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HomeMy WebLinkAbout03/27/2007HOUSING AUTHORITY MEETING March 27, 2007 CITY COUNCIL CHAMBERS 5:00 P.M. A. Call Meeting to Order B. Roll Call C. Approval of the Minutes: February 27, 2007 D. Officers Reports E. Public Forum F. Un£nished Business G. New Business 1. Presentation & Acceptance of Audit 2, Election of Officers H. Other 1. Housing Trust Fund Presentation 1. Adjournment MINUTES OF SPECIAL MEETING WHEAT RIDGE HOUSING AUTHORITY February 27,2007 5:00 p.m. A. B. C D. E. CALL THE MEETING TO ORDER The meeting was called to order at 5:00 p.m. by Chair Brungardt in tbe City Council Chambers of the Municipal Building, 7500 West 29tb Avenue, Wheat Ridge, Colorado. ROLL CALL OF MEMBERS Chair Brungardt introduced City Council member, Lena Rotola, as a new member of the Housing Authority. Authority members present: Cheryl Brungardt Kent Davis Kathy Nuanes Lena Rotola Janice Thompson Also attending: Henry Wehrdt, Construction Manager Larry Nelson, Cornerstone Realty Betty Maybin, Cornerstone Realty Ann Lazzeri, Recording Secretary APPROVAL OF MINUTES: January 23 and February 9, 2007 It was moved by Janice Thompson and seconded by Kathy Nuanes to approve the minutes of January 23, 2007 as presented. The moHon passed unanimously. It was moved by Kent Davis and seconded by Janice Thompson to approve the minutes of February 9, 2007 as presented. The motion passed unanimously. OFFICER REPORTS There were no officer reports. PUBLIC FORUM There were no members of the public to address the Authority at this time. HOUSING AUTHORITY February 9, F. UNFINISHED BUSINESS Balance Sheet: There were no commenCs on the balance sheet submitted by the accountant for the Housing Authority. • Park Side: Lany Nelson reported that the price on the two remaining Park Side units had been reduced by $2,000. Parfet Units Larry Nelson reported that construction on the units at 3884 and 3894 Parfet is complete. Henry Wehrdt stated that he is awaiting a certificate of occupancy and final cleaning still needs to be done. As soon as those items are complete, the units will be placed on the market. The asking price will be $204,000 for the four-bedroom unit and $185,000 for the two-bedroom unit. Cheryl Brungardt suggested that marketing include an emphasis on energy saving features such as extra insulation, eta Marketing to teachers at schools in the area and Lutheran employees was discussed. There was discussion regarding the need to stage one of the units. A decision was made to stage the two-bedroom unit when grass is installed. Henry Wehrdt estimated that he should be able to have sod installed after March 15. If the units are not sold before, an open house will be held after sod is installed. Larry Nelson will see ifhe can get a sponsor to provide refreshments for the open house. Jefferson Countv Grant L,ena Rotola announced that the second $75,000 grant was approved. She commented that the Authority's presentation was very important in the County's decision to make the grant available. It also helped that Wheat Ridge Housing Authority and Jefferson County Housing Authority partner together. 46`h Place Propertv: Larry Nelson reported that he went through one of the units on 46`~' Place and was favorably impressed. These units are located on a cul-de-sac, back up to a park and have garages. He did not believe the Fenton property is a good prospect far the Authority and will continue to look for another two to four-unit property. G. NEW BUSINESS Chair Brungardt suggested conducting a joint training session with other housing authorities. She asked Authority members to think about possible subjects for a training session. The Colorado chapter of the National Association of Housing and Redevelopment (NAHRO) would provide a speaker. Jefferson County has indicated they would sponsor a training session. HOUSING AUTHORITY February 9, - Z - H. OTHER 1. 