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HomeMy WebLinkAbout02/23/2005HOUSING AUTHORITY MEETING February 23,2005 LOBBY CONFERENCE ROOM 7:00 P.M. A. Call Meeting to Order B. Roll Call C. Approval of the Minutes: December 1, 2004 D. Officers Reports E. Public Forum F. UnTnished Business G. New Business 1. Discussion of Bids for Condo Conversion at 45`h & Everett St. 2. Naming of Project at 45Ih & Everett 3. Authorization to hire Swanhorst & Cutler to perform Audit H. Other 1. Adjournment CITY OF WHEAT RIDGE HOUSING AUTHORITY Minutes of Meeting December 1, 2004 A. CALL MEETING TO ORDER The meeting was called to order at 7:00 p.m. by Chair DiTullio. B. ROLL CALL Authority Members Present: Cheryl Brungazdt Kent Davis Jerry DiTullio Kathryn Fulton Kathy Nuanes Others Present: Alan White, Community Development Director Henry Wehrdt, Project Manager Larry Nelson, Cornerstone Realty Betty Maybin, Cornerstone Realty Ann Lazzeri, Recording Secretary C. APPROVAL OF MINUTES It was moved by Kathryn Fulton and seconded by Kathy Nuanes to approve the minutes of July 28, 2004. The motion passed 3-0 with Jerry DiTullio and Cheryl Brungardt abstaining. It was moved by Cheryl Brungardt and seconded by Kathryn Fulton to approve the minutes of September 15, 2004. The motion passed 4-0 with Kent Davis abstaining. D. OFFICERS REPORTS There were no officer reports. E. PUBLIC FORUM There was no one to appear before the Authority. F. There was no unfinished business. Housing Authority Minutes - 1 - 12-01-04 G. NEW BUSINESS Resolution 01 2004 Presentation and Aaaroval of 2005 Budeet The 2005 budget was presented for review. As an authority organized by a local govemment, it is necessazy for the Authority to adopt the 2005 budget before December 15, 2004. Kent Davis stated that he had not had time to review the budget until the meeting because he didn't receive a packet ahead of time. It was moved by Kathy Nuanes and seconded by Kathryn Fulton to accept Resolution No. 01-2004 enacting a budget and appropriation for the year 2005. The motion passed 4-1 with Kent Davis voting no. 2. Update on Carnation Square Proiect a. Sale of Units Larry Nelson reported that two units remain to be sold. The last closing occurred in July. He believed this is primarily due to the slow condition of the real estate mazket. Another factor might be lack of exposure. He suggested that any price reduction for the units should not be considered until after the first of the yeaz. Discussion followed. For more exposure, it was suggested that a flyer be included with city employee paychecks and also check into advertising to school and hospital employees. The possibility of offering owner-carry terms with the Authority carrying 20% of the sales price was discussed. Jerry DiTullio will check with the city attorney to see if this would be permissible. It was moved by Kathryn Fulton and seconded by Cheryl Brungardt to investigate the possibility of the Housing Authority doing owner- carry financing and authorize such financing if approved by the city attomey. The motion passed 4-1 with Kent Davis voting no. b. Drainaee Issue Henry Wehrdt reported that he has been in contact with the church behind Carnation Square. The church has been experiencing drainage problems since the old wooden fence was replaced with a four-foot concrete retaining wall. The water draining from the church property formerly drained through the fence onto the Carnation Square property. Mr. Wehrdt has contacted PG Construction regarding a solution. This company determined it would be necessary to excavate next to the Housing Authority Minutes 2 12-01-04 retaining wall and create a drainage slope to flow further down the property. It would also be necessary to remove a 4' by 4' piece of concrete and install an underground drainage system. The cost estimate is approximately $4,250.00. Direction was given to Mr. Wehrdt to obtain other bids and notify Authority members by e-mail of the results. Mr. Wehrdt will also contact adjacent property owners (the church and the cat hospital) to see if they would be willing to share in the cost of the drainage repair. Part of the problem seems to be a result of recent paving of the church pazking lot. Update on New Proiect at 45« and Everett Street Henry Wehrdt presented an update on the 45`" and Everett Street project and reviewed the bid documents. Bids have been received for tree removal. Graffiti removal is in process. Mr. Wehrdt reported that the Housing Authority was approved for $150,000 in Home Funds pending receipt of a formal application. These funds aze to be used upon the identification of another project within a 15- month period. Mr. Wehrdt also reported that the Jefferson County Housing Authority has acquired two pazcels of land that front 32"d and Wadsworth. There is a possibility for a joint effort on this property between the Jeffco Housing Authority and the Wheat Ridge Housing Authority. H. OTHER There was no other business to come before the Authority. 1. ADJOURNMENT The meeting was adjoumed at 8:15 p.m. The next regular meeting of December 22"a was canceled. Future meetings will be scheduled as needed. 