CCHA 2017 Annual Filing Notice March 07, 2017
Dwight E. Brock
Clerk of the Circuit Court
Finance Department
3299 Tamiami Trail East
Suite 400
Naples, Fl. 34112
Dear Mr. Brock:
It is our understanding the following information should be reported to the County Clerk
of Courts:
1. Any changes in the registered agent or office.
2. The housing authority's public meeting schedule which are held on the fourth
Tuesday of each month.
3. Public facilities report, if applicable(initial, annual notice of any changes and
updated reports). No Changes in Public Facilities Report—Not Attached.
4. Upon request, the housing authority's budget.
5. Copy of audit for September 30, 2016.
Therefore, we are providing you with a copy of our annual filing notice for the registered
agent or office and a copy of the housing authority's meeting schedule for fiscal year
09/30/2016. There has been no change in public facilities.
1 hope this satisfies our reporting requirements to Collier County Clerk of Courts. If you
have any questions,please contact me directly at(239) 657-3649.
Sincerely,
rolgoir
Oscar Hentschel
Executive Director
OH/lvs
Enclosures.
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HottsingAtitbority
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Collier County Housing Authority • 1800 Farm Worker Way • Immokalee,Florida 34142 • (239)657-3649 • FAX(239)657-7232
Schedule of Board Meetings
For
Collier County Housing Authority
2016-2017
October 25,2016
November 2016 No Meeting Held
December 6, 2016
January 24, 2017
February 28, 2017
March 28, 2017
April 25,2017
May 23, 2017
June 27, 2017
July 25,2017
August 22,2017
September 26,2017
Florida Department of Economic Opportunity, Special District Accountability Program
FY 2016/2017 Special District Fee Invoice and Update Form
Required by Sections 189.064 and 189.018,Florida Statutes,and Chapter 73C-24,Florida Administrative Code
yore No 38163 Date Invoiced: 10/03/2016
Annual Fee: $175.00 Late Fee:$0.00 Received $000 Total Due,Postmarked by 12/05/2016: $175.00
STEP 1: Review the following information, make changes directly on the form,and sign and date:
t.Special District's Name,Registered Agent's Name,and Registered Office Address:
iiilU(i - jnl l FLORIDA DEPARTMENT•f
ECONOMIC OPPORTUNITY
Collier County Housing Authority
Mr. Oscar Hentschel `' c$2-en1d0PP�
1800 Farm Worker Way
lmmokalee, FI 34142
2.Telephone: (239)657-3649
3.Fax: (239)657-7232 _f, t/�'/ ` D
4.Email: •,Qheatse cchaan.org b/ $M l S e�- Q c t 'l
5.Status: Independent --
6. Governing Body: Governor Appoints
7.Website Address: Not on file-please provide.
3.County(les): Collier
9.Function(s): Housing Authority
10. Boundary Map on File: 05/27/1999
11.Creation Document on File: 05/27/1999
12.Date Established: 07/12/1966
13, Creation Method: General Law
14. Local Governing Authority: Collier County
15. Creation Document(s): Section 421.27, Florida Statutes; Need declared by County Resolution Dated 7/12/66
16. Statutory Authority: Chapter 421,Part I,Florida Statutes
17.Authority to Issue Bonds: Yes
18. Revenue Source(s): Federal
19.Most Recent Update: 12/18/2015 (cu'r3� 1(oy
do hereby certify that the information above(changes • -• secessary)is accurate and complete as of thisdate.
Registered Agent's Signature:
�` :� Date 4.f/Iv/ld
STEP 2: Pay the annual fee or certify eligibility for the ero fee:
a. Pay the Annual Fee:Pay the annual fee online by following the instructions at www.Floridajobs.org/SpecialDistrictFee or by check
payable to the Department of Economic Opportunity.
b.Or,Certify Eligibility for the Zero Fee: By initialing each of the following items,I,the above signed registered agent,do hereby
certify that to the best of my knowledge and belief,ALL of the following statements contained herein and on any attachments
hereto are true,correct,complete,and made in good faith as of this date. I understand that any information I give may be verified.
1. This special district and its Certified Public Accountant determined the special district is not a component unit of a local
general-purpose government.
2 This special district is in compliance with the reporting requirements of the Department of Financial Services.
3 This special district reported$3,000 or less in annual revenues to the Department of Financial Services on its Fiscal Year
2014/2015 Annual Financial Report(if created since then attach an •ncome statement verifying$3,000 or less in revenues).
iepartment Use Only Approved: Denied: Reason: _......______...........
TEP 3: Make a copy of this form for your records.
TEP 4: Mail this form and payment(if paying by check)to the Department of Economic Opportunity, Office of Financial Management,
107 E. Madison Street, MSC 120,Tallahassee,FL 32399-4124 Direct any questions to(850)717-8430
_...® _ .___...... •an1Y�n311eu-a1CLdp.Gtaa-f�tu,e.�c+.ww;�ix.�t�a9+1-1�.
First 1 Bank CHECK NO.
Collier County Housing Authority 1300 North 15th Street Ste#2 000405
COCC Operating Account Immokalee, FL 34142
1800 Farm Worker Way 377-670/63
Immokalee FL 34142 DATE
239657 3649 11/9/2016
( AMOUNT
IPAY: One Hundred Seventy-Five dollars and 001100' $175.00
Void after 90 days
PAY
.1 TO Dept of Economic Opportunity 415 IN `'_"'
....rS••n-�A
;THE Office of Financial Management - fa Executive Dir ct.r
ORDER 107 E. Madison St. MSC-120 nip „ ,
IOF Tallahassee, FL 32399-4124 /
Memo: IOIP °eet €f,
0'000405111 1:0670037 ? 3i: 2000L0L, 5060
AMOUNT PAID ACCOUNT BANK ACCOUNT DATE CHECK NO.
$175.00 2000104506 11/09/2016 000405
Vendor # and Name -> 100881 Dept.of Economic Opportunity
Invoice No. Date Description Amount
38163 10/03/2016 Inv. #38163. Fiscal Year 2016/2017 Annual Special District Fee $175.00
AMOUNT PAID ACCOUNT BANK ACCOUNT DATE CHECK NO.
$175.00 2000104506 11/09/2016 000405
Vendor # and Nrmr a 100881 Dept.of Economic Opportunity
'Invoice No. Date Description Amount
38163 10/03/2016 Inv. #38163. Fiscal Year 2016/2017 Annual Special District Fee $175.00
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414 Barton)
1 -- ,--- Gonzalez
3 &Myers, P.A.
. A Certified Public Accountants
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
AUDIT REPORT
For the Year Ended September 30, 2016
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Table of Contents
September 30, 2016
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Page
Independent Auditor's Report 1-2
Management's Discussion and Analysis (MD&A) 3-10
BASIC FINANCIAL STATEMENTS
Statement of Net Position - Proprietary Fund Type 11
Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Fund Type 12
Statement of Cash Flows - Proprietary Fund Type 13
Notes to Financial Statements 14-30
SUPPLEMENTAL INFORMATION
Combining Schedule of Assets, Liabilities and Net Position 31
Combining Schedule of Revenues, Expenses and Changes in Fund Net Position 32
Farm Worker Subsidized Housing Program 33-36
Certificate of Borrower 37-38
SINGLE AUDIT SECTION
Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 39-40
Independent Auditor's Report on Compliance for each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance 41-43
Schedule of Findings and Questioned Costs 44-47
Summary Schedule of Prior Year Findings 48-49
Corrective Action Plan 50-51
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 52
MANAGEMENT LETTER 53-54
FINANCIAL DATA SCHEDULE 55-60
Barton,
' 13137- 66th Street,Largo,FL 33773
air Gonzalez Phone:(727)344-1040 Fax:(727) 533-8483
& Myers, P.A. www.bartoncpas.com
* Certified Public Accountan
Independent Auditor's Report
Board of Commissioners
Collier County Housing Authority
Immokalee, Florida
We have audited the accompanying financial statements of the Collier County Housing Authority("Authority")as
of and for the year ended September 30, 2016, and the related notes to the financial statements, which
collectively comprise the Authority's basic financial statements as listed in the table of contents.
I Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements.The procedures selected depend on the auditor's judgment,including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control.Accordingly,we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Collier County Housing Authority,as of September 30,2016,and the changes in financial position
and cash flows for the year then ended in accordance 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 3 through 10 be presented to supplement the basic financial statements.
0
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational,economic,or historical context.We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted
in the United States of America,which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries, the
basic financial statements,and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
, Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
E comprise the Collier County Housing Authority's basic financial statements. The accompanying Financial Data
Schedule is presented for additional analysis and is not a required part of the financial statements.The schedule
of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S.Code
of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance), and is also not a required part of the basic financial
statements.
This other 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. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures,including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United States of
America.In our opinion,the Financial Data Schedule and the schedule of expenditures of federal awards are fairly
stated in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated February 4,2017,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.
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Barton, Gonzalez&Myers, P.,.
Certified Public Accountants
February 4, 2017
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COLLIER COUNTY HOUSING AUTHORITY
] Immokalee, Florida
Management Discussion and Analysis
September 30, 2016
Management's Discussion and Analysis (MD&A) is an element of the reporting model adopted by the
Governmental Accounting Standards Board (GASB) in their Statement No. 34 Basic Financial
Statements — and Management's Discussion and Analysis — for State and Local Governments issued
June 1999.
