FY2020 Audit4 01'2111=16 CLERK OF COURTS
Collier County Housing Authority
March 24, 2021
Crystal K. Kinzel
Clerk of the Circuit Court
Finance Department
3301E. Tamiami Trail
Naples, FL 34112
Re: FY2020 Audit
Dear Mrs. Kinzel,
Enclosed please find a copy of the Collier County Housing Authority completed Audit for the
year ended on September 30t", 2020.
1 hope this satisfies our reporting requirements to the Clerk of Circuit Court, Finance Dpt.
If you have any further questions, please contact me.
Best Regards.
Z�O
Osc /A..en schel
CCHA Executive Director
1800 Farm Worker Way, Immokalee FL. 34142. www.cchafl.org Phone: 239-657-3649 Fax: 239-657-7232
COLLIER COUNTY
HOUSING AUTHORITY
Basic
Financial Statements and
Supplementary
Information
September 30, 2020
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR'S REPORT
1
MANAGEMENT'S DISCUSSION AND ANALYSIS
4
BASIC FINANCIAL STATEMENTS
Statement of Net Position
9
Statement of Revenues, Expenses and Changes in Net Position
10
Statement of Cash Flows
11
Notes to Basic Financial Statements
13
SUPPLEMENTARY INFORMATION
Financial Data Schedule
36
Schedule of CARES Act Fund Programs Costs and Advances
40
Farm Worker Subsidized Housing Program - unaudited
41
Certificate of Borrower - unaudited
45
SINGLE AUDIT AND COMPLIANCE INFORMATION
Schedule of Expenditures of Federal Awards
48
Independent Auditor's 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
49
Independent Auditor's Report on Compliance For Each Major Program and
on Internal Control Over Compliance Required by the Uniform Guidance
51
Schedule of Findings and Questioned Costs
53
Summary Schedule of Prior Year Findings
54
A OP S
BERMAN H KIN
CPA,,AS$'OOATES, Li.P
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Collier County Housing Authority
Immokalee, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the business -type activities of the
Collier County Housing Authority (the "Authority"), as of and for the year ended
September 30, 2020, and the related notes to the financial statements, which collectively
comprise the Authority's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
MELBOURNE ORLANDO TITUSVILLE
8035 Spyglass Hill Road 255 South Orange Avenue, #1545 917 South Washington Avenue
Melbourne, FL 32940 Orlando, FL 32801 Titusville, FL 32780
321-757-2020 407-841-8841 321-267-2190
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 respective financial position of the Authority's business -type activities as of
September 30, 2020, and the respective changes in financial position and cash flows thereof
for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that
management's discussion and analysis 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 basic financial
statements that collectively comprise the Authority's financial statements as a whole. The
accompanying financial data schedule and schedule of CARES Act fund programs costs and
advances are presented for purposes of additional analysis as required by U.S. Department
of Housing and Urban Development, and are not a required part of the financial statements
of the Authority. The accompanying schedule of expenditures of federal awards is presented
for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards, and is not a required part of the basic financial statements of the
Authority.
2
— The 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 financial
statements. The information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the information is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
The Certificate of Borrower and the Farm Worker Subsidized Housing Program are
supplemental information requested by the USDA and have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 18, 2021, 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 solely 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 the effectiveness of the
Authority's 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.
February 18, 2021 Fev-t" qo&ad'&V* & Zagam
Melbourne, Florida
�, wQ .C',L'p
3
Management's Discussion and Analysis
As management of the Collier County Housing Authority (the "Authority"), we offer the readers of
the Authority's financial statements this narrative overview and analysis of the financial activities
of the Authority for the year ended September 30, 2020. We encourage readers to consider the
information presented here in conjunction with the Authority's financial statements.
Questions concerning any of the information provided in this report or requests for additional
information should be addressed to Oscar Hentschel, Executive Director, Collier County Housing
Authority, 1800 Farm Worker Way, Immokalee, FL 34142.
Financial Highlights
• The assets of the Authority exceeded its liabilities as of September 30, 2020 by
$16,693,802 (net position).
The Authority's total cash balances as of September 30, 2020 were $4,570,727,
representing an increase of $1,154,109.
• The Authority had revenue from the U.S. Department of Housing and Urban Development
("HUD") of $3,828,049 along with revenue from the U.S. Department of Agriculture
("USDA") of $588,379.
Overview of Financial Statements
The financial statements included in this annual report are those of a special-purpose government
engaged in a single business -type activity prepared on an accrual basis. Over time, significant
changes in the Authority's net position serve as a useful indicator of whether its financial health
is improving or deteriorating. To fully assess the financial health of any authority, the reader must
also consider other non -financial factors such as changes in family composition, fluctuations in
the local economy, HUD mandated program administrative changes, and the physical condition
of capital assets. The following statements are included:
• Statement of Net Position - reports the Authority's assets, liabilities and net position at the
end of the fiscal year. You can think of the Authority's net position as the difference
between what the Authority owns (assets and deferred outflows of resources) and what
the Authority owes (liabilities and deferred inflows of resources).
• Statement of Revenues, Expenses, and Changes in Net Position - presents information
showing how the Authority's net position increased or decreased during the current fiscal
year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of when cash is received or paid. Thus, revenues and
expenses are reported in this statement for some items that will result in cash inflows and
cash outflows in the future periods.
• Statement of Cash Flows - presents information showing the total cash receipts and cash
disbursements of the Authority during the current fiscal year. The statement reflects the
net changes in cash resulting from operations plus any other cash requirements during
the current year (i.e. capital additions, debt service, prior period obligations, etc.). In
addition, the statement reflects the receipt of cash that was obligated to the Authority in
prior periods and subsequently received during the current fiscal year (i.e. receivables,
notes receivable etc.).
4
Overview of Financial Statements (continued)
• Notes to the Basic Financial Statements - provide additional information that is essential
to a full understanding of the data provided. These notes give greater understanding on
the overall activity of the Authority and how values are assigned to certain assets and
liabilities and the longevity of these values. In addition, notes reflect the impact (if any) of
any uncertainties the Authority may face.
In addition to the basic financial statements listed above, our report includes supplemental
information. This information is to provide more detail on the Authority's various programs and
the required information mandated by regulatory bodies that fund the Authority's various
programs.
Financial Analysis
Condensed Statement of Net Position
—
2020
2019
Net Change
Current assets
$ 5,277,896
$ 4,411,126
$ 866,770
Capital assets, net
17,369,841
18,319,954
(950,113)
— Total assets
22,647,737
22,731,080
(83,343)
Current liabilities
996,628
757,772
238,856
— Long-term debt
4,845,564
5,119,004
(273,440)
Other noncurrent liabilities
111,743
95,331
16,412
Total liabilities
5,953,935
5,972,107
(18,172)
— Net investment in capital assets
12,196,780
13,357,954
(1,161,174)
Restricted net position
2,380,815
1,915,055
465,760
Unrestricted net position
2,116,207
1,485,964
630,243
Total net position
$ 16,693,802
$ 16,758,973
$ (65,171)
— Current Assets increased by $866,770 primarily due to
increases in cash from operations of
approximately $1,154,000 due to timing of payments, offset by a decrease
in net receivables of
approximately $235,000 due mainly to a reduction inf FEMA funds obligated.
Net Capital Assets decreased by $950,113 mainly due to depreciation expense of approximately
$1,130,000 offset by current year additions for the construction of the HVAC project, obtaining
the title for a new project that will begin in fiscal year 2021, and equipment of approximately
$179,000.
Current Liabilities reflect an increase of $238,856 mainly due to an increase in unearned
revenue related to CARES act funding received for the HCV program but not yet utilized.
Long Term Debt reflect a decrease of $273,440 mainly due to debt principal payments.
Net Position - The difference between the Authority's rights (assets and deferred outflows of
resources) and the Authority's obligations (liabilities and deferred inflows of resources) is its net
position. Net position is categorized as one of three types:
1. Net investment in capital assets - The Authority's capital asset balance, net of accumulated
depreciation and related long term debt as of September 30, 2020 is $12,196,780.
5
Financial Analysis (continued)
2. Restricted - The Authority's net position whose use is subject to constraints imposed by
law or agreement. The statement of net position of the Authority reports $2,168,512 of
restricted net position which consists of Section 8 Housing Choice Voucher HAP reserves,
HCV CARES funding, and USDA sinking fund reserve replacement.
3. Unrestricted - The Authority's net position, that is neither invested in capital assets nor
restricted, which changes principally due to operations. These resources are available to
meet the Authority's ongoing obligations to its residents and creditors. The Authority has
$2,328,510 in unrestricted net position as of September 30, 2020. The Authority's unrestricted
net position is designated for housing purposes.
