Audit YE 2009

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The Hoasing Authority of the City of Lafayette Lafayette, Louisiana Annual Financial Report As of and for the Year Ended September 30,2009
Under provisions of state law, this report is a public document, A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for pubiic inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish cleric of court. Release Date
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The Housing Authority of the City of Lafayette Table of Contents Statement rNDEPENDEOT AUDITORS' REPORT REQUIRED SUPPLEMENTAL INFORMATION Management's Discussion and Analysis (MD&A) BASIC FINANCIAL STATEMENTS ENTERPRISE FUNDS: Balance Sheet Statement of Revenues, Expenses, and Changes in Fund Net Assets Statement of Cash Flows Notes to the Basic Financial Statements Index Notes SUPPLEMENTAL INFORMATION Compensation Paid Board Membere Financial Data Schedule OTHER REPORTS REQUIRED BY GOVERNMENT AUDITING STANDARDS AND BY OFFICE OF MANAGEMENT AND BUDGET OMB CIRCULARA-133 Report on Intemal Control Over Financial Reporting and on Compliance and otiier Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards Report on Compliance With Requirements Applicable to Each Major Program and on Intemal Control Over Compliance in Accordance Witii OMB CIRCULARA-133 Schedule of Expenditures of Federal Awards Notes to the Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs OTHER INFORMATION Summary Schedule of Prior Audit Findings Corrective Action Plan for Current-Year Findings and Questioned Costs Status of Prior Year Management Letter Items Page 1-2 3 4-8 9 A B C 10-11 12 13-14 15 16-27 29 30-43
44-45 46-47 48 49 50-65 66-74 75-87 88
ALLEN, GREEN & WILLIAMSON, LLP

CERTIFIED PUBLIC ACCOUNTAMTS P.O.Bt6073 Monroe. LA 71211-6075 2441 Tower Drive Monroe. LA 71ZD1 The CM. _ Never Undereatmaee The V A J ^ ToQ-free: (888)741-0205 www.aI[engrBenq}a.cam Telephone: (318) 38M422 Fax: (318) 388-4664
TimGrM3i,CPA Margie WiUiainson. CPA AmyTyncs, CPA Aimee BndUDun, 0*A RBdMlDaviStCPA DiBDBFenchoEtCPA JodiaLetg,CPA Quint Mattm. CPA
&imMcaide,CPA J'auoioia Mercer, CPA Cindy TlKKnason, CPA Angie WtUaiuoa, CPA B O M LAIN. CPA
INDEPENDENT AUDITORS' REPORT Board of Commissioners The Housing Autiiority ofthe City of Lafayette Lafayette, Louisiana We have audited the accompanying financial statements of each major fimd (primary government),ttiediscretely presented component unit, and the aggregateremainingfiindinfonnation ofthe Housing Authority oftfieCity of Lafeyette, as of and for the year ended September 30,2009, which collectively comprise the Housmg Autiiority*s basic financial statements as listed in thetebleof contents. These linancial statements aretiieresponsibility ofthe Housing Authority's management Our responsibility istoexpress opinions ontiiesefinancialstatements based on our audit We did not audit thefinancialsstatements ofthe discretely presented component unit ofthe Housing Authority, which represents 100% ofthe assets, net assets and revenues as of December 31,2008 ofthe discretely presented component unit Those fmancial statements were audited by other auditors whose reporttiiereonhas b e ^ fiimishedtous, and our opinion inso^ as itrelatestothe amounts included fortiiediscretely presented component unit is based solety on thereportoftiieotiier auditors. We conducted our audit in accordance witii auditing standards generally accq>ted intiieUnited States ofAmerica and the standards ^plicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whethertiiefinancialstatements are free of material misstatement Thefinancialstatements ofthe discretely presented component unit were not audited in accordance with Government Auditing Standards. An audit includes consideration of intemal control overfinancialreporting as a basis for designing audit procedures that are appropriate intiiecircumstances, but not fortiiepurpose of expressing an opinion on the efectiviess ofthe Housing Autiiority's intemal control ova- financial reporting. Accontingly, we express no such opinion. An audit also includes examining, on a tsst basis, evidence supporting the amounts and disclosures intiiefinancialstatemente, assessingtiieaccounting principles used and significant estimates made by manêment, as well as evaluating the overallfinancialstatement presentation. We believetiliatour audit provides a reasonable basis for our opinions. In our opinion, based on our audit andtiiereportof otiier auditors, thefinancialstatementsreferredtoabove present fairly, in all material respects, tbe respective financial position of each major fund (primary government), the discretely presented component unit, and the aggre^teremainingfimdinfomiation oftiieHousing Autiiority, as of September 30,2009, andtiierespective changes infinancialposition and cashflowsthereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 21 intiien o ^ oftiiefinancialstatements, the Housing Authority has changedtiiemethod of presentation conceming the discretely presented component unit.
1
Also Loctied in Sbrevqiait. Louinaiia Member Amenwi butitule of CettiSed PuUie Accoanbtits, Sodety of Louiiisiu CotiSed Iîblic Accountantt, Americnlnititute of Certified PuUic Accountants Divisioafin*CPA F u i ^ Einpkoe Benefit Audit Qoali^ Coiter, and the Oovemmem AudU Quali^ Cratei' Gqual OppDrtuni^ &tipl(iyer
In accordance witii Govemment Auditing Standards, we have also issued our report dated June 30,2010, on our consideration ofthe Housing Authority's intemal control overfinancialreportingand on our tests of ita compliance with certain provisions of laws,repilations,contract, and grant agreements and otiier matters. The purpose of that report istodescribe the scope of our testijig of intemal control over financial reporting and compliance andtiieresults oftiiattesting,and nottoprovide an opinion on the internal control overfinancialreportingor on compliance. That report is an integral part of an audit performed in accordance witii Govermnent Auditing Standards and should be considered in assessing theresultsof our audit The Management's Discussion and Analysis, as listed in the table of contenta, is not a required part oftiiebasic financial statemente but is supplemental infonnation required bytiieGovemmraital Accounting StaiânJs Board. We have Implied certain Innited procedures, which consisted principalty of inquiries of managementregardingthe metiiods of measuremrait and presentation oftilierequiredsupplemental infonnation. However, \TO did not audit the infomiation and express no opinion on it Our audit was conducted fortiiepurpose of foiming opinions on thefinancialstatemente which collectively conqnise tiie Housing Autiiority's basic fmancial statemente. The accompanying information identified in the table of contente as other supplemental infcmnation, which includestiieFinancial Data Schedule required by HUD, is presented for purposes of additional anal^îs and is not a required part ofthe basic financial statemente. Also, the schedule of expenditures of fedra^l awards, which is required bytiieU. S. Ofiice of Management and Budget CircularA-133, Audite of States, Local Governments, and Non-Profit Organizations is presentedforthe purpose of additional analysis and is not a required part ofthe basicfinancialstatemente. Such infonnation has been subjected to the auditing procedures applied in the audit oftiiebasic fmancial statemente and, in our opinion, is &irly stated, in all material respecte, inrelationtothe basic fmancial statemente taken as a whole. Also,tiieaccompanying other information, as listed intiietable of contente, is presentedfin-purposes of additional anal}îs and is not a required part ofthefinancialstatemente oftiieHousing Authority. Such infomiation has not been subjected to the auditing procedures applied in the audit ofthe basic fmancial statemente and, accordingly, we express no opinion on it
^ ^ ^ , .^:4^<*^^^<^^^.^^^^4 ^ ^ ^ ^
ALLEN, GREEN & WILLIAMSON, LLP Monroe, Louisiana
June 30,2010
Housing Authority ofthe City of Lafayette
REQUIRED SUPPLEMENTAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
Housing Authority of tbe City of Lafoyette Managements Discussion and Analysis (MD&A) September 30,2009 As management of tiie Housing Autiiority, we offer readers of tiie Housing Audiority's financial statemente this narrative overview and anatysis of the financial u:tivities of the Housing Authcity for tiie fiscal year ended September 30,2009. The Managements Discussion and Analysis (MD&A) is an element ofthe new reporting model adopted by tiie Govemmental Accountmg Standards Board (GASB) in their Statement No. 34 Basic Financial Statemente - and Mana^menfs Discussion and Anal)îs - for State and Local Govemmente issued June 1999. Ortain comparative infonnation between the current year and tiie prior year is required to be presented in the MD&A. Unless stated otiierwise, information presented intiieMD&A is in thousands. FINAJ>fCIAL HIGHLIGHTS The asscte of the Housmg Authority exceeded its liabilities at the close of the most recent fiscal year by $10,716,981 {net assets). Of this amount, $3,386,758 {unrestricted net assets) may he used to meet flie govemmenfs ongoing obligations to citizens and creditors. As oftiieclose ofthe currentfiscalyear, the Housing Autiiority*s enterpr^ fimds reported combined endmg net assete of $10,716,981, an mcicase of $726,420. Approximately 31.6% oftiiistotal amount is available for spending at the Housing Authority's discretion (unrestricted net assete). Attiieend oftiiecurrentfiscalyear, unrestricted net assete fortiiegeneral fund were $1,236,059, which totaled 28.6% of operatmg expenses. Unrestricted net assete ofthe Section 8 fund of $2,205,535 is 20.0% of total Section 8 operating expensesforttieyear. Unrestricted net assete ofthe otiier enterprise fimd of ($54,836). Net assete ofthe general fimd increased $54,024fiomthe prior year. Net assete ofthe Section 8fimdincreased $734,775. Theotherenterprisefundnetassetedecreased$62,379. Additionally, the Housing Autiiority had a prior period adjustment which increasedtiienet asseteforthe generalfimdby $ 175,919, decreasedtiienet assete fortiieSection 8fondby $ 151.439 and decreased the net assets for the other enterprisefiindby $24,480, which had a net effect of zero on the Housing Autiiority*s net assets as a whole. See Note 20 m tiie notes to tiie financial statemente for further information. The discretety presented component unit consiste oftiieSt Antoine Gardens, L.P. m whichtiiefiscalyear ended December 31,2008 was thefirstfiill year of operations. Thetotaloperating revenuesforthefiscalyear ended December 31, 2008 were $245,753 and tiie total operating expenditures were $334,328. The change in net assete totaled a loss of $105361. Comparative information will be presented infiitureyears. AcopyoftiieSt Antoine, L.P.'s auditreportmay be obtainedfix)mthe discretely presented component unit OVERVIEW OF THE FINANCUL STATEMENTS This discussion and analysis is intended to serve as an introductiontotiieHousing Autiiorit/s basicfinancialstatemente. Tlie Housing Authority's basic financial statemente comprise two componente: 1) fimdfinancialstatemente, and 2) notestothe basicfinancialstatements. This import also contains otiier supplementary information in additiontotiiebasicfinancialstatementettiemselves.TTie Housmg Autiiority is a special-purpose government engaged only in business-type activities. Accordingly, onlyfimdfmancial statemente are presented astiiebasicfinancialstatemente. FUND FINANCIAL STATEMENTS A fund is a grouping of related accountetiiatis usedtomaintain control over resourcestiiathave been segregated for specific activities or objectives. The Housing Autiiority, like otiier state and local govemmente, uses fimd accounting to ensure and demonstrate compliance with fmance-related legal requiremente. The fimds oftiieHousing Authority arereportedas proprietaryfimdtypes.
Housing Authority of the City of Lafiiyette Managemenfs Discussion and Analysis (MD&A) September 30,2009 USING THIS ANNUAL REPORT The Housmg Auttwrity's annual report consist offinancialstatementetiiatshow infomiation about the Housing Authority's most significant fimds - such as ttie Housing Autiiority's general fimd. Section 8 fimd, and other enterprise fimd.
Rcgnired Supplemental Information Managemenf s Discussion & Anatysis (MD&A)
Basic JFipancial S l l S S i B l l i H i i B
Fund Financial Statemente'
Notes to the Basic Financial Statements ^