2007 Housing Conference Overview Chair Brungardt reported that she attended an Affordable Housing Conference last weekend at Bel Mar. There were national speakers and approximately 500 in attendance. The main subject concerned energy-efficient affordable housing. Grant money is available for °green" housing. I. ADJOURNMENT It was moved by Kathy Nuanes and seconded by Kent Davis to adjourn the meeting at 5:45 p.m. The motion passed unanimously. Cheryl Brungardt, Chair HOUSING AUTHORITY February 9, Ann Lazzeri, Recording Secretary - 3 - 0&(+ Swanhorst & Company LLC CcnifiW PubllcAccounwn6 March 5, 2007 Alan White Wheat Ridge Housing Authority 7500 W. 291h Avenue w'heat Ridge, Colorado 80215 Dear Alan: Enclosed is a drafr of the financial statements, trial balances and adjusting entries for the Wheat Ridge Housing Authority as of and for the year ended December 31, 2006. Please review and let us know of any changes or comments. We have also provided the representation tetter for your signature. Once you have completed your review of the financial statements, please sign the letter and fax it to our office at (720) 528-4307, or mail or email if that is easier. We will issue a final repor[ afrer receiving your comments. Please destroy this draft when you receive the final report. Sincerely, Swanhorst & Company LLC 8400 E. Crescent Parkway • Suite 600 • Greenwood Village, CO 80111 •(720) 528-4306 Fax: (720) 528-4307 WHEAT RIDGE HOUSING AUTHORITY FINANCIAL STATEMENTS December 31, 2006 ,~.4. ~1 hh . r !F 4* { ~y). ci:X TABLE OF CONTENTS [ndependent Auditors' RepoR B ' m ncial Statemeuts 4 v ~ e~#a ement of Net Assets S[atement of Revenues, Expenses and Changes in Net Assets Statement of Cash Ffows Notes to Financial Statements ~ 1_. k PAGE 2 3 4 5-8 B missioners Wh dge Housing Authority Wheat Ridge, Colorado INDEPENDENT AUDITORS' REPORT We have audited the accompanying basic financial statements of the Wheat Ridge Housing AuthoriTy as of and for the year ended December 31 6. These financial statements are the responsibility of [he Wheat Ridge Housing Authority's managemenL; onsibiliTy is to express an opinion on [hese financial statements based on our audit. 3f~ , We conducted our audit.jn~accordance with auditing standards generally accepted in the United States of America. Those standards require tha[ we plan and perform the audit to obtain reasonable assurance about whether the financial statements aze free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant es[imates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The Wheat Ridge Housing Authority hasnotpre managemenYsdiscussionandanalysistha[theGovemmental Accounting Standards Board has determt ssary to supplement, although not required [o be part of, the basic financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Wheat Ridge Housing Authority as of December 31, 2006, and the changes in its financial position and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. February 7, 2007 r . ~ .~u r$ , BASIC FINANCIAL STATEMENTS Y n $(3 +q¢ 05 - M .ti. , WHEAT RIDGE HOUSING AUTHORITY STATEMENT OF NET ASSETS December 31, 2006 ASSETS Cash ; Lo Pro ~ for Resale TOTAL ASSETS LIABILIT[ES Accounts Payable Accrued Liabili[ies Retainage Payable TOTAL LIABILITIES s»Es NET ASSETS Unrestricted TOTAL LIABILITIES AND NET ASSETS 2006 2005 $ 753,367 $ 222,664 12,169 12,443 525,081 1,010,671 $ 1,290,617 $ 1,245,778 $ 41,055 $ 7,105 979 - 3,177 35,610 45,211 42,715 1,245,406 1,203,063 $ 1,290,617 $ 1,245 778 yl i The accompanying notes are an integcal part of the financial sta[ements. 2 WHEAT RIDGE HOUS[NG AUTHOR[TY STATEMENT OF REVENUES. EXPENSES AND CHANGES IN NET ASSETS Year Ended December 31, 2006 OPE , ENUES Sa ent Property Cos es Rental TOTAL OPERATING REVENUES OPERATING EXPENSES Cbsing Costs General and Administrative Repairs and Maintenance Utilities ' Homeowners Dues City Reimbursemen[ TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATMG REVENUES In[eres[ Income INCOME (LOSS) BEFORE CAPITAL CONTRI a. CAPITALCONTRIBUTIONS , <`s Grants CHANGE iN NET ASSETS NET ASSETS, Beginning NET ASSETS, Ending r 2006 2005 $ 977,800 $ 242,000 (841,765) (220,783) 9,000 13,414 145,035 34,631 79,419 18,780 15,392 7,046 10,095 2,041 1,592 2,072 2,989 1,927 4,112 2,432 113,599 34,298 31,436 333 10,907 952 42,343 1,285 - 75,000 42,343 76,285 1,203,063 1,126,778 $ 1,245,406 $ 1,203,063 The accompanying no[es are an integral part of [he financial statements. 