Condensed Statement of Revenues, Expenses and Changes in Net Position
Operating revenue
HUD revenue
Tenant revenue
Other revenue
Total operating revenue
Operating expenses
Housing assistance payments
Maintenance
Administrative
Depreciation
General
Utilities
Protective services
Tenant services
Total operating expenses
Operating income (loss)
Non operating revenues (expenses)
Interest income - resticted
Interest income - unresticted
Interest expense
Total nonoperating expenses
Change in net position
Total net position - beginning
2020 2019 Net Chanae
$ 3,828,049 $ 3,807,639 $ 20,410
3,333,275
3,182,551
150,724
1,362,744
3,629,655
(2,266,911)
8,524,068
10,619,845
(2,095,777)
3,901,926
3,668,901
233,025
1,537,941
2,347,268
(809,327)
1,187,001
1,274,312
(87,311)
1,129,563
1,034,009
95,554
543,116
406,016
137,100
204,685
150,545
54,140
32,662
51,877
(19,215)
-
123
(123)
8,536,894
8,933,051
(396,157)
(12,826)
1,686,794
(1,699,620)
8,753
17,124
(8,371)
4,397
-
4,397
(65,495)
(80,393)
14,898
(52,345)
(63,269)
10,924
(65,171)
1,623,525
(1,688,696)
16,758,973
15,135,448
1,623,525
Total net position - ending $ 16,693,802 $ 16,758,973 $ (65,171)
Financial Analysis (continued)
Total Operating Revenue decreased by $2,095,777 during the fiscal year ending 2020. This is
mainly due to a decrease in other revenue of $2,267,000 due to a decrease in FEMA funds and
insurance proceeds, offset by an increase in tenant revenue of approximately $151,000 due to an
increase in occupancy for all programs. The Authority received those proceeds in 2019 for roof
repairs for damages done by hurricane Irma.
Total Operating Expenses decreased by $396,157 during the fiscal year ending 2020 as
compared to the fiscal year ending 2019. This is primarily a result of increases in housing
assistance payments, depreciation, and general expenses offset by decreases in maintenance
and administrative expenses. Housing Assistance Payments increased by approximately
$233,000 due to increased payment standards. General expenses increased by approximately
$137,000 due to Insurance increases and an increase in compensated absences which were
reported as an administrative expense rather than a general expense in the prior year.
Maintenance costs decreased by approximately $809,000 due to the extensive roof repairs
completed in the prior year related to damage caused during hurricane Irma. Administrative
expenses decreased by approximately $87,000 due to difficulties replacing employees that left
during the year as well as having certain compensated absence expenses reallocated as noted
above.
Capital Assets and Debt Activit
During the fiscal year 2020, the Authority's net capital assets decreased by $950,113 mainly due
to depreciation expense of approximately $1,130,000 offset by current year additions
approximately $179,000. These additions mainly consist of the HVAC project and obtaining the
title for a project that will begin in fiscal year 2021 in construction in progress.
At the end of the fiscal year 2020, the Authority had debt of approximately $5,173,000 of which
only approximately $327,000 is presented as current. This balance represents a decrease from
that of the previous year-end due to the debt payments.
Factors Affecting Next Year's Budget
The Authority is primarily dependent upon HUD and USDA for various programs; therefore, the
Authority is affected more by the federal budget than by local economic conditions. The funding
of programs could be significantly affected by the 2020 and 2021 federal budgets.
7
Economic Factors
Significant economic factors and decisions affecting the Authority are as follows:
• Federal funding provided by Congress to the Department of Housing and Urban
Development and USDA, and new rules and regulations, which could be unfunded;
• Local labor supply and demand, which can affect salary and wage rates;
• Local inflationary, recessionary and employment trends, which can affect resident
incomes and therefore the amount of rental income as well as the Housing Assistance
Payments to landlords;
• Inflationary pressure on utility rates, housing costs, supplies and other costs;
• Natural disasters and health safety concerns, which can have a devastating impact on the
local economy;
• Trends in the current housing market; and
• The recent COVID-19 pandemic may affect the future rental market.
M
— Collier County Housing Authority
STATEMENT OF NET POSITION
September 30, 2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents - unrestricted
$ 2,132,002
Cash and cash equivalents - restricted
2,438,725
— Investments - restricted
212,303
Receivables, net
228,080
Inventory, net
65,352
Prepaid expenses
201,434
Total current assets
5,277,896
NONCURRENT ASSETS
— Capital assets, net
17,369,841
Total assets
22,647.737
LIABILITIES
CURRENT LIABILITIES
— Current portion of long-term debt
327,497
Accounts payable
83,014
Accrued wages
24,949
— Accrued compensated absences
12,421
Unearned revenue
269,571
Tenant security deposits
270,213
— Accrued interest payable
8,902
Other current liabilities
61
Total current liabilities
—
996,628
NONCURRENT LIABILITIES
Long-term debt
4,845,564
— Accrued compensated absences
111,743
Total noncurrent liabilities
4,957,307
Total liabilities
5.953.935
NET POSITION
Net investment in capital assets 12,196,780
Restricted 2,380,815
Unrestricted 2,116,207
Total net position $ 16,693,802
The accompanying notes are an integral part of this financial statement.
9
Collier County Housing Authority
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For the year ended September 30, 2020
OPERATING REVENUES
HUD operating revenues
$ 3,828,049
— Tenant revenue, net
3,333,275
Other operating revenue
1,362,744
_ Total operating revenues
8,524,068
OPERATING EXPENSES
Housing assistance payments
3,901,926
_ Maintenance
1,537,941
Administrative
1,187,001
Depreciation
1,129,563
— General
543,116
Utilities
204,685
Protective services
32,662
— Total operating expenses
8,536,894
OPERATING LOSS
(12,826)
— NONOPERATING REVENUES (EXPENSES)
Interest income - restricted
8,753
Interest income - unrestricted
4,397
— Interest expense
(65,495)
Total nonoperating revenues (expenses)
(52,345)
Change in net position
(65,171)
— Total net position - beginning
16,758,973
Total net position - ending
$ 16,693,802
The accompanying notes are an integral part of this financial statement.
10
Collier County Housing Authority
STATEMENT OF CASH FLOWS
For the year ended September 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
HUD operating grants received
$ 4,026,967
— Collections from tenants
3,345,547
Collections from other sources
1,668,901
Payments to employees
(1,455,192)
— Payments to suppliers
(2,024,418)
Housing assistance payments
(3,901,926)
Net cash provided by operating activities
1,659,879
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Proceeds from debt 55,257
Payments on long term debt (323,881)
Interest paid (66,489)
Purchase of property and equipment (179,450)
Net cash used in capital and related financing activities (514,563)
CASH FLOWS FROM INVESTING ACTIVITIES
_ Interest received - restricted 10,648
Interest received - unrestricted 4,397
Purchase of investments (6,252)
Net cash used in investing activities 8,793
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,154,109
Cash and cash equivalents at beginning of year 3,416,618
Cash and cash equivalents at end of year $ 4,570,727
AS PRESENTED ON THE STATEMENT OF NET POSITION:
Cash and cash equivalents - unrestricted $ 2,132,002
Cash and cash equivalents - restricted 2,438,725
$ 4,570,727
The accompanying notes are an integral part of this financial statement.
11
— Collier County Housing Authority
STATEMENT OF CASH FLOWS (continued)
For the year ended September 30, 2020
RECONCILIATION OF OPERATING LOSS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
— Operating Loss
$ (12,826)
Adjustments to reconcile operating loss to
net cash provided by operating activities
— Depreciation
1,129, 563
Provision for bad debt
104,608
(Increase) decrease in assets:
— Receivables, net
178,446
Prepaid expenses
(20,711)
Inventory, net
29,353
— Increase (decrease) in liabilities:
Accounts payable
(17,355)
Accrued wages
16,267
— Accrued compensated absences
18,241
Unearned revenue
198,918
Tenant security deposits
35,375
Net cash provided by operating activities
$ 1,659,879
The accompanying notes are an integral part of this financial statement.
12
— Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Reporting entity
Collier County Housing Authority (the "Authority"), a governmental agency, was created
— pursuant to Florida Statutes Chapter 421. The primary purpose of the Authority is to
develop, acquire and operate safe, decent, sanitary and affordable housing for low-income
families and to operate the housing programs in accordance with federal legislation.
— The Authority has been a recipient of several loans and grants from Rural Housing
Services (RHS) since 1971 under Project No. 09-011-05914055 pursuant to Sections 514
and 516 of the Housing Act of 1949, as amended. The Rural Housing Services programs
— are designed to provide decent, safe and sanitary low -rent housing and related facilities for
domestic farm laborers.
— The Authority's governing board consists of a three member Board of Commissioners (the
"Board"), which is appointed by the Governor of the State of Florida. The Authority is not a
component unit of the State, as defined in Governmental Accounting Standards Board's
("GASB") Codification of Governmental Accounting and Financial Reporting Standards,
Section 2100, Defining the Financial Reporting Entity, as the Board independently oversees
the Authority's operations.
The definition of the reporting entity as described by GASB Codification Section 2100 is
based primarily on the notion of financial accountability. A primary government is financially
accountable for the organizations that make up its legal entity. It is also financially
accountable for legally separate organizations if its officials appoint a voting majority of an
organization's governing body and either it is able to impose its will on that organization or
there is a potential for the organization to provide specific financial benefits to, or impose
specific financial burdens on, the primary government.
2. Blended component unit
Some component units, despite being legally separate from the primary government, are so
integrated with the primary government that they are in substance part of the primary
_ government. These component units are blended with the primary government.
