CCHA 2018 Annual Filing Notice _y� Oji
March 15, 2018
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, 2017.
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
09/30/2017. There has been no change in public facilities.
I 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,
Oscar Hen schel
Executive Director
OH/lvs
1800 Farm Worker Way, Immokalee FL 34142 www.cchafl.org Ph: 239-657-3649 Fax: 239-657-7232
Florida Department of Economic Opportunity, Special District Accountability Program
FY 2017/2018 Special District Fee Invoice and Update Form
Required by Sections 189.064 and 189.018, Florida Statutes, and Chapter 73C-24, Florida Administrative Code
Invoice No.: 69741 Date Invoiced: 10/02/201'
Annual Fee: $175.00 Late Fee: $0.00 Received: $0.00 Total Due,Postmarked by 12/04/2017: $175.01
(1'-STEP 1: Review the following information, make changes directly on the form, and sign and date:
11. Special District's Name, Registered Agent's Name, and Registered Office Address: DE.41
FLORIDA DEPARTMENT'
Collier County Housing Authority OCT0 :J PEC'D ECONOMIC OPPORTUNITY
Mr. Oscar Hentschel v I Llr
1800 Farm Worker Way
Imrnokalee, Fl 34142
2.Telephone: (239)657-3649
3. Fax: (239)657-7232
4. Email: ohentschel@cchafl.org
5. Status: Independent
6. Governing Body: Governor Appoints
7.Website Address: cchafl.org
8. County(ies): 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: 06/20/2017
I do hereby certify that the information a ye(oh' nges noted i necessary)is accurate and complete as of this date.
Registered Agent's Signature:__ Date___10
STEP 2: Pay the annual fee or certify eligibility for the zero fee:
a. Pay the Annual Fee: Pay the annual fee online by following the instructions at www.Floridajobs.ora/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
2015/2016 Annual Financial Report(if created since then, attach an income statement verifying$3,000 or less in revenues).
Department Use Only:Approved: ____Denied: . Reason:___
STEP 3: Make a copy of this form for your records.
STEP 4: Mail this form and payment(if paying by check)to the Department of Economic Opport n'ty, : eau of Budget Management,
107 E. Madison Street, MSC 120, Tallahassee, FL 32399-4124. Direct any questions t :.'A, 17-84scAN ED
P i- STED ' `++ 0
ib 47
Rick Scott Cissy Proctor
GOVERNOR EXECUTIVE DIRECTOR
FLORIDA DEPARTMENT.'
ECONOMIC OPPORTUNITY
To: All Special District Registered Agents
From: Jack Gaskins Jr., Special District Accountability Progra•. ,'Uti-) •
Date: October 2, 2017
Subject: Fiscal Year 2017/2018 Annual Special District Fee and Update
Post-Marked Due Date is December 4, 2017
This memo contains the instructions for complying with the annual fee and update requirement using the
enclosed combined Fiscal Year 2017/2018 Annual Special District Fee Invoice and Update Form(the
"form"). To avoid a $25 late fee, the payment must be post-marked or paid online by December 4, 2017.
The Purpose of the Annual Fee
Chapter 189, Florida Statutes (the Uniform Special District Accountability Act), requires the Florida
Department of Economic Opportunity's Special District Accountability Program (the "Program"), to
perform a number of duties and responsibilities as they relate to special districts. The Legislature does
not appropriate general revenue to pay the costs involved. Instead, section 189.018, Florida Statutes,
requires the Program to collect an annual fee from each special district. The annual fee remains at $175
per special district, unless the special district certifies that it is eligible for a zero fee. For more information
about the Program and the annual fee, see www.FloridaJobs.org/SpecialDistricts.
The Purpose of Reviewing and Updating the Special District's Profile
One of the Program's responsibilities is to continuously maintain specific information about each special
district and make it publically available through the Official List of Special Districts Online
(www.FloridaJobs.org/Officiallist). More than 685 state and local agencies use this list to coordinate
activities with special districts, classify and compile financial information and monitor Florida's 1,685-plus
active special districts. Therefore, it is important for each registered agent to annually review the special
district's profile to determine if anything needs to be corrected or updated.
Reminders
Each newly created special district must have an official website by the end of the first full fiscal year after
its creation. All other special districts should already be maintaining a website. If your special district's
official website address is not listed on the enclosed form, please provide it. For more information about
website requirements, please visit www.FloridaJobs.org/SDWebsites#Req.
The Florida Special District Handbook Online (www.FloridaJobs.org/SpecialDistrictHandbook) covers
general operating procedures, such as reporting requirements, for all types of special districts. The
Program encourages each special district to review this handbook regularly to help ensure compliance
with state accountability standards.
(TURN OVER FOR INSTRUCTIONS)
will, t 1
Florida Department of Economic Opportunity I Caldwell Building 1 107 E.Madison Street I Tallahassee,FL 32399
850.245.7105 1 www.floridajobs.org
www.twitter.com/FLDEO I www.facebook.com/FLDEO
An equal opportunity employer/program.Auxiliary aids and service are available upon request to individuals with disabilities.All voice
telephone numbers on this document may be reached by persons using TTY/TTD equipment via the Florida Relay Service at 711.
. ' ' 'O. ', ' 'A 11. :0'. "' I A HEAT SENSITIVE INK THAT DISAPPEARS WHEN RUBBED.
First Florida Integrity Bank CHECK NO.
Collier County Housing Authority 5078 Pope John Paul II Blvd. 005677
• 0& M Operating Acct-USDA Suite 100
1800 Farm Worker Way Ave Maria, FL 34142
Immokalee FL 34142 63-1632/670 DATE
239-657-3649 10/12/2017
AMOUNT
PAY: One Hundred Seventy-Five dollars and 00/100*** $175.00
Void after 90 days
PAY
TO Fl Depart of Economic Opp.
THE 107 E. Madison Street, MSC 120 "
11,41111; ecutive Dire or ig
ORDER Tallahassee, FL 32399-4124
OF
Ito -4.8.141 411
Arts . _At
Memo: SIGNAT c AREA HAS tyli/Fe,eiroCrAbfilifintrVKAINS MIG•te TING t
aTE,' j
11100 5 7 70 1:0 70 L6 2 51: LO 70 6 SP
AMOUNT PAID ACCOUNT BANK ACCOUNT DATE CHECK NO.
$175.00 1067065 10/12/2017 005677
' Vendor # and Name -> 101341 Fl Depart of Economic Opp.
Invoice No. Date Description Amount
69741 10/02/2017 Inv. #69741. Fiscal Year 2017/2018. $175.00
AMOUNT PAID ACCOUNT BANK ACCOUNT DATE CHECK NO.
$175.00 1067065 10/12/2017 005677
Vendor # and Name -> 101341 Fl Depart of Economic Opp.
Invoice No. Date Description Amount
69741 10/02/2017 Inv. #69741. Fiscal Year 2017/2018. $175.00
REORDER SERIES 600
; Schedule of Board Meetings
.Y3 For
oilier County Housing Authority
1-10Sing sm uthorj,1 2017-2018
October 30, 2017
November 2017- No Meeting Held
December 13, 2017
January- No Meeting Held
February 27, 2018
March 27, 2018
April 24, 2018
May 22, 2018
June 26, 2018
July 24, 2018
August 28, 2018
September 25, 2018
1800 Farm Worker Way, Immokalee FL 34142 www.cchafl.org Ph: 239-657-3649 Fax: 239-657-7232
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
AUDIT REPORT
For the Year Ended September 30, 2017
—
•IIIUIJ Barton,
IIUU!P' Gonzalez
& Myers, P.A.
