MILFORD REDEVELOPMENT & HOUSING PARTNERSHIP FINANCIAL STATEMENTS AND REPORTS OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Transcription

1 MILFORD REDEVELOPMENT & HOUSING PARTNERSHIP FINANCIAL STATEMENTS AND REPORTS OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS FOR THE YEAR ENDED MARCH 31, 2016

2 MILFORD REDEVELOPMENT & HOUSING PARTNERSHIP TABLE OF CONTENTS FOR YEAR ENDED MARCH 31, 2016 Page INDEPENDENT AUDITOR S REPORT i MANAGEMENT S DISCUSSION & ANALYSIS 1 BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION 10 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION 11 STATEMENT OF CASH FLOWS 12 NOTES TO THE FINANCIAL STATEMENTS 13 SUPPLEMENTAL INFORMATION SUPPLEMENTAL PENSION SCHEDULES 26 CHFA SUPPLEMENTAL HM FORMS 28 FINANCIAL DATA SCHEDULE 33 COMPLIANCE AND SINGLE AUDIT REPORTING REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE ii iii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 52 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 53 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 54

3 Independent Auditor s Report Board of Commissioners Milford Redevelopment and Housing Partnership Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities of Milford Redevelopment and Housing Partnership, as of and for the year ended March 31, 2016, and the related notes to the financial statements, which collectively comprise the basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

4 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities of Milford Redevelopment and Housing Partnership as of March 31, 2016, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1, Milford Redevelopment and Housing Partnership has implemented Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Our opinions are not modified with respect to this matter. As discussed in Note 7, Milford Redevelopment and Housing Partnership restated beginning net position of its financial statements for the year ended March 31, 2016, due to implementation of new accounting standards. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis and supplemental pension information on pages 1-9 and 26 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Milford Redevelopment and Housing Partnership s basic financial statements. The CHFA Supplemental HM Forms, as required by the Connecticut Housing Finance Authority, Financial Data Schedule, as required by Uniform Financial Reporting Standards, issued by the U.S. Department of Housing and Urban Development, and the Schedule of Expenditures of Federal Awards, as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), are presented for purposes of additional analysis and are not a required part of the basic financial statements. The CHFA Supplemental HM Forms, Financial Data Schedule and the Schedule of Expenditures of Federal Awards are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with

5 auditing standards generally accepted in the United States of America. In our opinion, the CHFA Supplemental HM Forms, Financial Data Schedule and the Schedule of Expenditures of Federal Awards are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 15, 2016 on our consideration of Milford Redevelopment and Housing Partnership s internal control over financial reporting and on 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 not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Milford Redevelopment and Housing Partnership s internal control over financial reporting and compliance. Bristol, Connecticut August 15, 2016 Maletta & Company Certified Public Accountants

6 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) The Milford Redevelopment and Housing Partnership ( MRHP ) management s discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the MRHP s financial activity, (c) identify changes in the MRHP s financial position, and (d) identify individual fund issues or concerns. Since the Management s Discussion and Analysis (MD&A) is designed to focus on the current years activities, resulting changes and currently known facts, please read it in conjunction with MRHP s financial statements. FINANCIAL HIGHLIGHTS The MRHP s net position increased by $83,170 (or.8%) in FY 2016 That amount is represented by an increase of $442,200 of Capital Assets net of related debt, a decrease of $827,175 of Restricted net position, and a increase in Unrestricted net position of $468,145. Components of Restricted net position include a note payable with CHFA dated in FY 2015 in the amount of $3,613,126 to finance an Energy Performance Contract funded by a Qualified Energy Conservation Bond (QECB), plus the Housing Choice Vouchers program surplus restricted for payment of Housing Assistance Payments (HAPs). The Housing Choice Voucher program restricted position for HAP payments was reduced to $0 in fy 2016 from a surplus balance the previous year in the amount of $27,967. Since the Authority engages only in business-type activities, the decrease is all in the category of business-type net position. Net position was $ million and $ million for 2016 and 2015, respectively. Revenues increased by $308 thousand (or 5.8%) during 2016, and were $5.606 million and $5.298 million for 2016 and 2015, respectively. The total expenses of all MRHP s programs decreased by $371,690 or 6.6%. Total expenses were $5.295 million and $5.666 million for 2016 and 2015, respectively

7 USING THIS ANNUAL REPORT The Report includes three major sections, the Management s Discussion and Analysis (MD&A), Basic Financial Statements, and Other Required Supplementary Information : MD&A ~ Management s Discussion and Analysis ~ Basic Financial Statements ~ Authority-wide Financial Statements ~ Notes to Financial Statements Other Required Supplementary Information ~ Required Supplementary Information ~ (other than the MD&A) The primary focus of the MRHP s financial statements is on both MRHP as a whole (Authoritywide), and the major individual funds. Both perspectives (authority-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or Housing Authority to Housing Authority) and enhance MRHP s accountability

8 Authority-Wide Financial Statements The Authority-wide financial statements are designed to be corporate-like in that all business type activities are consolidated into columns, which add to a total for the entire Authority. These Statements include a Statement of Net position, which is similar to a Balance Sheet. The Statement of Net position reports all financial and capital resources for the Authority. The statement is presented in the format where assets, minus liabilities, equals Net position, formerly known as equity or Net assets. Assets and liabilities are presented in order of liquidity, and are classified as Current (convertible into cash within one year), and Non-current. The focus of the Statement of Net position (the Unrestricted Net position ) is designed represent the net available liquid (non-capital) assets, net of liabilities, for the entire Authority. Net position (formerly equity or Net Assets) is reported in three broad categories: Net position, Invested in Capital Assets: This component of Net position consists of all Capital Assets, reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position: This component of Net position consists of restricted assets, when constraints are placed on the asset by creditors (such as debt covenants), grantors, contributors, laws, regulations, etc. Unrestricted net position: Consists of Net position that does not meet the definition of Net position Invested in Capital Assets, Net of Related Debt, or Restricted Net position. The Authority-wide financial statements also include a Statement of Revenues, Expenses and Changes in Net position (similar to an Income Statement). This Statement includes Operating Revenues, such as rental income, Operating Expenses, such as administrative, utilities, and maintenance, and depreciation, and Non-Operating Revenue and Expenses, such as capital grant revenue, investment income and interest expense. The focus of the Statement of Revenues, Expenses and Changes in Net position is the Change in Net position, which is similar to Net Income or Loss. A Statement of Cash Flows is included, which discloses net cash provided by, or used for operating activities, non-capital financing (investing) activities, and from capital-related financing activities

9 Fund Financial Statements The Authority consists of exclusively Enterprise Funds. Enterprise funds utilize the full accrual basis of accounting. The Enterprise method of accounting is similar to accounting utilized by the private sector accounting. Many of the funds maintained by the Authority are required by the Department of Housing and Urban Development. Others are segregated to enhance accountability and control. Business Type Funds The Authority s Funds Federal Conventional Public Housing Under the Conventional Public Housing Program, the Authority rents units that it owns to low-income households. The Conventional Public Housing Program is operated under an Annual Contributions Contract (ACC) with HUD, and HUD provides Operating Subsidy and Capital Grant funding to enable the PHA to provide the housing at a rent that is based upon 30% of household income. The Conventional Public Housing Program also includes the Capital Fund Program, which is the primary funding source for physical and management improvements to the Authority s properties. State Conventional Public Housing This program is run the same as the Federal program but receives no Operating Subsidy from the Department of Community and Economic Development (DECD), now under the administrative oversight of the (State) Connecticut Housing and Finance Administration (CHFA). Housing Choice Voucher Program Under the Housing Choice Voucher Program, the Authority administers contracts with independent landlords that own the property. The Authority subsidizes the family s rent through a Housing Assistance Payment made to the landlord. The program is administered under and Annual Contributions Contract (ACC) with HUD. HUD provides Annual Contributions Funding to enable the Authority to structure a lease that sets the participants rent at 30% of household income. Other Non-major Funds In addition to the major funds above, the Authority also maintains the following non-major funds. Non-major funds are defined as funds that have assets, liabilities, revenues, or expenses of less than 7% of the Authority s total assets, liabilities, revenues or expenses: Federal Development Grants awarded to develop Low Income Public Housing or Conventional Public Housing explained, above. Other State Grants Grants awarded to the H/A for state conventional programs. This is on a project by project basis and as money becomes available. The funding comes from the DECD and is awarded for Resident Assistance (subsidies) and Elder Services Coordinators through the State Grants

10 AUTHORITY-WIDE STATEMENTS The following table reflects the condensed Statement of Net position compared to prior year. The Authority is engaged only in Business-Type Activities. TABLE 1 Statement of Net Position % change FY 2016 FY 2015 Change ASSETS Cash - Unrestricted $ 3,282,730 $ 2,719,465 $ 563, % Cash - Restricted 3,059,951 3,314, ,672 Receivables 62,422 42,932 19, % Investments 393, , % Other current assets 93,204 80,860 12, % Total Current Assets 6,892,214 6,550, , % Total fixed assets net of depreciation 11,667,618 11,233, , % Other non-current assets 0 Non-current assets 11,667,618 11,233, , % Deferred Outflow of Resources 63, ,731 Total Assets and Deferred Outflow of Resources $ 18,621,648 $17,784,534 $ 837, % LIABILITIES Current liabilities $ 1,072,233 $ 561,480 $ 510, % Non-current liabilities 4,166,903 3,923, , % Total Liabilities 5,239,136 4,485, , % Deferred Inflow of Resources EQUITY Net Investment in capital assets 8,062,732 7,620, , % Restricted net position 2,337,144 3,164, , % Unrestricted net position 2,982,636 2,514, , % Total Equity 13,382,512 13,299,342 83, % Total Liabilities & Equity $ 18,621,648 $17,784,534 $ 837, % Major Factors Affecting the Statement of Net position During 2016, current and other assets were increased by $341,338 (5.2%), current liabilities were increased by $753,944 (16.8%), and non-current liabilities increased by $243,191 (6.2%). Elements of Current and Other Assets, including cash and investments, changed up or down as a normal fluctuation of business cycles and activity, and generally as a result of the reduction in Restricted and Unrestricted net position that resulted from operations. Current assets, net of restricted cash, was $3,832,263. The quick ratio (current assets divided by current liabilities), less that component of current assets related to restricted cash decreased from to In both years the ratios are high, indicating a very strong financial position. Fixed assets net of depreciation changed as the result of completed Development and continuing Capital Fund (modernization) activity. Capital expenditures were $1,339,943, while depreciation of buildings and equipment for the year was $909,560, resulting in a net increase of $433,960.

