THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW. CHICKASAW, AlABAMA REPORT ON EXAMINATION OF FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA

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1 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW CHICKASAW, AlABAMA REPORT ON EXAMINATION OF FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA YEAR ENDED JUNE 30, 2011

2 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW CHICKASAW, ALABAMA TABLE OF CONTENTS Page Independent Auditors' Report Management's Discussion and Analysis (MD&A) FINANCIAL STATEMENTS: Statement of Net Assets Statement of Revenue, Expenses and Changes in Net Assets Statement of Cash Flows Notes to Financial Statements SUPPLEMENTARY DATA: Schedule of Assets, Liabilities and Net Assets by Program Schedule of Revenues, Expenses and Changes in Net Assets by Program 26 Statement and Certification of Program Costs Capital Fund Program 27 Schedule of Expenditures of Federal Awards 28 Financial Data Schedule SCHEDULE OF FINDINGS AND QUESTIONED COSTS 32 33

3 YEAGER & BOYD, LLC CERTIFIED PUBLIC ACCOUNTANTS 5501 HIGHWAY 280 BIRMINGHAM, ALABAMA (205) (800) FAX (205) I Board of Commissioners The Housing Authority of the City of Chickasaw Chickasaw, Alabama INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the Housing Authority of the City of Chickasaw, Alabama as of and for the year ended June 30, 201 t, as listed in the table of contents These financial statements are the responsibility of the Authority's management Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of June 30, 2011, and the changes in net assets and its cash flows, for the year then ended in conformity with accounting principles generally accepted in the United States of America In accordance with Government Auditing Standards, we have also issued our report dated March 12, 2012 on our consideration of the Authority's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and hot to provide an opinion on the internal control over financial reporting or on compliance That report is an iqtegral part of an audit performed in accordance with Government Auditing Standards and sl)ould be considered in assessing the results of our audit Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 7 through 11 be presented to supplement the basic financial statements Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance 1

4 Our audit was performed for the purpose of forming an op1mon on the financial statements that collectively comprise the Authority's basic financial statements The accompanying Financial Data Schedule is presented for purposes of additional analysis and is not a required part of the basic financial statements Further, other supplementary data as listed in the table of contents is presented for Department of Housing and Urban Development information and is not a required part of the financial statements The accompanying schedule of expenditures of Federal Awards is presented for purposes of additional analysis as required by US Office of Management and Budget Circular A133, "Audits of States, Local Governments and NonProfit Organizations", and is not a required part of the basic financial statements The Financial Data Schedule, supplementary data and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole Birmingham, Alabama March 12, 2012 I «<) ~ d f: J Yeager & Boyd 2

5 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW CHICKASAW, ALABAMA REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATIERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners The Housing Authority of the City of Chickasaw Chickasaw, Alabama We have audited the financial statements of the Authority as of and for the year ended June 30, 2011, which collectively comprise the Authority's basic financial statements and have issued our report thereon dated March 12, 2012 We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the C()mptroller General of theunited States Internal Control Over Financial Reporting In planning and performing our audit, we considered the Authority's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control over financial reporting Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over financial reporting A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Authority's financial statements will not be prevented, or detected and corrected on a timely basis Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in the internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards 3

6 This report is intended solely for the information of the Board of Commissioners, management and federal awarding agencies and passthrough entities, and is not intended to be and should not be used by anyone other than these specified parties Birmingham, Alabama March 12,

7 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA CHICKASAW, ALABAMA INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A133 Board of Commissioners The Housing Authority of the City of Chickasaw Chickasaw, Alabama Compliance We have audited the Authority's compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A133 Compliance Supplement that could have a direct and material effect on each the Authority's major federal programs for the year ended June 30, 2011 The Authority's major programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Authority's management Our responsibility is to express an opinion on the Authority's compliance based on our audit We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued hy the Comptroller General of the United States; and OMB Circular A133, Audits of States, Local Governments, and NonProfit Organizations Those standards and OMB Circular A133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred An audit includes examining, on a test basis, evidence about the Authority's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances We believe that our audit provides a reasonable basis for our opinion Our audit does not provide a legal determination on the Authority's compliance with those requirements In our opinion, the Authority complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2011 Internal Control Over Compliance The management of the Authority is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs In planning and performing our audit, we considered the Authority's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, and to test and report on internal control over compliance in accordance with OMB Circular A133, but not for the purpose of expressing opinion on the effectiveness of internal control over compliance Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over compliance 5

8 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis Our Consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies or material weaknesses We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above This report is intended solely for the information and use of management, the Board of Commissioners, and federal awarding agencies and passthrough entities, and is not intended to be and should not be used by anyone other than these specified parties Birmingham, Alabama March 12,

9 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 This section of the Authority's annual financial report presents Management's analysis of the Authority's financial performance during the Fiscal Year Ended June 30, 2011 The operation Qf the Housing Authority of the City of Chickasaw is comprised of a Low Income Public Housing Program, a Capital Fund Program and a Stimulus Grant The Public Housing Program is funded with rental revenue, miscellaneous tenant charges, and Department of Housing and Urban Development (HUD) grants The Capital Fund Program and the Stimulus Grant are funded entirely by grants from HUD FINANCIAL HIGHLIGHTS 1 Total assets exceed total liabilities by 2 Unrestricted net assets equal 3 Total equity increased by $9,128, , ,170 REQUIRED FINANCIAL STATEMENTS The Financial Statements of the Authority report information using the Enterprise Fund accounting methods: Statement of Net Assets includes all of the Authority's assets and liabilities and provides information about the amounts and investments in assets and the obligations to Authority creditors It also provides a basis of assessing the liquidity and financial flexibility of the Authority Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial health of the Authority is improving or deteriorating This statement was formerty known as a Balance Sheet Statement of Revenues, Expenses and Changes in Net Assets provides information as to the increase or decrease of current year revenues over expenses This statement was formerly known as an Income Statement Statement of Cash Flows provides information about the Authority's cash receipts and disbursements during the reporting period The statement discloses net cash provided by, or used for operating activities, noncapital financing activities, from capital and related financing activities and from investing activities 7