D Certified Public Accountants
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Table of Contents
September 30, 2017
Pacie
— Independent Auditor's Report 1-2
Management's Discussion and Analysis (MD&A) 3-8
BASIC FINANCIAL STATEMENTS
Statement of Net Position - Proprietary Fund Type 9
Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Fund Type... 10
— Statement of Cash Flows - Proprietary Fund Type 11
Notes to Financial Statements 12-28
SUPPLEMENTAL INFORMATION
Combining Schedule of Assets, Liabilities and Net Position 29
Combining Schedule of Revenues, Expenses and Changes in Fund Net Position 30
— Farm Worker Subsidized Housing Program 31-34
Certificate of Borrower 35-36
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 37-38
Independent Auditor's Report on Compliance for each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance 39-40
Schedule of Findings and Questioned Costs 41-43
Summary Schedule of Prior Year Findings 44-45
Corrective Action Plan 46-47
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 48
MANAGEMENT LETTER 49-50
FINANCIAL DATA SCHEDULE 51-57
■11111Barton, 13137 - 66th Street,Largo,FL 33773
:::;1Pr Gonzalez Phone:(727)344-1040 Fax: (727) 533-8483
& Myers, P.A. www.bartoncpas.com
• A Certified Public Accountants
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, 2017, and the related notes to the financial statements, which
collectively comprise the Authority's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these 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 30,2017,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.
1
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
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 22,2018,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.
,(Y04 Peir/.4.
Barton, Gonzalez 8Mly&r< P.A.
Certified Public Accountants
February 22, 2018
2
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2017
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.
The most significant changes on the 2017 financial statements were in assets, liabilities,
and revenue.
Financial Highlights
• Assets:
As of September 30, 2017, total assets were $19,893,207 as compared to
$15,167,647, as of September 30, 2016, an increase of $4,725,560. Current assets
decreased $123,062 and capital assets increased 4,848,622 (mostly due to the
ongoing construction in progress on the Rehab of the USDA units).
• Liabilities:
Total liabilities increased $1 ,198,749 due to a small decrease in current liabilities of
_ $72,422 and an increase in noncurrent liabilities of $1,271 ,171 (due to the USDA
revenue bonds partly funding the construction in progress).
• Revenues:
In 2017, total revenue increased $3,787,199, as compared to 2016, due to increases
in tenant rents and Federal Grants (mainly for the USDA Rehab) & Subsidy
revenues.
• Expenses:
Total expenses increased $321 ,814 due mainly to increases in Housing Assistance
Payments (HAP) expense.
Overview of the Financial Statements
The annual report includes a 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.
3
COLLIER COUNTY HOUSING AUTHORITY
lmmokalee, Florida
Management Discussion and Analysis
September 30, 2017
The financial statements report information using accounting methods like those used
— by private 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 creditors (liabilities). It also
provides the basis for evaluating capital structure to include assessing liquidity and
financial flexibility.
For accounting purposes, the Housing Authority is classified as an enterprise fund.
Enterprise funds account for activities like those found in the private business sector
-- where the determination of net position is necessary or useful to sound financial
administration. Enterprise funds are reported using the full accrual method of
accounting in which assets and liabilities, associated with the operation of these funds,
are included on the balance sheet. Their focus is on income measurement which,
together with the maintenance of equity, is an important financial indicator. Our
discussion and analysis provides an overview of the financial activities and performance
_ for year-end September 30, 2017.
All 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
ability of management to meet budgets, maintain property (meets HUD specifications
and inspections), and determines whether the Housing Authority has successfully
recovered costs through its rental fees and other charges. It can also be used to
measure 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. It also 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.
_ Supplemental information included in the financial statements 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.
4
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2017
Financial Analysis
One of the most important questions concerning finances is the following; "Is the
Housing Authority as a whole better, or worse, off because of the achievements of the
reported fiscal year?" The purpose of 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, 2017.
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, 2017.
Collier County Housing Authority'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 aids low-income families
in rural areas, a Farm Labor Housing Loans and Grants program, and a business
activities program.
The following analysis focuses on the net position and the change in net position, as a
whole, not the individual programs.
Net Position
September 30,
% of
2017 2016 Change Change
Current Assets $ 4,406,507 $ 4,529,569 $ (123,062) -2.72%
Capital Assets, Net 15,486,700 10,638,078 4,848,622 45.58%
Total Assets $ 19 893,207 $ 15,167,647 $ 4,725,560 31.16%
Current Liabilities 1,525,423 1,597,845 (72,422) -4.53%
Noncurrent Liabilities 5,704,260 4,433,089 1,271,171 28.67%
Total Liabilities $ 7,229,683 $ 6,030,934 $ 1,198,749 19.88%
Net Position:
Investment in Capital Assets 10,083,700 6,662,935 3,420,765 51.34%
Restricted Net Position 2,805,534 2,589,094 216,440 8.36%
Unrestricted Net Position (225,710) (115,316) (110,394) 95.73%
Total Net Position $ 12,663,524 $ 9,136,713 $ 3,526,811 38.60%
5
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2017
Capital Assets
(Net of Accumulated Depreciation)
September 30,
% of
2017 2016 Change Change
Land $ 2,568,712 $ 2,568,713 $ (1) 0.00%
Infrastructure 4,841,399 4,677,708 163,691 3.50%
Buildings 25,188,208 25,188,208 0 0.00%
Furniture&Equipment- Dwell 529,057 529,057 0 0.00%
Furniture & Equipment-Admin 1,721,600 1,711,308 10,292 0.60%
Construction in Progress 8,492,754 3,163,003 5,329,751 168.50%
Subtotal 43,341,730 37,837,997 5,503,733 14.55%
Accumulated Depreciation (27,855,030) (27,199,919) (655,111) 2.41%
Net Capital Assets $ 15,486,700 $ 10,638,078 $ 4,848,622 45.58%
Net Position
Capital additions (mainly for construction in progress) exceeded annual depreciation
which increased total assets. Total liabilities increased due to the Rural Rental
Assistance Payments program's long-term debt (revenue bonds).
Total Net Position
The balance in total net position, $12,663,524, was the compilation of revenues,
expenses, and capital expenditures accumulated during the life of the Housing
Authority. Current year revenues ($10,318,930) exceeded expenses ($6,792,119) by
$3,526,811 which resulted in an increase in equity (net position).
Debt
Long-term debt consisted of $5,403,000 in revenue bonds for the Rural Rental
Assistance Payment program and $669,325 in operational borrowing for the business
-- activities program. The current portion of long-term debt was $220,000 for the Rural
Rental Assistance Payments program and $230,489 for the business activities program.
The noncurrent portion of long-term debt was $5,183,000 for the Rural Rental
Assistance Payments program and $438,836 for the business activities program.