11 Table 2 presents details on the change in Unrestricted net position TABLE 2 CHANGES OF NET POSITION Change in Net Position Unrestricted Net Position Invested in Capital Assets Restricted Net Position Total Net Position Unrestricted Net Assets 3/31/2015 $ 2,514,491 $ 7,620,532 $ 3,164,319 $ 13,299,342 Results from Operations 309, ,752 (Adjustment for Depreciation) (1) 909,560 (909,560) 0 Adjusted Results from Operations 1,216,312 (909,560) 0 309,752 Capital Expenditures (2) (1,339,943) 1,339, Prior Period Adjustments (3) (226,582) (226,582) (Increase) Decrease in Restricted Net Assets - Net of related Debt, and rounding 815,358 11,817 (827,175) 0 Net Change in Net Position 468, ,200 (827,175) 83,170 Unrestricted Net Assets 3/30/2016 $ 2,982,636 $ 8,062,732 $ 2,337,144 $ 13,382,512 (1) Depreciation is treated as an expense and reduces the results of operations but does not have an impact on Unrestricted net position. (2) Capital expenditures represent an outflow of Unrestricted net position, but are not treated as an expense against Results of Operations, and therefore must be deducted. (3) Prior Year Adjustments represent changes that resulted from the implementation of GASB 68, the effect of which is to reflect Net Pension Liability and associated account balances, representing post-retirement pension benefit costs accrued through the audit date. These were not previously identified or reflected in the financial statements. While the results of operations are a significant measure of the Authority s activities, the analysis of the changes in Unrestricted Net position provides a clearer picture of the change in financial well-being. (see next page.) - 6 -

12 TABLE 3 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION The following schedule compares the revenues and expenses for the current and previous fiscal year. The Authority is engaged only in Business-Type Activities. Statement of Revenue and Expenses Revenues Change Actuals Actuals increase percent FY 2016 FY 2015 (decrease) change Tenant revenue $ 2,045,140 $1,925,194 $ 119, % HUD PHA grants 2,970,315 2,877,588 92, % Capital Contributions 398, , , % Other income 189, ,028-36, % Non-Operating Revenues - Interest 2,144 1, Total Revenue $ 5,606,272 $5,297,844 $ 308, % Expenses Administrative, plus benefits $ 956,526 $1,009,695 $ -53, % Tenant services 3,886 10,957-7, % Utilities 405, ,049-63, % Ordinary maintenance, plus benefits 640, , , % General expenses, less benefits 290, ,136 29, % Total operating expenses $ 2,287,360 $2,553,734 $ -257, % Extraordinary maintenance $ 68,382 $ 170,403 $ -102, % Housing assistance payments 2,020,397 2,237, , % Depreciation expense 909, , , % Total Expenses $ 5,294,605 $5,666,295 $ -371, % Excess (Deficiency) of Revenues Over Expenses $ 309,752 $ -368,451 $ 678,

13 MAJOR FACTORS AFFECTING THE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET POSITION Tenant revenue increased by 6.2% in They had increased by 4.4% in Operating grants increased (3.2%) due to an increase in Public Housing operating subsidy funding percentage levels. There was an increase ($28,384) in Section 8 Program dollars spent/earned, or 1.4%. Incidentally, prior years accumulated balance of restricted net position for HAPs, ($27,967) was drawn down to cover those expenses and/or a shortfall of funding in FY Capital Grants increased as multiple major projects progressed or were completed. Total income was up (5.8%). Administrative Costs, including benefits, were lower by 5.3 %, in FY In FY 2015, those costs were lower by14.2%. Utility costs were lower by 13.5%. In FY 15 those costs were lower by 8.8%. Ordinary Maintenance, plus benefits, were lower 20.4%. In this fiscal year the extraordinary expenses line decreased by $102,021, or 59.9%. The Section 8 program payments to Landlords decreased by $217,195 or -9.7%. Capital Assets CAPITAL ASSETS AND DEBT ADMINISTRATION As of year-end, the Authority had $11.7 million invested in a variety of capital assets as reflected in the following schedule, which represents a net increase (addition, deductions and depreciation) of $442,856, or 3.9% from the end of last year. Analysis of Changes in Capital Assets TABLE 4 CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION) FY 2016 FY 2015 Change Capital Assets Land $ 626,947 $ 626,947 $ 0 Buildings 28,366,242 27,641, ,783 Furniture, Equipment & Machinery 461, ,366 35,515 Accumulated Depreciation -19,239,666-18,330, ,561 Construction in Progress 1,452, , ,223 Total Capital Assets $ 11,667,618 $ 11,233,658 $ 433,

14 Debt Outstanding As of year-end, the Authority had $3,604,886 in debt (bonds, notes, etc.) outstanding. Outstanding Debt TABLE 5 OUTSTANDING DEBT, AT YEAR-END FY 2016 FY 2015 Change Capital Projects/Mortgage Revenue $ 3,604,886 $ 3,613,126 $ -8,240 Total Outstanding Debt $ 3,604,886 $ 3,613,126 $ -8,240 Capital Assets - Net of Related Debt $ 8,071,628 $ 7,620,532 $ 451,096 ECONOMIC FACTORS Significant economic factors affecting the Authority are as follows: Federal funding provided by Congress to the Department of Housing and Urban Development 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 FINANCIAL CONTACT The individual to be contacted regarding this report is Richard S. Fenton, CPA or Teresa A. Ewald, CPA, Fee Accountant of the Milford Redevelopment and Housing Partnership at (203) Specific requests may be submitted to the Milford Redevelopment and Housing Partnership at 75 DeMaio Drive, Milford, CT

15 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP STATEMENT OF NET POSITION AS OF MARCH 31, 2016 ASSETS Current Assets Cash and Cash Equivalents - Unrestricted $ 3,282,730 Cash and Cash Equivalents - Restricted 3,059,951 Tenants Accounts Receivable, net of Allowances 17,109 Accounts Receivable - Other, net of Allowances 43,398 Investments 393,907 Inventory 45,365 Prepaid Expenses 47,839 Total Current Assets 6,890,299 Noncurrent Assets Capital Assets, net of A/D Nondepreciable 2,079,161 Depreciable 9,588,457 Total Noncurrent Assets 11,667,618 Total Assets 18,557,917 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows Related to Pensions 63,731 Total Deferred Outflows of Resources 63,731 LIABILITIES Current Liabilities Accounts Payable 79,021 Accrued Wages and Related Payables 15,605 Accrued Compensated Absences 42,075 Accrued Interest 12,476 Accrued Liabilities - Other 621,177 Unearned Revenue 40,155 Tenant Security Deposits 165,348 Current Portion of Long Term Debt 96,376 Total Current Liabilities 1,072,233 Noncurrent Liabilities Long Term Debt 3,508,510 Accrued Compensated Absences 190,207 Net OPEB Obligation 100,079 Net Pension Liability 282,307 Accrued Interest 85,800 Total Noncurrent Liabilities 4,166,903 Total Liabilities 5,239,136 DEFERRED INFLOWS OF RESOURCES Deferred Inflows Related to Pensions - Total Deferred Inflows of Resources - NET POSITION Net Investment in Capital Assets 8,062,732 Restricted for: Housing Assistance Payments - Modernization & Development 2,337,144 Unrestricted 2,982,636 Total Net Position $ 13,382,512 The accompanying notes are an integral part of these financial statements

16 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED MARCH 31, 2016 OPERATING REVENUE Rental Revenue $ 2,045,140 HUD Operating Grants 2,970,315 Other Government Grants 87,023 Fees for Other Services 22,175 Other Revenue 78,738 Total Operating Revenue 5,203,391 OPERATING EXPENSES Administrative & Tenant Services 960,412 Utilities 405,009 Ordinary Maintenance and Operations 640,051 Insurance Premiums 148,927 General 127,017 Housing Assistance Payments 2,020,397 Depreciation 909,560 Total Operating Expenses 5,211,373 Operating Income (Loss) (7,982) NONOPERATING REVENUES (EXPENSES) Nonroutine Maintenance and Replacement (68,382) Interest Expense (14,850) Interest Income 2,144 Total Nonoperating Revenues (Expenses) (81,088) Income (Loss) before Capital Contributions (89,070) Capital Contributions 398,822 Change in Net Position 309,752 Net Position, Beginning of Year - Restated 13,072,760 Net Position, End of Year $ 13,382,512 The accompanying notes are an integral part of these financial statements

17 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2016 CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received from Operations $ 2,086,443 HUD Operating Grants 2,970,315 Payments to Vendors and Suppliers (1,275,279) Housing Assistance Payments (2,020,397) Payments for Employee Wages (630,481) Other Receipts (Payments) 87,551 Net Cash Provided by (Used in) Operating Activities 1,218,152 CASH FLOWS FROM CAPITAL RELATED FINANCING ACTIVITIES: Purchases of Property and Equipment (1,273,125) Principal Payments on Debt (8,240) Interest Payments on Debt (2,374) Capital Grants Received 372,947 Net Cash Provided by (Used in) Capital Related Financing Activities (910,792) CASH FLOWS FROM INVESTING ACTIVITIES: Net Proceeds from (Deposits to) Investments - Interest Income 1,233 Net Cash Provided by (Used in) Investing Activities 1,233 Net Increase (Decrease) in Cash 308,593 Cash at the Beginning of the Year 6,034,088 Cash at the End of the Year $ 6,342,681 RECONCILIATION OF OPERATING INCOME(LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss) $ (7,982) Adjustments to Reconcile Change in Net Cash Provided by Operating Activities: Depreciation Expense 909,560 Nonroutine Maintenance (68,382) Pension Expense 47,933 Employer Pension Contributions (55,939) Change in Operating Assets and Liabilities: Decrease (Increase) in Receivables 8,300 Decrease (Increase) in Inventory (10,996) Decrease (Increase) in Prepaid Expenses (1,348) Increase (Decrease) in Accounts Payable (128,222) Increase (Decrease) in Other Liabilities 525,228 Net Cash Provided by (Used in) Operating Activities $ 1,218,152 NONCASH CAPITAL RELATED FINANCING ACTIVITIES: Interest expense capitalized to Capital Improvements, payment deferred to future periods $ 70,395 The accompanying notes are an integral part of these financial statements

18 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of the Milford Redevelopment and Housing Partnership ( the Authority ) is presented to assist in understanding the Authority s financial statements. The financial statements and notes are representations of the Authority s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. Reporting Entity The Authority was created pursuant to Section 8-40 of the Connecticut General Statutes. The Authority has contracted with the Federal Government, acting through the Department of Housing and Urban Development (HUD), for financial assistance for low-income public housing pursuant to the United States Housing Act of 1937, as amended. The Authority has also contracted the State of Connecticut Department of Community Development (DECD) for financial assistance for elderly rental projects in the form of capital grants pursuant to Section 8-70 of the Connecticut General Statutes. As such, the Authority has entered into annual contribution contracts with the U.S. Department of Housing and Urban Development ( HUD ) to be the administrator of the housing and housing related programs described herein. The Authority is not subject to Federal or State income taxes and is not required to file Federal or State income tax returns. The Authority s combined financial statements include the accounts of all the Authority s operations. The criteria for including organizations as component units within the reporting entity, as set forth in GASB s Codification of Governmental Accounting and Financial Reporting Standards, include whether: the organization is legally separate (can sue and be sued in their own name) the Authority holds the corporate powers of the organization the Authority appoints a voting majority of the organization s board the Authority is able to impose its will on the organization the organization has the potential to impose a financial benefit/burden on the Authority there is fiscal dependency by the organization on the Authority Blended component units are separate legal entities that meet the component unit criteria described above and whose governing body is the same or substantially the same as the Authority s Board of Commissioners or the component unit provides services entirely to the Authority. These component units funds are blended into those of the Authority s by appropriate activity type to compose the primary government presentation. Discretely presented component units are separate legal entities that meet the component unit criteria but do not meet the criteria for blending. Based on the aforementioned criteria, management has determined that the Authority is not a component unit of the city and has no component units. Measurement Focus, Basis of Accounting and Financial Statement Presentation Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements

19 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT D) The Authority s funds are accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred. With this measurement focus, all assets and all liabilities associated with the operation are included on the Statement of Net Position. Operating Revenue includes rental income, operating grants, management services income and all other revenue relating to the provision of safe, decent, and affordable housing that do not result from transactions defined as capital and related financing, non-capital and related financing, or investing activities. Operating expenses include wages, housing assistance payments, utilities, maintenance, depreciation, and all other expenses relating to the provision of safe, decent, and affordable housing that do not result from transactions defined as capital and related financing, non-capital and related financing, or investing activities. In addition, the Authority receives capital grants from HUD to be used for various purposes connected with the planning, modernization, and expansion of housing facilities and equipment. Receipts used for non-capitalizable costs are reported as operating revenue and receipts used for capitalization costs are reported as capital contributions. The Authority has elected to report as a single enterprise proprietary fund and its primary operations comprise a number of housing and grant programs and activities as follows: The Public Housing Program operates under HUD s Annual Contribution Contract and consists of the operations of low rent public housing properties totaling 330 units. The purpose of the program is to provide decent and affordable housing to low-income families at reduced rents. The properties are owned, maintained, and managed by the Authority. Funding of the program is provided by federal annual contributions and operating subsidies and tenant rentals (determined as a percentage of family income, adjusted for family composition). The Housing Choice Voucher Program provides rental housing assistance subsidies in support of 267 housing units. The purpose of the program is to provide decent and affordable housing to low income families and elderly and handicapped persons wherein rental assistance is provided by HUD. The associated units are owned, maintained and managed by private landlords. The Capital Fund Program accounts for the capital and management improvement activities, primarily for the modernization and development of low-rent public housing units. The State and Other Housing Programs consists of the operations of low rent public housing properties totaling 135 units of State Elderly Housing under contract with the State of Connecticut Department of Economic and Community Development (DECD), and 2 units of other housing. The Central Office Cost Center (COCC) consists of the accounting of management fees and other contract services fee revenue and related expenses not attributable to the programs previously defined

20 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT D) The financial statements of the Authority are prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The financial statements include: 1. A Management Discussion and Analysis (MD&A) section providing an analysis of the Authority s overall financial position and results of operations. 2. Financial statements prepared using full accrual accounting for all of the Authority s activities. Change in Accounting Principle For the year ended March 31, 2016, the Authority adopted GASB Statement No. 68 Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date. Implementation required measuring and recognizing net pension liabilities, deferred outflows of resources, deferred inflows of resources, and expenses related to pension benefits provided through its defined benefit pension plan. In addition, Statement No. 68 requires disclosure of information related to pension benefits. The Authority s net position as of April 01, 2015 decreased due to implementation of the Statements. Cash and Cash Equivalents Cash and cash equivalents represent cash in checking accounts, money market funds or short-term investments with original maturities of three months or less. Investments The Authority has adopted HUD s Investment Regulation PIH on investments as its investment policy. The Authority primarily invests in external investment pools, which are subject to regulatory oversight by the State of CT and the Connecticut Housing Finance Authority (CHFA). The Authority follows the provisions of GASB No. 31, Accounting and Financial Reporting for Certain Investments in a Governmental Entity, which requires all publicly traded debt and equity securities to be recorded at fair market value generally determined on the basis of quoted market values. Purchases and sales of securities are reflected in a trade-date basis. Realized gains and losses on sales of securities are based on average costs. Accounts Receivable Management periodically assesses the collectability of its receivables and establishes an allowance for uncollectible accounts for all accounts it deems uncollectible. Currently, there is an allowance established for tenant receivables of $31,951 in its public housing programs. Inventory The Authority s inventory consists of materials and supplies used to maintain its rental stock. The inventory is valued using the weighted average method and recorded at cost

21 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT D) Capital Assets Land, buildings, and equipment are stated at cost and depreciated over their estimated useful lives. The capitalization threshold is $5,000. Donated assets are recorded at estimated market value as of the date of the donation. Construction in progress costs are not depreciated until the corresponding projects are completed. Depreciation has been provided over the following useful lives using the straight-line method of depreciation as follows: Building and Improvements 10 to 40 years Machinery and Equipment 5 to 15 years Capitalized Interest Interest costs are capitalized when incurred on debt where proceeds were used to finance the construction of assets. Operating Leases The Authority leases substantially all of its building, improvements and dwelling equipment to tenants for a period of one year, cancellable upon sufficient notice. Compensated Absences Employees accumulate vacation and sick days for subsequent use or payment upon termination. Compensated absences are accrued when incurred and reported as a liability until paid. Deferred Outflows and Inflows of Resources Deferred outflows of resources represent a consumption of net position that applies to future periods that will be recognized as an expense in future periods. Deferred inflows of resources represent an acquisition of net position of fund balance that applies to future periods and will be recognized as revenue, or a reduction in expense, in future periods. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Connecticut Municipal Employee Retirement System (CMERS) pension plan and additions to/deductions from CMERS s fiduciary net position have been determined on the same basis as they are reported by CMERS. For this purpose, benefit payments, (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses used during the reporting period. Actual results could differ from those estimates. Significant estimates include the economic lives of capital assets

22 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT D) Equity Classifications Equity is classified as net position and displayed in three components in the Statement of Net Position. Net Investment in Capital Assets consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. The Authority has no related debt. Restricted consist of net position with constraints place on the use either by (1) external groups such as creditors, grantors, contributions, or laws or regulations or other governments; or (2) law through constitutional provisions or enabling legislation. The Authority s restricted net position consist of unspent HCV funding provided by HUD and unspent proceeds from the QECB Loan for use in ongoing modernization costs. Unrestricted consist of all other net position that do not meet the definition of restricted or net investment in capital assets. NOTE 2 DEPOSITS AND INVESTMENTS Custodial Credit Risk for Deposits The Authority maintains cash with FDIC depository banks. Additional protection against loss is provided for deposits in excess of FDIC insurance under Chapter 656 of the Connecticut General Statutes. The Statutes require every qualified public depository to maintain segregated collateral equal to at least ten percent of the average of the public deposits. Such additional protection is limited to the segregated collateral available. At times, the Authority s balances may exceed the Federal insurance limits; however, the Authority has not experienced any losses with respect to its bank balance in excess of government provided insurance. In addition, balances are fully collateralized through agreements with the financial institution. Management believes that no significant risk exists with respect to cash balances as of March 31, The breakdown of restricted deposits as of March 31, 2016 is as follows: Restricted Cash - QECB Escrow $ 2,894,603 Restricted Cash - Housing Assistance Payments - Restricted Cash - Security Deposits 165,348 Total Restricted Cash $ 3,059,951 Investments The Authority adheres to HUD s Investment Regulation PIH on investments by investing with CHFA and other state managed investments. This practice is followed to address various risks relating to the Authority s investments. Credit Risk is the risk that an insured or other counterparty to an investment will not fulfill its obligations. Custodial Credit Risk is the risk that the Authority will not be able to recover the value of investment or collateral securities that are in the possession of an outside party if the counterparty to the transaction fails. Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Authority s Connecticut Short Term Investment Funds (STIF) are held in 2a7-like pools and are therefore not subject to interest rate or custodial credit risk. The pool sponsors maintain policies to address the remaining risks and as such require no further risk disclosure. The pooled investments are accounted for on an amortized cost basis which approximates fair value

23 NOTE 3 CAPITAL ASSETS MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 The breakdown of Capital Assets reported as of March 31, 2016 is as follows: Beginning Additions Deductions Ending Nondepreciable Assets: Land $ 626,947 $ - $ - $ 626,947 Construction In Progress 868,991 1,308,006 (724,783) 1,452,214 Depreciable Assets: Building and Improvements 27,641, ,783-28,366,242 Equipment 426,366 35, ,881 29,563,763 2,068,304 (724,783) 30,907,284 Accumulated Depreciation (18,330,105) (909,561) - (19,239,666) Net Book Value $ 11,233,658 $ 11,667,618 Construction in Progress Capital improvements made on the Authority s housing stock are financed primarily by grant funds provided by HUD under the Capital Fund Program (CFP). Funds provided through this program are used to rehabilitate and extend the useful life of the housing stock. CFP grants are awarded annually based on a 5 year comprehensive modernization plan submitted by the Authority. The Authority s construction in progress consists of the costs for modernization of Low Rent units. In addition, the Authority entered into an Energy Performance Contract with CHFA to provide energy efficiencies to its public housing stock totaling $3,540,863, of which $1,366,995 was incurred as of March 31, 2016 and included in Construction in Progress. NOTE 4 NONCURRENT LIABILITIES The breakdown of Noncurrent Liabilities other than Debt reported as of March 31, 2016 is as follows: Beginning Ending Due Within Balance Additions Deductions Balance One Year Compensated Absences $ 233,721 $ 94,163 $ (95,602) $ 232,282 $ 42,075 Deferred Interest 15,405 75,608 (401) 90,612 4,812 Net OPEB Obligation 124,951 25,278 (50,150) 100,079 - Net Pension Liability 208, ,188 (56,955) 282,307 - $ 582,151 $ 326,237 $ (203,108) 705,280 $ 46,887 Less: Current (46,887) Noncurrent Portion $ 658,

24 NOTE 5 LONG TERM DEBT MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 QECB Note Payable The Authority entered into a note payable with CHFA dated January 29, 2015 totaling $3,613,126 to finance an Energy Performance Contract funded by a Qualified Energy Conservation Bond (QECB). Commencing on the date thereof and continuing until January 31, 2016 (Interest Deferral Period), interest will accrue at a per annum rate of 2.51%. No payments of principal or interest are required during the Interest Deferral Period. Thereafter principal and interest at a per annum rate of 2.51% will be due and payable in monthly installments until February 1, 2035 (Maturity). The interest accrued during the Interest Deferral Period is to be paid in equal monthly installments of $401 commencing on March 1, 2016 and continuing until Maturity. Due Within Beginning Additions Deductions Ending One Year QECB Note Payable $ 3,613,126 $ - $ (8,240) $ 3,604,886 $ 96,376 $ 3,613,126 $ - $ (8,240) 3,604,886 $ 96,376 Annual maturities of long-term obligations are as follows: Less: Current Portion Long-Term Portion $ (96,376) 3,508,510 Year Ending Principal Interest Total Payment 2017 $ 96,376 $ 94,003 $ 190, ,246 91, , ,693 88, , ,345 86, , ,944 82, , , ,520 1,166, ,108, ,192 1,375, ,122, ,625 1,236,421 $ 3,604,886 $ 1,181,994 $ 4,786,880 NOTE 6 NET POSITION - RESTATED The Net Position of the Primary Government of the Authority was restated to reflect the net pension liability in accordance with the implementation of GASB 68. The Beginning Net Position as previously reported of $13,299,342 was reduced $213,285 for the beginning net pension liability and $13,297 for contributions made during 2016 subsequent to the pension measurement date for a restated Beginning Net Position of $13,072,760. NOTE 7 OTHER POST EMPLOYMENT BENEFIT (OPEB) PLAN The Authority s employee benefit policy includes an Other Post-Employment Benefit (OPEB) plan. The Authority has created the MRHP OPEB Trust to administer the plan and deposited all historically accrued liabilities with the trust. The trust does not issue a stand-alone financial report, nor is it included in the report of the Authority or any other entity