SupTDlemental Infonmation Schedule of Compensation Paid3oard Memliers FinandalData Schedule
Smgle Audit Information Other Infonnation Summary Schedule of Prior Audit Finding^ Corrective Action Plan for Auditor's Current Yiear Findings Status of Prior Management Letter Items
Housing Authority ofthe City of Lafayette Management's Dbcnsslon and Analysis (MD&A) September 30,2009 FINANCIAL ANALYSIS The Housing Autiiority's net assete were $10,716,981 at September 30,2009. Of tiiis amount, $3,386,758was unrestricted. As we noted earlier, the Housmg Autiiority uses fimds to help it control and manage money for particular purposes. Tbe general fund is used to account for the public housing and capital fimd programs. Section 8 vouchers and the Disaster Housing Assistance vouchers are accounted for in the Section 8 fimd. Our analysis below fiicuses on tiie net assete and tbe change m net assete ofthe Housing Authority as a \s1iole. Table 1 Net Assete (in thousands) 2009 6,890 141 8,355 15,386 2,569 Ml 1,959 4.669
2008
Cmrent assets Restricted curreait assete Capital assets, net Non current assets Total assets Curreot liabilities Current liabilities payable fiom current restricted assets Long-tom liabilities Total liabilities Net assete Invested in coital assets, net of related debt Restricted for HAP Unrestricted Total net assets .
3,349 140 8,992 583 13,064 846 140 2,087 3,073
Variance $ 3,541 1 (637) (583) 2,322 1.723 1 (128) 1,596
6,373 957 3.387 10,717
6,923 623 2,445 9,991
(550) 334 942 726
Housing Authority ofthe City of I^fayette M a u ^ e m e n t ' s Discussion and Analysis (MD&A) September 30,2009 Table 2 Changes in Net Assets ^ thousands) 2009 Revenues/capital contributions: Operating revenues Rent Otiier Federal grante Nonoperating revenue Interest earnings Capital contributions Totalrevenues/capitalcontributions Expenses: Operating expenses Administration Tenant services Utilities Maintenance Protective service General expenses Housing assistance paynraite Depreciation Total operating expenses Non operating eiqiense: Interest expense Total expenses Ino-ease (decrease) in net assete 2008 Variance
1.212 1,030 13,985 37 196 16.460
1.139 718 10,580 22 350 12,809
73 312 3,405 15 (154) 3,651
2,854 335 466 913 86 1,615 8,534 838 15,641 93 15,734 726
2,052 159 497 910 63 604 7.298 820 12,403 70 12,473 336
802 176 (31) 3 23 1,011 U36 18 3,238 23 3,261 390
Total revenues increased by $3,651 due primarily to a $385 increase dwelling rente and otiier revenue along with a $3,405 increase in federal grante received. Oftiiisincrease mfederalgrante. $563 wasreceivedin Public Housing and $2,833 was received in Section 8 programs. This increase infimdingallowed the Housing Autiiority to provide assistance to a greater number of individuals. Total expenses increased $3,238 due primarilytoan uicrease in administrative and tenant service cost of $978 and an increase in general expenses for administering various programs of $1,011 and an increase of $1,236 for Housing Assistance Paymente. Oftiiis$3,238 mcrease, $438 can be attributabletoPublic Housing and $2,766totiieSection 8 programs. This increase in expenses resultedfromvarious increases in services provided bytiieHousing Authority along with increase in paymente to landlords for rental assistance.
Houshig Autiiority ofthe City of Lafayette Management's Discussion and Analîs (MD&A) September 30,2009 CAPITAL ASSET AND DEBT ADMINISTRATION OgjUal Assets At September 30,2009,lhe Housing Authority had $8,355,123 invested in a broad range of capital assete, inchiding land, buildings, and fiuniture and equipment This amount represente a net decrease (including additions, deductions and depreciation) of $637,052 or 7.1% fh>m last year. See Note 6 to the fmancial statemente for more detail on coital assete. The decrease in ctqiital assete is due mainty to a n^ increase m constniction in progre^ of $99 and tiie addition of equipment purchased for $104 coupled with an increase in accumulated depreciation of $834. Capital Assete
C tfaonsands) m
2009 Land Construction in progress Site improvemente and buildings Furniture and equipmexit Totals Debt Our long-term debt includes accrued aimual and sick leave (compensated absences payable) of $ 149. Also included in debt is a bank loan ui the amount of $425 and a capital lease payable of $1,557. We present more detail about our long-term liabilities in the Note 9 to the financial statemente. ECONOMIC FACTORS The Housing Autiiority is primarily dqiendent upon HUDfortiiefimding of operations; therefore,tiieHousing Authority is affected more bytfieFederal budget thmi by local economic conditions. CONTACTING THE HOUSING AUTHORITY'S FINANCIAL MANAGEMENT Our financial report is designed to provide our citizens, taxpayers, and mvestors and creditors with a general overview of tiie Housing Authoritys finances and to show the Housing Autiiority's accountability for the money it receives. If you have questions about thisreportor wish to request additionalfoiancialmformation, contact Mr. Walter Guillory, Executive Dkector, atflieHousing Autiiority oftiieCity of Lafayette, 115 Kattie Drive, Lafêtte, Louisiana 70501, telephone number (337) 233-1327. $ 1.390 441 6,411 113 8,355 $ 2008 U90 342 7.190 70 8.992
The Housing Anthority ofthe City of Lafayette
BASIC FINANCIAL STATEMENTS
HOUSING AUTHORITY OF THE CITY OF LAFAYETTE ENTERPRISE FUNDS Batance Sheet September 30,2009 Statement A TOTAL OTHER PRIMARY ENTERPRISE GOVERNMENT
GENERAL ASSETS Current Assets Cash and cash equlvalente Investmente Accounts receivable, net Developer fee recalvable from Component Unit interfund receivable Due ^ m component unit Prepaid items and other assete Inventory Resbicted As^ts Resected deposlte Total Current Assete Noncun-ent Assete Otherassete Capital Assets Land, buildings, and equipment (net of accumulated depreciation) Notes receivable from Component Unit Defened developer feereceivablefrom Component Unit Total Noncurrent Assets TOTAL ASSETS
SECTION B
COMPONENT UNIT
207,429 $ 133.106 280,713 0 896,418 0 160,263 64,927
2.756,903 $ 1,205,652 304,957 227,364 0 379,327 133.060 0
46,497 $ 0 2,839 0 90.000 0 0 0
3,010,829 $ 1,338.758 588.509 227,364 986,418 379,327 293,323 64.927
192.956 0 15,414 0 0 D 0 0
100.455 1.843..<i11
40.518 5.047.781
0 139.336
140.973 7.030.428
18.718 227.088
104.437
7,920,231 0 0 7.920.2.31
429.601 0 0 429.601 5.477.382 S
5,291 0 0 5.291
8,355.123 0 0 8.355.123
4,746,475 0 0 4.850912
1-
9.763.542 *
,144.987 $
15.385.551 S _M79.P99 (CONTINUED)
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HOUSING AUTHORITY OF THE CITY OF LAFAYETTE ENTERPRISE FUNDS Balance Sheet September 30,2009 Statement A TOTAL PRIIWARY
OTHER LiABILITIES Cun'ent Liabilities Accounts payable Interfund payable Fee payable Due to primary govemment Deferred revenue Interest payable Cunent portion of compensated absences Cunent portion of long term debt Cunent Uabilities Payable From Cun'ent Restricted Assets Deposits due others Totel Current Liabilities Noncunent Liabilities Compensated absences pa^ble Note payable to primary govemment Deferred Developer fee payable to primary govemment Long term debt Total Noncunent Liabilities Totel Liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for HAP Unrestricted NET ASSETS TOTAL LIABIUTIES AND NET ASSETS
COMPONENT
mL
$ 373.691 $ 0 0 0 15.356 5,706 44,817 122,125 968,877 $ 798,621 0 0 0 40.032 5,584 0 6,375 $ 187,797 0 0 0 0 0 0 1,348,943 $ 986.418 0 0 15.356 45.738 50.401 122.125 0 0 268.110 434,807 0 24.142 0 882.106
100.455
-6S2J5Q.
40.518 1-853.632
0 194.172
140.973 JLZQa.fi51
18.684 1-627.849
67.227 0
0 1.434.750 1.501.977
31.639 0 0 425.000 456.639 2.310.271 0 0 0 194.172
98.866 0 , 0 1.859.750 1.958 fl1B
0 428.818 147,324 0 576.142 2.203.991
2.184.127
4.868.570
6,363.356 0
4.601 956,975
5,291 0
1.238.059
7.599.415 9.78^.548$
2.205.535
3.167.111 5i477i?8^ S
(54.836)
(49.545) 144.627 $
6,373,248 956,975 3.38B.7S8 10.71g.981 15.38fifiS1 S.
3.871.475 0 ra97.466^ 2.874.0Q9 ^^(pRtm
(CONCLUDED)
THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT.
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HOUSING AUTHORITY OF THE CITY OF LAFAYETTE ENTERPRISE FUNDS Statement of Revenues, Expenses. and Changes In Net Assets For the Year Ended September 30,2009
Statement B
OTHER ENTERPRISE TOTAL PRIMARY GOVERNMENT 1,211,621 $ 1,029.807 13.985.079 16.226.597 COMPONENT
GENERAL OPERATING REVENUES Dwelling rentel Other Federal grants Total operating revenues OPERATING EXPENSES Adminisb'ation Tenant services Utilities Maintenance Protective services General eiqijenses Housing as^stance payments Depreciation and amortization Total operating expenses Operating income (Loss) Nonoperating revenues (expenses) Interest earnings Other management fees interest expense Total nonoperating revenues (expenses) NET INCOME (Loss) before conbibutions Capital contributions Change in net assets NET ASSETS, BEGINNING OF YEAR, AS ORIGINALLY STATED PRIOR PERIOD ADJUSTMENT NET ASSETS, BEGINNING OF YEAR, AS RESTATED NEF ASSETS. END OF YEAR $ $ 1,211,621 $ 830,234 2.201.531 4.243.386
SECTION 8 0 $ 18,573 11.7.'>1.67e 11.770.249
um :
243.895 1,858 0 245.753
0 $ 181.090 31.872 212.962
1,499,411 79,847 463.830 841,481 86,394 513,557 0 832.395 4.316.915
1,092,968 255,007 2,524 66,450 0 1,093,572 8.533.728 4.532
11.048.779 721.470
261,765 29 0 4.575 0 8,152 0 882 275.403
2,854,142 334.883 466.354 912,506 86,394 1,615,281 8,533,728 837.809 15.641.097
54,069 0 14.036 45.581 0 87,741 0
132.901
334.328 ^88-575^
lasm
11.303 0
(82.441)
585.500
26,055 0
62 0
37,420 0
0 (16,786)
(79.877)
^68.574^ (142,103) 196.127 54.024 13-305 734.775 0 734.775
-JL
J2.
(62,379) 0 (62.3791
(92.627) (55.207)
530,293 196.127 726.420
ilfiZSSl
(105,361) 0 (105.361)
7,369,472
2.583,775 (151.439^
37,314 (24.480)
9,990,561 0
2.979,370 0
175.819
7.545.391
7.599,415 $
2.432.336
3.187.111 %
12.834
(49.545)3;
9.990.561 1Q.71fifl81 a
2-978.370 2.874.009
THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTERGRAL PART OF THIS STATEMENT.
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HOUSING AUTHORITY OF THE CITY OF LAFAYETTE ENTERPRISE FUNDS Statement o f Cash Flows For the Year Ended September 30,2009
Statement C
TOTAL OTHER PRIMARY GOVERNMENT COMPONENT UNfT
GEHBRAL
CASH FLOWS FROM OPERATING ACTIVITIES Rental rscelpte Other rec^pts Federal Qrants Payments to vwdors Payments to smplo/ees Payments to private landlords Interest oayments Other payments $ 1,214,800 $ 814.339 2,026,414
SECTION 8
ENTERPRISE
0 $ 895,765 12.254,633
(1.703,989) (375.189)
0 $
190,318 31,872
1,214,800 $ 1,900,422 14,312.919
247,271
1,858 0
(100.218) (22.500) 0
(2.790.509) (1,100,626) 0 0 0
(56,522)
(161,572) 0 0
(8,653,403) 0 a.
iL_
(4,551,020) (1,643,367) (8.653.403) 0 0
(40,924) (17.198)
NET CASH PROVIDED (USED) BY OPEIUTING ACTIVITIES CASH FLOWS FROM CAPtTAL AND RELATED FINANCING ACTIVITIES Purchase cBjAiaH assets Principal paid on capital debt Interest paid on capitat debt Capital contributions NET CASH PROVIDED (USED) BY CAPrrAL AND RELATED FINANCING ACTIVITIES CASH FLOW FROM INVESTING ACTIVrTIES Interest and dividends Purdiase Investments NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 5.248 (194,583) (88.037) (131,269) 0 0 0 0 (6.173) 0 0 0 (200,756) (88.037) (131,269) (20.474) 0 0 0 158.418 2.417.817 4.096
.ZS5Q.331
J3.ssa.
196.127
199.127
i21LZ821
^6.173^
.^23.a3SX.
(M.474)
11,303 ^6.055)
26,055
62 JL.
37,420 J2Za.594X
(241.484)
.^
(239.174X
CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES Payment on advance from Primary Govemment 0 Payment on mortoag coste Q _ NET CASH FLOW FROM (USED) BY NONCAPrrAL FINANCING ACTIVrriES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS S. f54.096^t 2.176.333 t
(2,415) (4.3751
(6.79Q)
jzJasLi
zma22^%.
-41.Qg5
(CONTINUED)
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HOUSING AUTHORITY OFTHE CITY OF LAFAYETTE ENTERPRISE FUNDS Statement of Cash Flows For the Year Ended September 30,2009 TOTAL OTHER PRIIVIARY COMPONENT
Statement C
CASH AND CASH EQUIVALENTS BEGINNING
.W1.980 & 307.884
621.088 S 2.797.421
48.512 S 46.497
1.031.580 S 3.151.802
1S1.931 192.958
CASH AND CASH EQUIVALENTS - ENDING
Cash and cash equivalents Restricted deports TOTAL CASH AND CASH EQUIVALENTS RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (loss) Adjustments to reconcile operaHng income to net cash provided (used) by operating operating activities: Depreciation and amortization expense Change In assets and llat^tities: Receivables, net inventorfes Prepaid Items Due from olhet funds Due fiom component un it Accounts payables Due to other funds Due to component unit Deferred reranue Deposits due others Intwest payable Compensated absences NET CASH PROVIDED (USED) BY OPERATING ACTIVrriES S
207.429 100.455
2,756,903 40.S1fi
46,497 0 46.497
3,010.829 140.973 3.151.802
307.684
2.797.421
(73,529)
721,470
(62,441)
585,500
(88.575)
832.395 (212,419) 2.542 (26,834) (500,992) 0 144,020 0 (30,614) 5,344 205 0 18.300
4.532 (161,581) 517 (128.077) 0 627.457 930,662 442,379 0 0 374 0 (19.916^
882 9.228 0 1,295 0 0 (3,460) 58,612 0 0 0 0 0
837.809 (364,772) 3,059 (153,616) (500,992) 627,457 1.071,202 500.991 (30,614) 5.344 579 0 M.fiia)
132,901 3,376 0 0 0 0 0 0 0 (3,555) 24,142 0
158.418 S
2.417.917 ?
4,W6 f
_;?,m33i ?
68.289
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the year for; Interest (Net of $45,985 capitalized during 2007)
JSLSSL
(CONCLUDED)
THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT.
14
Tbe Housing Authority ofthe City of Lafayette Notes to the Basic Financial Statements September 30,2009 INDEX Page NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. REPORTING ENTITY B. FUNDS Proprietary Funds C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Froprielaiy Funds D. CASH AND CASH EQUIVALENTS E. INVESTMENTS , F. INVENTORY G. PREPAID HEMS a CAPITAL ASSETS I. DEFERRED REVEI^JUES J. COMPENSATED ABSENCES K. RESTRICTED NET ASSETS L. INTERFUND TRANSACTIONS M. USE OF ESTIMATES N. AMORTIZATION NOTE 2-CASH AND CASH EQUIVALENTS NOTE 3-INVESTMENTS NOTE 4-RECEIVABLES NOTE 5 - INTERFUND ASSETS/LIABBLmES (FFS LEVEL ONLY) NOTE 6-CAPITALASSETS NOTE 7 - RETIREMENT SYSTEM NOTE 8 - ACCOUNTS PAYABLE NOTE 9-LONG-TERMDEBT NOTE 10-COMMITMENTS AND CONTINGENCIES NOTE 11-RISK MANAGEMENT NOTE 12 - ECONOMIC DEPENDENCY NOTE 13-OTHER NONCURRENT ASSETS NOTE 14 - FEES PAYABLE NOTE X5 - DUE TO/FROM DISCRETELY PRESENTED COMPONENT UNIT NOTE 16-NOTES RECEIVABLE NOTE 17 - INSURANCE RECOVERIES NOTE 18 - DEFERRED DEVELOPER FEE RECEIVABLE NOTE 19-SUBSEQUENT EVENTS NOTE 20 - PRIOR PERIOD ADJUSTMENT NOTE 2! - CHANGE IN FINANCIAL STATEMENT PRESENTATION 16 16 17 18 18 18 18 18 19 19 19 19 19 20 20 20 20 20 20 21 22 22 23 23 24 25 25 25 26 26 26 26 26 26 26 27 27
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The Housing Authority ofthe City of Lafayette Notes to the Basic Finandal Statements September 30,2009 NOTE 1 - SUMMARV OF SIGNIFICANT ACCOUNTING POUCDES The accompanying financial statements of The Housing Authority of the City of Lafeyette (the Housing Authority) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Govenmiental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing govemmental accoimting and fmancial reporting principles. A. REPORTING ENTITY Housing Authorities arc chartered as public corporations under the laws (LSA-R.S. 40:391) ofthe state of Louisiana for the purpose of providing safe and sanitary dwelling accommodations. This creation was contingent upon the local goveming body of the city or parish declaring a need for the Housing Authority tofimctionin such city or parish. The Housing Authority is govemed by a seven-member board of commissioners. Two ofthe members are appointed by the City/Parish President, All members of the board serve staggered terms. The Housing Authority has the following units: Low Rent Section 8 Housing Choice Vouchers Disaster Housing Assistance Vouchers LA005 LA005 LA005 572 1,680 304
The accompanyingfinancialstatements ofthe Housing Authority have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to govemmental units. The Govemmental Accounting Standards Board (GASB) is the accepted standard-setting body for establiîng govemmental accounting andfinancialrôrting principles. GASB Statement No. 14establishes criteria for determining the governmental reporting entity and component units that should be included within the reportmg entity. Under provisions of this Statement, the Housing Authority is considered a primary govemment, since it is a special purpose govemmenttiiathas a separately elected governing body, is legally separate, and is fiscally independent of other state or local govemments. As used in GASB Statement No. 14,fiscallyindependent means that the Housing Authority may, without the approval or consent of another govemmental entity, determine or modify its own budget, control collection and disbursements offiinds,maintain responsibility forfimdingdeficits and operating deficiencies, and issue bonded debt. Govemmental Accounting Standards Board (GASB) Codification Section 2100 establishes criteria for determining which, if any, con^nent units should be considered part ofthe Housing Autiiority forfinancialr^xnting purposes. The basic critaion for including a potential component unit within the reporting entity isfinancialaccountability.
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Tbe Housing AutboHty of the City of Lafayette Notes to the Basic Financial Statements September 30,2009 Ttie GASB has set forth criteria to be considered in determiningfinancialaccountability, which includes: 1. Appointing a voting majority of an organization's goveming body, and: The ability ofthe govemment to inôsc its will on that organization and/or The potential for the organization to provide specific financial benefits to or impose specific financial burdens on the govemment. 2. Organizations for which the govemment does not appoint a voting majority but arefiscallydependent on the go^mment. 3. Organizations for which the reporting entityfinancialstatements would be misleading if data ofthe organization is not included because ofthe nature or significance of the relationship. Based ontiieprevious criteria, the Housmg Autiiority has detemiinedtiiatthe following component unit should be considered as part ofthe Housing Authority reporting entity. St. Antoine CSardens Limited Parmership ("St. Antoine**) is a legally separate entity. The Managing General Partner of the partnership is Lafeyette Low Income Housing Management (CJoiporation, Inc., a not-for-profit corporation. The Board of Directors of Lafayette Low Income Housing Management Ctorporation, Inc. consists entirely oftiieBoard of Commissioners of the Housing Authority, which provides tiie Housing Authority with a voting majority of tiie goveming bodies of St. Antoine. In addition,tiiereis the potential for St. Antoine to inôsefinancialburden on the Housing Autiiority. Based on the above, St. Antoine and Lafayette Low Income Housing Management Ctoporation, inc. are considered to be component units. The goveming body offlieHousing Authority is considered to have con^lete control over Lafeyette Low Income Housing Management Corporation, hic, but not complete control over St. Antoine. As a result, Lafayette Low Income Housing Managemît Corporation, hic. is included in the Housing Authority's financial statements as a blended entity, and St. Antoine is included m the Housing Authority's financial statements tiirough discrete presentation. Thefinancialposition, change in net assets, and cashflowsof St. Antoine are presented as of and fw the year ended December 31,2008. Separate fmancial statements of St. Antoine were issued forfiscalyear ended December 31,2008, and can be obtainedfixmithe discretely {scsented componît unit Lafayette Low Income Housing Management Cknporation (LLIHMQ, a blended component tmit ofthe Housing Authority, is the general partner in St. Antoine Gardens Limited Partnership (Partnership). In November 2005 the Partnership entered mto an agreement with an investor to invest in a project known as St. Antoine Gardens, 30 femily low income housmg tax credit units located in Lafayette. The investor is a limited partner and has a 99.99% partnership interest TheLLIHMCisageneralpartnerwitha.01%partncrshipinterest The sponsor and guarantor is the Housing Authority. A development fee agreement provides for $650,000 in development feestobe paidtothe Housing Authority, in which $275,312 has been received as of September 30,2009. In the event that the actual tax credits arc less than the projected tax credits, the Limited Partoer contributions will be reduced by .901 times the amount of the reduction, hi the event the remaining unpaid portion of the Limited Partocrs capital contribution obligation is insufficient to offset all amoimts that are due and owing then the General Partner shall, upon demand, paytiieLimited Partner any remaining amounttiiatis due and owing to the Limited Partner. This could reduce or defer the developer fee agreed to by both parties. B. FUNDS TTieaccountsoftheHousingAuthorityare organizedand operated on the basisoffimds. Afimdisan independentfiscaland accounting entity with a self-balancing set of accounts. Fund accounting segregates funds accordingtotheir intended purpose and is used to aid management in demonstrating compliance witii finance-related a. b.
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The Housing Authority ofthe City of Lafayette Notes fo the Basic Financial Statements September 3D, 2009 legal and contractual provisions. The minimum number of funds is mamtained consistent with legal and managerial requirements. Proprietary Fnnds Proprietary funds account for activities snnilartotiiosefound in the private sector, where the determmation of net mcome is necessary or useful to soxmd financial administration. Proprietaiyfiindsdiffer fixim govemmental funds in thattiieirfbcus is on income measurement, which,togetherwitii the maintenance of equity, is an important financial indicator. TTie proprietaiy fund includesfliefollowing: The general fund accountsfi}rthe transactions offlielow rent and coital fund programs. The Section 8 fimd accounts for the activity ofthe Section 8 Housmg Choice Vouchers, the Disaster Voucher Program, and the Disaster Housmg Assistance Program. The other enterprise fund accounts for the activity ofthe Lafeyette Low Income Housing Management Corporation. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus refers to what is bemg measured; basis of accounting refers to \ên revenues and expenditures are recognized in the account and reported in the financial statements. Basis of accounting relates to the timing ofthe measurement made, regardless of the measurementfocusapplied. Proprietary Fnnds Proprietaiy funds are accounted fbr on the flow of economic resources measurementfocusand use flie accmal basis of accoimting. Under this method, revenues are recorded when eamed and expense are recorded atflietime the liabilities are incurred. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included onfliebalance sheet The Housing Authority has elected, pursuant to GASB Statement No. 20, to apply all GASB pronouncements and only FASB pronouncements issued before November 30,1989. Proprietary fimds distinguish operating revenues and expensesfiomnonoperating items. The principal operating revenues ofthe Housuig Authority are rental income, maintenance charges to the residents and federal operatmg grants. Operating expenses include the costs of providing these services. All revenues and expenses not meetingtillsdefinition are reported as nonoperating revenues and expenses. D. CASH AND CASH EQUIVALENTS Cash includes amounts in demand deposits and mterest-bearing demand deposits. Cash equivalents uiclude amounts m time deposits and cash withfiscalagent Under state law, the Housing Authority may deposit fiinds in demand deposits, intern-bearing demand deposits, mon^ market accounts, or time dqiostts wifli state banks organized under Louisiana law and national bmiks having fliek principal offices in Louisiana. E. INVESTMENTS Investments are lJmitedbyR.S. 33:2955 andflieHousingAuthorit/shivestmentpolicy. Iftiie original maturities of investmente exceed 90 days, they are classified as investm^ts; however, if the original maturities are 90 days or less, they are classified as cash equivalents. The investments are reflected at feir value except for the following which are required/permitted as per GASB Statement No. 31: 1. Investments in nonoarticiDatim interest-earning contrEu^ts, such as nonnegotiable certificate of deposit witii redemptiontermsthat do not consider maiketrates,are reported using a cost-based measure. 2. The Housing Authority reports at amortized cost money market investments rndparticipatim interest-eaming mvestment contracts that iiave a remaining maturity at time of purchase of one year or less.
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The Housing Authority ofthe Oty of Lafayette Notes to the Basic Financial Statements September 30,2009 Definitions: Interest-eaming investment contract include time deposits with fmancial mstitutions (such as certificates of deposit), repurchase agreements, and guaranteed mvestment contacts. Money maricet mvestments are short-term, hi^ly liquid debt instrumentsfliatmclude U. S. Treasuiy obligations. F. INVENTORY All purchased inventory items are valued at cost usingfirst-in,first-out method. Acquisition of materials and supplies are accounted for onflieconsumption mefliod, that is, the expenses are charged wh^ the items are consumed. G. PRÂJDD ITEMS Certain payments to vendors reflect costs ^licable to future accounting periods and are recorded as prepaid items. Prepaid items mainly consist of prepaid insurance. H. CAPITAL ASSETS Property, plant and equipment in the proprietaiy funds oftiiegovemment are recorded at cost Property, plant and equq)ment donated to these proprietaiy fund type operations are recorded attiieirestimated fah value atfliedate of donation. Major outlays for coital assets and improvement are capitalized in proprietaiy funds as projecte are constructed; Interest incurred during the constmction phase of proprietaiy fund coital assets isreflectedm the capitalized value of tiie asset constructed, net of mterest eamed on the invested proceeds over tiie same period. The capital assets are capitalized using a threshold of $5,000 or more. The cost of normal maintenance and repairstiiatdo not addtothe value ofthe asset or materially extend assets' lives are not cîtaiized in the proprietary fimds. Property, plant and equipment are depreciated inflieproprietaiy and similar trust funds ofthe govemment using flie straight line method overfliefollowingestunated useful lives: Assete Buildings Site and building improvemente Office equipment (other than computers) Computers Automobiles and trucks Years 40 years 15 years 5-7 years 3 years 5 years
L DEFERRED REVENUES The Housing Authority reports deferredrevenueson ite combuied balance sheet Deferred revenues arise when resources are received by the Housing Authority before it has a legal claimtothem, as when grant monies are received priortothe mcurrence of qualifying expenditures. In subsequent periods, when the Housmg Autiiority has a legal cfeim to the resources, the liability for deferred revenue isremovedfromfliebalance sheet and the revenue is recognized. J. COMPENSATED ABSENCES Tlie Housmg Autiiority follows Louisiana Civil Service regulations for accumulated annual and sick leave. Employees may accumulate up to three hundred hours of annual leave which may be received upon termination or rethement Sick leave hours accumulate, buttiieemployee is not paidforthem if not used by hisêrretirementorteiminationdate.
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The Housing Authority of the City of Lafayette Notes to the Basic Financial Statements September 30,2009 K. RESTRICTED NET ASSETS Net assete are reported as restricted when constrainte placed on nc4 asset use are either: Extemally imposed by creditors (such as debt covenante), grantors, contributors, or laws orregulationsof other ^vemments or miposed 1^ law through constitutional provisions or enabling legislation. It is the Housing Authority's policytofirstuserestrictedassete for purposes for which restricted or unrestricted assete may be used L. INTERFUND TRANSACTIONS Quasi-external transactions are accounted for as revenues, expenditures, or expenses. Transactions tiiat constitutereimbursementetoa fond for expenditores initially made from ittiiatare properly applicabletoanother fimd arerecordedas expenses in thereimbursmgfiind and as reductions of expenses in thefondthat isrefanbursed.All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers. All other mteriund transfers are reported as operating transfers. M.USE OF ESTIMATES The preparation of fmancial statemente in conformity wifli accounting principles genially accepted inflieUnited States of America requires management to make estimates and assumptions tiiat affect thereportedamounte of assete and liabilities and disclosure of contingent assete and liabilities atfliedate of tiie financial statement andfliereported amounte ofrevenueand expenses during the reporting period. Actual resulte could differfrttmtiioseestimates. N. AMORTIZATION St. Antome Gardens, L.P., a component unit ofthe Housing Autiiority amortizes ite tax o^dit coste over thetenyear tax credit period using the straig^-lineraetiiodbeginning in the fust year m which tax credite are taken. Forflieyear ended December 31,2008, accumulated amortization totaled $3,558. NOTE 2 - CASH AND CASH EQUIVALENTS The Housing Autiiority*s deposite are recorded at cost. The carrying amount of deposite totaled $4,475,424, in which $1,323,622 was held in certificates of deposit that is classified as investmente and $140,973 was deposite due ofliers classified as restricted deposite. Interest Rate Rtek: The Housing Authority's policy does not address interestraterisk. Credit Rate Risk: The Housing Aufliority's policy does not address credit rate risk. Chistodial CretMt Risk-Deposite: In the case of deposite, this is the risk tiiat in the event of a bankfeilure,tiie government's deposite may not be retumed to it As of September 30, 2009 the Housmg Authority had a bank balance of $4,767,687, in which $3,038,002 was exposed to custodial credit risk because it was uninsured and collateralized with securities held by the pledgingfinancialinstitution's trust department or agent, but not m the Housing Autiiority's name. Even though the pledge securities are considered uncoUateralized under the provisions of GASB Statement 3, Louisiana Revised Statute 39:1229 imposes a statutoiy requirement on tiie custodial bank to advertise and sell tiie pledged securities witiiin 10 days of being notified bytiieHousmg Auflioritytfiaftiiefiscal agent hasfelledto pay deposited funds upon request The canymg amount of the deposite for St Antoine Gardens, L.P., the Housing Authority's discretely present component unit was $192,956 classified as cash and cash equhralente and $18,718 classified as restricted deposits. These balances werefollyinsured by FDIC insurance. NOTE 3 - INVESTMENTS The Housing Autiiority hasreportedtiiefa-mvestmente wifli a maturity attimeof purchase of one year or less at amortized cost. Investmente with matority attimeof purchase of greater than one year are presented atfeirvalue at September 30,2009. Fair value was detemiined by obtaining "quoted" year-end maricet prices. As of September 30,2009. the Housing Autiiority investmente were $1,338,758, which included $1,323,622
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The Housing Anthority of the Dty of Lafayette Notes to the Basic Financial Statements September 30,2009 in Certificates of Deposit. The remaining investmente were in U.S. Treasuries managed byafinancialinstitution. The securities managed by the fmancial institutim had a fair market ^ûe of $15,136. Tvpe of Mvestment Mortgage backed securities Fair Value ^15.136 hivestment Maturity Less than 1 year 1-Svears $15.136 |Q
Interest Rate Risk: The Housing Authority's policy does not address interestraterisk. Credit Risk: State law limits investmente to securities issued, guaranteed, or backed by the U.S. Treasury, the U.S. Government, or one of ite agencies. Newregulationsalso include investmente in investment grade commercial paper of domestic U.S. corporations. The Housing Authority's investmente at September 30, 2009 were limited to investmente in mortgage backed securities by a fmancial institution wifli a Moodyratingof AAA and a Standard and Poorratingof AAA. The Housing Authority's investment policy does not address credit risk. Concentration of Credit Risk: The investmente are 1 % invested in mortgage backed securities and 99% invested in certificates of deposit Custodial Credit Risk-Investmente: For an investment, this is theriskthat, in the event ofthe failure ofthe coimter party, the Housing Authority will not be abletorecoverthe value of ite investmente or collateral securities that are in the possession of an outeide party. The Housing Authority does maintain investment accounte at a financial institution. As of September 30,2009, the Housing Authority had $15,136 in U.S. government bonds which are held by the financial instituticn but not in the Housing Authority's name. The bonds concentration of credit are as follows. Issuer Federal Farm Cidit Banks Amount $15,136 % of Total hivestmente 100%
NOTE 4-RECEIVABLES The receivables at September 30,2009, are $588,509 net of allowance for doubtfol accounte of $30,242.
Otiier Enterprise $ 2.839 2,839
Class of Receivable Intergovernmental; HUD Local Tenants rent Security & Utility Deposits Otiier Total
General
Sections
$ 110,941 163,178 30,838 S 304.957
Total $ 343,678 3,076 19,173 163,178 59,404 $ 588,509
232,737 3,076 19,173 25,727 280.713
St Antoine Gardens, L. P., a component unit ofthe Housing Authority, had accounte receivables consisting of tenant rentstotaling$15,414. These receivables are recorded at gross, with the component unit using the direct write off method to provide for uncollectible accounte. Use oftiiismethod does notresultin a material differencefitjmtiie valuation method required by accounting principles generally accepted in the United States of America.
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The Housing Authority ofthe City of Lafayette Notes to the Basic Financial Statements September 30,2009
NOTE 5 - INTERFUND ASSETS/LIABILnTES (FFS LEVEL ONLY) Due from/to others: Receivable Fund General General Other Enterprise Total Amount 708,621 187,797 90,000 S 986,418 $ Pavable Fund Section S Otiier Enterprise Sections Amount 708,621 187,797 90,000 $ 986,418
Tlie purpose of intraiund balances is to cover operating expenses until grant money is received. NOTE 6 - CAPITAL ASSETS The changes and balances in capital assete are as follows: Primary Government: Balance Beginning Non-depreciable capital assets: Land Consmiction in Progress Total non-depreciable Depreciable capital assets: Buildings & Improvements Furniture and Equipment Total depreciable Total cost of capital assets Less accumulated depreciation: Buildings & In^rovements Fumiture and equipment Total accumulated depreciation Cllapital Assets, net $ 1,389,417 342,477 1,731,894 18,571,536 252,129 18,823,665 20.555,559 11,381,093 182,291 11.563.384 $ 8.992,175 $ 193,408 193,408 ^ 103.641 103,641 297,049 779,771 58.037 837,808 (540,759) $ Additions $ 94380 94380 _ 5,350 5,350 99,730
Deletions
Balance Endii^ $ 1.389,417 441,505 1.830.922 18,571,536 350,420 18,921,956 20,752,878 12,160,864 236,891 12,397,755 $ 8.355,123
3,437 3,437 96,293
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Tbe Housing Authority of the City of Lafiiyette Notes to the Basic Financial Statements September 30,2009
Component Unit: Balance Beginning Non-depreciable capital assete: I.and Depreciable acpitsl assets: Buildings & Improvements Fumiture and Equi^nnent Total cost of capital assete Less accumulated d^reciation: Buildings & Improvonents Furniture and equipment Total accumulated deprîation Capita] assete. net $ 98,500 4.756,183 67,061 4^21,744 $ 20,474 20.474 Additions Deletions S $ Balance Ending 98,500 4,776,657 67,061 4^2,218
61,736 3353 65,089 S 4,856.655
123,948 6,706 130,654 $ (110,180)
185,684 10,059 195,743 $ 4.746,475
NOTE 7 - RETIREMENT SYSTEM The Housing Autiiority provides pension benefitetfu-oughPrinciple Life Insurance Company for all of itefoil-timeemployees through a defined contribution phin. All reÎar and foil-time employees are eligibletoparticipate inflieplan ontiiefirst day ofthe month after completing one year of continuous and uninterrupted employment Under a defined contribution plan, beneftte depend solely on amounte contributed to tiie plan plus hivestinent eamings. The employer is required to make contributions equal to 3.0 percent of each participant's basic compensation. The contribution rates are established by the Housing Authority board. The employee may make montiily voluntaiy contributions of his or her basic compensation. The Housing Authority's contribution for each employee and income allocated to the employee's account are folly vested after five years of continuous service. The Housing Autiiority's contributions and interestforfeitedby employees vô leave employment before five years of service are used to offeetfoturecontributions ofthe Ifousing Authority. The Housing Authority's total payroll for year ended September 30,2009, was $1,511,749. The Housing Autiiority's contiibutions were calculated using tiie base sahuy amount of $1,364,779. The Housing Autiiority made tiie employee contributions of $10,679 for the year ended September 30, 2009. The Housing Authority's required employer contributions were $33,444. NOTE 8 - ACCOUNTS PAYABLE Tbe payables at September 30,2009, are as follows:
General Fund $ 175,994 30,835 22,123 82,059 ^680 S 373,691 Sections 19,561 454,229 477,750 17337 968,877 $ $ Other j&iterprise $ 210 6,165 $ 6,375 Total 195,765 485,064 499,873 82,059 86,182 $ 1,348,943 $
Vendms Litigation Claim HUD Accmed PILOT Wages payable Total
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The Hoasing Authority ofthe City of Lafoyette Notes to die Basic Financial Statements September 30,2009 NOTE 9 - LONG-TERM DEBT At September 30,2009, employees ofthe Housmg Aufliority have accumulated and vested $149,267 of employee leave benefite, which was computed in accordance witii GASB Codification Section C60. The followmg is a summary oftiielong-term obligation transactions and balances for the year ended September 30, 2009:
Primary Government Capital Lease Compensated Payable Absences $ 1,644,912 S 150,883 37,917 88,037 39,533 149;!67 1,556.875 $ 122.125 $ 50.401 Component Unit Comtruction Loan Payable $ 2,235.000 1360.000 875,000 $ 875,000
Balance, beginning Additions Deductions Balance, ending Due in one year
Note Pa^ble $ 435,924 435,924 7,106
The capital lease payable is paid by the ^neral fund. Compensated absences are liquidated by both the ^neral fund and Section 8. The note payable is paid by the component unit, which is duetotiieprimary govemment St Antoine Gardens, L. P., component unit oftiieHousing Authority, has a construction loan payabk to J. P. Morûi Chase, N. P. As of December 31,2008, the amount owed on this loan was $875,000. Tbis amount was due on June 3,2009The Housing Authority entered into a water and energy service agreement with Water and Energy Savmgs Corporation on July 25,2007. The Water and Energy Savings Corporation also monitors the savmgs. In order to meet ^ e requiremente of tiie agreement and to complete the necessary modernizations to tiie Public Housing Authority's developmente, the Housing Autiiority signed a lease-purchase agreement on December 27,2007 for $1,644,912. This amount was also added to buildings and improvemente for tiie fiscal year ended Sept^nber 30, 2008. The current year depreciation and accumulated depreciation fortiieimprovemente are $137,076 and $274,152, respectivelyforthefiscalyear ended September 30,2009. The capital lease payable at September 30,2009, is thefollowmgissue.
Original Amount $1,644,912 Interest Rate 4.55% Final Pavment Due 12/31/19 Interest to Maturity $399,842 Principal Outetanding $1,556,875
Lease Payable
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The Housing Audiority of the City of Lafayette Notes to the Basic Financial Statements September 30,2009 The capital lease is due as follows:
Capital Lease Payable Principal Paymoste $ 122,125 127,778 133,691 139,879 146353 839,860 47,189 $ 1,556,875 Interest P^nmente $ 68,774 63,121 57,208 51,020 44,546 114,636 537 $ 399,842
Year Ending September 30, 2010 2011