6
COLLIER COUNTY HOUSING AUTHORITY
lmmokalee, Florida
Management Discussion and Analysis
September 30, 2017
Changes in Net Position
— For the Year Ended September 30
% of
2017 2016 Change Change
_ Revenue:
Tenant Revenue $ 2,343,109 $ 1,901,426 $ 441,683 23.23%
Federal Grants&Subsidy 7,588,333 4,290,880 3,297,453 76.85%
investment 7,761 5,869 1,892 32.24%
— Other Income 379,727 333,556 46,171 13.84%
Total Revenue 10,318,930 6,531,731 3,787,199 57.98%
Expenses:
Administrative 1,036,214 1,001,013 35,201 3.52%
Tenant Services 27,212 32,009 (4,797) -14.99%
Utilities 114,994 119,935 (4,941) -4.12%
— Routine Maintenance 888,346 775,505 112,841 14.55%
Protective Services 24,319 21,624 2,695 12.46%
General 406,813 375,878 30,935 8.23%
Interest 51,888 39,237 12,651 32.24%
Housing Assistance Payments 3,587,224 3,434,689 152,535 4.44%
Casualty Losses 0 11,875 (11,875) -100.00%
Depreciation 655,109 658,540 (3,431) -0.52%
— Total Operating Expenses 6,792,119 6,470,305 321,814 4.97%
Increase(Decrease) in Net Position $ 3,526,811 $ 61,426 $ 3465,385 5641.56%
Changes in Net Position
Changes in total revenue were due mainly to average monthly tenant rental rates plus
other government grants received for the Farm Labor Housing Loans and Grants
program. Total operating expenses increased due to routine general
upkeep/maintenance repairs and Housing Assistance Payments (HAP) average costs
per unit leased. The net effect was an increase in changes in net position.
7
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2017
Economic Factors
The Housing Authority is primarily dependent upon HUD and the USDA 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
Our financial report is designed to provide our citizens, taxpayers, and creditors with a
general overview of the Authority's finances and to show accountability for money it
receives. If you have questions or need further clarification regarding the financial
statements, contact Mr. Oscar Hentschel, Executive Director, Collier County Housing
Authority, 1800 Farm Worker Way, Immokalee, FL 34142, telephone number (239)657-
- 3649.
8
Collier County Housing Authority
Immokalee, Florida
Statement of Net Position - Proprietary Fund Type
September 30, 2017
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current Assets:
Cash and cash equivalents $ 838,704
Cash and cash equivalents-restricted 2,815,497
Investments- restricted 202,847
Tenants receivable, net
of allowance for doubtful accounts of$77,649 63,455
Accounts receivable-government 289,196
Accounts receivable-other 4,969
_ Prepaid expenses 160,721
Supplies inventory, net
of allowance for obsolescence of$3,458 31,118
Total current assets 4,406,507
Noncurrent Assets:
Capital Assets
Nondepreciable capital assets 2,568,712
Depreciable capital assets, net 4,425,234
Construction in progress 8,492,754
Total capital assets 15,486,700
Total noncurrent assets 15,486,700
Deferred Outflows of Resources -
Total assets and deferred outflows of resources $ 19,893,207
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,AND NET POSITION
Current Liabilities:
Accounts payable and accrued liabilities $ 781,272
Tenant security deposits 176,858
Accrued compensated absences 5,164
Accrued interest payable 8,604
Unearned revenue 103,036
Current maturities of notes payable 230,489
Current maturities of bonds payable 220,000
Total current liabilities 1,525,423
Noncurrent Liabilities:
Accrued compensated absences 46,472
Other liabilities (FSS escrow) 35,952
Notes payable 438,836
Bonds payable 5,183,000
Total noncurrent liabilities 5,704,260
Total liabilities 7,229,683
Deferred Inflows of Resources -
Net Position:
Net investment in capital assets 10,083,700
Restricted net position 2,805,534
Unrestricted net position (225,710)
Total net position 12,663,524
Total liabilities,deferred inflows of resources, and net position $ 19,893,207
See auditor's report.
The notes to the financial statements are an integral part of this statement.
9
Collier County Housing Authority
Immokalee, Florida
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Fund Type
For the Year Ended September 30, 2017
Operating revenues:
Tenant rental revenue (net) $ 2,343,109
HUD operating grants 3,609,316
Other government grants 3,979,017
Other revenue 379,727
Total operating revenues 10,311,169
Operating expenses:
Administration 1,036,214
Tenant services 27,212
Utilities 114,994
Ordinary maintenance 888,346
Protective services 24,319
General expenses 406,813
Casualty losses -
Housing assistance payments 3,587,224
Depreciation 655,109
Total operating expenses 6,740,231
Operating income 3,570,938
Nonoperating revenue and expense:
Interest expense (51,888)
Interest income 7,761
Net nonoperating expense (44,127)
Net income 3,526,811
Contributions - capital grants -
Increase in net position 3,526,811
Net position, beginning of year 9,136,713
Net position, end of year $ 12,663,524
See auditor's report.
The notes to the financial statements are an integral part of this statement.
10
Collier County Housing Authority
Immokalee, Florida
Statement of Cash Flows - Proprietary Fund Type
For the Year Ended September 30, 2017
Cash flows provided from operating activities:
Cash received from tenants and others $ 2,757,503
Cash paid for goods and services (1,443,757)
Cash paid to employees for services (870,613)
Cash paid for housing assistance payments (3,587,224)
HUD PHA grants received 3,609,316
Other government grants 3,751,793
Net cash provided from operating activities 4,217,018
Cash flows used by capital and related financing activities:
Acquisition of capital assets (5,874,982)
Payments of interest on notes and bonds (51,888)
- Payments of principal on notes and bonds (186,512)
Proceeds from notes and bonds payable 2,138,109
Net cash used by capital and related financing activities (3,975,273)
Cash flows used by investing activities:
Interest on investments 8,893
Purchase of investments, net (202,847)
Net cash flows used by investing activities (193,954)
Net increase in cash and cash equivalents 47,791
Cash and cash equivalents, beginning of year 3,606,410
— Cash and cash equivalents, end of year $ 3,654,201
Reconciliation of operating income to net
cash provided from operating activities:
Operating income: $ 3,570,938
Adjustments to reconcile operating income to
net cash provided from operating activities:
Depreciation 655,109
Increase in tenants, accounts receivable - government,
accounts receivable - other (218,056)
Increase in prepaid expenses (11,643)
Decrease in supplies inventory 1,014
Increase in accrued compensated absences 15,714
_ Decrease in unearned revenue (509)
Increase in accounts payable, accrued liabilities
and security deposits 200,794
Increase in other liabilities 3,657
Total adjustments 646,080
Net cash provided from operating activities $ 4,217,018
_ Non-cash activity
1. Accounts receivable and proceeds from bonds payable are net of$601,253 from the USDA for
bond proceeds accrued in the prior year.
2. Accounts payable and acquisition of capital assets are net of$371,251 for the difference of the
prior year liability to a contractor for construction in progress of$861,835 less the liability to the
contractor in the current year of$490,584.
See auditors report.
The notes to the financial statements are an integral part of this statement.
11
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
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
manifestation of oversight responsibility including financial accountability, appointment of a voting
majority, imposition of will, financial benefit to or burden on a primary organization, financial
accountability as a result of fiscal dependency, potential for dual inclusion, and organizations
included in the reporting entity although the primary organization is not financially accountable. Based
upon the application of these criteria, the reporting entity has the following component units.
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. However, effective in the September 30, 2017 fiscal year the entity was
dissolved and is no longer a component unit.
12
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
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
corporation organized, incorporated and controlled, by the Collier County Housing Authority for the
advancement of affordable housing.
C. Basis of Presentation and Accounting: In accordance with uniform financial reporting standards
for HUD housing programs, the basic financial statements are prepared in accordance with U.S.
generally accepted accounting principles (GAAP).
