S t.m artinville H o using A utho rity. S t.m artinv ille,lo uisiana

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1 S t.m artinville H o using A utho rity S t.m artinv ille,lo uisiana G eneralpurpose FinancialStatem ents and IndependentA uditors Reports A s of and for the Y earending M arch 31,2002 W ith S upplem entalinform ation S chedules W ILLIA M DA N IEL M cca SK ILL,C PA A PR O FESSIO NA L A C C O U NTIN G C O R PO R ATIO N 5150 H ighw ay 22,Suite C -15 M andeville,t.ouisiana Underprovisionsofstate law, this reportis a public docum ent.a copy ofthe repo~l14~s be:on subrnitled to the entity and ot:her~ppropdate public offi(:izds. -Ihe reportis aw ~il~ble forp~.~tklic inspec1:kn~[~tthe B~ton Rouge office ofthe Legislative Auditorand, w here appropriate,atthe office ofthe parish clerk ofcourt. ReleaseDate Jb/_q/O~

2 TA BLE O F C O NTENTS Independentauditor's reportand unqualified opinion on generalpurpose financia statem ents. Exhibits- G eneralpurpose financialstatem ents as ofand forthe fisca yearending M arch 31,2002: (A) (B) (C) Com bined Balance Sheet- A lfunds Com bined Statem entofrevenue,expenses,and Change in Equity - A lfunds Com bined Statem entofcash Flows - A lfunds Notes to the financialstatem ents Supplementary information schedules (GAAP) V V Schedule ofexpenditures offederalaw ards Com bining Balance Sheet/FinancialData Schedule -A lfunds Com bining Statem entofrevenue,expenses,and C hange in Equity / FinancialData Schedule - A lfunds Com bined Statem entofrevenues & Expenditures - Budgetvs A ctual- Low Rent Statem entand Certification ofactualm odernization Costs Reporton com pliance and on internalcontroloverfinancialreporting based on an auditoffinancialstatem ents perform ed in accordance w ith governm ental auditing standards Report on compliance with requirements applicable to each majorprogram and internalcontrolovercom pliance in accordance w ith O M B CircularA-133 Schedule ofauditadjusting JournalEntries Schedule ofpriorauditfindings Schedule ofcurrentauditfindings and Q uestioned Costs Schedule ofcorrective Action Plan Page 2 of28

3 W illiam D anielm cc askill,c PA A ProfessionalA ccounting Corporation 5t50 Highw ay 22,Suite C-15 M andeville,louisiana Telephone Fax t313 E-m alldanny@ cpaandco.com M em berof Louisiana Society ofcpa 's M ississippisociety ofc PA 's A m erican Institute of C PA 's INDEPENDENT AUDITOR'S REPO RT UNQ UALIFIED OPINION ON GENERAL PURPOSE FINANCIAL STATEMENTS )SUPPLEM ENTA RY SC HEDULE O F EXPEN DITU RES O F FEDERA L AW A RDS Board ofcom m issioners St.M artinvile Housing Authority St.M artinvile.louisiana Ihave audited the accom panying generalpurpose financialstatem ents ofthe St. Martinvile Housing Authority (PHA)as ofand forthe yearended March 31,2002, as listed in the table ofcontents. These generalpurpose financialstatem ents are the responsibility ofthe PHA's m anagem ent. M y responsibility is to express an opinion on these generalpurpose financialstatem ents based on m y audit. Iconducted m y auditin accordance w ith auditing standards genera ly accepted in the United States of Am erica and the standards applicable to financialaudits contained in G overnm entauditing Standards,issued by the Com ptro lerg eneral ofthe U nited States,and provisions ofthe Louisiana G overnm entatauditg uide. Those standards required thatiplan and perform the auditto obtain reasonable assurance aboutw hetherthe generalpurpose financialstatem ents are free of m aterialm isstatem ent. An auditincludes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the general purpose financial statem ents. An auditalso includes assessing the accounting principles used and the significantestim ates m ade by m anagem ent,as w e las evaluating the overa l general purpose financial statem ent presentation. I believe that m y audit provides a reasonable basis form y opinion. In m y opinion, the general purpose financial statem ents referred to above presentfairly in a lm aterialrespects,the financialposition ofthe St.M artinvile Housing Authority as ofm arch 31,2002,and the results ofits operations and the Page 3 of28