25 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 7 OTHER POST EMPLOYMENT BENEFIT (OPEB) PLAN (CONT D) Plan Description The plan, a defined benefit OPEB plan, is a single-employer plan whereas qualified retirees and their families continue to receive medical benefits after retirement. The Authority s Board of Commissioners authorized the establishment of the plan and subsequently amended the plan to terminate benefits for any future participants that did not qualify as of the close date. As a closed plan, the qualified plan members are limited to current qualified retires and certain active employees and covered family members that were qualified at the termination date. Employees become eligible upon attainment of age 60 in the employment of the Authority. Retirees will pay 15% of premiums in retirement until attainment for Medicare and 0% thereafter. Funding Policy The contribution requirement of plan members and the Authority are established and may be amended through Authority ordinances. The Authority maintains a pay-as-you-go funding policy, with an additional amount to prefund benefits as determined annually by the Authority. For the 2016 fiscal year, the Authority contributed $50,150 to prefund benefits. Annual OPEB Cost and Net OPEB Obligation The Authority s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the Authority s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Authority s net OPEB obligation to the MRHP OPEB Trust: Calculated Amount Annual Required Contribution (ARC) $ 54,726 Interest on Net OPEB Obligation (NOO) 7,665 Adjustment to Annual Required Contribution (ARC) (16,572) Amortization of Actuarial (Gains) / Losses (19,541) Annual OPEB Cost (Expense) 26,278 Contributions Made to Pay Benefits - Contributions Made to OPEB Trust (51,150) Change in Net OPEB Obligations (NOO) (24,872) Net OPEB Obligation (NOO) - Beginning of Year 124,951 Net OPEB Obligation (NOO) End of Year $ 100,079 The Authority s annual OPEB Cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2015 and the two preceding years were as follows: Percentage of Annual Annual Fiscal Year OPEB OPEB Cost Net OPEB Ended Cost Contributed Obligation 3/31/ , % 139,129 3/31/ , % 124,951 3/31/ , % 100,

26 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 7 OTHER POST EMPLOYMENT BENEFIT (OPEB) PLAN CONT D Funded Status and Funding Progress As of April 1, 2013, the most recent actuarial valuation date, the plan was 72.75% funded. The actuarial value of assets was $547,294, and the actuarial accrued liability was $752,310, resulting in an unfunded actuarial accrued liability of $205,016. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. Additional disclosures concerning an actuarial valuation include: Actuarial valuations are based on estimates that are likely to change over time. Actuarial calculations are long-term in nature, and techniques are used to reduce the shortterm volatility of actuarial accrued liabilities and the actuarial valuation of assets. The annual required contribution for the current year was determined as part of the April 1, 2013, actuarial valuation using the Projected Unit Credit Actuarial Cost Method. The actuarial assumptions included a 4% investment rate of return, projected salary increases of 3% per year, and an annual healthcare cost trend rate of 11% initially, reduced by decrements to an ultimate rate of 5% after 7 years. Inflation and healthcare cost rates include a 2.5% inflation assumption. The unfunded actuarial accrued liability is being amortized over 15 years as a level dollar amortization. The remaining amortization period at March 31, 2016 was 9 years. NOTE 8 RETIREMENT PLAN Plan Description The Authority is a member of the CMERS, a multiple-employer public retirement system established by the State of Connecticut and administered by the State Retirement Commission to provide retirement benefits of participating municipalities. Membership is mandatory for all regular full time employees. The plan is a multiple-employer defined benefit plan. Chapter 113 Part II of the General Statutes of Connecticut, which can be amended by legislative action, establishes CMERS benefits, member contribution rates, and other plan provisions. CMERS is considered to be a part of the State of Connecticut financial reporting entity and is included in the State s financial reports as a pension trust fund. Those reports may be obtained by writing to the State of Connecticut, Office of the State Comptroller, 55 Elm Street, Hartford, CT or by calling Benefits Provided MERS makes provision for the retirement, disability, and death benefits. The retirement benefit is 2% of average final compensation multiplied by the years of service for members not covered by social security. The benefit for members covered by social security is 1.50% of the average final compensation not in excess of the year s breakpoint plus 2% of average final compensation in excess of the year s breakpoint, multiplied by years of service. Employees are eligible to retire age 55 with 5 years of continuous service, or 15 years of active aggregate service, or 25 years of aggregate service. Employees can retire early after 5 years of continuous or 15 years of active aggregate service. The benefit can either be deferred to normal retirement age, or an actuarially reduced allowance may begin at the time of separation. Long term disability benefits are calculated based on compensation and service to the date of the disability with a minimum benefit of 50% of compensation at the time of the disability. Pre-retirement death benefits are available in the form of a lump sum return of contributions with interest or surviving spouse benefit depending on the length of service

27 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 8 RETIREMENT PLAN (CONT D) Contributions The actuarial funding method utilized by the pension plan is the Early Age Normal (EAN) method. Per EAN a normal contribution rate is developed for each active member as a percent of payroll that would be sufficient, if paid from the age at which the member entered CMERS would fully fund the member s benefits when due. These calculations are based on the member s age, years or service, sex, compensation, expected future salary increases, and an assumed future interest earnings rate, which is currently 8%. The contribution requirements of the Authority are established and may be amended by the State Retirement Commission. Employees covered by social security are required by State Statute to contribute 2.25% of compensation up to the social security taxable wage base, plus 5% of compensation in excess of such base. Employees not covered by social security are required to contribute 5% of earnings. The Authority is required by State Statute to contribute 11.38% of earnings. The total contribution is based on 13.63% of gross earnings. Contributions to the pension plan from the Authority were $55,939 for the year ended March 31, Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions As of March 31, 2016, the Authority reported a net pension liability of $282,307. The net pension liability was measured as of June 30, 2015 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, The Authority s proportion of the net pension liability was based on a projection of the Authority s long-term share of contributions to the pension plan relative to the projected contributions, actuarially determined. As of June 30, 2014 and June 30, 2015, the Authority s proportion was 0.20%. For the year ended March 31, 2016 the Authority recognized pension expense of $47,933. As of March 31, 2016, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between Expected and Actual Experience $ - $ - Differences between Projected and Actual Investment Earnings 21,089 - Changes in Proportion and Differences between Employer Contributions and Porportionate Share of Contributions - - Contributions Made after Measurement Date 42,642 - $ 63,731 $ - $42,642 reported as deferred outflows of resources related to pensions resulting from the Authority s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended March 31,

28 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 8 RETIREMENT PLAN (CONT D) Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2016 $ (1,108) 2017 (1,108) 2018 (1,108) 2019 (17,765) Thereafter - Actuarial Assumptions The total pension liability in the June 30, 2014 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25% Salary Increases %, including inflation Investment Rate of Return 8%, net of pension plan investment expense, including inflation Mortality rates were based on the RP-2000 Combined Mortality Table (set forward one year for males and set back one year for females). The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for a five-year period ending June 30, The long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return Large cap U.S. Equities 16% 5.80% Developed non-u.s. equities 14% 6.60% Emerging markets (non-u.s.) 7% 8.30% Core Fixed Income 8% 1.30% Inflation linked bond fund 5% 1.00% Emerging market bond 8% 3.70% High yield bonds 14% 3.90% Real estate 7% 5.10% Private equity 10% 7.60% Alernative investments 8% 4.10% Liquidity Fund 3% 0.40% Total 100%

29 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 8 RETIREMENT PLAN (CONT D) Discount Rate The discount rate used to measure the total pension liability was 8%. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan s fiduciary net position was projected to be available to make all the projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Authority s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following projects the Authority s proportionate share of the net pension liability, as of the actuarial date, calculated using the discount rate of 8%, as well as what the Authority s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (7%) or 1-percentage-point higher (9%) than the current rate: 1% Discount 1% Decrease Rate Increase (7%) (8%) (9%) Authority's Porportionate Share of Net Pension Liability $ 518,342 $ 282,307 $ 105,949 Pension Plan Fiduciary Net Position Detailed information about the pension plan s fiduciary net position is available in the separately issued CMERS financial report. NOTE 9 CAPITAL FUND PROGRAM The Authority is awarded federal capital grants from HUD. The grants are to be expended for modernization, security, and replacement housing related to its federal public housing projects. The following completed grants have been fully expended, disbursed, all work completed and liabilities fully paid as of March 31, 2016: CT 26P Funds Authorized $ 371,865 $ 307,825 Funds Advanced 371, ,825 Less Project Expenditures (371,865) (307,825) Excess(Deficiency) of Advances $ - $

30 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP NOTES TO THE FINANCIAL STATEMENTS (CONT D) FOR THE YEAR ENDED MARCH 31, 2016 NOTE 9 CAPITAL FUND PROGRAM (CONT D) The following grants are open as of March 31, 2016: CT 26P Funds Authorized $ 294,263 $ 346,153 $ 353,955 $ 368,280 Funds Advanced 286, ,933 35,395 - Less Project Expenditures (294,263) (186,814) (35,395) - Excess(Deficiency) of Advances $ (7,604) $ (20,881) $ - $ - NOTE 10 VOUCHER NET POSITION BREAKDOWN The breakdown of Voucher Net Position reported as of March 31, 2016 is as follows: Unrestricted Net Position Restricted Net Position Total Beginning Net Position $ 88,187 $ 27,967 $ 116,154 Revenues Annual Contributions 161,611 1,967,231 2,128,842 Investment Income Fraud Recovery 3,116 3,116 6,232 Portability-In Fees 23,227-23,227 Total Revenues 188,165 1,970,347 2,158,512 Expenses Administrative (150,695) - (150,695) Housing Assistance Payments (22,083) (1,998,314) (2,020,397) Total Expenses (172,778) (1,998,314) (2,171,092) Change in Net Position 15,387 (27,967) (12,580) Ending Net Position $ 103,574 $ - $ 103,574 HUD-Held Reserves $ 344,215 NOTE 11 DATE OF MANAGEMENT S REVIEW Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events which provide evidence about conditions that existed after the balance sheet date require disclosure in the accompanying notes. Management evaluated the activity of the Authority through August 15, 2016 the date which the financial statements were available to be issued, and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements

31 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP OPEB REQUIRED SUPPLEMENTAL INFORMATION FOR THE YEAR ENDED MARCH 31, 2016 The Schedule of Funding Progress as of March 31, 2016 is as follows: Actuarial Value of Accrued Actuarial Funded Valuation Assets Liability Accrued Liability Ratio Date (a) (b) (UAAL)(b-a) (a/b) 4/1/2010 $ - $ 520,561 $ 520, % 4/1/ , , , %