Our discussion and analysis of the financial performance for the Collier County Housing Authority
provides an overview of the financial activities for the fiscal year ended September 30, 2016. Please
read the MD&A in conjunction with the Housing Authority's financial statements.
Financial Highlights
3 • Assets:
As of September 30, 2016, total assets were $15,167,647 as compared to $11,392,300, as of
September 30, 2015, an increase of $3,775,347. Current assets increased $1,014,717 and
capital assets increased $2,760,630.
• Liabilities:
Total liabilities increased $3,393,269 due to increases in current liabilities of $1,088,969 and
noncurrent liabilities of$2,304,300.
• Revenues:
In 2016, total revenue increased $427,822, as compared to 2015, due to increases in tenant and
Federal Grants & Subsidy revenues.
• Expenses:
Total expenses increased $67,268 due mainly to increases in Housing Assistance Payments
(HAP) expense.
Overview of the Financial Statements
1. This annual report includes this Management Discussion and Analysis report, the Basic Financial
Statements, the Notes to the Financial Statements and the Financial Data Schedule (FDS) (as
• referenced in the section of Supplemental Information Required by HUD). The financial statements are
• presented as fund level financial statements because the Housing Authority only has proprietary funds.
The financial statements report information using accounting methods similar to those used by private
I sector companies. These statements offer short-term and long-term financial information about the
Housing Authority's activities. The Statement of Net Position includes assets and liabilities plus
provides information about the nature and amounts of investments in resources (assets) and obligations
to the Housing Authority's creditors (liabilities). It also provides the basis for evaluating the capital
structure to include assessing liquidity and financial flexibility.
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COLLIER COUNTY HOUSING AUTHORITY
ii Immokalee, Florida
Management Discussion and Analysis
September 30, 2016
For accounting purposes, the Housing Authority is classified as an enterprise fund. Enterprise funds
account for activities similar to those found in the private business sector where the determination of net
income is necessary or useful to sound financial administration. Enterprise funds are reported using the
full accrual method of accounting in which all assets and all liabilities associated with the operation of
these funds are included on the balance sheet. The focus of enterprise funds is on income i
3 measurement which, together with the maintenance of equity, is an important financial indicator. 1
All of the current year's revenues and expenses are accounted for in the Statement of Revenues,
Expenses, and Changes in Fund Net Position. This statement measures the success of operations over
the past year and can be used to determine whether the Housing Authority has successfully recovered
all its costs through its user fees and other charges, profitability and credit worthiness.
The Statement of Cash Flows reports cash receipts, cash payments, and net changes in cash resulting
from operating, investing, and financing activities plus provides answers to such questions as where did
cash come from, what was cash used for, and what was the change in the cash balance during the
reporting period.
The notes to the financial statements provide additional information that is essential to a full
understanding of the data provided in the basic financial statements.
The section Supplemental Information Required by HUD contains the Financial Data Schedule (FDS).
HUD has established Uniform Financial Reporting Standards that require the Housing Authority to
submit financial information electronically to HUD using the FDS format. This financial information has
been electronically transmitted to the Real Estate Assessment Center (REAC) for the year-ended
jSeptember 30, 2016.
Financial Analysis
One of the most important questions asked about the Authority's finances; "Is the Housing Authority as a
whole better off, or worse off, as a result of the achievements of the reported fiscal year?" The
information presented in this Management's Discussion and Analysis is to assist the reader in answering
this question.
The basic financial statements are the Statement of Net Position and the Statement of Revenues,
Expenses, and Changes in Fund Net Position. The Statement of Net Position provides a summary of
assets and liabilities as of the close of business on September 30, 2016. The Statement of Revenues,
Expenses, and Changes in Fund Net Position summarize the revenues, and sources of those revenues,
generated and the expenses incurred in operating the Housing Authority for the year ended September
30, 2016.
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COLLIER COUNTY HOUSING AUTHORITY
3 Immokalee, Florida
Management Discussion and Analysis
September 30, 2016
��
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Collier County Housing Authority's s primary programs were a Section 8 Housing Choice Voucher
program that provides rental assistance to qualified individuals living in private housing, a Rural Rental
Assistance Payments program which provides assistance to low-income families in rural areas, and a
business activities program. The following analysis focuses on the net position and the change in net
position as a whole and not the individual programs.
3 Net Position
September 30,
3 % of
2016 2015 Change Change
] Current Assets $ 4,529,569 $ 3,514,852 $ 1,014,717 28.87%
Capital Assets, Net 10,638,078 7,877,448 2,760,630 35.04%
Total Assets $ 15,167,647 $ 11,392,300 $ 3,775,347 33.14%
Current Liabilities 1,597,845 508,876 1,088,969 213.99%
Noncurrent Liabilities 4,433,089 2,128,789
2,304,300 108.24%
Total Liabilities $ 6,030,934 $ 2,637,665 $ 3,393,269 128.65%
Net Position:
Investment in Capital Assets 6,662,935 6,259,448 403,487 6.45%
Restricted Net Position 2,589,094 2,224,257 364,837 16.40%
Unrestricted Net Position (115,316) 270,930 (386,246) -142.56%
Total Net Position $ 9,136,713 $ 8,754,635 $ 382,078 4.36%
Assets:
Current assets are resources that are reasonably expected, based on the plans and intentions of the
Authority, to be converted into cash or its equivalent during the current operating cycle.
I As of September 30, 2016, current assets were $4,529,569 as compared to $3,514,852, as of
September 30, 2015, an increase of$1,014,717. The change consisted of increases in total receivables
(Requisition 10 construction in progress (CIP), CIP retainage, and bonds) of $595,106, cash/cash
equivalents of $388,658, and prepaid expenses (insurance) of $42,190 with decreases in inventories of
$11,237.
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2016
Liabilities:
Current liabilities are current debts that are owed by the Authority and due within 12 months. It is
expected that current liabilities will consume current financial resources to satisfy debt.
As of September 30, 2016, current liabilities were $1,597,845 as compared to $508,876, as of
September 30, 2015, an increase of $1,088,969. The change consisted of other current liabilities
(construction in progress payables) of $861,835, current portion of operating borrowings of $182,921,
1 unearned revenue (tenant prepaid rents) of $65,469, tenant security deposits of $15,385, accrued
wage/payroll taxes payable of $7,006, accrued interest payable of $4,105, current portion of long-term
debt of $3,000, and $355 in Section 8 port-in overpayments with decreases in vendor payables of
$38,633 and accrued compensated absences (paid leave) of$12,474.
Noncurrent liabilities are debts that are owed but not due within 12 months. It is not expected that these
liabilities will consume the Authority's current financial resources to satisfy the debt.
Noncurrent liabilities consisted of $3,866,143 in long-term debt, $502,321 in operational borrowings (for
the business activities program), $32,295 in other noncurrent liabilities (Section 8 FSS escrow accounts)
and $32,330 in noncurrent accrued compensated absences. Noncurrent accrued compensated
absences are liabilities for wages such as vacation and benefits earned but not yet taken.
Net Position:
As of September 30, 2016, the Housing Authority had $9,136,713 invested in total net position.
Unrestricted net position's balance was negative $115,316. Restricted net position of $2,502,784 was
available for the Rural Rental Assistance Payments and $86,310 was available for Section 8 Housing
Assistance Payments (HAP). The remainder of $6,662,935 represents the investment in capital assets
of land, buildings, furnishings, leasehold improvements, equipment, and construction in progress.
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2016
] — — — 5 t.m.m.,,,,,,...k,
Capital Assets
(Net of Accumulated Depreciation)
September 30,
% of
2016 2015 Change Change
Land $ 2,568,713 $ 2,568,713 $ 0 0.00%
Infrastructure 4,677,708 4,780,074 (102,366) -2.14%
Buildings 25,188,208 24,931,715 256,493 1.03%
jFurniture & Equipment- Dwell 529,057 449,807 79,250 17.62%
Furniture & Equipment- Admin 1,711,308 1,598,942 112,366 7.03%
Construction in Progress 3,163,003 _®410,228 2,752,775 671.04%
a;, Subtotal 37,837,997 34,739,479 3,098,518 8.92%
Accumulated Depreciation (27,199,919 j26,862,031) (337,888) 1.26%
jNet Capital Assets $ 10,638,078 $ 7,877,448 $ 2,760,630 35.04%
Capital Assets:
Capital assets are long-term tangible assets obtained as a result of past transactions, events, or
jcircumstances and include buildings, equipment, and improvements to buildings and land.
Net capital assets increased $2,760,630 due to capital purchases exceeding annual depreciation.
During the year $256,493 was capitalized into building improvements. Dwelling equipment increased
$79,250 due mainly to purchases of refrigerators and stoves. Administrative equipment increased
$112,366 due to purchases of clothes washers, and clothes dryers (costing $10,000) plus $102,366 was
reclassified from infrastructure to administrative equipment.
Debt:
4. The Authority's long-term debt consisted of $3,975,143 in permanent notes for the Rural Rental
Assistance Payments (Capital projects/mortgages) and $746,838 in notes payables for the business
activities program (Operational borrowings). In total, the current portion of notes payables was
i $353,517 which was reported as current liabilities. In total, the noncurrent portion was $4,368,464
which was reported as noncurrent liabilities.