Based upon compelling reasons offered by HUD,the Authority reports its basic financial statements
as a special purpose government engaged solely in business-type activities, which is similar to the
governmental proprietary fund type (enterprise fund),which uses the accrual basis of accounting and
— the flow of economic resources measurement focus. Revenues are recorded when earned and
expenses are recorded at the time the liabilities are incurred. Pursuant to 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. The statement of net position of the Authority reports
$2,805,534 of restricted net position, which consists of the following:
USDA sinking fund (Note 8) $ 49,348
USDA sinking fund reserve replacement (Note 8) 2,754,056
HCV HAP reserves 2,130
Total restricted net position $ 2,805,534
13
- COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 1: Summary of Significant Accounting Policies: (Continued)
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.
__ 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: Interprogram 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, 2017 including cash, investments,accounts receivable,and accounts payable closely
approximates fair value.
14
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
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
3. Maintenance and Repairs Expenditures: Maintenance and repairs expenditures are
charged to operations when incurred. Betterments in excess of$500 are capitalized. When
buildings and equipment are sold or otherwise disposed of, the asset account and related
accumulated depreciation account are relieved, and any gain or loss is included in
operations.
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.
15
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
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.
Q. 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.
16
— COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
_ Notes to Financial Statements
September 30, 2017
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, 2017, 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 at September 30, 2017.
Carrying
— Deposits and Investments: Value
Demand Deposits 3,654,201
Investments (certificates of deposit) - restricted 202,847
— $ 3,857,048
Restricted cash consists of the following:
HCV HAP reserves $ 2,130
USDA sinking fund reserve replacement (cash) 2,600,557
HCV family self sufficiency escrows 35,952
Tenant security deposits 176,858
$ 2,815,497
— 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.
17
— COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
— Notes to Financial Statements
September 30, 2017
NOTE 2: Deposits and Investments: (Continued)
D. Deposit and Investment Risks (Continued)
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, 2017,
— the Authority was not exposed to custodial credit as defined above.
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 (except for certificates of deposit
which are insured by the FDIC) as of September 30, 2017.
— 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, 2017,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$77,211) $ 53,239
Fraud receivables (net of allowance for doubtful accounts of$438) 10,216
$ 63,455
Due from Other Governments
Rural Rental Assistance (September 30, 2017 allocation) $ 53,150
Receivable from USDA on grant proceeds 216,521
Due from other Housing Authorities 9,114
Miscellaneous 10,411
$289,196
18
— COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 4: Interprogram Receivables and Payables
Business
USDA Activities HCV ROSS COCC Total
A/R- USDA $ - $ 1,698,818 $ - $ - $ (32,576) $1,666,242
-- A/P- BusinessActivities (1,698,818) - - - 7,787 (1,691,031)
A/R- HCV - - - 8,996 (18,989) (9,993)
A/R- ROSS - - (8,996) -
(8,996)
— A/P- COCC 32,576 (7,787) 18,989 - - 43,778
$(1,666,242) $ 1,691,031 $ 9,993 $ 8,996 $ (43,778) $ -
Intercompany Receivable $ 1,698,818 $ 81,151 $ 8,996 $ - $ 94,518 $1,883,483
Intercompany Payable (32,576) (1,772,182) (18,989) (8,996) (50,740) (1,883,483)
$ 1,666,242 $(1,691,031) $ (9,993) $ (8,996) $ 43,778 $ -
All interprogram receivables and payables have been eliminated on the financial statements.
NOTE 5: Prepaid Expense
— Prepaid insurance at September 30, 2017 was 160,721.
NOTE 6: Capital Assets
The capital assets (at cost) of the Collier County Housing Authority at September 30, 2017 consisted of
the following:
Balance at Balance at
Sept. 30,2016 Additions Deletions Transfers Sept. 30, 2017
_ Nondepreciable capital assets:
Land $ 2,568,713 $ - $ (1) $ - $ 2,568,712
Construction in progress 3,163,003 5,329,751 - - 8,492,754
5,731,716 5,329,751 (1) - 11,061,466
Depreciable capital assets:
Buildings and improvements 29,865,916 163,691 - - 30,029,607
Furniture, equipment,vehicles 2,240,365 10,292 - - 2,250,657
— 32,106,281 173,983 - - 32,280,264
Accumulated Depreciation:
Buildings and improvements (25,221,342) (620,526) - - (25,841,868)
— Furniture, equipment,vehicles (1,978,577) (34,583) (2) - (2,013,162)
(27,199,919) (655,109) (2) - (27,855,030)
Total Capital Assets, net $ 10,638,078 $ 4,848,625 $ (3) $ - $ 15,486,700
19
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 7: Long-Term Debt:
A. The outstanding balance of Line of Credit Notes in the Business Activities (Horizon Village) at
September 30, 2017 was $259,961.
Interest and principal shall be paid as follows:
a. Annual principal payments of$20,000 each plus accrued interest shall be payable in arrears
on the 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.
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, 2017 was $259,961. The notes are
payable each year in the amounts listed below:
September 30, Principal Interest Total
2018 $ 20,000 $ 7,799 $ 27,799
2019 20,000 7,199 27,199
2020 20,000 6,599 26,599
2021 20,000 5,999 25,999
2022 20,000 5,399 25,399
2023-2027 100,000 17,994 117,994
2028-2030 59,961 3,596 63,557
$ 259,961 $ 54,585 $ 314,546
Interest expense for the year ended September 30, 2017 was $8,358. There was no capitalized
interest expense for the year ended September 30, 2017.
20
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 7: Long-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,
2017 was $161,978. The notes is payable each year in the amounts listed below:
September 30, Principal Interest Total
2018 $ 30,224 $ 5,181 $ 35,405
2019 31,299 4,106 35,405
2020 32,413 2,992 35,405
2021 33,565 1,839 35,404
2022 34,477 646 35,123
$ 161,978 $ 14,764 $ 176,742
C. Line of Credit promissory note to bank in the amount of $249,000 (dated March 18, 2017) at an
interest rate of 4.0%. The outstanding balance of the notes payable at September 30, 2017 was
$166,919. The line of credit matures on March 18, 2018 and is due on demand (all current).
Collateralized by a mortgage on real property and rents.
NOTE 8: Long Term Debt:
Revenue Bonds Payable: Capital facilities are financed by debt which is guaranteed and subsidized by
U. S. Department of Agriculture, Rural Housing Services (RHS). The Authority presently has bonds
payable on its farm laborer housing projects which are due annually in installments of varying principal
and interest amounts. Revenue bonds payable at September 30, 2017 are as follows:
Collier County Housing Authority Revenue Bonds, Series D, 1%, due
annually on September 1 in principal amounts of$24,380 to $33,000 with
interest to September 1, 2023 $ 191,000
Collier County Housing Authority Revenue Bonds, Series E, 1%, due
annually on September 1 in principal amounts $27,000 to $36,000 with
interest to September 1, 2031 474,000
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 738,000
Collier County Housing Authority Revenue Bonds, Series G (2015), 1%, due
annually on September 1 in principal amounts of$111,000 to $149,000 with
interest to September 1, 2048 4,000,000
Total long-term debt 85,403,000
21
- COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 8: Long Term Debt: (Continued)
- The revenues of the project are pledged to the payment of principal and interest on the revenue bonds.