32 MILFORD REDEVELOPMENT AND HOUSING PARTNERSHIP SCHEDULES OF REQUIRED SUPPLEMENTARY PENSION INFORMATION FOR THE YEAR ENDED MARCH 31, 2016 Schedule of the Authority's Proportionate Share of the Net Position Liability Reporting Fiscal Year (Measurement Date) through (2015) (2014) 2007 Authority's Portion of the Net Pension Liability (Asset) % % Information Authority's Proportionate Share of the Net Pension not available Liability (Asset) $ 282,307 $ 208,074 Authority's Covered-Employee Payroll $ 452,777 $ 475,417 Authority's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered- Employee Payroll 62.35% 43.77% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 90.48% 90.48% Schedule of Authority Contributions Statutorily Required Contribution $ 51,526 $ 56,955 Contributions in Relation to the Statutorily Required Contribution $ (51,526) $ (56,955) Contribution Deficiency (Excess) - - Authority's Covered Payroll $ 452,777 $ 475,417 Contributions as a Percentage of Covered-Employee Payroll 11.38% 11.98% 2013 through Statutorily Required Contribution $ 60,648 Information Contributions in Relation to the Statutorily Required not available Contribution $ (60,648) Contribution Deficiency (Excess) - Authority's Covered Payroll $ 506,244 Contributions as a Percentage of Covered-Employee Payroll 11.98%

33 STATEMENT OF OPERATIONS Connecticut Housing Finance Authority Asset Management - Multifamily Housing CHFA Form HM 6-50 (Rev. 12/2014) Project Name: C. Mckeen Village, Demaio Gardens & A. Jagoe Commons CHFA Number: 85101D-85103D, 91135D HUD Number: Fiscal Year-End: March 31, 2016 Beginning Date: April 1, 2015 Mortgagor: Miflord Redevelopment & Housing Partnership Part I- P&L Description of Account HUD Acct. # SHP Acct. # Amount* Rent Revenue- Gross Potential 5120 $ 297,024 Tenant Assistance Payments (HAP Receipts) 5121 $ 20,316 Tenant Assistance Payments (RAP Receipts) $ - Tenant Assistance Payments (ERAP Receipts) $ - Tenant Assistance Payments - Congregate $ - Rent Revenue- Stores & Commercial 5140 $ - Rental Rent Revenue- Garage & Parking $ - Income Flexible Subsidy Revenue 5180 $ Miscellaneous Rent Revenue** & 3300 $ - Excess Rent $ 302,455 Excess Utilities $ - Rent Revenue- Insurance 5192 $ - Special Claims Revenue $ - Retained Excess Income 5194 $ - Total Rent Revenue 100% Occupancy) 5100T $ 619,795 Apartments- Vacancy $ 6,660 Stores & Commercial- Vacancy 5240 $ - Vacancies Rental Concessions 5250 $ Garage & Parking- Vacancy 5270 $ - Miscellaneous** (other vacancy) 5290 $ - Total Vacancies 5200T $ 6,660 Net Rental Revenue Rent Revenue Less Vacancy 5125N $ 613,135 Elderly & Congregate Service Income (attach schedule) 5300 $ 0 Financial Revenue - Project Operations $ 927 Financial Revenue from Investments - Residual Receipts 5430 $ - Revenue Revenue from Investments - Replacement Reserves 5440 $ Revenue from Investments - Miscellaneous ** 5490 $ - Total Financial Revenue 5400T $ 927 Laundry & Vending Revenue $ 6,473 Tenant Charges 5920 $ 7,536 Other Sales & Servie to Tenants (including Cable TV fees) $ - Revenue Interest Reduction Payments 5945 $ Miscellaneous Revenue (Specify) ** 5990 $ 42,009 Total Other Revenue 5900T $ 56,018 Total Revenue 5000T $ 670,080 Conventions & Meetings $ 101 Management Consultants 6204 $ - Advertising & Marketing 6210 $ - Apartment Resale Expenses (Coops) 6235 $ - Other Renting Expenses $ 10,460 Office Salaries $ 39,221 Salaries - RSC $ - Administrative Office Expenses 6311 $ - Expenses Office or Model Apartment Rent 6312 $ /6300 Compensated Absences - Administrative Salaries $ 3,218 Management Fee $ 124,945 Manager or Superintendent Salaries 6330 $ - Administrative Rent Free Unit 6331 $ - Legal Expense (Project) $ 2,985 Audit Expense 6350 $ 2,640 Bookkeeping Fees/Accounting Services $ 15,079 Bad Debts $ 1,272 State Service Charge - Administrative $ - Miscellaneous Administrative Expenses ** 6390 $ 4,083 Total Administrative Expenses 6263T $ 204,

34 Statement of Operations Part I- Cont. Description of Account HUD Acct. # SHP Acct. # Amount* Fuel Oil/ Coal $ - Utilities Electricity $ 29,474 Expenses Water $ 23, Gas $ 2,678 Sew er $ - Cable Television $ - Total Utilities Expense 6400T $ 55,434 Payroll $ 38,098 Compensated Absences - Maintenance Wages $ 3,303 Supplies $ 11,834 Contracts $ 33,779 Operating & Maintenance Rent Free Unit 6521 $ - Operating & Garbage & Trash Removal $ - Maintenance Security Payroll/ Contracts 6530 $ - Expenses Security Rent Free Unit 6531 $ Heating/Cooling Repairs & Maintenance 6546 $ - Snow Removal 6548 $ 3,210 Vehicle & Maintenance Equip. Operation & Repair $ 19,754 Miscellaneous Operating & Maintenance ** $ 14,145 Total Operating & Maintenance Expenses 6500T $ 124,123 Real Estate Tax $ - Payroll Taxes (project share) $ 4,302 Taxes & Property & Liability Insurance $ 42,259 Insurance Fidelity Bond Insurance 6721 $ Workmen's Compensation 6722 $ - Health Insurance & Other Benefits $ 33,559 Misc. Taxes, Licenses, Permits & Insurance ** 6790 $ - Total Taxes & Insurance 6700T $ 80,120 Interest on Mortgage Payable $ - Interest on Capital Improvement Loan 6821 $ - Interest on Other Mortgages 6825 $ - Financial Interest on Notes Payable (Long Term) 6830 $ - Expenses Interest on Notes Payable (Short Term) 6840 $ Mortgage Insurance Premium/ Services Charges 6850 $ - Miscellaneous Financial Expenses ** 6890 $ - Total Financial Expenses 6800T $ 0 Elderly & Congregate Services (attach schedule) 6900 $ 0 Total Cost of Operations before Depreciation 6000T $ 463,681 Profit (Loss) before Depreciation 5060T $ 206,399 Depreciation Expenses 6600 $ 150,302 Amortization Expense 6610 $ - Total Depreciation & Amortization Expense $ 150,302 Operating Profit (Loss) 5060N $ 56,097 Officer's Salaries 7110 $ - Legal Expenses 7120 $ - Entity Federal, State, and Other Income Taxes 7130 $ - Expenses Interest Income 7140 $ Interest on Notes Payable 7141 $ - Interest on Mortgage Payable 7142 $ - Other Expenses 7190 $ - Net Entity Expenses 7100T $ 0 Net Profit (Loss) 3250 $ 56,

35 * All amounts must be rounded to the nearest dollar, $.50 and over, round up, $.49 and below, round dow n. ** If miscellaneous or Other Income and Expense Accounts exceed the Account Groupings by 10% or more, attach a separate schedule describing or explaining the Income or Expense. Statement of Operations Part II- Principal & Reserve 1 Total principal payments required under the mortgage in the audit year (12 monthly payments). This applies to all direct loans and HUD-held and fully insured mortgages. Any HUD approved second mortgages should be included in the figures. 2 Replacement Reserve deposits required by the Regulatory Agreement or Amendments thereto, even if payments may be temporarily suspended or w aived. 3 Replacement or Painting Reserve releases w hich are included as expense items on the Income Statement. $ 0 $ 0 4 Project Improvement Reserve Releases under the Flexible Subsidy Program that are included as expense items on this Income Statement. $ 0 $ 0 Part III- Income & Expense Sub-Accounts Description of Account HUD Acct. # SHP Acct. # Amount* Tenant NSF & Late Charges 5915 $ - Charges Damages & Cleaning Fees 5930 $ 7, Forfeited Tenant Security Deposits 5940 $ - Tenant Charges 5920 $ 7,536 Office Supplies $ - Office Telephone and Answering Service 6360 $ Office Expenses 6311 $ 0 Janitor and Cleaning Payroll 6511 $ - Payroll Grounds Payroll 6535 $ Repairs Payroll 6540 $ 38,098 Payroll 6510 $ 38,098 Janitor and Cleaning Supplies 6516 $ 443 Exterminating Supplies 6522 $ - Supplies Ground Supplies 6536 $ Repairs Material 6541 $ 11,391 Decorating Supplies 6561 $ - Supplies $ 11,834 Janitor and Cleaning Contracts 6517 $ 4,473 Exterminating Contracts 6519 $ 200 Grounds Contracts 6537 $ 14,460 Contracts Repairs Contracts 6542 $ 14, Elevator Maintenance Contract 6545 $ - Sw imming Pool Maintenance Contract 6547 $ - Decorating (Painting) Contract/Payroll 6560 $ - Contracts $ 33,779 Miscellaneous Taxes, Licenses, Permits 6719 $ - Misc. Other Insurance 6729 $ Miscellaneous Taxes, Permits & Insurance 6790 $ 0 *** Ow ner to specify account numbers if not provided

36 COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS, AND RESIDUAL RECEIPTS Connecticut Housing Finance Authority Asset Management - Multifamily Housing CHFA Form HM 6-51 (Rev. 12/2014) Project Name: C. Mckeen Village, Demaio Gardens & A. Jagoe Commons Fiscal Year-End: March 31, 2016 CHFA Number: 85101D-85103D, 91135D Beginning Date April 1, 2015 HUD Number: Mortgagor: Miflord Redevelopment & Housing Partnership Part A - COMPUTE SURPLUS CASH 1. Cash (Accounts 1110, 1120, 1191, 1192) $ 978, Tenant Subsidy vouchers due for period covered by financial statement $ 0 CASH 3. Other (describe) $ 0 (A) Total Cash (Add Lines 1, 2, and 3) $ 978, Accrued mortgage interest payable $ 0 5. Delinquent mortgage principal payments $ 0 6. Delinquent deposits to reserve for replacements $ 0 CURRENT 7. Accounts payable (due within 30 days) $ 6, Loans and notes payable (due within 30 days, if allo we d under CHFA lo an OBLIGATIONS documents) $ 0 9. Deficient Tax Insurance or MIP Escrow Deposits $ Accrued expenses (not escrowed) $ 7, Prepaid Rents (Account 2210) $ 18, Tenant security deposits liability (Account 2191) $ 20, Other (Describe) $ 21,837 (B) Less: Total Current Obligations (Add Lines 4 through 13) $ 75,003 (C) Surplus Cash (Deficiency)(Line (A) minus Line (B)) $ 903,082 Part B - COMPUTE DISTRIBUTIO NS TO OWNERS AND REQUIRED DEPOSIT TO RESIDUAL RECEIPTS 1a. Surplus Cash (From Line (C)) $ 903,082 1b. Less: Additional Interest Due CHFA, if applicable $ 0 1c. Surplus Cash Available for Distribution $ 903,082 2a. Annual Distribution Earned During Fiscal Period Covered by St atement $ 0 LIMITED 2b. Distribution Accrued and Unpaid as of the End of the Fiscal Period $ 0 DIVIDEND 2c. Distributions Paid During Fiscal Period Covered by Statement $ 0 PROJECT S 3. Amount to be Carried on Balance Sheet as Distribution Earned but Unpaid $ 0 (Line 2a plus 2b minus 2c) 4. Amount Available for Distribution During Next Fiscal Period $ 0 5. Deposits Due Residual Receipts $ 0 (Must be deposited with Mortgagee within 60 days after Fiscal Period ends)

