CCHA 2020 Annual Filing Notice II i
jjmc111;` �tirtlivrill
February 28, 2020
Crystal K. Kinzel
Clerk of the Circuit Court
Finance Department
3301 E. Tamiami Trail
Naples, Fl. 34112
Dear Mrs. Kinzel:
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 third
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, 2019.
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
2019-2020. 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,
learintr. r_
ler
Oscar I loptschel
Executive Director
Enclosures.
1800 Farm Worker Way,Immokalee FL 34142 www.cchafLora Ph:239-657-3649 Fax: 239-657-7232
• 1 •
011Silr; 1M/1r0141
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Board Meetings for the Collier County Housing Authority
For the year 2020
will be held on the third Tuesday of each month at 3:00 P.M.
at the office located at 1800 Farm Worker Way,Immokalee,Florida 34142.
Are scheduled as follows:
January 21,2020
February 18,2020
March 17,2020
April 21,2020
May 19,2020
June 16, 2020
July 21, 2020
August 18,2020
September 15,2020
October 20, 2020
November 17,2020
December 15,2020
Dates are subject to change, please check website:www.cchafLorg
61. A
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(� COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
AUDIT REPORT
For the Year Ended September 30, 2019
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COLUER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Table of Contents
September 30, 2019
Page
Independent Auditor's Report 1-2
Management's Discussion and Analysis(MD&A) 3-9
BASIC FINANCIAL STATEMENTS
Statement of Net Position - Proprietary Fund Type 10
Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Fund Type 11
Statement of Cash Flows- Proprietary Fund Type 12
k.
Notes to Financial Statements 13-29
SUPPLEMENTAL INFORMATION
Combining Schedule of Assets, Liabilities and Net Position 30
Combining Schedule of Revenues, Expenses and Changes in Fund Net Position 31
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Farm Worker Subsidized Housing Program 32-35
QCertificate of Borrower 36-37
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 38-39
J Independent Auditor's Report on Compliance for each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance 40-41
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Schedule of Findings and Questioned Costs 42-43
Summary Schedule of Prior Year Findings 44
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Corrective Action Plan 45
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 46
r� MANAGEMENT LETTER 47-48
FINANCIAL DATA SCHEDULE 49-54
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Barton, 13137-66th Street,Largo,FL 33773
Gonzalez Phone:(727)344-1040 Fax:(727)533-8483
U & Myers, P.A. www.bartoncpas.com
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a Certified Public Accountant.
Independent Auditor's Report
I.
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, 2019, and the related notes to the financial statements, which
collectively comprise the Authority's basic financial statements as listed in the table of contents.
FL] 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
n 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.
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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 30,2019,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 9 be presented to supplement the basic financial statements
•
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses to our
inquiries,the basic financial statements,and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming 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.
1'1Code 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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated February 11,2020,
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
Elthat 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.
AO#04)47
J Barton, Gonzalez & Myers, P.A.
Certified Public Accountants
February 11, 2020
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2019
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 2019 financial statements were in the expendable
..1 fund balance and expenses.
CFinancial Highliahts
• Assets:
rT As of September 30, 2019, total assets were $22,731,080 as compared to
$21,681,076, as of September 30, 2018, an increase of$1,050,004. Current assets
increased$692,060 due to increase in Cash($326,352)and increase in Net Accounts
Receivable ($327,433). Capital assets increased $357,944 due to capital additions
exceeding annual depreciation.
• Liabilities:
Total liabilities(decreased)$573,521. The reduction primarily is related to a$460,742
reduction in outstanding debt and the recognition of $ 98,626 in revenue during the
current year that was deferred at the end of 2018.
• Revenues:
In 2019, total revenue increased $745,314. The revenue change can be primarily
attributable to the following:
Increase in Dwelling Rent $ 574,389
Increase in Voucher Funding 133,697
Decrease in Other Grant Funding:
(Decrease) in USDA Capital Grant (1,991,670)
Increase in SHIP Funding 600,000
Increase in FEMA Funding 412,793
Increase in TBRA Funding 166,704
(Decrease) In ROSS Grant (19,519)
Increase in Local Grant Funding 188.190 (643,502)
Increase in Insurance Proceeds 884,863
(Decrease) In HAP Port In (84,237)
(Decease) Other (119,896)
Total Increase in Revenue $ 745,314
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2019
• Expenses:
Total expenses increased $1,598,155. Increase in expenditures can be primarily
attributable to the following:
Increase in Admin and Maintenance Payroll $ 242,175
Increase in Storm Damage Costs 1,009,464
tS Increase Depreciation Costs 197,138
Decrease in Hap Port In (142,979)
�1 Increase in Housing Assistance Payments 143,743
�J Increase Other 148,614
Total Increase in Expenses 1,598,155
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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.
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
a 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, 2019.
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2019
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.
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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.
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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.
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 30,2019.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, 2019.
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°-1 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, and business activities (rental properties).
