Malcolm Johnson AuditCOLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
REPORT ON AUDIT OF BASIC FINANCIAL STATEMENTS,
SUPPLEMENTAL INFORMATION AND SINGLE AUDIT
FOR THE YEAR ENDED SEPTEMBER 30, 2013
to
MALCOLM JOHNSON & COMPANY, P.A.
'— TABLE OF CONTENTS
PAGE
Independent Auditor's Report on Basic Financial Statements and
................... ...............................
— Other Supplemental Information ........ ..................
1 -2
Management's Discussion and Analysis ....................................... ...............................
i -vii
Basic Financial Statements
Statement of Net Position ........................................................... ...............................
3
Statement of Revenues, Expenses and Changes in Net Position .............. ...............................
4
'.. Statement of Cash Flows ......................................................... ...............................
5 -6
Notes to Basic Financial Statements ............................................. ...............................
7 -21
Supplemental Information
— Combining Schedule of Assets, Liabilities and Net Position ............... ..................... .......
22
Combining Schedule of Revenue, Expenses and Changes in Net Position .. ...............................
23
Financial Data Schedule (FDS) Electronic Submission Schedule .......... ...............................
24 -28
Farm Worker Subsidized Housing Program ................................... ...............................
29 -34
Certificateof Borrower .......................................................................................... ...............................
35 -36
— Schedule of Expenditures of Federal Awards .................................. ...............................
37
Single Audit Section
Independent Auditor's Report on Internal Control over Financial Reporting and On
Compliance and Other Matters Based On an Audit of Basic Financial Statements
— Performed in Accordance with Government Auditing Standards .............. ...............................
38-39
Independent Auditor's Report on Compliance with Requirements That Could Have a
_ Direct and Material Effect on Each Major Federal Program and On Internal Control
Over Compliance in Accordance with OMB Circular A -133 .......................... ...............................
40 -41
Schedule of Findings and Questioned Costs ................................... ...............................
42 -43
Summary Schedule Of Prior Audit Findings ....................................................... ...............................
44
MALCOLM JOHNSON & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
P.O. Box 530848
'- DeBary, Florida 32753 -0848
Phone (386) 668 -6464 Fax (386) 668 -6463
malcolmjohnson@,mpinet.net
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners HUD, Miami Area Office
Collier County Housing Authority Office of Public Housing
Immokalee, Florida 909 S. E. First Avenue, Room 500
Miami, Florida 33131 -3028
Report on the Financial Statements
We have audited the accompanying financial statements of the Collier County Housing Authority (the Authority)
which include the statement of net position as of September 30, 2013, and the related statements of revenues,
expenses and changes in net position, cash flows for the year then ended, and the related notes to the financial
statements which collectively comprise the Authority's 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 basic 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 basic
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these basic 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 basic financial statements are free from material misstatement.
�- An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the basic
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the basic financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Authority's preparation and fair presentation of
the basic 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 Authority'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 basic financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
-' Opinion
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial
position of the Authority as of September 30, 2013, and the respective changes in financial position and cash flows
thereof for the year then ended in conformity with accounting principles generally accepted in the United States of
America.
Other Matters
Required Supplementary Information
Accounting Principles generally accepted in the United States of America require that the Management's
Discussion and Analysis on pages i -vii 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 Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the Authority's basic financial statements. The
accompanying Schedule of Expenditures of Federal Awards, as required by the U.S. Office of Management and
Budget Circular A -133, Audits of States, Local Governments and Non - Profit Organizations, the Financial Data
Schedule, and the other supplemental information as listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information is 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. The 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 statement themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
supplementary information referred to above is fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Other Reporting Required by Governmental Auditing Standards
In accordance with Governmental Auditing Standards, we have also issued our report dated December 20, 2013 on
our consideration of the Authority'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 the Authority's internal control over financial reporting and compliance.
DeBary, Florida
December 20, 2013
2
Malco son & om n A.
Certified c Accountants
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2013
As the management of the Collier County Housing Authority ( "the Authority "), we offer the readers of the
Authority's basic financial statements this narrative overview and analysis of the financial activities of the
Authority for the fiscal year ended September 30, 2013. We encourage readers to consider the information
presented here in conjunction with the Authority's basic financial statements elsewhere in this report.
Financial Highlights
• The Authority's total net position decreased by $1,198,926 during fiscal year ended 2013. Total net
position was $9,964,849 and $11,163,775 for FYE 2013 and 2012 respectively.
• The total expenses of all Authority programs (excluding depreciation expense) decreased by $30,479
during fiscal year ended 2013.
• At the close of fiscal year ended 2013, the Authority's assets exceeded its liabilities by $9,964,849.
Using This Annual Report
The Report includes three major sections, the "Management's Discussion and Analysis (MD &A) ", "Basic
Financial Statements ", and "Supplemental Information ":
MD &A
Management's Discussion and Analysis
Basic Financial Statements
Basic Financial Statements
Statement of Net Position
Statement of Revenues, Expenses, and Changes in Net Position
Statement of Cash Flows
Notes to Basic Financial Statements
Supplemental Information
As listed in the Table of Contents
The primary focus of the Authority's basic financial statements is on both the Authority as a whole and the
major individual programs. Both perspectives allow the user to address relevant questions, broaden a basis for
comparison (year to year or Authority to Authority), and enhance the Authority's accountability.
The basic financial statements are designed to be corporate -like in that all business type activities are
consolidated into columns that 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 and 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 ".
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
MANAGEMENT'S DISCUSSION AND ANALYSIS --
SEPTEMBER 30, 2013
(Continued)
Basic Financial Statements
The focus of the Statement of Net Position ( "Unrestricted Net Position ") is designed to represent the net
available liquid (non - capital) assets, net of liabilities, for the entire Authority. Net Position (formerly equity and
net assets) are reported in three broad categories:
Net Investment 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 that have constraints —'
placed on the assets 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 Investment in
Capital Assets ", or "Restricted Net Position ". --
The basic 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, 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.
Finally, the Statement of Cash Flows is included, which discloses net cash provided by, or used for operating
activities, non - capital financing activities, and from capital and related financing activities. —"
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 programs maintained by the Authority are required by the Department of Housing and Urban --
Development. Others are segregated to enhance accountability and control.
The Authority's Programs
The Authority has many programs that are consolidated into a single enterprise fund. The major programs
consist of the following:
Farm Labor Housing - Under the Rural Development -Farm Labor Housing Program, the Authority rents units
that it owns to low income households. The Authority has 641 units of farm labor housing units which provide
assistance to very-low income families. The Authority worked with Rural Development to remove 276 units.
from the Farm Labor Housing Program. It is planning to demolish 50 units and rehabilitate the remaining 315
units. The 276 units will be operated as non - subsidized affordable housing units.
In addition, the Authority owns and operates a 192 -bed dormitory style facility that houses unaccompanied male --
farm workers. The Authority continues to experience significant shortfalls in rental income. Efforts are being
made to sell the property.
ii
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2013
(Continued)
The Authority's Programs (Continued)
Tenant Based Rental Assistance Program (TBRA) - The Tenant Based Rental Assistance Program is a HUD
HOME Grant funded through Collier County Government to provide rental assistance to homeless and disabled
families.
Housing Choice Vouchers - 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 the
Housing Assistance Payment made to the landlord. The program is administered under an 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 approximately 30% of household income.
Florida Family Literacy Initiative — This is a jumpstart program which provides early childhood training,
parenting classes, English classes and parent/child activities.
The Authority as a Whole
The Authority's net position decreased by $1,198,926 during the fiscal year as detailed below. The Authority's
revenues under the Farm Labor Housing Program are primarily from rental income and under the Housing
Choice Voucher Program revenues are from subsidies and grants received from HUD. The Authority received
subsidies each month based on a pre- approved amount by HUD. Grants are drawn down based on need against
a pre - authorized funding level. The Authority's revenue was not sufficient to cover all expenses, including
depreciation during the fiscal year in the Farm Labor Housing Program.
By far, the largest portion of the Authority's net position reflects its investment in capital assets (e.g. land,
building, equipment and construction in progress). The Authority uses these capital assets to provide housing
services to its tenants; consequently, these assets are not available as a source of funds for future spending. The
unrestricted net position of the Authority is available for the future use to provide program service.
iii
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2013
(Continued)
Statement of Net Position
The following table reflects the condensed Statement of Net Assets compared to prior year. The Authority is
engaged only in Business -Type Activities.
Table 1— Statement of Net Position
September 30,
Liabilities
Current liabilities 556,678 607,898 (51,220)
Noncurrent liabilities 2,602,769 2,728,999 (126,230)
Total liabilities 3,159,447 3,336,897 (177,450) —
Total Net Positon $ 9,964,849 $ 11,163,775 $ (1,198,926)
—
Net position
Net investment in capital assets
2013
2012
Variance
Assets
2,688,064
2,842,655
(154,591)
Unrestricted current assets
$ 916,756
$ 839,471
$ 77,285
Restricted current assets
2,690,790
2,968,381
(277,591)
Noncurrent assets
9,516,750
10,692,820
(1,176,070) —'
Total assets
13,124,296
14,500,672
(1,376,376)
Liabilities
Current liabilities 556,678 607,898 (51,220)
Noncurrent liabilities 2,602,769 2,728,999 (126,230)
Total liabilities 3,159,447 3,336,897 (177,450) —
Total Net Positon $ 9,964,849 $ 11,163,775 $ (1,198,926)
—
Net position
Net investment in capital assets
$ 7,619,250
$ 8,626,820
$ (1,007,570)
Restricted
2,688,064
2,842,655
(154,591)
Unrestricted
(342,465)
(305,700)
(36,765)
Total net position
$ 9,964,849
$ 11,163,775
$ (1,198,926) —
There was a decrease in total net position of $1,198,926 due mainly
to depreciation and the reduction in tenant _
revenues in the rural assistance program.