The bonds are redeemable before maturity, at the option of the Authority, in inverse numerical and
maturity order, on any interest payment date upon giving 40 days written notice to Rural Housing
- Services. Maturities of long-term debt for each of the five succeeding years and in the aggregate are as
follows at September 30, 2017:
Bond Principal 2015
- Series D Series E Series F Series G Total
2018 $ 31,000 $ 32,000 $ 46,000 $ 111,000 $ 220,000
2019 31,000 32,000 46,000 112,000 221,000
2020 32,000 32,000 47,000 113,000 224,000
2021 32,000 33,000 47,000 114,000 226,000
2022 32,000 33,000 48,000 115,000 228,000
- 2023-2027 33,000 170,000 246,000 594,000 1,043,000
2028-2032 0 142,000 258,000 623,000 1,023,000
2033-2037 0 0 0 656,000 656,000
- 2038-2042 0 0 0 689,000 689,000
2043-2047 0 0 0 723,100 723,100
2048 0 0 0 149,900 149,900
- $ 191,000 $ 474,000 $ 738,000 $ 4,000,000 $ 5,403,000
Bond interest 2015
Series D Series E Series F Series G Total
2018 $ 1,910 $ 4,740 $ 7,380 $ 40,000 $ 54,030
2019 1,600 4,420 6,920 38,890 51,830
_ 2020 1,290 4,100 6,460 37,770 49,620
2021 970 3,780 5,990 36,640 47,380
2022 650 3,450 5,520 35,500 45,120
2023-2027 330 12,240 20,330 159,990 192,890
2028-2032 0 3,570 7,770 129,710 141,050
2033-2037 0 0 0 97,640 97,640
2038-2042 0 0 0 63,880 63,880
- 2043-2047 0 0 0 26,881 26,881
2048 0 0 0 1,499 1,499
$ 6,750 $ 36,300 $ 60,370 $ 668,400 $ 771,820
Sinking Fund Debt Service Account: Under the terms of the revenue bonds, a sinking fund has been
established to provide debt service funding.After operation and maintenance requirements are met,the
- Authority transfers to the sinking fund debt service account such amounts as may be due of interest and
principal on the bonds. The amount required to be transferred during the year ended September 30,
2017 in order to meet debt service requirements was $162,200 which was accomplished. The cash
- balance in the sinking fund debt service account at September 30, 2017 was $49,348.
22
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 8: Long Term Debt: (Continued)
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 $41,667 (effective
November 2016) 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 ($10,000,000 effective with the new
Series G bond issue). There were $487,690 deposits made into the account during the year. The
aggregate deposits to the reserve account and interest earned for the year ended September 30, 2017
were$2,754,056 (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 ($10,000,000 effective with the new
Series G bond issue), to purchase bonds before maturity in the prescribed manner.
Supplemental Information: (Schedule of Funding Reserve)
a. Investment Reserve Funds
Sinking Fund Debt Service Account (Principal and Interest)
Beginning balance $ 30,780
Transfers to Debt Service Account including interest earned 162,200
Withdrawals for payment of principal and interest ( 143,632)
Ending balance $ 49,348
Sinking Fund Reserve Replacement Account
Beginning balance - less transfers to replacements and operations $ 2,472,004
Transfers to reserves including interest earned — net 487,690
Use of reserves for capital improvements ( 205,638)
Ending balance $ 2,754,056
23
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 8: Long Term Debt: (Continued)
Total Investment Reserve Fund $ 2,754,056
Fully Funded Balance per Loan Agreement 10,000,000
Excess/(Deficiency) of Reserves on Hand $( 7,254,944)
As noted above the Authority was required to increase its monthly reserve funding to$41,667
(effective November 2016) for the new fund balance requirement effective with the new
Series G bond issue.
b. Compliance with Bond Indentures Requirements:The Collier County Housing Authority, Farm
Worker Village, has met and exceeded the bond indenture and reserve requirements outlined in
this report (except as noted above that it has not yet reached it fully funded balance effective the
with new Series G bond issue), as reported in this note,when considering approved withdrawals
from Rural Development for long-term improvements.All interest earnings on invested funds are
deposited monthly by the Bank directly into the Housing Authority's cash account and transferred
to the reserve account.
Construction Fund The construction fund is used to account for grant and loan funds received from
Rural Housing Services and other sources and to record construction activities. During the year ended
September 30, 2017, expenditures from the Construction Fund were used 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, 2017 was $80,468. The loan is
payable each year in the amounts and at the interest (at 0% interest) listed below:
September 30, Principal Interest Total
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 13,412 0 13,412
2023 13,408 0 13,408
$ 80,468 $ 0 $ 80,468
Interest expense for the year ended September 30, 2017 was $0. There was no capitalized interest
expense for the year ended September 30, 2017.
24
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 9: State Housing Initiatives Partnership Business Activities(Horizon Village) Loan: (Continued)
Interest: Interest on this Note shall be zero percent (0%) per annum; except that if the Authority fails to
pay this Note as required,the interest rate shall be twelve percent(12%) per annum from the date when
payment of this Note is due until the Authority pays it in full. The Authority did not fail to pay the principal
payment for FY 2017 and is therefore not required to pay future payments at 12% interest as of FY2017.
Payments: Principal payments shall be deferred for a period of three years from date disbursed with
seventeen equal yearly payments of$13,412 due beginning on September 1, 2007 and continuing for
seventeen years thereafter until payment in full of $228,000 is received on August 1, 2024. The
Authority's total payment shall be $228,000.
NOTE 10: Schedule of Changes in Noncurrent Liabilities:
September 30,2016 September 30,2017
Long-Term Current Long-Term
Portion Portion Additions Payments Portion Current Portion
Compensated Absences $ 32,330 $ 3,592 $ 15,714 $ - $ 46,472 $ 5,164
Other Liabilities(FSS Escrow) 32,295 - 3,657 - 35,952 -
Notes Payable 502,321 244,517 - (77,513) 438,836 230,489
Bonds Payable 3,866,143 109,000 1,536,857 (109,000) 5,183,000 220,000
$ 4,433,089 $ 357,109 $ 1,556,228 $ (186,513) $ 5,704,260 $ 455,653
NOTE 11: Schedule of Changes in Net Position:
Net Investment Restricted Unrestricted
In Capital Assets Net Position Net Position Total
Balance, beginning of year 6,662,935 2,589,094 (115,316) 9,136,713
Changes in net position - - 3,526,811 3,526,811
Changes in net investment in capital assets 3,420,765 - (3,420,765) -
Changes in restricted net position - 216,440 (216,440) -
Balance,end of year $ 10,083,700 $ 2,805,534 $ (225,710) $ 12,663,524
NOTE 12: Pension Plan:
Effective October 1, 2016, the Authority adopted the Housing Agency Retirement Trust (the "Plan"),
which is a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts
contributed to the plan plus investment earnings. All of the Authority's full time regular employees are
eligible to participate in the plan after completing one year of continuous service. Under the Plan, the
Authority matches the employee pre-tax deferral contributions up to 3%. All participating employees vest
in the Employer contributions at the rate of fifty percent (50%) for each full year of continuous
employment with the Authority.
25
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 13: Annual Contributions from HUD:
Annual Contributions Contract A-3402—Section 8 programs provide for housing assistance payments to
private owners of residential units on behalf of eligible low or very low-existing and moderately
rehabilitated housing covering the difference between the maximum 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, 2017 were
$3,582,568.
NOTE 14: Economic Dependency
The Authority receives approximately 74% of its revenues from the U.S. Department of Agriculture and
the U.S. Department of Housing and Urban Development (HUD). If the amount of revenues received
from these federal agencies falls below critical levels, the Authority's reserves could be adversely
affected.
NOTE 15: Commitments and Contingencies
Commitments
As of September 30, 2017, the Authority has a purchase commitment with a general contractor in the
amount of $9,810,469 related to rehabilitation of United States Department of Agriculture ("USDA")
Farm Labor Housing units. The costs incurred to the contractor as of September 30, 2017 were
$7,379,909. The construction project is being 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 (total earned by the Authority
and recognized as income as of September 30, 2017 was$3,298,093). An additional $4,000,000 was
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%
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, 2017.