2012
2013 2014 2015-2019 2020
Total Paymente $ 190,899 190,899 190,899 190,899 190,899 954,496 47,726 S 1,956.717
The Housing Authority also borrowed $425,000firomLafeyette Public Trust Financmg Authority on August 10, 2006. The promissory note has a stated annual interestrateof three percent The note is due on demand, but if no demand all outetanding principal and accrued and unpaid interest shall be due and payable on the earlier of August 10,2011, or closing ofthe tax credit transaction contemplated pursuanttothe proposed Louisiana Housmg Pmance Agency Low Income Housing Tax Credit Program. The balance of this loan as of September 30,2009 is $425,000 plus accrued interest payable of $40,032, The promissory note is collateralized by land owned by tfie Housing Authority, and is repented in the Section 8 fund. NOTE 10 - COMMTTMENTS AND CONTINGENCIES Litigation At September 30,2009, the Housing Autiiority is involved m various litigation. However, it was noted that tiiere were two lawsuite totalmg $485,064, which has been designated as probable. A liability of $485,064 was recorded. SeeNote 8formore information. Constniction Froiecte There are certain major construction projecte m progress at September 30,2009, which mclude unit renovations, ADA compliance, and woric on water and gas lines. Tbese include modernizing rental unite at practically allof the projecte. As ^proved by HUD,tfieseprojecte are bemg funded by HUD. Funds are requested periodicalty astiiecost is incurred. The total open contracte atfiscalyear end Septwnber 30,2009 were $282,790, in which $212,463remainedoutstanding at fiscal year end. Grant pisallowanccs The Housing Authority participates in a number of state and fêrally assisted grant programs. The pn^rams are subjecttocompliance audits und^ the single audit ^>proach. Such audite could lead to requeste for reimbursement by the grantor agency for expenditures disallowed under teims ofthe grante. Housing Autiiority management believestiiattiieamount of disallowances, if any, which may arise fiom fiiture audite will not be m^rial. NOTE 11 - RISK MANAGEMENT Tlie Housmg Autiiority is exposedtovarious risks of lossrelatedtotorte;tiiefl of, damagetoand destiuction of assete; errors and omissions; and natural disastersforwhichtiieHousing Autiiority carries commercial insurance. NOTE 12 - ECONOMIC DEPENDENCY Statement of Financial Accounting Standaid (SFAS) No. 14 requires disclosure m financial statemente of a situation where one entity provides more than 10% ofthe audhsd entitys revenues. The Department of Housing and Urban Development provided $14,149,334 to tiie Housing Autiiority, vrfiichrepresente^jproximately 86% oftiieHousing Autiiority'stotalrevenueforthe year.
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The Housing Anthority of flie City of Lafayette Notes to the Basic Financial Statements September 30,2009 NOTE 13 - OTHER NONCURRENT ASSETS St Antome Gardens, L. P., a discretely presented component unit ofthe Housing Authority, had the followmg other noncurrent assete as of December 31,2008: Tax Credit Coste, Less Accumulated Amortization Syndication Coste Permanent Loan Fees Total S 18,911 49,500 36,026 $ 104,437
NOTE 14 - FEES PAYABLE St Antoine Gardens, L. P., a discretely presented component unit oftiieHousmg Authority, hadtiiefollowmg fees payable as of December 31,2008: Developmrat Coste Payable Developer Fee Payable DuetoPrimaiy Government Asset Managem^t Fee Payable Partn^îp Managment Fee ?ayah\o Total $ 23,960 227,364 4,578 12,208 268,110
Thetotalamount ofthe developer fee payable due to prunaiy govenunent is $374,688. Of this amount $227,364 represente the current portion and the remaining amount of $147,324 is recorded as deferred developer fee pa^ble duetothe primaiy govemment NOTE 15 - DUE TO/FROM DISCRETELY PRESENTED COMPONENT UNIT The difference in tiie amounte due to and fivm the discretely presented component unit is due to tiie fact tiiat the component unit is presented as of December 31, 2008 and the Housing Autiliority year end is September 30, 2009. The receivableâyable is a result of development cost paid by the Housuig Authority which has not yet been reimbursed. NOTE 16 - NOTES RECEIVABLE The Housing Autiiority's Section 8fimdhas a notes receivable recorded of $435,924, vdiich is considered to be a cash-flow loan, due fiom St Antoine Gardens, L. P., a discretety presented component unit This liability is stillreflectedin the discretety presented component unit However,tiieHousing Autiiority has recorded an allowance for doubtfol accounte of $435,924 for tiie note receivable. NOTE 17 - INSURANCE RECOVERIES hitiiefiscalyear ended September 30,2009,ttieHousing Authority received $38360 for insurancerecoveries,which is recorded in the General Fund. These recoveries are classified as otiier income in the statement of revenues, expenses and changes in net assete. NOTE 18 - DEFERRED DEVELOPER FEE RECEIVABLE Tlie Housing Autiiority's Section 8 fimd has a deferred developer fee receivable recorded of $147,324 duefix>mSt Antome Gardens, L. P., a discretely presented component unit This liability is still recorded on the discretety presented component unit; however, the Housing Authority has recorded an allowance for doubtfol accounte of $147324 for tiie deferred developerfeereceivable. NOTE 19 - SUBSEQUENT EVENTS In November 2009,flieLafeyette Public Trust Fmance Aufliority had releasedtiielien ontiieproperty held for the loan of $425,000,reflectedm the Section 8 fund, and changed the note to a cash-flow loan. This was changedtoallowtiieHousing Autiioritytosell 4.999 acresfor$175,000 on November 17,2009tohelp payfortiieupfiont coste in applymg for tax credhs andtobegintiieplanning for construction ofthe Villa Gardens Subdivision.
26
The Housing Authority of the City of Lafayette Notes to the Basic Financial Statemente September 30,2009 Additionally, m October 2009, the Housmg Autiiority created a blended component unit named the Villa Gardens Housing Corporation. Tbis blended component unit became the gêral partus ofVilla Gardens Limited Partnership in November 2009 havmg .01 % partnership interest and with the limited partneis havmg 99.99% partnership interest NOTE 20 - PRIOR PERIOD ADJUSTMENT Fiscal year ended September 30,2008 wastiiefirst yearfortiie Department of Housing and Urban Development's project level reporting. Duetothis implementation,tiieGeneral fond allocates costetothe Section 8 and Other Enterprise fimds. However, these coste were elimmated in error. This error caused the General fund's net assetetobe understated by $175,919, Section 8 fund's net assetetobe overstated by $ 151,439 and Other Enterprisefond'snet assete to be overstated by $24,480. Altiioug^tiieindividual fimds were reported incouectly, the net effect ontiiegovenunent as a whole was zero. NOTE 21 - CHANGE IN FINANCIAL STATEMENT PRESENTATION The auditedfinancialstatemente for fiscal year ended September 30,2008 was thefirstyeartopresent the discretely presented component unit, which also was itefirstyeartobefoltyoperational. At thetimethe Housing Autiiority's report was issued, the audited financial statemente for the discretely presented component unit as offiscalyear ended December 31,2008 were available, and tiierefore included. However, the December 31,2(H)9fiscalyear ended audited financial statemîteforfliediscretety presented conqionent unit were notreleasedm timetobe mcluded in the Housmg Authority's September 30,2009 year end audit. Therefore, the Housing Autiiority has changed ite method of presentation conceming the discretely presented component unit to reporttiieDecember year end oftiiediscretety presented component that precedes the Housmg Authority's September year end in ordertostay consistent forfotoreyears.
27
The Housing Authority ofthe City of Lafeyette
This page intentionally left blank.
28
The Houdng Autiiority ofthe City of Lafayette Compensation Paid Board Members The members of the Board of Commissioners save without compensation. The membera of the Board of Commissioners are as follows: Erwin '"Buddy" Webb, Chairman Joseph Dennis, Vicc-Chainnan John Freeman Gertrude Batiste Donald Fuselia* Gregoiy Day Leon Simmons
29
HOUSING AUTHORITY OF THE CITY OF LAFAYET FINANCIAL DATA SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30,2009 Submission Audited/A-133 Type: LA005
10.558 Child ProiectTotal ^ 111 Cash - Unrostrlcted 113 Cash - Other Restricted 114 C a ^ - Tenant Security Deposits 115 Cash - Restricted for P a r e n t of Ciorent Liab 100 Total Cash 'ifK !^^^ Choice 'Vouchers T ' l Food Care ? " ! . Business Activities Component Units $192,956 $18,718 $40,518 $1,634,837
$320,326 $100,455 $420,781
$637,344 $956,975
Program $4,236
$42,261
$4,236
$42,261
$211,674
121 Accounts Receivable - PHA Projects 122 Accounts Receivable - HUD Other Rojocts 124 Accounts Receivable Other Government 125 Accounts Recdvi^le - Mlscdianeous 126 Accounts ReceivEdila - Tenants 126.1 Allowance for Doubtful Accounte -Tenants 126.2 Allowance fbr Doubtful Accounts - Other 127 f4otes, Loans, & Mortgages Receivable - Current 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud 120 Total Receivables, Net of Allowances for Doubtful Accounts 131 Investments-Unrestifctsd 132 Investments - Restricted 142 Prepaid Expenses and Other Assets 143 Inventories 143.1 Allowance for Obsolete Inventories 144 Inter Program Due From 150 Tota! Cunent Assete $160,263 $64,927 $0 $1,751,063 $2,810,853 $2,934,084 $4,236 $92/100 $137,100 $227,088 $13,385 $280,713 $637,379 $0 $2,839 $15,414
$223,959 $3,076 $34,505 $33,407 -$14,234 $0
$637,579
$18,847
$15,414
$0
-$16,008
$0
$133,106
$648,263
30
14.DVP State/Local
gy^Qg Disaster
. . ,c
Subtotal Program $1,160,785 $2,359,707 $856,975 $119,173 $40,518 $3,476,373
BJM
Total
$1,799
$2,359,707 $956,975 $119,173 $40,518 $3,476,373
$1,799
SO
$1,160,786
$0
$0
$107,660
$3,211 $163,178
$334,850 $3,076 $869,523 $33/*07 -$14,234
$334,850 $3,076 $869,523 $33/407 -$14,234 -$16,006
$0
$0
$0
-$16,00B
$0
$107,680
$3,211
$183,178
$1,210,614
$0
$1,210,614
$557,389
$119,675
$1,338,758
$293,323 $64,927 $0 $1,919,736 $3,909,487 $10,293,482
$1,338,758 $293,323 $64,927 $0 $3,909,487 $10,293/482 (continued)
$81,350 $83,149
$65,338 $173,018 $1,721,385
$2,202,589
$0
31
HOUSING AUTHORITY OF THE CITY OF LAFAYETTE FINANCIAL DATA SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30,2009 Submission Audlted/A-133 Type: LA005
Project Total 161 Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Fumiture, Equipment & MacHnery - Admin 166 Leasehold Improvemwite 166 Accumulated Depreciation 167 Construction in Progress $964,417 $8,671,115 $58,329 $223,689 $9,600,421 10.658 Child and Adult 14.871 Housing Choice Vouchers Care Food Program $425,000 Business Activities Component Unite $98,500 $4,573,510 $67,061
$62,226 -$57,628
$6,173 $203,147 -$882 -$195,743
-$12,339,246 $441,505
160 Total Capital Assets. Net of Accumulated Depreciation $7,920,231 171 Notes, Loans and Mortgages Receivable - NonCurrent 172 Notes, Loans, & Mortgages Receivable - Non Current Past Due 173 Grants Receivable-NtMi Current174 Other Assete 176 Investmente in Jdnt Ventures 180 Total Non.Current Assete $7,920,231
$426,601
$0
$5,291
$4,746,475
$104,437
$429,601 $3,363,665
$0
$5,291
$4,850,912
190 Total Assete
$10,731,084
$4,236
$142,391
$6,078,000
32
Stete/Locai
14.DVP Disaster Voucher Program
97.109 Disaster Housir^ Assistance Grant
14.IKE DHAP-IKE
Subtotal $1,487,917 $13,544,625 $125,390 $292,091 $9,803,568 -$12,593,498 $441,505
EUM
Total $1,487,917 $13,544,625 $125,390 $292,091 $6,803,568 -$12,593,498 $441,505
$0
$0
$0
$0
$13,101,598
$0
$13,101,598
$104,437
$104,437
$0
$0
$173,018
$0
$1,721,385
$0
$2,202,589
$13,206,035
$23^*99,517
$0
$0
$13,206,035
$23,499,517 (continued)
$83,149
33
HOUSING AUTHORITY OF THE CITY OF LAFAYETTE FINANCIAL DATA SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30,2009 Submission Audited/A-133 Type:
LA005
Project Total 14.871 Housing Chcdce Vouchers 10.658 Child and Adult Care Food Program Business Ac&vities Componsnt Unite
311 Bank Overdraft 312 Accounte Payable <= 90 Days 321 Accrued Wage/Payroll Taxes Payable 322 Accrued Compensated Absences - Current Portion 324 Accrued Contingency Liability 325 Accrued Interest Payable 331 Accounte Payable - HUD PHA Programs 332 Account PayaMe - PHA Projecte 333 Accounte Payable - Other Govemmwt 341 Tenant Security DôsHs 342 Deferred Revenues 343 Current PorUonofLor^-temi Debt-Capital Projects/Mortgage Revenue Bonds 346 Other Current Uabililiee 346 Accrued Liabilities - Other 347 Inter Program - Due To 348 Loan Liability - Current 310 Total Current UabllBies
$112,897 $175,994 $62,680 $44,817 $30,835 $5,706 $22,123 $24,142 $19,065 $17,337 $210 $6,165 $268,110
$82,059 $100,455 $15,356 $882,106 $434,807 $40,518 $854,645 $122,125 $1,62,692 $2.131.864 $2,000 $194,172 $1,627,849 $1,555,277 $2,000 $187,797 $18,684
351 Long-twm Debt, Net of Current - Capital Projects/Mortgage Revenue 353 Non-current Uabilities - Odim354 Accrued Compensated Absences - Non Current 355 Loan Liability - Non Current 356 FASB 5 Liabilities 350 Total Non-Current UabltiUos 300 Total Liabilities 508.1 Invested In Cai^ted Assete, Net of Related Debt 511.1 Restricted Net Assets 512.1 Unrestricted Net Assete 512.2 Unresanred, Undesignated Fund Balance 513 Total Equlty^^t Assete 600 Total Liabilities end Equity/Net Assete $7,599,415 $1,235,669 $1,501,9n $3,131,669 $6,363,846 $67,227 $1,434,750
$425,000
$428,818 $147,324
$30,633
$455,633 $2,587,497 $4,601 $956,975 -$185,408 $776,168
$0 $2,000
$0 $194,172 $5,261
$576,142 $2,203,991 $3,871,475 -$997,466 $2,874,009 $5,078,000
$2,236 $2,236 $4,236
-$57,072 -$S1,781 $142,361
$10,731,084
$3,363,665
34
State/Local
97.109 Ksaster Housing Asslstence Grant
14.IKE DHAP-IKE
Subtotd
ELIM
Total $112,897 $463,875 $86,182 $50,401 $485,064 $69,880 $499,873 $82,059 $119,139 $15,356 $882,106 $434,807 $40,518 $3,909,487 $122,125
$112,897 $496 $178 $463,875 $86,182 $50,401 $485,064 $89,880 $477,750 $499,873 $82,059 $119,136 $15,356 $882,106 $434,807 $40,518 $21,988 $21,988 $1,287,780 $3,909/187 $122,126 $478,424 $7,373,769 $0
$0
$7,373,766
$853,818 $147,324 $1,006 $98,866 $1,434,750
$853,818 $147,324 $68,866 $M34,750
$0 $21,988
$0 $0
$0 $1,287,780
$1,006 $476,430
$2,534,758 $6,908,527 $10,245,213 $656,675 $2,388,802

$13,590,890 $23/99.517
$0 $0
$2,534,768 $6,908,527
$10,245,213 $956,976 $2,388,802
$61,161
$61,161 $83,146
$173,016
$173,018 $173,018
$433,605 $433,605
$1,721,385
$1,723,156
$1,723,156 $2,202,589
$0 $0
$13,590,990 $23,496,617 (concluded)
35
HOUSING AUTHORITY OF THE CITY OF LAFAYETTE FINANCIAL DATA SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30. 2009 Submission Aiidited/A-133 Type: LA005
14.871 Housing Project Total Chcrice Vouchers 70300 Net Tenant Rental Revenue 70400 Tenant Revenue - Other 70500 Totel Tenant Revenue 70600 HUD PHA Operating Grante 70810 Capitel Orants 70710 Management Fee 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Service Fee 70760 Other Feee 70700 Total Fee Revenue $1,211,621 $156,162 $1,367,783 $2,201,531 $166,127 $0 $7,782,279 $0 SO 10.558 Child and Adult Care Food Program Bu^ness Activities Component Unite $243,895 $1,858 $246,753
70800 Other Govemmsnt Grants 71100 Investment income - Unrestricted 71400 Fraud Recovery 71500 Other Revenue 71600 Gain or Loss on Sale of Capital Assete 72000 Investment Income - Restricted 70000 Total Revenue 91100 Administrative Salaries 91200 Auditing Fees 91300 Management Fee 91310 Book-lceeping Fee 91400 Advertising and Marketing 91500 Employee Benefit contributions - Administrative 91600 Office Expmses 91700 Legal Expense 61600 Travel 91810 Allocated Overhead 91900 Other 61000 Total Operating - Administrative 62000 Asset Management Fee $1,852 $186,063 $129,360 $21,320 $15,646 $688,142 $393,867 $2,187,553 $90/420 $83,049 $35,557 $1,677 $381,827 $78,373 $989,615 $6,138,958 $1,363,124 -$910 $16,558 $7,800,564 $11,303 $3,154 $12,044 $6,528
$31,872 $62
$181,060
$31,872
$181,162
$245,753
$710,518 $41,955
$286,597 $9,115
$157,882 $1,200 $16,000
$34,575 $1,210
$25,000 $37,213 $37,213 $4,686 $224,652 $39,069 $54,069
36
Stete/Local
14.DVP [faster
Voucher Program
67.109 Disaster 14.IKE Housing Asdstanca DHAP-IKE Grant
Subtotel
EUM
Total
$1,465,518 $158,020 $0
$1,456,516 $158,020 $1,613,636
$0
$0
$0 $929,305
$0 $3,060,092
$1,613,636
$13,663,207 $196,127
$13,963,207 $196,127
$0
$0
$0
$31,872 $6,337 $20,862 $12,044 $1,660,743 -$910 $16,558 -$668,142
$31,872 $20,862 $12,044 $882,601 -$610 $16,658 -$688,142 $16,705,867
$0
$935,642
$3,060,092
$17,394,036
$29,999 $3,880
$29,876
$1,217,875 $56,260 $15,000
$1,217,875 $56,250 $16,000
$1,420 $3,969 $1,215 $28,135
$3,072 $315,242 $252,842 $66,877
$3,072 $316,242 $252,842 $56.8n $20,536 -$688,142 $406,827 $583,690 -$688,142 $2,908,211
$226
$10,862
$1,166
$2,017
$20,636 $1,094,969
$8,277
$4,176 $66,842
$563,690 $3,596,363
$226
$0
$56,263
(continued)
37
HOUSING AUTHORITY OF THE CITY OF LAFAYETTE FINANCIAL DATA SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2009
Submission Audited/A-133 Type: LA005
14.871 Housing Project Total Choice Vouchers 92100 Twiant Services - Salaries 62200 Relocation Coste 92300 Employee Benefit Contributions - Tenant Services $42,533 10.558 Child and Adult Care Food Program Business Activities Componmt Units
$4,506
$32,806 $79,847 $29
92400 Tenant Services - Other

