HomeMy WebLinkAbout01/28/2004HOUSING AUTHORITY
MEETING
January 28, 2004
LOBBY CONFERENCE ROOM
7:00 P.M.
A. Call Meeting to Order
B. Roll Call
C. Approval of the Minutes: June 25 & July 23, 2003
D. Officers Reports
E. Public Forum
F. Unfinished Business
G. New Business
1. Adoption of 2004 Budget
npproval cf L:ngagement I,ette; -2003 Audit
H. Other
1. Adjournment
CITY OF WHEAT RIDGE HOUSING AUTHORITY
Minutes of Meeting
July 23, 2003
A.
B.
CALL THE MEETING TO ORDER
The meeting was called to order by Jerry DiTullio at 7:02 p.m. in the Lobby Conference Room
of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado.
ROLL CALL
Authority Members Present:
Authority Members Absent:
Cheryl Brungardt
Jerry DiTullio
Kathryn Fulton
Mazy Jo Cavarra
Kent Davis
Others Present: Alan White, Planning Director
Dick Matthews, Accountant
Larry Nelson, Cornerstone Realty
Betty Maybin, Comerstone Realty
Jim Bills, Vectra Bank
Wendy Swanhorst, Auditor
Lynn Brown, Habitat for Humanity
Ann Lazzeri, Recording Secretary
C. APPROVAL OF MINUTES
The minutes of June 25, 2003 will be considered at the next Housing Authority meeting
because there was only one member present who had attended the meeting.
D. OFFICERS REPORTS
There were no officers reports.
E. PUBLIC FORUM
There were none present to address the Authority.
F.
There was no unfinished business to come before the Authority.
G. NEW BUSINESS
1. Presentation and acceptance of audit
It was moved by Kathryn Fulton and seconded by Cheryl Brungardt to accept the
audit as presented. T6e motion passed 3-0.
Housing Authority
July 23, 2003
Page 1
2. Habitat for Humanilv Presentation
Lynn Brown from Habitat for Humanity presented information regazding the formation
and function of Habitat for Humanity. In this program, homeowner candidates and
volunteers work together to build simple, decent affordable housing. Mortgage
payments aze reinvested into the program to fund future construction. Classes are held
for homeowners for education in the areas of maintenance, landscaping, etc. Habitat
likes to spend no more than $30,000 for land to build a single home. Under the right
circumstances, they would purchase run-down property, remove the structures and build
new houses. Lynn stated she would check into the possibility of Wheat Ridge Housing
Authority homeowners attending the classes conducted by Habitat. She will report back
to Alan White with the information.
Habitat for Humanity has just completed an 18-unit townhouse project in the city of
Lakewood and would be interested in partnering with the Wheat Ridge Housing
Authority on affordable housing projects.
3. Update on Carnation Square Proiect
Larry Nelson presented an update on the project and reviewed construction cost and bid
information prepared by Henry Wehrdt from Jeffco Housing Authority. These reports
were provided to Authority members.
The preliminazy development budget would allow eight units to be sold at $126,000 and
two units at $121,000. Five gazages would be available at an additional cost of $6,500.
All units will have storage units included in the sale price. There was a consensus to
authorize Comerstone Realty to use these prices Yor marketing purposes.
H. OTHER
Cancel Au¢ust Meetine
It was moved by Cheryl Brungardt and seconded by Kathryn Fulton to cancel the August
Housing Authority meeting unless an emergency meetiog is required. The motion passed
3-0.
I. ADJOURNMENT
The meeting was adjourned at 7:50 p.m.
Jerry DiTullio, Chair
Ann Lazzeri, Secretary
Housing Authority
July 23, 2003
Yage 1
CITY OF WHEAT RIDGE HOUSING AUTHORITY
Minutes of Meeting
June 25, 2003
A.
B.
C.
D.
E.
F.
CALL THE MEETING TO ORDER
The meeting was called to order by Vice Chair Cavarra at 7:07 p.m. in the Lobby Conference
Room of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado.
ROLL CALL
Authority Members Present:
Authority Members Absent
Cheryl Brungazdt
Mazy Jo Cavarra
Kent Davis
Jerry DiTullio
Kathryn Fulton
Others Present: Alan White, Planning Director
Dick Matthews, Accountant
Larry Nelson, Comerstone Realty
Jim Bills, Vectra Bank
Henry Wehrdt, Jeffco Housing Authority
Wendy Swanhorst, Auditor
Ann Lazzeri, Recording Secretary
APPROVAL OF MINUTES
Cheryl Brungazdt requested an amendment to the last sentence of page two of the minutes.