Items to note:
(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.
iv
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2013
(Continued)
Table 2 - Statement of Revenues, Expenses and Changes in Net Position
The following schedule compares the revenues and expenses for the current and previous fiscal year.
Statement of Revenues, Expenses and Changes in Net Position are as follows:
v
September 30,
_.
2013
2012
Variance
Operating Revenues
Rental revenues
$ 1,168,373
$ 1,219,335
$ (50,962)
-.. HUD grants
3,280,042
2,805,502
474,540
Other governmental grants
734,725
824,489
(89,764)
Other revenues
456,640
279,734
176,906
Total operating revenues
5,639,780
5,129,060
510,720
Operating Expenses
Administrative
1,017,161
982,749
34,412
r Tenant services
37,471
20,068
17,403
Utilities
96,081
98,911
(2,830)
Ordinary maintenance and operation
473,485
568,450
(94,965)
Protectivd services
97,072
87,278
9,794
Insurance
337,215
318,597
18,618
General expense
62,007
64,809
(2,802)
Housing assistance payments
3,264,718
3,274,827
(10,109)
Depreciation
1,191,425
1,063,185
128,240
Total operating expenses
6,576,635
6,478,874
97,761
Operating income (loss)
(936,855)
(1,349,814)
412,959
Nonoperating revenues (expenses)
` Interest revenue, unrestricted
22,661
24,679
(2,018)
Interest revenue, restricted
23
37
(14)
Interest expense
(47,290)
(45,469)
(1,821)
` Fraud recovery
18,277
43,040
(24,763)
Other expense
(261,844)
(144,696)
(117,148)
Gain (loss) on disposition of captial assets
6,102
-
6,102
Total Nonoperating revenues (expenses)
(262,071)
(122,409)
(139,662)
Increase (decrease) in net assets
(1,198,926)
(1,472,223)
273,297
Net position, beginning of year
11,163,775
12,635,998
(1,472,223)
Net position, end of year
$ 9,964,849
$ 11,163,775
$ (1,198,926)
v
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2013
(Continued)
Major Factors Affecting the Statement of Revenues, Expenses and Changes in Net Position
Operating revenues had a decrease due to a reduction in tenant rental revenue caused by high vacancies.
Government operating revenue decreased in Rural Development and Housing Choice Voucher Programs.
Operating expenses increased mainly due to the increase in housing assistance payments in the Housing
Voucher Program.
Budgetary Highlights
For the year ended September 30, 2013, individual program or grant budgets were prepared by the Authority
and were approved by the Board of Commissioners. The budgets were prepared in accordance with accounting
procedures prescribed by the applicable funding agency.
Capital Assets and Debt Administration
As of September 30, 2013, the Authority's investment in capital assets was $9,516,250 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, equipment, and construction in
progress.
The Authority has total long -term liabilities as of September 30, 2013 in the amount of $2,577,181. These are in
the USDA Farm Labor Program and the Horizon Village Program. These debts have been incurred to meet its
mission of constructing low income rural housing in the Collier County area.
Additional information on the Authority's capital assets and debt administration can be found in the Notes to
Basic financial statements, which are included in this report.
Capital Assets
As of year end, the Authority had $9,516,250 invested in a variety of capital assets as reflected in the following
schedule.
vi
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
-- MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2013
(Continued)
Table 3 — Capital Assets at Year End
Non - depreciable:
Land
Depreciable:
Buildings
Equipment
Accumulated depreciation
Total
Capital assets, net
September 30,
2013 2012 Variance
$ 2,568,713
2,568,713
29,456,386
1,981,846
31,438,232
(24,490,695)
6,947,537
$ 9,516,250
$ 2,568,713
2,568,713
29,456,386
1,997,378
31,453,764
(23,329,657)
8,124,107
$ 10,692,820
(15,532)
(15,532)
(1,161,038)
(19176,570)
_1__(1,176,570)
Factors Affecting Next Year's Budget
It is uncertain of the impact the upcoming rules changes regarding Housing Assistance Payments grants will
have on the Authority or the Section 8 Voucher Programs. It is anticipated that administrative fees and Grant
subsidy may decrease in the Housing Choice Voucher Program due to recent federal budget constraints.
Economic Factors
Significant economic factors affecting the Authority are as follows:
—' • Federal funding provide by Congress to the Department of Housing and Urban Development
• Local labor supply and demand, which can affect salary and wage rates
• Local inflationary, recessionary and employment trends, which can affect resident incomes and
therefore the amount of rental income
• Inflationary pressure on utility rates, supplies and other costs
• Local development pressures affecting the market rents and demand for affordable housing
�— • Salary and benefits costs increases (e.g. health insurance cost increase).
Contacting the Authority's Financial Management
The financial report is designed to provide a general overview of the Authority's finances for all those with an
interest. If you have questions about this report or wish to request additional information, please contact
Esmeralda Serrata, Executive Director at Collier County Housing Authority, 1800 Farm Worker Way,
Immokalee, Florida, 34142, telephone number (239) 657 -3649.
vii
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
ASSETS
Current assets
Cash and cash equivalents, unrestricted
$ 475,705
Cash and cash equivalents, restricted
2,690,790
Investments, restricted
143,882
Accrued interest receivable
594
Accounts receivable, net of allowance
61,165
Due from other governments
150,839
Inventories, net of obsolescence
6,525
Prepaid expense
78,046
Total current assets
3,607,546
Noncurrent assets
2,688,064
Utilities deposit
500
Capital assets
$ 9,964,849
Not being depreciated
2,568,713
Depreciable, net
6,947,537
Total capital assets, net
9,516,250
Total assets
13,124,296
LIABILITIES
Current liabilities
Vendors and contractors payable
160,901
Accrued wages /taxes payable
9,221
Accrued compensated absences
34,880
Accrued interest payable
5,184
Due to other governments
9,372
Unearned revenue
29,513
Notes and bonds payable
202,412
Total current liabilities
451,483
Current liabilities payable from restricted assets
Resident security deposits
105,195
Noncurrent liabilities
Notes and bonds payable
2,526,475
Accrued compensated absences
34,881
Other accrued liabilities
41,413 --
Total noncurrent liabilities
2,602,769
Total liabilities
3,159,447
NET POSITION
Net 'investment in capital assets
7,619,250
Restricted
2,688,064
Unrestricted
(342,465)
Total net position
$ 9,964,849
The accompanying notes are an integral part of these basic financial statements.
3
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Operating revenues
_., Rental revenue
$ 1,168,373
HUD grant
3,280,042
Other governmental grants
734,725
Other revenue
456,640
Total operating revenues
5,639,780
Operating expenses
Administrative
1,017,161
Tenant services
37,471
Utilities
96,081
Ordinary maintenance & operation
473,485
Protective services
97,072
Insurance
337,215
_ General expenses
62,007
Housing assistance payments
3,264,718
Depreciation
1,191,425
_ Total operating expenses
6,576,635
Operating income (loss)
(936,855)
Nonoperating revenues (expenses)
_ Interest revenue, unrestricted
22,661
Interest revenue, restricted
23
Interest expense
(47,290)
Fraud recovery
18,277
Other expense
(261,844)
Gain/(loss) on disposition of capital assets
6,102
.. Total nonoperating revenues
(262,071)
Increase (decrease) in net position
(1,198,926)
Net position, beginning of year
11,163,775
_ Net position, end of year
$ 9,964,849
The accompanying notes are an integral part of these basic financial statements.
4
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Cash Flows From Operating Activities
Receipts from dwelling rentals $ 1,171,621
Operating grants 4,014,767
Other receipts 491,635
Payments to employees and suppliers (1,801,521)
Payments to landlords and resident benefits (3,696,865)
Net cash provided (used) by operating activities 179,637
Cash Flows From Noncapital Financing Activities
Principal paid on operating debt (58,455)
Interest paid on operating debt (3,815)
Net cash provided (used) by noncapital financing activitiews -(62,270)
Cash Flows From Capital and Related Financing Activities
Purchases of capital assets
(18,431)
Proceeds from disposals of capital assets
9,679
Principal paid on capital debt
(169,000)
Interest paid on capital debt
(47,290)
Net cash provided (used) by capital and related financing activities
(225,042)
Cash Flows From Investing Activities
Purchase /sale of investments
64,577
Interest
22,742
Net cash provided (used) by investing activities
87,319
Net increase (decrease) in cash and cash equivalents (20,356)
Balance - beginning of the year 3,186,851
Balance - end of the year $ 3,166,495
Reconciliation of Cash Flows to Statement of Net Position
Cash and cash equivalents, unrestricted $ 475,705
Cash and cash equivalents, restricted 2,690,790
$ 3,166,495
There are no non -cash transactions.