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2019
Net Position
September 30,
%of
2019 2018 Change Change
U` Current Assets $ 4,411,126 $ 3,719,066 $ 692,060 18.61%
Capital Assets, Net 18,319,954 17,962,010 357,944 1.99%
Total Assets $ 22,731,080 $ 21,681,076 $ 1,050,004 4.84%
`- Current Liabilities 757,772 947,459 (189,687) -20.02%
r7 Noncurrent Liabilities 5,214,335 5,598,169 (383,834) -6.86%
Total Liabilities $ ,_ 5,972,107 $ 6,545,628 $ (573,521) -8.76%
nNet Position:
investment in Capital Assets 13,357,954 12,668,010 689,944 5.45%
I Restricted Net Position 1,915,055 2,031,488 (116,433) -5.73%
Unrestricted Net Position 1,485,964 435,950 1,050,014 240.86%
Total Net Position $ 16,758,973 $ 15,135,448 $ 1,623,525 10.73%
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Capital Assets
0 (Net of Accumulated Depreciation)
September 30,
%of
fl2019 2018 Change Change
Land $ 2,678,245 $ 2,568,713 $ 109,532 4.26%
Infrastructure 5,799,049 4,873,899 925,150 18.98%
n Buildings 37,128,072 36,597,271 530,801 1.45%
—I Furniture& Equipment-Dwell 644,062 529,057 115,005 21.74%
Furniture&Equipment-Admin 1,691,316 1,755,566 (64,250) -3.66%
n Construction in progress _ 105,120 329,405 (224,285) -68.09%
LJ Subtotal 48,045,864 46,653,911 1.391,953 2.98%
Accumulated Depreciation (29,725,910) (28,691,901) (1,034,009) 3.60%
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Net Capital Assets $ 18,319,954 $ 17,962,010 $ 357,944 1.99%
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
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Management Discussion and Analysis
El September 30, 2019
0i Total Net Position
As of September 30, 2019, the Housing Authority had $16,758,973 invested in total net
position. Of this amount, $1,485,964 of unrestricted net position may be used to meet
the Authority's future ongoing expenses and obligations. Restricted net position of
$127,445 was available for Section 8 Housing Assistance Payments (HAP) and
Li $1,787,610 was available for Rural Rental Assistance. The remainder of$13,357,954
represents the investment in capital assets of land, buildings, infrastructure,furnishings,
Dleasehold improvements, equipment, and construction in progress.
Debt
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Total debt consisted of$4,962,000 in revenue bonds for the Rural Rental Assistance and
$479,685 in operational borrowing for business activities. The current portion of long-
term debt was $224,000 for Rural Rental Assistance and $98,681 for business activities.
The noncurrent portion of long-term debt was$4,738,000 for the Rural Rental Assistance
and $381,004 for business activities.
NChanges in Net Position
For the Year Ended September 30, 2019
%of
2019 2018 Change Change
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Revenue:
Tenant Revenue $ 3,182,551 $ 2,608,161 $ 574,390 22.02%
0 Federal Grants&Subsidy 5,906,351 6,336,402 (430,051) -6.79%
Investment 17,124 14,124 3,000 21.24%
Other Income 1,530,943 932,968 597,975 64.09%
ilTotal Revenue _10,636,969 9,891,655 745,314 7.53%,
Expenses:
'1 Administrative 1,274,312 1,142,185 132,127 11.57%
LJ Tenant Services 123 7,185 (7,062) -98.29%
Utilities 150,545 144,088 6,457 4.48%
r1 Routine Maintenance 2,347,268 1,106,316 1,240,952 112.17%
Protective Services 51,877 24,319 27,558 113.32%
General 406,016 416,222 (10,206) -2.45%
n Interest 80,393 69,965 10,428 14.90%
Housing Assistance Payments 3,668,901 3,668,138 763 0.02%
Depreciation 1,034,009 836,871 197,138 23.56%
r-i Total Operating Expenses 9,013,444 7 415,289 1,598,155 21.55%
"1 Increase(Decrease) in Net Position $ 1,623,525 $ 2,476,366 $ (852,841) -34.44%
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2019
Changes in Net Position
Through the course of operations, the Housing Authority's Total Assets increased $ 1,050,004
while the Housing Authority's Total Liabilities decreased $573,571 to reflect a total change in
Net Position of $ 1,623,525. The $1,623,525 can be measured in the excess of revenue over
Li expenses.
2019 Total Revenue
LJ Other Income
r1 Tenant Revenue
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Federal Grants&
2019 Total Operating Expenses
Oepreciatfo Adminfstratl
Routine
Housing Assistance
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General
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Management Discussion and Analysis
September 30, 2019
Economic Factors
1 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.
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Contacting the Housing Authority's Financial Management
COur 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
ri 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.
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Collier County Housing Authority
Immokalee,Florida
Statement of Net Position-Proprietary Fund Type
September 30,2019
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current Assets:
Cash and cash equivalents $ 1,471,172
Cash and cash equivalents-restricted 1,945,446
Investments-restricted 206,051
Tenants receivable,net
of allowance for doubtful accounts of$1,573 50,019
Accounts receivable-government 453,300
Accounts receivable-other 5,794
Accrued interest receivable 3,916
U Prepaid expenses 180,723
Supplies inventory,net
of allowance for obsolescence of$2,929 94,705
Total current assets 4,411,126
Noncurrent Assets*
Capital Assets
Nondepreciable capital assets 2,678,245
Depreciable capital assets, net 15,536 589
Construction in progress 105,120
Total capital assets 18,319,954
Total noncurrent assets 18,319,954
Deferred Outflows of Resources -
Total assets and deferred outflows of resources $ 22,731,080
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,AND NET POSITION
Current Liabilities
Accounts payable and accrued liabilities $ 109,112
Tenant secunty deposits 234,838
Accrued compensated absences 10,592
a Accrued interest payable 9,896
Unearned revenue 70,653
Current maturities of notes payable 98,681
Current matunties of bonds payable 224,000
Total current liabilities 757,772
Noncurrent Liabilities
Accrued compensated absences 95,331
Notes payable 381,004
Bonds payable 4,738,000
Total noncurrent liabilities 5,214,335
Total liabilities 5,972,107
Deferred Inflows of Resources -
�`{ Net Position
Net investment in capital assets 13,357,954
Restricted net position 1,915,055
Unrestricted net position 1,485,964
Total net position 16,758,973
Total liabilities deferred inflows of resources and net position $ 22,731,080
See auditor's report
The notes to the Imam a!statements are an integral part of this statement
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Collier County Housing Authority
Immokalee, Florida
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Statement of Revenues, Expenses and Changes in Fund
Net Position- Proprietary Fund Type
[1 For the Year Ended September 30, 2019
[1 Operating revenues:
r Tenant rental revenue (net) $ 3,182,551
HUD operating grants 3,807,639
Other government grants 2,098,712
Other revenue 1,530,943
U Total operating revenues 10,619,845
Operating expenses:
Administration 1,274,312
Tenant services 123
Utilities 150,545
Ordinary maintenance 2,347,268
Protective services 51,877
General expenses 406,016
Housing assistance payments 3,668,901
Depreciation 1,034,009
Total operating expenses 8,933,051
Operating income 1,686,794
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LJ Nonoperating revenue and expense:
Interest expense (80,393)
Q Interest income 17,124
Net nonoperating expense (63,269)