92500 Total Tenemt Services
$0
$0
$29
$0
93100 Water 93200 Electricity 93300 Gas 93600 Sewer 93700 Employee Benefit Contributions - Utilities 93800 Otiier UQIiUes Expense 93000 Total Utilities
$43,781 $287,117 $15,773 $118,023 $2,362 $162
$1,136 $463,830 $2,524 $0 $0
$14,036 $14,036
94100 Ordinary Medntanance and Operathins - Labor 94200 Ordinary Maintenance and Operations Materlate and Other 94300 Ordinary Maintenance and Operations Contracte 94500 Employee Benefit ContrllHJtions - Ordinary Maintenance 94000 Total Maintenance
$360,827 $140,868 $204,366 $42,037 $778,129 $66,354 $0 $4,575 $45,581 $4,624 $61,730 $45,581
$4,576
95200 Protective Sen/ices - Other Contract Coste 95300 Protective Services - Otiier 95000 Total Pttrtective Services 96110 Property Insurance 96120 Liability Insurance 96130 Woricmen's Compensation 98140 All Otiiar Insurance 96100 Total insurance Premiums 96200 Otiier Genera) Expenses 96210 Compensated Absences
$85,699 $685 $88,394
$0
$0
$0
$0
$240,585 $4,260 $78,973 $32,206 $351,764 $26,856 $10,537 $41,643 $454,229 $28,517 $6,176 $0 $5,291
$2,795 $2,496'
$20,611 $20,611 $18,850
38
State/Loctd
87.109 Psaster ^^ ^^^ Housing Assistance [3|^^"p.[[^g Grant
Subtotal
EUM
Total
$42,533
$42,533
$4,508 $207,041 $47,866 $47,866 $287,642 $334,683 $0
$4,508 $287,842 $334,883
$0
$207,041
$43,781 $286,476 $15,935 $116,023
$43,781 $289,479 $15,835 $116,023
$15,172
$15,172 $0 $480,390
$0
$0
$0
$0
$480,390 .
$390,827 $191,104 $96 $270,767 $42,037
$390,827 $191,104 $270,767 $42,037 $0 $894,735
$0
$0
$66
$0
$894,735
$85,699 $695
$85,699 $695 $0 $86,394
$0
$0
$0
$0
$86,394
$240,585 $7,045 $3,872 $112,297 $63,354
$240,585 $7,045 $112,297 $63,354 $0 $423,281 $473,079 $38,997
$0
$0
$3,872
$0
$423,281 $473,076
$1,304
$38,867
(continued)
39
HOUSING AUTHORITY OF THE CITY OF LAFAYETTE FINANCIAL DATA SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30,2009 Submission Audlted/A-133 Type:
LA005 14.871 Housft^g^-l^lJ^'"^ Choice ""^^j'"" M ^ Care Food VoucJiere _ Program , ^ ^ ^ Activities
ProJectTotal
?S Unite
96300 Payments tn Ueu of Taxes 98400 Bad debt-Tmant Rente 96500 Bad debt Mortgages 96600 Bad debt-Other 96800 Severance Expense 96000 Total Otiier General Expenses
$88,492 $44,784 $2,861
$583,248 $161,793 $1,046,653 $0 $2,861 $18,850
96710 interest of Mortage ((- Bonds) Payable 66720 interest on Notes Payt^le (Short and Long Term) 96730 Amortization of Bond Issue Coste 96700 Total Interest Expense and Amortization Cost $79,877 $12,750 $0 $78,877 $12,750
$65,066
$0
$65,066
96900 Total Operating Expenses
$4,189,187
$2,136,539
$37,213
$237,308
$218,213
67000 Excess of C^waUng Revenue over Operating Expensss
$946,771
$6,661,025
-$5,341
-$56,156
$27,540
87100 Extraordinary Maintenance 87200 Casualty Lossss - Non-capItalized 97300 l-k>u^ng Assistance Paymente 97360 I^P Portebility-ln 67400 Depreciation Expense 97500 Fraud Losses 97800 Dwelling Units Rent Expense 90000 Tote^ Expenses $5,1384,934 .$8,730,070 $37,213 $238,190 $351,114 $832,395 $4,532 $882 $132,901 $63,352 $6,585,999
10010 Operating Transfer In 10020 Operating traiefer Out 10030 Operating Transfisrs from/te Primary Govemment 10040 Operating Transfers from/to Component Unit 10100 Total Otiier financing Sources (Uses)
$234,214 -$234,214
$o
$0
$0
$0
$0
40
state/Local
14.DVP ^ ^ Vo^^r ^ Proa ram Program
gy^^Qg Disaster A,^stenc. Housing Aâtance Grant
. . .^.^ ^ ^ ^ ^
Subtotal
EUM
Tot^
$88,492 $47,645
$88,492 $47,645
$583,248
$583,248
$0
$0
$0
$1,304
$1,231,461
$0
$1,231,461
$157,683
$157,693
$0
$0
$0
$0
$157,693
$0
$167,693
$226
$0
$267,392
$116,112
$7,205,190
-$688,142
$6,517,048
4220
$0
$668,250
$2,943,980
$10,188,849
$0
$10,188,849
$63,352 $726,908 $1,220,821 $8,533,728 $970,710
$63,352 $8,633,728 $970,710
$225
$0
$994,300
$1,336,933
$16,772,980
-$688,142
$16,084,838
$234,214 -$234,214
$234,214 4234.214
$0
$0
$0
$0
$0
$0
$0 (conthued)
41
HOUSING AUTHORITY OF THE CITY OF LAFAYETTE FINANCIAL DATA SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2009 Submission Audited/A-133 Type: LA005
14.871 Housing ^ " ' ^ f J ^ ' " ^ Choice ""^'^^"" Care Food Vouchers Program -$929,506 -$5,341 $0 $7,577 $0 Business Activities Component Unite
Project Total
10000 Excess (Deficiency) of Total Revenue Ov (Under) Total Expenses 11020 Required Annued Debt Prlndpai Paymente 11030 Beginning Equity 11040 Piloi Period Acûstments, Equity Transfers and Correction of Errors 11050 Changesin Compensated Absence Balance 11(^0 Changes in Cwitingent Usîlity Balance 11070 Changes In Unrecognized Pension Transition Liabinty 11080 Changes In Special Term/Severance Benefite Liability 11090 Changes In Allowance fbr Doubtful Accounte Dwelling Rente 11100 Changes in Allowance for Doubtful AccountsOttier 11170 Administrative Fee Equity 11180 Housing Asdstancs Paênto Equity 11190 Unit Months Available 11210 Number of Unit Montiis Leased 11270 Excess Cash 11610 Land Purchases 11620 Building Purchases 11630 Fumiture & Equipment - Dwelling Purohases 11640 Fumiture & Equipment - Administrative 11650 Leasehold Improvemente Purchases 11660 Infrastructure Purchases 13610 CFFP Debt Service Paymente 13901 Replacement Housing Factor Funds
$64,024 $88,037 $7,545,391
-$57,038 $0 $5,267 $0
4105,361 $0 $2,874,006 $106,361
$0 $1,706,674
$0
4180,807 $956,975 6730 6658 $673,369 $0 $0 $0 $0 $196,127 $0 $0 $0 20160 18413
42
State/Local
14.DVP Disaster Voucher _ Program $0
97.109 Disaster u'"',"^'"rj'" Housing Assistance Grant
.IKE p^p,^^
Subtotal
EUM
Total
4220
458.658 $0
$492,263
$1,723,159
$621,059 $88,037
$0
$621,059 $88,037 $12,864,670 $106,361
$0
$61,381
$0
$173,018
$0
$12,864,570 $105,361
$0
$0
$0
-$180,807 $956,975 1346 1346 2308 2308 30544 28626 $673,369
4180,807 $956,975 30S44 28625 $673,369
$0 $0 $0 $0
$196,127
$0 $0 $0 $0
$196,127
$0 $0 $0
$0 $0
$0
(concluded)
43