4 St.M artinvile H ousing A uthority FiscalYearEnding M arch 31,2002 Page 2 cash flow s of its propriety fund types for the year ended in conform ity w ith genera ly accepted accounting principles. In accordance w ith G overnm enta uditin.q Standards, ~have also issued a report dated Septem ber23,2002 on m y considera tion ofthe PHA's internalcontrolover financialreporting and m y tests ofits com pliance w ith certain law s,regulations, contracts,and gra nts. That report is an integralpart ofan auditperform ed in accordance w ith G overnm ent Auditing Standards and should be read in conjunction with this reportin considering the results ofmy audit. M y auditwas conducted forthe purpose ofform ing an opinion on the general purpose financialstatem ents ofthe PHA taken as a w hole. The accom panying Schedule of Expenditures of Federal Aw ards is presented for purposes of additionalanalysis as required by the U.S.O ffice of M anagem ent and Budget Circular A-133. A udits of States. Local G overnm ents, and Non Profit organizations, and is not a required part of the general purpose financial statem ents. The accom panying Com bining FinancialStatem ents/financialdata Schedules are presented forpurposes ofadditionalanalysis as required by H UD, and are nota required partofthe generalpurpose financialstatem ents. Such information has been subjected to the auditing procedures applied in the auditof the generalpurpose financialstatem ents and,in m y opinion,is fairly presented in a lm aterialrespects in relation to the financialstatem ents and any otherincluded supplem entary iniorm a'[~en taken as a w hole. This report is intended solely for the inform ation and use of the Board of Com m issioners ofthe PHA,and forfiling w ith the Departm entofhud and should notbe used forany otherpurpose. W iliam Daniel M ccaskil, C PA,,o APA C APAC D W iliam DanielM ccaskil,c PA A ProfessionalAccounting Corporation Septem ber23,2002 Page 4 of28

5 St.M artinville Housing A uthority St.M art nvi le,t.ou s ana Com bined Balance Sheet-AllFunds As of M arch 31,2002 EXHIBIT A Page 1 of1 Assets CurrentAssets: Cash and Cash Equivalents TotalAccounts Receivable,NetofA lowance fordoubtfulaccounts Investm ents -Unrestricted Interprogram Due From Prepaid Expenses and OtherAssets Inventories TotalCurrentAssets NoncurrentAssets: TotalFixed Assets,NetofAccum ulated Depreciation O therassets TotalNoncurra ntassets $ 143,772 15,689 1,043 $ 160,504 $ 1,447,161 $ 1,447,161 TotalAssets L~ab~lit~esand Ee~ u CurrentLiabilities: Accrued Com pensated Absences Accrued W age/payroltaxes Payable Accounts Payable < 90 Days Accounts Payable -HUD PHA Program s Ac.c~unts Payable -O therg overnm ent TenantSecurity Deposits Deferred Revenues CurrentPortion oflt Debt-CapitalProjects Accrued Liabilities -O ther Interprogram Due ro TotalCurrentLiabilities TotalNoncurrentLiabilities 3, ,861 27,300 $ 46,567 10,903 $ 57,470 TotalFund Equity $ 1,550,195 TotalLiabilities and Equity See notes to financialstatem ents Page 5 of28

6 St.M artinvilie Housing A uthority St.M artinville,louisiana Com bined Statem entofrevenue,expenses,and Change in Equity -AllFunds ForFiscalYearEnding M arch 31,2002 EXHIBIT e Page1of1 Revenues: NetTenantRentalRevenue HUD PHA Grants CapitalGrants Investm entincom e -Unrestricted OtherRevenue TotalRevenues O perating Expenses: Adm inistrative TenantServices Utilities O rdinary M aintenance & O perations Protective Services GeneralExpenses TotalO perating Expenses Before Depreciation Excess Revenue O verexpenses Before Depreciation Extraordinary M aintenance Casualty Losses -Non-Capitalized Housing Assistance Paym ents Depreciation Expense O perating Transfers -In O perating Transfers -O ut NetOperating Income (Loss)AfterDepreciation $ 226, , ,811 9,261 10,454 $ 671,502 $ 102,692 70, ,324 58,837 $ 340,916 $ 330,586 4,523 10, , ~ (17,637) $ 136,618 Beginning 3/31/01 NetOperating Income (Loss)AfterDepreciation PriorPeriod Adjustments CapitalO utlays Ending 3/31/02 $ 1,413, $ 1,550,195 See notes to financialstatem ents Page 6 of28