In 1990, the Authority formed a 501(c)(3) organization, CCHA Land Development
Corporation, which is a non-profit corporation organized, incorporated and controlled, by
the Authority for the advancement of affordable housing. This organization was determined
to be a component unit of the Authority. Component units are legally separate
organizations for which the primary government is financially accountable or organizations
which should be included in the primary government's financial statements because of the
nature and significance of their relationship with the primary government. In determining
how to define the reporting entity, management has considered all potential component
units.
13
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. Blended component unit (continued)
Although legally separate entities, blended component units are, in substance, part of the
Authority's operation. Accordingly, data from CCHA Land Development Corporation is
combined with data of the primary government.
3. Government -wide and fund financial statements
The government -wide financial statements report information about the reporting
government as a whole excluding fiduciary activities. The statements distinguish between
governmental and business -type activities. Governmental activities generally are financed
through taxes, intergovernmental revenues and other non -exchange revenues. Business -
type activities rely, to a significant extent, on fees and charges for support.
Governments use fund accounting, whereby funds are generally organized into three major
categories: governmental, proprietary and fiduciary. Each fund is accounted for by
providing a separate set of self -balancing accounts that constitute its assets, deferred
outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and
expenditures/expenses.
For financial reporting purposes, the Authority reports all of its operations as a single
business activity in a single enterprise fund. Therefore, the government -wide and the fund
financial statements are the same.
Enterprise funds are proprietary funds. Proprietary funds distinguish operating revenues
and expenses from non -operating items. Operating activities generally arise from providing
services in connection with a proprietary fund's principal activity. The operating revenues of
the Authority consist primarily of rental charges to tenants and operating grants from the
U.S. Department of Housing and Urban Development ("HUD"), and include, to a lesser
extent, other government grants and certain operating amounts of capital grants that offset
operating expenses.
Operating expenses for the Authority include the cost of administrative, tenant services,
utilities, maintenance, protective services, general, depreciation and housing assistance
payments. All revenues and expenses not meeting this definition are reported as non -
operating revenues and expenses, except for capital contributions, which are presented
separately.
When restricted resources meet the criteria to be available for use and unrestricted
resources are also available for use, it is the Authority's policy to use restricted resources
first, and then unrestricted resources, as needed.
14
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
4. Measurement focus and basis of accounting
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. The proprietary fund utilizes an economic resources
measurement focus. The accounting objectives of this measurement focus are the
determination of operating income (loss), change in net position and cash flows. All assets
and liabilities (whether current or noncurrent) associated with activities are reported.
Proprietary fund equity is classified as net position.
Basis of accounting refers to when transactions are recorded regardless of the
measurement focus applied. The basis of accounting used is similar to businesses in the
private sector, thus, these funds are maintained on the accrual basis of accounting.
Revenues are recognized when earned and expenses are recorded when the liability is
incurred or economic asset used.
For financial reporting purposes, the Authority considers its HUD grants associated with
operations as operating revenue because these funds more closely represent revenues
generated from operating activities rather than nonoperating activities. HUD grants
associated with capital acquisition and improvements are considered capital contributions
and are presented after nonoperating activity on the accompanying statement of revenues,
expenses and changes in net position. As provided by GASB Codification Section P80.115,
Proprietary Fund Accounting and Financial Reporting: Defining Operating Expenses, and
related guidance, tenant revenue is reported net of accounts written -off in the amount of
$70,184.
5. Summary of programs
The accompanying basic financial statements include the activities of several housing
programs subsidized by HUD and USDA RD at the Authority. A summary of each
significant program is provided below.
a. Farm Labor Housing Loans and Grants
The Farm Labor Housing Loans and Grants provides affordable financing to
develop housing for year-round and migrant or seasonal domestic farm laborers.
b. Central Office Cost Center
The Central Office Cost Center ("COCC") is a business unit within the Authority that
generates revenue through charges for services from other Authority programs and
activities.
15
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
5. Summary of programs (continued)
c. Housing Assistance Payments Programs
The Housing Assistance Payments Programs utilize existing privately owned family
rental housing units to provide decent and affordable housing to low-income
families. Funding of the programs is provided by federal housing assistance
contributions from HUD for the difference between the approved landlord contract
rent and the rent paid by the tenants.
d. HOME
The HOME program funds the tenant based rental assistance program.
e. Business Activities
— The Authority's business activities consist of Horizon Village, Section AB, Farm
Worker Village which consists of 276 rental units, and Multi -family rental which
consists of 4 rental units. The apartments are not separate legal entities but rather
housing developments owned and managed by the Authority.
6. Budgets
Budgets are prepared on an annual basis for each program and are used as a
management tool throughout the accounting cycle. Budgets are not, however, legally
adopted nor required in the basic financial statement presentation.
7. Assets, liabilities and net position
a. Cash and cash equivalents
For financial statement purposes cash and cash equivalents are considered to be
cash in banks and certificates of deposit with original maturities of three months or
less.
b. Receivables and amounts due from HUD
Receivables consist of revenues earned during the fiscal year and not yet received.
Amounts due from HUD represent reimbursable expenses or grant subsidies
— earned that have not been collected as of September 30, 2020. Allowances are
determined by management based on the specific accounts and prior experience.
16
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7. Assets, liabilities and net position (continued)
c. Investments
— Investments, when present, are recorded at fair value. Investment instruments
consist only of items specifically approved for public housing agencies by HUD and
the U.S. Department of Agriculture. Investments are either insured or collateralized
using the dedicated method. Under the dedicated method of collateralization, all
deposits and investments over the federal depository insurance coverage are
collateralized with securities held by the Authority's agent in the Authority's name. It
is the Authority's policy that all funds on deposit are collateralized in accordance
with both HUD requirements and requirements of the State of Florida.
d. Inventory
Inventory, consisting principally of materials held for use or consumption, is
recorded at cost. Based on management's experience with the types of items in
inventory and related usage plans, an allowance for obsolescence of $3,440 was
recorded as of September 30, 2020.
e. Capital assets
The Authority's policy is to capitalize equipment with a value in excess of $2,500
and a useful life in excess of five years. The Authority capitalizes the costs of site
acquisition and improvement, structures, equipment and direct development costs
meeting the capitalization policy. Capital assets are valued at historical cost or
estimated historical cost if actual historical cost is not available. Contributed capital
assets are valued at fair value on the date contributed.
Depreciation has been calculated using the straight-line method over the estimated
useful lives, which range as follows:
Buildings and improvements 20-30 years
Infrastructure 20-30 years
Modernization 15 years
Office and other furniture 3-5 years
17
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7. Assets, liabilities and net position (continued)
f. Accrued compensated absences
Compensated absences are those absences for which employees will be paid,
such as vacation and sick leave. A liability for compensated absences that is
attributable to service already rendered and that is 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.
g. Unearned revenues
Unearned revenues include amounts collected before revenue recognition criteria
are met. As of September 30, 2020 unearned revenues consists of $145,914 of
CARES Act funding and $123,657 of prepaid rents.
h. Eliminations
For financial reporting purposes, certain amounts are internal and are therefore
eliminated in the accompanying financial statements. In addition to the item
discussed in Note 13-7(d), the following have been eliminated from the financial
statements:
i.) Fee for service
The Authority's COCC internally charges fees to the AMPs and programs of
the Authority. These charges include management fees, bookkeeping fees,
front line service fees, other fee revenue and asset management fees. For
financial reporting purposes, $498,980 of fee for service charges have been
eliminated for the year ended September 30, 2020.
ii.) Internal IT reimbursement
The Authority internally charges IT costs to programs within the Authority.
For financial reporting purposes, $40,000 of internal IT charges have been
eliminated for the year ended September 30, 2020.
i. Net position
In accordance with GASB Codification Section 1800.155, Reporting Net Position in
Government -Wide Financial Statements, total equity as of September 30, 2020, is
classified into three components of net position:
18
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7. Assets, liabilities and net position (continued)
i. Net position (continued)
i.) Net investment in capital assets
This component consists of capital assets (including restricted capital
assets), net of accumulated depreciation and reduced by any outstanding
balances of bonds, mortgages, notes or other borrowings that are
attributable to the acquisition, construction and improvements of those
assets.
ii.) Restricted component of net position
This component consists of net position restricted in its use by (1) external
groups such as grantors, creditors or laws and regulations of other
governments; or (2) law through constitutional provisions or enabling
legislation. The statement of net position of the Authority reports.
USDA sinking fund reserve replacement (Note B-7(h)) $ 1,935,209
Certificates of deposit 212,303
HCV CARES act funding 145,914
_ HCV HAP reserves 43,375
Maintenance reserve 36,000
Insurance reserve 8,014
Total restricted net position $ 2,380,815
Unrestricted component of net position
This component includes all of the remaining net position that does not meet
the definition of the other two components.
8. Use of estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
19
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
9. Income taxes
The Authority and CCHA Land Development Corporation, as a component unit of a
governmental organization, qualify as tax-exempt governmental entities; accordingly, no
provision for Federal or State income tax is required.
10. Impairment of long-lived assets
The Authority evaluates events or changes in circumstances affecting long-lived assets
to determine whether an impairment of its assets has occurred. If the Authority
determines that a capital asset is impaired, and that impairment is other -than -temporary,
then an impairment loss will be recorded in the Authority's financial statements.