CERTIFIED PUBLIC ACCOUrfTAMrS
P . O . Box 6075 Monroe, LA 7I21J-6075 2441 Tower Drive Wonroe. LA 71201 The CPA. Nwer UndHCstiinaU Tlw VWudT ToB-ltee; (888)741-0205 Telaphons: (31S) 388-4422 Fax: (318) 388-4664
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&aatLAIIa,CPA qtctimj) 19S3-3000
www.allengraenq3a.c(n
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Andit of Financial Statements Performed in Accordant With Govemment Auditing Standards Board of Commissioners The Housing Authority ofthe City of Lafeyette Lafeyette, Louisiana We have audited tiie financial statements of each major fend, the discretely presented component unit, and the aggregate remainingfendinfonnation ofthe Housuig Authority ofthe City of Lafeyette, as of and for the year ended September 30,2009, which collectively comprise the Housing Authority's basicfinancialstatements and have issued our report thereon dated June 30, 2010. Our report was modified to include a reference to other auditors. We conducted our audit m accordance with auditing standards generally accepted in the United States of America and the standards applicable to jfinancial audits contained in Govemment Atiditinp Standards, issued by tiie Comptroller General oftiteUnited States. Thefinancialstatements ofthe discretely presented component unit were not audited in accordance with Govemment Auditing Standan^. Intemal Ckjntrol Over Financial Reporting In planning and performing our audit, we considered the Housing Autii(i1y*s internal control over fmancial reporting as a basisfordesigning our auditmg procedures for the purpose of expressing our opmion on die financial statements, bat not fortitepurpose of expressing an opinion on the effectiveness oftiieHousing Authority's int^nal control over Unancia] reporting. Accordmgly, we do not express an opinion on the effectiveness of tite Housing Authority's mtemal control over financial reporting. Our consideration of int^nal control over financial reporting wasforthe limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in intemal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies m internal control over fmancial reportingtiiatwe consider to be significant deficiencies. A control deficiency exists when the design or operation of a control does not allow management or employees, in tiie normal course of performing their assigned fimctions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or reportfinancialdata reliably m acMKdance with generally accepted accounting principles such thattiiereis moretitana remote lilcelihoodtiiata misstatement ofthe entity's financial statementstiiatis more than inconsequential will not be prevented or detected by the entity's mtemal control. We consider tiie deficiencies described as items 09-Fl and 09-F2 in flie accompanying schedule of findmgs and questioned costs to be significant deficiencies in intemal control over financial reporting.
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Also located m ShcevepK^ Loulliatta Menri>er AoiOKaa Institote of Ceitified Publio AccooDtsntB, Socte^ of ILouls^ Americanfioiitaleof Certified Public AoootmtBDts DiviRDnforCPA F t n ^ Qnphiiyw Bcnefil Audil Quali^ Center, and (he GovenunCDt Audit Qaa]i^ Coiter Equal Onxntunity Enttdoyer
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the entity's intemal control. Our consideration ofthe internal control overfinancialreportmg wasforthe limited purpose described in the first paragraph of tiiis section and would not necessarily identify all deficiencies in the intemal control that might be significant deficiencies and, accordingly, would not be necessarily disclose all significant deficiencies that are also consideredtobe material weaknesses. However, oftiiesiîificant deficiencies desaibed above, we consider item 09Fl to be a material weakness. Compliance and otiier Matters As part of obtîng reasonable assurance about whetiier the Housing Authority*s financial statements are fiee of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance witii those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matterstiiatare required to be reported under Govemment Auditing Standards. and which are described m the accompanying schedule offindingsand questioned cost as items 09-Fl and 09-F2. The Housing Autiiority's responsetothe findings identified in our audit is described in die accompanymg corrective action plan for current yearfindingsand questioned costs. We did not audittiieHousing Authority's response and, accordingly, we express no opinion on it. This report is intended solely for the information and use oftiieBoard, management, federal awarding fancies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Although the intended use oftiiesereports may be limited, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.
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ALLEN, GREEN & WILLIAMSON, LLP Monroe, Louisiana June 30,2010
45
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CERTIFIED PUBUC ACCOUMTANTS P.O. Box6075 Moni!.LA 71211-6075 2441 Tower Drive Monroe, UA 71201 Toll-free: (888)741-0205 Tetephone: (318) 3 8 M 4 2 2 Fex: (318) 388-4664
Tim Green. CTA Margie Williamson, CPA AiivTyiK3.CPA Aimee Bucbanaa. CPA KfidutD>mt.CPA Kane Fencbot^ CPA JodiUB Legg. CPA Quint Mntin. CPA Brian MdBrjde, CPA Jaunicia Mercer, CPA CindyTkoaasoa,<3^ Angle WtUtanuon. CPA
finBilL,AIIca,CFA (Rdted) IW}.2(K)0
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Report on Compliance Wift Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133 Board of Commissioners The Housing Autiiority ofthe City of Lafeyette Lafayette, Louisiana Compliance We have audited the compliance of The Housing Authority of tiie City of Lafeyette witii the types of compliance requirements described in the OMB Chcular A-133 Compliance Supplementtiiatare applicable to each of its major federal programs for the year ended September 30, 2009. The Housmg Autiiority's major federal programs are identified in the summary of auditors' results section oftiteaccompanying schedule offindingsand questioned costs. Compliance witii the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs istiieresponsibilityoftiteHousing Aufliority's management. Our responsibility istoexpress an opinion on tiie Housing Autiiority's compliance based on our audit. We conducted our audit of compliance m accordance with auditing standards generalty accepted in the United States of Americs^ tbe standards q)plicabletofinancialaudits contained in Govermnent Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Govemments, and Non-Profit Organizations. Those standards and OMB Circular A-133 requiretiiatwe plan and perform the audit to obtain reasonable assurance about whether noncompliance with thetypesof compliance requirementsreferredto abovetiiatcould have a du'ect and material effect on a major federal pn^ram occurred. An audit includes examining, on a test basis, evidence about tiie Housing Authority's compliance witii thosereqmrementsand perfomiing such otiier procedures as we considered necessary in the circumstsoices. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination ontiieHousing Authority's compliance with those requirements. As described in items 09-F3,09-F4,09-F5 and 09-F6 in the accompanying schedule offindingsand questioned costs, the Housuig Authority did not comply with requirementsregardingDavis-Bffiwn Act, cash management procurem^t and period of availability that are ^plicable to its Coital Fund Program. As described m item 09-F14 in the accompanymg schedule of findmgs and questioned costs, the Housing Authority did not comply witii requirements regarding special teststiiatare applicabletoits Housing Choice Voucher Program. As described in items 09-F8 and 09-F9 in the accompanymg schedule of findmgs and questioned costs,tiieHousing Authority did not compty witii requirements regarding eligibility and allowable coststiiatare applicable to its Disaster Housing Assistance Program. Compliance witii suchrequirementsis necessaiy in oiu- opmion, for tiie Housmg Authority to comply with the requirements ofthe programs.
46
Aim Localed in Sfanvqioit, Lodstana Meihber Anuxican iBSthuie of Cuti&d PubUo Accounlasis, SocMty of Ixmi American Institute of Certified Public Acoountania DiviiJoa Ibr CPA Finn^ Bmidoyee Benefit Audit Qu^ty Center, and ilie Govenunent Audit Quality Center Bqittl Opporttmtty EmplcTer
In our opmion, exceptforthe noncompliance described intiiepreceding paragraph,flieHousing Authority complied, in all material respects, witii the requirements referred to above tiiat are applicable to each of its major federal prc^r^ms for the year ended September 30, 2009. The results of our auditing procedures also disclosed other mstances of noncompliance with those requirements, which arerequiredtobe reported in accordance with OMB CircularA-133 and which are described in the accompanying schedule of fmdings and questioned costs 09'F7,09FIO, 09-Fll, 09-F12,09-F13,09-F15, and 09-F16. Intemal Control Over Compliance The management ofthe Housing Authority is responsibleforestablishing and maintaming effective intemal control over compliance with requuiements of laws,regulations,contracte, and grante applicable to federal pro-ams. In planning and performing our audit, we considered tiie Housing Authority's mtemal control over compliance with requiremmts tiiat could have a duect and material effect on a major f&jeral program in order to determine our auditing procedures fortiiepurpose of expressing our opinion on compliance; but notfortiiepurpose of ^qiressing an opinion ontiieeffectiveness of intemal control over compliance. Accordingly, we do not e?qpress an opinion on the eflfectiveness ofthe Housing Autiiority's mtemal control over compliance. Our consideration of intemal control over compliance was for the Ihnited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the entity's mtesnal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified obtain deficiencies in mtemal conbx>l over compliance that we consider to be significant deficiencies and ofliers that we consid^ to be material weaknesses. A control deficient^ in an entity's intemal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,toprevent or detect noncompliance with a type of compliance requirement of afederalpro-am on a timely basis. A significant deficiency is a control deficiency, or combmation of control deficiencies, that adversely affects the entity's ability to admmister a federal program such that there is moretiiana remote likelihood that noncompliance witii atypeof compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiencies m intemal control over compliance described in the accompanying schedule of findings and questioned costs as items 09-F3,09-F4,09-F5,09-F6,09-F7,09-F8,09-F9, 09-F10,09-FU, 09-F12,09-F13,09-F14,09-F15 and 09-F16 to be significant deficiencies. A material weakness is a significant deficiency, or combination of significant deficiencies,tiiatresults in more than a remote likelihood that material noncompliance with atype of compliance requirement of afederalprogram will not be prevented or detected by the entity's intemal control. Of the significant deficiencies in intemal control ovacompliance described in the accompanying schedule of findings and questioned costs, we consider items 09-F3,09F4,09-F5,09-F6,09-F8, 09-F9 and 09-F14 to be material weaknesses. The Ifousing Authority's responsetothe findings identified in our audit is described m the accompanying corrective action plan for current year findmgs and questioned costs. We did not audit the Housing Autiiority's response and, accordingly, we express no opinion on it Thisreportis intended solety fortiieinformation and use oftiieBoard, management, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Altiiough tfie intended use of these reports may be limited, under Louisiana Revised Statote 24:513 thisreportis distributed by the Office oftilieLouisiana Legislative Auditor as a public document.
ALLEN, GREEN & WILLIAMSON, LLP Monroe, Louisiana June 30,2010 47
The Houshig Authority of the City of Lafayette Schedule of Expenditures of Federal Awards For the Year Ended September 30,2009 CFDA FEDERAL GRANTOR/ PASS-THROUGH GRANTOR/PROGRAM NAME CASH FEDERAL AWARDS United States Department of Housing and Urban Development Low Rent Public Housing Section 8 Housing Choice Vouchers Capital Fund Program 14.850 14.871 14.872 LA005 OFND LA005 VO LA005AF LA48P005501-06, LA48P005501-07, LA48P005501-08 $ 1,943,547 7,762,279 Number Grant ID# Expenditures
Total United States Department of Housing and Urban Development United States Department of Homeland Security Passed Through United States Department of Housing and Urban Development Disaster Housing Assistance Program 97.109 LA005 FE LA005 Fl LA005 F2 LA005 IE LA005 n LA005I2 LA005D LA005 14 LA005 15
454,111 10,159,937
3,989,397
DHAP-DCE Security Dcp. - Accounts Payable HUD DHAP-nCE Utility Dep. - Accounts Payable HUD Total Disaster Housing Assistance Program United States Department of Education Passed Through Louisiana Department of Education Child and Adult Care Food Program Total Federal Awards
97.109 97.109
242,550 235,200
4,467,147
10.558
N/A
31,872 $ 14,658,956
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The Housing Authority ofthe City of Lafayette Notes to the Schedule of Expenditures of Federal Awards For the Year Ended September 30,2009 NOTE 1 - GENERAL The accompanying Schedule of Expenditures of Federal Awards presentstiteactivity ofall federal awards programs offlieHousing Aufliority. The Housmg Autiiority reportmg entity is defined m Note 1totiie Housing Authority's financial statements. Federal awards received directlyfiximfederal agencies, as well as federal awards passed through otiier îvemment ^ncies, is mcluded on the schedule. NOTE 2 - BASIS OP ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, vîch is described in Note 1 ofthe Notestothe Financial Sta^nîts to the Housing Authority's financial statements. NOTE 3 - RELATIONSHIP TO FINANCIAL STATEMENTS Federal awards revenues are reported in tiie Housmg Authority'sfinancialstetements as follows: Operating revenues: Federal grants Nonoi^rating revenues: Cfîtal contributions Accounts payable (duetoHUD: DHAP-BKE) Total
$ 13,985,079 196,127 477,750 $ 14,658,956
NOTE 4 - RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Amounts reported m die accompanymg schedule agree with the amountsreportedm therelatedfederalfinancialreports except for changes madetoreflect amounte in accordance with accounting principle generalty accepted m the United States of America. NOTE 5 - FEDERAL AWARDS For those fimds that have matehing revenues and state funding, federal expenditures were detemiined by deducting matehingrevenuesfiomtotal expenditures. In accordance witii HUD Notice PIH 98-14, "federal awards" do not mclude the Housmg Authority operating incomefromrents or investments (or otiier non-federal sources). The entire amount of operating subsidy received duringtiiefiscalyear is considered to be "expended" during thefiscalyear. NOTE 6 - DISASTER HOUSING ASSISTANCE PROGRAM The $4,467,147 amount ontiieschedule of federal awards includes $477,750, viîch the Housing Authority received under the DHAP-IKE program to assist voucher holders with security deposits ($242,500) and utility deposits ($235,200). hi accordance with HUD's guidance, these fimds received should berecordedas an accounte payable duetoHUD until the program is completed and monies are reimbursedtoHUD. See Note 8 ofthe NotestoFinancial Statementstothe Housing Autiiority'sfinancialstatements.
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The Housing Authority of the City of Lafayette Schedule of Findings and Questioned Costs As of and for the Year Ended September 30,2009 PART I - Summaiy ofthe Auditors* Results Financial statement aadit i. ii. Thetypeof auditreportissued was unqualified for each major fund and the discretely presented component unit There were two significant deficiencira requiredtobe disclosed by Govemment Auditing Standards issued by the Comptroller General ofthe United States. One oftiiesesignificant deficiencies was considered to be a material weakness, iii. There were two instances of noncompliance considered material, as defined by the Govemment Auditing Standards,tothefinancialstatement Audit of federal awards iv. There were fourteen significant deficiencies required to be disclosed by OMB Circular A-133. Seven oftiiesesignificant deficiencies were considered to be material weaknesses. V. Thetypeofreporttiieauditor issued on compliance for major programs was qualified.
vi. The audit disclosed findfaigs which the auditor is required to report under OMB Circular A-133, Section .510(a). vii. The major federal programs are: CFDA# 14.850 CFDA# 14.871 CFDA# 14.872 CFDA# 97.109 Low Rent Public Housmg Program Housmg Choice Voucher Program Coital Fund Program Disaster Housmg Assistance Program
viii. The dollar threshold used to distinguish between Type A and Type B programs as described in OMB Circular A-133, Section .520(b) was $439,769. ix. The auditee does not qualify as a low-risk auditee under OMB Circular A-133, Section .530.
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The Housing Anthority ofthe City of Lafayette Schedule of Findings and Questioned Costs As of and for the Year Ended September 30,2009 PART n Findings related to the finandal statements which are required to be reported in accordance with Govemment Au^tlng Standards generally accepted in the United States of America: title: 09-Fl Weak Acconnting Controls
Reference # and
Entitv-wide or orogram/deDartment specific: Thisfindingpertains entity-wide. Criteria or specific requirement: (jood intemal controls also require that bank reconciliations be performed timely, to ensure that unexplained diffa:enccs are discovered and resolved quickly. Additionally, information usedtodevelop accountingrecordsshould be readily available for review and should mirror the accounting records. Periodic reviews should be performed to oisure tiiat all transactions relating to the fiscal year have been recorded in the correct accounte and entered in the correct amount. There should also be adequatereviewofthe completeness of documente submitted to federal agencies. Effective intemal controls include vendor disbursements Iiaving original documentetion (invoices, receipts, ete.), purchase order whenrequiredby policy, proper approval, supported by evidoice of receipt of goods or services, and should be paid timely. Payroll records should have adequate written documentation for extra compensation paid to employees. The audit report should be filed timely to the Louisiana Legislative Auditors within six months after year end, accordance to Louisiana R.S. 24:513A (5) (a) (i). Condition found; Wc tested ten charges to travel expensetoverify that there werereceipteto verify all charges and that all travelreimbursementvouchers were calculated correctiy. We noted arefundwas placed on a personal credit cardrathertiianpaid back to the Housing Authority. We alsotestedten credit card stetemîte to verify that there was a detailed receipt for all charges made to the credit card. We noted two exceptions in which one dealt with food charges did not have an explanation as to why the charge was made and the business purpose. The other exception dealt with the Housing Autiiority was not adequately maintaining a log to sign in and out the credit card. Additionally, it was noted that after the test of credit cards was con^leted, the Housing Authority was going back and updating the credit card paymente in which printing duplicate receipts offtiieinternet or having additiwial detail added to the receipt explaining the purpose of expenditures. Inreviewingfivevendorfilestodetermine invoices \rerc original, it was noted twofilescontained copies of invoices and not the original. In reviewing one month's disbursemente to ensure all check infoimation agreedtotiieHousing Autiiority's ^tem, it was noted that the Housing Authority is bypassing the check signing policy, which requires manual signatures for all checks in excess of $5000. The Housing Authority will reduce paymente or split the transaction in ordertobe able to process the check without a manual signature. In a test of eight bank reconciliaticms, we notedtiuccreconciliations were not preparedtimely.We also notedfliatold outetanding checks were stillreflectedon the bank reconciliation in which check dates ranged from 2005 to tiie present and intotelthe balances were significant. In testing tiie general ledger transactions, it was notedfliattiieHousing Authority had to make numerous journal entries after the trial balances werereceivedadditionallytiieHousing Autiiority resubmitted new trial balances after audit test work had been performed.
51
The Housing Authority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART n Fiudings related to the financial statemente which are required to be reported in accordance with Govemment Auditing Standards generally accepted in the United States of America:
hi a test of seventy-six vendor paymente, diefollowingexcq)tions were noted: Four paymente where purchase orders were not used appropriately, in which the purchase order/requisition wasrequestedafter the date of purchase. One payment did not appear necessary. The Housing Authority made a duplicate payment for one invoice. Four paymente where the charge was not supported by proper documenteticm, such as an original invoice. Fourteen paymente where the invoice was not paid in a timely manner. Two paymente that were no bids were not sent out or quotes were notreceivedproperly. One payment that was for an unallowable activity. Five paymente that were not applied uniformly to federal and non-federal activities.
Also, in our testing of the Housing Authority's accounte payable, we notedtiiepilot calculation was not correct, in which the Housing Authority hadtoreviewthe utility expenses and post journal entries to correct the calculation. In testingfiveadministrative employees* salaries, it was noted that an employee is receiving extra compensation for additional work completed, however, this informaticm was in a form of a verbal agreement and no written contract/agreement could bereviewedor tested. In addition, Louisiana Revised Statute 24:513A (5) (a) (i) requhes that "...audite shall be completed witiiin six months ofthe close of die entity'sfiscalyear". The Housing Authority* s audit for theycar ended September 30,2009 was not completed within six months ofthe close ofthe Housing Authority's year end. Proper perspective for lodging the prevalence and consequences: The samples selected for testing included six bank reconciliations, forty-six vendor disbursemente, t ^ travel disbursemente and five credit card statemente. Possible asserted effect fcause and effect); Cause: The Housing Authority's accounting department has had significant turnover and is still under staffed. Effect: hitranal controls over accounting functions are weakened. Recommendations to prevent future occurrences: The Housing Authority should also establish a full level of accounting staff to ensure all information is being maintained in atimelymanner. All vendor disbursemente in the future should be properly docimiented, properly approved, and paid in atimelymaimer. The Housing Authority should estebli^ procedurestoensure all original supporting documentation f(^ vendor disbursemente is submitted to the accounting department in atimelymanner. In addition, the Housing Autiiority should establish procedures to ensure that allfinancialrecords are accurate and up-to-date in ordertohave the auditedfinancialstobe submitted to the Legislative Auditors in a timely manner.
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The Housing Authority of the City of Lafayette Schedule of Findii^ and Questioned Coste As of and for the Year Ended September 30,2009 PART 0 Findings related to thefinancialstatemente which are required to be reported In accordance with Govemment Auditing Standards generalty accepted in the United States of America: 09-F2 Violation of State Cooperative Endeavor Agreement
Reference # and title:
Eatttv-wide or program/department specific: Thisfindingis entity-wide. Criteria or specific requirement: Per the Housing Authority's cooperative endeavor agreement, the Housing Autiiority was to receive funduigfiromthe Louisiana Department of Treasuiy for the purpose of obtaming design plans of an improved foundation on affordable housing homes to withstand hurricane force winds. The schedule of professional servicesreflectedonly one vendor m which the plans were to be obtained from. Condition found: Inreviewofthefimdsreceived, it was noted that the Housing Authority did not spend the fimds accordingtothe cooperative endeavor agreement The fimds were used for rezoning costs, that wenttowardsthe St. Antoine development, in which the Housing Autiiority's nonprofit agraicy is a general partner. These funds also were used as a partial payment on a Hurricane Resistant home and notforthe design plans for an improved foundation. Proper perspective for judging the prevalence and consequences: The receipt ofstatefimdingwas noted witiiin the test of income and furflier researchedfliecooperative endeavor agreement. Possible asserted effect fcause and cffecfl: Cause: The auditor was unable to deteimine the cause. Effect: The Housing Authority did not meet the compliance requhemente of cooperative endeavor agreement wifliflieLouisiana Department of Treasuiy. Recommendation to prevent future occurrences: The Housing Authority should establish procedurestoensure tiiat all conditions are met when entering into cooperative endeavor agreemente to ensure compliance witii the agreement
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The Housing Authority ofthe City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 FART i n Findings and questioned coste for federal awards which are required to be reported under OMB Circular A-133 Section .510(a): 09-F3 Davis-Bacon Act
Reference # and title:
Federal program and specific federal award identification: Thisfindingrelates to the Capital Fund Program, CFDA #14.872 fortiieFederal Award Years 2006,2007 and 2008 receivedfiromFederal Agency: Department of Housing and Urban Development. Criteria or spedfic requirement' Per HUDregulations,all ccmstructic^ contracte over $2,000 should have prevailing wage clause in the contract. These clausestellthe minimum wages for each type of contractor. Also, the work should not start until after the contract date and bid date. Condition found: In a test of three contractetiiatwere covered under the Davis-Bacon Act, the following exceptions were noted. Two contracte did not mention the prevailing wage clauses in tbe contract. However, the complete contract could not be provided to the auditor, although this infomiation was requested numerous times. The Housing Authority did not receive any weekly certified payrollsfixmione contractor and did not have all payrollsfromanother contractor.
Proper perspective for lodging the prevalence and consequences: The sample consisted of three contracts. All three contracte were for the same contractor. Possible asserted effect (cause and effect): Cause: The auditor was unable to determine the cause offliefindmg. Effect: The Housing Authority is not in compliance with the Davis-Bacon Act. Also, they are not monitoring contractOTS* payrolls to determine if the contractors are paying the correct prevailing wage rates. Recommendations to prevent fature occurrences: The Housing Authority should establish policies to ensure compliance with the Davis-Bacon Act andtomore closely monitor the start dates ofthe various projecte they ccmtract out Reference # and title: 09-F4 Cash Management and Allowable Actlvlties/Coste
Federal program and specific federal award Identification: Thisfindingrelatestothe Coital Fund Program, CFDA #14.872 for tiie Federal Award Years 2006,2007, and 2008 receivedfixsmFederal Agency: Department of Housing and Urban Development. Criteria or specific requirement: Per HUDregulations,draw-downsfiromdie LOCCS system should be spent on tiie requested invoices within three business days of receipt of the fimds. Also, there should be supporting documentetion for all funds requested and this documentation should in accordance with the capitalfimdbudget
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The Housing Authority ofthe City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART m Findings and qoesttoned coste for federal awards which are required to be reported under OMB Qrcular A-133 Section .510(8):
Condition found; In a test often draw-downsfiromtiieLOCCS system, which included 33 vendor disbursements. the following was noted: Fourteen paymente that were not made within three business days ofreceiptofthe requested funds. Four payments were not considered allowable activities in which the payment was not in accordance with tiie capital fimd budget. Five paymente did not have adequate supporting documentation, tiierefore, could not determine if the payment was in accordance with the budget. Five paymente were not charged correctiy totiiecorrect account per the budget.
Proper perspective for judging the prevalence and consequences: The sample consisted often draw-downs from the LOCCS system, which included thirty-three vendor disbursemente. Possible asserted effect (cause and effect!; Cause: The Housing Authority had change in staffing, in which for a period oftimeduring thefiscalyear, tiiere was no one overseeing the program in ite entirety. Effect: The Housing Authority is not paying some requested invoices in atimelymanner. Also, some requeste do not have supporting documentation for all invoices on the request. The Housing Aufliority is not meeting federal compliance requiremente conceming cash management and allowable activities. Recommendations to prevent future occurrences: The Housing Authority should establidi policies to ensure paymente are made m atimelymanner, that all invoices on each request have supporting documentation and are in accordance with the HUD approved capitalfondbudget Reference # and title: 09-F5 Procurement of Capital Funds
Federal program and specific federal award identification: Thisfindingrelatesto the Coital Fund Program, C3DA #14.872 fortiieFederal Award Years 2006,2007, and 2008 receivedfix)mFederal Agency: Department of Housing and Urban Develc^mient. Criteria or specific requirement: Per HUD regulatirais, tiie Housing Authority should establish procurement procedures to ensure bidding of projecte provided fiill and open competition. Additionally, the procurement documentation should support theraticmaleof for the awmd to the vendor. Condition found; In testing the bids, it was noted that the Housing Authority awarded a vendor a contract for modifications of unite for handicap accessibility. The Housing Authority could not provide documentation to substantiate tiiat the project was advertised and provided fiill and open competition^ Additionally, the Housing Aufliority approved a ctoge order to the above mentioned contract for hurricane repairs to buildmgs, in which did not appear to be within the scope ofthe original contract
55
The Housing Authority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART n i Findings and questioned coste for federal awards which are required to be reported onder OMB Circolar A-133 Section .510(a):
Proper perspective for lodging the prevalence and consequences: The sanq)Ie consisted oftwo large purchases selectedfromtiiegeneral ledger transactions. Possible asserted effect fcaose and effect): Cause: The auditor was unable to determine the cause of the finding. Effect: The Housing Autiiority did not meet all federal requiremente related to procurement Recommendations to prevent fntore occurrences: The Housing Authority should estebUsh policiestoensure all projecte or large purchases are provided foil and open conêtition. Additionally, the Housing Authority should establish procedurestoensurefluttall approved change orders are within the scope ofthe original contract and do not bypass the procurement procedures. Reference # and titie: 09-F6 Period of Availability of Capital Funds
Federal program and specific federal award Identification: Thisfindingrelatestothe Capital Fund Program, CFDA # 14.872 for the Federal Award Years 2007 receivedfromFedal Agency: Department of Housing and Urban Development Criteria or specific regolrement: Per HUDregulations,the Housing Autiiority must obligate at least ninety percent ofthe capital fund grant within two yearsfix)mthe effective date ofthe grant andfollyexpended within four yeare from the effective date ofthe grant. Condition foond: Inreviewof the capitalfimds,it was notedfliatthe Housing Authority did not have ninety percent ofthe 2007 capital grant fimds obligated by the obligation end date of September 12,2009. Proper perspective for judging the prevalence and consequences: The sample consistedreviewofthe general ledger expenditures and the signed contracts. Possible asserted effect (cause and effect): Cause: The auditw was unable to detwmme the cause offliefinding. Effect: The Housing Authority did not meet allfederalrequurementerelatedtoperiod of availability. Recommendations to Prevent future occurrences: The Housing Authority should establish policiestoensure all capitalfimdsare ninety percent obligated and fully expended within the required deadlines.
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The Housing Authority ofthe City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART n i Findings and questioned coste for federal awards which are required to be reported under OMB Circular A-133 Section .510(a): tide: 09-F7 HUD Report 60002
Reference # and
Federal program & specific federal award Identiflcation: This finding relates to the Capital Fund Program, CFDA #14.872, for Federal Award Years 2006,2007 and 2008; Public and Indian Housing, CFDA# 14.850, for Federal Award Year 2009; Housing Choice Voucher Program, CFDA# 14.871, for Federal Award Year 2009 receivedfixwnFederal Agency: Department of Housing and Urban Development. Criteria or spedflc requirement: Under special reportingrequiremente24 CFR sections 135.3 (a) and 135.90, HUD requires each Public and Indian Housing grant that is involved in development, operating, or modemization assistance to submit Form HUD 60002relatingtoSection 3 economic opportunities for low- and very low- income persons. Condition found: For the Public and Indian Housing Program, Capital Fund Program and the Housing Choice Voucher Program, HUD Report 60002 was not submitted to HUD as required. Proper perspective for judging the prevalence and consequences: The Housing Authority did not submit a report andtiiereforethe auditor was unable to test the reporting requirement. Possible asserted effect (cause and effect): Cause; The auditor was unable to determine the cause. Effect: The Housing Authority did not meet all federal requirementerelatedto reporting. Recommendations to prevent foture occurrences: The Housing Authority should ensure that all employees over the federal programs are well trained and familiar wifli federal reporting requiremente. Reference # and title: 09-F8 Test of Resident Files
Federal program & specific federal award identiflcation: ThisfindingrelatestoflieDisaster Housing Assistance Program, CFDA #97.109, forflieFederal Award Year 2009receivedfiomFedaral Agency: Department ofHomeland Security passed through the Department of Housing and Urban Development. Criteria or specific requirement; The Housing Aufliority must submit information about the family throughtiie^ Disaster Information System (DIS). The information submitted must mateh the mformation contained in the resident's file. Additionally, the Housing Autiiority must submit infomiation intiieHUD system-Efforte To Opportunity (ETO) for case management date at a minimum of a quarterly basis. This mformation ôuld be submitted more often iftiie resident is consideredtobe more in need and falls under Tiers n through IV. The Housing Authority is also required to perform amiual mspections and rent reasonableness procedurestoensure the unit meete required housing standards and rent is reasonable in comparison tofliearea and amenities of unassisted unite
57
The Housing Anthority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART i n Findings and questioned coste for federal awards which are required to be reported under OMB areolar A-133 Section .510(a):
Condition found: The following exceptions were noted in a test of forty-one DHAP tenant files: Ten exceptions were noted in whichtiierewas no DIS system print out in the file or letterfromFEMA, therefore, unable to determine if resident was allowed to be under the DHAP program. Thirteen exceptions noted in which the Housing Authority did not pay the correct amount. Most of the exceptions dealt with the Housing Authority using only the Lafayette Parish payment standard and FMR and not the information applicable to the location ofthe unit This caused an overpayment in rent in most cases. Forty-one exceptions in which there was no DIS printed out during the fiscal year, therefore, unable to determine if the information submitted during thefiscalyear end September 30,2009 to HUD was accurate. Thirteen exceptions noted in which the Housing Authority did not reducetiiepayment by $50 incremente per month starting in May 2009 according to the program. It was noted that the Housing Authority received a hardship affidavit from the majority oftheresidentetested, yet were inconsistent as to HAP reductions. Thirty-nine exceptions were noted concemingflieannual inspection of the unite under the program. It was noted that Housing Authority did not complete infections on all unite and some inspections were con:q>leted several months after paymente were made, which was considered timely. Additionally, it was noted that some inspections hadfoiled,yettiierewas no si^port in thefilereflectinga reinspection. Forty-one exceptions noted in which the Housing Authority did not adequately complete a rent reasonableness on the unit. It was also noted that on some ofthefiles,the rent reasonableness in thefilewas febricated. Twenty-one exceptions noted in which the Housing Aufliority did not adequately submit case management information in the ETO system. Somefilesdid not have any support and others have very mmimum time spent ot support in the file. One exception noted in which the HAP contract was not signed by all parties. One exception noted in which the amount per the contract in thefiledid not agree to the amount paid.
Ouestioned Coste; The sample size consisted of forty-one Disaster Housing Assistance Program residentfiles,which made up approximately 13 percent ofthe total population. The questioned costs, when extracted over the entire population, were estimated to be $31,600. Proper perspective for judging the prevalence and consequences: The sample sized consisted of forty-one Disas^ Housing Assistance Programresidentfiles. Possible aisserted effect (cause and effect); Caose; The Housing Authority docs not have procedures in place for monitoring of coq)liance with requiremente of the program. Effect: Someresidentfilesmay not meet federal guidelines. Recommendations to prevent future occurrences: The Housing Authority should esteblish monitoring procedures to ensure that the infonnation on the Disaster Information System is correct and the DIS is printed and mamtained in 58
The Housing Authority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART n i Findings and questioned coste for federal awards which are required to be reported under OMB Circular A-133 Section .510(a):
flie residente*filesas an audit trail. Additionally, the Housing Autitority should establish monitoring procedures to ensuretiieEfforts to Opportunity is updated regularty and adequate support in the resident files. Reference # and titie: 09-F9 Contract Pavmente
Federal program & specific federal award identification: ThisfindingrelatestotiieDisaster Housing Assistance Program, CFDA #97.109, fbr the Federal Award Year 2009 receivedfix)mFederal Agency: Department of Homeland Security passed throu^ tiie Department of Housing and Urban Development Criteria or specific requirement: Good intemal controls requfre that the Housuig Authority have adequate oversight and monitoring of contract workers to ensure work performed is complete and acceptable. Additionally, good intemal controls require that contracte on an hourly basis should have adequate documentation to substantiate the number of hours worked. Conditiou found: In review ofthe DHAP general led^r, it was noted that the Housing Authority has hired all workera under the program, withflieexception of an accountant, as contract workers. The contracte b^ween the worker and the Housing Authority stipulatefliatworkers aretobe paid on an hoiffly basis. However, when reviewng paymente made by the Housing Authority, it was noted thatflieHousing Autiiority is pîng each worker on an ei^ty hour pay period without having the worker submit hourly reports. Additionally, through inquiry of housing staff, it was noted that some oftiieworkers are not requhedtowork a normal workday and have other jobs in the community. Additionally, the some ofthe contract rates of pay do not appear to be reasonable when comparingtotiieprogram requiremente and others paid withintiieHousing Authority staffmg. Questioned Coste: The review ofthe vendor history ofthe Disaster Housing Assistance Programtiiequestioned coste were estimated to be $243,000. Proper perspective for fudging the prevalence and consequences: Reviewof the DHAP general ledger and vendor history. Possible fwserted effect (cause and effect): Cause: The Housing Autiiority does not have procedures ui place for monitoring time spent on program by contract woikers. Effect: The Housing Autiiority may have made paymente that would not be considered allowable under the program. Recommendations to prevent future occurrences: The Housing Authority should establish monitoringprocedures to ensure contract workers'timerecoids are accounted for and are paid accordingtothetimespent on the program.