National Association of Housing should be changed to "Colorado Association of Housing.° It
was moved by Kent Davis and seconded by Cheryl Brungardt to approve the minutes of
Apri123, 2003. The motion passed 2-0 with Mary Jo Cavarra abstaining.
OFFICERS REPORTS
There were no officers reports.
PUBLIC FORUM
There were none present to address the Authority.
UNFINISHED BUSINESS
There was no unfinished business to come before the Authority.
G. NEW BUSINESS
1. Presentation and accentance of audit
Wendy Swanhorst reviewed the Housing Authority audit. It was moved by Kent Davis aod
seconded by Cheryl Brungardt that acceptance of the audit be tabled until the July 23,
Housing Authority
June 25, 2002
Page I
2003 meeting to give all Authority members time to review t6e audit. The motion passed
3-0.
2. Update on Carnation Sauare Proiect
Alan White reported that City Council approved a vacation of the easement on the property
which will allow garages to built.
Larry Nelson reported that he has received 18 applications to pwchase a unit at Camation
Square which have resulied in 5 applications presently under consideration. He believed this
was a good response in light of the fact that no marketing, other than an article in the Wheat
Ridge Connection, has taken place. He also reviewed the preliminazy development budget as
well as information on affordability and loan qualification.
Henry Wehrdt reviewed owner/contractor agreements and proposed summazies for vazious
rehabilitation projects and informed the Authority that all bids should be in by the end of this
week. Bids received so far have been under estimates. Wheat Ridge contractors were given
preference in the bidding process in order to support the city's economy. Once bids aze
finalized and a notice to proceed has been issued, construction can begin. Condo maps should
be complete 120 days after the notice to proceed is issued.
It was suggested that publicity be given to the fact that the Housing Authority is working with
local Wheat Ridge contractors as well as providing affordable housing to Wheat Ridge
residents.
H. OTHER
Dick Matthews presented the financial report for the Housing Authority. Authority members
felt the financiai reports will be very helpful in tracking the budget process.
1. ADJOURNMENT
The meeting was adjourned at 8:50 p.m.
Mary Jo Cavarra, Chair
Ann Lazzeri, Secretary
Housing Authority Page 2
June 25, 2002
City of Wheat Ridge
Wheat Ridge Housing Authority
nIIHE'lop
Memorandum
TO: Housing Authority Board Members
FROM: Kathy Field
SUBJECT: 2004 Budget Adoption; Audit Engagement Letter
DATE: January 23, 2004
Attached is the proposed 2004 budget for the Housing Authority.
We anticipate closings for the remaining units at 6410 W. 44" Pl. in the first quarter of 2004.
Revenues include rent collected at the Richards-Hart Estate duplex.
Expenditures include closing costs and commissions on the remaining units at 6410 W. 441" Pl.
The purchase of another property is also included.
The second item is an engagement letter with Swanhorst & Cutler to complete the audit for the
Housing Authority. The cost for this audit is for time and expenses, not to exceed $3000.
c,oe sNn.puon>+v.+r oo~~~:vc,mrwo~:~~x n~iro.n>~nmx m..wuayna,.ail wpa
oinorw
Wheat Rldge Housing AuUiorlty
Proposed Budget
zoos
Unautl11M
200~
Ordlnuy InCOmMFxpnN
Incom.
aoo- sei. a unn.
uw,ooo
6m - Rant
10,570
S]5 - InbrtR Ineoms
1 063
6!i - MluNlanww Income
5
Taal Inmm.
cow m cooa. soia
661 - Beplnnlnp CM ol Untts
369,839
666 - Vurchase ol UnIN
789,o00
6lO- AC9ulatlonApprolWFea.
550
. Sl2. Ac9ubklom Cwlt
301
6M - CDBG GwM
-11 SB1
6!6 Contlo Map
1,685
6!! - ConNructlon 7MoA IMemt
1,375
681 Censtruetlon NrIOE MalManane.
6,209
6EY - EnvlronmeMal SNdy
1.530
6]OGarape.