Management has determined that there were no such impairments as of September 30,
2020.
11. Leasina activities
The Authority is the lessor of dwelling units 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, although the resident may opt for a flat rent. Leases may
be cancelled by the lessee at any time or renewed every year. The Authority may cancel
the leases only for cause. Revenues associated with these leases are recorded in the
accompanying financial statements and related schedules within tenant revenue.
Primarily all of the capital assets of the Authority are for these leasing activities except
for certain administrative offices and equipment.
12. Impact of recently issued accounting principles
In June 2017, the GASB issued Statement No. 87, Leases, which establishes a single
model for lease accounting. This statement is effective for the Authority's September 30,
2022 fiscal year end. Management is currently evaluating the impact of the adoption of this
statement on the Authority's financial statements.
20
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES
1. Deposits and investments
As of September 30, 2020, the Authority's cash balance consists of demand deposits with
financial institutions of $4,570,727, and investment balance consists of multiple certificates
of deposit accounts for the total amount of $212,303.
In accordance with GASB Codification Sections C20, Cash Deposits with Financial
Institutions, and I50, Investments, the Authority's exposure to risk is disclosed as follows:
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely
affect the fair value of an investment. The Authority's policy to limit its exposure to declines
in fair values of its investment portfolio is to only invest in HUD allowed investments and to
monitor investments. As of September 30, 2020 the Authority had no investments, and
therefore was not exposed to interest rate risk.
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will
_ not fulfill its obligations. It is the Authority's policy to follow the HUD regulations by only
having direct investments and investments through mutual funds to direct obligations,
guaranteed obligations, or obligations of the agencies of the United States of America. As
of September 30, 2020, the Authority was not exposed to credit risk.
Custodial Credit Risk. Custodial credit risk is the risk that in the event of a bank failure,
the Authority's deposits may not be returned. The Authority's deposit policy for custodial
credit risk, requires collateral to be held in the Authority's name by its agent or by the
bank's trust department. The Authority's deposits are insured by the Federal Deposit
Insurance Corporation ("FDIC") up to $250,000, per financial institution, per depositor.
Monies invested greater than the insurance coverage are secured by qualified public
depositories pledging securities with the State Treasurer in such amounts required by
the Florida Security for Public Deposits Act. As of September 30, 2020 none of the
Authority's total bank balance was exposed to custodial credit risk, as all funds were
either fully insured or collateralized.
21
_ Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
1. Deposits and investments (continued)
Restricted cash and cash equivalents
_ As of September 30, 2020, restricted cash consists of:
Current:
_ Tenant security deposits $
270,213
HCV CARES act funding
145,914
HAP equity
43,375
Rental properties maintenance reserve
36,000
Insurance reserve
8,014
_ Noncurrent:
USDA sinking fund reserve replacement
1,935,193
USDA sinking fund
16
— $
2,438,725
The Authority maintains a sinking fund reserve according to loan parameters as described
— in Note B-7(h).
2. Receivables, net
— At September 30, 2020, receivables, net consist of:
_ Due from other governments $
171,944
Tenant receivables
109,635
Fraud recovery
9,928
_ Miscellaneous receivables
5,993
Accrued interest receivable
2,021
Total receivables
299,521
— Allowance for doubtful accounts - tenants
(36,513)
Allowance for doubtful accounts - other
(25,000)
Allowance for doubtful accounts - fraud
(9,928)
Total allowance for doubtful accounts
(71,441)
Total receivables, net $
228,080
22
—
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended
September 30, 2020
— NOTE B - DETAILED NOTES (continued)
3. Capital assets, net
A summary of the changes in capital assets for the year ended September 30,2020 is as
follows:
Balance at
Balance at
September 30,
September 30,
—
2019
Additions Deletions
Transfers
2020
Nondepreciable capital assets:
Land
$ 2,678,245 $
- $ - $
(2,000)
$ 2,676,245
Construction in progress
105,120
168,876 -
-
273,996
2,783,365
168,876 -
(2,000)
2,950,241
— Depreciable capital assets:
Buildings and impro\tements
37,128,072
- -
2,000
37,130,072
Equipment - admin
1,691,316
5,693 -
115,831
1,812,840
— Equipment - dwelling
644,062
4,881 -
(115,831)
533,112
Infrastructure improvements
5,799,049
- -
-
5,799,049
—
45, 262, 499
10,574 -
2,000
45, 275, 073
Accumulated depreciation:
Buildings and improvements
(23,313,725)
(950,223) -
-
(24,263,948)
— Equipment - admin
(505,781)
(49,858) -
-
(555,639)
Equipment -dwelling
(1,758,408)
(16,105) -
-
(1,774,513)
Leasehold improvements
(4,147,996)
(113,377) -
-
(4,261,373)
(29, 725, 910)
(1,129, 563) -
-
(30, 855, 473)
Total capital assets, net
$ 18,319,954 $
(950,113) $ - $
-
$ 17,369,841
23
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
4. Noncurrent liabilities
A summary of changes in noncurrent liabilities is as follows:
Payable at
Payable at
October 1,
September 30,
Current
2019
Additions Reductions
2020
Portion
Revenue Bonds payable:
Bond 1 - Series D Loan 006
$ 129,000
$ - $ (32,000)
$ 97,000
$ 32,000
Bond 1 - Series E Loan 008
410,000
- (32,000)
378,000
33,000
Bond 1 - Series F Loan 013
646,000
- (47,000)
599,000
47,000
Bond 3 - Series G Loan 014
3,777,000
- (113,000)
3,664,000
114,000
Bond - Series 2020
-
55,257 -
55,257
-
Subtotal
4,962,000
55,257 (224,000)
4,793,257
226,000
Notes payable
Line of credit
102,839
- (35,058)
67,781
34,520
Loan First FL
103,241
- (31,412)
71,829
33,565
Note payable SHIP
53,644
- (13,411)
40,233
13,412
Note payable Florida
Community Bank
219,961
- (20,000)
199,961
20,000
Subtotal
479,685
- (99,881)
379,804
101,497
Subtotal of long term debt
5,441,685
55,257 (323,881)
5,173,061
327,497
Accrued compensated absences
105,923
109,448 (91,207)
124,164
12,421
Total
$ 5,547,608 $
164,705 $ (415,088)
$ 5,297,225 $
339,918
Revenue Bonds
Capital facilities are financed by debt which is guaranteed and subsidized by U.S.
Department of Agriculture, Rural Housing Services (RHS). Revenue bonds are issued for
the purpose of acquiring, constructing, and erecting additions, extensions, and
improvements to the issuers existing low rent multifamily housing units and apartments and
facilities for low-income domestic farm labor within the area of operation of the issuer (the
"Project"). The bond is secured with a mortgage lien upon and a pledge of the land and
facilities of the Project and the gross revenues to be derived from the operation of the
Housing Facilities. Terms of the bond indenture contain various restricted covenants and
management believes that they are in compliance with all covenants as of September 30,
2020.
24
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
4. Noncurrent liabilities (continued)
Revenue Bonds (continued)
The Authority presently has bonds payable on its farm labor housing projects which are due
annually in installments of varying principal and interest amounts. Revenue Bonds payable
at September 30, 2020 are as follows:
Series D Bond
The Authority issued Revenue Bonds Series D (1991), in the amount of $873,380 with 1%
interest, due annually on September 1. The bond is due on September 1, 2023.
The future principal and interest maturities for this bond are as follows:
Principal Interest
2021 $ 32,000 $ 970
2022 32,000 650
2023 33,000 330
Total $ 97,000 $ 1,950
Series E Bond
The Authority issued Revenue Bonds Series E (1998), in the amount of $970,000 with 1%
interest, due annually on September 1. The bond is due on September 1, 2031.
The future principal and interest maturities for this bond are as follows:
Principal
Interest
2021
$ 33,000
$ 3,780
2022
33,000
3,450
2023
33,000
3,120
2024
34,000
2,790
2025
34,000
2,450
2026-2030
175,000
7,090
2031
36,000
360
Total $ 378,000 $ 23,040
25
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
4. Noncurrent liabilities (continued)
Revenue Bonds (continued)
Series F Bond
The Authority issued Revenue Bonds Series E (2000), in the amount of $1,415,075 with
1% interest, due annually on September 1. The bond is due on September 1, 2032.
The future principal and interest maturities for this bond are as follows:
Principal
Interest
2021
$ 47,000
$ 5,990
2022
48,000
5,520
2023
48,000
5,040
2024
49,000
4,560
- 2025
49,000
4,070
2026-2030
254,000
12,870
2031-2032
104,000
1,560
Total
$ 599,000
$ 39,610
Series G Bond
The Authority issued Revenue Bonds Series G (2015), in the amount of $4,000,000 with
1 % interest, due annually on September 1. The bond is due on September 1, 2048.
The future principal and interest maturities for this bond are as follows:
Principal _
2021
$ 114,000 $
2022
115,000
2023
116,000
2024
118,000
2025
119,000
2026-2030
611,000
2031-2035
643,000
2036-2040
675,000
2041-2045
710,000
2046-2048
443,000
Total $ 3,664,000 $
Interest
36,640
35,500
34,350
33,190
32,010
142,000
110,820
78,040
43,590
8,890
555,030
26
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
4. Noncurrent liabilities (continued)
Revenue Bonds (continued)
Series 2020 Bond
The Authority issued Revenue Bonds Series 2020, not to exceed $1,500,000 with 1%
interest, due annually on September 1. The bond is due on September 1, 2053. As of
September 30, 2020, $55,257 has been drawn. There is no current portion payable.