7 St.M artinville Housing Authority St.M artinville,louisiana Com bined Statem entofcash Flow s -AllFunds ForFiscalYearEnding M arch 31,2002 EXHIBIT C Page 1 oft Cash flow s from operating activities: NetOperating Income (Loss) Adjustmentsto reconcile netincome (loss)to netcash provided by operating activities: (Gain)Loss on sale ofequipment (Increase)Decrease in tenants accountsreceivable (Increase)Decrease in accountsreceivable HUD (Increase)Decrease in misc accounts receivable (Increase)Decrease in prepaid itemsand otherassets (Increase)Decrease in suppliesinventory (Increase)Decrease intenantsecurity deposits(asset) (Increase)Decrease in item nottraced increase (Decrease)in accounts payable Increase (Decrease)in accounts payable HUD Increase (Decrease)inaecured compensated abences Increase (Decrease)in tenantsecurity deposit,';(liability) Increase (Decrease)in otherpayablesand deferred revenue Netcash provided (used)by operating activities $ (118,474) 285 8,651 27, (790) 411 (25) (963) $ (82,707) Cash flow s from noncapitalfinancing activities: Federalgrants State orlocalgrants Netcash provided (used)from noncapitalfinancing activities $ 113, ,011 Cash flow s from capitaland related financing activities: Acquisition ofcapitalassets $ (31"~,811) Acquisition ofcapitalassets -Low Rent (3,960) Proceeds from grants 311,811 Netcash provided (used)forcapitaland related financing activities (3,960) Cash flow from investing activities: Investmentincome (interestincome) Netcash provided (used)by investing activities NetIncrease (decrease)in cash and cash equivalents Cash and cash equivalents atbeginning ofyear Cash and cash equivalents atend ofyear(exhibita) $ 9,261 9,261 $ 35, ,167 $ 143,772 See notes to financialstatem ents Page 7 of28

8 St.M artinville H ousing A uthority N otes to FinancialStatem ents FiscalYearEnding M arch 31,2002 Housing Authorities are chartered as a public corporation underthe law s ofthe State of Louisiana for the purpose of providing safe and sanitary dwe ling accom m odations forthe residents ofst.m artinvile,louisiana. This creation was contingent upon the local governing body of the city, county, or parish as applicable. A five m em ber Board of Com m issioners governs the PHA. The m em bers,appointed by the M ayorofst.m artinvile,louisiana,serve a fouryear staggered term. U nderthe United States Housing Actof 1937,as am ended,the US Departm ent ofhud has directresponsibility foradm inistering low renthousing program s in the United States. Accordingly,H UD has entered into an annualcontributions contract w ith the PHA for the purpose of assisting the PHA in financing the acquisition, construction and leasing of housing units and to m ake annual contributions (subsidies)to the PHA forthe purpose ofmaintaining this low rent character. N O TE A -FINA N CIA L R EPO R TIN G (1) FinancialReportin.q Entity G enera ly accepted accounting principles require that the financialstatem ents presentthe accounts and operations ofthe PHA and its com ponentunits,entities for w hich the PHA is considered to be financia ly accountable. Blended com ponentunits,although lega ly separate entities,are,in substance,part ofthe PHA's operations and data from these units,ifany are com bined w ith data ofthe PHA. Each discretely presented com ponent, if any,would be reported in a separate colum n in the com bined financialstatem ents to em phasize that it is lega ly separate from the PHA. As ofm arch 31,2002,and forthe fiscalyearthen ended,the PHA had no discretely presented com ponentunits orany com ponent units thatare required to be blended in these financialstatem ents, (2) Accountin.q Principle The PHA uses the governm entalgaap enterprise m ethod ofaccounting The enterprise m ethod accounts foroperations in a m annersim ilarto a private business. Underthis m ethod,a lassets,including fixed assets,and a lliabilities are in one fund,and one financialstatem ent. The enterprise m ethod recognizes revenues and expenses on the fu laccrua basis. Revenues are recognized w hen earned and becom e m easurable Expenses are recognized in the period incurred,ifm easurable. Page 8 of28

9 St.M artinville H ousing A uthority N otes to FinancialStatem ents FiscalYearEnding M arch 31,2002 (continued) Depreciation expense m ust be recognized for the enterprise m ethod of accounting. Underthe HUD regulatory m ethod ofaccounting,depreciation was notrecognized. The PHA applies a lg ASB pronounc4;m ents as w e las the FinancialAccounting Standards Board pronouncem ents issued on or before Novem ber 30, 1989, unless those pronouncem ents conflictw ith orcontradictg ASB pronouncem ents. (3) Budgetary Data "lhe PH A is required by its H UD AnnualC ontributions C ontractto adoptannual budgets forthe Low RentHousing Program and the Section 8 Program s. Annual budgets are notrequired for m odernization and drug elim ination grants as their budgets are approved forthe length ofthe project. Both annualand project length budgets require grantorapprow ~l. (4) Cash and Cash Equivalents The entity defines cash and cash equivalents to include certificates ofdeposit, m oney m arketfunds,savings accounts,u.s.governm entsecurities,and dem and deposits. (5) TenantReceivab les Receivables forrentaland service charges are reported in the G eneralfund,net ofa low ances fordoubtfulaccounts. (6) Fixed Assets Fixed assets are recorded athistoricalcostand depreciated overtheirestim ated usefullives (excluding salvage vatue). Donated capitalassets are recorded at their estim ated fair value at the date of donation. Estim ated useful life is m anagem ent's estim ate of how long the asset is expected to m eet service dem ands. Interestcosts during construction have notbeen capitalized. (7) Co g.~_pensated Absences Authority em ployees accrue personal leave, or com pensated absences, by a prescribed form ula based on length ofservice. (8) Inventory and Prepaid Items A l inventory item s are valued at cost using first-in, first-out m ethod, and inventory is recorded using the purchase m ethod. At year-end,the am ountof inventory is recorded for external financial reporting. Certain paym ents to vendors reflectcosts applicable to future accounting periods and are recorded as prepaid item s. Prepaid expenses consistofprepaid insurance. Page 9 of28