5
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(Continued)
Reconciliation of Net Operating Income (Loss) to
Net Cash Provided (Used) By Operating Activities
Operating income/(loss) $ (936,855)
_ Adjustments to reconcile net operating income (loss) to
net cash provided (used) by operating activities:
Depreciation elimination
1,191,425
— Increase in accounts receivable
(10,203)
Decrease in due to /from other governments
67,413
Decrease in inventory
859
— Decrease in prepaid expenses
59,967
Increase in other assets
(500)
Increase in security deposits
4,165
— Increase in accounts payable
10,811
Increase in accrued wages
3,077
Increase in accrued compensated absences
9,612
'— Decrease in accrued liabilities
(2,897)
Increase in unearned revenue
26,330
— Other revenue and expense reported as nonoperating
(243,567)
$ 179,637
The accompanying notes are an integral part of these basic financial statements.
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
A - Summary of Significant Accounting Policies and Organization:
1. Organization: Collier County Housing Authority ( "the Authority ") is a public body corporate and
politic pursuant to Chapter 421 Laws of the State of Florida which was organized to provide low rent
housing for qualified individuals in accordance with the rules and regulations prescribed by the U.S.
Department of Housing and Urban Development (HUD) and other federal agencies.
The Authority has been a recipient of several loans and grants from Rural Housing Services (RHS)
since 1971 under Project NO. 09- 011- 05914055 pursuant to Sections 514 and 516 of the Housing Act
of 1949, as amended. The Rural Housing Services programs are designed to provide decent, safe and
sanitary low -rent housing and related facilities for domestic farm laborers.
Effective July 1, 1992, the Board of Commissioners of Collier County transferred all of its HUD
Housing Assistance Payments programs to the Authority, pursuant to an Assumption and Inter -local
agreement. The transfer was approved by the U.S. Department of Housing and Urban Development
pursuant to a Contract of Novation between the Authority, the County and HUD.
The Authority has agreed to undertake the development and operation of certain low rent housing
project and to provide decent, safe and sanitary housing for eligible families pursuant to Section 8 of
the Housing Assistance Act by means of Housing Assistance Payments to owners through Annual
Contributions Contract number A -3402V (Housing Choice Vouchers, Housing Assistance Program).
2. Reporting Entity: In determining how to define the reporting entity, management has considered all —.
potential component units. The decision to include a component unit in the reporting entity was made
by applying the criteria set forth in Section 2100 and 2600 of the Codification of Governmental
Accounting and Financial Reporting Standards and Statement No. 14, (amended) of the Governmental
Accounting Standards Board: The Financial Reporting Entity. These criteria include manifestation of
oversight responsibility including financial accountability, appointment of a voting majority,
imposition of will, financial benefit to or burden on a primary organization, financial accountability as
a result of fiscal dependency, potential for dual inclusion, and organizations included in the reporting
entity although the primary organization is not financially accountable. Based upon the application of
these criteria, the reporting entity has the following component units.
CCHA Land Development Corporation — this component unit has been blended for financial
statement presentation.
The basic financial statements of the Collier County Housing Authority include Farm Labor Housing
Loans and Grants (Rural Housing Service Capital Projects Program), Section 8 Housing Assistance
Programs under Annual Contributions Contract A -3402, Horizon Village (A business activity) which
provides affordable housing to low to moderate income families, Local grants (Homeless Prevention
Rapid Re- housing Program), and the CCHA Land Development Corporation, which is a non - profit
corporation organized, incorporated and controlled, by the Collier County Housing Authority for the _
advancement of affordable housing.
7
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
A - Summary of Significant Accounting Policies and Organization: (Continued)
3. Basis of Presentation and Accounting: In accordance with uniform financial reporting standards for
HUD housing programs, the basic financial statements are prepared in accordance with U. S.
generally accepted accounting principles (GAAP).
Based upon compelling reasons offered by HUD, the Authority reports its basic financial statements
as a special purpose government engaged solely in business -type activities, which is similar to the
governmental proprietary fund type (enterprise fund), which uses the accrual basis of accounting and
the flow of economic resources measurement focus. Revenues are recorded when earned and
expenses are recorded at the time the liabilities are incurred. Pursuant to the election option made
available by GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance
Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements, certain accounting and
financial reporting guidance is applied in the preparation of the basic financial statements, unless
those pronouncements conflict with or contradict GASB pronouncements.
Generally accepted accounting principles for state and local governments requires that resources be
classified for accounting and reporting purposes into the following three net position categories:
Net Investment in Capital Assets — Capital assets, net of accumulated depreciation and
outstanding principal balances of debt attributable to the acquisition, construction or improvement
of those assets.
Restricted - Net position whose use by the Authority is subject to externally imposed stipulations
that can be fulfilled by actions of the Authority pursuant to those stipulations or that expire by the
passage of time. Such assets include assets restricted for capital acquisitions and debt service.
Unrestricted — Net position that is not subject to externally imposed stipulations. Unrestricted
net position may be designated for specific purposes by action of management or the Authority
Board or may otherwise be limited by contractual agreements with outside parties.
4. Budgets: Budgets are prepared on an annual basis for each major operating program and are used as
a management tool throughout the accounting cycle. The capital fund budgets are adopted on a
"project length" basis. Budgets are not, however, legally adopted nor legally required for basic
financial statement presentation.
5. Cash and Cash Equivalents: For purposes of the Statement of Cash Flows, the Authority considers
all highly liquid investments (including restricted assets) with a maturity of three months or less when
purchased and non - negotiable certificates of deposit to be cash equivalents.
6. Interprogram Receivables and Payables: Interprogram receivables /payables, when present, are all
current, and are the result of the use of the Public Housing Program as the common paymaster for
shared costs of the Authority. Cash settlements are made periodically, and all interprogram balances
net zero. Offsetting due to /due from balances are eliminated for the basic financial statement
presentation.
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
A - Summary of Significant Accounting Policies and Organization: (Continued)
7. Investments: Investments, when present, are recorded at fair value. Investment instruments consist
only of items specifically approved for public housing agencies by HUD and the U.S. Department of
Agriculture. Investments are either insured or collateralized using the dedicated method. Under the
dedicated method of collateralization, all deposits and investments over the federal depository
insurance coverage are collateralized with securities held by the Authority's agent in the Authority's
name. It is the Authority's policy that all funds on deposit are collateralized in accordance with both
HUD requirements and requirements of the State of Florida.
8. Inventories: Inventories (consisting of materials and supplies) are valued at cost using the first in,
first out (FIFO) method. If inventory falls below cost due to damage, deterioration or obsolescence,
the Authority establishes an allowance for obsolete inventory. In accordance with the consumption _.
method, inventory is expensed when items are actually placed in service.
9. Prepaid Items: Payments made to vendors for goods or services that will benefit periods beyond the
fiscal year end are recorded as prepaid items.
10. Use of Estimates: The preparation of basic financial statements in conformity with U.S. generally --
accepted accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the
basic financial statements and reported amounts of revenues and expenditures during the reporting ....
period. Actual results could differ from those estimates.
11. Fair Value of Financial Instruments: The carrying amount of the Authority's financial instruments
at September 30, 2013 including cash, investments, accounts receivable, and accounts payable closely
approximates fair value.
12. Capital Assets:
a. Book Value: All purchased fixed assets are valued at cost when historical records are available.
When no historical records are available, fixed assets are valued at estimated historical cost. —'
Land values were derived from development closeout documentation.
Donated fixed assets are recorded at their fair value at the time they are received.
Donor imposed restrictions are deemed to expire as the asset depreciates.
All normal expenditures of preparing an asset for use are capitalized when they meet or exceed
the capitalization threshold.
C1
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
A - Summary of Significant Accounting Policies and Organization: (Continued)
_ 12. Capital Assets: (Continued)
b. Depreciation: The cost of buildings and equipment is depreciated over the estimated useful lives
of the related assets on a composite basis using the straight -line method.
Depreciation commences on modernization and development additions in the year following
completion
The useful lives of buildings and equipment for purposes of computing depreciation are as
follows:
Buildings 20 -30 years
Modernization 15 years
Office and Other Furniture 3 -5 years
c. Maintenance and Repairs Expenditures: Maintenance and repairs expenditures are charged to
operations when incurred. Betterments in excess of $500 are capitalized. When buildings and
equipment are sold or otherwise disposed of, the asset account and related accumulated
depreciation account are relieved, and any gain or loss is included in operations.
13. Compensated Absences: Compensated absences are those absences for which employees will be
paid, such as vacation and sick leave computed in accordance with GASB Statement No. 16. A
liability for compensated absences that is attributable to services already rendered and that are not
—' contingent on a specific event that is outside the control of the Authority and its employees, is accrued
as employees earn the rights to the benefits. Compensated absences that relate to future services or
that are contingent on a specific event that is outside the control of the Authority and its employees
are accounted for in the period in which such services are rendered or in which such events take place.
14. Other Post Employment Benefits (OPEB): In relation to its employee benefit programs, the
Authority does not provide any Other Post Employment Benefits, as outlined under GASB 45.