Net income 1,623,525
ll Contributions -capital grants 0
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J Increase in net position 1,623,525
Net position, beginning of year, restated 15,135,448
Net position, end of year $ 16,758,973
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See auditor's report
The notes to the financial statements are an integral part of this statement
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Collier County Housing Authority
Immokalee, Florida
Statement of Cash Flows-Proprietary Fund Type
aFor the Year Ended September 30, 2019
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Cash flows provided from operating_activities:
Cash received from tenants and others $ 4,606,801
Cash paid for goods and services (3,116,107)
Cash paid to employees for services (1,097,535)
Cash paid for housing assistance payments (3,668,901)
HUD PHA grants received 3,807,639
Other government grants 1,752,282
Net cash provided from operating activities 2,284,179
Cash flows used by capital and related financing activities:
Acquisition of capital assets (1,391,953)
Payments of interest on notes and bonds (117,748)
Payments of principal on notes and bonds (460,743)
Net cash used by capital and related financing activities (1,970,444)
Cash flows provided by investing activities:
r Interest on investments 14,232
Purchase of investments, net (1,614)
Net cash flows provided by investing activities 12,618
Net increase in cash and cash equivalents 326,353
Cash and cash equivalents, beginning of year 3,090,265
Cash and cash equivalents, end of year $ 3,416,618
Reconciliation of operating income to net
a cash provided from operating activities:
Operating income: $ 1,686,794
ElAdjustments to reconcile operating income to
u net cash provided from operating activities:
Depreciation 1,034,009
Increase in tenants, accounts receivable-government,
accounts receivable- other (324,550)
Increase in prepaid expenses (6,979)
Increase in supplies inventory (29,672)
r) Increase in accrued compensated absences 34,090
Decrease in unearned revenue (98,627)
Increase in accounts payable, accrued liabilities
• and security deposits 48,189
Decrease in other liabilities (59,075)
Total adjustments 597,385
Net cash provided from operating activities $ 2,284,179
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f 1 See auditor's report
The notes to the financial statements are an integral part of this statement
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
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)
a 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
a 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.
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f".) Blended Component Unit:
`-' CCHA Land Development Corporation - this component unit has been blended for financial
statement presentation.
The basic financial statements of the Collier County Housing Authority include Farm Labor Housing
Loans and Grants(Rural Housing Service Capital Projects Program),Section 8 Housing Assistance
Programs under Annual Contributions Contract A-3402, Horizon Village(a business activity)which
.J 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.
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30,2019
NOTE 1: Summary of Significant Accounting Policies: (Continued)
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).
u 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
A 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.
u
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
$1,915,055 of restricted net position, which consists of the following:
USDA sinking fund (Note 8) $ 16,696
USDA sinking fund reserve replacement(Note 8) 1,770,914
HCV HAP reserves 127,445
Total restricted net position $ 1,915,055
Unrestricted-Net position that is not subject to externally imposed stipulations.Unrestncted
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.
14
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
NOTE 1: Summary of Significant Accounting Policies: (Continued)
E. Cash and Cash Equivalents:For purposes of the Statement of Cash Flows,the Authority considers
all highly liquid investments(including restricted assets)with a maturity of three months or less when
purchased and non-negotiable certificates of deposit to be cash equivalents.
L1 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
rl paymaster for shared costs of the Authority. Cash settlements are made periodically, and all
1.1 interprogram balances net zero. Offsetting due to/due from balances are eliminated for the basic
financial statement presentation.
ri
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
PR 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,
-J 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
J period. Actual results could differ from those estimates.
K. Fair Value of Financial Instruments:The carrying amount of the Authority's financial instruments at
'.J September 30,2019 including cash,investments,accounts receivable,and accounts payable closely
approximates fair value.
L
`-)
15
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
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
ff available. When no historical records are available, fixed assets are valued at estimated
�I 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
r7 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
r"} 3. Maintenance and Repairs Expenditures: Maintenance and repairs expenditures are
U 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.
J
N. Other Post Employment Benefits (OPEB): In relation to its employee benefit programs, the
1 Authority does not provide any Other Post Employment Benefits, as outlined under GASB 75
J
16
r �
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
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.
Li 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
Li Contracts is the responsibility of HUD based upon financial reports submitted by the Authority.
r1 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'
AI 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:
° 1 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, except as shown on the Statement of Cash Flows.
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.
17
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30,2019
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
u 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, 2019,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.
r+
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, 2019.
Carrying
J Deposits and Investments: Value
Demand Deposits 3,416,618
Investments (certificates of deposit)- restricted
206,051
$ 3,622,669
Restricted cash consists of the following:
HCV HAP reserves $ 127,446
LJ USDA sinking fund reserve replacement(cash) 1,581,559
Tenant security deposits 236,441
r1 $ 1,945,446
J 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
`J collateralized without a written or approved collateral agreement. Exposure to custodial credit risk
n 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
L.J the Authority's name.
n
18
ry
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
NOTE 2: Deposits and Investments: (Continued)
C. 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 ata level of 100%of the uninsured deposits
1 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
Q 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 30,2019,
ri 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, 2019.
