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