41.199
571 Homeownen NKKNtlon
1 000
614 - Lonn Cwh
5,140
693 Rahabllllatlon-Hppllanen
8,247
674R.haEIIIHOOn-CMlneb
M.050
575. RshabIlXNOn - ElMtlcal
17,211
17s adn,bin+~non.en-ier
.zzoo
Sl]. RNUbIIHallen - Floon
2I,U4
578 RMaE1111a1an-Vlumbin9
61,U3
61YR.haWlMlon-3Weluol
71.201
6[0 RehaElittallen - Varlous
5,093
58], TMlelnsuranca
916
6t6 Tttp SUrcM1U
265
5Y6 - Zonlnp ApPIlWlon
300
6iY - EnEln9 CM af UnXs
476.175
TotN COGS
585,682
Grou Follt
E1p.11M
700 - UIIIn9 CoNs
825
la euy*r Ineemlvo
m
1z.aW
106 - Clesin9 Cooh
1.114
HO . Commloloro
21.304
)SO - AceouMln9 8 LW a1
4.I47
762 Bank Ch+ryu
31
777 - CMyReImbuMmeM
2,5W
l16 - ConM1nnce i MMInp Fs(»nu
25
m- COmnpSxvim
o
107 ouw. 9oot• a subcnvtlom
ao
YV! - GaNimlny i MaIMMUic.
1,08/
BW - Homwwnm Na«latlen Dust
288
1101- In..
5.191
' t26 qfln Supplln
12
832- Pow".
41
BJi - FlMing 6 [oplp
o
W - R.pYn
1.Ii9
B0.1 Suppllw
0
B61 Tun-RUl Estate
361
e!6 - Tmh R.moval
l2
PropnM
1005
2001
euayM
euapR
375,000
1,011,000
9,000
10,000
3,60D
1.SOD
fi00
500
388.ZOD
1.023,000
].000
-H,5B1
8]fi,1]5
3,000
1.OD0
591 8]6.1]5
3ee,781 us,en
1B,]50
S,OW
500
15,000
500
5,aa0
3,000
]50
250
1 000
1.4p
19.6%
6.5oe
w.833
10,000
1W
3,OW
500
500
1 S00
2.000
m
250
500
1.500
250
1 000
~o Papa 1 0l ]
alrtoiw
Wheat Ritlge Housiny Authoriry
Proposed Budget
2004
Aelual
2003
20W
MW
BuEyN
Bu09e1
213U0110w
1,470
5,000
1,500
Tow FsPenu
%.ODS
54.500
U,bp2
NalOrtllnarylncom~
8,95f
334,281
62,n3
an•r IncomNEVpenw
an« E.P.n•.
910 IMerosl Expens,
1.074
5,000
1.2(10
TotalOthor Erpente
1,074
S,OOD
1 Xp
NNMalneomNEZpeme
-1.074
5,000
-1,2W
NM Incom.
1.11A
339.201
61.033
BplnnlnpFUnaBalane*
t.106.m
1.106.1X
1,113,l03
EnGInD Fund Balane.
1.113.COJ
1.436.OO7
1,174.M
Paye 2 0l3
Swanhorst & Cutler LLC
c~r a wnu, n<r,-
November 7, 2003
Board of Directors
Wheat Ridge Housing Authority
7500 West 29th Avenue
Wheat Ridge, Colorado 80215
We are pleased ro confirm our understanding of the services we are to provide for the Wheat Ridge Housing
Authority for the year ended December 31, 2003. We will audit the general purpose financial statements of the
Authority as of and for the year then ended. Also, the document we submit [o you will include the following
additional information that will be subjected to the auditing procedures applied in our audit of the general purpose
financial statements.
• Combining and individual fund financial statements.
• Schedule of expenditures of federal awards, if required.
Audit Objective
TL•e obj.ctr.e oCoi.: audit is?!.e ccpressiun o~an opiniui as to %~hetlter \our purpo,c financ !i cutcrr,
are fairly presented, in all material respects, in conformi[y with general ly accepted accounting principles and to report
on the fairness of the additional information referred to in tlie first paragraph when considered in relation to the
general purpose financial statements taken as a whole. Our audit will be conducted in accordance with generally
accepted auditing standards and if required, the standards for financial audits contained in Gorernment Audriing
Standards, issued by [he Comptrol ler General of the United States; the Single Audit Act of 1984; and the provisions
of OMB Circular A-133, Audils ofStates, Local Governments, and Non-Profit Organi>ations, and will include tests
ofthe accounting records and other procedures we consider necessary to enable us to express such an opinion. If our
opinion on the general purpose financial statements is other than unqualified, we will fully discuss the reasons with
you in advance. ]f, for any reason, we are unable to complete the audit or are unable to form or have not formed an
opinion, we may decline to express an opinion or to issue a report as a result of this engagement.
