HousingAuthorityoftheTownofHomer. AnualFinancialReport. Homer,Louisiana AsofandfortheYearEndedJune30,20

Transcription

1 HousingAuthorityoftheTownofHomer AnualFinancialReport Homer,Louisiana AsofandfortheYearEndedJune30,20

2 HousingAuthorityoftheTownofHomer TableofContents INDEPENDENTAUDITORS'REPORT FINANCIALSTATEMENTS ALFUNDTYPES ENTERPRISEFUNDS CombinedBalanceShet NotestotheFinancialStatements CombinedStatementofRevenues,Expenses,andChangesilFundEquity CombinedStatementofCashFlows Imlex SUPLEMENTALINFORMATION Notes FinancialDataSchedule CompensationPaidBoardMembers OTHEREPORTSREQUIREDBY BYOFICEOFMANAGEMENTANDBUDGET(OMB)CIRCULARNO.A-13 ReportonComplianceandonInternalControlOverFinancialReportingBasedonanAudit AND ReportonComplianceWithRequirementsAplicabletoEachMajorProgramand offinancialstatementsperformedinacordancewithgovernmentauditiuzstandards ScheduleofExpemh'mresofFederalAwards NotestotheScheduleofExpendituresofFederalAwards oninternalcontrolovercomplianceinacordancewith OTHERINFORMATION ScheduleofFindingsandQuestionedCosts ScheduleofPrior-YearFindingsandQuestionedCosts CorectiveActionPlanforCurent-YearFindingsandQuestionedCost ManagementLeterItems

3 2414FerandStret ALEN,GREN&COMPANY,LP CERTIFIEDPUBLICACOUNTANTS Monroe,LA P.O.Box6075 MargieWiliamson,CPA TimGren,CPA NeverUnderestlm~eTheValue~ TheCPA, Monroe,LA71201 Tol4re:(8) Phone:(318)08-42 w,alengmencpa.com Fax:(318) SylviaR.Falin,CPA SharonK.French,CPA ErnestL.Mien.CPA(Retired) ReginaR.Mekus,CPA BoardofComisioners INDEPENDENTAUDITORS'REPORT HousingAuthorityoftheTownofHomer Homer,Louisiana WewerengagedtoauditheacompanyingbalanceshetoftheHousingAuthorityoftheTownofHomer,Homer,Louisiana, asofandfortheyearendedjune30,20,andtherelatedstatementofincome,retainedearnings,andcashflowsfortheyear thenended.thesefinancialstatementsaretheresponsibilityofthehousingauthority'smanagemenṭ TheHousingAuthorityrecordswerenotcompleteandcontainedinadequacies.Auditproceduresdisclosedinadequaciesin theacountingrecordsincludinginadequatecontrolsandrecordkepingforcashandvariousotheracounts.these inadequaciesmadeitimpracticaltoaplysuficientauditprocedurestoenableustoexpresanopiniononthefairpresentation oftheacompanyingfmancialstatements. SincetheHousingAuthoritydidnotprovidesuficientrecordstosuportdisbursementsandwewerenotabletoaplyother auditingprocedurestosatisfyourselvesastothexpenses,thescopeofourworkwasnotsuficientoenableustoexpreș andwedonotexpresanopiniononthesefinancialstatementsorontheacompanyingsuplementalinformationscheduleṣ InacordancewithGovernmantAuditin~Standards,wehavealsoisuedareportdatedJuly13,201,onourconsideration ofthehousingauthority'sinternalcontroloverfinancialreportingandourtestsofitscompliancewithcertainprovisionsof laws,regulations,contractsandgrants.thatreportisanintegralpartofanauditperformedinacordancewithgovernment AuditingStandardsandshouldbereadinconjunctionwiththisreportinconsideringtheresultofouraudit. Also,theacompanyingOTHERINFORMATION,aslistedinthetableofcontents,ispresentedforpurposesofaditional analysisandisnotarequiredpartofthefinancialstatements.suchinformationhasnotbensubjectedtotheauditing proceduresapliedintheauditofthefinancialstatementsand,acordingly,wexpresnopiniononit. ALEN,GREN&COMPANY,LP Monroe,Louisiana July13,201 Member:AnledcanInstituteofCertifiedPublicAceontmlts,SocietyofLouisianaCertifiedPublioAcolmt~tsand AnlerieauInstituteofCertifiedPublicAcountantsDivisionforCPAFirms AlsoLocatedinBosierCity,Louisiana EqualOpiortunitvEmelover

4 HOUSINGAUTHORITYOFTHETOWNOFHOMER CombinedBalanceShet-AIFundTypes June30,20 CurentAsets Acountsreceivable Cashandcashequivalents ASETS Intedundreceivable Prepaiditemsandotherasets Inventory RestrictedAsets TotalCurentAsets Tenantdeposits FixedAsets Land,buildings,andequipment(net) TOTALASETS StatementA PROPRIETARY ENTERPRISE FUNDS- FUNDS $54,527 10,653 2,563 5, ,531,254 (CONTINUED)

5 HOUSINGAUTHORITYOFTHETOWNOFHOMER CombinedBalanceShet-AlFundTypes June30,20 LIABILITIES CurentLiabilities LIABILITIESANDFUNDEQUITY Acountspayable Intedundpayable Deferedrevenue TotalCurentLiabilities CurentLiabilitiesPayableFromCurentRestrictedAsets Depositsdueothers TotalCurentLiabilitiesPayableFrom CurentRestrictedAsets NoncurentLiabilities Compensatedabsencespayable TotalNoncurentLiabilities FUNDEQUITY TotalLiabilities ContributedCapital Retainedearnings: Unreserved TotalFundEquity TOTALIABILITIESANDFUNDEQUITY THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT StatementA PROPRIETARY ENTERPRISE FUNDS- FUNDS- $74, ,210 5,543 6,195 6,195 2, ,931 2,526 1,507,587 (46,090) 1,461,497 ~;I~65~428 (CONCLUDED)

6 OPERATINGREVENUES Dwelingrental Other Totalrevenues HOUSINGAUTHORITYOFTHETOWNOFHOMER OPERATINGEXPENSES Administration Utilities Ordinarymaintenance&operations Generalexpenses Depreciationandamortization Totaloperatingexpenses ncome(los)fromoperations ENTERPRISEFUNDS CombinedStatementofRevenues,Expenseș andchangesinfundequity FortheYearEndedJune30,20 NONOPERATINGREVENUES(EXPENSES) Interestearnings Federalgrants Totalnonoperatingrevenues(expenses) Netincomebeforeoperatingtransfers TRANSFERSFROM/(TO)OTHERFUNDS Transferin Transferout NETINCOME(Los) Depreciationonfixedasetsacquiredbycontributions ncrase(decrease)inretainedearnings StatementB $ 83,740 16,717 10, ,869 36,51 87,186 62, , ,580 (387,123) 2, , ,614 (178,509) 10,0 (10,0) (178,509) 105,143 $ (73,36) (CONTINUED)

7 HOUSINGAUTHORITYOFTHETOWNOFHOMER CombinedStatementofRevenues,Expenses, andchangesinfundequity ENTERPRISEFUNDS FortheYearEndedJune30,20 S~mentB FUNDBALANCESATBEGININGOFYEAR ASORIGINALYSTATED RETAINEDEARNINGSATBEGININGOFYEAR.ASRESTATED Cumulativefectofchangeinacountingprinciple $ 2,63 4,613 RETAINEDEARNINGSATENDOFYEAR CONTRIBUTEDCAPITALATBEGININGOFYEAR (46,090) 27~276 ASORIGINALYSTATED CONTRIBUTEDCAPITALATBEGININGOFYEAR CUMULATIVEFECTOFCHANGEINACOUNTINGPRINCIPLE 956,743 O ASRESTATED CapitalContributions 956,743 Depreciationtransferedfromretainedearnings 65,987 CONTRIBUTEDCAPITALATENDOFYEAR (105,143) FUNDEQUITY.ENDOFYEAR 1,507,587 (CONCLUDED) 1~461~497 THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT

8 HOUSINGAUTHORITYOFTHETOWNOFHOMER CombinedStatementofCashFlows FortheYearEndedJune30,20 ENTERPRISEFUNDS StatementC CASHFLOWSFROMOPERATINGACTIVITIES Operatingincome(los) Adjustmentstoreconcilenetincome(los)to netcashprovidedbyoperatingactivities $(387,123) Changesinoperatingcurentasetsandliabilities: Depreciation (Increase)Decreaseininterfundreceivables 105,143 (Increase)Decreaseinacountsreceivables (Increase)Decreaseinprepaiditemsand (47,796) (Increase)Decreaseininventory andotherasets 3,594 Increase(Decrease)inacountspayables Increase(Decrease)inintedundpayables 14,107~80) 58,673 Increase(Decrease)indepositsdueothers 47,796 NETCASHPROVIDED(USED)BY Increase(Decrease)indeferedrevenue 16, OPERATINGACTIVITIES CASHFLOWSFROMNONCAPITALFINANCINGACTIVITIES (190,151) Federalgrants NETCASHPROVIDED(USED)BYNONCAPITAL CASHFLOWSFROMCAPITALANDRELATED FINANCINGACTIVITIES 206,230 FINANCINGACTIVITIES Purchasefixedasets Contributedcapital (672,516) 65,987 NETCASHPROVIDED(USED)BYCAPITAL ANDRELATEDFINANCINGACTIVITIES $ (16,529) (CONTINUED)

9 HOUSINGAUTHORITYOFTHETOWNOFHOMER CombinedStatementofCashFlows FortheYearEndedJune30,20 ENTERPRISEFUNDS StatementC CASHFLOWFROMINVESTINGACTIVITIES Interestearnings NETCASHPROVIDED(USED)BYINVESTING $ 2,384 ACTIVITIES NETINCREASE(DECREASE)INCASHAND 2,384 CASHEQUIVALENTS CASHANDCASHEQUIVALENTSATBEGININGOFYEAR 1,934 CASHANDCASHEQUIVALENTSATENDOFYEAR 52,593 (CONCLUDED) 54t527 THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT

10 HousingAuthorityoftheTownofHomer FortheYearEndedJune30,20 NotestotheFinancialStatements NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES A.REPORTINGENTITY B.FUNDS C.MEASUREMENTFOCUSANDBASISOFACOUNTING D.BUDGETS E.CASHANDCASHEQUIVALENTS GeneralBudgetPolicies F.SHORT-TERMINTERFUNDRECEIVABLES/PAYABLES Encumbrances G.INVENTORYANDPREPAIDITEMS N.FIXEDASETS I.COMPENSATEDABSENCES NOTE2-DEPOSITSANDINVESTMENTS J.FUNDEQUITY NOTE3-RECEIVABLES K.USEOFESTIMATES NOTE4-FIXEDASETS NOTE5-ACOUNTSPAYABLE NOTE6-COMPENSATEDABSENCES NOTE7-COMITIvIENTSANDCONTINGENCIES NOTE8-CUMULATIVEFECTOFACHANGE1NACOUNTINGPRINCIPLE NOTE9-RISKMANAGEMENT NOTE10-INTERFUNDTRANSACTIONS

11 HousingAuthorityoftheTownofHomer NotestotheFinancialStatements NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIESTheacompanyingfinancialstatementsofthe FortheYearEndedJune30,20 HousingAuthorityoftheTownofHomer(theHousingAuthority)havebeanpreparedinconformitywithgeneralyacepted acountingprinciples(gap)asapliedtogovernmentalunits.thegovernmentalacountingstandardsboard(gasb)is theaceptedstandard-setingbodyforestablishingovernmentalacountingandfinancialreportingprinciples. A.REPORTINGENTITYHousingauthoritiesarecharteredaspublicorporationsunderthelaws(LSA-R.S.40:391)Of thestateoflouisianaforthepurposeofprovidingsafeandsanitarydwelingacomodations.thiscreationwascontingent uponthelocalgoverningbodyofthecityorparishdeclaringanedforthehousingauthoritytofunctioninsuchcityorparish. TheHousingAuthorityoftheTownofHomerisgovernedbyafive-memberboardofcomisioners.Themembers,apointed bythehonorablemayorofthetownofhomer,serveastageredtermofiveyears. TileHousingAuthorityhasthefolowingunits PHAOwnedHousing #ofunits GASBStatement14establishescriteriafordeterminingthegovernmentalreportingentityandcomponentunitsthatshouldbe 10 includedwithinthereportingentity.underprovisionsofthisstatement,thehousingauthorityisconsideredaprimary government,sinceitisaspecialpurposegovernmenthathasaseparategoverningbody,islegalyseparate,andisfiscaly independentofotherstateorlocalgovernments.asusedingasbstatement14,fiscalyindependentmeansthathehousing Authoritymay,withoutheaprovalorconsentofanothergovenlmantalentity,determineormodifyitsownbudget,setrates orcharges,andisuebondedebt. GASBStatementNo.14definesarelatedorganizationasanorganizationforwhichaprimarygovernmentisacountable becausethatgovernmentapointsavotingmajorityoftheboard,butisnotfinancialyacountable.acordingtothis definition,thehousingauthorityisarelatedorganizationofthetownofhomersincethetownapointsavotingmajority ofthehousingauthority'sgoverningboard.thetownisnotfinancialyacountableforthehousingauthorityasitcanot imposeitswilonthehousingauthorityandthereisnopotentialforthehousingauthoritytoprovidefinancialbenefito, orimposefmanciajburdenson,thetownofhomer.acordingly,thehousingauthorityisnotacomponentunitofthe financialreportingentityofthetownofhomer. CertainunitsoflocalgovernmentoverwhichtheHousingAuthorityexercisesnoversightresponsibility,suchastheschol board,parishpolicejury,otherindependentlyelectedparishoficials,andmunicipalitieswithintheparish,arexcludedfrom theacompanyingfinancialstatements.theseunitsofgovernmentareconsideredseparatereportingentitiesandisuefmuncial statementseparatefromthoseofthehousingauthority.inadition,theacompanyingfmancialstatementsdonotinclude variousresidentasociationswhicharelegalyseparatentities. B.FUNDSTheacanuntsoftheHousingAuthorityareorganizedandoperatedonthebasisofunds.Afundisanindependent fiscalandacountingentitywithaself-balancingsetofacounts.fundacountingsegregatesfimdsacordingtotheirintended purposeandisusedtoaidmanagementindemonstratingcompliancewithfinance-relatedlegalandcontractualprovisions.the minimumnumberofundsaremaintainedconsistentwithlegalmidmanagerialrequirements. ThefundsoftheHousingAuthorityareclasifiedasproprietary Proprietaryfundsacountforactivitiesimilartothosefoundintheprivatesector,wherethedeterminationofnetincomeis necesaryorusefultosoundfmancialadministration.proprietaryfundsdiferfromgovernmentalfundsinthatheirfocusis onincomemeasurement,which,togetherwiththemaintenanceofequity,isanimportantfinancialindicator. C.MEASUREMENTFOCUSANDBASISOFACOUNTINGProprietaryfundsareacountedforontheflowof economicresourcesmeasurementfocusandtheacrualbasisofacounting.underthismethod,revenuesarerecordedwhen earnedandexpensesarerecordedathetimetheliabilitiesareincured.withthismeasurementfocus,alasetsandal liabilitiesasociatedwiththeoperationofthesefundsareincludedonthebalanceshet.thehousingauthorityhaselected,