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
ElSeptember 30, 2016
a _ .
Changes in Net Position
9 For the Year Ended September 30
% of
2016 2015 Change Change
Revenue:
IITenant Revenue $ 1,901,426 $ 1,547,684 $ 353,742 22.86%
Federal Grants & Subsidy 4,290,880 4,116,044 174,836 4.25%
Investment 5,869 10,008 (4,139) -41.36%
Other Income 333,556 419,614 (86,058) -20.51%
Gain/Loss on Sale of Capital -
Assets 0 10,559 110,55%,, 100.00%
Total Revenue 6,531,731 6,103,909 427,822 -7-.0T%
Expenses:
Administrative 1,001,013 880,481 120,532 13.69%
Tenant Services 32,009 55,861 (23,852) -42.70%
Utilities 119,935 104,111 15,824 15.20%
_. Routine Maintenance 775,505 560,950 214,555 38.25%
Protective Services 21,624 88,381 (66,757) -75.53%
General 375,878 360,306 15,572 4.32%
Interest 39,237 33,849 5,388 15.92%
Housing Assistance Payments 3,434,689 3,169,311 265,378 8.37%
Casualty Losses 11,875 0 11,875 100.00%
Depreciation 658,540 1,149,787 (491,247) -42.73%
Total Operating Expenses 6,470,305 6,403,037 67,268 1.05%
Increase (Decrease) in Net -
Position $ 61,426 $ (299,128) $ 360,554 120.54%
Revenues:
The Authority has two basic sources of revenues. Rents and other tenant charges plus funds received
from the Department of Housing and Urban Development (HUD) in the form of operating subsidies and
capital improvement grants.
Tenant revenue increased $353,742 from $1,547,684 in 2015 to $1,901,426 in 2016. Tenant rent
revenue increased $339,270 due to increases in average monthly rental rates and more units available
for leasing. Other revenue increased $14,472 due to increases in tenant charges (i.e. damages, late
fees, and maintenance).
8
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2016
In 2016, Collier County Housing Authority's Housing Assistance Payments revenue, and Administrative
Fees revenue increased $498,492 while Capital Grant revenue (for the Community Development Block
Grant) decreased $246,403 and other government grants (for the Rural Rental Assistance Payments
program) decreased $77,253 that resulted in a net increase of $174,836. In 2015, grant revenues for
the Community Development Block Grant were depleted.
Investment income decreased $4,139 while other income decreased $86,058 (due to donations and
Section 8 portability fees received in 2015). Changes in investment income are
generally governed by
the amount of monies invested and the rates of returns on those investments.
The Authority reported $10,559 in gains on the sale of capital assets in 2015; as compared to no gains
or losses in 2016.
Expenses:
Administrative expenses increased $120,532 due mainly to increases in other administrative expense.
Tenant services expense decreased $23,852 primarily because fewer services were provided related to
the blended component unit program in 2016 as compared to 2015.
Utilities increased $15,824 due to increases in electricity of $10,556, water of$3,420, and natural gas of
$1,848.
Routine maintenance expense increased $214,555 from $560,950 in 2015 to $775,505 in 2016. Labor
increased $85,441, material expenses increased $50,048, maintenance contract costs increased
$36,003, and employee benefits increased $43,063 due mainly to more general upkeep and
maintenance repairs.
Protective services decreased $66,757 due to decreases in labor, employee benefits, and other contract
costs.
General expenses increased $15,572 due to increases in tenant bad-debt expense, other general
expense, and payment in lieu of taxes.
Interest expense (for the Authority's long-term debt) increased $5,388 from $33,849 to $39,237.
Housing Assistance Payments (HAP) expense increased $265,378 due to increases in average costs
per unit leased.
In 2016, the Authority reported $11,875 in casualty losses as compared to no casualty losses, in 2015.
1 9
COLLIER COUNTY HOUSING AUTHORITY
|nnmnOhm|ee. Florida�
Management Discussion and Analysis
� September 30, 2016
__, _--`-_-_ _____----_-~~___ _ _
Q�
Depreciation expense decreased $491.247. from $1.149.787 to $858.540. due to prior period
adjustments.
13
Economic Factors
1 The Housing Authority is primarily dependent upon rental income and USDA and HUD for the funding of
operations. The entity is affected by both federal budgetary decisions and by local economic conditions.
•
�
Contacting the Housing Authority's Financial Management
IOur financial report is designed to provide our citizens, taxoayeru, and creditors with a general overview
of the Housing Authority's finances and to show accountability for the money it receives. If you have
questions about this report or wish to request additional financial information contact Oscar Hentschel,
�, Executive Director, Collier County Housing Authority, 1800 Farm Worker Way, lmmokalee, FL. 34142,
telephone number (239)057'3849.
1
� 10
El
Collier County Housing Authority
Immokalee,Florida
Statement of Net Position Proprietary Fund Type
September 30,2016
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current Assets:
Cash and cash equivalents $ 830,514
Cash and cash equivalents-restricted 2,775,896
Tenants receivable,net
of allowance for doubtful accounts of$34,250 60,009
Accounts receivable government 663,225
Accounts receivable-other 17,583
Accrued interest receivable 1 132
Prepaid expenses 149,078
Supplies inventory,net
of allowance for obsolescence of$3,458 32,132
Total current assets 4,529,569
Noncurrent Assets:
Capital Assets
Nondepreciable capital assets 2,568,713
Depreciable capital assets, net 4,906,362
Construction in progress 3,163,003
Total capital assets 10,638,078
Total noncurrent assets 10,638,078
Deferred Outflows of Resources -
Total assets and deferred outflows of resources $ 15,167,647
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,AND NET POSITION
Current Liabilities:
Accounts payable and accrued liabilities $ 974,080
Tenant security deposits 154,507
Accrued compensated absences 3,592
Accrued interest payable 8,604
Unearned revenue 103,545
Current maturities of notes payable 244,517
Current maturities of bonds payable 109,000
Total current liabilities 1,597,845
Noncurrent Liabilities:
Accrued compensated absences 32,330
Other liabilities(FSS escrow) 32,295
Notes payable 502,321
Bonds payable 3,866,143
Total noncurrent liabilities 4,433,089
Total liabilities 6,030,934
Deferred Inflows of Resources -
Net Position:
Net investment in capital assets 6,662,935
Restricted net position 2,589,094
3
Unrestricted net position (115,316)
Total net position 9,136,713
Total liabilities,deferred inflows of resources,and net position $ 15,167,647
See auditor's report.
The notes to the financial statements are an integral part of this statement.
11
.3
Collier County Housing Authority
Immokalee, Florida
t
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Fund Type
For the Year Ended September 30, 2016
Operating revenues:
Tenant rental revenue (net) $ 1,901,426
] HUD operating grants 3,683,238
Other government grants 607,642
Other revenue 333,556
Total operating revenues 6,525,862
Operating expenses:
Administration 1,001,013
Tenant services 32,009
Utilities 119,935
Ordinary maintenance 775 505
Protective services 21,624
General expenses 375,878
Casualty losses 11,875
Housing assistance payments 3,434,689
Depreciation 658,540
Total operating expenses 6,431,068
Operating income 94,794
Nonoperating revenue and expense:
Interest expense (39,237)
Interest income 5,869
Net nonoperating expense (33,368)
Net income 61,426
Contributions - capital grants
-
Increase in net position 61,426
Net position, beginning of year (restated) 9,075,287
Net position, end of year $ 9,136,713
1
See auditors report.
The notes to the financial statements are an integral part of this statement.
12
Collier County Housing Authority
Immokalee, Florida
Statement of Cash Flows - Proprietary Fund Type
For the Year Ended September 30, 2016
Cash flows provided from operating activities:
Cash received from tenants and others $ 2,295,398
Cash paid for goods and services (1,594,344)
Cash paid to employees for services (801,933)
]r, Cash paid for housing assistance payments (3,434,689)
HUD PHA grants received 3,683,238
Other government grants 631,741
3Net cash provided from operating activities 779,411
Cash flows used by capital and related financing activities:
Acquisition of capital assets (2,236,683)
Payments of interest on notes and bonds (35,132)
Payments of principal on notes and bonds (168,485)
Proceeds from notes and bonds payable 2,044,810
Net cash used by capital and related financing activities (395,490)
Cash flows provided from investing activities:
Interest on investments 4,737
Net cash flows provided from investing activities 4,737
Net increase in cash and cash equivalents 388,658
Cash and cash equivalents, beginning of year 3,217,752
-.] Cash and cash equivalents, end of year $ 3,606,410
Reconciliation of operating income to net
cash provided from operating activities:
Operating income: $ 94,794
Adjustments to reconcile operating income to
net cash provided from operating activities:
Depreciation 658,540
Decrease in tenants, accounts receivable -government,
accounts receivable-other 7,279
Increase in prepaid expenses (42,190)
Decrease in supplies inventory 11,237
Increase in accrued compensated absences 3,787
Increase in unearned revenue 65,469
Decrease in accounts payable, accrued liabilities
and security deposits (15,887)
Decrease in other liabilities (3,618)
Total adjustments 684,617
Net cash provided from operating activities $ 779,411
Non-cash activity
1. Accounts receivable and proceeds from bonds payable are net of$601,253 from the USDA for
bond proceeds.