U Concentration of Investment Credit Risk:Exposure to concentration of credit risk is considered to
U 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 30,2019,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$1,069) $ 40,445
Fraud receivables (net of allowance for doubtful accounts of$504) 9.574
$ 50,019r
Due from Other Governments
Rural Rental Assistance (September 30, 2019 allocation) $ 48,682
Receivable from TBRA Project Deliverables 121,308
Receivable from FEMA (Disaster Grant) 249,294
Due from other Housing Authorities 34.016
$453,300
19
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
NOTE 4: Interprogram Receivables and Payables
Business
USDA Activities HCV TBRA COCC Total
A/R-USDA $ - $ 1,586,880 $ - $ - $(195,101) $1,391,779
LjA/P-Business Activities (1,586,880) - 955 28000 704,695 (853,230)
A/R-HCV - (955) - - (7,900) (8,855)
A/R-TBRA - (28,000) - - (38,331) (66,331)
UA/P-COCC 195,101 (704,695) 7,900 38,331 - (463,363)
$(1 9) $ 853,230 $ 8.855 $ 66,331 $ 463,363 $ --
ri
Intercompany Receivable $ 1,391,779 $ - $ - $ - $ 280,824 $1,672,603
Intercompany Payable - (853,230) (8,855) (66,331) (744,187) (1,672,603)
till $ 1,391,779 $ (853,230) $ (8,855) $ (66,331) $(463,363) $ -
All interprogram receivables and payables have been eliminated on the financial statements.
` NOTE 5: Prepaid Expense
,i
Prepaid insurance at September 30, 2019 was $180,723.
NOTE 6: Capital Assets,
aThe capital assets(at cost)of the Collier County Housing Authority at September 30,2019 consisted of
the following:
Balance at Balance at
Sept 30,2018 Additions Deletions Transfers Sept 30,2019
Nondepreciable capital assets
,., Land $ 2,568,713 $ 107,532 $ $ 2,000 $ 2.678,245
Construction in progress 329,405 235,837 (460,122) 105,120
2,898,118 343,369 (458,122) 2,783,365
Depreciable capital assets
Buildings and irrproverrents 41,471,170 997,829 458.122 42.927,121
r 1 Furniture,equipment,vehicles 2,284,623 50,755 2,335,378
43,755,793 1,048,584 458.122 45.262,499
L.J
Accumulated Depreciation
. Buildings and improvements (26,645,383) (999 850)
(27,645,233)
Furniture.equipment.vehicles (2.046.518) (34,159) (2,080,677)
V
(28.691.901) (1.034,009) (29,725,910)
Fl Total Capital Assets,net $ 17,962,010 $ 357,944 $ $ $ 18,319,954
L.�
20
ri
L i
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
NOTE 7: Notes Payable:
A. The outstanding balance of Line of Credit Notes in the Business Activities (Horizon Village) at
September 30, 2019 was $219,961.
Interest and principal shall be paid as follows:
U
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.,
f1 a day that is a Saturday, Sunday or banking holiday),then the payment shall instead be due
4, 1 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
rrate 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.
.J
The outstanding balance of Notes Payable at September 30, 2019 was $219,961. The notes are
payable each year in the amounts listed below:
September 30, Principal hterest Total
2020 $ 20,000 $ 6,599 $ 26,599
2021 20,000 5,999 25,999
2022 20,000 5,399 25,399
r1 2023 20,000 4,799 24,799
2024 20,000 4199 24,199
2025-2029 100,000 11,993 111,993
2030 19,961 599 20,560
$ 219,961 $ 39,587 $ 259,548
•
n Interest expense for the year ended September 30, 2019 was $10,676. There was no capitalized
interest expense for the year ended September 30, 2019.
U
L
21
El
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
NOTE 7: Notes Payable:,(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, 2019 was$103,241. The notes is payable each year in the amounts listed below:
a September 30, Prncipal Interest Total
2020 $ 32,413 $ 2.992 $ 35,405
2021 33,565 1,839 35,404
2022 37,263 646 37,909
n $ 103241 $ 5,477 $ 108,718
} C. Promissory note to bank in the amount of$171,919 (dated August 14, 2019) at an interest rate of
4.95%. Payable in 60 monthly installments of interest and principal of$3,246. Final payment due by
August 14,2023. Unsecured.The outstanding balance of the notes payable at September 30,2019
was$102,839. The notes is payable each year in the amounts listed below:
September 30, Principal Interest Total
2020 $ 32,856 $ 6,098 $ 38,954
2021 34,520 4,434 38,954
2022 35,463 2,686 38.149
$ 102,839 $ 13,218 $ 116,057
D. See also Note 9 for the SHIP Loan
NOTE 8: Bonds Payable:
a 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
1 and interest amounts. Revenue bonds payable at September 30, 2019 are as follows:
J
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 $ 129,000
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 410,000
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 646,000
-J
77
1
[
0 COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
EllNotes to Financial Statements
September 30, 2019
El
NOTE 8: Bonds Payable: (Continued)
iiCollier County Housing Authority Revenue Bonds, Series G (2015), 1%, due
annually on September 1 in principal amounts of$111,000 to$149,000 with
r interest to September 1, 2048 3.777,000
Total bonds payable $.92M0
a 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
11 Services. Maturities of long-term debt for each of the five succeeding years and in the aggregate are as
follows at September 30, 2019:
MR Bond Principal 2015
J Series D Series E Series F Series G Total
2020 $ 32,000 32,000 $ 47,000 $ 113,000 $ 224,000
1 2021 32,000 33,000 47,000 114.000 226,000
2022 32,000 33,000 48,000 115.000 228,000
2023 33,000 33,000 48,000 116.000 230,000
2024 0 34,000 49.000 118.000 201,000
2025-2029 0 173,000 251,000 605,000 1,029,000
2030-2034 0 72,000 156,000 637.000 865,000
U 2035-2039 0 0 0 668,000 668,000
2040-2044 0 0 0 703,000 703,000
2045-2048 0 0 0 588,000 588,000
$ 129,000 $ 410,000 $ 646,000 $ 3,777,000 $ 4,962,000
0
Bond interest 2015
Series D Series E Series F Series G Total
' 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 330 3,120 5,040 34.350 42.840
2024 0 2.790 4,560 33,190 40.540
2025-2029 0 8.820 15,380 160,050 184 250
-1 2030 2034 0 1,080 3.120 129.800 134.000
2035 2039 0 0 0 97.950 97,950
2040 2044 0 0 0 64,550 64,550
,. 2045 2048 0 0 0 23,520 23,520
$ 3,240 $ 27 140 $ 46,070 $ 653,320 $ 729,770
1
23
g
a
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
NOTE 8: Bonds Payable: (Continued)
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
j principal on the bonds. The amount required to be transferred during the year ended September 30,
!.� 2019 in order to meet debt service requirements was$274,080 (of which $251,240 was transferred).