The future principal and interest maturities for this bond are as follows:
Principal
Interest
2021
$ -
$ -
2022
-
-
2023
42,000
15,000
2024
42,000
14,580
2025
43,000
14,160
2026-2030
221,000
64,280
2031-2035
234,000
52,970
2036-2040
243,000
41,070
2041-2045
250,000
28,790
2046-2050
261,000
16,080
2051-2053
164,000
3,290
Total
$ 1,500,000
$ 250,220
Line of credit
In August of 2019, the Authority entered into a promissory note to a bank in the amount of
$171,919 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. This note is unsecured and has
an outstanding balance of $67,781 as of September 30, 2020.
The future principal and interest maturities for this note are as follows:
Principal Interest
2021 $ 34,520 $ 4,434
2022 33,261 2,686
Total $ 67,781 $ 7,120
27
_ Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
4. Noncurrent liabilities (continued)
Loan First Florida Bank
In September 29, 2015, the Authority entered into a promissory note to a bank in the
amount of $219,150 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. This note is
— unsecured and has an outstanding balance of $71,828 as of September 30, 2020.
The future principal and interest maturities for this note are as follows:
Principal
2021 $ 33,565
2022 38.263
Interest
$ 1,839
646
Total $ 71,828 $ 2,485
Note Payable SHIP
In August of 2004, the Authority entered into a loan agreement with Collier County under
the State housing initiatives partnership for their business activity, Horizon Village. Principal
payments were deferred for a period of three years from the date of disbursement with
seventeen equal annual payments of $13,412 due beginning September 1, 2007 and
continuing until payment in full is received on August 1, 2024. Interest on this note shall be
0% per annum, except that if the Authority fails to pay this note as required, the interest rate
shall be 12% per annum from the date when the payment of this note is due until it is paid
in full. The amount payable at September 30, 2020, was $40,232.
The future principal maturities for this note are as follows:
2021
2022
2023
Total
Principal
$ 13,412
13,412
13,408
$ 40,232
28
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
4. Noncurrent liabilities (continued)
Note Payable Florida Community Bank
On May 31, 2006, the Authority executed a note payable to the Florida Community Bank in
the amount of $500,000 to finance the business activity of Horizon Village. This agreement
was amended on March 28, 2013 with a remaining debt balance of $359,961. The term of
this note is 17 years with 3% interest. Payments of principal and interest are to be made
annually. As of September 30, 2020, the outstanding balance was $199,961.
The future principal and interest maturities for this note are as follows:
Principal
2021
$ 20,000
2022
20,000
2023
20,000
2024
20,000
2025
20,000
2026-2030
99,961
Interest
$ 5,999
5,399
4,799
4,199
3,599
8,995
Total $ 199,961 $ 32,990
In addition, the borrowings mentioned above, the Authority entered into a forgivable SHIP
loan not reflected as long term debt, see Note B-7(c).
5. Pension plan
The Authority provides pension benefits for all of its full time regular employees through
a defined contribution plan. The plan is administered by the Authority. In a defined
contribution plan, benefits depend solely on amounts contributed to the plan plus
investment earnings. The Authority matches the employee pre-tax deferral contributions
up to 5% of the employee's base salary. The Authority's contributions for each
employee, and earnings thereon, are fully vested after 1 year. Contributions for the plan
and interest forfeited by employees who leave employment before vesting, are used to
reduce the Authority's current -period contribution requirement. The amounts contributed
by the Authority and its employees for the year ended September 30, 2020 were
$49,721 and $49,721, respectively. There were no pension forfeitures during the fiscal
year.
29
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
6. Risk management
The Authority is exposed to various risks of loss to torts; theft of, damages to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
As part of the Authority's risk management program, the Authority has commercial
insurance to manage its risks of loss. There were no significant reductions of insurance
coverage from prior years and actual settlements did not exceed insurance coverage for
each of the past three years.
7. Commitments and contingencies
a. Legal
In the normal course of operations, the Authority may be party to various pending
or threatened legal actions. Although the outcome of these actions is not
presently determinable, it is the Authority's opinion that any resulting liability is
not expected to have a material effect on the Authority's financial position.
b. Grants and contracts
The Authority participates in various federally -assisted grant programs that are
subject to review and audit by the grantor agencies. Entitlement to these
resources is generally conditional upon compliance with the terms and conditions
of grant agreements and applicable federal regulations, including the expenditure
of resources for allowable purposes. Any disallowance resulting from a federal
audit may become a liability of the Authority. As of the date of this report,
management is not aware of any such examinations.
In accordance with applicable standards, the amount of current year program
subsidy received in excess of associated qualifying expenses of the Housing
Choice Voucher program is presented as net program income or loss with the
cumulative excess funding being reflected in restricted net position in the basic
financial statements. As of September 30, 2020, the Authority had unspent
cumulative excess HAP funding of $87,389 which is presented as restricted net
position.
011
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
7. Commitments and contingencies (continued)
c. SHIP promissory notes
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 a 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 as income at the time of receipt
_ since the Authority believes the likelihood of repayment is remote and intends to
comply with the forgivable parameters of the borrowing.
d. Intercompany repayment agreement
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
com-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.
31
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
7. Commitments and contingencies (continued)
d. Intercompany repayment agreement (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. 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 outstanding loans, mortgages and grants. The amount due to
the Rural Rental Assistance Program from business activities as of
September 30, 2020 is $1,496,602. These interprogram receivables and
payables have been eliminated on the financial statements.
e. Funds awarded
The Authority receives funding from HUD through the CARES Act. Unspent
funded awards as of September 30, 2020, amounted to $145,914.
f. COVID-19 pandemic:
The Authority, like most other businesses, has had its operational activities
impacted by the COVID-19 pandemic to conform with current guidelines. As of the
date of this report, the overall impact and duration is uncertain.
g. 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:
September 30, Office Space
2020-2021 $ 36,473
32
Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
7. Commitments and contingencies (continued)
h. Sinking fund:
The Authority maintains a sinking fund under the terms of the revenue bonds. The
Authority is required to make monthly reserve deposits in the amount of $41,667
plus the amount of any deficiency in prior deposits until funds and investments in
the reserve account shall equal $10,000,000.
8. Concentrations
The Authority operates in a heavily regulated environment. The operations of the Authority
are subject to the administrative directives, rules and regulations of federal, state, and local
regulatory agencies including, but not limited HUD. Such administrative directives, rules
and regulations are subject to change by an act of congress or an administrative change
mandated by HUD. Such changes may occur with little notice or inadequate funding to pay
for related costs, and the additional administrative burden to comply with the changes. For
the year ended September 30, 2020, approximately 44% of revenues and none of current
receivables reflected in the basic financial statements are from HUD.
9. Financial data schedule
As required by HUD, for REAC review purposes, the Authority prepares its financial data
schedule in accordance with HUD requirements in a prescribed format which differs from
the presentation of the basic financial statements. The schedule's format presents certain
operating items as non -operating such as depreciation expense, and housing assistance
payments. In addition, the schedule's format includes non -operating items as operating
such as investment revenue, HUD capital grants revenue, interest expense and gains and
losses on the disposal of capital assets. Furthermore, the schedule reflects tenant revenue
and bad debt expense separately.
10. Subsequent events
Management has evaluated subsequent events through February 18, 2021, the date
which the financial statements were available to be issued, and noted no additional
significant items to be disclosed.
33
_ Collier County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended September 30, 2020
NOTE B - DETAILED NOTES (continued)
11. Component unit information
Component unit information for the Authority's blended
component unit CCHA, as
described in Note A-2 is presented below.
Condensed Statement of Net position:
— Assets
Current assets $
31,047
Liabilities
Current liabilities
887
Net Position
Unrestricted $
30,160
Condensed Statement of Revenues, Expenses and Changes
in Net position:
Operating expenses $
61
Change in net position
(61)
Total net position beginning
30,221
Total net position ending $
30,160
Condensed Statement of Cash Flows:
Net cash used in:
Operating activities $
(61)
Cash at beginning of the year
31,108
Cash at end of the year $
31,047
34
SUPPLEMENTARY INFORMATION
35
Collier County Housing Authority
FINANCIAL DATA SCHEDULE
For the year ended September 30 , 2020
PHA: FL075 FYED: 0913012020
Line Item
No.