2. Accounts payable and acquisition of capital assets are net of$861,835 due to a contractor for
construction in progress.
See auditor's report.
The notes to the financial statements are an integral part of this statement.
13
1
3
3 COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2016
] ...,....._ ___ -
NOTE 1: Summary of Significant Accounting Policies and Organization:
,
A. 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
projects 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).
B. 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
I 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
1 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.
Blended Component Unit:
CCHA Land Development Corporation - this component unit has been blended for financial
statement presentation.
CHA Management Consulting Corporation - This component unit has been blended for financial
statement presentation.
14
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2016
2 _ _______
NOTE 1: Summary of Significant Accounting Policies: (Continued)
Reporting Entity: (Continued)
] Blended Component Unit: (Continued)
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
I] corporation organized, incorporated and controlled, bythe Collier CountyHousingAuthorityfor the
P 9 P
advancement of affordable housing.
n Accounting: In accordance with uniform financial reporting standards
C. Basis of Presentation andp g
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 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.
D. 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.
15
] COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2016
NOTE 1: Summary of Significant Accounting Policies: (Continued)
E. 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.
F. Interprogram Receivables and Payables: lnterprogram receivables/payables,when present,are all
current, and are the result of the use of the Rural Housing Services 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.
G. 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.
H. 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.
I. Prepaid Items: Payments made to vendors for goods or services that will benefit periods beyond the
fiscal year end are recorded as prepaid items.
J. 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.
K. Fair Value of Financial Instruments:The carrying amount of the Authority's financial instruments at
September 30, 2016 including cash,investments,accounts receivable,and accounts payable closely
approximates fair value.
]
16
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2016
i _ ,, _
NOTE 1: Summary of Significant Accounting Policies: (Continued)
L. Capital Assets:
1. 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.
2. 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
xi3. 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
1 accumulated depreciation account are relieved, and any gain or loss is included in
operations.
M. 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.
N. 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.
17
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30,2016
NOTE 1: Summary of Significant Accounting Policies: (Continued)
O. 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.
P. 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.
O. 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.
R. 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 positions are
available.
S. 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.
NOTE 2: 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.
A. 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.
18
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30,2016
NOTE 2: Deposits and Investments: (Continued)
B. Risk Disclosures
1. 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, 2016,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.
2. 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.
C. Deposit and Investment Risks
The Authority held the following deposits and investments (there are no investments) at September
30, 2016.
Carrying
Deposits: Value
Demand deposits $ 3,406,410
Time deposits 200.000
$ 3,606,410
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 30, 2016, the Authority was not exposed to custodial credit as defined above.
19
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
3 Notes to Financial Statements
September 30,2016
NOTE 2: Deposits and Investments: (Continued)
D. Deposit and Investment Risks (Continued)
3 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 1.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.
There are no investments as of September 30, 2016.
Concentration of Investment Credit Risk: Exposure to concentration of credit risk is considered to
exist when investments in anyone 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, 2016, the Authority had no concentration of credit risk as defined above.
NOTE 3: Receivables
Tenant Receivables
Dwelling rents (net of allowance for doubtful accounts of$33,812) $ 45,527
Fraud receivables (net of allowance for doubtful accounts of$438) 14,482
$ 60,009
Due from Other Governments
Rural Rental Assistance (September 30, 2016 allocation) $ 59,803
Receivable from USDA on bond proceeds 601,253
ROSS program 2.169
$663,225
20
I
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2016
NOTE 4: Interprogram Receivables and Payables
Business
USDA Activities HCV ROSS Total
A/R- USDA $ - $ 1,749,274 $ - $ - $1,749,274
A/P- Business Activities (1,749,274) - - - (1,749,274)
A/R- HCV - - - 8,996 8,996
NP- Ross - - (8,996) - (8,996)
$(1,749,274) $ 1,749,274 $ (8,996) $ 8,996 $ -
Intercompany Receivable $ 1,749,274 $ - $ 8,996 $ - $1,758,270
Intercompany Payable - (1,749,274) - (8,996) (1,758,270)
$ 1,749,274 _ $(.1,749274) $ 8,996 $ (8,996) $ -
All interprogram receivables and payables have been eliminated on the financial statements.
NOTE 5: Prepaid Expense
Prepaid insurance at September 30, 2016 was 149,078.
NOTE 6: Capital Assets
The capital assets (at cost)of the Collier County Housing Authority at September 30,2016 consisted of
the following:
Revised
Balance at Prior Period Balance at Balance at
Sept.30,2015 Adjustment Sept.30,2015 Additions Deletions Tram fern Sept.30,2016
Nondepreciable capital assets:
Land $ 2,568,713 - 2,568,713 $ • $ - $ - $ 2,568,713
Construction In progress 410,228 - 410,228 2,752,775 - - 3,163,003
2,978,941 - 2,978,941 2,752,775 - 5,731,716
Depreciable capital assets
Buildings and improvements 29,711,789 - 29,711,789 256,493 - (102,366) 29,865,916
Furniture,equipment,vehicles 2,0413,749 - 2,048,749 89,250 - 102,366 2,240,365
31,760,538 31,760,538 345,743 - 32,106,281
Accumulated Deprecation:
Buildings and;mprovements (25,012,937) 320,652 (24,692,285) (529,057) - - (25,221,342)
Furniture,equipment,vehicles (1,849,094) - (1,849,094) (129,483) - - (1,978,577)
(26,662,031) 320,652 (26,541,379) (658,540) • - - (27,199,919)
Total Capital4sets,net $ 7,877,448 320652 8,198,100 $ 2,439978 $ • $ - $ 10638,08
a As discussed in Note 11, a prior period adjustment of$320,652 was recorded to correct the prior year
accumulated depreciation balance.
21
ilCOLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2016
U ____________ _____
NOTE 7: Long-Term Debt:
A. The outstanding balance of Line of Credit Notes in the Business Activities (Horizon Village) at
September 30, 2016 was $279,961.
Interest and principal shall be paid as follows:
0 a. Annual principal payments of$20,000 each plus accrued interest shall be payable in arrears
on the 15th day of November 2005, and on the 15th 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.
r
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.
The outstanding balance of Notes Payable at September 30, 2016 was $279,961. The notes are
payable each year in the amounts listed below:
September 30, Principal Interest Total
2017 $ 20,000 $ 8,399 $ 28,399
2018 20,000 7,798 27,798
2019 20,000 7,198 27,198
2020 20,000 6,599 26,599
2021 20,000 5,999 25,999
2022-2026100,000 20,995 120,995
2027-2030 79,961 5,996 85,957
$ 279,961 $ 62,984 $ 342,945
Interest expense for the year ended September 30, 2016 was $8,999. There was no capitalized
interest expense for the year ended September 30, 2016. The debt is secured by the property
purchased in conjunction with the above financing as reported above.
22
1
lCOLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
1 September 30, 2016
NOTE 7: Lonq-term debt: (Continued)
B. Promissory note to bank in the amount of$219,150(dated September 29,2015)at an interest rate of
3.5%. Payable in 84 monthly installments of interest and principal of$2,950. Final payment due by
September 29, 2022. Unsecured. The outstanding balance of the notes payable at September 30,
11 2016 was $191,079. The notes is payable each year in the amounts listed below:
I September 30, Principal Interest Total
2017 $ 29,186 $ 6,219 $ 35,405
2018 30,224 5,180 35,404
1 2019 31,299 4,106 35,405
2020 32,413 2,992 35,405
2021 33,565 1,839 35,404
I 2022 34,392 646 35,038
$ 191,079 $ 20,982 $ 212,061
I C. Line of Credit promissory note to bank in the amount of$249,000(dated December 18, 2015) at an
interest rate of 3.5%. The outstanding balance of the notes payable at September 30, 2016 was
$181,919. The line of credit matures on December 18, 2016 and is due on demand (all current).
Collateralized by a mortgage on real property and rents.
NOTE 8: Lonq Term Debt:
1 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
Iand interest amounts. Revenue bonds payable at September 30, 2016 are as follows:
Collier County Housing Authority Revenue Bonds, Series D, 1%, due
1 annually on September 1 in principal amounts of$24,380 to $33,000 with
I interest to September 1, 2023 $ 222,000
I 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 506,000
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 784,000
ICollier County Housing Authority Revenue Bonds, Series G (2015), 1%, due
annually on September 1 in principal amounts of$111,000 to$149,000 with
f interest to September 1, 2048 2.463.143
Total long-term debt 83,975,143
I 23
1
`°' COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2016
3 __
NOTE 8: Long Term Debt: (Continued)
3 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$20,958 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. There were $330,266 deposits made into the account during the year. The
aggregate deposits to the reserve account and interest earned for the year ended September 30,2016
were$2,472,004(after the approved usage of funds for capital improvements as noted below)which was
under 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.