59
The Housing Authority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART i n Findings and questioned coste for federal awards which are required to be reported under OMB Orcular A-133 Section .510(a): titie: 09-FlO Test of Resident FUes
Reference # and
Federal program & specific federal award identification: Thisfindingrelatestothe Public and Indian Housing program, CFDA #14.850, for Federal Award Year 2009 receivedfi^mFederal Agency: Department of Housing and Urban Development. Criteria or specific requirement: The Housmg Authority mustre-examinefamily income and composition at least once every 12 months and adjust the total rent as necessary according to 24 CFR sections 5.617 and 960.209. Clianges m the rent calculation resultingfromthe reexamination should bereflectedin the rental register. The Housing Authority is requiredtosubmit Form 50058 electronicallytoHUD each timetiteHousing Autiiority has an admission or re-examination. The residentfilesmust contam the Form 50058 as well as the following pertinent information: social security cards, bhth certificates, (or valid documentetion of birth dates) and third party verificati<is of income, child care expenses, and medical expenses. Also, residentfilesshould have HUD Form 9886 in thefileand form should be signed aimually by all adulte in the household. Condition found: The following exceptions were noted in a test of fortyresidentfiles: One file did not ccmtein a personal declaration in thefilefor there-examt^ted. Fourfilescoritained information that could not be traced back to proper supporting documentation. Onefiledid not have necessary items properly confirmed by an outeide third party. Onefilehad an error in the tenant's income calculation. Two tenant's rental charge did not agreetothe rent roll.
Proper perspective for ludging the prevalence and consequences; The sample sized consisted of forty Public and Indian Housing Program resident files. Possible asserted effect (cause and effect): Cause: The auditor was unable to determine the cause. Effect; Some resident's files may not meet federal guidelines. Recommendations to prevent fiiture occurrences: TheHousingAuthorityshouldestebhshmonitaringprocedurBS to ensure that information in residentfilesis adequate, agreestothe Form 50058, and that the income calculaticai is correct.
60
The Housing Authority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART m Findings and questioned coste for federal awards which are required to be reported under OMB arcular A-133 Section .510(a): titie: 09-Fll Waiting List
Reference # and
Federal program and specific federal award identification: ThisfindingrelatestotiiePublic and Indian Housing program, CFDA # 14.850 for Federal Award Year 2009receivedfromFederal Agency: Department of Housing and Urban Development. Criteria or specific requirement: Applicants on the waiting list should be selected in order of their position on the waiting list. Applicante h i ^ on the waitinglist should be offered the opportunitytomove in before applicante lower on the waiting list than them. Also, all move-ins should be selected from the waiting hst, imless there is a documentedreasonshowing why they were chosrai ahead of others. Condition found: In a test of thirty applicante near the top ofthe waiting list, it was noted thatfiveapplicante were not given the correct preference code according to the Housing Authority's policy. Also, (me of the selected applicante should have been removed off the waiting li^ because the applicant had moved into PubUc Housing in 2006. In a test of twelve move-ins, three move-ins were not selected in the correct orderfromthe waiting list. Proper perspective for judging the prevalencfe and consequences: The sample consisted of thirty applicante on the waiting list for Public Housing and twelve tenante selectedfromthe list of move-ins for Public Housing. Possible asserted effect (cause and effect): Cause: Tlie auditor was unable to determine the cause. Effect: The Housing Authority is not selecting tenante properlyfromite waiting list and not adding applicante with the correct preference code according to policy. Recommendations to prevent fntore occurrences: The Housing Authority should establish procedures to make sure that tenante are added to the waiting list correctiy and selectedfix)mthe waiting list properly Reference # and titie: 09-F12 MASS Submission
Federal program and specific federal award identification: Thisfindingrelatesto the Public and Indian Housing program, CFDA # 14.850 for Federal Award Year 2009 receivedfix)mFederal Agency: Department of Housing and Urban Development. Criteria or specific requirement: The Housing Autiiority is required to electronically submit the Management Assessment Subsystem (MASS) toflieReal Estate Assessment Center (REAC). The critical information submitted reflecteflicunit turnaround, capitalfimd,work orders, annual inspections and security.
61
The Housing Authority of the Oty of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART i n Fiodings and questioned coste for federal awards which are required to be reported under OMB areolar A-133 Section .510(a):
Condition found: In testing the MASS submission, it was noted for vacant unit turnaround time the average number of calendar days unite were in lease uptimedid not agreetosupporting docmnentation. In testing capital fund, it was noted that the Housing Authority did not submit accurate information conceming the total fimds authorized and obligated over 2 FFYs old, the total amounte expended during the fiscal year and the amount of capital funds expended on approved woric items not subject to budget revisions. In testing thereportconceming work orders, it was noted that the Housing Authority did not submit accurate information on the work orders issued and completed during thefiscalyear. The Housing Autiiority did not include AMP 12 in itetotelwork order coimt. It was also noted that the Housing Authority did not take into consideration the worker orders that were remaining outetanding at the fiscal year end. When testing a sample of work orders, it was notedtiiatthe Housing Authority is not consistent in tiie classification of an emergency and nonemergency work orders. On numerous work orders, the Housing Authority classified emergency work orders as nonemergency. Proper perspective for lodging the prevalence and consequences: The MASS information submittedtoREAC was reviewed along with supporting documentetion and a sample of twenty emergency work orders and thirty nonemergency work orders were selectedfromthe woric order reports. Possible asserted effect (raose and effect): Cause: The auditor was unable to determine the cause. Effect: The Housing Authority did not meet federalrequirementeconceming reporting. Recommendations to prevent future occurrences: The Housing Authority should establish procedurestoensure tiiat the MASS report submittedtoHUD is complete ^ d accurate. Additionally, procedures should be established to ensure that the work orders are classified and updated prcêrly in the Housing Authority's tracking system Reference # and titie: 09-F13 Test of Resident Files
Federal program & specific federal award Identification; ThefindmgrelatestotiieSection 8 Housing Oioice Voucherprograra, CFDA#14.871, fortiicFederal Award Year 2009receivedfromFederal Agency: Department of Housing and Urban Development. Criteria or specific regolrement; The Housing Authority must re-examine family income and composition at least once every 12 months and adjust the housing assistance payment (HAP) as necessary using the documentation from third party verifications (24CFR section 982.516). As a condition of admission or continued occupancy,tiieresident and other femily members must provide necessary infoimation, documentation, and releases for flie Housing Autiiority to verify income eligibility (24CFR sections, 5.230, 5.609, and 982.516). The Housing Aufliority is requiredtosubmit Form 50058 electronically to HUD each time the Housing Aufliority completes an admission, annualreexamination,interim reexamination, portability move in, other changes of unit for a femily. Several line items onfliisform must agree to documentetion infliefile(24CFR part 908 and 24CFR section 982.158). For both family income examinations and reexammations, the Housing Aufliority must obtain and document intiiefemilyfile third party verification of reportingfemilyincome, the value of assets, expenses related to deductionsfix>mannual income, and other factors tiiat affect tiie determination of acijusted income or mcome based rent (24CFR section 982.516). The Housing Authority must determine income eligibility and calculatetiicresident's rent payment using
62
The Housing Authority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for tbe Year Ended September 30,2009 PART ID Findings and qoestioned coste for federal awards which are reqoired to be reported under OMB Circular A-133 Section .510(a);
the documentation from third party verifications in accordance with 24CFRpart 5 subpart F (24CFR section 5.601 and 24CFR sections 982.201,982.515 and 982.516). Concfition found; The followuig excepticMis were noted in a test of forty-three resident files: * Ten files contained infomiation on the 50058 that could not be traced back to proper supporting documentation. Elevenfilescontained eirora in the income calculation.
Proper perspective for lodging the prevalence and consequences; The sample size consisted of forty-three Housing Choice Voucher Program resident files. Possible asserted effect (cause and effect); Caose: The auditor is unable to determine the cause. Effect: Scmie residentfilesmay not meet federal guidelines and intemal controls are wealKned. Recommendations to prevent future occurrences: The Housing Autiiority should estebUsh monitoring procedures to ensure that informaticm inresidentfilesis adequate, agrees totiieForm 50058, and that the income calculation is correct Reference # and titie: 09-F14 Rent Reasonableness Petermtnation
Federal program & specific federal award identification; Thefindingrelatestothe Section 8 Voucher program, CFDA#14.871, fortheFedCTal Award Year 2009receivedfiromFederal Agency: Department ofHousing and Urban Development. Criteria or specific requirement: Accordmg to 24 CFR 982.507,flieHousing Authority must determine if flie initial rent to owner is a reasonable rent befcnre the lease is approved imder the Section 8 Housing Choice Voucher program. In additicHi, if the landlord requeste a change in rent during the year, the Housing Authority must also determine if the new rent change is considered reasonable. In order to detemiine reasonable rent, the unit must be compared to rent for other conqiarable unassisted imite based on locaticm, quality, size, unit type, etc. The industry practice is to compare the unittoat least three unassisted unitetiiatfall under the same criteria and amenities; and the rent comparability should not be older than twenty-four months. Condition found; The following was noted in a test of twenty-five tenant files: Twofileshad rent reasonableness that were compared to unite m othra- zip codes. Threefileshad rent reasonablenessfliatwas not convicted until after flie tenant moved m. Onefilehad rent reasonablenesstiiatwas conq>ared to information tiiat was moretiian24 montiis old. Onefilehad rent reasonableness that was comparedtothe actual unit being requested for federal assistance. Fivefilesdid not contain the support for rent comparability. Threefileshad rent reasonablenesstiiatwere comparedtounitetiiatdid not fall undertiiesame criteria as the unit being requited for federal assistance. 63
The Hoasing Authority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART m Findings and questioned coste for federal awards which are required to be reported under OMB Circuhu* A-133 Section .510(a):
Proper perspective for Judging the prevalence and consequences: Tw^ty-fiveresidîtfilesre(|uiring new leases or changes in rent were selected for the test of rent reasonableness determination. Possible asserted effect (caose and effect); Cause; The Housing Authority does not have procedures in place for monitoring of conq)liance with rent reasonableness requiremente ofthe program. Effect: The Housing Authority may not meet all federal requiremente regarding rent reasonableness determmation. Recommendations to prevent future occurrences: The Housing Authcnrity should esteblish procedurestoensure that all staff is adequately trained andfemiliarwith all federal requiremente. They should also esteblish monitoring procedures to ensure the requiremente arc met Reference # and titie: 09-F15 HOS Inspections and Enforcement
Federal program & specific federal award Identification: Thefindingrelatestothe Section 8 Voucher program, CFDA#14.871, for the Federal Award Year 2009 receivedfixnnFederal Agency: Department ofHousing and Urban Development Criteria or specific requirement: Accordingto24 CFR 982.305,982.40, and 982.405,tiieHousing Autiiority is required to inspect tiie imite leased to a family at least annually to determine if the tmit meete Housing Quality Standards (HQS), and prepare a unit inspection report. For unite thatfoiltomeet HQS, the Housing Authority must require tiie owner (or femily, if applicable) to correct any life threatening deficiencies witiiin 24 hours after the inspection and all other HQS deficiencies within 30 d ^ after the inspection. If the deficiencies are not corrected witiiin the required timeframe, then the Housing Authority may provide an extension forfliecon:q)letion ofrepairsand tiie extension must be properly documented. If no extension is granted,flienthe Housing Aufliority must take prxni^ action to tominate the HAP contract. Condition found; In a test oftenfoiledinspections, itwas noted that twofileshad repans that were requiredtobe completed in 24 hours, however were not completed in accordance with HUD regulation. Proper perspective for lodging the prevalence and conseqoences; The sample sized consisted of twenty-three failed inspections selectedfix>mthe Housing Authority'sfoiledinfection log. Possible asserted effect (cause and effect); Cause: The Housing Authority does not have procedures in place for monitoring of compliance with HQS inspection requiremente of the program. Effect: The Housing Autiiority may not meet all federal requirementeregardmgHQS inspections.
64
The Housing Authority of the City of Lafayette Schedule of Findings and Questioned Coste As of and for the Year Ended September 30,2009 PART m Findings and questioned coste for federal awards which are required to be reported under OMB Circular A-133 Section .510(a):
Recommendations to prevent future occurrences: The Housing Aufliority should establish monitoring procedures to ensure that all unite are properly inspected, all deficiencies are completed timely, and any extensions are adequately documented Reference # and title; 09-F16 Nonfederal Disbursemente Paid With Federal Funds
Federal program & specific federal award identification: Thefindingrelatestothe Section 8 Housing Choice Voucher program, CFDA#14.871 and tiie Public and Indian Housmg program, CFDA # 14.850 for tiie Federal Award Year 2009 receivedfiromFederal Agency: Department ofHousing and Urban Development. Criteria or spedfic requirement: According to HUD guidelines, the Housing Authority should not spend any federal fundstowardsa non-federal program, utiles HUD has ^proved the transactions, even with the intent ofthe non-federal programreimbursingthe federal programs. Condition found: In review ofthe general ledger for both the Section 8 Housing Choice Voucher program and the Public and Indian Housing program, it was noted that the Housing Authority is paying for expenses that pertaintotwo ofthe Housing Authority's non-profit organizations, which the Housing Authority istiiegeneral partner. The totaled paid out duringtiiefiscalyear ended September 30,2009 is estimated to be approximately $39,000fixmithe Public and Indian Housing program and $52,000fromthe Section 8 Housing Choice Voucher program. Ouestioned Coste: The review of the general ledger of the Section 8 Housing Choice Voucher program flie questioned costs were estimated to be $52,000 and review ofthe general ledger ofthe Public and Indian Housing program the questioned coste were estimated to be $39,000. Proper perspective for iodging the prevalence and conseooences: Review of the general ledger history. Possible asserted effect (caose and effect): Cause: The auditor was imable to determine the cause. Effect: The Housing Authority made paymente that would not be considered allcfwable under the programs. Recommendations to prevent future occurrences: The Housing Authority should establish procedures to ensure that federal funds are not paying for non-federal programs.
65
The Housing Anthority of the City of Lafayette Summary Schedole of Prior Audit Findings September 30,2009 Reference # and tifle: 08-Fl Weak Accounting Controls
Year of Origination: This fmding originatedfiscalyear ended September 30,2007. Entitv-wide or program/department specific; This finding pertains entity-wide. Condition: (3ood intemal controls also require that bank reconciliations be performed timely, to ensure that unexplained differences are discovered andresolvedquickly. Additionally, information used to develop accounting records should be readily amiable for review and should mirror the accounting records. Periodicreviewsshould be performed to ensure that all transactionsrelatingtofliefiscalyear have beenrecordedin the correct accounte and entered in the correct amount. There should also be adequate review ofthe con^leteness of documente submitted to federal agencies. Effective intemal controls include voider disbursemente having original docimientation (invoices, receipts, ete.), purchase order when required by policy, proper approval, supported by evidence ofreceipt of goods or services, and ôuld be paid timely. In ordertomaintein good controls over coital assets, the Housing Authority seta policies and procedures ensuring all purchases, dispositicsis, and transfers are accounted for within the capital asset reporte. In addition, physical capital asset inspections should be performed at least annuallytoverify information on reporte agreetoassete as well as to ensure all assete are properly listed on reports. We tested ten charges to travel expense to verify that there were receipte to verify all charges and that all travel reimbursement vouchera were calculated correctly. We notedtiireec h a i ^ that did not have all receipts attached to verify charges. We also noted onereimbursementvoucher that was not calculated correctiy. We also testedfivecredit card statementetoverify that there was a detailed receipt for all charges madetothe credit card. Wc noted four statemente had charges that could not be traced to a detailed receipt that supported the charge. In a test of six bank reconciliations, we noted that two reconciliations were not pr^)aredtimelyand that two more did not indicate the date ofthereccmciliaticm.Therefore, for the latter two, we were unable to detomine whetiier tiie accounts were reconciled timely or not. Also, financial records arc not always maintainedtimelyand kept upto-date. hi a test of forty-six vendor payments, the following exceptions WCTC noted: Three paymente where purchase ordere were not used appropriately. One payment did not appear necessary. The Housing Autiiority is paying large late fee for paying ite electricity bill late. Two paymente where the charge was not supported by proper documentation, such as an original invoice. One payment whereflieamount paid did not matehtiiemvoices supportingtiiepayment Eight paymente where the invoice was not paid in a timely manner. Two paymente that were not bids were not sent out or quotes were notreceivedproperly. One payment that was for an unallowable activity. Four paymente that were not applied uniformly to federal and non-federal activities.
Also, in our testing offlieHousing Authority's accounte payable, we noted a payable for the enq)loyer*s porticHi of retirement benefite on behalf of the empl<>yees. After researching this issue further, we noted timt the Housing 66
The Housing Authority ofthe City of Lafayette Summary Schedule of Pri>r Audit Findings September 30,2009 Authority had set uptiiisaccotmte payable because it had not paid the employer's portion for eitiiertitefiscal year endmg September 30,2007 or 2008. The amounte owed byflieHousmg Authority are $26,709fiwPublic Housing and $19,270 for Section 8. In additton, Louisiana Revised Statute 24:513 A (5Xa)(i)requhesthat".. .audit shall be completed witiiin sbc months oftiieclose ofthe entity'sfiscalyear." The Houshig Autiiority's auditforthe year ended September 30,2009 was not completed within six months offlieclose ofthe Housmg Authority's year end. Corrective action planned: See current yearfinding09-Fl. Refierence # and tifle: 08-F2 Incentive Pav
Year of Origination: Thisfindingorigmatedfiscalyear ended September 30,2008. Federal program & specific federal award identification: Thefindingis entity-wide. Condition: Per the Housing Autiiority's policy,flieHousing Authority can pay an incentivetoemployees onty iftiie Housing Authority is ranked as a High Performer by REAC. The Housmg Authority paid the incentive even though they were not ranked as a High Performer by REAC. Accordingtotheir last ranking, they were ranked as a Standard Performer. Thetotalamount of uicentives paidfortiie audit yearrelatedto $9,450. Corrective action taken: Arevisionwas made to the hicentive Program Rewards and Recognition Critma as esteblished by the Housing Autiiority of the City of Lafeyette in ite policies and procedures. This finding is considered to be cleared. Reference # and titie: 08-F3 Davis-Bacon Act
Year of Origination: Thisfindingoriginatedfiscalyear ended September 30,2008. Federal prograna and specific federal award identificatiop: Thisfindingrelatesto the Capitel Fund Program, CFDA #14.872 fortiieFederal Award Years 2005,2006, and 2007, received from Federal Agency: Department of Housing and Urban Development Condition: Per HUD regulations, all constmction contracte over $2,000 should have prevailing wage clauses in tiie contract These clauses tell the minimum wages for each type of contru:tor. Also,fliework should not start until afiertiieccmtract date and bid date. In a test of three contracte that were covered under the Davis-Bacon Act, thefollowmgexceptions were noted. A carpenter was paid at a rate less than shown on the prevailing wage clause. Two contracte did not mentiontiieprevailing wage clauses m them. Work on two contracte was started before bothfliecontract date and the bid date.
Corrective action planned: See current year finding 09-F3. 67
The Housing Anthority of the City of Lafayette Summary Schedule of Prior Audit Findings September 30,2009 Reference # and title: 08-F4 Cash Management
Year of Origination: Thisfindmgoriginatedfiscalyear ended September 30,2008. Federal program and specific federal award identification: Thisfindingrelatestothe Capital Fund Program, CFDA #14.872fortiieFederal Award Years 2005,2006, and 2007,receivedfrom Federal Agency: Department of Housmg and Urban Development Condition: Per HUDregîlations,draw-downs from the LOCCS system should be spent onflierequested invoices wifliin three business days of receipt ofthe fimds. Also, there should be supporting documentation for all funds requested. In atestof sbc draw-downsfiomthe LOCCS system, we noted one payment that was not made within three business days of receipt ofthe requested fonds. We also noted one request that did not have supporting documentationforall items requested. Corrective action planned: See current yearfinding09-F4. Reference # and tifle: 08-F5 HUD Report 60002
Year of Origination: Thisfindmgoriginatedfiscalyear ended September 30,2007. Federal program & specific federal award ideptification: This finding relates to flie Capital Fund Program, CFDA #14.872, for Federal Award Years 2005,2006, and 2007; Public and Indian Housing, CFDA# 14.850, for Federal Award Year 2008; Housmg Choice Voucher Program, CFDA# 14.871, for Federal Award Year 2008 receivedfromFederal Agency: Department ofHousing and Urban Development Condition: Under special reporting requiremente 24 CFR sections 135.3 (a) and 135.90, HUDrequireseach Public and Indian Housing grantfliatis mvolved in development, operating, or modemization assistance to submit Form HUD 60002relatingtoSection 3 economic opportunities for low- and very low- income persons. ForfliePublic and Indian Housing Program, the Capital Fimd Program and the Housing Choice Voucher Program, HUD Report 60002 was not submitted to HUD as requhed. Corrective action planned: See current year fmding 09-F7. Reference # and title: 08-F6 Test of Resident Files
Year of Origination: Thisfindmgoriginated fiscal year ended September 30,2006. Federal program & specific federal award identification: This fmdingrelatesto the Disaster Voucher Program, CFDA #14.DVP, for the Federal Award Year 2008 received from Federal Agency: Department ofHousing and Uibfui Development Condition: The Housing Autiiority must submit information aboutfliefemityfliroughthe Disaster Information System. The mformation submitted must matehflieinformation contained in thefemily'sfile.
The Housing Authority of the City of Lafayette Summary Schedule of Prior Audit Findings September 30,2009 The following exceptions were noted in a test of twenty-five Disaster Voucher tenant files: Fivefileshad no proof of income reasonableness being tested. Ei^t files had a utilityreimbursementratethat could not be traced to the HAP register. Onefilehad a rent amount that was not changed totiienewrentamount. Onefilehad a tenant whose dependant's birth date and social security number was entered wrong or was not entered into the system.
Corrective action taken; Thisfindingwas considered cleared due to the Housing Authority had not received any DVPfimdingfor tiie fiscal year ended September 30,2009. Reference # and tifle: 08-F7 Test of Resident Files
Year of Origination; Thisfindingoriginatedfiscalyear ended September 30,2003. Federal program & specific federal award identification: This findingrelatesto the Public and Indian Housing program, CFDA #14.850, for Federal Award Year 2008receivedfiomFederal Agency: Department ofHousing and Urban Development. Condition; The Housing Authority must re-examine family income and composition at least once every 12 months and adjust the total rent as necessary according to 24 CFR sections 5.617 and 960.209. Changes in tiie rent calculationresultingfromthe re-examination should bereflectedin the rental regist^. The Housing Authority isrequiredtosubmit Form 50058 electronicallytoHUD eachtimethe Housing Authority has an admission or re-examination. The residentfilesmust contain the Form 50058 as well as the following pertinent information: social security cards, birth certificates, (or valid documitetion of birth dates) and third party verifications of income, child care expenses, and medical expenses. Also, residentfilesshould have HUD Form 9886 in thefileand form should be signed annually by all adulte in tbe household. The following exceptions were noted in a test of 25 resident files: Twofilesdid not ccmtain an aimual rec^fication in the file. Onefiledid not contein a copy of HUD 50058 intiiefile. Fourfilescontained information that could not be traced back to proper supporting documentetion. Onefiledid not have necessary items properly confirmed by an outeide third party. Onefilehad an error in the tenant's income calculation. One tenant's rental charge did not agree to the rent roll.
Corrective action planned: See current yearfinding09-FlO. Reference # and tifle: 08-F8 Tenant Participation Funds
Year of Origination: Thisfindingoriginatedfiscalyear ended September 30,2006.
69
The Housing Aothority of the City of Lafayette Summary Schedole of Prior Audit Findings September 30,2009 Federal program & specific federal award identification: The findingrelatesto the Pubic and Indian Housing Program, C3Â#14.850, for the Federal Award Year 2008 receivedfix)mFederal Agency: Department ofHousing and Urban Development Condition: When tenant participation funds are provided to a Public Housmg Authority, the Public Housing Authority must provide those funds to duly elected residoit coimcils. Funding provided by a Public Housing Authority to a duly elected resident council may be made only vmdci a writtm agreement betweentiiePublic Housing Authority and the resident council that includes a resident council budget. Public Housing Authority's are permitted to fimd $25, $ 15 per unit per year for unite represented by duly electedresidentcouncils forresidentservice. Of this $25, $ 15 per unit per year is provided to fund tenant participations activities. The agreement must require the local resident council to accoimt to the Public Housing Authority for the use of thefondsand permit the Public Housing Authority to inspect and audit the resident council's fmancial records related to the agreement (24 CFR sections 964.150). We noted that the Housing Authority receives the tenant participation funds and has a duly elected resident council. However, the $15 per tenant that the resident council should receive has not been transferred to a separate bank account in the resident council's name. In addition,flieresident council did not have a budget for the current fiscal year. Corrective action taken: In accordance to 24 CFR Sections 964.150, the Housing Authority has established an agreement between the PHA and the resident advisory board. The PHA is also providing accounting and programmatic guidance to assist in the empowerment ofthe council. The resident advisory board has the abilityand aufliority to spend the tenant participation funds. This finding is considered to be cleared. Reference # and tifle: 08-F9 Waiting List
Year of Origination: This fmding originated fiscal year ended September 30,2008. Federal program and specific federal award Identification: Thisfindingrelatestothe Public and Indian Housing prograin,CFDA# 14.850 for Federal Award Year 2008 receivedfiximFederalAgency: Department ofHousing and Urban Development. Condition: Applicante on thewaiting list should be selected in cjrderoftheirposition on thewaiting list AppUcante high on the waiting list should be offered the opportunitytomove in before applicante lower ontiiewaiting list than them. Also, all move-ins should be selected fiwn the waiting list, unless there is a documentedreasonshowing why they were chosen alâd of others. The waiting list should be purged on an annual basis. This servestoclear out old applicants, who have not responded or are no longer interested in the services offered by the Housmg Autiiority. In atestof twenty-five applicante near the top oftiiewaiting list, two applicante had no documentetion inttieirfile showing whether they responded to the letter sentfromtiieHousing Aufliority. Also, four oftiieselect appHcante, flie Housing Aufliority was unable to locate the applicant's file for testing.
70
The Housing Authority of the a t y of Lafayette Summary Schedule of Prior Audit Findings September 30,2009 In a test of ten move-ins, four tenante could not be traced back to the waiting list. Also, six of these ten move-ins were not selected in the correct orderfromthe waiting list. Whilereviewingthe waiting liste for the testing above, we notedttiatthe Housing Aufliority is not purging ite waiting list on an annual basis. Corrective action planned: See cim-cnt yearfinding09-Fll. Reference # and titie: 08-FlO Test of Resident Files
Year of Origination: Thisfindingoriginatedfiscalyear ended September 30,2003. Federal program & specific federal award Identification; The findingrelatesto the Section 8 Voucher program, CFDA#14.871, fortiieFederal Award Year 2008 receivedfix>mFederal Agency: Department ofHousing and Urban Development Condition: The Housing Authority must re-examine family income and composition at least once every 12 months and adjust the housing assistance payment (HAP) as necessary using the documentationfiromthird party verifications (24CFR section 982.516). As a condition of admission or continued occupancy, the residrait and other family membera must provide necessary information, documentation, and releases for the Housing Authority to verify income eligibility (24CFR sections, 5.230,5.609, and 982.516). The Housuig Authority is requiredtosubmit Form 5005 8 electronically to HUD each time the Housing Aufliority completes an admission, annual reexamination, interim reexamination, portabilitymove in, other changes of unit for a family. Several line items on this form must agree to documentation in thefile{24CFR part 908 and 24CFR section 982.158). For bofli family income exMninations and reexaminations, the Housing Authority must obtain and document in the family file third party verificaticm of reportingfemilyinctmie, the value of assete, expensesrelatedtodeductionsfromannual income, and other fectora that affect flie determination of adjusted income or income based rent (24CFR section 982.516). The Housing Autiiority must determine income eligibility and calculate the resident's rent payment using the documentaticm fiom third party verifications in accordance with 24CFR part 5 subpart F (24CI^ section 5.601 and 24CFDR sections 982.201,982.515 and 982.516). There should have adequate controls to ensure residente and landlords are not bemg duplicated within the database in which paymente are made from. The following excepticms were noted in a test of 48 resident files: Twofilesdid not have the resident application in the file. Sevenfilesdid not have an annual recertification in the file. Onefiledid not contain HUD Form 50058. Thirteen files contained information that could not be traced backtoproper supporting documentaticm. Threefilescontained infonnation that was not properly confirmed by an outeide third party. Foiu*filescontained errors in the income calculation. Two files did not contain HUD Form 9886, which is necessary to request mformation from outside third parties. Threefilesshowed no evidence of an annual inspection being performed during thefiscalyear under audit, Five tenant's contract rent did not agreetothe amount of rent shown on the HAP register, One tenant's contract rent was not between the thresholds of fair market rente. HUDregulationssay that contract rent should be between 90 and 110% ofthe fair market rent for tiiat area.
71
The Housing Aothority ofthe City of Lafayette Summary Schedule of Prior Audit Findings September 30,2009 Tenfilesshowed no evidence of a rent reasonableness being performed for the unit in thefiscalyear under audit One tenant's income was above the income levels set by HUD for the program's eligibility.
Corrective action planned: See current yearfinding09-F13. Reference # and titie; 08-Fll Utility Allowance
Year of Origination; This finding originated fiscal year ended September 30,2007. Federal program & specific federal award tdcntificatlom Thefindingrelatestothe Section 8 Voucher program, CFDA#14.87I, for the Federal Award Year 2008receivedfrom Federal Agency: Department ofHousing and Urban Development Condition: The Housing Authority is required to obtain utilityratesfiomutility companies providing services within the Housing Authorit/s district for all utility categories. Onceratesare obtained, the Housing Authority is required to review utility allowances on an annual basis to determine if there was a change of 10 percent or more for any utility category since the lasttimethe utility allowance schedule was revised according to 24 CFR 982.517. When the Housing Authority obtamed the utilityratesfiomthe utility companies, they did not obtaintiieactual rates. They only obtamed a statementfiomthe conqMmies saying that the rates did not increase by more than ten percent Therefore, they did not meet the requiremente set by HUD for the utility allowance study. Corrective action taken: The Housing Authority obtained utilityratesfiomall utility companiestodetermine proper calculaticms for all utility categories. Thisfindingis considered to be cleared. Reference # and titie: 08-Fl 2 Rent Reasonableness Determination
Year of Origination; Thisfindingoriginatedfiscalyear ended September 30,2007. Federal program & spedfic federal award identification; The fmdingrelatestothe Section 8 Voucher program, C F D ^ 14.871, for the Federal Award Year 2008receivedfromFederal Agency: Department ofHousing and Urban Development Condition; According to 24 CFR 982.507, the Housing Authority must determine if the mitial rent to owner is a reasonable rent before the lease is approved under the Section 8 Housing Choice Voucher program, hi addition, iftiie landlordrequestea change in rent during the year, the Housing Autiiority must also determine if the new rent change is considwi reasonable. In order to determine reasonable rent, the unit must be compared to rent for otiier comparable imassisted unite based on location, quality, size, unit type, ete. The industry practice istocompare tiie unittoat least three unassisted unite thatfellimder the same criteria and amenities; and the rent comparabiUty should not be older than 24 months. The following was noted in a test of twenty-five tenant files: t Nineteenfileshad rentreasonablenessthat was not dated or were compared to unite in other zip codes. Twofileshad rent reasonablenesstiiatwas not completed until nine months later, Onefilehad a rent that should not have been ruled to be reasonable.
72
The Housing Authority ofthe City of Lafayette Summary Schedule of Prior Andit Findings September 30,2009 Corrective action planned; See current year fmding 09-F14. Reference # and tifle; 08-F13 Waiting List
Year of Origination: This fmding originatedfiscalyear ended September 30,2007. Federal program & specific federal award identification: Thefindingrelatestothe Section 8 Voucher program, CFDA#14.871, fortiieFederal Award Year 2008 receivedfromFederal Agency: Department ofHousing and Urban Development Condition; The Housing Authority should establish and adopt written policies fortiieadmissicm of residente The policies should include requucments for applicants, selection of applicantefiromthe waiting list, setting of local preferences, and the acceptance or rejection of applicante (24 CFR 982.201 through 982.207). The Housing Authority should follow the same guidelinesforresident selection for all applicante. The waiting list should also be update and purged to ensure tiie waiting list is accurate and current. We noted that three tenante who were on the move-in list could not be traced to a waiting list. We also noted six tenante whose file stated they were moved in as a result on an emergency, but could not be traced to adequate documentation ofthe emergency. We also noted thatfivetenante who had ahready moved onto the program were still on the waiting list. Four of tiiese tenante moved in as hurricane evacuees. The Housing Authority's computer system was down at this time. The Housing Authority has since tried to correcttiiisproblem, but has not found a way to correct it, as of yet The fifUi tenant moved into a home in the Broussard area, but was still listed on the waiting list for the Lafeyette area. Corrective action taken: Policies are in place for selecticmfiomflliewaiting list. The Housing Autiiority is purging all waiting liste to insure the list is accurate and current. The Housing Authority has ensured all required documentation is received before any applicant is placed on the waiting list Thisfindingis consideredtobe cleared. References and title: 08-F14 HOS Inspections and Enforcement
Year of Origination: Thisfindingoriginatefiscalyear ended September 30, 2007. Federal program & specific federal award identification: ThefindingrelatestotiieSecticm 8 Voucher program, CFDA#I4.871, for the Federal Award Year 2008receivedfromFederal Agency: Department ofHousing and Urban Development Condition: According to 24 CFR 982.305,982.40, and 982.405,tiieHousing Autiiority isrequiredtoinspect tiie unite leasedtoafemilyat least annuallytodeteimine if the unit meete Housing (Quality Standards (HQS), and prepare a unit inspection report For unite that fail to meet HQS,tiieHousing Authority mustrequirethe owner (or family, if applicable) to correct any lifeflireateningdeficiencies wifliin 24 hours after the inspection and all other HQS deficiencies witiiin 30 days aftertiieinfection. Iftiie deficiencies are not corrected withintiierequired timefiame, then flie Housing Autiiority may provide an extension for the completion of repaira and flie extension must be properly documented. If no extension is granted,tiientiieHousing Aufliority must take prompt actiontoterminate tiie HAP contract.