Account Description
Business
Activities
Section 8
Housing Choice
Voucher Program
14.871
Blended
Component
Unit
Disaster Grants
97.036
HOME
Investment
Partnerships
Program
14.239
Rural Rental
Assistance
Payments
10.427
HCV CARES Act
funding 14.HCC
COCC
Elimination
Total
111
Cash - Unrestricted
34,949
62,327
31,047
31,467
1,569,788
-
402,424
2,132,002
113
Cash - Other Restricted
44,014
43,375
-
-
1,935,209
145,914
-
2,168,512
114
Cash - Tenant Security Deposits
144,180
-
-
-
126,033
-
-
270,213
100
Total Cash
223,143
105,702
31,047
31,467
3,631,030
145,914
402,424
4,570,727
121
Accounts Receivable - PHA Projects
-
40,554
-
-
-
-
-
40,554
124
Accounts Receivable - Other Government
-
29,247
102,143
-
131,390
125
Accounts Receivable - Miscellaneous
-
-
-
94
5,899:
-
5,993
126
Accounts Receivable - Tenants Dwelling Rents
83,840
-
25,795
-
-
109,635
126.1
Allowance for Doubtful Accounts - Dwelling Rents
(33,541)
-
2,972)
(36,513)
126.2
Allowance for Doubtful Accounts - Other
(25,000)
-
-
(25,000)
128
Fraud Recovery
9,928
-
_
9,928
128.1
Allowance for Doubtful Accounts - Fraud
9,928)
-
-
_
(9,928)
129
Accrued Interest Receivable
-
-
-
-
2,021
-
-
2,021
120
Total Receivables, net of Allowances for Doubtful Accounts
50,299
15,554
-
-
29,247
127,081
5,899
-
228,080
132
Investments - restricted
-
-
-
212,303
-
-
212,303
142
Prepaid Expenses and Other Assets
85,973
6,721
-
770
104,549
3,421
201,434
143Inventories
45,151
-
-
-
23,641
-
68,792
143.1
Allowance for Obsolete Inventories
(2,258)
-
-
-
(1,182)
-
-
(3,440)
144
Interpro ram due from
-
_
_
150
Total Current Assets
402,308
127,977
31,047
-
61,484
4,097,422
145,914
411,744
-
5,277,896
161
Land
1,262,906
-
1,413,339
-
-
-
2,676,245
162
Buildings
14,488,880
-
22,620,101
-
21,091
-
37,130,072
163
Furniture, Equipment & Machinery -Dwellings
78,080
-
-
454,377
-
655
-
533,112
164
Furniture, Equipment & Machine -Administration
332,055
116,486
-
-
1,315,816
-
48,483
-
1,812,840
166
Accumulated Depreciation
(14,955,227)
100,606)
-
-
-
15,778,452)
-
(21,188
-
(30,855,473)
167
Construction In Progress
218,740
-
-
-
55,256
-
-
273,996
168Infrastructure
2,545,840
-
-
-
-
3,253,209
-
-
5,799,049
160
Total Fixed Assets, net of Accumulated Depreciation
3,971,274
15,880
-
-
13,333,646
49,041
-
17,369,841
180
Total Non -Current Assets
3,971,274
15,880
-
13,333,646
49,041
-
17,369,841
190
Total Assets
4,373,582
143,857
31,047
61,484
17,431,068
145,914
460,785
22,647,737
See independent auditor's report.
36
Collier County Housing Authority
FINANCIAL DATA SCHEDULE
For the year ended September 30 , 2020
PHA: FL075 FYED: 0913012020
Line Item
No.
Account Description
Business
Activities
Section 8
Housing Choice
Voucher Program
14.871
Blended
Component
Unit
Disaster Grants
97.036
HOME
Investment
Partnerships
Program
14.239
Rural Rental
Assistance
Payments
10.427
HCV CARES Act
funding 14.HCC
COCC
Elimination I
Total
312
Accounts Payable - 90 Days
26,298
8,163
887
425
35,311
11,930
83,014
321
Accrued Wage/Payroll Taxes Payable
4,198
1,296
-
-
4,557
-
14,898
24,949
322
Accrued Compensated Absences
2,952
1,249
-
2,352
-
5,868
12,421
325
Accrued Interest Payable
4,954
-
-
3,948
-
-
8,902
341
Tenant Security Deposits
144,180
-
126,033
-
-
270,213
342
Unearned Revenues
59,711
-
63,592
145,914
354
269,571
343
Current Portion of Long-term Debt - Capital Projects
101,497
-
226,000
-
-
327,497
345
Other Current Liabilities
-
-
61
61
347
Interprogram Due To
-
-
-
-
-
-
310
Total Current Liabilities
343,790
10,708
887
425
461,854
145,914
33,050
996,628
351
354
Long-term Debt, net of Current - Capital Projects
Accrued Compensated Absences - Non Current
278,307
26,549
-
11,209
-
-
4,567,257
21,172
-
-
-
52,813
4,845,564
111,743
350
Total Noncurrent Liabilities
304,856
11,209
-
-
4,588,429
-
52,813
4,957,307
300
Total Liabilities
648,646
21,917
887
-
425
5,050,283
145,914
85,863
5,953,935
508.4
511.4
Net Investment in Capital Assets
Restricted Net Position
3,591,470
44,014
15,880
43,375
-
-
-
-
8,540,389
2,147,512
-
145,914
49,041
-
12,196,780
2,380,815
512.4
Unrestricted Net Position
89,452
62,685
30,160
-
61,059
1,692,884
(145,914)
325,881
2,116,207
513
Total Equity
3,724,936
121,940
30,160
61,059
12,380,785
-
374,922
16,693,802
600
Total Liabilities and Equity
4,373,582
143,857
31,047
61,484
17,431,068
145,914
460,785
-
22,647,737
See independent auditor's report.
37
Collier County Housing Authority
FINANCIAL DATA SCHEDULE
For the year ended September 30 , 2020
PHA: FL075 FYED: 0913012020
Line Item
No.
Account Description
Business
Activities
Section 8
Housing Choice
Voucher Program
14.871
Blended
Component
Unit
Disaster Grants
97.036
HOME
Investment
Partnerships
Program
14.239
Rural Rental
Assistance
Payments
10.427
HCV CARES Act
funding 14.HCC
COCC
Elimination
Total
70300
Net Tenant Rental Revenue
2,213,337
-
1,159,126
3,372,463
70400
Tenant Revenue - Other
22,246
-
8,750
30,996
70500
Total Tenant Revenue
2,235,583
1,167,876
3,403,459
70600
HUD PHA Grants
3,750,931
-
77,118
-
3,828,049
70710
Management Fee
-
-
462,853
(462,853)
-
70730
Book Keeping Fee
-
36,127
36,127)
-
70800
Other Government Grants
-
197,005
206,011
588,379
-
-
991,395
71100
Investment Income - Unrestricted
41
-
4,356
-
-
4,397
71500
Other revenue
37,898
154,145
-
6,040
213,266
(40,000
371,349
72000
Investment Income - Restricted
-
-
8,753
-
-
8,753
70000
Total Revenue
2,273,481
3,905,117
197,005
206,011
1,775,404
77,118
712,246
(538,980)
8,607,402
91100
Administrative Salaries
124,212
84,261
20,70
1125,700
-
305,254
660,134
91200
Auditing Fees
5,695
8,032
-
-
8,095
1,648
23,470
91300
Management Fees
208,436
67,367
-
187,050
-
(462,853
-
91310
Book-keepin Fee
-
36,127
-
-
-
(36,127)
-
91400
Marketing and Advertising Fees
750
655
-
477
169
2,051
91500
Employee Benefit Contributions -Administrative
45,057
41,889
1,631
42,535
83,220
214,332
91600
Office Expenses
36,634
62,377
533
26,030
24,031
149,605
91700
Le al Expenses
2,234
-
-
-
9,440
-
11,674
91800
Travel
40
360
-
-
-
-
716
1,116
91900
Other
42,573
33,632
61
-
-
24,485
140
63,728
(40,000)
124,619
93100
Water
31,103
-
-
-
13,948
-
27,708
72,759
932001
Electricity
60,804
2,343
-
-
35,383
-
17,385
115,915
93300
Gas
3,355
-
-
-
12,656
16,011
94100
Ordinary Maintenance and Operations - Labor
205,946
-
131,005
-
84
337,035
94200
OMO - Materials and Other
334,531
5,024
-
116,592
951
5,014
94300
Ordinary Maintenance and Operations - Contract Costs
251,348
133
-
280,291
-
38,271
94500
Employee Benefit Contributions - Ordinary Maintenance
101,915
-
-
66,832
4
A
95100
Protective Services -Labor
-
4,049
-
See independent auditor's report.
38
Collier County Housing Authority
FINANCIAL DATA SCHEDULE
For the year ended September 30 , 2020
075 FYED:0913012020
Line Item
No.