15. Litigation Losses: The Authority recognizes estimated losses related to litigation in the period in
which the occasion giving rise to the loss occurred, the loss is probable and the loss is reasonably
estimable.
16. Annual Contribution Contracts: Annual Contribution contracts provide that HUD shall have the
authority to audit and examine the records of public housing authorities. Accordingly, final
determination of the Authority's financing and contribution status for the Annual Contribution
Contracts is the responsibility of HUD based upon financial reports submitted by the Authority.
10
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
A - Summary of Significant Accounting Policies and Organization: (Continued)
17. Risk Management: The Authority is exposed to various risks of loss related to torts; theft of,
damage to, and destruction of assets; errors and omissions; injuries to employees; and natural
disasters. The Authority carries commercial insurance for all risks of loss, including workers'
compensation and employee health and accident insurance. Settled claims resulting from these risks
have not exceeded commercial insurance coverage in any of the past three fiscal years. Additionally,
there have been no significant reductions in insurance coverage from the prior year.
18. Use of Restricted Assets: It is the Authority's policy to first apply restricted resources when an
expense is incurred for purposes for which both restricted and unrestricted net position is available.
19. Operating Revenues and Expenses: The principal operating revenues of the Authority's enterprise
fund are charges to customers for rents and services. Operating expenses for the Authority's
enterprise fund include the cost of providing housing and services, administrative expenses and
depreciation on capital assets. Revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
B - Deposits and Investments: For purposes of the Statement of Cash Flows, the Authority considers all
highly liquid investments (including restricted assets) with a maturity of three months or less when
purchased and non - negotiable certificates of deposit to be cash equivalents. There were no noncash
investing, capital and financing activities during the year.
1. HUD Deposit and Investment Restrictions - HUD requires authorities to invest excess HUD
program funds in obligations of the United States, certificates of deposit or any other federally insured
instruments.
HUD also requires that deposits of HUD program funds be fully insured or collateralized at all times.
Acceptable security includes FDIC/FSLIC insurance and the market value of securities purchased and --
pledged to the political subdivision. Pursuant to HUD restrictions, obligations of the United States are
allowed as security for deposits. Obligations furnished as security must be held by the Authority or
with an unaffiliated bank or trust company for the account of the Authority. _
2. Risk Disclosures
a. Interest Rate Risk: As a means of limiting its exposure to fair value losses arising from rising
interest rates, the Authority's investment policy limits the Authority's investment portfolio to
maturities not to exceed two years at time of purchase.
At September 30, 2013, the Authority's deposits and investments were not limited and all of
which are either available on demand or have maturities of less than two years.
b. Credit Risk: This is risk that a security or a portfolio will lose some or all of its value due to a
real or perceived change in the ability of the issuer to repay its debt. The Authority's investment
policy is that none of its total portfolio may be invested in securities of any single issuer, other
than the US Government, its agencies and instrumentalities.
11
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
_ (Continued)
B - Deposits and Investments: (Continued)
3. Deposit and Investment Risks
The Authority held the following deposits and investments at September
30, 2013.
Carrying
Value
_ Deposits:
Demand deposits
$ 475,405
Time deposits
2,690.790
Total deposits
S 3,166,4905
_ Fair Credit
Maturity
Value Rating
Date
Callable
Investments:
Pinellas County Utility Bonds $ 25,110 AAA
10/01/2025
No
Miami Dade FL Aviation 73,772 AAA
10/01/2014
No
Lee County School Board 35,000 AAA
08/01/2022
No
Florida State Education Bonds 10,000 AAA
05/01/2011
Yes
Total Investments $ 143.882
... Total Deposits and Investments S3.310,37
Custodial Credit Risk: Exposure to custodial credit related to deposits exists when the Authority holds
deposits that are uninsured and uncollateralized; collateralized with securities held by the pledging
financial institution, or by its trust department or agent but not in the Authority's name; or collateralized
without a written or approved collateral agreement. Exposure to custodial credit risk related to
investments exists when the Authority holds investment that are uninsured and unregistered, with
securities held by the counterparty or by its trust department or agent but not in the Authority's name.
The Authority's policy as it relates to custodial credit risk is to secure its uninsured deposits with
—� collateral, valued at no more than market value, at least at a level of 100% of the uninsured deposits and
accrued interest thereon. The investment policy also limits acceptable collateral to U.S. Treasury
securities obligation of federal agencies, securities of government- sponsored agencies, and other
instruments which may be approved by the U.S. Department of HUD. As required by Federal 12 U.S.
C.A., Section 1823 (e), all financial institutions pledging collateral to the Authority must have a written
collateral agreement approved by the board of directors or loan committee.
At September 31, 2013 the Authority was not exposed to custodial credit as defined above
12
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
B - Deposits and Investments: (Continued)
3. Deposit and Investment Risks (Continued)
Investment Credit Risk: The Authority's investment policy limits investments to those allowed by the
U.S. Department of HUD. These investment limitations are described in Note A. Credit risk is the risk
that an issuer or other counterparty to an investment will not fulfill its obligations. The Authority has no
formal policy limiting investments based on credit rating, but discloses any such credit risk associated
with their investments by reporting the credit quality ratings of investments in debt securities as
determined by nationally recognized statistical rating organizations — rating agencies — as of the year end.
Unless there is information to the contrary, obligations of the U. S. government or obligations explicitly
guaranteed by the U. S. government are not considered to have credit risk and do not require disclosure of
credit quality.
As noted in the schedule of deposits and investment above, at September 30, 2013, the investments held
by the Authority mature October, 2013, through May, 2034. The Authority may sell these investments at
fair value at any time.
Concentration of Investment Credit Risk: Exposure to concentration of credit risk is considered to
exist when investments in any one issuer represent a significant percent of total investments of the
Authority. Investments issued or explicitly guaranteed by HUD- approved instruments are excluded from
this consideration.
At September 30, 2013, the Authority had no concentration of credit risk as defined above.
C - Accounts Receivable:
Dwelling rents (net of allowance for doubtful accounts of $24,807)
Fraud Receivables (Net of allowance for doubtful accounts of $15,066)
D - Due From Other Governments:
Rural Rental Assistance - September 30, 2012 allocation
County of Collier County - Tenant Based Rental Assistance
County of Collier County - Shelter Plus Care Program
Portability — Other Public Housing Authorities
E - Prepaid Expense:
Prepaid insurance
13
$ 38,566
22,599 -'
$ 60,909
77,028
7,143
5,759 _
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
_ (Continued)
F - Land, Buildings and Equipment:
Interest and principal shall be paid as follows:
(a) Annual principal payments of $20,000 each plus accrued interest shall be payable in arrears on the
150' day of November 2005, and on the 15t'' day in the month of November in each subsequent
year of the loan term;
(b) If the due date for any payment hereunder would fall on a day that is not a business day (i.e., a day
that is a Saturday, Sunday or banking holiday), then the payment shall instead be due on the next
succeeding business day; and
(c) Interest shall cease to accrue on any amount of principal paid in advance of its due date.
Interest Rate — The unpaid principal balance of the Note, shall bear interest, while current, at the
Applicable Interest Rate. As used in this Note, the term "applicable Interest Rate: means:
• Since the interest paid in connection with this Loan is exempt from income taxation by the United
States of America and by the State of Florida, the Applicable Interest Rate shall be an annual rate
of interest equal to one percent (1 %) less than the "highest prime rate" of interest published in the
Wall Street Journal, but not less than three percent (3 %) per annum.
14
Balance
Balance
September 30,
September 30,
2012
Additions
Deletions
2013
Not being depreciated:
Land
$ 2,568,713
$ -
$ -
$ 2,568,713
Total not being depreciated
2,568,713
-
-
2,568,713
Depreciable:
Buildings & improvements
29,456,386
-
-
29,456,386
Accumulated depreciation
(21,464,374)
(1,183,802)
-
(22,648,176)
Net buildings & improvements
7,992,012
(1,183,802)
-
6,808,210
Equipment
1,997,378
18,431
(33,963)
1,981,846
_ Accumulated depreciation
(1,865,283)
(7,622)
30,386
(1,842,519)
Net equipment
132,095
10,809
(3,577)
139,327
Net depreciable assets
8,124,107
(1,172,993)
(3,577)
6,947,537
_ TOTAL
$ 10,692,820
$ (1,172,993)
$ (3,577)
$ 9,516,250
G - Long -Term Debt — Line of Credit:
1. The outstanding balance of Line
of Credit Notes
in the Business Activities (Horizon Village) at
_,. September 30, 2013 was $345,613.
Interest and principal shall be paid as follows:
(a) Annual principal payments of $20,000 each plus accrued interest shall be payable in arrears on the
150' day of November 2005, and on the 15t'' day in the month of November in each subsequent
year of the loan term;
(b) If the due date for any payment hereunder would fall on a day that is not a business day (i.e., a day
that is a Saturday, Sunday or banking holiday), then the payment shall instead be due on the next
succeeding business day; and
(c) Interest shall cease to accrue on any amount of principal paid in advance of its due date.