12 HousingAuthorityoftheTownofHomer FortheYearEndedJune30,20 NotestotheFinancialStatements pursuantogasbstatementno.20,toaplyalgasbpronouncementsandonlyfasbpronouncementsisuedbefore November30,1989. Fiduciaryfundsarecustodialinature(asetsequaliabilities)andonotpresentresultsofoperationsorhaveameasurement focus.agencyfundsareacountedforusingthemodifiedacrualbasisofacounting. D.BUDGETS GeneralBudgetPoliciesTheHousingAuthorityadoptedbudgetsforalfunds.ThebudgetsfortheComprehensive ImprovementAsistanceProgramsaremultiple-yearbudgets. HUDaprovesalbudgetsforalHUD-fundedprograms.Thebudgetiscontroledbyfundathefunctionlevel.Budgetary amendmentsrequireaprovalofthegoverningbody. Alapropriationslapseatyear-end. theaplicableapropriation,isnotemployed.however,outstandingpurchaseordersaretakenintoconsiderationbefore EncumbrancesEncumbranceacounting,underwhichpurchaseordersarerecordedinordertoreservethatportionof expendituresareincuredinordertoasurethataplicableapropriationsarenotexceded.inadition,themonthlybudget reportsarereviewedtoensurecompliancewiththebudget,andwherenecesary,revisionstothebudgetaremade. E.CASHANDCASHEQUIVALENTSCashincludesamountsindemandepositsandinterest-bearingdemandeposits. Formalbudgetintegration(withintheacountingrecords)isemployedasamanagementcontroldevice. Cashequivalentsincludeamountsintimedepositsandcashwithfiscalagent.Understatelaw,theHousingAuthoritymay depositfundsindemandeposits,interest-bearingdemandeposits,moneymarketacounts,ortimedepositswithstatebanks organizedunderlouisianalawendnationalbankshavingtheirprincipaloficesinlouisiana. F.SHORT-TERMINTERFUNDRECEIVABLES/PAYABLESDuringthecourseofoperations,numeroustransactions ocurbetwenindividualfundsforservicesrendered.thesereceivablesandpayablesareclasifiedasduefromotherfunds orduetotherfundsonthebalanceshet.short-terminterfundloansareclasifiedasinterfundreceivables/payables. G.INVENTORYANDPREPAIDITEMSAlinventoryitemsarevaluedatcostusingfirst-in,first-outmethod.Inventory isrecordedusingtheconsumptionmethod. Certainpaymentstovendorsreflectcostsaplicabletofutureacountingperiodsandarerecordedasprepaiditems. H.FIXEDASETSFixedasetsarerecordedathistoricalcostandepreciatedovertheirestimatedusefulives(excluding salvagevalue).donatedcapitalasetsarcrecordedatheirestimatedfairvalueathedateofdonation.estimatedusefulive ismanagement'sestimateofhowlongtheasetisexpectedtometservicedemands.straightlinedepreciationisusedbased onthefolowingestimatedusefulives: Siteimprovements Buildings 15years Oficeandmaintenancequipment(otherthancomputers) Computers Apliances 5years Vehicles 3years 7yeats LCOMPENSATEDABSENCESEmployesmayacumulateupto30hoursofanualeavewhichmaybereceivedupon 5years terminationoretirement.sickleavehoursacumulate,buthemployeisnotpaidforthemifnotusedbyhis/heretirement orterminationdate. 10

13 HousingAuthorityoftheTownofHomer NotestotheFinancialStatements FortheYearEndedJune30,20 J.FUNDEQUITYReservationsrepresenthoseportionsofundequitythatarenotapropriableforexpensesorlegaly segregatedforaspecificfutureuse. NOTE2-DEPOSITSANDINVESTMENTSAtJune30,20,theHousingAuthorityhascashandcashequivalents (bokbalances)totaling$54,527asfolows: Atyear-end,theHousingAuthority'scaryingamountofdepositswas$54,527includingrestrictedepositsof$6,195,andthe bankbalancewas$105,579.ofthebankbalance,$10,0wascoveredbyfederaldepositoryinsurance.$5,579was colateralizedwithsecuritiesheldbythepledgingfinancialinstitution'strustdepartmentoragentbutnotinthehousing Authority'sname(GASBCategory3). Eventhoughthepledgedsecuritiesareconsidereduncolateralized(Category3)undertheprovisionsofGASBStatement3, LouisianaRevisedStatute39:129imposesastatutoryrequirementOlthecustodialbanktoadvertiseandselthepledged securitieswithin10daysofbeingnotifiedbythehousingauthoritythathefiscalagenthasfailedtopaydepositedfundsupon demand. NOTE3-RECEIVABLESThereceivablesof$2,563,netofalowancefordoubtfulacountsof$2,896,atJune30,20 areasfolows: ClasofReceivables Tenants OthersTotal NOTE4-FIXEDASETSThechangesandbalancesinfixedasetsareasfolows: Land Siteimprovements Buildings Furnitureandequipment Constructioninprogres Total Balance July1, 19 $41,564 1,304,038 1,091,042 13, ,797 3,168,701 Aditions $26,79 59,38 626,187 Transfers $- Deletions $ (438,204) (438,204) Tota_.21 $1,6758 $2,563 Balance June30, 20 $41,564 1,304,038 1,091,042 40, ,981 3,356,684

14 Lesacumulatedepreciation: Siteimprovements Buildings Furnitureandequipment Total Fixedasets,net HousingAuthorityoftheTownofHomer NotestotheFinancialStatements FortheYearEndedJune30,20 715,171 91,857 13,259 1,720,287 $1,48,414 6,649 3,061 5,43 105,143 $521,04 NOTE5-ACOUNTSPAYABLEThepayablesatJune30,20,areasfolows Vendors Wages OtherTotal 781,820 1,024,918 18,692 1,825,430 $1,531,254 $54,392 3,287 16,45 $74,124 NOTE6-COMPENSATEDABSENCESAtJune30,20,employesoftheHousingAuthorityhaveacumulatedand vested$2,526ofemployeleavebenefits,whichwascomputedinacordancewithgasbcodificationsectionc60.these amountsarerecordedasliabilitiesinthefundsfi~omwhichpaymentwilbemade.folowingisasumaryofthecompensated absencetransactionsfortheyear: Balance,July1,19 Aditions Deductions Balance,June30,20 NOTE7-COMITMENTSANDCONTINGENCIES LitigationAtJune30,20,theHousingAuthorityisnotinvolvedinanylitigation. $2,526 $2,526 ConstructionPro[etsTherearecertainmajorconstructionprojectsinprogresatJune30,20.Theseprojectsarebeing fundedbyhud.fundsarerequestedperiodicalyasthecostisincured. GrantDisalowancesTheHousingAuthorityparticipatesinanumberofstateandfederalyasistedgrantprograms.The programsaresubjectocomplianceauditsunderthesingleauditaproach.suchauditscouldleadtorequestsfor reimbursementbythegrantoragencyforexpendituresdisalowedundertermsofthegrants.housingauthoritymanagement believesthatheamountofdisalowances,ifany,whichmayarisefromfutureauditswilnotbematerial. NOTE8-CUMULATIVEFECTOFACHANGEINACOUNTINGPRINCIPLEPriortothecurentfiscalyear, thehousingauthority'sboksweremaintainedonahud-preseribedbasisofacounting.journalentriesweremadeatyearendtoconvertogeneralyaceptedacountingprinciples(gap).thefundsofthehousingauthoritywerereportedas governmentalfund-typehatheauditreport.thistreatmentreportsusingthecurentresourcesmeasurementfocusandthe modifiedacrualbasisofacounting.forthecurentfiscalyear,hudrequiredthathehousingauthorityconvertfi'omthe HUD-prescribedbasisofacountingtoGAPwithuseofproprietaryfund-typefundsbeingpreferedbyHUD.Thistreatment reportsusingtheconomicresourcesmeasurementfocusandtheacrualbasisofacounting.thebeginingfundbalancewas restatedasfolows: Fundbalanceatbeginingofye~u,asoriginalystated CapitalasetsatJuly1,19 AcumulatedepreciationatJuly1,19 Write-ofofsoftcostsfordevelopment Miscelaneousadjustments Totalequity,restated $2,63 3,168,701 (1,720,287) (438,204) (48,854) 984,019