10 FINANCIAL ANALYSIS STATEMENT OF NET ASSETS Variance Assets: Current and Restricted Assets $ 952,123 $ 1,874,652 $ (922,529) Capital and Other Assets 9,922,801 8,824,636 1,098,165 Total Assets $ 10,87 4,924 $ 10,699,288 $ 175,636 Liabilities: Current Liabilities $ 156,360 $ 153,293 $ 3,067 Non Current Liabilities 1,589,636 1,637,237 (47,601) Total Liabilities $ 1,745,996 $ 1,790,530 $!44,534! Net Assets: Invested in Capital Assets net of Related Debt $ 8,309,743 $ 8,049,498 $ 260,245 Restricted Net Assets 78,313 77, Unrestricted Net Assets 740, ,726 (40,854) Total Net Assets $ 9,128,928 $ 8,908,758 $ 220,170 As illustrated, in the Statement of Net Assets, the overall Net Assets of the Authority increased by $220,170 A decrease in cash and investments accounted for the majority of the change in current and restricted assets Capital Asset additions exceeding depreciation accounted for the increase in capital and other assets Noncurrent liabilities decreased due to the payment of debt CHANGE IN UNRESTRICTED NET ASSETS Unrestricted Net Assets, June 30, 2010 $ 781,726 Results of Operations (9,374) Investment Income 11,379 Capital Assets Purchased (288,876) Principal and Interest Payments on Capital Debt (54,688) Proceeds from Sale Capital Assets 6,910 Transfer to Restricted (779) Depreciation & Amortization Expense 294,574 Unrestricted Net Assets, June 30, 2011 $ 740,872 While the results of operations are a significant measure of the Authority's activities, the analysis of the changes in Unrestricted Net Assets provides a clearer change in financial wellbeing 8

11 FINANCIAL ANALYSIS (continued) STATEMENT OF REVENUES AND EXPENSES Variance Revenues: Tenant Rental Revenue $ 365,716 $ 376,679 $ (10,963) Operating Grants 1,133,612 1,089,550 44,062 Capital Grants 220, ,125 (724,093) Investment Income 11,379 28,756 (17,377) Other Income 21,883 29,256 (7,373) Sale of Capital Assets 6,910 6,910 Total Revenues $ 1,759,532 $ 2,468,366 $ (708,834) Expenses: Administrative Expenses $ 441,269 $ 363,997 $ 77,272 Tenant Services '101 (941) Utilities 203, ,962 16,565 Maintenance & Operations 497, ,119 (40,874) Protective Services 12,225 24,230 (12,005) General Expense 81, ,744 (23, 159) Interest Expense 8,777 8,777 Depreciation & Amortization 294, ,695 33,879 Total Expenses $ 1,539,362 $ 1,479,848 $ 59,514 Excess (Deficiency) Revenues over Expenses $ 220,170 $ 988,518 $ (768,348) REVENUES In reviewing the Statement of Revenues, Expenses, and Net Assets, you will find that 77% of the Authority's revenue is derived from grants from the Department of Housing and Urban Development, 21% of the Authority's revenue is from dwelling rent, and 2% from investment and other income EXPENSES In reviewing the Statement of Revenues, Expenses and Net Assets you will find that 29% of the Authority's expenses are for administrative, 32% for maintenance, 13% for utilities, 19% for depreciation, 1% for protective and tenant services and 6% for interest and general expenses Excess (Deficiency) Revenues over Expenses The excess of revenues over expenses decreased from last year due to a decrease in revenues and an increase in expenses The decrease in revenues can be attributed primarily to a decrease in capital grants received during the year Capital grants decreased due to the timing of the draws in the capital fund program Operating grants slightly increased due to an increase in funding in the low rent program The increase in expenses can be attributed primarily to an increase in administrative and depreciation expenses Administrative cost increased due to an increase in administrative expenses associated with two new fulltime employees hired Depreciation increased due to the placing in service completed construction projects Maintenance costs decreased primarily due to a decrease in labor costs General expenses decreased due to a decrease in compensated absences 9

12 FINANCIAL ANALYSIS (contim;ed) CAPITAL ASSETS As of year end, the Authority had $9,892,842 invested in a variety of capital assets as reflected in the following schedule, which represents a net increase (additions, deductions and depreciation) of 13% from the end of last year l Variance Land $ 12,216 $ 12,216 $ Buildings 14,483,588 11,967,755 2,515,833 Furniture & Equipment 864, , ,362 Construction in Process 470,628 1,830,084 (1,359,456) Accumulated Depreciation (5,938,208) (5,645,774) (292,434) Net Capital Assets $ 9,892,842 $ 8,792,537 $ 1,100,305 %Change 0% 21% 38% 74% 5% 13% The following reconciliation summarizes the change in Capital Assets: Beginning Balance, July 1, 2010 Additions: Improvements Capital Fund Program Improvements Fannie Mae loan Proceeds Improvements Operations Capitalized interest Depreciation Expense Ending Balance, June 30, 2011 $ $ 8,792, , , ,629 98,247 (292,434) 9,892,842 Debt Outstanding As of the end of the fiscal year, the Authority had $1,613,058 in debt (bonds, notes, etc) outstanding compared to $1,658,969 last year, a decrease of $45,911 The debt consists of a Fannie Mae lcian obligation of $1,613,058 Proceeds from this loan are being used for renovation and construction projects The repayment of this debt is to be made out of Capital Fund Program grant funds long Term Debt Capital Projects Fannie Mae Loan $ 1, $ 1,658,969 Total Long Term Debt $ 1,613,058 $ 1,658,969 ' 10