10 St.M artinville H ousing A uthority N otes to FinancialStatem ents FiscalYearEnding M arch 31,2002 (continued) N O TE B -CA SH DEPO SITS W ITH FINAN CIAL INSTITU TIONS Itis the entity's policy fordeposits to be secured by co lateralvalued atm arketor par, w hichever is low er, less the am ount of the Federal Deposit insurance Corporation insurance. The entity's deposits are categorized to give an indication ofthe levelof risk assum ed by the entity at M arch 31,2002. The categories are described as fo low s: Category 1:Insured or co lateralized w ith securities held by the entity or by its agentin the entity's nam e. Category 2:Co lateralized w ith securities held by the pledging financia institution's trustdepartm entoragentin the entity's nam e. C ategory 3:Unco lateralized,uninsured and unregistered,butw ith securities held by the bank,its agent,pledged to the PHA,butnotin the PHA's nam e. Cash Deposits,categorized by levelofrisk,(atcost,which approximates market) are : TotalBank C ategory Category Category Balances $164,087 $164,087 1r $0 $o W hereas the reconciled generalledgerreflects a balance of$143,641,the actua bank balances were $164,087. N O TE C -A C TIVITIES O F TH E PHA At M arch 31,2002,the PHA operated the fo low ing:low RentPublic Housing Program under contract num ber FW -1283, Public Housing Com prehensive Im provem entassistance Program,Public Housing C apitalfund Program. N O TE D -C O N TIN G EN CIES The entity is subject to possible examinations by federal regulators who determ ine com pliance w ith term s, conditions, laws and regulations governing grants given to the entity in the currentand prioryears. These exam inations m ay result in required refund by the entity to federal grantors and/or program beneficiaries. Page 10 of28

11 N O TE E -FIXED A SSE TS St.M artinville H ousing A uthority N otes to FinancialStatem ents FiscalY ear Ending M arch 31,2002 (continued) As noted in Note A,softcosts form erly capitalized have been w ritten of and fixed assets are now depreciated on the straight-line m ethod over their estim ated usefullives as fo low s: Site im provem ents Buildings Building im provem ents Non-dwe ling structures Equipm ent 15 Years 33 Years 15 Y ears 33 Years 5 Years C urrent A ccum ulated N eta sset Low Rent Cost Depreciatior Depreciation Value Land $80,997 $0 $0 $80,997 Buildings 3,045, ,739 2,436, ,369 Furniture & Equipm ent - Dw e lings 88,918 4,635 76,930 11,988 Furniture & Equipm ent - Adm inistration 44, ,825 0 Leasehold Im provem en~ 440,649 9, ,034 17,615 TOTAL $3,700,516 $150,615 $2,981,547 $718,969 C urrent A ccum ulated N eta sset C lap Cost Depreciation Depreciation Value Buildings $431,800 $21,110 $21,110 $410,690 Furniture & Equipm ent - Dw e lings 6,454 1,844 2,945 3,509 Furniture & Equipm ent - Adm inistration 6,117 2,039 2,039 4,078 Leasehold Im provem ents 104, ,605 TOTAL $548,731 $25,748 $26,849 $521,882 Page 11 of28

12 St.M artinville H ousing A uthority N otes to FinancialStatem ents FiscalYearEnding M arch 31,2002 (continued) C urrent Accum ulated NetAsset C FP Cost Depreciation Depreciation Value Buildings $142,171 $0 $0 $142,171 Furniture & Equipm ent - Dw e lings 15,880 2,628 2,628 13,252 Furniture & Equipm ent - Adm inistration Leasehold Im provem ents 49, ,947 TOTAL $208,940 $2,628 $2,628 $206,311 The capitalization lim itis $ A lland and building are encum bered by a Declaration oftrustin favorofthe United States of A m erica as security for obligations guaranteed by the governm entand to protectotherinterests ofthe governm ent. N O TE F -LON G-TERM DEB T To provide forthe developm entand m odernization oflow -renthousing units,the PHA issued New Housing A uthority Bonds and Perm anent Notes-FFB. These bonds and notes are payable by HUD and secured by annualcontributions. The bonds and notes do notconstitute a debtby the authority,and accordingly,have notbeen reported in the accom panying financialstatem ents. The am ountofthis debtthathas been reclassified to HUD Equity is $0. N O TE G -R E TIREM EN T PLAN The entity provides benefits for all fu l-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 ent earnings. Em ployees are eligible to participate after a six-m onth exclusionary period. The em ployee contributes 5% and the entity contributes 8% ofthe em ployee's base m onthly salary.the entity'scontributionsforeach employee (and interestalocated to the em ployee's account)vestat20% annualy foreach yearofparticipation. An em ployee is fu ly vested after5 years ofparticipation. The entity's totalpayrolforthe fiscalyearending March 31,2002 was $113,097. The entity's contributions w ere calculated using the base salary am ount of Page 12 0f28