37 COMPUTATION OF NET OPERATING INCOME Connecticut Housing Finance Authority Asset Management - Multifamily Housing CHFA Form HM 6-52 (Rev. 12/2014) Project Name: C. Mckeen Village, Demaio Gardens & A. Jagoe Common CHFA Number: 85101D-85103D, 91135D HUD Number: Fiscal Year-End: March 31, 2016 Beginning Date: April 1, 2015 Mortgagor: Miflord Redevelopment & Housing Partnership Part I - COMPUTE NET OPERATING INCOME (Source HM 6-50 "Statement of Operations") Account # A. Profit (Loss) before Depreciation 5060T B. Less: Revenue from Investments - Residual Receipts 5430 C. Less: Revenue from Investments - Replacement Reserves 5440 D. Less: Revenue from Investments - Miscellaneous (Restricted Accounts Only) 5490 E. Plus: Total Financial Expenses 6800T F. Less: Replacement Reserve Deposits Part II #2 G. Net Operating Income (NOI) $ $ $ $ $ $ $ 206, ,399 Part II - IDENTIFY SPECIAL FINANCIAL CONDITIONS FOR ADJUSTMENT A. Replacement Reserves 1) Disbursements from replacement reserve during period covered by the statement $ - a) Plus: Pending requests at year-end for the release of funds from the replacement reserve to cover items either expensed or capitalized during the period covered by the statement $ - b) Less: Total of funds received from replacement reserve during the period covered by the statement that were expensed or capitalized in prior years $ - c) Less: Amount capitalized as increases in fixed assets during the period covered by the statement $ - d) Total disbursements from the replacement reserve included as expenses on HM 6-50 $ - 2) Are there any extraordinary or one-time sources of income and/or expense(s) that are included on the YES NO Statement of Operations? (e.g.: Proceeds from Insurance claim not received in the same period as the loss) X 3) If YES, explain reason(s) and amount(s) below: $ $ $ $ TOTAL Extraordinary or one-time income / expense(s) $ - B. Other Restricted Reserves 1) Have all disbursements from other restricted reserve accounts (Operating Reserve, Residual Receipts, etc.) YES NO N/A been capitalized as Increases on the Schedule of Fixed As sets? X 2) If NO, what is the amount of other restricted reserve account releases that are represented as expenditures on the Statement of Operations? Explain reason(s) and amount(s) below: $ $ - - $ - C. Interest Reduction Payments (HUD Section 236 developments only) YES NO N/A 1) Are Interest Reduction Paym ents (IRP) from HUD Section 236 contracts shown as Income in Account #5945 X and included in the expense line item Interest on Mortgage Payable in Account #6820? 2) If NO, what is the annual amount of the IRP paid to CHFA by HUD on the development's behalf not included as income in Account #5945? $ - Part III - ADJUSTED NET OPERATING INCOME FROM PART II Net Operating Income Plus: Replacement Reserve releases included as expenses in Statement of Operations Less/Plus: Extraordinary or one-time income / expense(s) Plus: Other Restricted Reserve Accounts Plus: Interest Reduction Payments Source Part I - G Part II - A1 Part II - A3 Part II - B2 Part II - C2 $ $ $ $ $ 206, Equals: Adjusted Net Operating Income (NOI) $ 206,

38 Milford Redevelopment and Housing Partnership (CT030) Milford, CT Entity Wide Balance Sheet Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/ Cash - Unrestricted 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted 114 Cash - Tenant Security Deposits 115 Cash - Restricted for Payment of Current Liabilities 100 Total Cash Project Total Housing Choice Vouchers 2 State/Local COCC Subtotal ELIM Total $2,210,737 $104,593 $692,948 $274,452 $3,282,730 $3,282,730 $2,337,144 $2,337,144 $141,147 $24,201 $165,348 $557,459 $557,459 $2,337,144 $165,348 $557,459 $5,246,487 $104,593 $717,149 $274,452 $6,342,681 $6,342, Accounts Receivable - HUD Other Projects 125 Accounts Receivable - Miscellaneous 126 Accounts Receivable - Tenants Allowance for Doubtful Accounts -Tenants 127 Notes, Loans, & Mortgages Receivable - Current 128 Fraud Recovery Allowance for Doubtful Accounts - Fraud 120 Total Receivables, Net of Allowances for Doubtful Accounts $8,554 $8,554 $8,554 $28,486 $34 $2,909 $31,429 $31,429 $47,244 -$30,760 $2,869 $1,816 -$1,191 $546 $49,060 -$31,951 $3,415 $49,060 -$31,951 $3,415 $47,839 $8,588 $1,171 $2,909 $60,507 $60, Investments - Unrestricted $393,907 $393,907 $393, Investments - Restricted 142 Prepaid Expenses and Other Assets $44,374 $765 $2,563 $137 $47,839 $47, Inventories $45,365 $45,365 $45, Allowance for Obsolete Inventories $0 $0 $0 150 Total Current Assets $5,338,700 $113,946 $1,114,790 $322,863 $6,890,299 $6,890, Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Furniture, Equipment & Machinery - Administration 165 Leasehold Improvements 166 Accumulated Depreciation 167 Construction in Progress 160 Total Capital Assets, Net of Accumulated Depreciation $351,300 $22,705,994 $275,647 $5,660,248 $626,947 $28,366,242 $626,947 $28,366,242 $332,314 $41,792 $22,023 $65,752 $461,881 $461,881 -$15,481,023 $1,442,214 -$41,792 -$3,663,733 $10,000 -$53,118 -$19,239,666 $1,452,214 -$19,239,666 $1,452,214 $9,350,799 $0 $2,304,185 $12,634 $11,667,618 $11,667, Total Non-Current Assets $9,350,799 $0 $2,304,185 $12,634 $11,667,618 $11,667, Deferred Outflow of Resources $27,978 $7,074 $28,679 $63,731 $63,

39 Milford Redevelopment and Housing Partnership (CT030) Milford, CT Entity Wide Balance Sheet Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 Project Total Housing Choice Vouchers 2 State/Local COCC Subtotal ELIM Total 290 Total Assets and Deferred Outflow of Resources $14,717,477 $113,946 $3,426,049 $364,176 $18,621,648 $18,621, Bank Overdraft 312 Accounts Payable <= 90 Days $61,444 $4,675 $12,902 $79,021 $79, Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable $6,360 $1,460 $7,785 $15,605 $15, Accrued Compensated Absences - Current Portion 325 Accrued Interest Payable 341 Tenant Security Deposits 342 Unearned Revenue 343 Current Portion of Long-term Debt - Capital Projects/Mortgage Revenue 345 Other Current Liabilities $29,688 $12,476 $141,147 $21,291 $96,376 $36,719 $6,194 $24,201 $18,864 $6,193 $42,075 $12,476 $165,348 $40,155 $96,376 $36,719 $42,075 $12,476 $165,348 $40,155 $96,376 $36, Accrued Liabilities - Other $566,620 $10,372 $7,466 $584,458 $584, Loan Liability - Current 310 Total Current Liabilities $972,121 $10,372 $55,394 $34,346 $1,072,233 $1,072, Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current 357 Accrued Pension and OPEB Liabilities 350 Total Non-Current Liabilities $3,508,510 $85,800 $3,508,510 $85,800 $3,508,510 $85,800 $190,207 $190,207 $190,207 $175,671 $35,906 $170,809 $382,386 $382,386 $3,769,981 $0 $35,906 $361,016 $4,166,903 $4,166, Total Liabilities $4,742,102 $10,372 $91,300 $395,362 $5,239,136 $5,239, Deferred Inflow of Resources $0 $0 $0 $0 $ Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 513 Total Equity - Net Assets / Position $5,745,913 $2,304,185 $12,634 $8,062,732 $8,062,732 $2,337,144 $0 $2,337,144 $2,337,144 $1,892,318 $103,574 $1,030,564 -$43,820 $2,982,636 $2,982,636 $9,975,375 $103,574 $3,334,749 -$31,186 $13,382,512 $13,382, Total Liabilities, Deferred Inflows of Resources and Equity - Net $14,717,477 $113,946 $3,426,049 $364,176 $18,621,648 $18,621,

40 Milford Redevelopment and Housing Partnership (CT030) Milford, CT Entity Wide Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/ Net Tenant Rental Revenue Tenant Revenue - Other Total Tenant Revenue Project Total $1,382,387 $13, Housing Choice Vouchers 2 State/Local $644,335 $4,642 COCC Subtotal $2,026,722 $18,418 ELIM Total $2,026,722 $18,418 $1,396,163 $0 $648,977 $0 $2,045,140 $0 $2,045, HUD PHA Operating Grants Capital Grants Management Fee Asset Management Fee Book Keeping Fee Front Line Service Fee Other Fees Total Fee Revenue $841,473 $398,822 $2,128,842 $2,970,315 $398,822 $2,970,315 $398,822 $471,228 $471,228 -$471,228 $0 $39,600 $39,600 -$39,600 $0 $57,400 $57,400 -$57,400 $0 $568,228 $568,228 -$568,228 $ Other Government Grants Investment Income - Unrestricted Mortgage Interest Income Proceeds from Disposition of Assets Held for Sale Cost of Sale of Assets Fraud Recovery Other Revenue Gain or Loss on Sale of Capital Assets Investment Income - Restricted Total Revenue $45,014 $42,009 $87,023 $87,023 $242 $211 $1,131 $560 $2,144 $2,144 $6,232 $6,232 $6,232 $54,899 $23,227 $13,125 $3,430 $94,681 $94,681 $2,736,613 $2,158,512 $705,242 $572,218 $6,172,585 -$568,228 $5,604, Administrative Salaries Auditing Fees Management Fee Book-keeping Fee Advertising and Marketing Employee Benefit contributions - Administrative Office Expenses Legal Expense Travel Allocated Overhead Other Total Operating - Administrative $108,589 $39,874 $199,734 $348,197 $348,197 $5,390 $1,870 $2,640 $1,100 $11,000 $11,000 $338,934 $5,458 $126,836 $471,228 -$471,228 $0 $28,900 $16,425 $12,075 $57,400 -$57,400 $0 $82,444 $20,316 $119,287 $222,047 $222,047 $1,448 $18 $11,588 $13,054 $13,054 $40,280 $5,385 $32,846 $78,511 $78,511 $281 $102 $6,897 $7,280 $7,280 $45,156 $119,200 $18,010 $94,071 $276,437 $276,437 $651,422 $142,953 $225,256 $465,523 $1,485,154 -$528,628 $956,