Interest Rate — The unpaid principal balance of the Note, shall bear interest, while current, at the
Applicable Interest Rate. As used in this Note, the term "applicable Interest Rate: means:
• Since the interest paid in connection with this Loan is exempt from income taxation by the United
States of America and by the State of Florida, the Applicable Interest Rate shall be an annual rate
of interest equal to one percent (1 %) less than the "highest prime rate" of interest published in the
Wall Street Journal, but not less than three percent (3 %) per annum.
14
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
G - Long -Term Debt — Line of Credit: (Continued)
Interest Rate (Continued)
The outstanding balance of Notes Payable at September 30, 2013 was $345,613. The notes are
payable each year in the amounts and at the interest rate listed below:
September 30,
Principal
Interest
2014
$ 20,000
$ 10,565
2015
20,000
9,965
2016
20,000
9,364
2017
20,000
8,764
2018
20,000
8,164
2019 -2023
100,000
36,000
2024 -2028
100,000
15,000
2029
45,613
1,800
345,613
Less Current Portion
20,000
Interest expense for the year ended September 30, 2013 was $16,207. There was no capitalized
interest expense for the year ended September 30, 2013. The debt is secured by the property
purchased in conjunction with the above financing as reported above.
2) The outstanding balance of Line of Credit Notes in the Farmers Home Program at September 30, 2013
was $262,851.
Interest and principal shall be as follows:
(a) The principal amount of the loan is due at maturity on November 25, 2013. The line of credit is
for $300,000 entered into on November 25, 2012. The Authority may take multiple advances up
to a maximum of $300,000.
(b) The interest rate may change daily and is equal to the rate published in the Wall Street Journal.
(c) Monthly payments cover the accrued interest only.
(d) This note has been treated as Long -Term Debt since both the Bank and the Authority intend to
roll this note over for at least one additional year.
3) The outstanding balance of Line of Credit Notes in the Component Unit (CCHA Land, Inc.) at
September 30, 2013 was $89,307.
15
I"
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
G - Long -Term Debt — Line of Credit: (Continued)
Interest Rate (Continued)
Interest and principal shall be paid as follows:
(a) The principal amount of the loan is due at maturity on November 25, 2013. The line of credit is
for $200,000 entered into on November 24, 2012. The Authority may take multiple advances up
to a maximum of $200,000.
(b) The interest rate may change daily and is equal to the rate published in the Wall Street Journal.
(c) Monthly payments cover the interest only.
H Long Term Debt:
Revenue Bonds Payable: Capital facilities are financed by debt which is guaranteed and subsidized by
U. S. Department of Agriculture, Rural Housing Services (RHS). The Authority presently has bonds
payable on its farm laborer housing projects which are due annually in installments of varying principal
and interest amounts. Revenue bonds payable at September 30, 2013 are as follows:
Collier County Housing Authority Revenue Bonds, Series C, 1 %, due
annually on September 1 in principal amounts of $54,000 to $68,000 with
interest to September 1, 2014 $ 68,000
Collier County Housing Authority Revenue Bonds, Series D, 1 %, due
annually on September 1 in principal amounts of $24,380 to $33,000 with
interest to September 1, 2023 312,000
Collier County Housing Authority Revenue Bonds, Series E, 1 %, due
annually on September 1 in principal amounts $27,000 to $36,000 with
interest to September 1, 2031 599,000
Collier County Housing Authority Revenue Bonds, Series F, 1 %, due
annually on September 1 in principal amounts of $39,072 to $52,000 with
interest to September 1, 2032 918,000
Total long -term debt
The revenues of the project are pledged to the payment of principal and interest on the revenue bonds.
The bonds are redeemable before maturity, at the option of the Authority, in inverse numerical and
maturity order, on any interest payment date upon giving 40 days written notice to Rural Housing
Services.
16
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
H - Long Term Debt: (Continued)
Maturities of long -term debt for each of the five succeeding years and in the aggregate are as follows at
September 30, 2010:
September 30,
Principal
Interest
2014
$ 169,000
$ 18,970
2015
174,000
17,240
2016
106,000
16,180
2017
106,000
15,120
2018
109,000
13,420
2019 -2023
554,000
32,900
2024 -2028
449,000
11,340
2029 -2032
230,000
7,100
1,897,000
Less current portion 169,000
Sinking Fund Debt Service Account: Under the terms of the revenue bonds, a sinking fund has been
established to provide debt service funding. After operation and maintenance requirements are met, the
Authority transfers to the sinking fund debt service account such amounts as may be due of interest and
principal on the bonds. The amount required to be transferred during the year ended September 30, 2013
in order to meet debt service requirements was $189,660 which was accomplished. The cash balance in
the sinking fund debt service account at September 30, 2013 was $56.
Sinking Fund Reserve Account: Immediately after each transfer to the sinking fund debt service
account, any excess funds are deposited in the sinking fund reserve account. Funds in the reserve account
are only withdrawn upon written prior approval of Rural Housing Services:
The Authority is required to make monthly reserve deposits in the amount of $33,333 plus the amount of
any deficiency in prior deposits to the reserve account until funds and investments in the reserve account
shall equal $2,514,900. The aggregate deposits to the reserve account and interest earned for the year
ended September 30, 2013 were $106,939, which exceeded the required annual aggregate deposits.
Withdrawals from the sinking fund reserve account are authorized for the following purposes:
a) To meet principal and interest payments due on the bonds in the event the sinking fund debt service
account balance is not sufficient for that purpose.
b) To pay costs of extraordinary repairs or replacements to the project which is not considered current
expenses.
17
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
H - Long Term Debt: (Continued)
Sinking Fund Reserve Account: (Continued)
c) To make improvements or extensions to the project.
d) For other purposes desired by the Authority which will promote its purpose without jeopardizing the
collectability of the bonds or underlying security.
e) To the extent the reserve account exceeds $2,514,900, to purchase bonds before maturity in the
prescribed manner.
Supplemental Information: (Schedule of Funding Reserve)
a. Investment Reserve Funds
Sinking Fund Debt Service Account (Principal and Interest)
�. Beginning balance $ 56
Transfers to Debt Service Account including interest earned 189,660
Withdrawals for payment of principal and interest 189,660)
Ending balance 56
Sinking Fund Reserve Replacement Account
Beginning balance — less transfers to replacements and operations 2,429,116
Transfers to reserves including interest earned 106,939
Use of reserves for capital improvements -
Ending balance 2,536,055
Total Investment Reserve Fund 2,536,111
Fully Funded Balance per Loan Agreement 2,514,900
Excess /(Deficiency) of Reserves on Hand 21.211
b. Compliance with Bond Indentures Requirements: The Collier County Housing Authority, Farm
Worker Village, has met and exceeded the bond indenture and reserve requirements outlined in this
report, as reported in this note, when considering approved withdrawals from Rural Development for
long -term improvements. All interest earnings on invested funds are deposited monthly by the Bank
directly into the Housing Authority's cash account and transferred to the reserve account.
Construction Fund The construction fund is used to account for grant and loan funds received from
Rural Housing Services and other sources and to record construction activities. During the year ended
September 30, 2013, there were no expenditures from the Construction Fund for authorized construction
activity.
18
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
H - Long Term Debt: (Continued)
In the Rural Housing Services enterprise fund, reservations of unrestricted net assets have been
established in conjunction with debt issuance requirements or policy directives as stipulated by the
respective aforementioned funds.
I - State Housing Initiatives Partnership (SHIP Program) Loan: The outstanding balance of the SHIP
Loan Payable at September 30, 2013 was $134,120. The loan is payable each year in the amounts and at
the interest rate listed below:
September 30,
Amount
Interest
2014
$ 13,412
0%
2015
13,412
0%
2016
13,412
0%
2017
13,412
0%
2018
13,412
0%
2019 -2023
67,060
0%
134,120
Less current portion
13,412
Interest expense for the year ended September 30, 2013 was $0. There was no capitalized interest
expense for the year ended September 30, 2013.
Interest: Interest on this Note shall be zero percent (0 %) per annum; except that if the Authority fails to
pay this Note as required, the interest rate shall be twelve percent (12 %) per annum from the date when
payment of this Note is due until the Authority pays it in full. The Authority has not failed to pay the
principal payment for FY 2013 and is therefore not required to pay future payments at 12% interest as of
FY 2013.
Payments: Principal payments shall be deferred for a period of three years from date disbursed with
seventeen equal yearly payments of $13,412 due beginning on September 1, 2007 and continuing for
seventeen years thereafter until payment in full of $228,000 is received on August 1, 2023. The
Authority's total payment shall be $228,000.
M
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued)
J - Schedule of Changes in Noncurrent Liabilities:
Balance at Year Ended
September 30, 2012 September 30, 2013 _ September 30, 2013
Long -term Current Current Long -term
Portion Portion Additions Payments Portion Portion
Notes and bonds payable $ 2,679,035 $ 277,307 $ - $ (227,455) $ 202,412 $ 2,526,475
Accrued compensated absences 25,268 25,268 29,605 (10,380) 34,880 34,881
`- Family self sufficiency escrow 24,696 - 16,717 - - 41,413
$ 2,728,999 $ 302,575 $ 46,322 _1217,8351 $ 237,292 $ 2,602,769
K- Annual Contributions by HUD:
Annual Contributions Contract A -3402 - Section 8 programs provide for housing assistance payments
to private owners of residential units on behalf of eligible low or very low- existing and moderately
rehabilitated housing covering the difference between the maximum rental on a swelling unit, and the
amount of rent contribution by a participating family and related administrative expense. The Authority is
also eligible to receive reimbursement for preliminary expenses prior to lease up. HUD contributions for
the year ended September 30, 2013, were as follows:
Housing Choice Vouchers
L - Economic Dependency: The Authority receives approximately 76% of its revenues from the U.S.