The cash balance in the sinking fund debt service account at September 30, 2019 was$16,696.
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
r1 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$10,000,000(effective with the new Series G bond
issue). There were $477,392 deposits made into the account during the year(the Authority was short
one deposit of$41,667). The aggregate deposits to the reserve account and interest earned for the year
ended September 30, 2019 were $1,770,914 (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$10,000,000 (effective with the new Series G bond
Li 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 $ 191,258
Transfers to Debt Service Account including interest earned 251,240
Withdrawals for payment of principal and interest ( 425,802)
Ending balance $ 16,696
24
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
NOTE 8: Bonds Payable: (Continued)
Supplemental Information: (Schedule of Funding Reserve)(Continued)
LI
+ a. Investment Reserve Funds(Continued)
u Sinking Fund Reserve Replacement Account
Beginning balance- less transfers to replacements and operations $ 1,759,072
U Transfers to reserves including interest earned—net 477,392
L! Use of reserves for capital improvements ( 465,550)
Ending balance $ 1,770,914
p
Total Investment Reserve Fund $ 1,770,914
Fully Funded Balance per Loan Agreement 10.000.000
Excess/(Deficiency) of Reserves on Hand $(8,229,0861
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,
`J 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
with the 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
n Rural Housing Services and other sources and to record construction activities. During the year ended
4 j September 30, 2019, expenditures from the Construction Fund (if any) 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, 2019 was $53,644 The loan is
payable each year in the amounts and at the interest(at 0% interest) listed below
1
25
U
El COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
DNotes to Financial Statements
September 30, 2019
111
NOTE 9: State Housing Initiatives Partnership Business Activities (Horizon Village) Loan:
(Continued)
11
September 30, Principal Interest Total
2020 $ 13,412 $ 0 $ 13,412
r,
y 2021 13,412 0 13,412
LI 2022 13,412 0 13,412
2023 13,408 0 13.408
0 $ 53,644 $ 0 $ 53,644
� s
11Interest expense for the year ended September 30, 2019 was$0.
, 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
1111 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 2019 and is therefore not required to pay future payments at 12%interest as of FY2019.
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
r', Authority's total payment shall be$228,000.
J'� NOTE 10: Schedule of Changes in Noncurrent Liabilities:
USeptember 30,2018 September 30,2019
Long Term Current
U
Pn Portion Additions Payments long Term Portion Current Portion
Compensated Absences $ 64,650 $ 7.183 $ 34,090 $ $ 95,331 $ 10,592
Other Liabidties(FSS Escrow) 59,075 (59,075)
Notes Payable 512.444 95984 (128,743) 381.004 98,681
-1 Bonds Payable 4,962,000 332.000 (332,000) 4.738,000 224,000
Li $ 5,598,169 $ 435,167< $ 34,090 $ (519,818) $ 5214,335 $ 333.273
-I NOTE 11: Schedule of Changes in Net Position:
iJ
Net Investment Restricted Unrestricted
!� In Capital Assets Net Position Net Position Total
Balance,beginning of year 12,668,010 2,031,488 435,950 15,135,448
r, Changes in net position 1,623,525 1,623,525
u
Changes in net investment in capital assets 689,944 (689,944)
Changes in restricted net position (116,433) 116,433
7 Balance,end of year $ 13,357,954 $ 1,915.055 $ 1,485,964 $ 16,758,973
L.A
26
r
I.,
COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
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 4%. 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.
NOTE 13: Annual Contributions from HUD:
rl
. 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
L also eligible to receive reimbursement for preliminary expenses prior to lease up. HUD contributions for
r , the Section 8 Housing Choice Voucher program for the year ended September 30, 2019 were
$3,807,639.
NOTE 14: Economic Dependency
•
The Authority receives approximately 41%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: 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 Authonty in
the current and prior years. There were no such examinations for the year ended September 30,2019.
However, the Authority was notified in a 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
LA
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
NOTE 15: Contingencies(Continued)
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 30,2019
is $1,586,880. These interprogram receivables and payables have been eliminated on the financial
statements.
n
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 could easily be repaired. In January 2019, the Authority received $1,266,369 as an
insurance settlement for damages incurred as a result of the hurricane damage (which is included in
Other Revenue on the Statement of Revenues, Expenses and Changes in Net Position). In addition,
during the year the Authority received $523,794 from a FEMA grant which is being used for the roof
repairs.