13 St.M artinville H ousing A uthority N otes to FinancialStatem ents FiscalYearEnding M arch 31,2002 (continued) $113,097. Contributions to the plan were $5, and $9,047.76,by the em ployees and the entity,respectively. N O TE H -DISCLO SURES ABO UT FAIR VALUE OF FINAN CIAL INS TR UM EN TS The fo low ing m ethods and assum ptions were used to estim ate the fairvalue of each class offinancialinstrum ents for w hich it is practicable to estim ate that value: Cash and Investm ents The carrying am ount approxim ates fair value because ofthe short m aturity of these instrum ents. N O TE I-USE O F ESTIM A TES IN PREPARA TION O F FINAN CIAL S TA TEM EN TS The preparation of financialstatem ents in conform ity w ith genera ly accepted accounting principles requires m anagem entto m ake estim ates and assum ptions thatafectcertain reported am ounts and disclosures. Accordingly,actualresults could diferfrom ~hose estim ates. N O TE J - PRIOR PERIOD ADJUSTM EN TS None N O TE K - IN TERFUND RECEIVABLES /PA YA BLES None N O TE L -CO M PENSA TED ABSEN CES AtM arch 31,2002,em ployees ofthe PHA have accum ulated and vested $14,415 ofemployee leave benefits,computed in accordance with GASB C odification Section C 60. The balance ofaccrued com pensated absences at March 31,2002 included $3,512 recorded as a currentobligation and $10,903 recorded as a non-currentobligation. Page 13 of28

14 St.M artinville Housing Authority St.M artinville,louisiana Expenditures offederalaw ards For FiscalYearEnding M arch 31,2002 SCHEDULE Page 1 of a Low RentPublic Housing $ 93, Public Housing Com prehensive Im provem entassistance Program 110, Public Housing CapitalFund Program TotalFederalExpenditures 220,632 $ 424,823 See notes to financialstatem ents Page 14 0f28

15 St.M artinvlile H ousing A uthority St.M artinville,louisiana Com bining Balance Sheet/FinancialData Schedule -A llfunds As of M arch 31,2002 SCHEDULE ti Page 1of2 Assets LOW Rent ClAP CFP Total CurrentAssets Cash -Unrestricted Cash -Restricted TotalCash AccountsReceivable -PHA Projects AccountsReceivable -HUD OtherProjects Acco unts Receivable -OtherGovernm ent Accounts Receivable -M iscelaneous Acco unts Receivable -Tenants Dwe ling Rents A lowance fordoubtfulacco unts -Dwe ling Rents Accrued InterestReceivable TotalAcco unts Receivable.NetofA lowance $ 143,772 $ $ $ 143, ,086 Interprogram Due From Investm ents -Unrestricted Prepaid Expenses and OlherAssels Inventories TotalOtherAssets $ 1,043 $ $ $ 1,043 TotalCurrentAssets $ 16g,504 $ $ $ 160,504 Nor~currentAssets: Land Buildings Furniture,Equipm ent& M achinery -Dwelings Furniture,Equipm ent& M achinery -Adm inistration Leasehold im provem ents Accum ulated Depreciation Construction In Progress TotalFixed Assets,NetofAccum ulated Depreciation $ 80,997 $ , ,649 (2,981,547) 431, , ,360 (26,849) $ $ 80, ,171 3,619,098 15, , ,883 49, ,956 (2,629) (3,011,025) OtherAssets TotalNoneurrantAssets TotalAssets See notes to financialstatements Page 15 of28