13 ECONOMIC FACTORS AND EVENTS AFFECTING OPERATIONS Factors that may affect the financial position of the Authority in the subsequent fiscal year are as follows: REAC Federal funding provided by Congress to the Department of Housing and Urban Development Local labor supply and demand, which can affect salary and wage rates Local inflationary, recessionary and employment trends, which can affect resident incomes and therefore the amount of rental income Inflationary pressure on utility rates, supplies and other costs The Real Estate Assessment Center performs a financial evaluation of each Public Housing Authority as it compares to its peers The evaluation is known as the Financial Assessment SubSystem (FASS) Preliminary scoring of FASS indicates that the Authority will be rated as a Standard Performer CONCLUSION The Chickasaw Housing Authority's management is committed to staying abreast of regulations and appropriations as well as maintaining an ongoing analysis of all budgets and expenses to ensure that the Authority continues to operate at the highest standards established by the Real Estate Assessment Center and the Department of Housing and Urban Development CONTACT This financial report is designed to provide our residents, the citizens of the Chickasaw area, all federal and state regulatory bodies, and any creditors with a general overview of the Authority's finances If you have any questions regarding these financial statements or supplemental information, you may contact Mike Sweet <Jt 604 Dumont Street, Chickasaw Alabama

14 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA STATEMENT OF NET ASSETS JUNE 30, 2011 ASSETS Current Assets Cash and Cash Equivalents Accounts Receivable Other Tenants Accounts Receivable (Allowance for Doubtful Accounts) Accrued Interest Receivable Investments Prepaid Costs Inventory net of Allowances Total Current Assets $ Enterprise Fund 441,989 13,920 6,544 (5,404) 1, ,601 17,735 20, ,810 Restricted Assets Restricted Cash Total Restricted Assets 78,313 78,313 Capital Assets Land Buildings Furniture & Equipment Construction in Progress (Less): Accumulated Depreciation Net Capital Assets 12,216 14,483, , ,628 15,831,050 (5,938,208) 9,892,842 Other Assets Deferred Financing Costs net of Amortizaiton Total Noncurrent Assets 29,959 29,959 Total Assets $ 10,874,924 See the accompanying notes to financial statements 12

15 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA STATEMENT OF NET ASSETS JUNE 30, 2011 LIABILITIES AND NET ASSETS LIABILITIES Enterprise Fund Current Liabilities Accounts Payable $ 5,513 Accrued Wage/Payroll Taxes 3,816 Accrued Compensated Absences 4,510 Accrued Interest Payable 8,805 Accrued Pilot 20,482 Resident Security Deposits 50,230 Deferred Revenues 6,049 Current Portion of Note Payable 48,980 Other Current liabilities 7,975 Total Current Liabilities 156,360 LongTerm Liabilities Note Payable 1,564,078 Accrued Compensated Absences 25,558 Total LongTerm Liabilities 1,589,636 Total Liabilities 1,745,996 Net Assets Investment in Capital Assets net of Related Debt 8,309,743 Restricted Net Assets 78,313 Unrestricted Net Assets 740,872 Total Net Assets 9,128,928 Total Liabilities and Net Assets $ 10,874,924 See the accompanying notes to financial statements

16 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2011 Enterprise Fund Operating Revenues Dwelling Rent Operating Grants Other Revenue Total Operating Revenues $ 365,716 1,133,612 21,883 1,521,211 Operating Expenses Administrative Tenant Services Utilities Maintenance and Operations Protective Services General Expense Depreciation & Amortization Expense Total Operating Expenses 441, , ,245 12,225 81, ,574 1,530,585 Operating Income (Loss) (9,374) NonOperating Revenues (Expenses) 1 nterest Expense Gain on the Sale of Fixed Assets Investment Income Total NonOperating Rev/(Exp) (8,777) 6,910 11,379 9,512 Increase (Decrease) before Capital Contributions Capital Contributions ,032 Increase (Decrease) in Net Assets Net Assets, Beginning of year Net Assets, End of year $ 220,170 8,908,758 9,128,928 See the accompanying notes to financial statements 14

17 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2011 Cash flows from operating activities: Cash Received from Dwelling Rent Cash Received from Operating Grants Cash Received from Other Income Cash Payments for Salaries and Benefits Cash Payments to Vendors Net Cash flows provided (used) by operating activities Enterprise Fund $ 368,363 1 '162,492 32,903 (684,000) (568,954) 310,804 Cash flows from noncapital financing activities: Net cash flows provided (used) by noncapital financing activities Cash flows from capital and related financing activities: Capital Outlay Capital Grants Received Proceed Sale from of Capital Assets Principal and Interest Payments on Capital Debt Net cash flows provided (used) by capital and related financing activities Cash flows from investing activities: Cash Transfer from (to) Investments Interest earned from cash and cash equivalents Amounts received from loan to the Development Corporation Net cash flows provided (used) by investing activities Net Increase (decrease) in cash and cash equivalents Cash and cash equivalents beginning of year: Cash and cash equivalents, end of year: Reconciliation of operating income to net cash provided by (used in) operating activities: Operating Income (Loss) Adjustment to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation & Amortization Change in Tenants Accounts Receivable Change in Accounts Receivable HUD Change in Deferred Revenue Change in Tenant Security Deposits Change in Prepaid Insurance Change in Accounts Payable Change in Accrued Expenses Change in Other Current Liabilities Net cash provided by (used in) operating activities (1,392,739) 220,032 6,910 (54,938) (1,220,735) 130,852 13,477 (11,455) 132,874 (777,057) 1,297,359 $ 520,302 $ (9,374) 294,574 (74) 28,880 2,721 6,245 (4,829) (10,893) (1,221) 4,775 $ 310,804 See the accompanying notes to financial statements 15