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. 1
Supplemental Information: (Schedule of Funding Reserve)
a. Investment Reserve Funds
Sinking Fund Debt Service Account (Principal and Interest)
Beginning balance $ 1,760
Transfers to Debt Service Account including interest earned 151,200
Withdrawals for payment of principal and interest (122,180)
Ending balance 30,780
Sinking Fund Reserve Replacement Account
Beginning balance - less transfers to replacements and operations 2,189,963
I
Transfers to reserves including interest earned—net 330,266
Use of reserves for capital improvements ( 48,225)
Ending balance 2,472,004
Total Investment Reserve Fund 2,472,004
Fully Funded Balance per Loan Agreement 2.514.900
Excess/(Deficiency) of Reserves on Hand $ ( 42,896)
25
g.
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
- Notes to Financial Statements
September 30, 2016
NOTE 8: Long Term Debt: (Continued)
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
3 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
t
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 30,2016,there were no expenditures from the Construction Fund for authorized construction
activity.
In the Rural Housing Services enterprise fund, reservations of unrestricted net position have been
established in conjunction with debt issuance requirements or policy directives as stipulated by the
respective aforementioned funds.
NOTE 9: State Housing Initiatives Partnership Business Activities (Horizon Village) Loan:
The outstanding balance of the SHIP Loan Payable at September 30, 2016 was $93,880. The loan is
payable each year in the amounts and at the interest (at 0% interest) listed below:
September 30, Principal Interest Total
2017 $ 13,412 $ 0 $ 13,412
2018 13,412 0 13,412
2019 13,412 0 13,412
2020 13,412 0 13,412
2021 13,412 0 13,412
2022-2024 26,820 0 26,820
$ 93,880 $ 0. $ 93,880T
Interest expense for the year ended September 30, 2016 was $0. There was no capitalized interest
expense for the year ended September 30, 2016.
Interest: Interest on this Note shall be zero percent(0%) per annum; except that if the Authority fails to
Ipay 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 did not fail to pay the principal
payment for FY 2016 and is therefore not required to pay future payments at 12% interest as of FY2016.
26
3
j
COLLIER COUNTY HOUSING AUTHORITY
lmmokalee, Florida
Notes to Financial Statements
3 September 30, 2016
__ , ,.„„__
NOTE 9:State Housing Initiatives Partnership Business Activities(Horizon Village)Loan: (Continued)
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
L.:.: seventeen years thereafter until payment in full of $228,000 is received on August 1, 2024. The
Authority's total payment shall be$228,000.
NOTE 10: Schedule of Changes in Noncurrent Liabilities:
September 30,2015 September 30,2016
Long-Term Current Long-Term
Portion Portion Additions Payments Portion Current Portion
Compensated Absences $ 16,069 $ 16,066 $ 3,787 $ $ 32,330 $ 3,592
Other Liabilities(FSS Escrow) 35,913 - - (3,618) 32,295
Notes Payable 564,807 61,596 182,919 (62,484) 502,321 244,517
Bonds Payable 1,512,000 106,000 2,463,143 (106,000) 3,866,143 109,000
$ 2,128,789 $ 183,662 $ 2,649,849 $ (172,102) $ 4,433,089 $ 357,109
3
NOTE 11: Schedule of Changes in Net Position:
Net Investment Restricted Unrestricted
In Capital Assets Net Position Net Position Total
Balance,beginning of year $ 6,259,448 $ 2,224,257 $ 270,930 $ 8,754,635
Adjustments to restate beginning balance 320,652 - 320,652
Balance,beginning of year-restated 6,580,100 2,224,257 270,930 9,075,287
?+- Changes in net position - - 61,426 61,426
Changes in net investment in capital assets 82,835 - (82,835) -
Changes in restricted net position - 364,837 (364,837) -
Balance,end of year $ 6,662,935 $ 2,589,094 $ (115,316) $ 9,136,713
As discussed in Note 6, a prior period adjustment of$320,652 was recorded to correct the prior year
accumulated depreciation balance.
1
NOTE AnnuCiom U
Annual12: Contributionsal Contractontributons A from
H—SectionD: 8 programs provide for housing assistance payments to
private owners of residential units on behalf of eligible low or very low-existing and moderately
I rehabilitated housing covering the difference between the maximum rentals on a dwelling 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 Section 8 Housing Choice Voucher program for the year ended September 30, 2016 were
$3,645,932.
1 27
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30,2016
NOTE 13: Economic Dependency
The Authority receives approximately 66%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
3 from these federal agencies falls below critical levels, the Authority's reserves could be adversely
affected.
NOTE 14: Commitments and Contingencies
3
Commitments
3 As of September 30, 2016,the Authority has a purchase commitment with a general contractor in the
amount of $9,636,929 related to rehabilitation of United States Department of Agriculture ("USDA")
Farm Labor Housing units. The costs incurred to the contractor as of September 30, 2016 were
$2,476,476. The construction project will be funded with$9.2 million in USDA bond and grant funds as
discussed below.
Effective December 10, 2015 the Authority entered into a Labor Housing Grant Agreement with the
USDA. The Agreement provides for a grant in the amount of$5,263,246. An additional$4,000,000 will
be provided by the USDA in the form of a loan to the Authority(via issuance of Revenue Bonds to the
United States Department of Agriculture—Rural Development) repaid over the term of 33 years at 1%
F interest. The purpose of the grant and bond issue(total of$9,263,246) is to finance the rehabilitation of
315 units of Farm Labor Housing.
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, 2016.
xi However, the Authority was notified in the prior year by the United States Department of Agriculture
("USDA") regarding concerns over certain aspects of the operations of the USDA program. One of the
concerns raised was that the Authority was in excess of $430,000 above what was budgeted for
operating and maintenance for the 2014 fiscal year. In addition, the USDA stated that there is an
indication that project funds have been utilized for purposes unrelated to Rural Development s housing
project. The USDA asserts that allowable expenses include those expenses that are directly attributable
to housing project operations and are necessary to carry out successful operations and that housing
project funds may not be used for "purposes unrelated to the housing project." As a result of the
notification,the Authority engaged a forensic auditor to determine the extent of co-mingling of funds and
the amount of project funds that were utilized for unallowable expenses. The amounts determined to
I have been expensed by the USDA program have been recorded as a receivable from the respective
other programs and recorded in the financial statements. During the year ended September 30,2016,
the Authority signed a "repayment agreement" with the USDA to repay the Rural Housing program
$1,761,291 from business activities ($1,178,272 from Section A/B and$583,019 from Horizon Village).
The Authority is to make annual payments of$55,040 for 32 years from business activities to repay the
Rural Housing Program.
1 28
3 COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30,2016
NOTE 14: Commitments and Contingencies (Continued)
The Authority acknowledged and agreed that a failure of the Authority to comply with the repayment
agreement may be considered by the USDA a breach of the terms and conditions of all outstanding
loans, mortgages and grants.
The amount due to the Rural Rental Assistance Program from business activities as of September 30,
2016 is$1,749,274. These interprogram receivables and payables have been eliminated on the financial
statements.
Litigation
As of September 30,2016,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.
NOTE 15: Related Party Transactions
There were no related party transactions for the year ended September 30, 2016.
NOTE 16: 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 residents 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.
NOTE 17: Operating Leases:
The Authority is committed under a continuing non-cancelable lease for office space. This lease has
I 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
2016-2017 $ 7,725
I
29
ICOLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2016
NOTE 18: Subsequent Events
Events that occur after the balance sheet date but before the financial statements were available to
be issued must be evaluated for recognition or disclosure. The effects of subsequent events that
provide evidence about conditions that existed at the balance sheet date are recognized in the
accompanying financial statements.
Management evaluated the activity of the Authority through February 4, 2017 and concluded that
nothing occurred subsequent to the balance sheet date that would require disclosure in the Notes to
the Financial Statements.
I
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3
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30,2016
i _ _______ ...—
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, 2016, the Authority had the following insurance coverage in effect:
Amount of
Insurance Carrier Type of Coverage Coverage Term
Fidelity bond/Employee Dishonesty
Hartford Insurance Company $100,000 Deductible $2,000,000 07/12/16-07/12/16
Opticom Insurance Workers' Compensation Statutory 10/01/15-10/01/16
Florida PH Authority Insurance Automobile liability $1,000,000 05/01/16-05/01/17
Florida PH Authority Insurance Property, Office Building&Personal $44,169,134 05/01/16-05/01/17
Property. Fire&Extended Coverage
(90%coinsurance)
Florida PH Authority Insurance General Liability Personal Injury, $1,000,000 Agreg 05/01/16-05/01/17
products,advertising, property damage $2,000,000 per occ 05/01/16-05/01/17
US Liability Insurance Directors&Officers Liability $1,000,000 10/01/15 05/22/16
PHASIF Directors&Officers Liability $1,000,000 05/22/16-05/22/17
Fidelity&Deposit Company Employee dishonesty $103,000 07/12/16-07/12/17
ITT Harford Insurance Company Employee dishonesty (ERISA Bond) $100,000 07/11/16-07/11/17
2. Exemption from Real Estate and Income Taxes-The Authority is a public body corporate and
3 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 Laws of the State of Florida.
3. Reserves The Housing Authority has maintained adequate reserves for operations and Bond debt
service at September 30, 2016. See also notes 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.
33
]
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2016
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, 2016.
1 7. Comments on Compliance and Administrative Internal Control - We have audited the basic
financial statements of the Collier County Housing Authority and have issued our report thereon
dated February 4, 2017.