Department of Agriculture and the U.S. Department of Housing and Urban Development (HUD). If the
amount of revenues received from these federal agencies falls below critical levels, the Authority's
reserves could be adversely affected.
M - Contingencies: The Authority is subject to possible examinations made by Federal and State authorities
who determine compliance with terms, conditions, laws and regulations governing other grants given to
the Authority in the current and prior years. There were no such examinations for the year ended
September 30, 2013.
N - Litigation: As of September 30, 2013, the Authority was involved with various litigations arising from
operation of its rural development housing program. In the opinion of the Authority's legal counsel such
losses, if any, resulting from litigation would be adequately covered by insurance.
0- Leasing Activities (as Lessor): The Authority is the lessor of dwelling units mainly to low- income
residents. The rents under the leases are determined generally by the resident's income as adjusted for
eligible deductions regulated by HUD and Rural Development. Leases may be cancelled by the lessee at
any time. The Authority may cancel the lease only for cause.
Revenues associated with these leases are recorded in the basic financial statements and schedules as
"Rental Revenue ". Rental Revenue per dwelling unit generally remains consistent from year to year, but
is affected by general economic conditions which impact personal income and local job availability.
20
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
(Continued) _
P - Operating Leases: The Authority is committed under a non - cancelable lease for office space. This lease has
been accounted for as operating leases in the accompanying basic financial statements. The office lease is not
subject to an annual escalation clause. Future minimum lease payments required under these leases are as
follows:
Future minimum lease payments required under these leases are as follows:
September 30, Office Space
2013 -2014
Q - Decrease in Net Assets: The decrease in net assets is expected to be absorbed through operations in
subsequent fiscal years, assisted by transfers from the Rural Rental Program. No fund deficit is expected _
as a result of the current year loss.
21
SUPPLEMENTAL INFORMATION
ASSETS
Current assets
Cash and cash equivalents, unrestricted
Cash and cash equivalents, restricted
Investments, restricted
Accrued interest receivable
Accounts receivable, net of allowance
Due from other governments
Due from/to other programs
Inventories, net of obsolescence
Prepaid expense
Total current assets
Noncurrent assets
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
COMBINING SCHEDULE OF NET POSITION
SEPTEMBER 30, 2013
Housing
Rural
HOME -
Choice
Rental
Investment Blended State & Other
Voucher
Shelter Assistance
Partnerships Component Local Business
Program
Plus Care Payments
Program Unit Programs Activities Total 2013
$ 197,732
$ 121
$ 210,612 $
10,974 $
53,795
$ 11 $ 2,460
$ 475,705
193,422
-
2,494,012
-
3,356
- -
2,690,790
-
-
143,882
-
-
- -
143,882
-
-
594
-
-
- -
594
22,599
-
38,417
-
149
- -
61,165
5,759
7,143
60,909
77,028
-
- -
150,839 -�
27,792
(6,500)
461,836
(109,175)
118,387
20,520 (512,860)
-
-
-
6,525
-
-
- -
6,525
8,482
-
66,397
-
-
- 3,167
78,046
455,786
764
3,483,184
(21,173)
175,687
20,531 (507,233)
3,607,546
Utilities deposit
- - 500
- - - -
500
Capital assets
- 5,700 -
- - 1,251
9,221
Not being depreciated
- - 2,453,713
- - - 115,000
2,568,713
Depreciable, net
16,128 - 4,219,768
- - - 2,711,641
6 947 537
Total capital assets, net
16,128 - 6,673,481
- - - 2,826,641
9,516,250
Total assets
471,914 764 10,157,165
(21,173) 175,687 20,531 2,319,408
13,124,296 -
LIABILITIES
Current liabilities
Vendors and contractors payable
Accrued wages/taxes payable
Accrued compensated absences
Accrued interest payable
Due to other governments
Unearned revenue
Notes and bonds payable
Total current liabilities
Current liabilities payable from
restricted assets
Resident security deposits
Noncurrent liabilities
Notes and bonds payable
Accrued compensated absences
Other accrued liabilities
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment in capital assets
Restricted
Unrestricted
Total net position
38,248
- 114,623 -
- - 8,030
160,901
2,270
- 5,700 -
- - 1,251
9,221
11,453
- 19,328 -
- - 4,099
34,880
-
- - -
- - 5,184
5,184
2,722
- 6,410 -
- - 240
9,372 .--
-
- 29,513 -
- -
29,513
-
- 169,000 -
- - 33,412
202,412
54,693
- 344,574 -
- - 52,216
451,483
- 502,632
3,159,447
-
- 101,839
- 3,356
- -
105,195
-
- 1,990,851
- 89,307
- 446,317
2,526,475 -
11,453
- 19,329
- -
- 4,099
34,881
41,413
- -
- -
- -
41,413
52,866
- 2,010,180
- 89,307
- 450,416
2,602,769
107,559
- 2,456,593
- 92,663
- 502,632
3,159,447
16,128 - 4,776,481 - - - 2,826,641 7,619,250
152,009 - 2,536,055 - - - - 2,688,064
196,218 764 388,036 (21,173) 83,024 20,531 (1,009,865) (342465)
$ 364,355 $ 764 $ 7,700,572 $ (21,173) $ 83,024 $ 20,531 $ 1,816,776 $ 9,964,849
22
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Housing Rural HOME
Choice Rental Investment Blended State & Other
Voucher Shelter Assistance Partnerships Component Local Business
Program Plus Care Payments Program Unit Programs Activities Total 2013
Operating revenues
Rental revenue
HUD grants
Other governmental grants
Other revenue
Total operating revenues
Operating expenses
Administrative
Tenant services
Utilities
Ordinary maintenance & operation
Protective services
Insurance
General expenses
Housing assistance payments
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Interest revenue, unrestricted
Interest revenue, restricted
Interest expense
Fraud recovery
Other expense
Gain/(loss) on disposition of capital
assets
Total nonoperating revenues
Increase (decrease) in net position
Net position, beginning of year
Net position, end of year
$ - $ - $ 1,006,326 $ - $ 13,600 $ - $ 148,447 $ 1,168,373
3,280,042 - - - - - 3,280,042
- - 732,714 2,011 - - - 734,725
301,522 - 40,002 15,000 94,050 - 6,066 456,640
3,581,564 - 1,779,042 17,011 107,650 - 154,513 5,639,780
378,476
- 517,666
- 35,857
51 85,111
1,017,161
-
- 1,356
- 36,115
- -
37,471
2,756
- 58,614
- -
- 34,711
96,081
10,791
- 424,645
- -
- 38,049
473,485
-
- 45,255
- -
- 51,817
97,072
8,973
- 299,300
- -
- 28,942
337,215
30,729
- 28,174
- -
- 3,104
62,007
3,200,465
- -
64,253 -
- -
3,264,718
2,902
- 986,166
- -
- 202,357
1,191,425
3,635,092
- 2,361,176
64,253 71,972
51 444,091
6,576,635
(53,528)
- (582,134)
(47,242) 35,678
(51) (289,578)
(936,855)
12 - 22,633 - 16 - - 22,661
23 - - - - - 23
- - (29,960) - (1,123) - (16,207) (47,290)
18,277 - - - 18,277
(261,844) - - - - - - (261,844)
6,102
- -
- -
- -
6,102
(237,430)
- (7,327)
- (1,107)
- (16,207)
(262,071)
(290,958)
- (589,461)
(47,242) 34,571
(51) (305,785)
(1,198,926)
655,313
764 8,290,033
26 069 48,453
20,582 2122,561
11 163,775
$ 364,355 $
764 $ 7,700,572 $
(21,173) $ 83,024 $
20,531 $ 1,816,776
$ 9,964,849
23
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
FARM WORKER SUBSIDIZED HOUSING PROGRAM
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 2013
The following is supplemental information requested by the U.S. Department of Agriculture - Rural Housing
Services (formerly Farmers Home Administration).
1. Schedule of Insurance Coverages
At September 30, 2013, the Authority had the following insurance coverage in effect:
Amount of
Insurance Carrier Type of Coverage Coverage Term
ITT Hartford Insurance Company
Opticom Insurance
Philadelphia Insurance
Florida PH Authority Insurance
Praetorian Insurance Co
Fidelity bond /Employee Dishonesty
$100,000 Deductible
Workers' Compensation
Automobile liability
Property, Office Building & Personal
Property Fire & Extended Coverage (90%
coinsurance)
General Liability Personal Injury, products,
advertising, property damage
$2,000,000 7/12/13 - 7/12/14
Statutory 10/1/13- 10/1/13
$500,000 10/1/12- 10/1/13
$35,000,000 5/8/13- 5/8/14
$2,000,000 10/1/12-10/1/13
US Liability Insurance Directors & officers liability $1,000,000 5/22/13- 5/22/14
Fidelity & Deposit Co. Employee dishonesty $100,000 7/12/13- 7/12/14
ITT Hartford Insurance Company Employee dishonesty (ERISA Bond) $100,000 7/11/13- 7/11/14
Praetorian Insurance Co. Garbage Truck $500,000 10/1/12- 10/1/13
2. Exemption from Real Estate and Income Taxes - The Authority is a public body corporate and politic
pursuant to Chapter 421, Laws of the State of Florida, which is subsidized by the federal government.