Account Description
Business
Activities
Section 8
Housing Choice
Voucher Program
14.871
Blended
Component
Unit
Disaster Grants
97.036
HOME
Investment
Partnerships
Program
14.239
Rural Rental
Assistance
Payments
10,427
HCV CARES Act
funding 14.HCC
COCC
Elimination
Total
95200
Protective Services - Other Contract Costs
23,936
2,536
-
1,951
28,423
95500
Employee Benefit Contributions - Protective Services
-
-
190
-
190
96110
Property Insurance
105,940
2,592
124,224
2,391
235,147
96120
Liability Insurance
20,024
2,485
35,538
1,726
59,773
96130
Workmen's Compensation
23,545
4,361
19,267
5,765
52,938
96140
All Other Insurance
2,727
1,221
-
1,443
704
6,095
96200
Other General Expenses
155
7,426
5,000
16,830
29,411
96210
Compensated Absences
24,255
7,710
32,840
44,643
109,448
96300
Payments in Lieu of Taxes
3,000
-
-
3,150
6,150
96400
Bad Debt - Tenant Rents
68,206
-
1,978
-
70,184
96600
Bad Debt - Other
-
34,424
-
34,424
96720
Interest on Notes Payable (Short and Long -Term)
16,062
-
-
49,433
-
-
65,495
96900
Total Operating Expenses
1,742,483
404,955
61
22,871
1,332,385
1,091
666,488
(538,980)
3,631,354
97000
Excess Operating Revenue over Operating Expenses
530,998
3,500,162
(61)
197,005
183,140
443,019
76,027
45,758
4,976,048
97200
Casualty Losses - Non -Capitalized
-
-
-
-
-
9,730
-
-
9,730
97300
Housing Assistance Payments
3,497,779
183,140
-
75,119
3,756,038
97350
HAP Portability -In
-
145,888
145,888
97400
Depreciation Expense
355,495
7,134
-
757,408
9,526
1,129,563
90000
Total Expenses
2,097,978
4,055,756
61
206,011
2,099,523
76,210
676,014
(538,980)
8,672,573
10010
Operating transfers in
194,076
-
-
-
-
-
2,929
197,005
10020
Operating transfers out
-
-
-
(197,005)
-
(197,005)
10000
Excess (deficiency) of total revenue
over (under) total expenses
369,579
(150,639)
(61)
-
(324,119)
908
39,161
(65,171)
11030
Beginning Equity
3,355,357
271,671
30,221
61,059
12,704,904
-
335,761
16,758,973
11040
Prior Period Adjustments, Equity
Transfer and Correction of Errors
-
908
-
-
-
(908)
-
-
�, 1
y1 t�4 ..
1104Q 7
11040.8
t'a', 'erfrom Capatat Fund of ap�tat Items
k
�t'� r Fixed Assets to HCV ' � �t
T,r4tss#�r�'trsaster,G.rants
`t'raesferC0CC ..... ..,1 , „w_ � ., „ _ .. :.
r
/ ,.�„
y y'
A
�
s
-
;� ; .. -
F
,,
� .�...
�,.
r t.a
�, ����:
\
>�.,
r
�,.,,.
g�;•
� ,
i
�.,•�.
\. 1
�` •
;'.
�:..
i•\
F
11170
Administrative Fee Equity
78,565
-
78,565
11180
Housing Assistance Payments Equity
-
43,375
-
-
-
43,375
11190
Unit Months Available
5,664
5,592
-
-
3,780
15,036
11210
Number of Unit Months Leased
4,436
4,785
-
242
3,243
12,706
11640
Furniture and Equipment - Administration Purchases
3,696
3,696
See independent auditor's report.
39
Collier County Housing Authority
Schedule of Actual CARES Act Fund Programs Costs and Advances
For the year ended September 30, 2020
PROGRAM 14.HCC
BUDGET
ADVANCES
Prior years
Current year
Cumulative as of September 30, 2020
COSTS
Prior years
Current year
Cumulative as of September 30, 2020
UNSPENT ADVANCES
$ 223,032
223,032
223,032
77,118
77,118
$ (145,914)
See independent auditor's report.
40
Collier County Housing Authority
FARM WORKER SUBSIDIZED HOUSING PROGRAM - UNAUDITED
For the year ended September 30, 2020
The following is supplementary information requested by the U.S. Department of Agriculture - Rural
Housing Services (formerly Farmers Home Administration).
1. Schedule of Insurance Coverage
At September 30, 2020, the Authority had the following insurance coverage in effect:
Amount of
Insurance Carrier
Type of Coverage
Coverage
Term
Fidelity bond/Employee Dishonesty
Travelers Insurance Co.
$100,000 Deductible
$2,000,000
5/1/20-05/01/21
Amtrust W/Comp
Workers' Compensation
Statutory
10/01/20-10/01/21
— Florida PH Authority Insurance
Automobile liability
$1,000,000
05/01/20-05/01/21
Florida PH Authority Insurance
Property, Office Building & Personal
_
Property, Fire & Extended Coverage
(90%coinsurance)
$44,169,134
05/01/20-05/01/21
General Liability Personal Injury,
$1,000,000 Occ
05/01/20-05/01/21
— Florida PH Authority Insurance
Products, Advertising, Property Damage
$2,000,000 Agg
05/01/20-05/01/21
Florida PH Authority Insurance
Directors & Officers Liability
$1,000,000
05/01/20-05/01/21
$250, 000
Wright Flood Insurance
Flood Insurance
1250.00 deduct
11/06/20-11/06/21
— Beazley
Cyber Liability
$1,000,000
05/01/20-05/01/21
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, 2020. See also Notes to Financial Statements for additional
information.
4. Accounting Records and Fixed Asset Control - The accounting records maintained are
adequate to facilitate budgetary reporting and analytical purposes. The fixed assets are also
adequately safeguarded by the Authority personnel.
5. Financial Reports - The financial reports included in this audit are in agreement with the
accounting records of the Authority after audit adjustments have been made.
41
Collier County Housing Authority
FARM WORKER SUBSIDIZED HOUSING PROGRAM - UNAUDITED
For the year ended September 30, 2020
6. Deposit Funds - We noted that deposit funds are adequately insured by the FDIC and
properly collateralized and are at or exceed the reserve levels required under the Loan and
Grant Agreement as of September 30, 2020.
7. Comments on Compliance and Administrative Internal Control - We have audited the
basic financial statements of the Collier County Housing Authority and have issued our report
thereon dated February 18, 2021, on our consideration of the Authority's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Authority's internal control over
financial reporting and compliance.
Finally, we have also issued a report on the Authority's compliance with the types of
compliance requirements described in the Compliance Supplement that could have a direct
and material effect on each of the Authority's major federal programs for the year ended
_ September 30, 2020. 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, 2020 - See the
schedule of findings and questioned cost as well as the management letter dated February 18,
2021 for any findings and management comments.
9. The Required Schedule of Expenditures of Federal Awards along with required reports on
Internal Controls and Federal Compliance as outlined under Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance) were issued to the Authority as one
report, as mandated by the Amended Single Audit Act of 1996 Amendment (Public Law 104-
156).
10. Accounts Receivable -Tenants - Tenants accounts receivable at September 30, 2020 totaling
$22,823 were accounts aged at ninety days (90) or less.
11. Accounts Payable consists of $35,311 at September 30, 2020. 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 $187,050 were charged by the COCC.
42
Collier County Housing Authority
FARM WORKER SUBSIDIZED HOUSING PROGRAM - UNAUDITED
For the year ended September 30, 2020
13. Schedule of Financial Institutions Where the Housing Authority Maintains its Bank
Accounts.
Name of Financial Institution Account Name
First 1 Bank USDA Reserve Account
1300 N. 15th St., Suite 2 COCC Account
Immokalee, FL 34142 COCC Payroll Account
COCC Insurance Reserve
CCHA Land, Inc.
AB Revenue Account
AB Security Deposit Fund
Section A&B Insurance Reserve
Horizon Village Operating
Horizon Village Insurance Reserve
AB Maintenance Reserve
Irma Account
First Florida Integrity Bank
P.O. Box 10910
Naples, FL 34104-0910
Security Deposit Fund USDA
Certificates of Deposit (2)
Bond & Sinking Fund
Revenue Account USDA
TBRA HOME Operating
Section 8-Admin Funds
Section 8-HAP
Construction Account
Family Self Sufficiency
O & M Operating
COCC Laundry
USDA Insurance Reserves
Section 8 Admin Insurance Reserves
Rental Properties Insurance Reserves
Residential Portal Account
Rental Properties
Rental Properties Security Deposit
Petty Cash & Misc.
Reconciled
Balance
(considers
deposits in -
transit and
outstanding
Bank Balance
checks)
$ 1,935,193
$ 1,935,193
406,474
412,344
71,050
71,050
9,554
9,554
31,047
31,047
153,392
112,981
137,563
138,070
69,590
69,590
173,721
160,754
10,456
10,456
340,000
360,000
616,868
616,868
3,954,908
3,927,907
129,989
127,551
212,303
212,303
16
16
16,217
11,126
103,363
56,816
13,834
10,088
226,827
207,797
100
100
102
102
4,399
3,895
30,073
62,243
75,155
75,155
15,023
15,023
8,014
8,014
30,000
36,000
26,588
23,780
4,442
4,442
896,445
854,451
-
672
$ 4,851,353 $ 4,783,030
Classification
USDA Restricted
USDA Restricted
USDA Restricted
The above amount were verified using statements for the Institutions listed at September 30, 2020.
43
Collier County Housing Authority
FARM WORKER SUBSIDIZED HOUSING PROGRAM - UNAUDITED
For the year ended September 30, 2020
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
David B. Genson
Randolph B. Cash
Jay Roth
16. Schedule of Rental Information
Expiration of Term
Address
November 7, 2018
Naples, Florida
October 17, 2018
Naples, Florida
October 27, 2019
Ave Maria, Florida
Unit Size
Number of
Units
Rental Rate
Months
One bedroom unit
33
$
475
12
Two bedroom unit
111
$
530
12
Three bedroom unit
102
$
577
12
Four bedroom unit
69
$
599
12
315
Actual Rental Revenue
Tenants
RHA rental assistance subsidy
Percentage
66.33%
33.67%
Gross Potential
Re nt
$
188,100
$
705,960
$
706,248
$
495,972
$
2,096,280
Amount
$ 1,159,126
588,379
$ 1,747,505
Note 1 - Rental rates were effective October 1, 2017. Management provides for the monthly
collection of rent.
