interest Receivable: $37.4M; 6% Capital Assets: $174.8M; 29% Cash and Investments: $110.3M; 18% Accounts Receivable and Other Assets: $18.1M; 3% Notes & Mortgages Receivable: $265.7M; 44% Total Assets = $606.3M Slide #6

7 SDHC Financial Results Liabilities and Net Position (in millions) Restricted Net Assets - Invested in Capital Assets, Net of Debt: $68.9M; 12% Restricted Net Assets - HOME Notes Receivable and Other: $170.2M; 28% Notes Payable: $109.9M: 18% Other Liabilities: $5.2M; 1% Accounts Payable & Accrued Compensation: $7.5M; 1% Unrestricted Net Assets: $244.6M; 40% Liabilities $122.6M + Net Position $483.7M = $606.3M Slide #7

8 Uncommitted Unrestricted Net Assets - $9.9 Million Property and Agency Reserves, $67.3M; 27% Uncommitted Unrestricted Net Assets, $9.9M; 4% Federal Restricted Reserves, $33.1M; 14% Local Restricted Reserves, $124.4M; 51% State Restricted Reserves, $10.1M; 4% Slide #8

9 SDHC Financial Results Revenues Total Revenue of $235.9 million, an increase of $6.5 million, or 3% Grant Revenue of $191.7 million, an increase of $4.7 million, or 3% Dwelling Rental Income (Rents) of $26.5 million, an increase of $800,000, or 3% Interest income on investments and notes receivable was $9.7 million, an increase of $625,000, or 7% Slide #9

10 SDHC Financial Results Revenues (in millions) $235.9M $8.0M - 3.4% $9.7M - 4.1% $26.5M % $229.3M $7.5M - 3.3% $9.1M - 4.0% $25.7M % Other Operating Income Interest Income $48.6M % $38.8M % $191.7M % $143.1 M % $148.2M % $187.0M % Dwelling Rental Income Other Grant Revenue Housing Assistance Grant Revenue FY 2015 FY 2014 Slide #10

11 SDHC Financial Results Revenues by Funding Type Federal 75% Federal: $177.1 M State: $ 1.7 M Local: $ 57.1 M Total: $235.9 M Local 24% State 1% Slide #11

12 SDHC Financial Results - Expenses Total Expenses of $209 million, a decrease of $7.3 million, or 3% Grant Expense of $11.1 million, a decrease of $6.0 million, or 54% Housing Assistance Payments (HAP) of $145.8 million, a decrease of $200,000, or 1% Operating Expense of $46.4 million, an increase of $300,000, or 1% Interest Expense of $5.7 million, a decrease of $200,000, or 3% Slide #12

13 SDHC Financial Results Expenses (in millions) $209.0M $5.7M - 2.7% $11.1M - 5.3% $216.4 M $5.9M - 2.7% $17.1M - 7.9% $46.4M % $46.1M % Interest Expense Grant Expense Operating Expenses Housing assistance $145.8M % $147.3M % FY 2015 FY 2014 Slide #13

14 SDHC Financial Results Trend Total Operating Expenses (in millions) (Excludes Interest Expense) $149.0M $154.5M $34.3M % $41.2M % $166.2M $39.6M % $177.8M $38.5M % $139.2M % $201.3M $195.7M $196.8M $189.2M $50.4M % $49.9M % $49.0M % $44.4M % $150.9M % $147.8M % $145.9M % $144.8M % $210.6M $63.3M % $147.3M % $203.4M $57.6M % $145.8M % 60 $126.6M % 40 $114.7M 77.0% $113.3M % Housing Assistance Payments Other Operating Expenses Slide #14

15 Rental Assistance Division SDHC Operational Highlights Federal Section 8 Housing Choice Vouchers (HCV): Assisted more than 950 new families with a lease-up initiative Launched SDHC Landlord Portal on November 3, 2014, providing landlords with online access to review inspection results, ledger balance, pending payments or holds, caseworker assignment, unit information, landlord contact information, and online forms Converted most HCV rental units to inspections every two years Completed record number of Federal Housing Quality Standards inspections (20,599) and rent increase requests (4,500) Converted majority of landlords to electronic monthly payments via direct deposit Slide #15

16 SDHC Operational Highlights (Cont.) Rental Assistance Division (Cont.) SDHC Achievement Academy: 1,573 participants received services, resulting in 149 new job placements 207 participants increased earnings Created 5 new industry-specific training programs SDHC Achievement Academy Caregiver Training October 15, 2014 Slide #16

17 Real Estate Division SDHC Operational Highlights (Cont.) Hotel Churchill Working with SDHC s nonprofit affiliate, Housing Development Partners (HDP), SDHC began rehabilitation of historical hotel to create 72 units of permanent supportive housing for homeless Veterans, youth aging out of foster care, and adults exiting the corrections system San Diego Square Working with HDP, SDHC began the 156-unit, $38 million rehabilitation project for low-income seniors Tour of Hotel Churchill Rehabilitation October 19, 2015 (Left to Right) U.S. Representative Scott Peters, Speaker of the California State Assembly Toni Atkins, SDHC President & CEO Richard C. Gentry, City Councilmember Todd Gloria, and U.S. Department of Housing and Urban Development Secretary Julian Castro Slide #17

18 Real Estate Division (Cont.) SDHC Operational Highlights (Cont.) Village North Senior Garden Apartments - Successfully completed the $15 million purchase of a 120-unit senior housing apartment complex, with 20 percent of units set aside for homeless seniors Tax Credit Asset Management s (TCAM) Asset Management Policies & Procedures Guidelines adopted, capturing best practices from both Private & Public Sector, with focus on: o financial analysis o operations o physical site inspections o reserve balances o capital replacement plans Slide #18

19 SDHC Operational Highlights (Cont.) Homeless Housing Innovations Department City of San Diego s Year-Round Interim Housing at a Permanent Facility opened, replacing Emergency Winter Tents that the City had provided for nearly 30 years Provided the technology and technical support to integrate homeless service providers on the same data system Served 1,145 people at The 9th Project Homeless Connect Downtown San Diego Launched Homeless Triage Bed Program with City of San Diego Police Department Homeless Outreach Team Expanded the Serial Inebriate Program City s Year-Round Interim Housing Program Beds for Homeless Adult Women June 16, 2015 Slide #19

20 FY 2015 Actual Expenditures on Homelessness Activities (in millions) Funding Sources City General Funds SDHC Other TOTAL FY 2015 Homeless Sources Program City of San Diego s Shelters: Veterans Emergency Winter Shelter, Single Adult Emergency Winter Shelter, Connections Housing, Cortez Hill Family Center, Homeless Triage Beds & County of San Diego Cold Weather Shelter Voucher Programs Supportive Services: City s Neil Good Day Center, City s Homeless Transitional Storage Center, Homeless Management Information System, Transitional Housing, Rapid Re-housing, ElderHelp, Housing First, Serial Inebriate Programs, SDHC Administration & Related Overhead Federal Continuum of Care Permanent Supportive Housing Federal Housing Voucher Support TOTAL FY 2015 Expenditures by SDHC Amount $2.2M $1.1M $15.8M $19.1M Expense $3.2M $4.5M $2.7M $8.7M $19.1M Slide #20

21 Financial Services Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for Comprehensive Annual Financial Report (CAFR) Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR) from GFOA for Certificate of Achievement for Excellence in Financial Reporting Slide #21

22 Questions? Slide #22