IWe have also issued a report dated February 4, 2017, 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.
I Finally, we have also issued a report on the Authority's compliance with the types of compliance
requirements described in the 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, 2016. 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.
8. Other Findings or Recommendations for the Period Ended September 30, 2016 — See the
schedule of findings and questioned cost as well as the management letter dated February 4, 2017
for findings and management comments.
1 9. The Required Schedule of Expenditures of Federal Awards along with required reports on
Internal Controls and Federal Compliance as outlined under Title 2 U.S.Code of Federal Regulations
(CFR) Part 200,Uniform Administrative Requirements, Cost Principles,and Audit Requirements for
Federal Awards(Uniform Guidance)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, 2016 totaling
$54,211 were accounts aged at ninety days (90) or less.
11.Accounts Payable consists of$43,219 at September 30, 2016. 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. Management fees of$153,750 were charged by the COCC.
34
I
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2016
.3 13. Schedule of Financial Institutions Where the Housing Authority Maintains its Bank Accounts
Name of Financial Institution Account Name Account Balance Classification
First 1 Bank USDA Reserve Account 2,270,902 USDA Restricted
1300 N. 15 St Suite 2 COCC Account 565
Immokalee, FL 34142 COCC Payroll Account 447
COCC Insurance Reserve 750
CCHA Land, Inc. 31,354
AB Revenue Account 15,666
AB Security Deposit Fund 69,271
Section A&B Insurance Reserve 17,000
Horizon Village Operating 33,926
Horizon Village Insurance Reserve 3,000
2,442,881
First Florida Integrity Bank
PO Box 10910 Security Deposit Fund USDA 85,240
Naples, FL 34101-0910 Certificates of Deposit 100,002 USDA Restricted
Certificates of Deposit 100,603 USDA Restricted
Bond &Sinking Fund 30,780 USDA Restricted
Revenue Account USDA 114,550
TBRA HOME Operating 63,178
Section 8-Admin Funds 251,969
Section 8- HAP 94,713
Construction Account 100
Family Self Sufficiency 34,333
O&M Operating 257,013
COCC Laundry 6,591
USDA Insurance Reserves 22,000
Section 8 Admin Insurance Reserves 1,900
1,162,972
Petty Cash&Return Check Fund 557
$ 3,606,410
The above amounts were confirmed with the institutions listed at September 30, 2016.
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.
I
35
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2016
15. Schedule of Changes in Owners and Board of Commissioners-This is a local Public Authority
3and 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, 2018 Naples, Florida
Bill McDaniel October 17, 2018 Naples, Florida
Rebecca M. Vaccariello November 7, 2017 Naples, Florida
16. Schedule of Rental Information
Number of Gross Potential
I Unit Size Units Rental Rate Months Rent
One bedroom unit 33 $ 425 12 $ 168,300
Two bedroom unit 111 451 12 600,732
Three bedroom unit 102 477 12 583,848
Four bedroom unit 69 499 12 413,172
315 $ 1,766,052
iThe Authority is planning to demolish/convert 50 units and rehabilitate the
remaining 315 units. The rehabilitation project started in early 2016.
Actual Rental Revenue Percentage Amount
Tenants 57.45% $ 820,366
RHA rental assistance subsidy 42.55% 607,642
„_____428 008
Note 1- Rental rates were effective October 1, 2008. Management provides
for the monthly collection of rent.
I
17. Real Estate Taxes-The Authority is a local public body corporate and politic and is tax exempt by
State of Florida, Section 423.
36
1
I
•
1,411•
`1 \ rte` AwL�•%J-_
�/rrtrtirr,,.-arrtlrrir�t,.
February 4,2017
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 30,2016,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 °• ui€ernents;
b. is maintained in a supervised bank account that requires the 4'.gency's;. sntersignatue on
j all withdrawals;
c. is on .schedule with contributions to the reserve account for the rr: rrent year wit `gi,
Agency required minimum funding;and
d. has no encumbrances on the reserve funds.
3 4. The tenant security deposits accounts are fuNy funded and are maintained in separate a- v,;.=rAs.
J 5. The payment of owner return was: Not Applicable(owner is a government entity,'
WA paid in the amount of$-0-for the 2016 fiscal year and was in accordance with the Agen y s
requirements OR
WA not paid during the reporting year OR
t,�fgo ai1owabee due to our nonprofit status OR
tja not atiowal le due to our nonprofit status. An asset management fee in the amount of$-0
37
1
Li
r''
was paid for 2016 fiscal year.
6. The borrower 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 a public 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
J Oscar Hent- ',Executive Director
Collier County Housing Authority
I
38
Barton, 13137- 66th Street,Largo,FL 33773
:,
Gonzalez Phone:(727)344-1040 Fax:(727) 533-8483
] & Myers, P.A.
'WW w.bartoncpascom
Ccrtificd Public Accountants
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS
]
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Collier County Housing Authority
Immokalee, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standard issued
by the Comptroller General of the United States, the financial statements of the Collier County Housing
Authority (the "Authority"), as of and for the year ended September 30, 2016, and the related notes to the
financial statements,which collectively comprise the Authority's basic financial statements,and have issued
our report thereon dated February 4, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the 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 opinions 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
j or employees,in the normal course of performing their assigned functions,to prevent,or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control 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.
39
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit,and accordingly,we do not express such an opinion.The results
of our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
We noted certain matters that we reported to management of the Authority in a separate letter dated
February 4, 2017.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance.Accordingly,this
communication is not suitable for any other purpose.
1644/ 414j4
4•
Barton, Gonzalez& Myers, P.A.
Certified Public Accountants
February 4, 2017
40
Barton, 13137 - 66th Street,Largo,FL 33773
MP' Phone:Gonzalez Phone:(727)344-1040 Fax:(727) 533 8483
Ir & Myers, P.A. www.baitoncpas.cona
1 A Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
Board of Commissioners
Collier County Housing Authority
Immokalee, Florida
Report on Compliance for Each Major Federal Program
We have audited the Collier County Housing Authority's(the"Authority")compliance with the types of compliance
requirements described in the OMB 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, 2016. 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
1
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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles,and Audit Requirements for Federal Awards(Uniform Guidance).Those standards
and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have a direct and
material effect on a major federal program occurred.An audit includes examining,on a test basis,evidence about
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 federal
program. However, our audit does not provide a legal determination of the Authority's compliance
Basis for Qualified Opinion on Rural Rental Assistance Payments Program
•
As described in the accompanying schedule of findings and questioned costs,the Collier County Housing Authority
did not comply with requirements regarding CFDA 10.427 Rural Rental Assistance Payments Program as
described in finding number 2016-001 for eligibility. Compliance with such requirements is necessary, in our
opinion,for the Collier County Housing Authority to comply with the requirements applicable to that program.
41
Qualified Opinion on Rural Rental Assistance Payments Program
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion on Rural Rental
Assistance Payments Program paragraph, the Authority, complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on the Rural Rental
Assistance Payments Program for the year ended September 30,2016.
Basis for Qualified Opinion on Housing Choice Voucher Program
As described in the accompanying schedule of findings and questioned costs,the Collier County Housing Authority
did not comply with requirements regarding CFDA 14.871 Housing Choice Voucher Program as described in
finding number 2016-002 for eligibility. Compliance with such requirement is necessary, in our opinion, for the
Collier County Housing Authority to comply with the requirements applicable to that program.
Qualified Opinion on Housing Choice Voucher Program
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion on Housing Choice
Voucher Program paragraph, the Authority, complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on the Housing Choice Voucher
Program for the year ended September 30, 2016.
Unmodified Opinion on Each of the Other Major Federal Programs
In our opinion,the Collier County Housing Authority complied,in all material respects,with the types of compliance
requirements referred to above that could have a direct and material effect on each of its other major federal
programs identified in the summary of auditor's results section of the accompanying schedule of findings and
questioned costs for the year ended September 30, 2016.
Other Matters
The Collier County Housing Authority's response to the noncompliance findings identified in our audit is described
in the accompanying corrective action plan.The Collier County Housing Authority's response was not subjected to
the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the
response.
Report on Internal Control Over Compliance
3 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 federal 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 Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance.Accordingly,we do not express an opinion on the effectiveness of the Authority's internal control over
compliance.
Our consideration of internal control over compliance was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies and therefore,material weaknesses or significant deficiencies may
exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control
over compliance that we consider to be material weaknesses.
42
iA deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees,in the normal course of performing their assigned functions,to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely
basis.A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in
internal control over compliance,such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented,or detected and corrected,on a timely basis.
We consider the deficiencies in internal control over compliance described in the accompanying schedule of
findings and questioned costs as items 2016-001 and 2016-002 to be material weaknesses.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less severe
than a material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
The Authority's response to the internal control over compliance findings identified in our audit is described in the
accompanying schedule of findings and questioned costs. The Authority's response was not subjected to the
3 auditing procedures applied in the audit of compliance and,accordingly,we express no opinion on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance.Accordingly,this report is not suitable for any other purpose.
i 4) , 4 i . .
Barton, Gonzalez&Myers, P.A.
Certified Public Accountants
1 February 4, 2017
I
I
1.