17. Real Estate Taxes - The Authority is a local public body corporate and politic and is tax
exempt by State of Florida, Section 423.
44
Collier County Housing Authority
0-
CERTIFICATE OF BORROWER - UNAUDITED
For the year ended September 30, 2020
Housii�g.durhor+ry,
v
Y
February 18, 2021
USDA Rural Development Office
420 South SR 7, Suite # 166
Royal Palm Beach, FL 33414
In accordance with the criteria specified in Section 5; Paragraph 4.16 C. of the USDA Rural Development
Handbook (HB-2-3560) for the year ended September 30, 2020, the borrower must self -certify that
Collier County Housing Authority (the Authority) is in compliance with the nine performance
standards. The following is a summary of our compliance with the performance standards.
1. The required accounts are properly maintained and tracked separately. The accounts we
maintain are marked below:
X Operating Account(s) X Security Deposit Account
X Tax & Insurance Account X_Reserve Account
X Other Accounts: Debt Service
2. The payments from operating accounts are disclosed and accurately represented.
3. The reserve account(s):
a. is on schedule with the Agency required minimum funding requirements;
b. is maintained in a supervised bank account that requires the Agency's countersignature
on all withdrawals;
c. is on schedule with contributions to the reserve account for the current year with the
Agency required minimum funding; and
d. replacement reserve accounts were used only for authorized purposes in accordance
with 7 CFR 3560.306(g).
4. The tenant security deposits accounts are fully funded and are maintained in separate accounts.
5. The payment of owner return was: N/A (owner is a government entity)
N/A paid in the amount of $_for 20XX fiscal year and was (was not) in accordance
with the Agency's requirements; OR
N/A not paid during the reporting year; OR
N/A not allowable due to our non-profit status; OR
N/A not allowable due to our non-profit status. However, an asset management fee in
the amount of $ 0 was paid for 20XX fiscal year.
45
Collier County Housing Authority
CERTIFICATE OF BORROWER - UNAUDITED
For the year ended September 30, 2020
6. The borrower has maintained proper insurance in accordance with the requirements in 7 CFR
3560.105. Coverage maintained for the Authority is as follows:
X Liability Insurance Flood Insurance
X Property Insurance _Earthquake Insurance
X Fidelity Bond X Other: Public Officials Liability
7. All financial records are adequate and suitable for examination.
8. There have been no changes in the ownership of the Farm Worker Subsidized Housing
Program, other than those approved by the Agency and identified in the certification. The
Board of Commissioners is active and maintains oversight responsibilities for the project.
9. Exemptions from Real Estate and Income Taxes: The Authority is a public body corporate and
politic pursuant to Chapter 421, Laws of the State of Florida, which is subsidized by the
Federal Government. The Authority is not subject to Federal, State income taxes, or Local
property taxes, nor is it required to file Federal and State income tax returns as a public body
corporate and politic pursuant to Chapter 423, Laws of the State of Florida.
I certify that the above is true, accurate and is properly supported by documentation kept in our files.
� a
Oscar Hentschel
February 18t', 2021
Collier County Housing Authority
M
SINGLE AUDIT AND COMPLIANCE INFORMATION
47
Collier County Housing Authority
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended September 30, 2020
'
Federal
Federal Grantor/Pass-Through Grantor/
CFDA
Program or Cluster Title
Number
Expenditures
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOME
14.239
$ 206,011
Housing Voucher Cluster:
— Section 8 Housing Choice Voucher Program
14.871
$ 3,750,931
HCV CARES Act funding
14.HCC
77,118
Subtotal Housing Voucher Cluster
3,828,049
U.S. DEPARTMENT OF AGRICULTURE
Farm Labor Housing Loans and Grants
10.405
4,793,257
Rural Rental Assistance Program
10.427
588,379
U.S. DEPARTMENT OF HOMELAND SECURITY
Disaster Grants - Public Assistance
97.036
197,005
_ TOTAL EXPENDITURES OF FEDERAL AWARDS
$ 9.612.701
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the
Collier County Housing Authority and is presented on the accrual basis of accounting. The information in
this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or
used in the preparation of, the basic financial statements.
In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8
Housing Choice Voucher Program, CFDA No. 14.871, to be an expenditure for the purposes of this
schedule. Therefore, the amount in this schedule is the total amount received directly from HUD.
NOTE B - INDIRECT COST RATE
The Authority did not elect to use the 10-percent de minimis indirect cost rate.
NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contains in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
NOTE D - NONCASH FEDERAL ASSISTANCE
The Authority received noncash Federal assistance for the year ended September 30, 2020, in the form of
the Farm Labor Housing Loan.
NOTE E - SUB -RECIPIENTS
During the year ended September 30, 2020, the Authority had no sub -recipients.
NOTE F - CARES ACT FUNDING
The Authority had $145,914 of CARES Act funding awarded but unspent as of the year ended September
30, 2020.
See independent auditor's report.
48
BERMAN HOPKINS
CPAs & ASSOCIATES, LLP
o
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Collier County Housing Authority
Immokalee, Florida
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the business -type activities of the Collier County Housing Authority (the
"Authority"), as of and for the year ended September 30, 2020, and the related notes to the
financial statements, which collectively comprise the Authority's basic financial statements, and
have issued our report thereon dated February 18, 2021.
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) as a basis for designing audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
49
MEUBOURNE ORLANDO TITUSVILLE
8035 Spyglass Hill Road 255 South Orange Avenue, #1545 917 South Washington Avenue
Melbourne, FL 32940 Orlando, FL 32801 Titusville, FL 32780
321-757-2020 407-841-8841 321-267-2190
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements
are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Purpose of this Report
This report is intended solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's
internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Authority's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
February 18, 2021
Melbourne, Florida
Fezf,t" goad 2Un A & zagaW
e, d, 1'zp
50
.�� BE
RMAN HOPKINS
CPAs & ASSOCIATES, LLP
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED
BY THE UNIFORM GUIDANCE
Board of Commissioners
Collier County Housing Authority
Immokalee, Florida
Report on Compliance for Each Major Federal Program
We have audited 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 the Authority's major federal program for the year ended September 30,
2020. The Authority's major federal program is identified in the summary of auditor's results section
of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the Authority's major federal
programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance").
Those standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred.
An audit includes examining, on a test basis, evidence about the Authority's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the Authority's
compliance.
51
MELBOURNE ORLANDO TITUSVILLE
8035 Spyglass Hill Road 255 South Orange Avenue, #1545 917 South Washington Avenue
Melbourne, FL 32940 Orlando, FL 32801 Titusville, FL 32780
321-757-2020 407-841-8841 321-267-2190
Opinion on Each Major Federal Program
In our opinion, the Authority complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on its major federal
program for the year ended September 30, 2020.
Report on Internal Control Over Compliance
Management of the Authority is responsible for establishing and maintaining effective internal
control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered the Authority's internal control
over compliance with the types of requirements that could have a direct and material effect on
each major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for the major federal
program and to test and report on internal control over compliance in accordance with the
Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Authority's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
February 18, 2021
Melbourne, Florida
Fein qo&m 2U'ze& zaga M
e; r a .Czp
52
Collier County Housing Authority
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
September 30, 2020
A. SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
Material weakness identified? No
Significant deficiency identified? None reported
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major program:
Material weakness identified? No
Significant deficiency identified? None reported
Type of auditor's report issued on compliance for major program: Unmodified
There are no findings disclosed in this report that are required to be reported in accordance
with 2 CFR 200.516(a).
The program tested as a major program is as follows:
Housing Voucher Cluster:
Section 8 Housing Choice Voucher Program - CFDA 14.871
The threshold for distinguishing types A and B programs was $750,000
Did the auditee qualify as a low -risk auditee? Yes
B. FINDINGS -FINANCIAL STATEMENTS AUDIT
None.
C. FINDINGS AND QUESTIONED COSTS - FEDERAL AWARD PROGRAMS
None.
53
Collier County Housing Authority
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
September 30, 2020
2019-001 Eligibility
U.S. Department of HUD
— Section 8 CFDA No. 14.871
Significant deficiency in internal control
Other matter required to be reported in accordance with Uniform Guidance
Condition: Out of a total tenant population of approximately 430, 25 tenant files were
tested and the following deficiencies were noted:
• Two files where income was miscalculated, which caused a change in the
tenant's rent in both files.
• One file where there was no income support.
• Two files where the utility allowance was miscalculated, which caused a change
in the tenant's rent in both files.
• One file where the utility allowance was calculated correctly but was reported
incorrectly, which caused a change in the tenant's rent.
• One file where the address on the HAP contract was reported incorrectly.
• One file had a missing lease agreement.
• One file where an inspection has not been performed for 3 years.
Auditor Recommendations: The Authority should establish quality 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.
Current Status: Cleared in the current year
54