3 WHEAT RIDGE HOUSMG AUTHORITY STATEMENT OF CASH FLOWS Increase (Decrease) in Cash Year Ended December 3 1 ,2006 CASH F OM OPERATING ACTNITIES Proles of Investment Property Pur ~ Rehabilitiation of Investment Property Cash eceived from Tenants Cash Payments to Vendors and Suppliers Net Cash Provided (Used) by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTN(TfES Loan Repayments from Homeowners Net Cash Provided by NoOAPND "ncing Activities CASH FLOWS FROM CA RELATED FINANC[NG ACTIVITfES Gran[ Proceeds Net Cash Provided by Capital and Related Financing Activities CASH FLOWS FROM INVESTRJG ACTIVITIES In[eres[ Income Ne[ Cash Provided by Investing Activities NET INCREASE (DECREASE) IN CASH w ,0', CASH, Beginning CASH, Ending RECONCII,IATION OF OPERATING MCOME (LOSS) TO NET CASH PROV[DED (USED) BY OPERATING ACTIVITIES OperaGng [ncome (Loss) Adjustments to Reconcile Operating [ncome (Loss) to Net Cash Provided (Used) by Operating Activities Changes in Assets and Liabilities Rela[ed [o Operations Property Held for Resale Accounts Payeble Accrued Liabilities Retainage Payable Net Cash Provided (Used) by Operating Activities 2006 2005 $ 977,800 $ 242,000 (388,608) (425,534) 9,000 13,414 (78,670) (40,080) 519,522 (210,200) 274 265 274 265 75,000 75,000 10,907 952 10,907 952 530,703 (133,983) 222,664 356,647 $ 753,367 $ 222,664 $ 31,436 $ 333 485,590 (240,361) 33,950 (1,012) 979 (4,770) (32,433) 35,610 $ 519,522 $ (210,200) hr,s° The accompanying notes are an integral part of the financial statements. 4 WHEAT RIDGE HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2006 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Wheat Ridge Housing Authoriry (the "AuthoriTy") have been ' prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Govemmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Authority's accounting policies are described below. Reporting Entity In accordance with governmental accounting standards, the AuthoriTy has considered the possibility of inclusion ditional entities in its financial statements. The definition of the reporting entity is based " y on financial accountability. The Authority is financiaily accountable for organ~ * at make up its legal entiTy. [t is also financially accountable for legally separate organi " ns if Aothority officials appoint a voting majority of the organization's governing body and either it is able to impose its will on that organization or there is a potential for benefits [o, or [o impose specific financial burdens on the Authority. The Authority may also be financially accountable for organiza[ions that aze fisca(ly dependent upon it. Based on the application of this criteria, the Authority does not include additional organizations within its reporting entity. Measurement Focus, Ba ounting, and Financial 5tatement Presentation The Authority uses an entorise fund [o accoun[ for its operations. Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that costs of providing goods or services to the general public on a wntinuing basis be financed or recovered primariiy through user charges. The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when the Iiability is incurred, regardless of the timing o d cash flows. Grants and similar items are recognized as revenue as soon as all eligibili - ements imposed by the provider have been met. ~ Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the financial statements to the extent that those standards do not conflict with or contradict guidance of the Govemmental Accounting Standards Board. Governments also have the optron of following subsequent private-sector guidance for their enterprise funds, subject to this same limitation. The Authority has elected not to follow subsequent private-sector guidance. Enterprise funds distinguish operating revenues and expenses from no #~,erating items. Operating revenues and expenses generaily result from providing services and{~,~~ing and delivering goods in connection with the Authority's principal ongoing operatioperating expenses include the cost of sales and services, administra[ive expenses, and depreciation on capi[al assets. All revenues and expenses not meeting this defini[ion are reported as nonoperating revenues and expenses. WHEAT RIDGE HOUSING AUTHORITY NOTES TO FINANC[AL STATEMENTS December 31, 2006 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) r Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) ~ FW When both restricted and unrestricted resources are available for use, it is the Authority's practice to use restricted resources first, then unrestricted resources as they are needed. Proper[y Held For Resale Property held for resale includes the acquisition and rehabilitation costs of investment property, and is recorded at cost. Risk M i" t '.p~s~` i . The Au~ty is exposed to vazious risks of loss related to torts; theft of, damage to, and deshuction of assets; errors and omissions; and natural disasters. The Authority carries commercial insurance for these risks of loss. Comparative Data Comparative data for the prior year has been presented in [he accompanying financial