43
3
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
] Schedule of Findings and Questioned Costs
September 30, 2016
0 Section I - Summary of Auditor's Results:
Financial Statements
2 Type of report issued on the financial statements: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiencies identified not considered
to be material weaknesses? None Reported
1 a..\�
Noncompliance material to the financial statements noted? No
Federal Awards
Internal controls over major program:
Material weakness(es) identified? Yes
Significant deficiencies identified not considered
to be material weaknesses? No
Type of reports issued on the compliance for major programs:
14.871 Section 8—Housing Choice Voucher Qualified
10.427 Rural Rental Assistance Payments Qualified
10.415 Rural Rental Housing Loans Unmodified
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR section 200.516(a)? Yes
i
Identification of major program: 14.871 Section 8—Housing Choice Voucher
10.427 Rural Rental Assistance Payments
10.415 Rural Rental Housing Loans
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Did the Authority qualify as a low-risk auditee? No
44
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Schedule of Findings and Questioned Costs
September 30, 2016
] _ ____ ._ _.___ __ ___
3 Section II - Financial Statement Findings:
There were no findings relating to this area for the year ended September 30, 2016.
Section Ill - Federal Awards:
The following findings were disclosed relating to this area for the year ended September 30, 2016:
2016-001 USDA Tenant Files
Program: U.S. Department of Agriculture: Rural Rental Assistance Payments (CFDA 10.427)
Type of Finding: Internal Control—Material Weakness, Compliance—Eligibility
Repeat of finding 2015-002 from September 30, 2015.
Statement of Condition
The Authority did not have adequate controls over tenant files to assure it is maintaining
adequate documentation,that income and deductions are calculated properly,and that units are
inspected annually. In 27 USDA files tested, we noted the following errors:
• 1 error noted where the MINC report showed an incorrect rent amount for a tenant($499 for a
four bedroom unit),while the rent should have been$477 (for a three bedroom unit). The
rent roll listed the correct amount of$477 and that was the amount of rent paid. Since this
was not a subsidized unit, no amounts were billed to the USDA and thus there was no
effect to the Authority. However, the MINC reported incorrect information.
• 1 error noted in income calculations where the amount of income listed was $27,392 while
the amount of income should have been$20,979. However,since using flat rent of$477,
would not have changed the amount of rent due but care should be taken to calculate
income correctly.
• 4 errors (2 files)were noted where 2 children had incorrect birth dates(in one unit)listed and
a separate tenant(in another unit) also had an incorrect birth date listed. Also, one of the
children's social security number listed was incorrect.
1 . We also noted 13 unit inspections not completed during the year for the USDA program. Of
that amount, 5 inspections were not completed for A/B units used for the USDA program.
Also,2 tenants moved back to USDA units from A/B units but there was no evidence in the
file of inspections for the USDA units. Finally, we noted an additional 6 files for USDA
units where there was no evidence of an annual inspection performed. For safety reasons,
all units should be inspected annually and any repairs needed should be corrected.
a Criteria
Regulations require that the Authority perform certain prescribed verification procedures and
obtain the required documentation to assure that tenants qualify for the USDA program and that
amounts submitted to the USDA for rental assistance are calculated according to USDA rules. In
addition, units should be inspected annually.
IQuestioned Costs None
1 45
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Schedule of Findings and Questioned Costs
September 30, 2016
2016-001 USDA Tenant Files (Continued)
Effect
The Housing Authority is not in compliance with applicable USDA regulations.
Cause
The Authority did not maintain adequate controls over required documentation in tenant files and
did not perform unit inspections on certain properties.
Recommendation
The Authority should improve review procedures and increase training to employees and
reviewers to ensure that the Authority is in compliance with USDA rules for verification of tenant
information and calculation of tenant rents and that units are annually inspected.
Views of Responsible Officials of the Auditee
We concur with the recommendation and are in the process of establishing controls (including
review procedures)to ensure that USDA program requirements are being followed.We are doing
100% file reviews to ensure a second set of eyes assess the file for correct and complete
information, and catch and resolve any discrepancies as soon as possible.
2016-002 HCV Enterprise Income Verification (EM and Tenant Files
Program: U.S. Department of HUD: Section 8—Housing Choice Voucher (CFDA 14.871)
Type of Finding: Internal Control—Material Weakness, Compliance—Eligibility
Repeat of finding 2015-003 from September 30, 2015.
Statement of Condition
The Authority did not have adequate controls over tenant files to include the required Enterprise
Income Verification ("EIV")documentation. We noted 7 out of 27 files tested where the EIV was
not included in the tenant file.
In addition, the Authority did not have adequate controls over tenant files to assure it is
maintaining adequate documentation. We noted the following exceptions in 27 files tested:
• In 1 tenant file the HAP contract and the lease agreement were not signed by the landlord
and the tenant respectively.
• In 1 tenant file a dependent's name was missing on the HAP contract.
• In 1 tenant file the income was not calculated correctly for the current period—the Authority
used prior year information and not the current year for the child support income(change of
$33 in the HAP payment amount).
• In 1 tenant file a dependent was claimed as a full time student, but the dependent is not a full
time student.This had an $11 difference in the HAP payment amount.
• In 1 tenant file the zip code on the HAP contract and the HAP register was different from the
50058 form and the lease agreement. The zip code on the HAP contract was incorrect.
46
Fi•
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
] Schedule of Findings and Questioned Costs
September 30, 2016
2016-002 HCV Enterprise Income Verification (EIV) and Tenant Files (Continued)
]
Criteria
HUD's EIV regulation at 24 CFR 5.233 (See Notice PIH 2010-19) requires the use of the EIV
system in its entirety to verify tenant employment and income during mandatory recertifications of
family composition and income and to reduce administrative and subsidy payment errors. In
addition, HUD regulations require that the Authority perform certain prescribed verification
procedures and obtain the required documentation to assure that tenants qualify for section 8
housing and that amounts submitted to HUD for tenant assistance are calculated according to
HUD rules.
Questioned Costs None
Effect
The Authority did not use the EIV tool for some tenants to verify tenant employment and income
during reexaminations. Not using the EIV system could lead to subsidy payment errors. In
addition, the Authority is not complying with HUD rules regarding tenant verifications and
documentation.
Cause
The Authority had some employee turnover in the HCV program and the person conducting the
certifications and recertifications was not aware of the requirement to document that the EIV
system was being used and the Authority did not maintain adequate controls over required
documentation in tenant files.
Recommendation
The Authority should establish controls to ensure that the EIV system is being used to verify
tenant employment and income during recertifications and should improve review procedures
and increase training to employees and reviewers to ensure that the Authority is in compliance
with HUD rules for verification of tenant information and calculation of tenant portion of the rent.
Views of Responsible Officials of the Auditee
We concur with the recommendation and are in the process of establishing controls (including
review procedures)to ensure that the EIV system use is properly documented and to ensure that
HUD program requirements are being followed.
I
47
111
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Summary Schedule of Prior Year Findings
September 30, 2016
] _________________ —____ _
The prior audit report for the year ended September 30, 2015 contained the following findings.
j
2015-001 Inadequate Controls Over Disbursements and Expenses
Program: U.S. Department of Agriculture: Rural Rental Assistance Payments (CFDA 10.427)
Type of Finding: Internal Control—Material Weakness, Compliance—Allowable Costs
Statement of Condition
3 The Authority should have the necessary controls over disbursements and expenses to assure
that the program is only charged reasonable and necessary expenses of the USDA program.
The Authority improperly allocated expenses to the USDA program that belonged to other
programs. As a result,and after correction,other programs (mostly business activities)owe the
Rural Housing program $1,776,406.
Recommendation
The Authority should establish controls to ensure that only reasonable, necessary and
appropriate expenses are charged to each fund. We recommend that a study be performed to
determine a reasonable allocation of expenses. In addition,we recommend only direct costs be
I paid out of each program and indirect costs be allocated (whenever possible) from the COCC
using a reasonable basis for the allocation of costs.
1 Status
The finding has been corrected.
3 2015-002 USDA Tenant Files
Program: U.S. Department of Agriculture: Rural Rental Assistance Payments (CFDA 10.427)
Type of Finding: Internal Control— Material Weakness, Compliance—Eligibility
Statement of Condition
The Authority did not have adequate controls over tenant files to assure it is maintaining
adequate documentation,that income and deductions are calculated properly,and that units are
inspected annually. In 25 USDA files tested, we noted the following errors:
1
• 1 error noted where the lease agreement did not show the correct rent (should have been
$499 for 3 bedroom, but the lease agreement showed $477 for a 3 bedroom)
• 3 errors noted in income calculations which affected the tenant and Rental Assistance
portions of the rent
• 3 errors (2 files)were noted where 2 children had incorrect birth dates(in one unit)listed and
a separate tenant (in another unit) also had an incorrect birth date listed.
• We also noted 8 unit inspections not completed during the year for NB units used for USDA
Irental assistance. These units should be inspected annually and any repairs needed
corrected.
I
1 48
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Summary Schedule of Prior Year Findings
September 30, 2016
F
2015-002 USDA Tenant Files (Continued)
3 Recommendation
The Authority should improve review procedures and increase training to employees and
reviewers to insure that the Authority is in compliance with USDA rules for verification of tenant
information and calculation of tenant rents and that units are annually inspected.