15 HousingAuthorityoftheTownofHomer FortheYearEndedJune30,20 NotestotheFinancialStatements NOTE9-RISKMANAGEMENTheHousingAuthorityisexposedtovariousrisksoflosrelatedtotorts;theftof, damagetoandestructionofasets;erorsandomisions;andnaturaldisastersforwhichthehousingauthoritycaries comercialinsurance. NOTE10-INTERFUNDTRANSACTIONS Duefrom/totherfunds Payable Amount ComprehensiveimprovementasistanceprogramGeneralfund $5,543 Interfundoperatingtransfers: In Out Generalfired Comprehensiveimprovementasistanceprogram $10,0$ 10,0 13

16 HOUSINGAUTHORITYOFTHETOWNOFHOMER FORTHEYEARENDEDJUNE30,20 FINANCIALDATASCHEDULE 1~ublio Lil~ltemO11410 Cash-Unrestdcted AcoumDeserJtsiml LOWRentPublicA~lst~ Hoasing~Compm Imptovem~lt hensino Publicand Cash-TenantSecudtyDeposits HousingPmgr~] 125 TolalCash $48,32 $0 HousingDrug Etiminafion I~din AcountsReceivable-Misealaneous 54,527 6,195 0 ProgramTot~$48,32 6,195 54, RentsDwelingRents AlowanceforDoubtfulAcounts-Other 84,571 4,571 8 doubtfulacounts prepaidexpensesandotherasets (2,896)02,563 (2,896)02, AlowatmeforObsoleteInventories InterprogramDueFrom TotalCurentAsets 10~ ,631 5,543 LandBuildings A4nfinistration LeaseholdImprovements , ,174 5,543 0 AcumulatedDepreciation ConstructionInProgres 80TotalNon-CurentAsets Depreciation 879,981 TotalAsets AcountsPayable<=90Days AcruedWage/PayrolTaxesPayable 719,904!,65,428 AcruedCompensatedAbsences AcountsPayable-OlherGoverlment TenantSecurityDeposits 54,3923,2872,526 54,3923,2872,526 DeferedRevenues InterprogramDueTo 350TotalNonenrentLiabilities TotalCurentLiabilities 16,456, ,38 5,543 16,456,195 30TotalLiabflifies ,931 5, NetHUDPHAContributions 138,385, TotalContributedCapital 627,606879,981 51TotalReservedFundBalance 627N06879, , Earnings 0 1,507, TotalEquity (46,090) TotalLiabilitiesandEquity $719,904$935, ,516879,981 (46,090) $1~5,428 1,461,497 ~COh.Q'INUED)

17 HOUSINGAUTHORITYOFTHETOWNOFHOMER PHA:Lk089WED:06/30/20 FORTHEYEARENDEDJUNE30,20 FINANCIALDATASCHEDULE Pl~blie Li~ItemNo. 703NetTenantRentalRevenue A~oumD~criptio~ LowRentPublicAsist~EJtmlnation Housing_C~mp~Public~d 704TenantRevenue-Other HousilxgProgramProgram hensiveindian 705TotalTenantRevenue $83,740 ImprovementHousingDrug HUDPHAGrants 85,49 1,759 $0$0 00 Total$83,7401,759 85,49 lnvestraentincome-unrestricted OtherRevenue TotalRevenue AdministrativeSalaries AuditingFes CompensatedAbsences Administrative OtherOpemfng-Athninistrative WaterElectricity GasOtherUtilitiesExpense LaborMaterialsandOther ContractCosts OixlinatyMaintenance InsurancePremiums PaymeatsinLieuofTaxes BadDebt-TenantRents 970Expenses TotalOperatingExpenses 974DepreciationExpense 90TotalExpenses,01OperatingTransfersIn,02OperatingTransfersOut 1,0Over(Under)Expenses,010TotalOtberFinancingSources(Uses) 10,0 10,00 00 (73,36) 026,73 105,143 10,0O ,580 (10,0)0 1,101CapitalOufaysEnterpriseFund 1,102Funds 1,103BeginthgEquity 65,987 1,104TransfersaldCorectionofErors (178,509) 10,0)0 1,12DepreciationAdBack 65,987 1,120UnitMonthsAvailable 23, NumberofUnitMonthsLeased 0 961,356 02,63 0(CONCLUDED) 105,

18 HousingAuthorityoftheTownofHomer COMPENSATIONPAIDBOARDMEMBERS General ThemembersoftheBoardofComisionersreceivecompensationof$40permeting.ThemembersoftheBoardof Comisionersareasfolows: GeraldineMozeke JamesRidley $40 BobyBurns IvyLewis BobieColema

19 TheCPA, NeverUndereslimaleTheValue= ALEN,GREN&COMPANY,LP CERTIFIEDPUBLICACOUNTANTS P.O.Box6075 Monroe,LA FerandStret Phone:(318)38-42 Monroe,LA71201 Fax:(318)38S-4064 Tol-fre:(8) w.alengrencpa.com ReportonComplianceandonInternalControlOverFinancial ReportingBasedonanAuditofFinancialStatements PerformedinAcordanceWithGovernmentAuditingStandard BoardofComisioners HousingAuthorityoftheTownofHomer Homer.Louisiana TimGren,CPA MargieWiliamson,CPA SylviaR.Falitl,CPA SharonK.French,CPA ReginaR.Mekus,CPA ErnestL.Alen,CPA(Retired) WewerengagedtoaudithefmancialstatementsoftheHousingAuthorityoftheTownofHomer,Homer,Louisiana,asof andfortheyearendedjane30,20,andhaveisuedoureporthereondatedjuly13,201.ourauditwastohaveben conductedinacordancewithgeneralyaceptedauditingstandardsandthestandardsaplicabletofinancialauditscontained in isuedbythecomptrolergeneraloftheunitedstates.however,becauseofinadequacies inthehousingauthority'sacountingrecords,wewerenotabletoaplytheforgoingstandards. Compliance AspartofatemptingtobtainreasonableasuranceaboutwhethertheHousingAuthority'sfinancialstatementsarefreof materialmistatement,weperformedtestsofitscompliancewithcertainprovisionsoflaws,regulations,contracts,andgrants, noncompliancewithwhichcouldhaveadirectandmaterialefectonthedeterminationofinancialstatementamounts. However,providinganopiniononcompliancewiththoseprovisionswasnotanobjectiveofourauditand,acordingly,we donotexpresuchanopinion.theresultsofourtestsdisclosedinstancesofnoncompliancethatarerequiredtobereported undergovernmentauditingstandardswhichisdescribedintheacompanyingscheduleofindingsandquestionedcostsas 0-F1,0-F2,0-F3,0-F4,0-F5and0-F6. Inplaningandperformingouraudit,weconsideredfueHousingAuthority'sinternalcontroloverf'mancialreportinginorder todetermineourauditingproceduresforthepurposeofatemptingtoexpresouropiniononthefinancialstatementsmadnot toprovideasuranceontheinternalcontroloverfinancialreporting.however,becauseofinadequaciesinthehousing Authority'sacountingcontrolsandrecords,wewereunabletoformanopinionontheHousingAuthority'sfinancial statementsandrelatednotes.inaditiontothematersrelatingtononcompliancewithcertainprovisionsoflaws,regulations, contractsandgrants,wenotedcertainmatersinvolvingtheinternalcontroloverfinancialreportinganditsoperationthatwe considertobereportableconditions.reportableconditionsinvolvematerscomingtouratentionrelatingtosignificant deficienciesinthedesignandoperationoftheinternalcontroloverfinancialreportingthat,inourjudgement,couldadversely afecthehousingauthority'sabilitytorecord,proces,sumarizeandreportfinancialdataconsistentwiththeasertionsof managementinthefinancialstatements.reportableconditionsaredescribedintheacompanyingscheduleofindingsand questionedcostsas0-f1,0-f2,0-f4,0-f5and0-f6; Amaterialweaknesisaconditioninwhichthedesignoroperationofoneormoreoftheinternalcontrolcomponentsdoes notreducetoarelativelylowleveltheriskthatmistatementsinamountsthatwouldbematerialinrelationtothefinancial statementsbeingauditedmayocurandnotbedetectedwithinatimelyperiodbyemployeshathenormalcourseofperforming theirasignedfunctions.ourconsiderationoftheinternalcontroloverfinancialreportingwouldnotnecesarilydiscloseal matersintheinternalcontrolthatmightbereportableconditionsand,acordingly,wouldnotnecesarilydisclosealreportable conditionsthatarealsoconsideredtobematerialweakneses.however,ofthereportableconditionsincludedabove,we consider0-f2,0-f4,0-f5and0-f6tobematerialweakneses, 17 AlsoLocatedinBosierCiy,Louisiana DIclnber:AmelcarthlstltutuofCeri/fiedl~tbloAecotmtants.SocietyofLou/sianaCertifiedPublicAcountantsand AmeriealInstituteofCertifiedPublicAceountmltsDivisionforCPAFins