The Authority is not subject to federal, state income taxes, or local property taxes, nor is it required to
file federal and state income tax returns as a public body corporate and politic pursuant to Chapter 423,
Laws of the State of Florida.
3. Reserves - The Housing Authority has maintained adequate reserves for operations and Bond debt
service at September 30, 2013. See also Note B to basic financial statements.
4. Accounting Records and Fixed Asset Control - The accounting records maintained are adequate to
facilitate budgetary reporting and analytical purposes. The fixed assets are also adequately safeguarded
by the Authority personnel.
5. Financial Reports - The financial reports included in this audit are in agreement with the accounting
records of the Authority after audit adjustments have been made.
6. Deposit Funds - We noted that deposit funds are adequately insured by the FDIC and properly
collateralized and are at or exceed the required reserve levels required under the Loan and Grant
Agreement as of September 30, 2013.
29
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
FARM WORKER SUBSIDIZED HOUSING PROGRAM
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 2013
(Continued)
7. Comments on Compliance and Administrative Internal Control - We have audited the basic
financial statements of the Collier County Housing Authority - Farm Worker Subsidized Housing
Program for the year ended September 30, 2013, and have issued our report thereon dated December 20,
2012. Based on our tests of transactions and examination of records as required by the Audit Guide, we
believe that Collier County Housing Authority - Farm Worker Subsidized Housing Program has
complied with the financial terms and conditions of the contract with the regulations, policies and
procedures prescribed by the U.S. Department of Agriculture, Rural Housing Services (formerly
Farmers Home Administration), loan agreement, and the financial regulations and procedures prescribed
by management and those of its governing board.
As a part of our audit, we reviewed and tested the Authority's system of internal control to the extent we
considered it necessary to evaluate the system as required by generally accepted auditing standards.
Under these standards, the purposes of such evaluations are to establish a basis of reliance on the system
of internal accounting control in determining the nature, timing and extent of other auditing procedures
that are necessary for expressing an opinion on the basic financial statements and to assist the auditor in
planning and performing the audit of the basic financial statements.
Additionally, our audit included procedures necessary in our judgment to determine compliance with
contractual terms and conditions and regulations, policies and procedures prescribed by the Rural
Housing Services (formerly Farmers Home Administration) and by management and the governing —.
board of the Authority.
The objective of internal accounting control is to provide reasonable, but not absolute, assurance as to
the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of
financial records for preparing basic financial statements and maintaining accountability for assets. The
concept of reasonable assurance recognizes that the cost of a system of internal accounting control
should not exceed the benefits derived and also recognizes that the evaluation of these factors
necessarily requires estimates and judgments by management.
There are inherent limitations that should be recognized in considering the potential effectiveness of any
system of internal accounting control. In the performance of most control procedures, errors can result
from misunderstanding of instructions, mistakes of judgment, carelessness, or other personal factors.
Control procedures whose effectiveness depends upon segregation of duties can be circumvented by --
collusion. Similarly, control procedures can be circumvented intentionally by management with respect
to the estimates and judgments required in the preparation of basic financial statements. Further,
projection of any evaluation of internal accounting control to future periods is subject to the risk that the
procedures may become inadequate because of changes in conditions, and that the degree of compliance
with the procedures may deteriorate.
Kill
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
FARM WORKER SUBSIDIZED HOUSING PROGRAM
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 2013
(Continued)
7. Comments on Compliance and Administrative Internal Control (Continued)
Our audit of the basic financial statements made in accordance with generally accepted auditing
standards, including the study and evaluation of the Authority's system of internal control for the period
ended September 30, 2013, that was made for the purposes set forth in the first paragraph of this report,
would not necessarily disclose all weaknesses in the system because it was based on selective tests of
accounting records and related data.
However, such study and evaluation disclosed no conditions that we believe to be material weaknesses
or evidence of noncompliance. These conditions were considered in determining the nature, timing, and
extent of audit tests to be applied to our audit of the basic financial statements and this report of such
conditions does not modify our report dated December 20, 2012 on such basic financial statements.
8. Other Findings or Recommendations for the Period Ended September 30, 2013 - There were no
reportable findings.
9. The Required Schedule of Expenditures of Federal Awards along with required reports on Internal
Controls and Federal Compliance as outlined under Office of Management and Budget (OMB) Circular
A -133 were issued to the Authority as one report, as mandated by the Amended Single Audit Act of
1996 Amendment (Public Law 104 -156).
10. Accounts Receivable- Tenants - Tenants accounts receivable at September 30, 2013 totaling $63,373,
were accounts aged at ninety days (90) or less.
11. Accounts Payable consists of $160,901 at September 30, 2013. This balance which is payable to
reoccurring vendors is for services or purchases of ninety days (90) or less.
12. Management Fees - The Collier County Housing Authority is the owner of the Farm Worker
Subsidized Housing Program, and does not charge any management fees to administer this project.
31
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
FARM WORKER SUBSIDIZED HOUSING PROGRAM
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 2013
(Continued)
13. Schedule of Financial Institutions Where the Housing Authority Maintains its Bank Accounts
Name of Financial Institution
Account Name
Account Balance
Classification
Florida Community Bank
Bond and Interest
$ 56
Cash - Reserve Fund -
Restricted Investments -
Reserve Fund
1400 North 15th Street
Certificates of Deposit
200,000
Restricted
Immokalee, Florida 33934
CCHA Land, Inc.
33,869
Cash - Unrestricted Fund
Reserve
2,192,173
Reserve
Management Consultant Inc.
19,961
Cash - Unrestricted Fund
Management Consultant Inc.
3,321
Cash - Security Deposits
2,449,380
Bank of America
Section 8 Operation
324,416
Cash - Unrestricted
P.O. Box 31590
Payroll Account
23,971
Cash - Unrestricted Fund
Tampa, Florida 33631 -3590
Section 8 - Admin Funds
53,405
Operational Maintenance - RD
37,613
Revenue Fund
141,060
Security Deopsit Fund
103,656
Horizon Village
2,360
TBRA Operating
10,974
Shelter Plus Care Operating
121
Section 8 - Escrow
19,096
HPRP - Operating
11
716,683
Independent Bankers' Bank of
Pinellas County Sewer Revenue
25,110
Investments- Reserve Fund -
Florida Bond
Restricted
P.O. Box 4998
Lee County Florida School Board
35,000
Investments- Reserve Fund -
Unrestricted
Orlando, Florida 32802 -4998
Florida State Edcational System
10,000
Restricted
Miami -Dade FL Aviation
73,772
143,882
Petty Cash & Return Check Fund
400
$ 3,310,345
32
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
FARM WORKER SUBSIDIZED HOUSING PROGRAM
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 2013
(Continued)
13. Schedule of Financial Institutions Where the Housing Authority Maintains its Bank Accounts
(Continued)
The above amounts were confirmed with the institution listed at September 30, 2013.
14. Schedule and Computation of Current Return to Owners Allowed - Not applicable, because the
Authority, is a legal public Authority and not a private enterprise.
15. Schedule of Changes in Owners and Board of Commissioners - This is a local Public Authority and
can never change its owners. The following is a list of the current Board of Commissioners.
Commissioner Expiration of Term Address
Z. Floyd Crews October 27, 2015 Immokalee, Florida
David B. Genson November 7, 2014 Naples, Florida
Bill McDaniel October 17, 2014 Naples, Florida
Kenneth Kelly November 7, 2013 Naples, Florida
16. Schedule of Rental Information
The Authority worked with Rural Development to remove 276 of these units from the Farm Labor Housing
Program. It is planning to demolish 50 units and rehabilitate the remaining 315 units. The 276 units will be
operated as non - subsidized affordable housing units.
33
Number of
Gross Potential
Unit Size
Units
Rental Rate
Months
Rent
One bedroom unit
66
$ 425
12
$ 336,600
Two bedroom unit
252
451
12
1,363,824
Three bedroom unit
187
477
12
1,070,388
Four bedroom unit
136
499
12
814,368
641
$ 3,585,180
The Authority worked with Rural Development to remove 276 of these units from the Farm Labor Housing
Program. It is planning to demolish 50 units and rehabilitate the remaining 315 units. The 276 units will be
operated as non - subsidized affordable housing units.
33
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
FARM WORKER SUBSIDIZED HOUSING PROGRAM
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 2013 ^
(Continued)
16. Schedule of Rental Information (Continued)
Actual Rental Revenue Percentage Amount
Tenants 57.87% $ 1,006,326
RHA rental assistance subsidy 42.13% 732,714
$ 1,739,040
Note 1- Rental rates were effective October 1, 2008. Management provides for the monthly collection
of rent.
17. Real Estate Taxes - The Authority is a local public body corporate and politic and is tax exempt by
State of Florida, Section 423.