73
The Housing Autiiority ofthe City of Lafayette Summary Schedule of Prior Audit Findings September 30,2009 The following exceptions were noted in a test of twenty-three tenant files: Eleven files had repaira that were not completed in acccjrdance witii HUD regulations. Fivefilesshowed that the Housing Authority did not take proper action when the repaira were not completely in atimelymanner. Onefilehad a failed inspection lett^ that was dated aftra- a passing infection report fbr the same tenant and unit.
Corrective action planned: See current yearfinding09-F15. Reference # and tifle: F8-F1S Test of Resident Files
Year of Origination: Thefindingoriginatedfiscalyear ended September 30,2008. Federal program and specific federal award identification: This finding relates to the Disaster Housing Assistance Program, CFDA #97.109, for the Federal Award Year 2008 received fiom Federal Agency: Federal Emergency Management Agicy passed through the Department ofHousing and Urban Development. Condition; Per FEMAregulations,each tenant should have a letter fromFEMAorbeable to tracedtoalistreceived from FEMAtodetemiine each tenante eligibility, the tenant's rent subsidy should be undertiiemaximum amount set by FEMA, subsidy paymente should bereducedby the FEMA schedule, inspections should be performed on tiie units, rent reasonable teste shoiUd be performed on the units, rent subsidy paymente should equal the contract amount in the contract signed by both the tenant and the landlord, and rent subsidy paymente should be tracedtothe DHAP register. The following exceptions were found in a test of tviênty-seven tenant files: Twofilesdid not have propw documentationfiomFEMA to provetiieireligibility for the program. Eight tenante were paid rent subsidy highCTtixanthe maximum amount set by FEMA. Sixtenantehad rent subsidies that were not prop^ly reduced to easetiieirtransition fiom the program. Bightfilesdid not have documentation of inspecticms being performed. Sevenfilesdid not have documentetion of rentreasonablenesstest being performed. Two tenante were paid rent subsidies that did not mateh their contract amount Six tenante were paid rent subsidies that could not be traced to the DHAP register. Corrective action planned: See current yearfinding09-F8.
74
The Housing Authority ofthe City of Lafayette Corrective Action Plan for Current-Year Findings and Questioned Coste September 30,2009 Reference # and tifle: 09-Fl Weak Accounthig Controls
Entitv-wide or program/department specific: Thisfindingpertains entity^wide. Condition: Good intemal controls also require that bank reconciliations be performed timely, to ensure that unexplained differences are discovered and resolved quickly. Additionally, infcmnation used to develop accounting records should be readily available forreviewand should mirrorflieaccounting records. Periodicreviewsshould be performed to ensure that all transacticmsrelatingtothefiscalyear have been recorded in the correct accoimte and entered in the correct amount. There should also be adequate review ofthe completeness of documents submitted to federal agencies. Effective intemal controls include vendor disbursemente having original dociunentation (invoices, receipts, ete.), purchase order when required by policy, proper ^>proval, supported by evidence of receipt of goods or sravices, and should be paid timely. Payroll records should have adequate written documentetion for extra condensation paid to employees. The audit report should be filed timely to flie Louisiana Legislative Auditors within six months after year end, accordance to Louisiana RS. 24:513A (5) (a) (i). We tested ten charges to travel expense to verify that there were receipte to verify all charges and that all travel reimbursement vouchers were calculated coirectiy. We noted arefundwas placed on a personal credit card raflier than paid back to the Housing Authority. We also tested ten credit card stetemente to vmfy that there was a deteiled receipt for all charges madetothe credit card. We noted two exceptions in which one dealt with food charges did not have an explanation as to why the charge was made and the business purpose. The othar exception dealt witii the Housing Authority was not adequately maintaining a log to sign in and out the credit card. Additionally, it was noted that after thetestof credit cards was convicted,tiieHousing Authcnity was going back and updating the credit card paymente in which {Hinting duplicate receipte off the intemet or having additional detail added to the receipt explaining the purpose of expenditures. In reviewingfivevendorfilestodetermine mvoices were original, it was noted twofilescontained copies of invoices and not the original. Inreviewingone month's disbursementetoensure all check infonnation agreedtoflicHousing Authority's system, it was notedfliatflieHousing Authority is bypassing the check signing policy, which requires manual signatures for all checks in excess of $5000. The Housing Authority will reduce payments or split the transaction in ordertobe able to process the check without a manual signature. In a test of eight bankreconciliations,we noted three reconciliations were not preparedtimely.We also noted that old outstanding checks were stillreflectedon the bank reconciliation in which check dates ranged fiom 2005 to the present and in total the balances were significant. In testing the general ledger transactions, it was notedtiiattiieHousing Aufliority had to make numerous journal entries after the trial balances were received additionallyflicHousing Authority resubmitted new trial balances after audit test work had been performed
75
The Housing Anthority ofthe City of Lafayette Corrective Action Plan for Current-Year Findings and Questioned Coste September 30,2009 In a test of seventy-six vendor paymente, the following exceptions were noted: Four paymente where purchase orders were not used appropriately, in which the purchase order/requisition was requested after the date of purchase. One payment did not appear necessary. The Housing Authority made a duplicate payment for one invoice. Four paymente wh% the charge was not supported by proper documentation, such as an original invoice. Fourteen paymente where the invoice was not paid m atimetymaimer, Two paymente that were no bids v/exe not sent out or quotes were not received properly. One payment that was for an unallowable activity. Five paymente that were not applied uniformly to federal and non-federal activities.
Also, in our testing ofthe Housing Authority's accounte payable, we noted the pilot calculation was not correct, in which the Housing Authority hadtoreviewthe utility expenses and post journal entries to correct the calculation. In testingfiveadministrative employees' salaries, it was noted that an employee is receiving extra condensation for additional work completed, however, this informaticm was in a form of a verbal agreement and no writtoi contract/agreement could bereviewedor tested. In addition, Louisiana Revised Statute 24:513A (5) (a) (i) requires that "...audite shall be completed within six months ofthe close ofthe entity'sfiscalyear". The Housing Autiiority^s audit for the year ended September 30,2009 was not completed within six months ofthe close ofthe Housing Aufliority's year end. Corrective action planned: The Agency has hired an Accounting Siêrvisor to oversee the operations of ite Accounting Dq)artment. With the addition of this individual, the Accounting Department will be better equipped at administering ite various policies such as the Daily Deposit, Accounte Payable Processing, Payroll and the Capital Fund Processing. Person responsible for corrective action: Mr. Walter Guillory, Executive Director The Housing Autiiority oftiie City of Lafeyette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date: Jime 1,2010. Reference # and title: 09-F2 Violation of State Cooperative Endeavor Agreement Telephone: 337-233-1327 Fax: 337-593-9942
Entttv-wide or program/department specific: Thisfindingis entity-wide. Condition: Per the Housing Authority's cooperative endeavor agreement, the Housing Authority was to receive fundmg from the Louisiana Department of Treasury for the purpose of obtaining design plans of an improved foimdation on affordable housing homestowithstand hurricane force winds. The schedule of professional services reflected only one vendor in whichtiieplans weretobe obtained fiom.
76
The Hoasing Authority of the City of Lafayette Corrective Action Plan for Corrent-Year Findings and Questioned Coste September 30,2009 Inreviewofthe fimds received, it was noted thattiieHousmg Aufliority did not spendtiiefondsaccordmgtoflie cooperative endeavor agreement The funds were used for rezoning coste that wait towards the St Antoine development, in which the Housmg Authority's nonprofit agency is a general partner. These fimds also were used as a partial pônent on a Hurricane Resistant home and notforthe design plans for an unproved foundation. Corrective action planned: The Agency will review all agreemente prior to making any disbursemente for expenditures associated with specific agreemente. This will ensure that all expenditures are in con^liance wifli the adopted agreement Person responsible for corrective action: Mr. Walter Guilloiy, Executive Director The Housing Autiiority oftiie City of Lafeyette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date: June 1,2010. Reference # and tifle: 09-F3 Davis-Bacon Act Telephone: 337-233-1327 Fax: 337-593-9942
Federal program and specific federal award identification: Thisfinduigrelatestothe Capital Fund Program, CFDA #14.872fortiieFederal Award Yeara 2006,2.007 and 2008 received fiom Federal Agency: Departeaent of Housing and Urban Development Condition: Per HUDregulations,all construction contracte over $2,000 should have prevailing wage clauses in the contract These clauses tell the minimum wagra for eachtypeof contractor. Also, the work should not start until afterfliecontract date and bid date. In a test of three contracte that were covered under the Davis-Bacon Act, thefollowingexceptions were noted. Two contracte did not mention the prevailing wage clauses in the contract Etowevor, the complete contract could not be provided to the auditor, altiiough this infomiation was requested numerous times. The Housing Authority did not receive any weekly certified p^rollsfromone contracted-and did not have all payrolls fiom anotiier contr^tor.
Corrective'actiop planned: The Agency has e n g a ^ the services of a new person to admmister ite Coital Fund Program. This new addition should improve the internal controls over the administration of the Capital Fund Program. This person will also be involved intiiebidding process and the managment of construction contracte. Person responsible for corrective action: Mr. Walter Guillory, Executive Director The Housing Aufliority oftiie City of Lafayette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date: June 1,2010. Telephone: 337-233-1327 Fax: 337-593-9942
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The Housing Aothority of the City of Lafayette Corrective Action Plan for Current-Year Findings and Questioned Coste September 30,2009 Reference # and tifle: 09-F4 Cash Management and Allowable Acttvltics/Coste
Federal program and specific federal award identiBcation: This findingrelatestothe Coital Fund Program, CFDA #14.872 fortiieFederal Award Years 2006,2007, and 2008 received fiom Federal Agency: Department of Housing and Urban Development. Condition: Per HUD rûlations, draw-downsfromthe LOCCS system should be spent on the requested mvoices within three business days of receipt ofthe fimds. Also, there should be supporting documentation for all fonds requested andtiiisdocumentation should in accordance with the capital fund budget In a test of tm draw-ctownsfiomflieLOCCS system, which included 33 vendor disbiusemente, the following was noted: Foiuteen paymente that were not made within three business days ofreceiptofthe requested fimds. Four paymente were not considered allowable activities in whichfliepayment was not in accordance witii flie coital fimd budget. Five paymente did not have adequate supporting documentation, therefore, could not determuie if the p^ment was in accordance with the bud^t Five paymente vfere not charged correctiy to the correct account per the budget. Corrective action planned: The Agency has engaged the services of a new person to admmistar ite Capital Fund Program. This person should help to nnprove the intemal controls over flie admmistration oftiie Capital Fund Program and allow the Agency to effectively implement ite current policy covering Capital Fund Disbursemente. Person responsible for corrective action: Mr. Walter Guilloiy. Executive Director The Housing Aufliority oftiie City of Lafeyette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date: June 1,2010. Reference # and tifle: 09-FS Procurement of Capital Funds Telephone: 337-233-1327 Fax: 337-593-9942
Federal program and specific federal award identificatiop: Thisfindingrelatestothe Capital Fund Program, CFDA #14.872 fertile Federal Award Years 2006,2007, and 2008 received fiom Federal Agency: Department of Housing and Urban Development Condition: Per HUDregulations,the Housuig Authority should establish procurement procedurestoensure bidding of projecte provided foil and open competition. Additionally, the procurement documentetion should support the rationale offorthe award to the vendor. hi testingfliebids, it was notedfliattiieHousing Autiiority awarded a vendor a contract for modifications of unite finhandicap accessibility. The Housing Autiiority could not provide documentation to substantiate that the project was advertised and providedfoiland open competition. Additionalty, the Housmg Authority approved a chan^ oider to the above mentioned contract for hurricane repairstobuildmgs, in uîch did not appeartobe within the scope of flie origmal contract
78
Tbe Housing Authority ofthe City of Lafoyette Corrective Action Plan for Current-Year Fiadiags and Questioned Coste September 30,2009 Corrective action planned: The Agency has established policies that ensure all projecte or large purchases are open to competition with all disclosed infomiation as it pertainstothe bids. Also, procechires were established to ensure (hat all approved change ordera are withm the scope ofthe original contract and do not bypass the procurement procedures. Person responsible for corrective action: Mr. Walter (juillory. Executive Director The Housing Aufliority oftiie City of Lafayette l i s Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date: June 1,2010. Reference # and tifle: 09-F6 Period of Availabilitv of Capital Funds Telephone: 337-233-1327 Fax: 337-593-9942
Federal program and specific federal award idenfification: Thisfindmgrelatestothe Capital Fund Program, CFDA #14.872 for the Federal Award Years 2007 received from Federal Agency: Department of Housing and Urban Development Coudition: Per HUDregulations,the Housing Authority must obligate at least ninety percent ofthe capital fund grant wifoin two yearsfiomthe effective date oftiie grant andfoltyexpended withinfouryearsfiomthe effective date ofthe grant In review ofthe capitel funds, it was noted that the Housing Authorhy did not have ninety percent offlie2007 capital grant fimds obligated by the obligation end date of September 12,2009. Corrective action planned: The Agency has established procedures to insure fliat all capital fimds are 90% obligated andfiillyexpended witiiin the required deadlines. Person responsible for corrective action: Mr. Walter Guillory, Executive Director The Housmg Autiiority offlie City of Lafeyette 115 Kattie Drive Lafayette, Louisiana 70501 Aoticinated completion date: June 1, 2010. Reference # and tifle: 09-F7 HUD Report 60002 Tel^hone: 337-233-1327 Fax: 337-593-9942
Federal program & specific federal award identification: This finding relates to tiie Capitel Fund Program, CFDA #14.872, for Federal Award Years 2006, 2007 and 2008; Public and hidian Housing. CFDA# 14.850, for Federal Award Year 2009; Housing Choice Voucher Program, CFDA# 14.871, for Federal Award Year 2009 receivedfiomFederal Agency; Department ofHousing and Urban Development
79
The Housing Anthority of the City of Lafayette Corrective Action Plan for Corrent-Year Findings and Qu^tioned Coste September 30,2009 Condition: Under specialreportingrequiremente 24 CFR sections 13S.3(a)and 13 5.90, HUD requu-es each Public and Indian Housmg grantfliatis involved in development, operating, or modemization assistance to submit Foim HUD 60002relatingtoSection 3 economic opportunities far low- and veiy low- income persons. For the Public and Indian Housing Program, Caphal Fund Program and the Housing Choice Voucher Program, HUD Report 60002 was not submitted to HUD as requued. Corrective action planned: The Agency has designated a coordmator to identify, gatherrelevantdata, and submit tiie HUD Report 60002 mformation requiredfiomthe Clapital Fimd Program, Public Housing and Housmg Choice Voucher Program timety and accuratety. We have also provided trainingto.ensuretiiatall employees overtiiefederal program are trained andfemiliarwith fecteral reportmg requiremente. Person responsible for corrective action: Mr. Walter Guilloiy, Executive Director The Housmg Aufliorhy offlie City of Lafeyette 115 Kattie Drive Lafeyette, Louisiana' 70501 Anticipated completion date: June 1,2010. Reference # and tifle; 09-F8 Test of Resident Files Telephone: 337-233-1327 Fax: 337-593-9942
Federal program & specific federal award identificaflon: This fmdingrelatestothe Disaster Housing Assistance Program, CFDA #97.109,fordie Federal Award Year 2009 receivedfiomFederal Agency: Department of Homeland Security passed through the Department of Housmg and Uiban Development Condition: The Housing Authority must submit information about the famity through tiie Disaster Information System (DIS). The mformation submitted must mateh the information contained m the residenf s file. Additionally, flie Housing Authority must submit information in the HUD system-Efforts To Opportunity (ETO) for case management date at a minunmn of a quaiterty basis. This information should be submitted more often iftiie resident is considered to be more in need and fells under Tiera II flirou^ IV. The Housing Autiiority is also required to perfcmn annual inspections and rent reasonableness procedurestoensure die tmit meete required housing standards and rent isreasonablem comparison to the area and amenities of unassisted unite. Thefollowingexceptions were noted in a test of forty-one DHAP tenant files: Ten exceptions were noted in which there was no DIS system print out in the file or letter fiom FEMA, therefore, unable to determine if resident was allowed to be under the DHAP program. Thirteen exceptions noted in which the Housmg Authority did not pay the correct amount Most ofthe exceptions dealt witiitiieHousmg Aufliority usmg onlytiieLafeyette Parish payment standard and FMR and not the information applicabletotiielocation ofthe unit This caused an overpayment inrentin most cases. Forty-one exceptions m which tiiere was no DIS printed out during flie fiscal year,flierefore,unable to determine ifflieinfonnation submitted during thefiscalyear end September 30,2009toHUD was accurate.
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The Housing Authority of the City of Lafiayette Corrective Action Plan for Current-Year Finding and Questioned Coste September 30,2009 Thfrteen exceptions noted in whichflieHousing Aufliority did not reducetiiepayment by $50 incremente per montii starting in May 2009 accordingtoflieprogram. It was noted thattiieHousmg Aufliority received a haidship affidavit fiom the môrity oftheresidentetested, yet were inconsistent as to HAP reductions. Thirty-nine exceptions were noted concemmg the amiual mspection ofthe unite under the program. It was noted that Housing Authority clid not complete inspections on all unite and some inspections were completed several months after p^mente were made, which was considered timety. Additionally, it was noted that some inspections hadfiiiled,yet there was no support infliefilereflectinga reinspection. Forty-one exceptions noted in which the Housing Authority did not adequatety complete a rent reasonableness on the unit It was also noted that on some ofthefiles,the rent reasonableness mfliefilewas fabricated. Twenty-one exceptions noted in which the Housing Authority did not adequately submit case management information in the BTO system. Somefilesdid not have any support and othera have very minimum time spent or support in the file. One exception noted in which the HAP contract was not signed by all parlies. One exception noted in which the amount per the contract infliefiledid not agree to the amount paid.
Questioned Coste: The sample size consisted of forty-one Disaster Housing Assistance Program resicfentfiles,which made up approximately 13 percent of the total population. The questioned costs, when extracted over the entire population, were estimated to be $31,600. Corrective <^y**ff" plnnnwl! The Agency has unplemented a monitoring procedure thatraisuresall participants meet the federal guidelmes of eligibility, ensurefliatthe mformation onflieD.I.S. is correct and current, each participant's folder consiste of their DIS printout, and is maintained in theirfileas an audit trail. We will verify that all inspections are completed prior to issuing a HAPtoany client or within a reasonable amoimt of time. Additicmally,flieagency has esteblished monitoring procedures (E.T.O.) to verify that allrelevantassessmente, updates, and contecfe are completed withm therequiredtimefiame.Evidence offliiswill be documented in the client's file. Person responsible for corrective action: Mr. Wafter Guillory, Executive Director The Housing Aufliority offlie Chy of Lafeyette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date: June 1,2010. Reference # and tifle: 09-F9 Contract Pavmente
Telephone: 337-233-1327 Fax: 337-593-9942
Federal program & specific federal award identification: Thisfindingrelatestothe Disaster Ifousing Assistance Program, CFDA #97.109, for the Federal Award Year 2009 receivedfiomFederal Agency: Department ofHomeland Security passedfliroughflieDepartment ofHousing and Urban Development
81
The Housing Authority ofthe City of Lafiiyette Corrective Action Plan for Current-Year Findings and Questioned Coste September 30,2009 Coudition: Good intemal controls require that the Housmg Authority have adequate oversi^t and monitoring of contract workera to ensure work performed is complete and acceptable. Additionally, good intemal controls requne that contracte on an hourly basis should have adequate documentation to substantiate the number of hours worked. Inreviewoftiie DHAP general ledger, it was noted fliat the Housmg Aufliority has hfred all workera under the program, with the exception of an accountant, as contract workera. The contracte between the worker and the Housing AuflicH-ity stipulatefliatworkera aretobe paid on an hcnirty basis. However, whenreviewingpaymente made by the Housmg Authority, it was noted that the Housing Authority is paying each worker on an eighty hour pay period without havmg the worker submit hourly reports. Additionally, through inquiry of housmg staff, it was noted that some ofthe workers are notrequiredtowork a normal workday and have other jobs in the community. Additionally, the some ofthe contract rates of pay do not appear to be reasonable when comparingto the program requir^nente and others paid within the Housing Authority staffing. Ouestioned Coste: Thereviewofthe vendor history ofthe Disaster Housmg Assistance Program the questioned coste were estimated to be $243,000. Corrective action planned: The A^ncy has established procedures and policies whereby ensuring that all contractors / employees are submitting a time card or an mvoicetosubstantiateflietotal amount oftimeworked on a bi-weekly basis. These procedures are monitored bi-weekly with each contractor / employee submitting the total amount oftimeworked, signature, and date for each invoice. The supervisor will review the mvoice / time card and ^prove payment after verifying the houra submitted. Person responsible for corrective action: Mr. Walter Guillory, Executive Duector The Housing Autiiority oftiie City of Lafeyette 115 Kattie Drive Lafforette, Louisiana 70501 Anticipated completion date: Jime 1, 2010. Reference # and tifle: 09-FlO Test of Resident Files Telephone: 337-233-1327 Fax: 337-593-9942
Federal program & specific federal award identificaflon: ThisfindingrelatestofliePublic and Indian Housing program, CFDA #14.850,forFederal Award Year 2009 receivedfiomFederal Agency: Department ofHousing and Urban Development Condition: The Housing Aufliority must re-examine family income and composition at least once every 12 months and adjust the total rent as necessary according to 24 CFR sections 5.617 and 960.209. Changes in the rent calculationresultingfromthe re-examination should be reflected in therentalregister. The Housing Aufliority is requiredtosubmit Form 50058 electronicallytoHUD each timeflieHousing Aufliority has an admission or re-examination. Tlieresidentfilesmust contain the Form 50058 as well asfliefollowingpertinent information: social security cards, birth certificates, (or valid documentetion of bulh dates) and third party verifications of mcome, child care expenses, and medical expenses. Also, residentfilesshould have HUD Form 9886 in thefileand form should be signed aimualty by all adulte in the household.
82
The Housing Authority ofthe City of Lafayette Corrective Action Flan for Current-Year FlncUngs and Questioned Coste September 30,2009 The following exceptions were noted in a test of forty resident files: One file did not ccmtain a perstmal declaration infliefilefor the re-exam tested. Fourfilescontained infonnation tiiat coitid not be traced back to proper supporting documentation. One file did not have necessary items properly confiimed by an outside third party. One file had an error in the tenant*s income calculation. Two tenant's rental charge did not agreetothe rent roll.
Corrective action planned: The Agency has established monitoring procedures to ensure that the residentfilesare adequate, consistent withform50058, and that all calculations of income are correct. Person responsible for corrective action; Mr, Walter Guillory, Executive Director The Housing Autiiority offlieOty of Lafeyette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date; June 1,2010. Reference # and tifle: 09-Fll Waiting List Telephone: 337-233-1327 Fax: 337-593-9942
Federal program and specific federal award Identification: This findingrelatestothe Public and Indian Housing program, CFDA# 14.850 for FederalAwardYear 2009 receivedfromFederalAgency: Department ofHousing and Urban Development Condition: Applicante on the waiting list should be selected in order of their positicm on the waiting list Applicante high onfliewaiting list should be offered the opportunitytomove in before applicants lower on the waiting list than them. Also, all move-ins should be selectedfromthe waiting list, unless there is a documented reason showing why they were chosen ahead of othera. In a test of thirty applicante near the tc^ ofthe waiting list, it was noted thatfiveapplicants were not given the correct preference code accordingtothe Housmg Authority's policy. Also, one ofthe selected applicante should have been removed off the waiting list because the applicant had moved into Public Housing in 2006. In a test of twelve move-ins, three move-ins woe not selected in the correct orderfiromthe vraiting list. Corrective action planned; Tlie Housing Authority has established procedures to make suretiiatall tenante are added to the waiting listtimelyand correctiy andtiiatall tenante are selectedfiromtiiewaiting list properly. Person responsible for corrective action: Mr. Walter Gruillory, Executive Director The Housing Aufliority offlie City of Lafayette 115 Kattie Drive Lafeyette, Louisiana 70501 Telephone: 337-233-1327 Fax: 337-593-9942
83
The H o o ^ g Aothority of the Oty of Lafayette Corrective Action Plan for Chirrent-Year Findings and Qoestioned Coste September 30,2009 Anticipated comnlôn date; June 1,2010. Reference # and tifle; 09-F12 MASS Sobmlssion
Federal program and specific federal award identification: Thisfindingrelatestothe Public and Indian Housing program, OTDA # 14.850 for Federal Award Year 2009 receivedfiomFedo-al Agency: Dq>artmit ofHousing and Urban Development. Condition: The Housing Authority is required to electrcmically submitflieManagement Assessment Subsystem (MASS) to the Real Estete Assessment Center (REAC). The critical information submitted reflects the unit tunmround, capital fund, work orders, aimual inspecticms and security. In testing the MASS submission, it was noted for vacant unit tumaroimd time the average number of calendar days unite were in lease up time did not agree to supporting documraitetion. In testing capital fimd, it was noted that the Housuig Authority did not submit accurate information conceming the total funds authorized and obligated over 2 FFYs old, thetotalamounte expended during thefiscalyear and the amount of capitalfondsexpended < approved m work items not subject to budget revisicms. In testing the report conceming work ordera, it was noted fliat the Housing Authority did not submit accurate informatics ontiiework ordera issued and completed during the fiscal year. The Housing Authcnity did not include AMP 12 in ite total work order count. It was also noted tiiat the Housing Autiiority did not take into ccmsideration the worker ord^s that were remaining outetanding at thefiscalyear end. When testing a sample of work ordera, it \ras noted that the Housing Aufliority is not consistent in the classificaticm of an emergraicy and nonem^gency work ordera. On numerous work ordera, the Housing Authority classified emergency wcH-k ordera as nonemergency. Corrective action planned: The Agency has established policies and procedures to ensure that all date is collected accurately and submitted timely. Also, all work orders will be classified properly / consistentiy either asroutineor emergency in the Ti Mast Work Ordw Program. Person responsible for corrective action; Mr. Walter (juillory, Executive Director The Housing Aufliority oftiie City of Lafeyette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completioo date: June 1,2010. Reference # and tifle: 09-F13 Test of Resident Files Telephone: 337-233-1327 Fax: 337-593-9942
Federal program & specific federal award Identification: ThefindingrelatestoflieSection 8 Voucher program, CFDM14.871, forflieFederal Award Year 2009receivedftomFederal Agency: Department ofHousing and Urban Development. Condition: The Housing Autiiority mustre-examinefamily income and composition at least once every 12 montiis and adjust the housing assistance payment (HAP) as necessary usingtiiedocum^tetionfiomtiiirdparty verifications (24CFR section 982.516). As a condition of admissicm or continued occupancy, the resident and other family
84
The Honing Authority of the City of Lafayette Corrective Action Flan for Corrent-Year Findings and Questioned Coste September 30,2009 membera must provide necessary informaticm, documentetion, and releases for the Housing Authority to verify income eligibility (24CFR sections, 5.230,5.609, and 982,516). The Housing Aufliority is required to submit Form 5005 8 electronicallytoHUD eachtimethe Housing Aufliority completes an admissicm, amiual reexamination, interim reexamination, portabilitymove m, other changes of unit for a family. Several line items on this form must agree to documentetion intiiefile(24CFR part 908 and 24CFR section 982.158). For both family income examinations and reexaminaticms, the Housing Autiicnity must obtain and document in the family file third party verification of reporting family income, the value of assets, expensesrelatedtodeductions from annual income, and other factora that affect the deteiminaticm of adjusted income or income based rent (24CFR section 982.516). The Housing Autiiority must determine income eligibility and calculate theresident'srentpayment using the documentation from third party verifications in accordance with 24CFR part 5 subpart F (24CFR section 5.601 and 24CFR sections 982.201,982.515 and 982.516). The following excepticms were noted in a test of forty-tiiree resident files: Ten files contained information on the 50058 that could not be traced back to proper supporting documentation. Eleven files contaiijed errora in the income calculation.
Corrective action planned; The Agency has ensured that policies and procedures are in placetoverify and validate that allresidentfilesare adequate, agrees to the Form 50058, and that their income calcidaticms are correct Person responsible for corrective action; Mr, Walter Guillory, Executive Director The Housing Autiiority offlieCity of Lafeyette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date: Jime 1,2010. Reference # and tifle: P9-F14 Rent Reasonableness Determination Telephone: 337-233-1327 Fax: 337-593-9942
Federal program & specific federal award identificaflon: Thefindingrelatestothe Section 8 Voucher program, CFDA#14.871, fortheFederal Award Year 2009 receivedfiomFederal Agency: Department ofHousing and Urban Development Condition; According to 24 CFR 982.507, the Housing Authority must determine if the initial rent to owner is a reasonable rent before the lease is approved under the Section 8 Housing Choice Voucher program. In addition, ifthe landlord requeste a change in rent during the year, the Housing Autiioritymust also determine iftiie new rent change is considered reasonable. In order to determine reasonable rent, the unit must be corrqiared to rent for other ccmiparable unassisted unite based on locaticm, quality, size, unit type, ete. The industry practice is to compare the unit to at least three unassisted unite that fall under the same criteria and amenities; and the rent comparability should not be older than twenty-four months The following was noted in a test of twenty-five tenant files: Twofileshad rent reasonablenessfliatwere compared to unite in oflier zip codes. Threefileshad rent reasonableness that was not completed until after the tenant moved in.
85
The Housing Authority ofthe Qty of Lafayette Corrective Action Plan for Current-Year Findings and (Questioned Coste September 30,2009 Onefilehad rent reasonableness that was compared to information that was more than 24 months old. Onefilehad rent reasonableness that was comparedtothe actual unit being requested for federal assistance. Fivefilesdid not contiun the support for rent comrparability. Threefileshad rent reasonableness that were compared to unite that did notfellunderfliesame criteria as flie unit beingrequestedfor federal assistance.
Corrective action planned: The Agency has ensured that all staff membera arereceivingadequate training and are familiar with all federal requiremente. Monitcning procedures have been established to ensure that all requiremente are being met. Person responsible for corrective action: Mr. Walter Cruillory, Executive Director The Housing Autiicffity offlie City of Lafayette 115 Kattie Drive Lafeyette, Louisiana 70501 Anticipated completion date: June 1, 2010. Reference # and tifle: 09-F15 HOS Inspections and Enforcement Telephone: 337-233-1327 Fax: 337-593-9942
Federal program & specific federal award Identification: Thefindingrelatesto the Section 8 Voucher program, CFDA#14.871, for the Federal Award Year 2009receivedfromFederal Agency: Department ofHousing and Urban Development. Condition; According to 24 CFR 982.305,982.40, and 982,405, the Housing Autiiority isrequiredto inspect flie unite leasedtoafemilyat least annuallytodetermine iftiie unit meete Housing (Quality Standards (HQS), and prepare a unit inspection report. For unite thatfeilto meet HQS, the Housing Authority mustrequirethe owner (orfemily,if applicable) to conect any life tiireatcning deficiencies wifliin 24 houra after the inspecticm and all oflier HQS deficiencies within 30 days after the inspection. If the deficiencies are not corrected wifliin the required timeframe, then flie Housing Authority may provide an extension for tiie completion of repaira and the extension must be properly documented. If no extension is granted,flienflieHousing Autiiority musttakeprongit actiontotaminate the HAJP contract. In a test of ten failed inspections, it was noted that twofileshad repaira that were required to be completed in 24 hours, however were not conqileted in accordance with HUD regulation. Corrective action planned: The Agency has established monitoring procedures to ensure that all unite are being properly inspected and all deficiencies are being completedtimely,and all extensions are adequately documented. Person responsible for corrective action: Mr. Walter (juillory. Executive Director The Housing Autiiority oftiieCity of Lafeyette 115 Kattie Drive Lafayette, Louisiana 70501 Anticipated completion date; June 1,2010. Telq)hone: 337-233-1327 Fax; 337-593-9942
86
The Housing Anthority of the City of Lafayette Corrective Action Plan for Current-Year Findings and Questioned Coste September 30,2009 Reference # and tifle; 09-F16 Nonfederal Dtebursemente Paid With Federal Funds
Federal program & spedflc federal award identification; Thefindingrelatestothe Secticm 8 Housing Choice Voucher program, CFDi^l4.871 and flie Public and hidian Housing program, CFDA# 14,850, for tiie Federal Award Year 2009 receivedfiromFederal Agency: Dqiartment of Housing and Urban Develc^ment. Condition: AccordingtoHUD guidelines, the Housing Authority should not spend any federalfimdstowardsa nonfederal program, imless HUD has approved the transacticms, even with the intent of the ncm-federal program reimburaing the federal programs. Inreviewof the general ledger for both the Section 8 Housing Choice Voucher program and the Public and Indian Housing program, it was noted that the Housing Authority is paying for expenses that pertain to two ofthe Housing Authority's non-profit organizaticms, which the Housing Authority is the general partner. Thetotaledpaid out during the fiscal year ended September 30, 2009 is estimated to be approximately $39,000 fiom the Public and Indian Housing program and $52,000 from the Section 8 Housing Choice Voucher program. Ouestioned Coste; The review of the general ledger of the Section 8 Housing Choice Voucher program the questioned coste were estimated to be $52,000 and review ofthe general ledger offlie Public and hidian Housing program the questioned coste were estimated to be $39,000. Corrective action planned; All cost associated with non-federal programs will be forwarded to the management company for payment. Person responsible for corrective action: Mr. Walter Guillory, Executive Director The Housing Authority ofthe City of Lafayette 115 Kattie Drive Lafeyette Louisiana 70501 Anticipated completion date: June 1,2010. Telephone: 337-233-1327 Fax: 337-593-9942
87
Lafeyette Housing Authority Status of Prior Year Management Letter Items
08-Ml
Annual Inspections
Comment: In a test of twenty-five inspections we noted three inspection forms where the information on the form did not agree with the inspection log. In addition, we noted eight infections where it appeared some of the infoimation was completed before the inspection took place. For seven oftiieseeight inspections, it appeared that tiie inspector had whitcd out some ofthe information and made a master copy of a passed inspection. Recommendation: The Housing Authority should esteblish procedurestoensure the information ofthe inspecticm forms mateh the inspection log. T h ^ should also establish procedures to ensure that the inspecticm forms are not altered and the Housing Autiiority has an adequate number of inspecticm booklete before flie annual inspection process begins. Management's Action Taken; The Housing Authority ordered sufficient forms to avoid the alteration of forms. This item is considered cleared 08-M2 Expenses for Component Unit
Comment: Uponreviewof the general ledger of the Housing Authority, we noted that the Housing Aufliority is paying expenses for their component unit, St. Antoine Gardens. This has resulted in the buildup of a large receiv^le on the Housing Authority's gwieral ledger. Recommendation; The Housing Authority should allow the component unit to pay all ofite own expenses. This would allow the component unit to better understand and control ite finances. Management's Response: This iton is a current year finding. Seefinding09-F16.
88