41 Milford Redevelopment and Housing Partnership (CT030) Milford, CT Entity Wide Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 Project Total Housing Choice Vouchers 2 State/Local COCC Subtotal ELIM Total Asset Management Fee Tenant Services - Salaries Relocation Costs Employee Benefit Contributions - Tenant Services Tenant Services - Other Total Tenant Services $39,600 $39,600 -$39,600 $0 $486 $3,400 $3,886 $3,886 $486 $0 $0 $3,400 $3,886 $0 $3, Water Electricity Gas Fuel Labor Sewer Employee Benefit Contributions - Utilities Other Utilities Expense Total Utilities $66,838 $191,544 $84,210 $5,670 $23,998 $29,474 $2,678 $597 $90,836 $221,018 $86,888 $597 $5,670 $90,836 $221,018 $86,888 $597 $5,670 $348,262 $0 $56,747 $0 $405,009 $0 $405, Ordinary Maintenance and Operations - Labor Ordinary Maintenance and Operations - Materials and Other Ordinary Maintenance and Operations Contracts Employee Benefit Contributions - Ordinary Maintenance Total Maintenance Liability Insurance Workmen's Compensation All Other Insurance Total insurance Premiums $149,185 $40,299 $189,484 $189,484 $91,909 $14,080 $438 $106,427 $106,427 $191,312 $67,396 $55,714 $18,715 $11,003 $258,029 $86,111 $258,029 $86,111 $499,802 $0 $128,808 $11,441 $640,051 $0 $640,051 $94,431 $2,256 $45,307 $6,933 $148,927 $148,927 $94,431 $2,256 $45,307 $6,933 $148,927 $0 $148, Other General Expenses $5,486 $5,486 $5, Compensated Absences Payments in Lieu of Taxes $30,724 $6,711 $56,728 $94,163 $94, Bad debt - Tenant Rents $26,096 $1,272 $27,368 $27, Bad debt - Mortgages Bad debt - Other Severance Expense Total Other General Expenses $56,820 $5,486 $7,983 $56,728 $127,017 $0 $127,

42 Milford Redevelopment and Housing Partnership (CT030) Milford, CT Entity Wide Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 Project Total Housing Choice Vouchers 2 State/Local COCC Subtotal ELIM Total Interest on Notes Payable (Short and Long Term) $14,850 $14,850 $14, Total Interest Expense and Amortization Cost $14,850 $0 $0 $0 $14,850 $0 $14, Total Operating Expenses Excess of Operating Revenue over Operating Expenses Extraordinary Maintenance Housing Assistance Payments HAP Portability-In Depreciation Expense Fraud Losses Total Expenses $1,705,673 $150,695 $464,101 $544,025 $2,864,494 -$568,228 $2,296,266 $1,030,940 $2,007,817 $241,141 $28,193 $3,308,091 $0 $3,308,091 $49,189 $14,155 $5,038 $68,382 $68,382 $1,998,314 $1,998,314 $1,998,314 $22,083 $22,083 $22,083 $749,711 $152,302 $7,547 $909,560 $909,560 $2,504,573 $2,171,092 $630,558 $556,610 $5,862,833 -$568,228 $5,294, Operating Transfer In Operating transfer Out Inter Project Excess Cash Transfer In Inter Project Excess Cash Transfer Out Transfers between Program and Project - In Total Other financing Sources (Uses) Excess(Deficiency) of Total Revenue Over(Under) Total Expenses $11,815 -$11,815 $11,815 -$11,815 $11,815 -$11,815 $0 $0 $0 $0 $0 $0 $0 $232,040 -$12,580 $74,684 $15,608 $309,752 $0 $309, Required Annual Debt Principal Payments $8,240 $0 $0 $0 $8,240 $8, Beginning Equity $9,842,803 $116,154 $3,285,217 $55,168 $13,299,342 $13,299, Prior Period Adjustments, Equity Transfers and Correction of Errors -$99,468 -$25,152 -$101,962 -$226,582 -$226, Administrative Fee Equity $103,574 $103,574 $103, Housing Assistance Payments Equity Unit Months Available Number of Unit Months Leased Excess Cash Land Purchases Building Purchases Furniture & Equipment - Dwelling Purchases Furniture & Equipment - Administrative Purchases Leasehold Improvements Purchases Infrastructure Purchases CFFP Debt Service Payments Replacement Housing Factor Funds $0 $0 $ $1,846, $1,846, $1,846,186 $0 $0 $0 $0 $1,290,824 $0 $1,290,824 $1,290,824 $0 $0 $0 $0 $35,515 $0 $35,515 $35,515 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0-37 -

43 Milford Redevelopment and Housing Partnership Milford, CT Project Balance Sheet Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT CT CT Cash - Unrestricted 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted 114 Cash - Tenant Security Deposits 115 Cash - Restricted for Payment of Current Liabilities 100 Total Cash $204,807 $273,614 $495,508 $538,337 $18,551 $18,789 $21,674 $40,017 $223,358 $292,403 $517,182 $578, Accounts Receivable - HUD Other Projects 125 Accounts Receivable - Miscellaneous 126 Accounts Receivable - Tenants Allowance for Doubtful Accounts -Tenants Allowance for Doubtful Accounts - Other 128 Fraud Recovery Allowance for Doubtful Accounts - Fraud 120 Total Receivables, Net of Allowances for Doubtful Accounts $24,129 $21,655 $4,743 $1,490 $6,333 -$16,245 -$3,106 $0 -$2,444 $7,927 $0 $1,989 $0 $25,619 $3, Investments - Unrestricted 132 Investments - Restricted 142 Prepaid Expenses and Other Assets 143 Inventories Allowance for Obsolete Inventories 150 Total Current Assets $11,100 $8,306 $2,837 $6,543 $242,385 $302,698 $545,638 $588, Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Furniture, Equipment & Machinery - Administration 165 Leasehold Improvements 166 Accumulated Depreciation 167 Construction in Progress 160 Total Capital Assets, Net of Accumulated Depreciation $26,000 $50,000 $88,000 $96,300 $3,132,457 $2,518,640 $3,081,132 $4,822,997 $179,948 $14,612 $45,568 $30,041 -$2,556,097 -$2,021,283 -$2,289,570 -$3,606,287 $782,308 $37,307 $599,276 $37,905 $963,035 $1,343, Total Non-Current Assets $782,308 $599,276 $963,035 $1,343, Deferred Outflow of Resources $4,334 $4,461 $3,059 $8, Total Assets and Deferred Outflow of Resources $1,029,027 $906,435 $1,511,732 $1,940,

44 Milford Redevelopment and Housing Partnership Milford, CT Project Balance Sheet Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT OTHER PROJ Total 111 Cash - Unrestricted 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted 114 Cash - Tenant Security Deposits 115 Cash - Restricted for Payment of Current Liabilities 100 Total Cash $575,232 $112,004 $32,726 $9,390 $607,958 $121,394 $11,235 $2,210,737 $2,337,144 $2,337,144 $141,147 $557,459 $557,459 $2,905,838 $5,246, Accounts Receivable - HUD Other Projects 125 Accounts Receivable - Miscellaneous 126 Accounts Receivable - Tenants Allowance for Doubtful Accounts -Tenants Allowance for Doubtful Accounts - Other 128 Fraud Recovery Allowance for Doubtful Accounts - Fraud 120 Total Receivables, Net of Allowances for Doubtful Accounts $4,357 $1,416 $11,607 -$58 -$8,907 $0 $5,715 $2,700 $28,486 $47,244 -$30,760 $0 $0 $47, Investments - Unrestricted 132 Investments - Restricted 142 Prepaid Expenses and Other Assets 143 Inventories Allowance for Obsolete Inventories 150 Total Current Assets $4,541 $11,047 $618,214 $135,141 $44,374 $2,905,838 $5,338, Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Furniture, Equipment & Machinery - Administration 165 Leasehold Improvements 166 Accumulated Depreciation 167 Construction in Progress 160 Total Capital Assets, Net of Accumulated Depreciation $91,000 $5,420,886 $3,729,882 $62,145 -$4,081,659 -$926,127 $7 $1,492,379 $2,803,755 $351,300 $22,705,994 $332,314 -$15,481,023 $1,366,995 $1,442,214 $1,366,995 $9,350, Total Non-Current Assets $1,492,379 $2,803,755 $1,366,995 $9,350, Deferred Outflow of Resources $5,098 $2,550 $27, Total Assets and Deferred Outflow of Resources $2,115,691 $2,941,446 $4,272,833 $14,717,

45 Milford Redevelopment and Housing Partnership Milford, CT Project Balance Sheet Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT CT CT Bank Overdraft 312 Accounts Payable <= 90 Days 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable 322 Accrued Compensated Absences - Current Portion 325 Accrued Interest Payable 341 Tenant Security Deposits 342 Unearned Revenue 343 Current Portion of Long-term Debt - Capital 345 Other Current Liabilities 346 Accrued Liabilities - Other 348 Loan Liability - Current 310 Total Current Liabilities $2,552 $9,093 $28,523 $6,933 $1,063 $1,064 $600 $1,849 $4,397 $5,351 $2,594 $9,010 $18,551 $18,789 $21,674 $40,017 $1,942 $2,025 $2,005 $6,068 $28,505 $4,761 $41,083 $55,396 $63, Long-term Debt, Net of Current - Capital Projects/Mortgage 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current 357 Accrued Pension and OPEB Liabilities 350 Total Non-Current Liabilities $28,549 $27,550 $19,572 $48,361 $28,549 $27,550 $19,572 $48, Total Liabilities $57,054 $68,633 $74,968 $112, Deferred Inflow of Resources $0 $0 $0 $ Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 513 Total Equity - Net Assets / Position 600 Total Liabilities, Deferred Inflows of Resources and Equity - $782,308 $599,276 $963,035 $1,343,051 $189,665 $238,526 $473,729 $485,024 $971,973 $837,802 $1,436,764 $1,828,075 $1,029,027 $906,435 $1,511,732 $1,940,

46 Milford Redevelopment and Housing Partnership Milford, CT Project Balance Sheet Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT OTHER PROJ Total 311 Bank Overdraft 312 Accounts Payable <= 90 Days 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable 322 Accrued Compensated Absences - Current Portion 325 Accrued Interest Payable 341 Tenant Security Deposits 342 Unearned Revenue 343 Current Portion of Long-term Debt - Capital 345 Other Current Liabilities 346 Accrued Liabilities - Other 348 Loan Liability - Current 310 Total Current Liabilities $11,762 $2,524 $1,187 $597 $5,499 $2,837 $32,726 $9,390 $7,499 $1,752 $36,719 $4,400 $95,392 $21,500 $57 $61,444 $6,360 $29,688 $12,476 $12,476 $141,147 $21,291 $96,376 $96,376 $36,719 $557,459 $566,620 $666,368 $972, Long-term Debt, Net of Current - Capital Projects/Mortgage 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current 357 Accrued Pension and OPEB Liabilities 350 Total Non-Current Liabilities $34,446 $17,193 $34,446 $17,193 $3,508,510 $3,508,510 $85,800 $85,800 $175,671 $3,594,310 $3,769, Total Liabilities $129,838 $38,693 $4,260,678 $4,742, Deferred Inflow of Resources $0 $0 $ Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 513 Total Equity - Net Assets / Position 600 Total Liabilities, Deferred Inflows of Resources and Equity - $1,492,379 $2,803,755 $493,474 $98,998 $1,985,853 $2,902,753 $2,115,691 $2,941,446 -$2,237,891 $5,745,913 $2,337,144 $2,337,144 -$87,098 $1,892,318 $12,155 $9,975,375 $4,272,833 $14,717,