34
MALCOLM JOHNSON & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
P.O. Box 530848
DeBary, Florida 32753 -0848
Phone (386) 668 -6464 Fax (386) 668 -6463
malcolmjohnson(ampinet:net
December 05, 2013
USDA Rural Development Office
420 South State Road 7
Suite #166
Royal Palm Beach, FL 33414
In accordance with the criteria specified in Section 5; Paragraph 4.32 C. of the USDA Rural Development
Handbook (HB -2 -3560) for the year ended September 30, 2013, the borrower must self certify that Collier
County Housing Authority (the Authority) is in compliance with the nine performance standards. The following
is a summary of our compliance with the performance standards.
1. The required accounts are properly maintained and tracked separately. The accounts we maintain are
marked below:
x Operating Account(s) x Security Deposit Account
_ x Tax and Insurance Account x Reserve Account
x Other Accounts: Debt Service
2. The payments from operating account(s) are disclosed and accurately represented.
3. The reserve account(s):
a. is on schedule with the Agency required minimum funding requirements;
b. is maintained in a supervised bank account that requires the Agency's countersignature on all
withdrawals;
c. is on schedule with contributions to the reserve account for the current year with the Agency
required minimum funding; and
d. has no encumbrances on the reserve funds.
4. The tenant security deposits accounts are fully funded and are maintained in separate accounts.
5. The payment. of owner return was: Not Applicable (owner is a government entity)
na paid in the amount of $ -0- for the 2013 fiscal year and was in accordance with the Agency's
requirements OR
na not paid during the reporting year OR
na not.allowable due to our nonprofit status OR
na not allowable due to our nonprofit status. An asset management fee in the amount of $ -0 was
paid for 2013 fiscal year.
35
6. The borrow=er has maintained proper insurance in accordance with the requirements in 7CFR 3560.105.
Coverage maintained for the Authority is as follows:
x Liability Insurance _ Flood Insurance
x Property .insurance _ Earthquake Insurance
x Fidelity Bond x 'Other: Public Officials Liability
7. All financial records are adequate and suitable for examination.
8. There have been no changes in the ownership of the Farm Worker Subsidized Housing Program, other
than those approved by the Agency and identified in the certification. The Board of Commissioners is
active and maintains oversight responsibilities for the project.
9. Exemptions from Real Estate and Income Taxes: The Authority is a public body corporate and politic
pursuant to Chapter 421, Laws of the State of Florida, which is subsidized by the Federal Government.
The Authority is not subject to Federal, State income taxes, or Local property taxes, nor is it required to
file Federal and State income tax returns as apublic body corporate and politic pursuant to Chapter 423;
Laws of the State of Florida.
I certify that the above is true, accurate and is properly supported by documentation kept in our files.
meralda Senata, Executive Director,
Collier County Housing Authority
9
COLLIER COUNTY HOUSING AUTHORITY
-- Immokalee, Florida
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
— FOR THE YEAR ENDED SEPTEMBER 30, 2013
Federal Grantor:
Pass Through
Federal
CFDA Number Program Title Entity
Expenditures
U.S. Department of Agriculture
Farm Labor Cluster
_ 10.427 Rural Rental Assistance Payments Program NA
$ 732,714
10.415 Rural Rental Housing Debt NA
1,897,000
Total U.S. Department of Agriculture
2,629,714
U.S. Department of Housing and Urban Development
Collier County,
— 14.239 HOME Partnership - Tenant Based Rental Assistance Florida
$ 2,011
Housing Choice Voucher Cluster
_ 14.871 Housing Choice Voucher Program NA
3,280,042
14.871 Housing Choice Voucher -Pass dim Other PHA's
307,624
Total Housing Choice Voucher Cluster
3,587,666
Total Federal Awards Expenditures
$ 6,219,391
_ Notes to the Schedule of Expenditures of Federal Awards
A. Basis of Accounting
This schedule is prepared on the accrual basis of accounting.
B. The information in this schedule is presented in accordance with the requirements of OMB
Circular A -133,
"Audits of States, Local Governments and Non - Profit Organizations ".
C. Reconciliation of Total Federal Awards Expenditures to Financial Data Schedule
FDS line 706
FDS line 708
FDS line 715
FDS line 343 & 351
HUD PHA Grants
Other government grants
HCVP other income
Rural rental loan debt
37
$ 3,280,042
734,725
307,624
1,897,000
$ 6,219,391
SINGLE AUDIT SECTION
r
MALCOLM JOHNSON & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
P.O. Box 530848
DeBary, Florida 32753 -0848
Phone (386) 668 -6464 Fax (386) 668 -6463
malcolmjohnson@mpinet.net
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
-" AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
Board of Commissioners HUD, Miami Area Office
Collier County Housing Authority Office of Public Housing
Immokalee, Florida 909 S. E. First Avenue, Room 500
Miami, Florida 33131 -3028
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 basic financial statements of Collier County Housing Authority (the Authority),
which include the statement of net position as of September 30, 2013, and the related statements of revenue, expenses
and changes in net position, cash flows for the year then ended, and the related notes to the financial statements and
have issued our report thereon December 20, 2013.
Internal Control Over Financial Reporting
In planning and performing our audit of the basic financial statements, we considered the Authority'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 opinion on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness
of the Authority'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 combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the Authority's financial statements will not be
prevented, or detected and corrected on a timely basis. 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 was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control, that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control 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 the Authority's basic financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
38
We noted certain matters that we reported to management of the Authority in a separate letter dated December 20,
2013.
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 Authority'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 Authority's internal control and compliance. Accordingly, this communication is not suitable for
any other purpose.
DeBary, Florida
December 20, 2013
6M
-Q* sk. 44yowl,
9 A a
Malcolm Johnson & Company, P.A.
Certified Public Accountants
MALCOLM JOHNSON & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
P.O. Box 530848
DeBary, Florida 32753 -0848
Phone (386) 668 -6464 Fax (386) 668 -6463
malcolmjohnson@mpinet.net
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS
THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON
EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133
Board of Commissioners HUD, Miami Area Office
Collier County Housing Authority Office of Public Housing
Immokalee, Florida 909 S. E. First Avenue, Room 500
Miami, Florida 33131 -3028
Report on Compliance for Each Major Program
We have audited Collier County Housing Authority's (the Authority) compliance with the types of compliance
requirements described in the OMB Circular A -133 Compliance Supplement, that could have a direct and material
effect on each of the Authority's major federal programs for the year ended September 30, 2013. The Authority'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 the Authority'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 OMB Circular A -133, Audits of States, Local Governments,
and Non - Profit Organizations (OMB Circular A -133). Those standards and OMB Circular A -133 require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance
requirements referred to above that could have a material effect on a major federal program occurred. An audit
.... includes examining, on a test basis, evidence about the Authority's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances.
_ We believe that our audit provides a reasonable basis for our opinion on compliance for each major program.
However, our audit does not provide a legal determination of the Authority's compliance.
Opinion on Each Major Program
In our opinion, the Authority complied, in all material respects, with the compliance requirements referred to above
that could have a direct and material effect on each of its major Federal programs for the year ended September 30,
2013.
40
Report on Internal Control Over Compliance
Management of the Authority 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 the Authority's internal control over compliance with the types of requirements that
could have a direct and material effect on each major program to determine the auditing procedures that are
appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with the OMB Circular A -133,
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 the Authority's internal control over compliance.
A deficiency in internal control over compliance 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, noncompliance with a type of compliance requirements 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 compliance
requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal
control over compliance is a deficiency, or 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 the 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, as defined above. 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 our testing based on the requirements of OMB Circular A -133.
Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required By OMB Circular A -133
We have audited the financial statements of the Authority as of and for the year ended September 30, 2013 and
have issued our report thereon dated December 20, 2013, which contained an unmodified opinion on those financial
statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by OMB A -133 and is not a required part of the financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and other
records used to prepare the financial statements. The information has been subjected to the auditing procedures
applied in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of expenditure of
federal awards is fairly stated in all material respects in relation to the financial statements as a whole.
DeBary, Florida
December 20, 2013
41
MalcJ4h on & Co pa y, P.A.
Certified Public Accountants
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
SECTION I - SUMMARY OF AUDITORS' RESULTS
Basic Financial Statements
Type of auditors' report issued:
Unqualified
— Internal control over financial reporting:
Material weakness(es) identified?
No
Significant deficiency(s) identified that are not considered to be material
weaknesses?
None reported
Noncompliance material to basic financial statements noted?
No ,
Federal Awards
Internal control over major programs:
— – Material weakness(es) identified?
No
Significant deficiency(s) identified that are not considered to be material
— weakness(es)?
None reported
Type of auditors' report issued on compliance for major programs:
Unqualified
Any audit findings disclosed that are required to be reported in accordance with
section 510(a) of OMB Circular A -133?
No
Identification of major programs:
CFDA Number Name of Federal Program or Cluster
— 14.871 Housing Choice Vouchers
Dollar threshold used to distinguish between type A and type B programs:
$300,000
Auditee qualified as low -risk auditee?
Yes
42
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(Continued)
SECTION H — BASIC FINANCIAL STATEMENT FINDINGS
There were no Financial Statement Findings.
SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There were no Federal Award Findings and Questioned Costs.
43
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
There were no Prior Audit Findings.
El El!