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HomeMy WebLinkAbout12/11/2002t HOUSING AUTHORITY MEETING December 11, 2002 CITY HALL, SECOND FLOOR CONFERENCE ROOM 7:00 P.M. A. Call Meeting to Order B. Roll Call C. Approval of the Minutes: August 28, 2002 D. OffScers Reports E. Public Forum F. Unfinished Business G. New Business 1. Adoption of 2003 Budget 2. Approval of Engagement Letter - 2002 Audit 3. Cancellation of December 25'h meeting - Christmas H. Other I. Adjournment - to January 22, 2003 CITY OF WHEAT RIDGE HOUSING AUTHORITY Minutes of Meeting August 28, 2002 A. CALL THE MEETING TO ORDER The meeting was called to order by Chair DiTullio at 7:00 p.m., August 28, 2002, in the Second Floor Conference Room of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. B. ROLL CALL Authority Members Present: Cheryl Brungardt Mazy Jo Cavarra Kent Davis Jerry DiTullio Authority Members Absent: Kathryn Fulton Others Present: Alan White, Planning Director Larry Nelson, Cornerstone Realty Betty Maybin, Cornerstone Realty Jnn Bills, Vectra Bank Alan Feinstein, Jefferson County Housing Authority Dave Firman, Housing Authority Attorney Ann Lazzeri, Recording Secretazy C. APPROVAL OF MINUTES It was moved by Cheryl Brungardt and seconded by Kent Davis to approve the minutes of July 24, 2002. The motion passed unanimously. D. OFFICERS REPORTS There were no officer reports. E. PUBLIC FORUM There were none present to address the Authority. F. UNFINISHED BUSINESS There was no unfinished business to come before the Authority. G. NEW BUSINESS 1. Discussion of Housin¢ Authoritv takins over mana¢ement of Richards-Hart Estate duplex City Council approved the Housing Authority taking over management of the duplex on the Richards-Hart Estate. The duplex was previously managed by the Parks and August 28, 2002 rage i Recreation Department. Rent received from the duplex will provide approximately $9,000 a yeaz income to the Authority. T'his change will take place on September 1, 2002 and will not affect the current tenants. Some minor repairs will probably be necessazy in the fixture. It was suggested that students from Warren Tech could do some of the remodeling/repair work. Alan Feinstein will also look into the possibility of using CDBG funds for repairs. 2. Mana¢ement of Ouail Square Larry Nelson reported that he has contacted numerous property management companies. He did not find much interest from the companies to manage such a small project. There is one company that indicated they would consider the project if no one else could be found. He also read a letter from Marcy Emily who is interested in managing the property for 10% of monthly income from HOA dues. She is a Wheat Ridge resident and has had experience in managing smaller properties. Larry Nelson reported that four units aze presently under contract and close to being finalized. They have been averaging one showing per day with several on the weekends. Neighbors have expressed appreciation to the Housing Authority because they believe the improvements to this property have increased their property values. It was moved by Mary Jo Cavarra and seconded by Cheryl Brungardt that the Housing Authority seriously consider Marcy Emily as the property manager for Quail Square. The motion passed 4-0. 3. Insurance Matters for Ouail Square Larry Nelson reported that it is difficult to find an insurance company willing to insure a property as small and old as Quail Squaze. Once the first closing has taken place, the City's insurance (CIRSA) will no longer insure the project and the Housing Authority must have its own insurance. The best bid so faz was received from Continental Westem in the amount of $6,377. This company would be willing to accept a 25% down payment with monthly payments to follow over the next nine months. It was moved by Kent Davis and seconded by Mary Jo Cavarra that the Housing Authority go with Continental Western Insurance pending a better offer before the first closing. The motion passed 4-0. G. OTHER There was discussion about different methods of mazketing the units. It was moved by Cheryl Brungardt and seconded by Kent Davis that information about Quail Square be included with the next City of Wheat Ridge payroll. The motion passed 4-0. Other suggestions for places where information could be disseminated included the Wheat Ridge branch of Vectra Bank and Lutheran Hospital. Page 2 August 28, 2002 . Jerry DiTullio reported that, upon the sale of the first five units, the bank debt would be satisfied. • Alan Feinstein reported that the Secretazy of Housing and Urban Development would be in town tomorrow. The present administration is pushing for home ownership and the Quail Squaze project is being considered as a site for a publicity effort which will take place in October. . Jerry DiTullio reminded everyone of the open house for Quail Square and the streetscape project to be held on September 6. • Dave Firman reported