20 ThisreportisintendedsolelyfortheinformationanduseoftheBoard,management,federalawardingagencies,andpasthroughentitiesandisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthesespecifiedparties. el ALEN,GREN&COMPANY,LP Monroe,Louisiana July13,201 18

21 "TheCPA, NeverUnder~UmateTheV~ue~ ALEN, 2414FerandStret Monroe,LA71201 GREN&COMPANY,LP CERTIFIEDPUBLICACOUNTANTS P.O.Box6075 Monroe,LA Tol-fre:(8) w.alengrencpa.com Phone:(318)38-42 Fax:(318) ReportonComplianceWithRequirementsAplicableto EachMajorProgramandonInternalControlOver ComplianceinAcordanceWith BoardofComisioners HousingAuthorityoftheTownofHomer Homer.Louisiana TimGren,CPA MarginWiliamson,CPA SylviaR.Falin,CPA SharonK.French,CPA ReginaR.Mekus.CPA ErnestL.Alen,CPA(Retired) Compliance WewerengagedtoaudithecomplianceoftheHousingAuthorityoftheTownofHomer,Homer,Louisiana,withthetypes ofcompliancerequirementsdescribedintheu.s.oficeofmanagementandbudget(omb)circularno.a-13compliance SuplementhatareaplicabletoeachofitsmajorfederalprogramsfortheyearendedJune30,20.TheHousingAuthority's majorfederalprogramsareidentifiedinthesumaryofanditors'resultsectionoftheacompanyingscheduleof'mdingsmad questionedcosts.compliancewiththerequirementsoflaws,regulations,contracts,andgrantsaplicabletoeachofitsmajor federalprogramsistheresponsibilityofthehousingauthority'smanagement.ouresponsibilityistoexpresanopinionon thehousingauthority'scompliancebasedonouraudit. WeconSuctedtourauditofcomplianceinacordancewithgeneralyaceptet~auditing3~tanSards;thestandardsap3ianbleto financialauditscontainedingovernmentauditingstandards,isuedbythecomptrolergeneraloftheunitedstates;and OMBCircularNo.A-13,AuditsofStates,LocalGovernments,andNon-ProfitOrganizations.ThosestandardsandOMB CircularNo.A-13requirethatweplanandperformtheauditobtainreasonableasuranceaboutwhethernoncompliance withthetypesofcompliancerequirementsreferedtoabovethatcouldhav~adirectandmaterialefectonamajorfederal programocured.anauditincludesexamining,onatestbasis,evidenceabouthehousingauthority'scompliancewiththose requirementsandperformingsuchotherproceduresasweconsiderednecesaryinthecircumstances.webelievethatouraudit providesareasonablebasisforouropinion.ourauditdoesnotprovidealegaldeterminationonthehousingauthority's compliancewiththoserequirements. Asdescribedinitem0-F7intheacompanyingScheduleofFindingsandQuestionedCosts,theHousingAuthoritydidnot complywithrequirementsregardingcashmanagement. Inouropinion,exceptforthenoncompliancedescribedintheprecedingparagraph,theHousingAuthoritycomplied,inal materialrespects,withtherequirementsreferedtoabovethatareaplicabletoitsmajorfederalprogramfortheyearended June30,20. ThemanagementoftheHousingAuthorityisresponsibleforestablishingandmaintainingefectiveinternalcontrolover compliancewithrequirementsoflaws,regulations,contractsandgrantsaplicabletofederalprograms.inplaningand performingouraudit,weconsideredthehousingauthority'sinternalcontrolovercompliancewithrequirementsthatcould haveadirectandmaterialefectonamajorfederalprograminordertodetermineourauditingproceduresforthepurposeof expresingouropiniononcomplianceandtotestandreportoninternalcontrolovercomplianceinacordancewithomb CircularNo.A-13. Wenotedacertainmaterinvolvingtheinternalcontrolovercomplianceanditsoperationthatweconsidertobereportable conditions.reportableconditionsinvolvematerscomingtouratentionrelatingtosignificantdeficienciesinthedesignor operationoftheinternalcontrolovercompliancethat,inourjudgment,couldadverselyafecthehousingauthority'sability toadministeramajorfederalprogrmninacordancewiththeaplicablerequirementsoflaws,regulations,contracts,andgrants. ThereportableconditionisdescribedintheacompanyingScheduleofFindingsandQuestionedCostsasItem0-F10. AIs0LocatedinBosierCity,Louisiana Member:AmericanInstituteofCertifiedPublicAcountants,SocietyofLouisianaCertifiedPublicAcountantsand AmetieanInstituteofCertifiedPubtioAcountantsDivisionforCPAFirms

22 Amaterialweaknesisaconditioninwhichthedesignoroperationofoneormoreoftheinternalcontrolcomponentsdoes notreducetoarelativelylowleveltheriskthatnoncompliancewithaplicablerequirementsoflaws,regulations,contractsand grantsthatwouldbematerialinrelationtoamajorfederalprogrambeingauditedmayocurandnotbedetectedwithinatimely periodbyemployesinthenormalcourseofperformingtheirasignedfunctions.ourconsiderationoftheinternalcontrolover compliancewouldnotnecesarilydisclosealmatersintheinternalcontrolthatmightbereportableconditionsand, acordingly,wouldnotnecesarilydisclosealreportableconditionsthatarealsoconsideredtobematerialweakneses. However,weconsiderthereportableconditiondescribedabovetobeamaterialweaknes. ThisreportisintendedsolelyfortheinformationanduseoftheBoard,management,federalawardingagencies,andpasthroughentitiesandisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthesespecifiedparties. ALEN,GREN&COMPANY,LP t_l_~ Monroe,Louisiana July13,201

23 ScheduleofExpendituresofFederalAwards HousingAuthorityoftheTownofHomer FEDERALGRANTOR/ FortheYearEndedJune30,20 PAS-THROUGHGRANTOR/PROGRAMNAME CFDAPas-through UnitedStatesDepartmentofHousingandUrbanDevelopment NumberGrantorNo. DirectPrograms PublicandIndianHousingComprehensiveImprovementAsistance PublicandIndianHousing Program OperatingSubsidy PublicHousingDrugEliminationProgram FW2026 Total FW2026 $79,457 75,987 $862,217 26,73