•
During the year ended September 30, 2019,the Authority obtained funding in the amount of$600,000
from Collier County under the State Housing Initiatives Partnership(SHIP)program for the purchase of
two rental properties.The SHIP program provides funds to eligible local governments as an incentive to
create partnerships that produce and preserve affordable homeownership and multifamily housing.The
program was designed to serve very low, low and moderate income families. In order to assure
compliance,the Authority entered into SHIP promissory notes(two promissory notes at$300,000 each
totaling$600,000)that carry an interest rate of 0%and is forgivable after a 15-year term if the Authority
complies with the SHIP requirements. However, if the properties are sold, refinanced, no longer serve
the intended purpose,or title transfers,the loan will be paid in full.The SHIP proceeds were recognized
r , as income at the time of receipt since the Authority believes the likelihood of repayment is remote.
Litigation
As of September 30,2019,the Authority was involved with various litigations arising from operation of its
J 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, 2019.
n
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Notes to Financial Statements
September 30, 2019
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.
i1 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:
•1
Future minimum lease payments required under these leases are as follows:
1 September 30, Office Space
2019-2020 $ 34,382
NOTE 19: Subsequent Events
Management for the Authority has evaluated subsequent events after September 30,2019,and through
February 11, 2020, the date which the financial statements were available to be issued, and no events
(� were identified that would require recognition or disclosure within these financial statements,except the
u following:
1 Subsequent to year end,the Authority received approximately$433,000 of FEMA funds for roof repairs
(of which$249,294 was recorded as a receivable at September 30, 2019)
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2019
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, 2019, the Authority had the following insurance coverage in effect:
LJ Amount of
Insurance Carrier Type of Coverage Coverage Term
a
Travelers Insurance Co Fidelity bond/Employee Dishonesty
$100,000 Deductible $2,000,000 05/01/19-05/01/20
Amtrust W/Comp Workers'Compensation Statutory 10/01/18-10/01/19
Florida PH Authority Insurance Automobile liability $1,000,000 05/01/19-05/01/20
ri
Florida PH Authority Insurance Property,Office Building& Personal $44,169,134 05/01/19-05/01/20
Property. Fire& Extended Coverage
A (90% coinsurance)
Florida PH Authonty Insurance General Liability Personal Injury, $1,000,000 Occ 05/01/19-05/01/20
products, advertising, property damage $2,000,000 Agg 05/01/19-05/01/20
Florida PH Authority Insurance Directors&Officers Liability $1,000,000 05/01/19-05/01/20
Wright Flood Insurance Flood Insurance $250,000 11/06/18-11/06/19
J 1250.00 deduct
Beazley Cyber Liability $1,000,000 05/01/19-05/01/20
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 reserves for operations and Bond debt service at
September 30, 2019. See also Notes to Financial Statements for additional information.
rt,
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 maderl .
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COLUER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2019
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(except as discussed in the Notes to Financial Statements)as of September 30, 2019.
7. Comments on Compliance and Administrative Internal Control - We have audited the basic
I I financial statements of the Collier County Housing Authority and have issued our report thereon
J dated February 11, 2020.
f We have also issued a report dated February 11, 2020, 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.
El 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, 2019. 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, 2019 — See the
a schedule of findings and questioned cost as well as the management letter dated February 11,2020
for any findings and management comments.
[i] 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, 2019 totaling
$15,616 were accounts aged at ninety days (90) or less.
11. Accounts Payable consists of$19,339 at September 30, 2019. 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$169,536 were charged by the COCC.
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2019
13. Schedule of Financial Institutions Where the Housing Authority Maintains its Bank Accounts
Reconciled
Balance
(considers
deposits In-
transit and
Li Name of Financial Institution Account Name tank Balance outstanding
ch.aks) Classification
First 1 Bank USDA Reserve Account $1,564,863 $1,564,863 USDA Restricted
r' 1300 N 15th St , Suite 2 COCC Account 544,206 500,168
Immokalee FL 34142 COCC Payroll Account 22,365 22,365
COCC Insurance Reserve 12,034 12,734
n CCHA Land, Inc. 31,108 31,108
AB Revenue Account 182,922 139,782
- ' AB Secunty Deposit Fund 125,547 117,483
Section A&B Insurance Reserve 57,148 69,248
RI Horizon Village Operating 128,706 123,461
Honzon Village Insurance Reserve 8,887 10.787
AB Maintenance Reserve 100,000 100,000
Irma Account 245,211 245,211
COCC Escrow Account - -
$3,022,997 $2,937,210
First Florida Integrity Bank
n P 0 Box 10910 Security Deposit Fund USDA 123,475 115,677
1 Naples, FL 34104-0910 Certificates of Deposit(2) 208,575 206,051 USDA Restncted
Bond&Sinking Fund 16,696 16,696 USDA Restncted
Revenue Account USDA 28,420 23,611
a TBRA HOME Operating 4,687 5,736
Section 8-Admin Funds 60,072 57,302
Section 8-HAP 144,204 121,076
Q Construction Account 100 100
Family Self Sufficiency 39,503 39,503
O& M Operating 619 115
COCC Laundry 16,457 14,204
n USDA Insurance Reserves 36,907 36,907
i_� Section 8 Admin Insurance Reserves 13,695 14,695
Residential Portal Account 506 506
rt Rental Properties 29,473 29,326
Rental Properties Secunty Deposit 3,281 3,281
`1 726,670 684,786
IPetty Cash& Misc - 673
S 3,749,667 $ 3,622,669
kJ The above amounts were confirmed with the institutions listed at September 30, 2019
1
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Farm Worker Subsidized Housing Program
Supplemental Information
September 30, 2019
14. Schedule and Computation of Current Return to Owners Allowed-Not applicable,because the
Authority is a legal public Authority and not a private enterprise.
15. Schedule of Changes In Owners and Board of Commissioners-This is a local Public Authority
and can never change its owners. The following is a list of the current Board of Commissioners.