statements in order to provide an understandi changes in the Authority's financial position and operations. However, complete com a in accordance with generally accepted accounting principles has not been presented si e: clusion would make the £nancial statements unduly complex and difficult to read. . NOTE 2: STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY Budgetary Informatiou Budgets are adopted for the Authority as a mana 'control devise, but are not legal(y required. Therefore, budgetary information is not pre the financial statements. NOTE 3: DEVELOPMENT PROJECTS During 2004, the AuthoriTy purchased an eight-unit townhome complex known as Parkside. The Authority is rehabili[ating the units for resale to quatified buyers and sold six units during 2006. The Authority previously purchased and rehabilita[ed a condommm~~q ' pmplex on Quail Street. During 2005, the Authority acquired one unit from the complex, ~~6#1 was sold during 2006. During 2006, the Authority purchased a duplex on Parfet Street. At December 31, 2006 the property, including rehabilitation costs, are held for resale. WHEAT RIDGE HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2006 NOTE 4: CASH Deposits ~ ~The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by State regulations. At December 31, 2006, the State regulatory commissioners had indicated that all financial institutions holding deposits for the Authority are eligible public depositories. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. PDPA allows the financial institution to create a single collateral pool for all public funds held. The poof is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. arket value of the collateral must be at least equal to 102% of the uninsured deposits - mber 31, 2006, the Authority had bank deposits of $658,672 collateralized with securf~` 'by the financial ins[i[utiods agent but not in the AuthoriTy's name. Investments The Authority is required to comply with State statutes which specify investment instruments meeting defined rating, maturity, custodial and concentration risk criteria in which local governments may invest, which include: • Obligations of the United S and certain U.S. Agency securities • Certain international kq, curities • General obligation are~ nue bonds of U.S. locat government entities • Bankers' acceptances` certain banks • Commercial paper • Written repurchase agreements collateralized by certain authorized securi[ies • Certain money market funds • Guaranteed investment contracts • Local government inves[ment pools At December 31, 2006, the Authority had no~'in NOTE 5: LOANS RECEIVABLE During 2002, the Authority approved loans, total ing $13,210, to assis[ two homeowners with clos ing costs related to their condominium purchases. One loan requires monthly payments of $50, including interest at 3.5% per annum, through September, 2012. The second loan requires one payment of $3,525, including interest at 3.5% per annum, due in October, 2007. These loans are secured by the condominium units. During 2006, the homeowners made`ptincipal payments totaling $274, resulting in a balance of $12,169 at December 31, 2006. WHEAT RIDGE HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2006 NOTE 6: PROPERTY HELD FOR RESALE " Following is a summary of transactions for the property held for resale for the year ended December ' 31, 2006. Balance Balance 12/31/05 Additions Deletions 12/31/06 Acquisition and Rehabilitation Costs of Investment Proper[y $ 1,010,671 $ 302,321 $ 787911 $ 525.081 NOTE 7: COMMITD ITS AND CONTINGENCIES -~p y~ Mana~' ~it Agreement The Authority has a management agreement with the Jefferson County Housing Authority (JCHA) for contracted services. Under [he terms of Ihis agreement, the Authority contracts for labor and expertise in housing authoriTy management, operation and administration, etc. The contracted services have been classified as functional expenses in the financial statements for better reporting purposes. Cooperation Agreement The Authority has enteragreement with the City of Wheat Ridge for contracted services. Under the terms of this ag ement, the City will provide legal, planning, engineering services, etc., as deemed necessary by the AuthoriTy. Under the terms of this agreement, the City Manager or his designee will act as the Executive Director of the Authority. Claims and Judgements The Authority participates in federal programs that e fully or partially funded by grants received from other