26
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 15: Commitments and Contingencies (Continued)
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
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. 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,
2017 is$1,698,818. These interprogram receivables and payables have been eliminated on the financial
statements.
Other Contingency
In September 2017, the Authority was affected by Hurricane Irma which caused significant roofing
damage (shingles) to the Authority owned property (including housing units). However, the affected
properties and units were still livable and did not cause tenants to look for alternative housing as most of
the damage can easily be repaired. The cost to repair and and/or replace the shingles is estimated to be
roughly$1,275,000, of which insurance will cover approximately$500,000. The Authority has applied for
FEMA aid to offset the costs of the repairs.
Litigation
As of September 30, 2017,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 16: Related Party Transactions
There were no related party transactions for the year ended September 30, 2017.
27
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2017
NOTE 17: Leasing Activities (as Lessor):
The Authority is the lessor of dwelling units mainly to low-income residents. The rents under the leases
are determined generally by the resident's income as adjusted for eligible deductions regulated by HUD
and Rural Development. Leases may be cancelled by the lessee at any time. The Authority may cancel
the lease only for cause.
Revenues associated with these leases are recorded in the basic financial statements and schedules as
"Rental Revenue". Rental Revenue per dwelling unit generally remains consistent from year to year, but
is affected by general economic conditions which impact personal income and local job availability.
NOTE 18: Operating Leases:
The Authority is committed under a continuing non-cancelable lease for office space. This lease has
been accounted for as operating leases in the accompanying basic financial statements. The office lease
is not subject to an annual escalation clause. Future minimum lease payments required under these
leases are as follows:
Future minimum lease payments required under these leases are as follows:
September 30, Office Space
2017-2018 $ 34,214
2018-2019 $ 8,596
NOTE 19: 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 22, 2018 and concluded that
nothing occurred subsequent to the balance sheet date that would require disclosure in the Notes to
the Financial Statements.
28
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2017
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, 2017, 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 05/01/17-05/01/18
Opticom Insurance Workers'Compensation Statutory 10/01/16-10/01/17
Florida PH Authority Insurance Automobile liability $1,000,000 05/01/17-05/01/18
Florida PH Authority Insurance Property, Office Building& Personal $44,169,134 05/01/17-05/01/18
— Property. Fire&Extended Coverage
(90% coinsurance)
Florida PH Authority Insurance General Liability Personal Injury, $1,000,000 Occ 05/01/17-05/01/18
products, advertising, property damage $2,000,000 Agg 05/01/17-05/01/18
US Liability Insurance Directors&Officers Liability $1,000,000 05/01/17-05/01/18
PHASIF Directors&Officers Liability $1,000,000 05/22/17-05/22/18
Fidelity & Deposit Company Employee dishonesty $103,000 05/01/17-05/01/18
ITT Harford Insurance Company Employee dishonesty (ERISA Bond) $100,000 05/01/17-05/01/18
Beazley Cyber Liability $1,000,000 05/01/17-05/01/18
2. Exemption from Real Estate and Income Taxes-The Authority is a public body corporate and
politic pursuant to Chapter 421, Laws of the State of Florida, which is subsidized by the federal
government.The Authority is not subject to federal,state income taxes,or local property taxes, nor is
it required to file federal and state income tax returns as a public body corporate and politic pursuant
to Chapter 423, Laws of the State of Florida Laws of the State of Florida.
3. Reserves-The Housing Authority has maintained adequate reserves for operations and Bond debt
service at September 30, 2017. 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.
31
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2017
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, 2017.
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 22, 2018.
We have also issued a report dated February 22, 2018, 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.
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, 2017. 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, 2017 — See the
schedule of findings and questioned cost as well as the management letter dated February 22,2018
for any findings and management comments.
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, 2017 totaling
$49,391 were accounts aged at ninety days (90) or less.
11. Accounts Payable consists of$248,794 at September 30, 2017. This balance which is payable to
recurring 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$141,950 were charged by the COCC.
32
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
-" Supplemental Information
September 30, 2017
13. Schedule of Financial Institutions Where the Housing Authority Maintains its Bank Accounts
Reconciled
Balance(considers
deposits in-transit
and outstanding
Name of Financial Institution Account Name Bank Balance checks) Classification
First 1 Bank USDA Reserve Account $2,551,209 $2,551,209 USDA Restricted
1300 N. 15 St Suite 2 COCC Account 13,036 7,777
Immokalee, FL 34142 COCC Payroll Account 15,752 15,752
COCC Insurance Reserve 5,385 5,385
CCHA Land, Inc. 31,231 31,231
AB Revenue Account 21,413 9,592
AB Security Deposit Fund 94,357 93,345
Section A&B Insurance Reserve 50,500 50,500
Horizon Village Operating 62,801 61,360
Horizon Village Insurance Reserve 7,500 7,500
= 2,853,184 2,833,651
First Florida Integrity Bank
PO Box 10910 Security Deposit Fund USDA 86,602 84,861
Naples, FL 341 01-091 0 Certificates of Deposit(2) 202,015 202,847 USDA Restricted
Bond&Sinking Fund 49,348 49,348 USDA Restricted
Revenue Account USDA 116,632 116,632
TBRA HOME Operating 58,833 63,178
Section 8-Admin Funds 170,666 168,771
Section 8- HAP 47,752 39,487
Construction Account 366,716 100
Family Self Sufficiency 34,384 34,384
0&M Operating 209,134 172,559
COCC Laundry 9,457 9,192
COCC Residential Portal 3,611 9,192
USDA Insurance Reserves 70,000 70,000
Section 8 Admin Insurance Reserves 6,856 6,856
1,432,006 1,027,407
Petty Cash&Misc - 5,182
$ 4,285,190 $ 3,866,240
The above amounts were confirmed with the institutions listed at September 30, 2017.
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.
33
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2017
15. Schedule of Changes in Owners and Board of Commissioners -This is a local Public Authority
and can never change its owners. The following is a list of the current Board of Commissioners.
Commissioner Expiration of Term Address
Rebecca M. Vaccariello November 7, 2017 Naples, Florida
David B. Genson November 7, 2018 Naples, Florida
Randolph B. Cash October 17, 2018 Naples, Florida
16. Schedule of Rental Information
Number of Gross Potential
Unit Size Units Rental Rate Months Rent
One bedroom unit 33 $ 475 12 $ 188,100
Two bedroom unit 111 530 12 705,960
Three bedroom unit 102 577 12 706,248
Four bedroom unit 69 599 12 495,972
315 $ 2,096,280
The Authority is demolishing/converting 50 units and rehabilitating the
remaining 315 units. The rehabilitation project started in early 2016.
Actual Rental Revenue Percentage Amount
Tenants 56.61% $ 849,237
RHA rental assistance subsidy 43.39% 650,924
$1,500,161
Note 1- Rental rates were effective January 1, 2017. Management
provides for the monthly collection of rent.
17. Real Estate Taxes -The Authority is a local public body corporate and politic and is tax exempt by
State of Florida, Section 423.
34
l{rrrnirr;.tuthoriti.
— v �
USDA Rural Development Office February 22, 2018
420 South State Road 7
Suite#166
Royal Palm Beach, FL 33414
In accordance with the criteria specified in Section 5; Paragraph 4.32 C. of the USDA Rural Development
Handbook(HB-2-3560)for the year ended September 30, 2017, the borrower must self-certify that Collier
County Housing Authority(the Authority)is in compliance with the nine performance standards.The following
is a summary of our compliance with the performance standards.