18 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW CHICKASAW, ALABAMA NOTE A SIGNIFICANT ACCOUNTING POLICIES NOTES TO FINANCIAL STATEMENTS JUNE 30, 2011 The financial statements of the Housing Authority have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles The Authority is a Special Purpose Government engaged only in businesstype activities and therefore, presents only the financial statements required for the enterprise fund, in accordance with GASB Statement 34 paragraph 138 The Authority has multiple programs which are accounted for in one enterprise fund, which is presented as the "enterprise fund" in the basic financial statements as follows: Enterprise Fund In accordance with the Enterprise Fund Method, activity is recorded using the accrual basis of accounting and the measurement focus is on the flow of economic resources Under the accrual basis of accounting revenues are recorded when earned and expenses are recorded at the time liabilities are incurred This required the Housing Authority to account for operations in a manner similar to private business or where the Board has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability Governmental Accounting Standards The Housing Authority has applied all applicable Governmental Accounting Standards Board pronouncements as well as pronouncements issued by the Financial Accounting Standards Board on or before November 30, 1989, and those issued after November 30, 1989 except for those that conflict with or contradict Governmental Accounting Standards Board pronouncements The Housing Authority considers cash on hand and cash in checking to be cash equivalents Cash on hand is not included in calculation of collateral required Accounts Receivable Tenant accounts receivables are carried at the amount considered by management to be collectible Other accounts receivable consists of amounts due from the affiliated nonprofit organization, Chickasaw Development Corporation Prepaid Items Prepaid Items consists of payments made to vendors for services that will benefit future periods Prepaid items include air conditioners purchased, but not yet received Deferred Revenue The Authority recognizes revenues as earned Amounts received in advance of the period in which it is earned is recorded as a liability under Deferred Revenue 16

19 NOTES TO FINANCIAL STATEMENTS CONTINUED NOTE A SIGNIFICANT ACCOUNTING POLICIES CONTINUED Inventory Inventory consists of supplies that have not been used or consumed Inventory is valued at average cost and recorded as an expense when it is used or consumed Property and Equipment Property and equipment are recorded at cost Depreciation is computed using the straightline method over the estimated useful lives of the assets The costs of maintenance and repairs are expensed while significant renewals and betterments are capitalized Small dollar value minor equipment items are expensed Depreciation on assets has been expensed in the statement of income Estimated useful lives are as follows: Buildings & Improvements Furniture fixtures and equipment 1540 years 3 10 years Revenue Accounting Policies Dwelling rent income, HUD grants received for operations, other operating fund grants and operating miscellaneous income are shown as operating income HUD grants received for capital assets and all other revenue is shown as nonoperating revenue These financial statements do not contain material interfund revenues and expenses for internal activity The policy is to eliminate any material interfund revenues and expenses for these financial statements Intangible Assets In accordance with GASB 51 intangible assets with finite useful lives will be amortized over their estimated useful life Bond issuance costs consist primarily of unamortized revenue bond issuance costs Expenses relating to the issuance of the capital program bonds are capitalized and amortized on a straightline basis over the term of the bond's maturity Cost Allocation Plan In accordance with OMB Circular A87, the Authority utilizes a Cost Allocation Plan The Authority allocates indirect costs to programs on the basis of one of the following methods: direct salaries and wages, percentage of office square footage, number of vouchers and/or units, estimated/actual tirne spent, number of checks processed or the allotment stipulated in contractual agreements 17

20 NOTES TO FINANCIAL STATEMENTS CONTINUED NOTEB REPORTING ENTITY DEFINITION The Housing Authority is a separate nonprofit corporation with a Board of Commissioners The Mayor appoints the Board of Commissioners However, the Housing Authority has complete legislative and administrative authority and it recruits and employs personnel The Authority adopts a budget that is approved by the Board of Commissioners Subsidies for operations are received primarily from HUD The Authority has substantial legal authority to control its affairs without local government approval; therefore, all operations of the Authority are a separate reporting entity as reflected in this report The Authority has no other component units The Authority is responsible for its debts and is entitled to surpluses No separate agency receives a financial benefit nor imposes a financial burden on the Authority Related Organizations The Authority manages the Chickasaw Development Corporation, a nonprofit organization, which is not a component unit of the Housing Authority because the Corporation has a separate Board of Directors The Corporation's Board of Directors appoints the Board of Directors The Authority is not financially accountable for the organization Accordingly, financial information for this organization is excluded from the Authority's financial statements NOTE C CASH AND INVESTMENT DEPOSITS Custodial Credit Risk The Housing Authority policy is to limit credit risk by adherence to the list of HUD permitted investments, which are backed by the full faith and credit of or a guarantee of principal and interest by the US Government Interest Rate Risk The Authority's formal investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from interest rate volatility The US Department of HUD requires housing authorities to invest excess funds in obligations of the US, certificates of deposit or any other Federally insured investments The Housing Authority's cash and cash equivalents consist of cash held in interest bearing checking accounts totaling $520,102 Investments consist of eight certificates of deposit totaling $376,601 The certificates of deposit bear interest at rates ranging from 044% to 216% with various maturity periods, and penalties for early withdrawal Any penalties for early withdrawal would not have a material effect on the financial statements The remaining $200 is held in the form of petty cash or change fund Deposits with financial institutions are secured as follows: Insured by FDIC Collateralized with specific securities in the Authority name which are held by the financial institution Uncollateralized Book Balance $ 626, ,102 $ 896,703 Bank Balance $ 627, ,746 $ 921,020 All investments are carried at cost plus accrued interest, which approximates market The Authority had no realized gains or losses on the sale of investments The calculation of realized gains or losses is independent of a calculation of the net change in the fair value of investments 18