24 NotestotheScheduleofExpendituresofFederalAwards HousingAuthorityoftheTownofHomer NOTE1-GENERALTheacompanyingScheduleofExpendituresofFederalAwardspresentstheactivityofalfederal FortheYearEndedJune30,20 awardsprogramsofthehousingauthority.thehousingauthorityreportingentityisdefinedinnote1tothehousing Authority'sfinancialstatements.Federalawardsreceivedirectlyfromfederalagencies,aswelasfederalawardspased throughothergovernmentagencies,isincludedontheschedule. NOTE2-BASISOFACOUNTINGTheacompanyingScheduleofExpendituresofFederalAwardsispresentedusing theacrualbasisofacounting,whichisdescribedinnote1tothehousingauthority'sfinancialstatements. NOTE3-RELATIONSHIPTOFINANCIALSTATEMENTSFederalawardsrevenuesarereportedintheHousing Authority'sfinancialstatementsasfolows: Lowrentpublichousing Publichousingcomprehensiveimprovementasistanceprogram Publichousingdrugeliminationprogram $79,457 Total $862,217 75,987 26,73 NOTE4-RELATIONSHIPTOFEDERALFINANCIALREPORTSAmountsreportedintheacompanyingschedule agrewiththeamountsreportedintherelatedfederalfinancialreportsexceptforchangesmadetoreflectamountsin acordancewithgeneralyaceptedacountingprinciples. NOTE5-FEDERALAWARDSForthosefundsthathavematchingrevenuesandstatefimding,federalexpenditureswere determinedbydeductingmatchingrevenuesfromtotalexpenditures.inacordancewithhudnoticepih98-14,"federal awards"donotincludethehousingauthorityoperatingincomefromrentsorinvestments(orothernon-federalsources).in adition,debtserviceanualcontributionpaymentsmadebyhuddirectlytofiscalagentsforholdersofthehousingauthority bondsorforthehousingauthoritynotesheldbythefederalfinancingbank(fb),arenotconsideredwhendeterminingif thesingleauditact"federalawardsexpended"thresholdismetbythehousingauthorityinafiscalyear.inadition,the entireamountofoperatingsubsidyreceiveduringthefiscalyearisconsideredtobe"expended"duringthefiscalyear.

25 HousingAuthorityoftheTownofHomer ScheduleofFindingsandQuestionedCosts PARTI-SumaryoftheAuditors'Results FortheYearEndedJune30,20 i.thetypeofauditreportisuedwasadisclaimer i.therewerereportableconditionsrequiredtobedisclosedbygovernmentauditingstandardsisuedbythe i.therewereinstancesofnoncomplianceconsideredmaterial,asdef'medbythegovernmentauditingstandards, ComptrolerGeneraloftheUnitedStates. tothefinancialstatement. iv.therewerereportableconditionsrequiredtobedisclosedbyombcircularno.a-13 v.thetypeofreportheauditorisuedoncomplianceformajorprogramswasqualified. vi.theauditdisclosedauditfmdingswhichtheauditorisrequiredtoreportreaderombcircularno.a-13,section vi.themajorfederalprogramsare:.510(a). vi.thedolarthresholdusedtodistinguishbetwentypeaand'pypebprogramsasdescribedinombcircularno CFDA# ComprehensiveImprovementAsistanceProgram ix.theauditedoesnotqualifyasalow-riskauditeunderombcircularno.a-13,section.530 A-13,Section.520(b)was$30,0.

26 HousingAuthorityoftheTownofHomer ScheduleofFindingsandQuestionedCosts FortheYearEndedJune30,20 PARTH-Findingsrelatedtothefinancialstatementswhicharerequiredtobereportedinacordancewith GeneralyAceptedGovernmentAuditingStandards: Reference#andtitle:0-FI CashManagement ThisfindingapliestotheComprehensiveImprovementAsistanceProgram (CIAP)program,CFDA#14.852,contract#FW2026 Treasuryregulationsrequirethatrecipientsofederalfundsminimizethetimelapsed betwenreceiptandexpenditureofthefunds. Conditionfound:TheHousingAuthorityhadtwoClAPprogramsopenduringtheyear,the97and98programs.Fundsfor thesetwoprogramsweredrawndownfromhudusingthelineofcreditcontrolsystem(locs).thehousingauthority couldnotprovideaninvoiceorotherdocumentationoracanceledcheckforthefolowing$56,285.51indraw-downsunder LOCS: Amount Progranl Date Unsubstantiated /14/9 3/30/0 5/24/0 3/27/0 3/27/0 3/06/0 6/15/0 $15, , , ,0.0 10,0.0 5,0.0 Alofthedraw-downsfromLOCSweretracedtofile suposingexpensedocument~ionfortheperiodju~1,19fln'oughjune30,20.totaldraw-downsfurtheyeartoted $812,273. Cause:TheformerExecutiveDirectorgaveinstructionsonwhentodraw-downtheftmdsfromLOCSandhow muchtodraw-down.hehasincebenconvictedofmisapropriationofundsfromthehousingauthority. Efect:TheHousingAuthorityhasrecordedeferedrevenuefortheamountsunsubstantiated. Renmendationstopreventfutureocurences:Draw-downsundertheCIAPprogramshouldbemadeonlyforexpenses relatedtotheprogram.thexpenseshouldbepaiduponreceiptofthefunds.documentationshouldbemaintainedto substantiateachdraw-down. Reference#andtitle:0-F2 RecordRetention ThisfindingapliestoalfundsoftheHousingAuthority RecordshouldbemaintainedonfilebytheHousingAuthorityforatleastaperiodofthre yearsforbankrecordsandinvoices.originalcanceledchecks,invoices,depositslips,etc.aredocumentationfortheamounts reportedinthefinancialstatements. 24

27 HousingAuthorityoftheTownofHomer ScheduleofFindingsandQuestionedCosts PARTI-Findingsrelatedtothefinancialstatementswhicharerequiredtobereportedinacordancewith FortheYearEndedJune30,20 PersonelfileshouldcontainataminimumanI-9form,initialaplication,andocumentationforwitholdingsuchasaW-4 GeneralyAceptedGovernmentAuditingStandards: andanl-4.minutesofthemetingsoftheboardofcomisionershouldbemaintainedonfile.personelrecordsandthe minuteshouldbemaintainedpermanently. Conditionfound:Inperformingauditprocedures,sevaralinstanceswerenotedofmisingrecords.Depositslipsforthe monthofseptember19couldnotbefound.numerousinstanceswerenotedofmisingcanceledchecks.thejune20 bankreconciliationlistseveralchecknumbersasmising.neitheracheckvouchernoracanceledcheckwasavailablefor thesemisingchecks. Personelfilescontainedonlyleaverecordsandaninitialaplicationforemployment.MinutesfortheBoardmetingsheld inmarch,aprilandmay20couldnotbelocated. Cause:AfteryearenditwasdiscoveredthatheExecutiveDirectorhadmisapropriatedfundsbywritinghimself aditionalchecks.canceledchecksweretakenoutofthehousingauthorityoficebytheinspectorgeneral. Copieswerenotmadebeforethecheckswereremoved.SincethathnetheHousingAuthorityhasdiscovered otherecordsweremising. Efet:Recordsfortheperiodunderauditarenotcomplete. Procedureshavenotbenestablishedforpersonelfilemaintenance Recomendationstopreventfutureocurences:TheHousingAuthorityshouldestablishprocedurestoensurethatoriginal recordswilbemaintainedinthehousingauthorityofice.originalrecordsremovedfromtheoficeshouldbecopied.if posibletheoriginalshouldbemaintainedonfileandthecopyremovedfromtheofice. Procedureshouldalsobestablishedformaintenanceofpersonelfiles.Minuteshouldbemaintainedinapermanentfile. Reference#andtitle:0-F3 ThiscomentapliestothePublicHousingProgram. RevenueService. Quarterlypayrolreports,Form941s,arerequiredtobefiledeachquarterwiththeInternal Authoritybuthequarterlyreportswerenotfiled. Conditionfound:TheHousingAuthorityhasnotbenfilingForm941.TaxdepositsarebeingmadetimelybytheHousing June30,197 Thelastquarterlyreportfiledwasforthequarterended Cause:PersoneloftheHousingAuthoritywereunawareoftberequirementofilethequarterlyreports Efect:TheHousingAuthorityisdelinquentinfilingquarterlyreportswiththeInternalRevenueService