Status
The finding has not been corrected. See finding 2016µ001.
2015-003 HCV Enterprise Income Verification (EIV)
Program: U.S. Department of HUD: Section 8—Housing Choice Voucher (CFDA 14.871)
Type of Finding: Internal Control—Material Weakness, Compliance—Eligibility
3 Statement of Condition
The Authority did not have adequate controls over tenant files to include the required Enterprise
Income Verification ("Ely') documentation. The majority of the tenant files (20 out of 25 files)
tested in the Housing Choice Voucher program did not show evidence of using the EIV system.
Recommendation
The Authority should establish controls to ensure that the EIV system is being used to verify
tenant employment and income during recertifications.
Status
The finding has not been corrected. See finding 2016-002.
1
i
49
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
kj,
Corrective Action Plan
September 30, 2016
The following is the corrective action planned by the Authority regarding the current findings:
Finding
No.
2016-001 USDA Tenant Files
j Federal Award Finding
Program: U.S. Department of Agriculture: Rural Rental Assistance Payments (CFDA 10.427)
Type of Finding: Internal Control— Material Weakness, Compliance—Eligibility
Statement of Condition
The Authority did not have adequate controls over tenant files to assure it is maintaining
adequate documentation,that income and deductions are calculated properly,and that units are
inspected annually. In 27 USDA files tested,we noted the following errors:
• 1 error noted where the MINC report showed an incorrect rent amount for a tenant($499 for a
four bedroom unit), while the rent should have been$477(for a three bedroom unit). The
rent roll listed the correct amount of$477 and that was the amount of rent paid. Since this
was not a subsidized unit, no amounts were billed to the USDA and thus there was no
1 effect to the Authority. However, the MINC reported incorrect information.
• 1 error noted in income calculations where the amount of income listed was $27,392 while
the amount of income should have been$20,979. However,since using flat rent of$477,
would not have changed the amount of rent due but care should be taken to calculate
income correctly.
• 4 errors (2 files)were noted where 2 children had incorrect birth dates(in one unit)listed and
a separate tenant(in another unit) also had an incorrect birth date listed. Also,one of the
children's social security number listed was incorrect.
• We also noted 13 unit inspections not completed during the year for the USDA program. Of
that amount, 5 inspections were not completed for A/B units used for the USDA program.
Also,2 tenants moved back to USDA units from A/B units but there was no evidence in the
file of inspections for the USDA units. Finally,we noted an additional 6 files for USDA units
where there was no evidence of an annual inspection performed. For safety reasons, all
units should be inspected annually and any repairs needed should be corrected.
Recommendation
The Authority should improve review procedures and increase training to employees and
reviewers to ensure that the Authority is in compliance with USDA rules for verification of tenant
information and calculation of tenant rents and that units are annually inspected.
Action Taken
We concur with the recommendation and are in the process of establishing controls (including
review procedures)to ensure that USDA program requirements are being followed.We are doing
100% file reviews to ensure a second set of eyes assess the file for correct and complete
information, and catch and resolve any discrepancies as soon as possible.
50
3
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Corrective Action Plan
September 30, 2016
2016-002 HCV Enterprise Income Verification (EIV1 and Tenant Files
Federal Award Finding
Program: U.S. Department of HUD: Section 8—Housing Choice Voucher(CFDA 14.871)
Type of Finding: Internal Control—Material Weakness, Compliance—Eligibility
Statement of Condition
The Authority did not have adequate controls over tenant files to include the required Enterprise
Income Verification("EIV")documentation. We noted 7 out of 27 files tested where the EIV was
not included in the tenant file.
In addition, the Authority did not have adequate controls over tenant files to assure it is
maintaining adequate documentation. We noted the following exceptions in 27 files tested:
• In 1 tenant file the HAP contract and the lease agreement were not signed by the landlord
and the tenant respectively.
• In 1 tenant file a dependent's name was missing on the HAP contract.
• In 1 tenant file the income was not calculated correctly for the current period—the Authority
used prior year information and not the current year for the child support income(change of
$33 in the HAP payment amount).
• In 1 tenant file a dependent was claimed as a full time student, but the dependent is not a full
time student. This had an $11 difference in the HAP payment amount.
• In 1 tenant file the zip code on the HAP contract and the HAP register was different from the
50058 form and the lease agreement. The zip code on the HAP contract was incorrect.
Recommendation
The Authority should establish controls to ensure that the EIV system is being used to verify
3 tenant employment and income during recertifications and should improve review procedures
and increase training to employees and reviewers to ensure that the Authority is in compliance
with HUD rules for verification of tenant information and calculation of tenant portion of the rent.
Action Taken
We concur with the recommendation and are in the process of establishing controls (including
I
review procedures)to ensure that the EIV system use is properly documented and to ensure that
HUD program requirements are being followed.
IEffective Date: February 4, 2017
Contact Information
Oscar Hentschel, Executive Director
Collier County Housing Authority
1 1800 Farm Worker Way
Immokalee, FL 34142
(239) 657-3649
51
Collier County Housing Authority
Immokalee,Florida
Schedule of Expenditures of Federal Awards
For the Year Ended September 30,2016
3
Federal Program or Disbursements
CFDA Award or
FEDERAL GRANTOR Number Amount Expenditures
U.S.Department of Agriculture
Rural Rental Housing Debt(Loan) • + 10.415 $ 3,975,143 $ 3,975,143
Rural Rental Assistance Payments •• + 10.427 607,642 607,642
Total U.S.Department of Agriculture 4,582,785 4,582,785
3
U.S.Department of HUD
Section 8 Housing Assistance Payments
Housing Choice Voucher Program * + 14.871 3,645,932 3,645,932
jHome Partnership-TBRA •• 14239 19,837 19,837
Resident Opportunity&Supporting Services . 14.870 14.870 17,469 17,469
Total U.S.Department of HUD 3,683,238 3,683,238
TOTAL $ 8,266,023 $ 6,266,023
Notes to the Schedule of Fxoenditures of Federal Awards
A. Basis of Accounting and Presentation
This schedule includes the federal grant activity of the Collier County Housing Authority and is presented on the full accrual basis
of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance
(Title 2 U.S.Code of Federal Regulations(CFR),Part 200,Uniform Administrative Requirements,Cost Principles,and Audit
Requirements for Federal Awards).Therefore,some amounts presented In this schedule may differ from amounts presented in,
or used in the preparation of the basic financial statements.The Authority has not elected to use the 10%deminimis cost rate.
B. Reconciliation of Total Federal Awards Expenditures to Financial Data Schedule
FDS Line 70600 HUD PHA Grants $ 3,683,238
FDS Line 70800 Other Government Grants 607,642
FDS Line 343 8 351 Rural Rental Loan Debt 3,975,143
$ P 266,023
C. Other Considerations in Determining Major and Non-major Program Requirements
The Authority is administering housing under the U.S.Department of Agnculture's Rural Housing Services Program.The financing
for construction of this housing project was provided by the Agency for Farm labor Housing Loans 8 Grants(Federal CFDA#10.415).
At September 30,2016,the balance of the long-term debt due to the U.S.Department of Agriculture's Rural Housing Services was
$3.975,143.This loan balance has been considered as a part of the computation to determine the major and non-major program
requirement under the Uniform Guidance.
D. Program Type
" Type A Program
**Type B Program
+ Major Program
See auditor's report.
52
MP
13137- 66th Street,Largo,FL 33773
1 IN P Gonzalez
U_r� Phone:(727)344-1040 Fax:(727) 533-8483
& Myers, P.A. www.bartoncpas.com
Certified Public Accountants
February 4, 2017
Mr. Oscar Hentschel, Executive Director
and Board of Commissioners
Collier County Housing Authority
Immokalee, Florida
Dear Mr. Hentschel and Board of Commissioners:
In planning and performing our audit of the financial statements of the Collier County Housing Authority for
the year ended September 30, 2016, in accordance with auditing standards generally accepted in the
United States of America, we considered the Authority's internal control over financial reporting (internal
control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
organization's internal control. Accordingly, we do not express an opinion on the effectiveness of the
Authority's internal control.
However, during our audit we became aware of a certain matter that is an opportunity for strengthening
internal controls and operating efficiency.This letter does not affect our report dated February 4, 2017, on
the financial statements of the Collier County Housing Authority.
We will review the status of this comment during our next audit engagement. We have already discussed
-- this comment and suggestion with various Authority personnel,and we will be pleased to discuss it in further
detail at your convenience, to perform any additional study of this matter, or to assist you in implementing
the recommendation. Our comment is summarized as follows:
Prior year management comments that continue to apply:
Rental Registers for Business Activities
We noted that Horizon Village (business activities) is using manual tenant registers to track tenant activity.
We recommend the Authority use tenant register software to track tenant activity to limit the amount of
possible errors as a result of manual calculations.
53
Current year management comments:
None.
This report is intended solely for the information and use of management,Board of Commissioners,others
within the Authority,and the Department of Housing and Urban Development(HUD),and is not intended to
be and should not be used by anyone other than these specified parties.
9
Sincerely,
i6v4 4 I 1 4•
Barton, Gonzalez& M =rs, • .•. J
Certified Public Accountants
3
54
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