47 Milford Redevelopment and Housing Partnership Milford, CT Project Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT CT CT Net Tenant Rental Revenue Tenant Revenue - Other Total Tenant Revenue $192,083 $171,690 $209,266 $372,235 $7,733 $2,149 $352 $2,279 $199,816 $173,839 $209,618 $374, HUD PHA Operating Grants Capital Grants Management Fee Asset Management Fee Book Keeping Fee Front Line Service Fee Other Fees Total Fee Revenue $214,060 $129,819 $66,402 $321,886 $37, Other Government Grants Investment Income - Unrestricted Mortgage Interest Income Proceeds from Disposition of Assets Held for Sale Cost of Sale of Assets Fraud Recovery Other Revenue Gain or Loss on Sale of Capital Assets Investment Income - Restricted Total Revenue $45,014 $242 $6,005 $21,136 $5,281 $15,329 $420,123 $369,808 $318,827 $711, Administrative Salaries Auditing Fees Management Fee Book-keeping Fee Advertising and Marketing Employee Benefit contributions - Administrative Office Expenses Legal Expense Travel Allocated Overhead Other Total Operating - Administrative $20,067 $16,297 $12,781 $30,022 $770 $990 $770 $1,210 $75,337 $45,771 $40,099 $101,783 $3,803 $4,358 $3,818 $9,690 $14,896 $12,564 $9,180 $22,796 $333 $161 $171 $359 $10,464 $8,339 $525 $9,150 $46 $47 $33 $77 $9,853 $5,557 $8,035 $10,743 $135,569 $94,084 $75,412 $185,

48 Milford Redevelopment and Housing Partnership Milford, CT Project Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT OTHER PROJ Total Net Tenant Rental Revenue Tenant Revenue - Other Total Tenant Revenue $343,641 $93,472 $869 $394 $344,510 $93,866 $1,382,387 $13,776 $0 $1,396, HUD PHA Operating Grants Capital Grants Management Fee Asset Management Fee Book Keeping Fee Front Line Service Fee Other Fees Total Fee Revenue $45,649 $63,657 $361,296 $841,473 $398, Other Government Grants Investment Income - Unrestricted Mortgage Interest Income Proceeds from Disposition of Assets Held for Sale Cost of Sale of Assets Fraud Recovery Other Revenue Gain or Loss on Sale of Capital Assets Investment Income - Restricted Total Revenue $6,662 $369 $758,117 $157,892 $45,014 $242 $117 $54,899 $117 $2,736, Administrative Salaries Auditing Fees Management Fee Book-keeping Fee Advertising and Marketing Employee Benefit contributions - Administrative Office Expenses Legal Expense Travel Allocated Overhead Other Total Operating - Administrative $20,247 $9,175 $1,100 $550 $59,479 $16,465 $5,663 $1,568 $15,670 $7,338 $281 $143 $536 $734 $53 $25 $8,234 $2,734 $111,263 $38,732 $108,589 $5,390 $338,934 $28,900 $82,444 $1,448 $10,532 $40,280 $281 $45,156 $10,532 $651,

49 Milford Redevelopment and Housing Partnership Milford, CT Project Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT CT CT Asset Management Fee Tenant Services - Salaries Relocation Costs Employee Benefit Contributions - Tenant Services Tenant Services - Other Total Tenant Services $5,280 $6,000 $5,160 $13,200 $486 $0 $0 $486 $ Water Electricity Gas Fuel Labor Sewer Employee Benefit Contributions - Utilities Other Utilities Expense Total Utilities $14,942 $9,885 $9,951 $12,707 $20,243 $10,894 $15,397 $115,547 $26,458 $23,565 $13,338 $5,606 $61,643 $44,344 $38,686 $133, Ordinary Maintenance and Operations - Labor Ordinary Maintenance and Operations - Materials and Ordinary Maintenance and Operations Contracts Employee Benefit Contributions - Ordinary Maintenance Total Maintenance $17,800 $26,068 $15,374 $47,759 $7,450 $19,062 $7,090 $22,144 $25,666 $32,628 $28,756 $35,124 $8,154 $11,662 $7,170 $21,288 $59,070 $89,420 $58,390 $126, Property Insurance Liability Insurance Workmen's Compensation All Other Insurance Total insurance Premiums $22,196 $17,352 $7,449 $17,606 $22,196 $17,352 $7,449 $17, Other General Expenses Compensated Absences Payments in Lieu of Taxes Bad debt - Tenant Rents Bad debt - Mortgages Severance Expense Total Other General Expenses $5,434 $5,232 $1,726 $10,383 $11,374 $3,383 $382 $2,018 $16,808 $8,615 $2,108 $12,401

50 Milford Redevelopment and Housing Partnership Milford, CT Project Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT OTHER PROJ Total Asset Management Fee Tenant Services - Salaries Relocation Costs Employee Benefit Contributions - Tenant Services Tenant Services - Other Total Tenant Services $7,800 $2,160 $0 $0 $39,600 $486 $0 $ Water Electricity Gas Fuel Labor Sewer Employee Benefit Contributions - Utilities Other Utilities Expense Total Utilities $9,134 $10,219 $28,389 $1,074 $13,422 $1,821 $5,670 $50,945 $18,784 $66,838 $191,544 $84,210 $5,670 $0 $348, Ordinary Maintenance and Operations - Labor Ordinary Maintenance and Operations - Materials and Ordinary Maintenance and Operations Contracts Employee Benefit Contributions - Ordinary Maintenance Total Maintenance $27,509 $14,675 $20,569 $15,559 $35,004 $32,886 $12,555 $6,567 $95,637 $69,687 $149,185 $35 $91,909 $1,248 $191,312 $67,396 $1,283 $499, Property Insurance Liability Insurance Workmen's Compensation All Other Insurance Total insurance Premiums $11,903 $17,925 $11,903 $17,925 $94,431 $0 $94, Other General Expenses Compensated Absences Payments in Lieu of Taxes Bad debt - Tenant Rents $5,278 $2,671 $0 $8,939 $30,724 $26, Bad debt - Mortgages Severance Expense Total Other General Expenses $5,278 $11,610 $0 $56,

51 Milford Redevelopment and Housing Partnership Milford, CT Project Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT CT CT Total Operating Expenses $302,496 $261,517 $188,557 $496, Excess of Operating Revenue over Operating Expenses $117,627 $108,291 $130,270 $215, Extraordinary Maintenance Casualty Losses - Non-capitalized Housing Assistance Payments HAP Portability-In Depreciation Expense Total Expenses $6,257 $19,801 $4,772 $3,253 $105,023 $77,068 $123,388 $158,879 $413,776 $358,386 $316,717 $658, Operating Transfer In Operating transfer Out Inter Project Excess Cash Transfer In Inter Project Excess Cash Transfer Out Total Other financing Sources (Uses) $0 $0 $0 $ Excess (Deficiency) of Total Revenue Over (Under) Total $6,347 $11,422 $2,110 $52, Required Annual Debt Principal Payments Beginning Equity Prior Period Adjustments, Equity Transfers and Correction $0 $0 $0 $0 $981,032 $842,241 $1,445,530 $1,805,310 -$15,406 -$15,861 -$10,876 -$30, Housing Assistance Payments Equity Unit Months Available Number of Unit Months Leased Excess Cash Land Purchases Building Purchases Furniture & Equipment - Dwelling Purchases Furniture & Equipment - Administrative Purchases Leasehold Improvements Purchases Infrastructure Purchases CFFP Debt Service Payments Replacement Housing Factor Funds $180,678 $231,516 $471,692 $476,975 $0 $0 $0 $0 $0 $28,610 $37,904 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0-46 -

52 Milford Redevelopment and Housing Partnership Milford, CT Project Revenue and Expense Summary Submission Type: Audited/A-133 Fiscal Year End: 03/31/2016 CT CT OTHER PROJ Total Total Operating Expenses $285,179 $159,412 $11,815 $1,705, Excess of Operating Revenue over Operating Expenses $472,938 -$1,520 -$11,698 $1,030, Extraordinary Maintenance Casualty Losses - Non-capitalized Housing Assistance Payments HAP Portability-In Depreciation Expense Total Expenses $14,162 $944 $189,770 $95,583 $489,111 $255,939 $49,189 $749,711 $11,815 $2,504, Operating Transfer In Operating transfer Out Inter Project Excess Cash Transfer In Inter Project Excess Cash Transfer Out Total Other financing Sources (Uses) -$11,815 -$11,815 $0 $11,815 $11,815 -$11,815 $11,815 $ Excess (Deficiency) of Total Revenue Over (Under) Total $257,191 -$98,047 $117 $232, Required Annual Debt Principal Payments Beginning Equity Prior Period Adjustments, Equity Transfers and Correction $0 $0 $1,746,789 $3,009,863 -$18,127 -$9,063 $8,240 $8,240 $12,038 $9,842,803 -$99, Housing Assistance Payments Equity Unit Months Available Number of Unit Months Leased Excess Cash Land Purchases Building Purchases Furniture & Equipment - Dwelling Purchases Furniture & Equipment - Administrative Purchases Leasehold Improvements Purchases Infrastructure Purchases CFFP Debt Service Payments Replacement Housing Factor Funds $494,517 $89,466 $0 $0 $400,290 $0 $0 $0 $35,515 $0 $0 $0 $0 $0 $0 $0 $0 $ $98,658 $1,846,186 $0 $0 $824,020 $1,290,824 $0 $0 $0 $35,515 $0 $0 $0 $0 $0 $0 $0 $0-47 -

53 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor s Report Board of Commissioners Milford Redevelopment and Housing Partnership We have audited, 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, the financial statements of the business-type activities of Milford Redevelopment and Housing Partnership as of and for the year ended March 31, 2016, and the related notes to the financial statements, which collectively comprise Milford Redevelopment and Housing Partnership s basic financial statements, and have issued our report thereon dated August 15, Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Milford Redevelopment and Housing Partnership s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Milford Redevelopment and Housing Partnership s internal control. Accordingly, we do not express an opinion on the effectiveness of Milford Redevelopment and Housing Partnership s internal control. 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 entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of 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 internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Milford Redevelopment and Housing Partnership s financial statements are free from 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.

54 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Bristol, Connecticut August 15, 2016 Maletta & Company Certified Public Accountants

55 REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE Independent Auditor s Report Report on Compliance for Each Major Federal Program We have audited Milford Redevelopment and Housing Partnership s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of Milford Redevelopment and Housing Partnership s major federal programs for the year ended March 31, Milford Redevelopment and Housing Partnership s major federal programs are identified in the summary of auditor s results section of the accompanying schedule of findings and questioned costs. Management s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor s Responsibility Our responsibility is to express an opinion on compliance for each of Milford Redevelopment and Housing Partnership s major federal programs based on our audit of the types of compliance requirements referred to above. 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 by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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 Milford Redevelopment and Housing Partnership 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 on compliance for each major federal program. However, our audit does not provide a legal determination of Milford Redevelopment and Housing Partnership s compliance. Opinion on Each Major Federal Program In our opinion, Milford Redevelopment and Housing Partnership complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended March 31, 2016.

56 Report on Internal Control over Compliance Management of Milford Redevelopment and Housing Partnership is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Milford Redevelopment and Housing Partnership s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance f or each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Milford Redevelopment and Housing Partnership s internal control over compliance. 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 complian ce 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. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of 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 material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Bristol, Connecticut August 15, 2016 Maletta & Company Certified Public Accountants