28 HousingAuthorityoftheTownofHomer ScheduleofFindingsandQuestionedCosts PARTI-Findingsrelatedtothefinancialstatementswhicharcrequiredtobereportedinacordancewith FortheYearEndedJune30,20 GeneralyAceptedGovernmentAuditingStandards: thepresent.futurereportshouldbefiledtimelywiththeinternalrevenueservice. QuarterlyreportshouldbefiledforthequartersafterJune30,197to contract#fw2026 ThisfindingapliesonlytothePublicHousingprogram,CFDA#14,850 documentationtoprovidesuportforthexpenses. PublicHousingexpenseshouldbedocumentedwithoriginalinvoicesorother Conditionfound:Documentationofdisbursementstoformeremployestotaling$86,87couldnotbeprovided.These paymentsateasfolows: KerySims JamesWiliams WiliamsTreService $72,074 1,361 Alpaymentstotheabovethrepayeswereselected 3,42 fortesting.nodocumentationcouldbeprovidedfortheamountsnotedabove Cause:TheformerExecutiveDirectorandaformermaintenancemployewereconvictedofmisapropriationof fundsafteryearend.itapearstheformerexecutivedirectortypedthechecksandsignedhisnameand forgedaboardmember'signature.thebankacountwasnotbeingreconciledsothecheckswerenot discoveredforaproximatelyayear. Recomendationstopreventfutureocurences:TheHousingAuthorityshouldimplementprocedurestoreviewfinancial Efect:Thetotalundocumentedpaymentsof$86,87isreportedasaquestionedcost. statementsmonthlytoensurethebankacountisbeingreconciledbythefeacountant. contract#fw2026 ThisfindingapliesonlytothePublicHousingProgram,CFDA# documentationtoprovidesuportforthexpenses Publichousingexpenseshouldbedocumentedwithoriginalinvoicesorother year.undocumentedpaymentstoformeremployesarediscusedinfinding0-f4,undocumentedpaymentstoformer Employes. Conditionfound:Originalinvoicesorotherdocumentationcouldnotbeprovidedfornumerousvendorpaymentsduringthe documentationcouldnotbeprovidedwas$6, Thetotalofpaymentstestedforwhichoriginal 26

29 HousingAuthorityoftheTownofHomer ScheduleofFindingsandQuestionedCosts PARTI-Findingsrelatedtothefinancialstatementswhicharerequiredtobereportedinacordancewith FortileYearEndedJune30,20 GeneralyAceptedGovernmentAuditingStandards: hasalreadybendisclosedinfinding0-f4,5vendorchekswereselectedfortesting.seventenofthesepaymentsor31% werenotsuportedbyanoriginalinvoiceorotherdocumentation. Excludingthepaymentstoformeremployes,which Cause:Twoformeremployeshavebenconvictedofmisapropriationofundswhichocureduringtheaudit period.recordsweremisplaceduringthistimeperiod.monthlyrecordationinthegeneraledgerdidnot Efect:Anopiniononthefinancialstatementscouldnotbeisueduetothelackofdocumentationfor ocurduringthistimeperiod. Recomendationstopreventfutureocurences:MonthlyfinancialstatementshouldbereviewedbytheBoardtoensure disbursements. thatreceiptsandisbursementsarebeingproperlyrecorded.intilechecksigningproces,onlycheckswithoriginal,adequate documentationshouldbesigned and14.854,contract#FW2026 ThefindingapliestoalfundsoftheHousingAuthority,CFDA# Criteriaorspecificrequirement:Stronginternalcontrolrequiresthatreceiptsandisbursementshouldberecordedmonthly endthebankstatementshouldbereconciledmanthly. Conditionfound:Thegeneraledgerwasnotmaintaineduringtheyearunderaudit.Thebankacountalsowasnot reconciled. Cause:TheExecutiveDirectorhadiscontinuedtheservicesofthefeacountantwhichmayhavebenprecipitated bythefactheexecutivedirectorwaswritinghnselfandanotheremployeunauthorizedcheksduringthe Efect:Inexcesof$80,0wasmisapropriateduringtheauditperiod. periodunderaudit. reviewedbytheboardonamonthlybasistoensurereceiptsandisbursementsarerecordedinthegeneraledgerandthebank statementisreconciled. Thebankreconciliationandmonthlyfinancialstatementshouldbe 27

30 HousingAuthorityoftheTownofHomer ScheduleofFindingsandQuestionedCosts PARTI-FindingsrequiredtobereportedunderOMBCircularNo.A-13 FortheYearEndedJune30,20 (CIAP)program,CFDA#14.852,contract#FW2026 ThisfindingapliestotheComprehensiveImprovementAsistanceProgram betwenreceiptandexpenditureofthefunds. Treasuryregulationsrequirethatrecipientsofederalfundsminimizethetimelapsed Conditionfound:TheHousingAuthorityhadtwoCIAPprogramsopenduringtheyear,the97and98programs.Fundsfor thesetwoprogramsweredrawndownfromhudusingthelineofcreditcontrolsystem(locs).thehousingauthority couldnotprovideaninvoiceorotherdocumentationoracanceledcheckforthefolowing$56,285.51indraw-downsunder LOCS: /1~9 Unsubstantiated Amount 3~0~0 5~4~0 $15, , ~7~0 10,90.0 3~6~ r 6/15~0 10,0.0 ~eqnences:alofthedraw-downsfromlocsweretracedtothe 5,0.0 suportingexpensedocumentationfortheperiodjuly1 $812, throughJune30,20.Totaldraw-downsfortheyeartotaled Cause:TheformerExecutiveDirectorgaveinstructionsonwhentodraw-downthefundsfromLOCSandhow Efect:TheHousingAuthorityhasrecordedeferedrevenuetoHUDfortheamountsunsubstantiated. muchtodraw-down.hehasincebenconvictedofmisapropriationofundsfromthehousingauthority. Recomendationstopreventfutureocurences:Draw-downsundertheCIAPprogramshouldbemadeonlyforexpenses relatedtotheprogram.thexpenseshouldbepaiduponreceiptofuefunds.documentationshouldbemaintainedto substantiateachdraw-down. contract#fw2026 ThisfindingapliesonlytothePublicHousingprogram,CFDA# documentationtoprovidesuportforthexpenses PublicHousingexpenseshouldbedocumentedwithoriginalinvoicesorother paymentsareasfolows: Conditionfound:Documentationofdisbursementstoformeremployestotaling$86,87couldnotbeprovided.These 28