1. The required accounts are properly maintained and tracked separately. The accounts we maintain
are marked below:
X Operating Account(s) X Security Deposit Account
X Tax and Insurance Account X Reserve Account
X Other Accounts: Debt Service
2. The payments from operating account(s) are disclosed and accurately represented.
3. The reserve account(s):
a. is on schedule with the Agency required minimum funding requirements;
b. is maintained in a supervised bank account that requires the Agency's countersignature on all
withdrawals;
c. is on .schedule with contributions to the reserve account for the current year with the Agency
required minimum funding; and
d. has no encumbrances on the reserve funds.
4. The tenant security deposits accounts are fully funded and are maintained in separate accounts.
5. The payment of owner return was: Not Applicable (owner is a government entity)
—' N/A paid in the amount of$-0-for the 2017 fiscal year and was in accordance with the Agency's
requirements OR
N/A not paid during the reporting year OR
N/A not allowable due to our nonprofit status OR
N/A not allowable due to our nonprofit status.An asset management fee in the amount of$-0 was
paid for 2017 fiscal year.
35
— 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.
Oscar Hentschel, Executive Director
Collier County Housing Authority
36
11111111Barton, 13137- 66th Street,Largo,FL 33773
...�� Gonzalez Phone:(727)344-1040 Fax: (727) 533-8483
& Myers, P.A. www.bartoncpas.com
Certified 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, 2017, 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 22, 2018.
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
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 and therefore, material weaknesses or significant deficiencies may exist that have
not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. We did identify a certain deficiency in internal control,
described in the accompanying schedule of findings and questioned costs as finding 2017-001 that we
consider to be a significant deficiency.
37
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.
The Authority's Response to Findings
The Authority's response to the findings identified in our audit is described in the accompanying corrective
action plan.The Authority's response was not subjected to the auditing procedures applied in the audit of the
financial statements and, accordingly, we express no opinion on it.
We also noted certain other matters that we reported to management of the Authority in a separate letter
dated February 22, 2018.
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.
1 6 Ai 407, ir di) 4.
Barton, Gonzalez& Myers, P.A.
Certified Public Accountants
February 22, 2018
38
r Barton, 13137 - 66th Street,Largo,FL 33773
...��. Gonzalez
— Phone:(727)344-1040 Fax: (727) 533-8483
& Myers, P.A.
www.bartoncpas.com
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, 2017. The Authority's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of findings and
questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its
federal awards 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.
Unmodified Opinion Each Major Federal Program
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 major federal programs
for the year ended September 30, 2017.
39
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance which is required to be reported in
accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and
questioned costs as item 2017-002.Our opinion on each major federal program is not modified with respect to this
matter.
The Collier County Housing Authority's response to the noncompliance finding 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
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.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions,to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely
basis.A material weakness in internal control over compliance is a deficiency,or a combination of deficiencies, in
internal control over compliance,such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented,or detected and corrected,on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less severe
than a material weakness in internal control over compliance, yet important enough to merit attention by those
— charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph
— of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies and therefore,material weaknesses or significant deficiencies may
exist that have not been identified.We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, we identified a certain deficiency in internal control over
compliance, as described in the accompanying schedule of findings and questioned costs as item 2017-002 that
we consider to be a significant deficiency.
The Authority's response to the internal control over compliance findings identified in our audit is described in the
accompanying schedule corrective action plan. The 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.
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.
Zfel' * I/ , 4.
Barton, Gonzalez & Myers, P.A.
Certified Public Accountants
February 22, 2018
40
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Schedule of Findings and Questioned Costs
September 30, 2017
Section I - Summary of Auditor's Results:
Financial Statements
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? Yes
Noncompliance material to the financial statements noted? No
Federal Awards
Internal controls over major program:
Material weakness(es) identified? No
Significant deficiencies identified not considered
to be material weaknesses? Yes
Type of reports issued on the compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR section 200.516(a)? Yes
Identification of major program: 14.871 Section 8 — Housing Choice Voucher
10.427 Rural Rental Assistance Payments
10.405 Farm Labor Housing Loans and Grants
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Did the Authority qualify as a low-risk auditee? No
41
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
-- Schedule of Findings and Questioned Costs
September 30, 2017
Section II - Financial Statement Findings:
The finding relating to this area for the year ended September 30, 2017 is as followed:
2017-001 Inadequate Controls Over Financial Reporting Due to Not Recording Contract Retainaqe
Significant Deficiency in Internal Control
Condition: The Authority did not have adequate controls over the period-end financial reporting
— process to detect significant misstatements. The Authority did not properly record entries related to
construction in progress and accrued liabilities.
-- Criteria: The Authority should have the necessary controls over the period-end financial reporting
process to detect significant misstatements without Auditor detection.
Questioned Cost: None
Effect:As a result of the audit, the Authority increased construction in progress and accrued liabilities
by $490,523 for construction retainage due to the contractor. However, this had no impact on net
position or revenues and expenses as the adjustment merely increased total assets and total
liabilities. As such, it is not considered a material weakness over financial reporting.
Cause: The Authority did not have the necessary controls over the period-end financial reporting
process to detect contractor retainage.
Recommendation: The Authority should establish controls to ensure that appropriate year-end
adjustments are recorded so that the financial statements are properly adjusted, including retainage
on construction contracts.
Views of Responsible Officials of the Auditee: We concur with the recommendation. We have been
working on a continuous basis with our fee accountant to ensure the accuracy of our financial
statements. The error discovered is related to the rehabilitation project in progress and is an isolated
error which also has no effect on the financial position of the Housing Authority. We take any
deviation in the accuracy of our financial statements seriously. We will review our procedures to
determine why the error was not caught by existing internal controls. Upon preliminary review, this
appears to be an isolated issue as noted above, however internal control procedures will be
reviewed, and revisions will be implemented as appropriate, to prevent any future similar issues.
42
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Schedule of Findings and Questioned Costs
September 30, 2017
Section III - Federal Awards:
The following finding was disclosed relating to this area for the year ended September 30, 2017:
2017-002 HCV Tenant Files
Program: U.S. Department of HUD: Section 8 — Housing Choice Voucher (CFDA 14.871)
Significant Deficiency in internal Control
Other matter required to be reported in accordance with the Uniform Guidance
Repeat of Prior year Finding 2016-002 (and 2015-003 from September 30, 2015)
Statement of Condition: The Authority did not have adequate controls over tenant files to assure
-- it is maintaining adequate documentation. We noted the following exceptions in 25 files tested:
• 3 files where an incorrect utility allowance amount was used. As a result, the monthly HAP
rent was impacted by $24 and $15 per month (for two files) and $0 for the third file.
• 1 tenant file where the income was not calculated correctly resulting in $1 per month impact
to the HAP rent.
• 1 file where there was no evidence of the rent reasonableness being considered (the form
was missing from the file).
Criteria: 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 is not complying with HUD rules regarding tenant verifications and
documentation.
Cause: The Authority had some employee turnover in the HCV program and the Authority did not
maintain adequate controls over required documentation in tenant files.
Recommendation: The Authority should establish controls 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. The
Authority has established controls to ensure that HUD program requirements are being followed.