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44-45 46-47 48 49 50-65 66-74 75-87 88

ALLEN, GREEN & WILLIAMSON, LLP

Housing Authority ofthe City of Lafayette

REQUIRED SUPPLEMENTAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)

Rcgnired Supplemental Information Managemenf s Discussion & Anatysis (MD&A)

Notes to the Basic Financial Statements ^

3,349 140 8,992 583 13,064 846 140 2,087 3,073

Variance $ 3,541 1 (637) (583) 2,322 1.723 1 (128) 1,596

6,373 957 3.387 10,717

6,923 623 2,445 9,991

(550) 334 942 726

1.212 1,030 13,985 37 196 16.460

1.139 718 10,580 22 350 12,809

73 312 3,405 15 (154) 3,651

802 176 (31) 3 23 1,011 U36 18 3,238 23 3,261 390

The Housing Anthority ofthe City of Lafayette

BASIC FINANCIAL STATEMENTS

207,429 $ 133.106 280,713 0 896,418 0 160,263 64,927

2.756,903 $ 1,205,652 304,957 227,364 0 379,327 133.060 0

46,497 $ 0 2,839 0 90.000 0 0 0

3,010,829 $ 1,338.758 588.509 227,364 986,418 379,327 293,323 64.927

429.601 0 0 429.601 5.477.382 S

15.385.551 S _M79.P99 (CONTINUED)

31.639 0 0 425.000 456.639 2.310.271 0 0 0 194.172

98.866 0 , 0 1.859.750 1.958 fl1B

0 428.818 147,324 0 576.142 2.203.991

6,373,248 956,975 3.38B.7S8 10.71g.981 15.38fifiS1 S.

3.871.475 0 ra97.466^ 2.874.0Q9 ^^(pRtm

SECTION 8 0 $ 18,573 11.7.'>1.67e 11.770.249

0 $ 181.090 31.872 212.962

1,499,411 79,847 463.830 841,481 86,394 513,557 0 832.395 4.316.915

1,092,968 255,007 2,524 66,450 0 1,093,572 8.533.728 4.532

261,765 29 0 4.575 0 8,152 0 882 275.403

2,854,142 334.883 466.354 912,506 86,394 1,615,281 8,533,728 837.809 15.641.097

54,069 0 14.036 45.581 0 87,741 0

TOTAL OTHER PRIMARY GOVERNMENT COMPONENT UNfT

1,214,800 $ 1,900,422 14,312.919

(4,551,020) (1,643,367) (8.653.403) 0 0

CASH AND CASH EQUIVALENTS BEGINNING

.W1.980 & 307.884

CASH AND CASH EQUIVALENTS - ENDING

3,010.829 140.973 3.151.802

4.532 (161,581) 517 (128.077) 0 627.457 930,662 442,379 0 0 374 0 (19.916^

882 9.228 0 1,295 0 0 (3,460) 58,612 0 0 0 0 0

132,901 3,376 0 0 0 0 0 0 0 (3,555) 24,142 0

Total $ 343,678 3,076 19,173 163,178 59,404 $ 588,509

232,737 3,076 19,173 25,727 280.713

3,437 3,437 96,293

61,736 3353 65,089 S 4,856.655

123,948 6,706 130,654 $ (110,180)

185,684 10,059 195,743 $ 4.746,475

Vendms Litigation Claim HUD Accmed PILOT Wages payable Total

Balance, beginning Additions Deductions Balance, ending Due in one year

Note Pa^ble $ 435,924 435,924 7,106

Year Ending September 30, 2010 2011

2013 2014 2015-2019 2020

The Housing Authority ofthe City of Lafeyette

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$320,326 $100,455 $420,781

$223,959 $3,076 $34,505 $33,407 -$14,234 $0

Subtotal Program $1,160,785 $2,359,707 $856,975 $119,173 $40,518 $3,476,373

$2,359,707 $956,975 $119,173 $40,518 $3,476,373