16 St.M artinville H ousing A uthority St.M artinville,louisiana C om bining B alance SheetIFinanc aldata Schedule -AllFunds As ofm arch 31,2002 SC HEDULE II Page 2 of2 _Liabilities and Equity Low Rent ClAP CFP Total CurrentLiabilities: Accrued Com pensated Absences Accrued W age/payro ltaxes Payable Accounts Payable < 90 Days Accounts Payable -HUD PHA Program s Accounts Payable -O therg overnm ent TenantSecurity Deposits Deferred Revenues CurrentPortion ofl'fdebt-capitalprojects Accrued Liabilities -O ther Interprogram Due To,rata1CurrentLiabilities 3,512 $ $ ,861 27,300 3, , $ 46,567 $ $ $ 46,667 NoncurrentLiabilities Long-term Debt,NetofCurrent-CapitalProjects NoncurrentLiabilities -Com pensated Absences TotalNoncurrentLiabilities $ $ $ $ $ 10,903 10,903 $ 10,903 10,903 $ $ TotalLiabilities $ 57,470 $ $ $ 57,479 Equity: ProjectNotes(HUD) Long-term Debt-HUD G uaranteed NetHUD PHA Contributions Otb,e.q;C~r~t~ibut{~ s TotalContributed Capital 716,251 $ $ $ 6~12g Undesignated Fund Balance/Retained Earnings TotalEquity TotalLfabilities and Equity See notesto financialstatem ents Page 16 of28

17 St.M artinville Housing Authority St.M artinville,i.ouisiana Com bining Statem entofrevenue,expenses,and Change in Equity! FinancialData Schedule -A llfunds ForFiscalYearEnding M arch 31,2002 SC HEDULE Itl Page 1 of2 Revenues: NetTenantRentalRevenue NetTenantRevenue -Other TotalTenantRentalRevenue HUD PHA Grants CapitalGrants Investm entincom e -Unrestricted OtherRevenue TotalOtherRevenue TotalRevenue Operating Expenses: Administrative Salades Auditing Fees Com pensated Absences Em ployee BenefitContributions-Adm inistrative OtherOperating -Adm inistrative TenantServices-Salaries Em ployee BenefitContributions-TenantServices "TenantServices-O ther W ater Electricity Gas OtherUtilities Expense O rdinary Maintenance & Operations-Labor Ordinary Maintenance & Operations-M aterials Ordinary M aintenanse & O perations-contract Em ployee BenefitContributions-M aintenance Protective Serv ices -Labor Ptolective Serv ices -OtherContractCosts Protective Services -Other Employee Bsnefits Services Insurance Prem ium s OtherGeneralExpenses Paym ents In Lieu oftaxes Bad Debt-O ther Severence Expense TotalOperating Expenses Before Depreciation Low Rent ClAP CFP Total $ 113,414 $ 110,491 $ 220,632 $ 444,537 $ 340,379 $ 110,491 $ 220,632 $ 671,502 $ 62,030 $ 4, ,411 14,664 5, ,064 51,067 19,B59 22,417 15,981 39,523 1,000 14,861 1,747 1,706 $ 35 1,640 62,030 4, ,411 16,339 5,829 57, ,064 51,067 19,659 22,417 15,981 39,523 1,000 14,861 1, $ 339,241 $ 35 $ 1,640 $ 340,916 See notes to financialstatem ents Page 17 of28

18 St.M artinviue Housing Authority St.M artinville,louisiana Com bining Statem entof Revenue,Expenses,and Change in Equity/ FinancialData Schedule -A llfunds ForFiscalYearEnding M arch 31,2002 SCHEDULE Il Page 2 of2 Low Renl ClAP CFP Total ExcessRevenue OverExpenses Before Depreciation Extraordinary Maintenance Casualty Losses -Non-Capitalized Housing Assistance Payments Depreciation Expense Operating Transfers -In Operating Transfers -Out NetOperatingIncome(Loss)AfterDepreciation Beginning Equity@ NetOperating Income(Loss)AfterDepreciation PriorPeriodAdjustments CapitalOutlays Enterprise Fund Endir,g Equity@ See notes to financialstatem ents Page 18 0f28

19 St.M artinville Housing A uthority St.M artinville,louisiana Com bined Statem entofrevenues & Expenditures -Budgetvs,Actua Low RentPublic Housing Program ForFiscalYearEnding March 31,2002 Schedute IV Page 1ofI Revenues LocalSources: TotalTenantRentalRevenue Investm entincom e -Unrestricted Receipts from Sale ofequipm ent OtherRevenue FederalSources: Operating Subsidy /HUD PHA Grants AnnualContributions TotalRevenues Low RentPublic Housing Variance Budget Actual Actual-Budget OvertUnder} $ $ 340,379 $ 12,320 Expenditures Adm inistrative TenantServices Utilities O rdinary M aintenance & Operations Protective Services GeneralExpenses Nonroutine Maintenance CapitalExpenditures PriorYearAdjustments Housing Assistance Paym ents TotalExpenditures ExcessRevenues (Deficiency)OverExpenses Before Depreciation 90,860 $ 81,606 $ 2,725 70,150 70, ,343 88,850 3, ,229 4,523 (9,254.00) (2,725.00) (87.00) (32,f17.0o) 5, , (4, See notes to financialstatements Page 19 of28