Management Responsibilities
Management is responsible for making all financial records and related information available to us. We understand
that you will provide us with such informa[ion required for our audit and that you are responsible for the accuracy
and comple[eness of that information. We will advise you about appropriate accoun[ing principles and their
application and will assist in the preparation of your financial statements, but the responsibility for the financial
statements remains with you. That responsibility includes the establishment and maintenance of adequate records
and effective internal control over financial reporting the selection and application of aceounting principles, and the
safeeuarding of assets. Management is also responsible for adjusting the general purpose financial statements to
correct material misstatements and for affinning to us in the representation letter that the effects of any uncorrected
misstatements aggregated by us during the current engagement and pertaining to the latest period presented are
immaterial, both individually and in the aggregate, to the general purpose financial statements taken as a whole.
8400 E. Crescent Parkway • Suite 600 • Greenwood Village, CO 80111 •(720) 528-4306 Fax: (720) 528-4307
Board of Directors
Wheat Ridge Housing Authority
Page 2
Management is responsible for the design and implementation of programs and controls to prevent and detect fraud,
and for informing us about all known or suspected fraud involving management, employees who have significant
roles in internal control, and others where the fraud could have a material effect on the financial statements. You
are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud received in
communications from employees, former employees, regulators, or others. In addition, you are responsible for
identifying and ensuring that the Authority complies with applicable laws and regulations.
Audit Procedures-General
An audit indudes examining, on a test basis, evidence supporting the amounts and disdosures in the financial
statements; therefore, our audit wil l i nvobe j udgment about the number of transactions to be exam i ned and the areas
to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether
the financial statements are free of material misstatement, whether caused by error or fraud. Because an audit is
designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination
of all transactions, there is a risk that material misstatements may exist and not be detected by us. In addition, an audit
is not designed to detect immaterial misstatements or violations of laws or regulations that do not have a direct and
material effect on the financial statements. However, we will inform you of any material errors and any fraud that
comes to our attention. We will also inform you of any other violations of laws or regulations that come to our
attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit
and does not extend to matters that might arise during any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and
may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other
assets aud liabilities uy correspundencc ~cith sclcUed individuuls, acuiLor, and ~.nancial in;trtuhons We N+'if(
request written representations from your attorneys as part of the engagement, and they may bill you for responding
to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about
the financial statements and related matters.
Identifying and ensuring that the Authority complies with laws, regulations, contracts, and agreements is the
responsibility ofmanagement. Aspart ofobtainingreasonableassuranceaboutwhetherthegeneralpurposefinancial
statements are free of material misstatement, we will perform tests of the Authority's compliance with applicable
laws and regulations and the provisions of contracts and agreements. However, the objective of our audit will not
be to provide an opinion on overall compliance and we will not express such an opinion.
Audit Procedures-Internal Control
[n planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to
determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinion on the
Authority's general purpose financial statements.
An audit is not designed to provide assurance on internal control or to identify repoRable conditions. However, we
will inform the governing body or audit committee of any matters involving intemal control and its operation that
we consider to be reportable conditions under standards established by the American Institute of Certified Public
Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in
the design or operation of the internal control that, in our judgment, could adversely affect ihe entity's ability to
record, process, summarize, and report financial data consistent with the assertions of management in the general
purpose financial statements.
Board of Directors
Wheat Ridge Housing Authoriry
Page 3
Audit Administration, Fees, and Other
Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction,
typing, postage, travel, copies, telephone, etc.) except that we agree that our maximum fee will not exceed $3,000.
Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the
personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and
are payable on presentation. The above fee is based on anticipated cooperation from your personnel and the
assumption that unexpected circumstances will not be encountered during the audit. If significant additional time
is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs.
We appreciate the opportunity to be of service to the Wheat Ridge Housing Authority and believe this letter
accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If
you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to
us.
Very truly yours,
5-Z(~~--t- sZ~4 L~
Swanhorst & Cutler LLC
RESYONSE
This letter correctly sets forth the understanding of the Wheat Ridge Housing Authority.
By