21 NOTES TO FINANCIAL STATEMENTS CONTINUED NOTE D CONTRACTUAL COMMITMENTS The significant Outstanding Contractual Commitments as of the Statement of Net Assets Date are as follows: Type Commitment None of any significance NOTE E RISK MANAGEMENT The Housing Authority is exposed to various risks of losses related to torts; thefts of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters The Housing Authority carries commercial insurance for all risks of loss, including workman's compensation and employee health and accident insurance The Housing Authority has not had any significant reductions in insurance coverage or any claims not reimbursed NOTE F CONCENTRATION OF RISK The Housing Authority receives most of its funding from HUD These funds and grants are subject to modification by HUD depending on the availability of funding NOTE G SIGNIFICANT ESTIMATES The financial statements include some amounts that are based on management's best estimates and judgments The most significant estimates relate to depreciation and useful lives These estimates may be adjusted as more current information becomes available, and any adjustment could be significant NOTE H COMPENSATED ABSENCES The Housing Authority awards annual leave to regular fulltime and regular parttime employees based on the employee's length of service Annual leave may be accumulated to a maximum of 240 hours In addition to annual leave, each employee earns sick leave at a rate of 10 days per year, and the employee may accrue sick leave up to a maximum of 480 hours At the time of separation from employment, an employee, who is not dismissed for incompetence or inefficiency, will receive 100% of all eamed sick leave Leave accrued but not yet paid as of the end of the year, is shown as a liability on the balance sheet The amount estimated to be paid out in the next year is shown as a current liability; the balance is shown as a longterm liability NOTE I PENSION PLAN The Housing Authority contributes to a defined benefit pension plan, which is the Employees' Retirement System of Alabama (System), an agent multipleemployer retirement system that acts as a common investment and administrative agent for State employees and public organizations At September 30, 2010, the date of the most recent ;;Jctuarial valuation, membership in the system was comprised of the following: Group Retirees and beneficiaries currently receiving benefits Active employees

22 NOTES TO FINANCIAL STATEMENTS CONTINUED NOTE I PENSION PLAN CONTINUED The amount shown on the table below, as the Schedule of Funding Progress is a standardized disclosure measure of the funding of the actuarial accrued liability, adjusted for costofliving benefit increases granted on or after October 1, 1978 The measure is the actuarial present value of credited projected benefits and is intended to help users assess the funding status of the System on a goingconcern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employees' retirement plans This measure is independent of the funding method used to determine contributions to the System The Funding Progress was determined as part of the most recent actuarial valuation which was performed as of September 30, 2010 Significant actuarial assumptions used in determining the Funding Progress include: (a) a rate of return on investments of 8% compounded annually; (b) projected annual salary increases of 461% to 775% per year, including inflation at 45%; and (c) 5year smoothed market assets valuation method The schedule of funding progress at September 30, 2010 is as follows: Actuarial Actuarial Value of Accrued Unfunded Funded Date Assets Liability AAL Ratio 9/30/2008 $801,188 $958,258 $ 157, % 9/30/2009 $857,016 $1,216,843 $ 359, % 9/30/2010 $944,125 $1,411,683 $ 467, % UAALasa Covered %of Covered Payroll Payroll $551, % $571, % $606,212 77c1% Annual pension costs reported on the most recent valuation are: September 30, 2008 September 30, 2009 September 30, $12,670 $14,741 $55,026 The System's funding policy provides for actuarially determined periodic contributions at rates that, for individual employees, increase gradually over time so sufficient assets will be available to pay benefits when due The rate for the Authority's employee group as a whole has tended to remain level as a percentage of annual covered salaries The contribution rate for normal cost is determined using the entry age normal actuarial cost method with proration based on service The unfunded liability contributions are determined by subtracting the present value of prospective employer assets held from the present value of expected benefits to be paid by the System The unfunded obligation is being amortized over future pension contributions, which meets GASB #27 requirements for nonaccrual of the unfunded obligation The contribution to the System for fiscal year 2011 of $84,008 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of September 30, 2010 The total employer contributions of $54,278 represented 10% of current year covered payroll, and the total employee contributions of $29,730 represented 55% of current year covered payroll The employee contributions were a component of normal cost Due to recent market value fluctuations the Actuarial Value of Assets could have changed significantly 20

23 NOTES TO FINANCIAL STATEMENTS CONTINUED NOTE I PENSION PLAN CONTINUED The last valuation was September 30, 2010 The System previously informed the Authority that no significant changes occurred since September 30, 2010 Significant actuarial assumptions used to compute contribution requirements were the same as those used to compute the standardized measure of the pension benefit obligation Any market declines which have occurred after the latest actuarial studies were performed could have a significant effect of future required pension contributions The System issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information for Retirement Systems of Alabama A copy of that report may be obtained by writing to the Retirement Systems of Alabama at PO Box , Montgomery, AL NOTE J COMMITMENTS AND CONTINGENCIES Amounts received or receivable from HUD are subject to audit and adjustment by grantor agencies If expenses are disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the Authority In the opinion of management, any such adjustments would not be significant NOTE K RELATED PARTY TRANSACTONS The Housing Authority manages the Chickasaw Development Corporation All costs associated with Chickasaw Development Corporation are allocated to the Development Corporation The Development Corporation owed the Housing Authority $13,920 at the end of the fiscal year The Development Corporation does not meet the criteria for being a component unit NOTE L PROPERTY AND EQUIPMENT A summary of property and equipment is as follows at June 30, 2011 Low Rent CaQilal Fund Total Land $ 12,216 $ $ 12,216 Building and Improvements 14,483,588 14,483,588 Furniture, Fixtures and Equipment 864, ,618 Construction in Progress 470, ,628 Less Accumulated Depreciaiton (5,938,208) (5,938,208) Total Property and Equipment $ 9,422,214 $ 470,628 $ 9,892,842 21