20 St.M artinville Housing A uthority St.M artinville,louisiana Statem entand Certification ofactualm odernization Costs ForFiscalYearEndin(j M arch 31,2002 Schedule V Page 1 ofi Modernization ProjectNumberLA48P O riginalfunds Approved LessFunds Expended (ActualModernization Cost) $ 343, Excess Funds Approved Funds Disbursed LessFundsExpended (ActualModernization Cost) $ 343, Excess Funds Disbursed The distribution ofcostsby projectasshown on HUD Final Perform ance and Evaluation Reportaccom panying the ActuarM odernization CostCertificate dated April26,2001, subm itted to HUD forapprovalare in agreementwith the PHA's records. A lm odernization costs have been paid and atirelated liabilities have been discharged through paym ents. See notes to financialstatem ents Page 20 of28

21 W illiam D anielm cc askill,c PA A ProfessionalA ccounting Corporation 5150 Highw ay 22,Suite C -15 M andeville,louisiana Telephone Fax E-m aildanny@ cpaandco.com M em berof Louisiana Society ofcpa 's M ississippisociety ofc PA 's A m erican Institute of C PA 's REPO RT O N CO M PLIA NCE A ND O N INTERNAL CO NTRO L OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORM ED IN ACCORDANCE W ITH GOVERNMENTAL AUDITING STANDARDS Board ofcom m issioners St.M artinvile Housing Authority St.M artinvile.louisiana Ihave audited the financialstatem ents ofthe St.M artinvile Housing Authority (PHA),as ofand forthe yearended March 31,2002 and have issued my report thereon dated Septem ber23,2002. Iconducted m y audit in accordance w ith auditing standards genera ly accepted in the United States ofam erica and the standards applicable to financial audits contained in G overnm ent A udit Standards,issued by the Com ptro lerg eneralofthe United States. C om pliance _ A s part of obtaining reasonable assurance about w hether the PHA's financial statem ents are free ofm aterialm isstatem ent,iperform ed tests ofits com pliance w ith certain provisions oflaw 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 entam ounts. However,providing an opinion on com pliance w ith those provisions was notan objective ofmy auditand,accordingly,ido not express such an opinion. The results of m y tests disclosed no instances of noncom pliance that are required to be reported under G overnm ent A uditin,q Standards. nternalcontrolo verfinancialreportina In planning and perform ing m y audit,iconsidered the PHA's internalcontrolover financialreporting in orderto determ ine m y auditing procedures forthe purpose of expressing m y opinion on the financial statem ents and not to provide assurance on the internalcontrolover financialreporting. M y consideration of the internal control over financial reporting w ould not necessarily disclose a l Page 21 of28

22 St.M artinvile Housing A uthority Page 2 FiscalYearEnding M arch 31,2002 m atters in the internal control over financial reporting that m ight be m aterial weaknesses. A m aterial w eakness; is a condition in w hich the design or operation ofone orm ore ofthe internalcontrolcom ponents does notreduce to a relatively low levelthe risk that m isstatem ents in the am ounts that w ould be m aterialin relation to the financialstatem ents being audited m ay occurand not be detected w ithin a tim ely period by em ployees in the norm al course of perform ing their assigned functions. I noted no m atters involving the internal controloverfinancialreporting and its operation that Iconsiderto be m aterial w eaknesses. This reportis intended forthe inform ation ofthe auditcom m ittee,m anagem ent, and forhud. How ever,this report is a m atterofpublic record and its distribution is notlim ited. W illiam Daniel ~/ McCask,CPA,APAC ~;,:~:'~'.,o~-' W iliam DanielM cc askil,c PA A ProfessionalAccounting Corporation Septem ber23,2002 Page 22 of28

23 W illiam D anielm cc askill,c PA A ProfessionalA ccounting Corporation 5150 H ighw ay 22,Suite C -15 M andeville,louisiana Telephone Fax E-m aildanny@ cpaandco.com M em ber of Louisiana Society of C PA 's M ississippisociety of C PA 's A m erican Institute ofc PA 's REPORT ON COM PLIANCE W ITH REQUIREMENTS APPLICABt.E TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COM PLIANCE IN ACCORDANCE W ITH OM B CIRCULAR A-133 Board ofcom m issioners St.M artinvile Housing Authority St.M artinvile.louisiana Com pliance Ihave audited the compliance ofthe St.Martinvile Housing Authority (PHA)with the types of com pliance requirem ents described in the U.S. O ffice of M anaoem entand Budoet(O M B IC irculara -133 C om oliance Supplem entthatare applicable to each ofits m ajorfederalprograms forthe yearended March 31, The PHA's majorfederalprograms are identified in the summary of auditor's results section of the accom panying schedule of findings and questioned costs. C om pliance w ith the requirem ents of law s, regulations, contracts,and grants applicable to each ofits majorfederalprograms is the responsibility of the PHA's m anagem ent. M y responsibility is to express an opinion on the PHA's com pliance based on m y audit. I conducted m y audit of com pliance in accordance w ith: auditing standards genera ly accepted in the United States ofam erica;the standards applicable to financial audits contained in G overnm ent Auditing Standards, issued by the Com ptro ler G eneralofthe United States;and O M B Circular A-133,Audits of States.LocalG overnm ents.and Non ProfitO raanizations. Those standards and O M B C ircular A-133 require that I 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 thatcould have a directand m aterial effecton a majorfederalprogram occurred. An auditincludes examining,on a testbasis,evidence aboutthe PHA's com pliance w ith those requirem ents and perform ing such other procedures as w e considered necessary in the circum stances. Page 23 of28