The errors appear related to high personnel turn-over during this year. To prevent future errors in
tenant files, we will review our supervisory procedures and improve supervisory control over the
tenant files, along with revising the training protocol for both management and employees. The
revised protocol will include a quality control check in addition to management's review of a
percentage of all tenant files to ensure accuracy is being achieved, along with increased training
for all personnel.
43
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Summary Schedule of Prior Year Findings
September 30, 2017
The prior audit report for the year ended September 30, 2016 contained the following findings.
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.
• 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.
Status
The finding has been corrected.
44
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Summary Schedule of Prior Year Findings
September 30, 2017
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.
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.
Status
Although the EIV system use is now being properly documented, the Authority has a significant
deficiency in the current year regarding tenant certifications and documentation. See current
year Finding 2017-002.
45
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Corrective Action Plan
September 30, 2017
The following is the corrective action planned by the Authority regarding the current findings:
Finding
No.
2017-001 Inadequate Controls Over Financial Reporting Due to Not Recording Contract Retainaqe
Financial Statement Finding
Significant Deficiency in Internal Control
Condition: The Authority did not have adequate controls over the period-end financial reporting
process to detect significant misstatements. The Authority did not properly record entries related to
construction in progress and accrued liabilities.
Recommendation: The Authority should establish controls to ensure that appropriate year-end
adjustments are recorded so that the financial statements are properly adjusted, including retainage
on construction contracts.
Action Taken: We concur with the recommendation. We have been working on a continuous basis
with our fee accountant to ensure the accuracy of our financial statements. The error discovered is
related to the rehabilitation project in progress and is an isolated error which also has no effect on the
financial position of the Housing Authority. We take any deviation in the accuracy of our financial
statements seriously. We will review our procedures to determine why the error was not caught by
existing internal controls. Upon preliminary review, this appears to be an isolated issue as noted
above, however internal control procedures will be reviewed, and revisions will be implemented as
appropriate, to prevent any future similar issues.
2017-002 HCV Tenant Files
Federal Award Finding
Program: U.S. Department of HUD: Section 8— Housing Choice Voucher (CFDA 14.871)
Significant Deficiency in Internal Control
Other matter required to be reported in accordance with the Uniform Guidance
Repeat of Prior year Finding 2016-002 (and 2015-003 from September 30, 2015)
-- Statement of Condition: The Authority did not have adequate controls over tenant files to assure
it is maintaining adequate documentation. We noted the following exceptions in 25 files tested:
• 3 files where an incorrect utility allowance amount was used. As a result, the monthly HAP
rent was impacted by $24 and $15 per month (for two files) and $0 for the third file.
• 1 tenant file where the income was not calculated correctly resulting in $1 per month impact
_ to the HAP rent.
• 1 file where there was no evidence of the rent reasonableness being considered (the form
was missing from the file).
46
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Corrective Action Plan
September 30, 2017
2017-002 HCV Tenant Files (continued)
Recommendation: The Authority should establish controls 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. The Authority has established controls to
ensure that HUD program requirements are being followed. The errors appear related to high
personnel turn-over during this year. To prevent future errors in tenant files, we will review our
supervisory procedures and improve supervisory control over the tenant files, along with revising
the training protocol for both management and employees. The revised protocol will include a
quality control check in addition to management's review of a percentage of all tenant files to
ensure accuracy is being achieved, along with increased training for all personnel.
Effective Date: February 22, 2018
Contact Information
Oscar Hentschel, Executive Director
Collier County Housing Authority
1800 Farm Worker Way
-- Immokalee, FL 34142
(239) 657-3649
47
Collier County Housing Authority
Immokalee, Florida
Schedule of Expenditures of Federal Awards
For the Year Ended September 30,2017
Federal Program or Disbursements
CFDA Award or
FEDERAL GRANTOR Number Amount Expenditures
U.S. Department of Agriculture
Farm Labor Housing Loans and Grants * + 10.405 $ 8,701,093 $ 8,701,093
Rural Rental Assistance Payments ** + 10.427 650,924 650,924
Total U.S. Department of Agriculture 9,352,017 9,352,017
U.S. Department of HUD
Section 8 Housing Assistance Payments
Housing Choice Voucher Program * + 14.871 3,582,568 3,582,568
Resident Opportunity&Supporting Services ** 14.870 26,748 26,748
Total U.S. Department of HUD 3,609,316 3,609,316
TOTAL $ 12,961,333 $ 12,961,333
Notes to the Schedule of Expenditures 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 $ 3,609,316
FDS Line 70800 Other Government Grants 3,979,017
FDS Line 343&351 Farm Labor Housing Loan Debt 5,403,000
12,991,333
FDS Line 70800 Less for Non-Federal Grants (30,000)
$ 12,961,333
C. Other Considerations in Determining Major and Non-major Program Requirements
The Authority is administering housing under the U.S.Department of Agriculture's Rural Housing Services Program.The financing
for construction of this housing project was provided by the Agency for Farm Labor Housing Loans&Grants(Federal CFDA#10.405).
At September 30,2017,the balance of the long-term debt due to the U.S.Department of Agriculture's Rural Housing Services was
$5,403,000.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.
48
Barton, 13137 - 66th Street,Largo,FL 33773
...�� Gonzalez Phone:(727)344-1040 Fax: (727) 533-8483
& Myers, P.A. www.bartoncpas.com
• / Certified Public Accountants
February 22, 2018
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, 2017, 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 certain matters that are an opportunity for strengthening
internal controls and operating efficiency.This letter does not affect our report dated February 22,2018,on
the financial statements of the Collier County Housing Authority.
We will review the status of these comments during our next audit engagement.We have already discussed
these comments and suggestions with various Authority personnel, and we will be pleased to discuss it in
further detail at your convenience, to perform any additional study of these matters, or to assist you in
implementing the recommendations. Our comments are summarized as follows:
Prior year management comments that continue to apply:
None.
Current year management comments:
1. USDA Over/Under Housing - generally, the Authority will use certain standards to avoid
-- overcrowding and prevent waste of space.These standards are based on the assumption that each
bedroom will accommodate no more than two (2) persons. Such standards may be waived when
necessary to house families of urgent need or unusual family composition. The Authority receives
verbal approval (waiver)from the USDA for unit size accommodations (over/under housing). We
recommend the Authority receive written confirmation of the waiver from the USDA and have this
documented in the tenant file.
49
2. USDA MINC Billing-in 25 files tested, we noted 2 files where the MINC billing system did not agree
with the Form 3560-8 tenant certification (due to system errors in MING). We recommend the
Authority implement a system to compare the amounts billed in MINC to the amounts reported in the
3560-8 tenant certification and reconcile any differences.
3. Davis Bacon Act-the Davis Bacon Act requires the Authority to conduct interviews with employees
of contractors and subcontractors (where federal funds are being used for construction purposes)to
determine if the employee is being paid wages equal to or in excess of the prevailing wages for the
area. For the USDA Rehab project,the Authority hired a"clerk of works"to assure that construction
is progressing and to assure that compliance requirements are being adhered to. The Clerk is
present daily at the job site and is familiar with the workers and has a rapport with all the
subcontractors. The clerk has conducted interviews and knows the wages to expect and who
should be on site. Although it appears that the Authority is conducting employee interviews, it is not
properly documenting the interviews on HUD's Form HUD-11. We recommend that Authority use
the Form HUD-11 as it provides better documentation that the interviews are being conducted (the
form includes areas for the employee and interviewer to sign certifying and documenting the
interview).
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.
Sincerely,
16A/)1 a 4.4.
Barton, Gonzalez f z , P.A.
Certified Public Accountants
50
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