governmental units. Expenses finan rants are subject to audit by the appropriate grantor government If expenses are d' due to noncompliance with grant program re gufations, the Authori ty ma y be re quired o reimburse the grantor govemment. As of December 31, 2006, significant amounts of grant expenses have not been audited but the Authority believes that subsequent audits will not have a material effect on the overall £nancial position of the Authority. Tabor Amendment Colorado voters passed an amendment ro the Siate Constitution, ARicle X, Section 20, which has several limitations, including revenue raising, spending abilities and cititer speciFic requirements of state and local governmenk The Amendment is complex and s#~jecY'to judicial interpretation. Management believes the Authority is exempt from the provistiitts of the Amendment. Feb 7 Board of Commissioners Wheat Ridge Housing Authority Wheat Ridge, Colorado We have audited the 10ft".1 tem ents of the Wheat Ridge Housing Authority for the year ended December 31, 2006, and have issued porereon dated February 7, 2007. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Geoerally Accepted Auditing Standards As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perfortn our audit to obtain reasonable, but not absolute, assurance about whether the financial statements are free of ma[erial missta[ement and are presented in accordance with;,generally accepted accounting principles. Because an audit is designed to provide reasonable, but not abs ``urance and because we did not perform a detailed examination of all transactions, there is a risk that mat statements or noncompliance may exist and not be detected by us. In addition, an audit is not designed to det , ~mmaterial misstatements or violations of laws or regulations that do not have a direct and material effect on the financial statements. As part of our audit, we considered the internal wntrol of the Authority. Such considerations were solely for the purpose of detertnining our audit procedures and not to provide any assurance concerning such intemal control. Significaut Accouuting Policies Othe ' ~ Management has the responsibility for se(ection and use of a ateaccounting policies. In accordance with the termsofourengagementletter,wewilfadvisemanagementa tappropriatenessofaccountingpoliciesandtheir application. The significant accounting policies used by Authority are described in Note 1 to the financial statements. We noted no transactions entered into by the Authority during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared byYtita~5gement and are based on managemenPs curren[ judgements. Certain accounting estimates are partjc#litly sensitive because of their significance to the financial statements and because of [he possibility that future events affecting them may differ significantly from management's current judgements. We evaluated the key factors and assumptions used to develop the significant estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Significant Audit Adjustments For purposes of this letter, professional standards define a significant audit adjustment as a proposed correction of the financial statements that, in our judgment, may not have been detected except through our auditing procedures. We did not propose adjustments to the accounting records as a result of our audit work. Disagreeme ts with Management For '~~y f this letter, professional standards define a disagreement with management as a matter, whether or noY ed to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Iudependent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a"seco pinion" on certain situations. [f a consultation involves the application of an accounting principle to _ is financial statements or a determination of the type of auditors' opinion that may be expressed on 4th Cments, our professional standards require the consulting accountant to check with us to determine that thsultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standazds, with management each year prior to retention as the Authority's auditors. However, these discussions occurred in the normal course of our professional relationship. #,nd the responses were not a condition to our retention. ~ Difficulties Encountered in Performin dit We encountered no significant difficulties in performing our audit Conclusion We would like to thank Alan White and Dick Matthews for their assistance and cooperation during the audit. This report is intended solely for the information and use of the of Commissioners and management of the Wheat Ridge Housing Authority and is not intended to be and "no e used by anyone other than these specified parties. Very truly yours, Swanhorst & Company LLC WHEAT RIDGE HOUSMG AUTHORITY General Fund December 31, 2006 ACCT ACCOUNT Client Adjustments Audit NUMBER DESCRIPTION REF 12/31/06 DR CR - 12/31/06 - ASSETS 113 Cash - Operating C (2,150) (2,150) Cash - Condo Assoc. 