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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