24 NOTES TO FINANCIAL STATEMENTS CONTINUED NOTE L PROPERTY AND EQUIPMENT CONTINUED July 1, 2010 Transfers & June 30, 2011 Balance Additions Deletions Balance Land $ 12,216 $ $ $ 12,216 Construction in Process 1,830,084 1,192,827 (2, 552, 283) 470,628 Total Assets not being depreciated 1,842,300 1 '192,827 (2,552,283) 482,844 Buildings & Improvements 11,967, ,920 2,373,913 14,483,588 Furniture & Equipment 628,256 57, , ,618 Total Property and Equipment 14,438,311 1,392,739 15,831,050 Less Accumulated Depreciation: Buildings & Improvements (5,112,290) (249, 126) (5,361,416) Furniture & Equipment (533,484) (43,308) (576,792) Net Book Value $ 8,792,537 $ 1,100,305 $ $ 9,892,842 NOTE M LONG TERM DEBT On April 8, 2009 the Authority entered into a Joan agreement with Fannie Mae The Authority's loan proceeds of $1,695,000 is being used to renovate and improve public housing developments owned and operated by the Authority for rental to and occupancy by qualified tenants under the applicable HUD rules and regulations The total amount of the Joan was for $1,695,000 with an interest rate of 655% and a term of twenty years Beginning in September 2009 monthly debt service payments of $12,765 are being made with Capital Fund Program funds As of June 30, 2011, the outstanding balance of this loan was $1,613,058 The note is secured by the improvements and future Capital Fund Program increments that have been reserved for debt service Interest capitalized during the year was $98,247 and interest expensed during the year was $8,777 Future note payments are as follows: Fiscal Year Total Payments Principal $ 48,980 52,286 55,816 59,584 63,606 _388, , ,656 $ 1,613,058 Interest $ 104, ,899 97,369 93,601 89, , ,323 41,096 $ 1,066,458 Balance Due $ 1,564,078 1,511,792 1,455,976 1,396,392 1,332, , ,656 22

25 NOTES TO FINANCIAL STATEMENTS CONTINUED NOTE M LONG TERM DEBT CONTINUED A summary of long term liabilities is as follows at June 30, 2011: Balance Balance Due Within 07/01110 Increases Decreases 06/30/11 One Year Fannie Mae Loan Payable $ 1,658,969 $ $ 45,911 $ 1,613,058 $ 48,980 Accrued Compensated Absences 28,914 20,878 19,724 30,068 4,510 Total Debt $ 1,687,883 $ 20,878 $ 65,635 $ 1,643,126 $ 53,490 NOTE N DEFERRED FINANCING COSTS Costs relating to obtaining the Fannie Mae financing are capitalized and amortized over the term of the related debt using the straight line method When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations Unamortized cost at the end of the fiscal year was $29,959 Accumulated Amortization at the end of the fiscal year was $4,280 NOTE 0 RESTRICTED CASH AND RESTRICTED NET ASSETS Restricted cash is as follows: Restricted for Debt Service Requirements Total Restricted Assets $ $ 78,313 78,313 The Restricted funds for Modernization and Improvements are offset by the related debt There is no offsetting liability for the Restricted for Debt Service Requirements Therefore the $78,313 is shown as Restricted Net Assets in the equity section of the Statement of Net Assets NOTE P SUBSEQUENT EVENTS In preparing financial statements, management evaluated subsequent events through March 12, 2012, the date the financial statements were issued 23

26 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA SCHEDULE OF ASSETS, LIABILITIES AND NET ASSETS BY PROGRAM JUNE 30, 2011 ASSETS Public Capital Recovery Housing Fund Competitive Program Program Grant Total current Assets Cash and Cash Equivalents $ 441,989 $ $ $ 441,989 Accounts Receivable Other 13,920 13,920 Tenants Accounts Receivable 6,544 6,544 (Allowance for Doubtful Accounts) (5,404) (5,404) Accrued Interest Receivable 1,988 1,988 Investments 376, ,601 Prepaid Costs 17,735 17,735 Inventory net of Allowances 20,437 20,437 Total Current Assets 873, ,810 Restricted Assets Restricted Cash 78,313 78,313 Total Restricted Assets 78,313 78,313 Capital Assets Land 12,216 12,216 Buildings 14,483,588 14,483,588 Furniture & Equipment 864, ,618 Construction in Progress 470, ,628 15,360, ,628 15,831,050 (Less): Accumulated Depreciation (5,938,208) (5,938,208) Net Capital Assets 9,422, ,628 9,892,842 Other Assets Deferred Financing Costs Net of Amortization 29,959 29,959 Total Noncurrent Assets 29,959 29,959 Total Assets $ 10,404,296 $ 470,628 $ $10,874,924 24

27 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA SCHEDULE OF ASSETS, LIABILITIES AND NET ASSETS BY PROGRAM JUNE 30, 2011 LIABILITIES AND NET ASSETS Public Capital Recovery Housing Fund Competitive Liabilities Program Program Grant Total Current Liabilities Accounts Payable $ 5,513 $ $ $ 5,513 Accrued Wage/Payroll Taxes 3,816 3,816 Accrued Compensated Absences 4,510 4,510 Accrued Interest Payable 8,805 8,805 Accrued Pilot 20,482 20,482 Resident Security Deposits 50,230 50,230 Deferred Revenues 6,049 6,049 Current Portion of Note Payable 48,980 48,980 Other Current Liabilities 7,975 7,975 Total Current Liabilities 156, ,360 LongTerm Liabilities Note Payable 1,564,078 1,564,078 Accrued Compensated Absences 25,558 25,558 Total LongTerm liabilities 1,589,636 1,589,636 Total Liabilities 1,745,996 1,745,996 Net Assets Investment in Capital Assets net of Related Debt 7,839, ,628 8,309,743 Restricted Net Assets 78,313 78,313 Unrestricted Net Assets 740, ,872 Total Net Assets 8,658, ,628 9,128,928 Total Liabilities and Net Assets $ 10,404,296 $ 470,628 $ $ 10,874,924 25