31 HousingAuthorityoftheTownofHomer ScheduleofFindingsandQuestionedCosts PARTI-FindingsrequiredtobereportedunderOMBCircularNo.A-13 FortheYearEndedJune30,20 KerySims JamesWiliams WiliamsTreService $72, ,361 Properperspectivefurjudgingtheprevalenceandconsequences:Alpaymentstotheabovethrepayeswereselected fortesting.nodocumentationcouldbeprovidedfortheamountsnotedabove. Cause:TheformerExecutiveDirectorandaformermaintenancemployewereconvictedofmisapropriationof fundsafteryearend.itapearstheformerexecutivedirectortypedthechecksandsignedhisnameand forgedaboardmember'signature.thebankacountwasnotbeingreconciledsothecheckswerenot Efect:Thetotalundocumentedpaymentsof$86,87isreportedasaquestionedcost. discoveredforaproximatelyayear. statementsmonthlytoensurethebankacountisbeingreconciledbythefeacountant. TheHousingAuthorityshouldimplementprocedurestoreviewfmancial contract#fw2026 ThisfindingapliesonlytothePublicHousingProgram,CFDA# documentationtoprovidesuportforthexpenses. Publichousingexpenseshouldbedocumentedwithoriginalinvoicesorother Conditionfound:Originalinvoicesorotherdocumentationcouldnotbeprovidedfornumerousvendorpaymentsduringthe year.undocumentedpaymentstoformeremployesarediscusedinfinding0-f4,undocumentedpaymentstoformer Employes. documentationcouldnotbeprovidedwas$6, Thetotalofpaymentstestedforwhichoriginal hasalreadybendisclosedinfinding0-f4,5vendorcheckswereselectedfortesting.seventenofthesepaymentsor31% werenotsuportedbyanoriginalinvoiceorotherdocumentation. Excludingthepaymentstoformeremployes,which Cause:Twoformeremployeshavebenconvictedofmisapropriationofundswhichocureduringtireaudit period.recordsweremisplaceduringthistimeperiod.monthlyrecordationinthegeneraledgerdidnot Efect:Anopiniononthefinancialstatementscouldnotbeisueduetothelackofdocumentationforexpenses. ocurduringthistimeperiod. Recomendationstopreventfutureocurences:MonthlyfinancialstatementshouldbereviewedbytheBoardtoensure thatreceiptsandisbursementsarebeingproperlyrecorded.inthechecksigningproces,onlycheckswithoriginal,adequate docmnentationshouldbesigned. 29

32 ScheduleofFindingsandQuestionedCosts HousingAuthorityoftheTownofHomer PARTIl-FindingsrequiredtobereportedunderOMBCircularNo.A-13 FortheYearEndedJune30, and14.854,contract#FW2026 ThefindingapliestoalfundsoftheHousingAuthority,CFDA# andthebankstatementshouldbereconciledmonthly Stronginternalcontrolrequiresthatreceiptsandisbursementshouldberecordedmonthly Conditionfound:Thegeneraledgerwasnotmaintaineduringtheyearunderaudit.Thebankacountalsowasnot reconciled. Cause:TheExecutiveDirectorhadiscontinuedtheservicesofthefeacountant,whichmayhavebenprecipitated bythefactheexecutivedirectorwaswritinghimselfandanotheremployeunauthorizedchecksduringthe periodunderaudit. Efect:Inexcesof$80,0wasmisapropriateduringtheaudkperiod. reviewedbytheboardonamonthlybasistoensurereceiptsandisbursementsarerecordedinthegeneraledgerandthebank statementisreconciled. Thebankreconciliationandmonthlyfinancialstatementshouldbe 30

33 HousingAuthorityoftheTownofHomer FortheYearEndedJune30,20 OtherFinancialInformation Theinformationinthefolowingsectionconcernsmanagement'sactionsorintentionsconcerningprior-andcurent-yearaudit findingsandisrequiredbyu.s,oficeofmanagementandbudget(omb)cirenlarno.a-13.thisinformationhasben preparedbythemanagementofthehousingauthorityofthetownofhomer.mmagementaceptsfulresponsibility,as requiredbyombcircularno.a-13,fortheacuracyoftheinformation.thisinformationhasnotbenauditedbythe auditorsexceptasrequiredbyombcirculara-13section50(e),andacordingly,nopinionisexpresed.section50(0 requirestheauditortofolow-uponpriorauditfindings,perfomaprocedurestoasesthereasonablenesofthesumary scheduleofpriorauditfindingspreparedbydieaudite,andreport,asacurent-yearauditfindingwhentheauditorconcludes thathesumaryscheduleofpriorauditfindingsmaterialymisrepresentsthestatusofanypriorauditfmding.

34 ScheduleofPrior-YearFindingsandQuestionedCosts HousingAuthorityoftheTownofHomer June30,20 Conditionfound:Tenant'sacountsreceivableof$6,097atJune30,19,wasconsideredexcesive.Pertherentalregister thisfigurehadincreasedtoatotaldueof$8,764atseptember30,19. colectionpolicywhichisbeingenforced. TheBoardofCormnisianerswroteof$4,41asbadebt.TheBoardhasalsoadoptedanewrent Conditionfound:AsofDecember1,19,nofinancialstatementshadbenpreparedsincethosefortheJune30,19,year end. Seresponsetocurentyearfinding0-F6 Conditionfound:TheHousingAuthorityshouldreviewitsutilityalowancesanualyacordingtoHUDguidelines.Ifthere ismorethana10%changeintherates,hudrequiresthealowancesberevised. TheHousingAuthorityhascontractedwithsomeonetoupdateourutilityalowanceschedule Conditionfound:Eightenantfileswerereviewed.TwofthesetenantsmovedinduringtheyearendedJune30,19 Periodicinspectionswerenotinthesixfilesandmoveininspectionswerenotinthetwomoveins. ins.theinspectionsareplacedineachresidant'sfolder Inspectionsonalocupiedunitsareinprogres.Inspectionshavebencompletedonalnewmove- Conditionfound:Theinformationwasnotavailabletorecomputeindicator1,component#2,uniturnaroundf,g,andhaveragedaysofdowntime,readytimeandleaseuptime. DoeunlentationismaintainedforPHMAPindicators. 32

35 HousingAuthorityoftheTownofHomer CorectiveActionPlanforCurant-YearFindingsandQuestionedCost June30,20 Reference#andtitle:0-F1 CashManagement Conditionfound:Treasuryregulationsrequirethatrecipientsofederalfundsmininaizethetimelapsedbetwenreceiptand expenditureofthefunds. TheHousingAuthorityhadtwoCIAPprogramsopenduringtheyear,the97and98progranls.Fundsforthesetwoprograms weredrawndownfromhudusingthelineofcreditcontrolsystem(locs).thehousingauthoritycouldnotprovide aninvoiceorotherdocumentationoracanceledcheckforthefolowing$56,285.51indraw-downsunderlocs: /14/9 3/30/0 5/24/0 3/27/0 3/27/0 3/06/0 6/15/0 Amount Unsubstantiated $15, , , ,0.0 10,0.0 5,0.0 Aldraw-downsfromHUDwilbefiledwithacopyofthedocumentationforthexpense. Ms.SonjaHamilton,ExecutiveDirector HousingAuthorityoftheTownofHomer 329SouthFourth Homer.LA71040 Imediately Telephone:(318) Fax:(318) Conditionfound:Inperfornlingauditprocedures,severalinstaneswerenotedofmisingreords.Depositslipsforthe monthofseptember19couldnotbefound.numerousinstanceswerenotedofmisingcanceledchecks.thejune20 bankreconciliationlistseveralchecknumbersasmising.neitheracheckvouchernoracanceledcheckwasavailablefor thesemisingchecks. Personelfilescontainedonlyleaverecordsandaninitialaplicationforemployment.MinutesfortheBoardmetingsheld inmarch,aprilandmay20couldnotbelocated. Inthefuture,thefeacountantwilbesentcopiesofdocumentationforchecks.Theoriginal documentationwilbekeptonfile.alemployeswilberemindedoftheimportanceofrecords.achecklistwilbecompiled ofinformationrequiredforpersonelfiles. Ms.SonjaHamilton,ExecutiveDirector HousingAuthorityoftheTownofHomer 329SouthFourth Homer.LA71040 Telephone:(318) Fax:(318)