7erry DiTullio, Chair Ann Lazzeri, Secretary Housing Authority Minutes 12-01-04 43&(y Swanhorst & Company LLC cmr.a runhc A«oumnm, January 16, 2005 Board of Directors Wheat Ridge Housing Authority 7500 West 29th Avenue Wheat Ridge, Cobrado 80215 We are pleased to confirtn our understanding of the services we are to provide for the Wheat Ridge Housing Authority for the year ended December 31, 2004. We will audit the basic financial statements of the Authority as of and for the year then ended. Also, the document we submit to you will include the following additional information [hat will be subjected to the auditing procedures applied in our audit ofthe basic financial statements. • ManagemenYs discussion and analysis • Schedule of expenditures of federal awards, if required. Audit Objective The objective of our audit is the expression of an opinion as to whether your basic financial statements are fairly stated, in all material respects, in conformity with generally accepted accounting principles and to report on the faimess of the additional information referred ro in the first paragraph when considered in relation to the basic 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 GovernmentAuditing Standards, issued by the Comptroller General of the United States; the Single Audit Act of 1984; and the provisions of OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profrt Organizations, and will include tests of the accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion on the basic financial statements is other than unqualified, we will fully discuss the reasons with you in advance. If, 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 information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains wi[h you. That responsibility inciudes the establishment and maintenance of adequate records and effective internal contro] over financial reporting the selection and application ofaccounting principles, and the safeguardingofassets. Managementisalsoresponsibleforadjustingthebasicfinancialstatementstocorrectmaterial - misstatements and for affirtning 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 immateriai, both individually and in the aggregate, to the basic 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 ihe fraud couid 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number oftransactions to be examined and the areas to be tested. We will plan and perform the audit ro 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 beeause 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 wil] 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 and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will 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 wil) also require certain written representations from you about the financial statements and related matters. Identifying and ensuring that the Authoriry complies with laws, regulations, contracts, and agreements is the responsibility ofmanagement. Aspart ofobtainingreasonableassuranceaboutwhetherthebasicfinancialstatements are free of material misstatement, we will perform tests of the Authority's compliance with applicable laws and regulationsandtheprovisionsofconvactsandageements. 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 In planning and performing our audit, we will consider the intemal 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 basic financial statements. An audit is not designed to provide assurance on intemal control or to identify reportable conditions. However, we will infortn the go4erning body or audit committee of any matters involving intemal control and its operation that we consider to be reportable conditions under standazds established by the American Institute of Certified Public Accountanu. 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 the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the basic financial statements. Board of Directors Wheat Ridge Housing Authority 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 tha[ our maximum fee will not exceed $3,500. 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 wiil discuss ii 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, t' 4&"fA~r 4-1c Swanhorst & Company LLC RESPONSE This letter correctly sets forth the understanding of the Wheat Ridge Housing Authority. February 9, 2005 STATE OF COLORADO OFFICE OF THE STATE AUDITOR LOCAL GOVERNMENT AUDIT DIVISION (303) 869-2870 FAX (303) 869-2875 Board of Commissioners Whea[ Ridge Housing Authority c/o Randy Young 7500 West 29" Avenue Wheat Ridge, Colorado 80215 Dear Board Members: JOANNE HILL, CPA State Auditor Legislative Services Building 200 East 14ih Avenue Denver,Colorado 80203-2217 RE: #7353 The Colorado Local Govemment Audit Law (Section 29-1-601, et seq., C.R.S.) directs the State Auditor to examine the audits of all local governments in Colorado. In compliance with this law, we have reviewed the audited financial report of the Wheat Ridge Housing Authority for the year ended December 31, 2003. We found your report to be well prepazed and informative. We noted that the Authority's revenues and expenditures were less than $500,000 in 2003. If neither revenues nar expenditures exceed $500,000 in 2004, the Authority would qualify for an exemption from audit. Section 29-1-604, C.R.S. explains this further. If the Authority decides to apply for an exemption, an Application for Exemption From Audit Form would need [o be completed in lieu of having an audit. The Application would need to be completed and submitted within three months of the end of the fiscal year. Further information can be obtained on our web site at http://wwws[ate.co.us/auditor under the Local Government tab - link 06 - Preparing an Application for Exemption from Audit. You may also contact our office for assistance at 303-869-2870. If we may be of any assistance to you, please feel free to call us. Sincerely, ~~,&ftC Dianne E. Ray, CPA Director of Local Govemment Audits DER: id/ch cc: Swanhorst & CuHer LLC Certified Public Accountants Jackie Wals[on U. S. Dept. of Housing & Urban Development