24 St.M artinvule H ousing A uthority FiscalYearEnding M arch 31,2002 Page 2 Ibelieve that m y audit provides a raasonable basis for m y opinion. M y audit does not provide a legaldeterm ination on 'the PHA's com pliance w ith those requirem ents. In m y opinion,the PHA's com plied,in a lm aterialrespects w ith the requirem ents referred to above thatare applicable to each ofits majorfederalprograms forthe yearended M arch 31,2002. nternalc ontrolo verc om pliance The m anagem ent of the PHA is responsible for establishing and m aintaining e fective internalcontrolovercom pliance w ith requirem ents oflaw s,regulations, contracts and grants applicable to federalprogram s. In planning and perform ing m y audit, I considered the PHA's internal control over com pliance w ith requirements thatcould have a directand materialefecton a majorfederal program in order to determ ine m y auditing procedures for the purpose of expressing m y opinion on com pliance and to testand reporton internalcontrol overcom pliance in accordance w ith O M B C irculara-133. M y consideration ofthe internalcontrolovercom pliance w ould notnecessarily disclose a lm atters in the internalcontrolthatm ightbe m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design oroperation ofthe internal control com ponents does not reduce to a relatively low level the risk that noncom pliance w ith applicable requirem ents oflaw s,regulations,contracts and grants thatwould be materialin relation to a majorfederalprogram being audited m ay occurand notbe detected w ithin a tim ely period by em ployees in the norm al course of perform ing their assigned functions. M y consideration ofthe internal controlovercom pliance w ould notnecessarily disclose a lm atters in the internal control that m ight be reportable conditions and, accordingly, w ould nat necessarily disclose a l reportable conditions that are also considered to be m aterial w eaknesses. I noted no m atters involving the internal control over com pliance and its operation thaticonsiderto be m aterialw eaknesses. This report is intended forthe inform ation ofthe auditcom m ittee,m anagem ent, and HU D. How ever,this reportis a m atterofpublic record and its distribution is notlim ited. W iliam Daniel ~"~'~',~' ~ ~ # McCaskil, CPA,APAC ~ ";~. W iliam DanielM ccaskil,cpa A ProfessionalAccounting Corporation Septem ber23,2002 Page 24 of28

25 St.M artinville H ousing A uthority Schedule ofauditadjusting JournalEntries FiscalY ear E nding M arch 31,2002 Account ] Debit I Credit CompensatedAbsences-Current $10,903 I omp Absences-Non-curent I I $10,903 To record the non-currentportion ofcom pensated absences

26 St.M artinville H ousing A uthority Schedule of PriorA uditfindings FiscalY ear Ending M arch 31,2002 There w ere no findings in the prioraudit Page 26 of28

27 St.M artinville Housing A uthority Schedule of C urrent A uditfindings A nd Q uestioned Costs FiscalY ear E nding M arch 31,2002 PerA-133,Section 505(d) I. Sum m ary Schedule ofauditors Results The reportincludes an unqualified opinion on the financialstatem ents There w ere no reportabte conditions in internatcontrots found thatare required to be disclosed atthe financialstatem entlevel. The auditdisclosed no noncom pliance thatis m aterialto the financia statem ents. iv. No reportable conditions in internalcontrolovermajorprograms were disclosed by the audit. v. The compliance reportissued formajorprograms was unqualified vi. The report disclosed no auditfindings required to be reported under Section 510a ofa-133. vi. A lmajorprograms have over,~ightby HUD and are identified as folows C FDA# Nam e ofpro.qram Public Housing Com prehensive Im provem entassistance Program v i. The do larthreshold used to distinguish between Type A and Type B programs was $300,000. ix. The auditee was considered a low risk auditee 2. Finding relating to the financialstatem ents required to be reported w ith GAGAS are as fe low s: NO NE 3. Findings and questioned costs forfederalawards as defined in A-133 Section 510a a lw ith H U D oversight: N O N E Page 27 of28

28 St.M artinville H ousing A uthority Schedule of C orrective A ction Plan FiscalYearEnding M arch 31,2002 None Page 28 of28