28 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS BY PROGRAM FOR THE YEAR ENDED JUNE 30, 2011 Public Capital Recovery Housing Fund Competitive Program Program Grant Total 012erating Revenues Dwelling Rent $ 365,716 $ $ $ 365,716 Operating Grants 952, ,262 1,133,612 Other Revenue 21,883 21,883 Total Operating Revenues 1,339, ,262 1,521, erating Ex12enses Administrative 410,427 30, ,269 Tenant Services Utilities 203, ,527 Maintenance and Operations 497, ,245 Protective Services 12,225 12,225 General Expense 81,585 81,585 Depreciation & Amortization Expense 294, ,574 Total Operating Expenses 1,499,743 30,842 1,530,585 Operating Income (Loss) (159,794) 150,420 (9,374) Non012erating Revenues (ExQenses) Interest Expense (8,777) (8,777) Gain on the Sale of Fixed Assets 6,910 6,910 Investment Income 11,379 11,379 Total NonOperating Rev/(Exp) 9,512 9,512 Increase (Decrease) before transfers and Capital Contributions (150,282) 150, Capital Contributions 212,532 7, ,032 Operating Transfers In (Out) 150,420 (150,420) Increase (Decrease) in Net Assets ,532 7, ,170 Net Assets, Beginning of year 7,859,191 1,049,567 8,908,758 Net Asset Transfers 798,971 (791,471) (7,500) Net Assets, End of year $ 8,658,300 $ 470,628 $ $ 9,128,928 26

29 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW, ALABAMA STATEMENT AND CERTIFICATION OF PROGRAM COSTS CAPITAL FUND PROGRAM FOR THE YEAR ENDED JUNE 30, 2011 Public Housing Capital Fund Public Housing Capital Fund Public Housing Capital Fund Public Housing Capital Fund Recovery Program Program Program Competitive Al09P AL09P Al09E Al E Funds Approved Funds Expended Excess of Funds Approved $ $ 464,727 $ 464,727 $ 486,108 $ 486,108 $ 97,540 $ 97,540 $ 7,500 7,500 Funds Advanced Funds Expended Excess of Funds Advanced $ $ 464,727 $ 464,727 $ 486,108 $ 486,108 $ 97,540 $ 97,540 $ 7,500 7,500 1 The distribution of costs as shown on the Actual Modernization Cost Certificates submitted to HUD for approval are in agreement with the Housing Authority's records 2 All modernization costs have been paid and all related liabilities have been discharged through payment 27

30 THE HOUSING AUTHORITY OF THE CITY OF CHICKASAW CHICKASAW, ALABAMA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2011 EXPENDITURES Low Rent Public Housing Expenditures Tptal CFDA Number 14850a Public Housing Capital Fund Program Total CFDA Number (CFP Cluster) Public Housing Capital Fund Program Recovery Competitve Act Funded Total CFDA Number (CFP Cluster) $ 952, ,794 7,500 TOTAL FEDERAL EXPENDITURES $ 1,353,644 Basis of Presentation: The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting The information on this schedule is presented in accordance with the requirements of OMS Circular A133, Audits of States, Local Governments and Non Profit Organizations 28

31 ASSETS ASSETS CASH CASH CASH 11 CASH OTHER OASH ANn HOUSING AUTHORITY OF CHICKASAW, ALABAMA FINANCIAL DATA SCHEDULE JUNE 30, 2011 LOW RENT 14850a 391,759 78, SOl30 OASH FOR PYM1 OF CURRENT DEBT CASH CFP COMPETITIVE GRANT TOTAL 391, ' '302 AND NOTES 121 A/R FHA 122 A/R HUD l2< A/R OT GlWT A/R MISC '920 12< MR TENANTS RENT 6' 5<< 126 FOR A TIN= (5,40<: 126 FOR D A rher 12 NCTES ANI: 1 FRAUD 12B FOR FRAUD 12 ACCRUED '96B 120 ITOTAI NET OF ALLOW,048 13,920 6, 5H, 40< I i,,,, lj: 376' 603 lj: 142 PREP A: 17, ,637 FOR M L46 TO BE CURRENT ASSETS 95: 123, ' ,735 l2oo: " >2, L23 ASSETS <XED ASSETS '16 :AND l2' 216 1S: 14,483,5BB ' & l64 & 601,589 l65 l6' [N 16< {5, FIXED ASSETS, NET OF DEPR 9,422, , ,628 ', >,588 "' ,589 4',628 (5,!8,208) 9, ~~~ NiC 171 PD , IN JOINT 470,628 29,959 9, TOTA: A:SSETS 10,404,296 AND EQUITY 170,628 10, ' BANK 31 A/P < 90 DAYS 5, DAYS 323 ACCRUED TAXES PAYABLE 3, 816 4, "' 325 PAYABLE 8,805 33: PAYABLE 3: 33: PAY ABLE OTHER GOVT 20,48: 34: TENANT 50,230 34: 6,049 34: PORTION OF LT 48,960 34< PORTION OF L' 34, OTHER 7' OTHER , 816 4' 510 BBOs 20, ,~''' 18,960 7'