Commissioner Expiration of Term Address
David B. Genson November 7, 2018 Naples, Florida
Randolph B. Cash October 17, 2018 Naples, Florida
Jay Roth October 27, 2019 Ave Maria, 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 finished the process to demolish/convert 50 units and
rehabilitate the remaining 315 units. The rehabilitation project ended in mid-2018.
aActual Rental Revenue Percentage Amount
Tenants 65.51% $1,101,556
QRI-IA rental assistance subsidy 34.49% 580,051
$1,681,607
Note 1-Rental rates were effective October 1, 2017. Management
provides for the monthly collection of rent.
1
17. Real Estate Taxes -The Authority is a local public body corporate and politic and is tax exempt by
1
State of Florida, Section 423.
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j/,unin,.1 utlruritt.
of
4
February 11,2019
USDA Rural Development Office
420 South State Road 7
t j Suite#166
(� Royal Palm Beach, FL 33414
n In accordance with the criteria specified in Section 5; Paragraph 4.32 C. of the USDA Rural
u Development Handbook (HB-2-3560)for the year ended September 30,2019,the borrower must self-
certify that Collier County Housing Authority(the Authority)is in compliance with the nine performance
standards.Thefollowing is a summary of our compliance with the performance standards.
1. The required accounts are properly maintained and tracked separately. The accounts we
maintain are marked below:
X Operating Account(s) X Security Deposit Account
X Tax and Insurance Account X Reserve Account
X Other Accounts: Debt Service
2. The payments from operating account(s)are disclosed and accurately represented.
3. The reserve account(s):
a. is on schedule with the Agency required minimum funding requirements;
b. is maintained in a supervised bank account that requires the Agency's countersignatureon
all withdrawals;
c. is on schedule with contributions to the reserve account for the current year with the
Agency required minimum funding; and
d. has no encumbrances on the reserve funds.
l 4. The tenant security deposits accounts are fully funded and are maintained in separate
accounts.
-i 5. The payment of owner return was: Not Applicable (owner is a government entity)
tla paid in the amount of$-0-for the 2019 fiscal year and was in accordance with the
Agency's requirements OR
hla not paid during the reporting year OR
Ilia 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 2019 fiscal year.
13
1-1
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 Earthquake Insurance
X Property Insurance XOther. Public Officials Liability
X Fidelity Bond
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
tt _ Board of Commissioners is active and maintains oversight responsibilities for the project.
LJ
9. Exemptions from Real Estate and Income Taxes: The Authority is a public body corporate and
a 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
ri 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.
(0-11I
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Oscar Hentschel,
r i Executive Director
J Collier County Housing Authority
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IBarton,
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
i ( 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
ri 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, 2019, and the related notes to the
financial statements,which collectively comprise the Authority's basic financial statements,and have issued
1�1 our report thereon dated February 11, 2020.
LJ
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
L.J 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.
J Our consideration of internal control was for the limited purpose described in the first paragraph of this
r 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
1 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. However,material weaknesses
may exist that have not been identified.
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Compliance and Other Matter
As part of obtaining reasonable assurance about whether the Authority's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
We noted certain matters that we reported to management of the Authority in a separate letter dated
February 11, 2020.
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
n Government Auditing Standards in considering the entity's internal control and compliance.Accordingly,this
communication is not suitable for any other purpose.
16A/49A * 44/2•41/44.
Barton, Gonzalez & Myers, P.A.
Certified Public Accountants
February 11, 2020
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I MINIMBarton,
13137-66th Street,Largo,FL 33773
lopiti
FGonzalez Phone:(727)344-1040 Fax:(727)533-8483
& Myers, P.A. www bartoncpas.com
Certified Public Accountants
1
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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
aReport 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 30,2019.The Authority's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of findings and
111, 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
a 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.
Opinion on 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, 2019.
1
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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 2019-001. 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
Li 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
Fl Management of the Authority is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above.In planning and performing our audit of
compliance,we considered the Authority's internal control over compliance with the types of requirements that
could have a direct and material effect on each major federal program to determine the auditing procedures that
are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major
federal program and to test and report on internal control over compliance in accordance with the Uniform
rl 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
r , 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
L� 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.
DOur 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
[71 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
r, compliance,as described in the accompanying schedule of findings and questioned costs as item 2019-001 that
we consider to be a significant deficiency.
J
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.
rl
LJ 411../ * /4.
Barton, Gonzalez& yers, P.A.
Certified Public Accountants
February 11, 2020
41
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Schedule of Findings and Questioned Costs
September 30,2019
Section I - Summary of Auditor's Results:
Financial Statements
Type of report issued on the financial statements: Unmodified
UInternal control over financial reporting:
Material weakness(es) identified? No
Q Significant deficiencies identified not considered
to be material weaknesses? No
n Noncompliance material to the financial statements noted? No
Federal Awards
FPI 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
97.036 Disaster Grants—Public Assistance
iiDollar threshold used to distinguish between
Type A and Type B programs: $750,000
n Did the Authority qualify as a low-risk auditee? Yes
Section II - Financial Statement Findings:
There were no findings relating to this area for the year ended September 30, 2019.
n
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Schedule of Findings and Questioned Costs
September 30, 2019
Section III- Federal Awards:
The following finding was disclosed relating to this area for the year ended September 30, 2019.
2019-001 Eligibility: 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
D 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:
t� • 2 files where income was miscalculated,which caused a change in the tenant's rent in both files.
• 1 file where there was no income support.
• 2 files where the utility allowance was miscalculated,which caused a change in the tenant's rent
tog in both files.
• 1 file where the utility allowance was calculated correctly but was reported incorrectly, which
caused a change in the tenant's rent.
• 1 file where the address on the HAP contract was reported incorrectly.
• 1 file had a missing lease agreement.
• 1 file where an inspection has not been performed for 3 years.