0 0 Cash - Caznation Constr Acct 0 0 120 Cash - Safekeeping Acct C 755,517 755,517 273,271 Loans Receivable D 12,169 12>169 Prepaid Insurance 0 0 Accoun[ Receivable - grants 0 0 150 Prop Held for Resale - Carnation 0 0 151 Prop Held for Resale - Everett J-l 222,760 222,760 152 Prop Held for Resale - Quail J-1 0 0 153 Prop Held for Resale - Parfet 3-1 302,321 302,321 accumulated depreciation 0 - - 0 TOTAL ASSETS 1,290,617 0 0 1,290,617 LIABILITIES 300 A/P M-1 3,245 37,810 41,055 315 Retainage Payable M-2 40,987 37,810 3,177 310 RE taxes payable J-101 979 979 Home Owners Dues Escrow 0 0 360 Tenant deposi[s 0 0 Accrued Interest 0 0 no[e payable - construction 0 0 mortgage payable - long term 0 - - 0 TOTAL LIABILITIBS 45,211 37,810 37,810 - - 45,211 465 NET ASSETS, Beginning SALY 1,203,063 - - 1,203,063 INCOME (LOSS) 42,343 841,765 - (841,765) - 42,343 NET ASSETS, Ending 1,245,406 841,765 - (841,765) - 1,245,406 TOTAL LIAB AND NET ASSETS - 1,290,617 879,575 (803,955) 1,290,617 O - O INCOME In[ergovemmental 0 0 530 Rentallncome U-1 9,000 9,000 500 Proceeds-Sale of Units U-2 977,800 977,800 535 Interestlncome C 10,907 10,907 Other 0 0 564 Grant Income - CDBG/HOME 0 0 Gain on Sale of Condo Units J-1 0 841,765 - (841,765) TOTAL INCOME 997,707 841,765 0 155,942 EXPENSES General 551 Beginning Cost of Units Sold 0 599 Ending Costs of Uni[s Sold- C V-100 485,590 555 Property Acquisition J-100 237,000 573-580 Property Rehab 93,433 562 Acquisi[ion cost - title fees J-100 172 563 Architecture 0 565 Condo map 6,551 567 Const Period Maintenance 1,291 568 Cosntruction Managemen[ V-1 17,636 570 Garages 0 571 Homeowners Association 2,025 581 Supplies/Materials 932 Loss on Sale of Condo Units 0 Subtotal 544,630 700 Selling cosUBuyers Incentives 79,419 Zoning 0 Commissions 0 Subto[al 79,419 G/A 750 Accounting & Legal 7,075 G/A 754 Appraisal Fees 0 G/A 762 Bank Charges 410 G/A 775 Conference and meeting G/A 777 Con[ract Services G/A 787 Dues, Books, Subs G/A 825 Office Supplies G/A 832 Postage G/A Other Subtotal Housing 802 Gardening & Maintenance 804 Homeowners Assoc. Dues 807 Insurance 843 Repairs 857 RE Tvices 865 Trash removal G/A 872 Utilities G/A 771 City Reimbursement Subtotal Capital Oatlay Debt Service Principal Interest 143 V-1 1,600 60 46 33 69 841,765 0 (356,175) 237,000 93,433 172 0 6,551 1,291 17,636 0 2,025 932 0 0 841,765 2,865 0 79,419 0 0 0 0 79,419 7,075 0 410 9,436 0 0 0 2,595 2,989 5,956 4,635 0 270 1,322 4,112 21879 0 0 0 0 0 0 143 1,600 60 46 33 69 9,436 0 2,595 2,989 5,956 4,635 0 270 1,322 4,112 21879 0 0 0 0 0 TOTAL EXPENSES 955,364 0 841,765 113,599 NET INCOME 42,343 841,765 (841,765) 42,343 Wheat Ridge Housing Authority Audit Adjustments December 31. 2006 Ref AccounY# Description DR CR (1) M-3 315 Retainage Payable 37,810.00 300 Accounts Payable To reclass the amount owed to JO-D Enterprises as accounts payable instead of retainage payable. J-1 599 To adjust the cost of sales at year end. Cost of Sales Ending Cost of Units Sold 841,765.00 37,810.00 841,765.00 March 13, 2007 To: WRHA/Kathy Field Re: Hart Estate In order to bring these two units up to the same condition as a rehabilitation on the for sale WRHA projects, the following would need to be addressed: • Siding to cover old asbestos siding • Vinyl windows(egress) to replace casement windows/blinds • 30 year asphalt shingles and attic vents, roof is shot • Exterior doors and storm doors • Linoleum and or carpet to cover vinyl asbestos floor tiles • Cabinets and tops • Bathroom upgrades • Interior paint • Pave driveways both sides/very muddy now • Walks replaced where needed . Wall and ceiling insulation • Interior doors and closet doors • Update furnaces and locations (pilot lights going out) • Water heaters? • Electrical upgrades • Positive drainage on exterior • Trim landscaping • Update storage sheds • Replace sillcocks • Upgrade electrical service/fixtures • Appliances? • Start preventative program for sewer • Clean heat registers The bold repairs really should be done and the remaining ones as money allows. Henry Wehrdt