32 3<7 INTERPROGRAM DUE TO 310 TOTAL CURRENT LIABILITIES HOUSING AUTHORITY OF CHIC~SAW, ALABAMA FINANCIAL DATA SCHEDULE JUNE 30, 2011 LOW RENT a 156,360 NONCURRENT LIABILITIES 351 LONG TERM DEBT NET OF CURRENT CAPITAL 1564, LONG TER/'1 DEBT NET OF CURRENT OPERATING LONG TERM PORTION OF COMPENSATED ABSENCES NONCURRENT LIABILITIES OTHER 25, TOTAL NONCURRENT LIABILITIES 1,589,636 CFP COMPETITIVE GRANT TOTAL 156' 360 1,564,078 25,558 1,589, TOTAL LIABILITIES 1745,996 1, 745, EQUITY INVESTMENT IN GENERAL FIXED ASSETS CONTRIBUTED CAPITAL PROJECT NOTES (HOD) LONG TERM DEBT HUD GUARANTEE NET HUD PHA CONTRIBUTIONS OTHER HOD CONTRIBUTIONS OTHER CONTRIBUTIONS TOTAL CONTRIBUTED CAPITAL INVESTMENT IN CAPITAL ASSETS 7,839,115 RESERVED FUND BALANCE RESERVED FOR OPERATING ACTIVITIES RESERVED FOR CAPITAL ACTIVITIES TOTAL RESERVED BALANCE RESTRICTED NET ASSETS 78,313 UNDESIGNATED FUND BALANCE/R/E UNRESTRICTED NET ASSETS 740,872 TOTAL EQUITY 8,658, , ,628 8,309,743 78, ,872 9,128, '" S TOTAL LIABILITIES AND EQUITY 10,404,296 REVENUE NET TENANT RENTAL REVENUE: 365' 716 TENANT REVENUE OTHER TOTAL TENANT REVENUE 365,716 HUO PHA GRANTS 952,350 CAPITAL GRANTS RECEIVED OTHER GOVT GRANTS SEC 8 INCOME INVESTMENT INCOME UNRESTRICTED 7,567 MORTGAGE INTEREST INCOME FRAUD RECOVERY OTHER REVENUE 21,883 GAIN OR LOSS ON THE SALE OF FIXED ASSETS 6,910 INVESTMENT INCOME RESTRICTED 3, TOTAL REVENUE 1,358, , , , ,794 7,500 7,500 10,874, , ,716 1,133, ,032 7,567 21,883 6,910 3' 812 1,759, EXPENSES ADMINISTRATIVE ADMINISTRATIVE SALARIES 234,410 AUDITING FEES 18,010 MANAGEMENT FEES ADVERTISING AND MARKETING EMPLOYEE BENEFIT CONTRIBUTION 64,351 OFFICE EXPENSES LEGAL EXPENSES 1,200 TRAVEL 19,612 ALLOCATED OVERHEAD OTHER OPERATING ADMINISTRATIVE 72,844 TENANT SERVICES TENANT SERVICES SALARIES RELOCATION COSTS EMPLOYEE BENEFIT CONTRIBUTION TENANT SERVICES OTHER 160 UTILITIES WATER 58,999 ELECTRICITY 45,037 30, ,410 18,010 64,351 1,200 19, ' ,999 45,037 30

33 < < < GAS FUEL LABOR SEWER EMPLOYEE BENEFIT CONTRIBUTION UTILITY OTHER UTILITIES ORDINARY MAINTENANCE ' OPERATION ORDINARY MAINT AND OP LABOR ORDINARY MAINTENANCE AND OP MATERIALS ORDINARY MAINTENANCE AND OP CONTRACT EMPLOYEE BENEFIT CONTRIBUTION PROTECTIVE SERVICES PROTECTIVE SERVICES LABOR PROTECTIVE SERVICES OTHER CONTRACT COSTS PROTECTIVE SERVICES OTHER EMPLOYEE BENEFIT CONTRIBUTION PS GENERAL EXPENSES INSURANCE PREMIUMS OTHER GENERAL EXPENSE COMPENSATED ABSENCES PAYMENTS IN I,IEU OF TAXES BAD DEBT TENANT BAD DEBT MORTGAGES BAD DEBT OTHER INTEREST EXPENSE AMORTIZATION EXPENSE SEVERANCE EXPENSE 969 TOTAL OPERATING EXPENSES HOUSING AUTHORITY OF CHICKASAW, ALABAMA FINANCIAL DATA SCHEDULE JUNE 30, 2011 LOW RENT a 16,161 83, ,741 92,710 19,491 85' ,225 63,639 1,650 16,296 8,777 2,140 1,216,086 CFP ,842 COI<IPETITIVE GRANT TOTAL 16,161 83, ,741 92,710 19,491 85,303 12,225 63,639 1, ,296 8,777 2' 140 1,246, EXCESS OPERATING REVENUE OVER OP EXP EXTRAORDINARY MAINTENANCE CASUALTY LOSSES NON CAPITALIZED HAP DEPRECIATION EXPENSE FRAUD LOSSES CAPITAL OUTLAYS GOVT FUNDS DEBT PRINCIPAL PAYMENT GOVT FUNDS DWELLING UNITS RENT EXPENSE 900 TOTAL EXPENSES 1001 ()p~rati~g Transfers In 1002 Operating Transfers Out 1007 Extraordinary Items 1010 Total Other Financing Sources {Uses) 142, ,434 1,508, , , ,952 30,842 (150,420) (150,420) 7' , ,434 1,539, ,420 (150,420) 1000 EXCESS REVENUE OVER EXPENSES ,532 7, , BEGINNING EQUITY EQUITY TRANSFERS/PRIOR PERIOD ADJUSTMENTS EQUITY TRANSFERS/PRIOR PERIOD ADJUSTMENTS ENDING EQUITY ADD BACK DEPRECIATION GROSS UNITS UNIT MONTHS LEASED Land Purchases Building Purchases Furniture & Equipment Dwelling Purchases Furniture ' E ui ment Admin Purchases Leasehold Improvements Purchases Infrastructure Purchases CFFP Debt Service Payments Replacement Housing Factor Funds 7,859, ,971 8,658,300 3,139 2, 599 1,049,567 (798,971) 7, , ,884 10' 14 8 (7' 500) 8,908,758 9,128,928 3' 139 2' ,884 10'