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
n amounts submitted to HUD for tenant assistance are calculated according to HUD rules.
U Questioned Costs: None
n Effect:Although the effect of the HAP payment errors were completely immaterial when extrapolated
u to the population, the Authority is not complying with HUD rules regarding tenant verifications and
documentation.
Cause: The Authority experienced an increase in other federal activities during the year which may
have caused less time devoted to their quality control review procedures over the 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. To prevent
future errors in the tenant files, we will review our supervisory procedures, devote more time
performing our supervisory procedures, and increase training to employees to ensure that HUD's
program requirements are being followed
SJ
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Summary Schedule of Prior Year Findings
September 30, 2019
There were no findings in the prior audit report for the year ended September 30, 2018.
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COLLIER COUNTY HOUSING AUTHORITY
Immokalee, Florida
Corrective Action Plan
September 30, 2019
The following is the corrective action planned by the Authority regarding the current findings:
Finding
No.
2019-001 Eligibility: 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
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:
• 2 files where income was miscalculated,which caused a change in the tenant's rent in both files.
• 1 file where there was no income support.
AR • 2 files where the utility allowance was miscalculated,which caused a change in the tenant's rent
in both files.
• 1 file where the utility allowance was calculated correctly but was reported incorrectly, which
caused a change in the tenant's rent.
• 1 file where the address on the HAP contract was reported incorrectly.
• 1 file had a missing lease agreement.
• 1 file where an inspection has not been performed for 3 years.
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.To prevent future errors in the tenant files,we
will review our supervisory procedures,devote more time performing our supervisory procedures,and
increase training to employees to ensure that HUD's program requirements are being followed.
j Effective Date: February 11, 2020
Contact Information
Oscar Hentschel, Executive Director
Collier County Housing Authority
1800 Farm Worker Way
Immokalee, FL 34142
(239)657-3649
La
45
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Collier County Housing Authority
Immokalee,Florida
Schedule of Expenditures of Federal Awards
For the Year Ended September 30,2019
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 $ 4,962,000 $ 4,962,000
Rural Rental Assistance Payments 10.427 580,051 580,051
Total U.S.Department of Agriculture 5,542,051 5.542,051
U.S.Department of HUD
Section 8 Housing Choice Vouchers + 14.871 3,807,639 3,807,639
LLLSSS HOME Investment Partnerships Program 14 239 206,677 206,677
Community Development Block Grants 14 218 188,190 188,190
Total U.S.Department of HUD 4,202,506 4,202,506
U.S.Department of Homeland Security
Disaster Grants-Public Assistance " + 97 036 523,794 523,794
Total U.S.Department of Homeland Security 523,794 523,794
TOTAL $ 10,268,351 $ 10,268,351
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 Authonty and is presented on the full accrual basis
of accounting The information m this schedule is presented in accordance with the requirements of the Uniform Guidance
n (Title 2 U S Code of Federal Regulations(CFR),Part 200,Uniform Administrative Requirements Cost Principles.and Audit
(ut Requsements 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 $ 3,807.639
FDS Line 70800 Other Government Grants 2,098,712
FDS Line 343&351 Farm Labor Housing Loan Debt 4,962,000
10,868,351
FDS Line 70800 Less for Non Federal Grants (600,000)
$ 10,268,351
C. Other Considerations in Determining Major and Non-major Program Requirements
The Authority is administenng 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 30.2019 the balance of the long term debt due to the U S Department of Agncuture's Rural Housing Services was
$4,962,000 This loan balance has been considered as a part of the computation to determine the mapr end non major program
LJ requirement under the Uniform Guidance
D. Program Type
Type A Program
••Type B Program
+ Major Program
See auditors report
46
Barton, 13137-66th Street,Largo,FL 33773
Gonzalez Phone:(727)344-1040 Fax:(727)533-8483
& Myers, P.A. wwu.bartoncpas.con,
A Certified Public Accountants
El
February 11, 2020
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 30,2019,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.
fL.11
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 11,2020,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:
r1
MC2019-001 HCV Waiting List-We tested 25 files out of a total population of 976 applications from the current
waiting list. We noted the following issues.
• 1 tenant file where the time was not recorded on the application. As such,the time reported on
the waiting list may or may not be correct. In any case there would not be a significant impact on
the applicant's placement on the waiting list.
• 2 tenant files where the time on the application did not agree to the time on the waiting list.This
did not significantly impact the applicants' placement on the waiting list,
We recommend the Authority periodically review the waiting list and compare the time and date on the
applications to the time and date on the waiting list to assure that the waiting list is properly maintained and
tenants are being properly selected in the correct order from the waiting list.
'-1
47
MC2019-002 HCV New Admissions—We tested 4 tenant files out of a total population of 33 new admissions
from the new admissions report. We noted 1 tenant file where the request for tenancy form was not signed by
the tenant. Although not significant, we recommend all HUD required forms be signed and maintained in the
tenants file.
MC2019-003 Fixed Assets and Depreciation — We noted the USDA fixed asset depreciation schedule
excludes certain assets. Although depreciation calculated was materially correct,we recommend the schedule
be updated to include all assets so that the total of the amounts listed on the schedule agree to the amounts
recorded in the general ledger. In addition,we noted the COCC fixed asset schedule also needs to be updated
for$35,441 of current year additions not reflected on the schedule. Depreciation on these assets would have
been immaterial.
MC2019-004 Funding of the USDA Replacement Reserve and Debt Service Accounts-The replacement
reserve account and the debt service accounts were underfunded by one payment each ($41,667 for the
replacement reserve and $22,840 for the debt service account). These deposits should be caught up and
corrected. Each year, the full amount required should be funded to these reserve accounts.
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
44/110, 44.
Barton, Gonzalez& Myers, P.A.
Certified Public Accountants
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