that the condominium map is complete. H. ADJOURNMENT The meeting was adjourned at 8:00 p.m. Jerry DiTullio, Chair Housing Authority August 28, 2002 Ann Lazzeri, Secretazy Page City of Wheat Ridge oF WHEqT,p ~ Planning and Development Department ~ ° Memorandum Cp~~RA~O TO: Housing Authority Board Members FROM: Alan White, Planning and Development Director bv SUBJECT: 2003 Budget Adoption; Audit Engagement Letter DATE: December 5, 2002 Attached is the proposed 2003 budget for the Housing Authority. The budget assumes ll closings on units this year at 38`h/Quail, with the remainder sold next year. Revenue includes the rent collected at the Richazds-Hart Estate duplex. Expenditures include closing costs and commissions on the remaining units at 38`h /QuaiL The purchase of another property is also included. The second item is an engagement letter with an audit firm to complete an audit for the Housing Authority. This is the same firm used by the City. The City is not including the Housing Authority in its audit. The cost for this audit is for time and expenses, not to exceed $3,000.00. CADocuments and Se[tings\a]an\My Documents\WPFiles\ProjectsV-Iousing Au[hority\dec 11 meeung memo.doc WHEAT RIDGE HOUSING AUTHORITY Actua12001 Est2002 Budget2003 REVENUE 70-520-00-539 State Grants $500,000 $0 $0 70-580-00-580 Rent $15,650 $28,627 $9,000 70-580-00-581 Interest $3,672 $3,600 $3,600 70-580-00-588 Misclncome $102,385 $150 $600 70-580-00-589 Fund Balance Carryover $0 $61,729 $714,748 70-580-00-591 Transfer From General Fund $500,000 $0 $0 Prop Acquisition Loan Proceeds $238,294 $0 $0 Sale of Units $0 $1,375,000 $375,000 CDBG $0 $43,898 $11,581 Total Revenue $1,360,001 $1,513,004 $1,114,529 EXPENDITURES 70-106-600-602 Staff Salaries $0 $0 $0 70-106-600-619 Temp Personnel/Non-hourly $0 $0 $0 70-106-600-620 FICA Expenses $0 $0 $0 70-106-600-625 Medicare $0 $0 $0 70-106-600-630 CCOERA LO LO LO 600 Totals $0 $0 $0 70-106-650-651 Office Supplies $0 $0 $250 70-106-650-653 Postage $0 $0 $250 70-106-650-654 Photocopying & Printing $0 $0 $1,000 70-106-650-660 Operating Supplies 50 _$75 250 650 Totals $50 $75 $1,750 70-106-700-702 Conf. & Meeting Expense $0 $200 $500 70-106-700-704 ContractualServices $11,556 $1,500 $15,000 70-106-700-706 Dues, Books, Subscriptians $0 $60 $500 70-106-700-711 Appraisal Fees $6,900 $0 $7,000 70-106-700-712 Homeowners Association Dues $0 $0 $3,000 70-106-700-727 City Reimbursement $4,520 $5,000 $5,000 70-106-700-750 Misc. Clasing Costs & Fees ' $0 $68,750 $16,750 70-106-700-760 Utilities $0 $7,000 $5,000 70-106-700-789 Titlelnsurance $0 $0 $3,000 70-106-700-793 Title Searches $0 $0 $1,000 Rent LO 3 750 Mo 700 Totals $22,976 $86,260 $58,750 70-106-800-801 PropAcquisition/Rehab $1,273,673 $429,797 $1,000,000 Property Maintenance - RHE $5,000 70-106-800-899 Unallocated LO LO Uo 800 Totals $1,273,673 $429,797 $1,005,000 70-106-900-902 Loanlnterest . $1,573 $43,830 $5,000 70-106-900-903 Rehab Loan Payment - Prop Acq 0 238 294 $-0 900Totals $1,573 $282,124 $5,000 Total Expenditures $1,298,272 $798,256 $1,070,500 FUND BALANCE $61,729 $714,748 $44,029 HA 2003 Budget Swanhorst & CutlerLLC CectiSed Pubtic Accouobnfs December 4, 2002 Board of Directors Wheat Ridge Housing Authority 7500 West 29th Avenue Wheat Ridge, Colorado 80215 We aze pleased to conFirm our understanding of the services we aze to provide for the Wheat Ridge Housing Authority for the year ended December 31, 2002. We will audit the general purpose financial statements of the Authority as of and for the yeaz then ended. Also, the document we submit to 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 The objective ofpur audit is the expression of an opinion as to whether your general purpose financial statements aze fairly presented, in all material respects, in conformitywith generally accepted accounting principles and to report on the fairness of the additional information referred to in the first pazagraph when considered in relation to the generaLpurpose financial statements taken as a whole. Our audit will be conducted in accordance with generally accepted auditing standards and if required, the standuds for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act of 1984; and the provisions of OMB Circulaz A-133, Audits ofStates, Local Governments, and Non-Profrt Organizations, 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. If, for any reason, we aze unable to complete the audit or aze 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 with you. That responsibility includes the establishment and maintenance of adequate records and efFective intema] control over financial reporting, the selection and application of accounting principles, and the safeguarding of assets. Management is also responsible for adjusting the general purpose financial statements to correct material misstateinents and for affirming 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 Boazd of D'uectors Wheat Ridge Housing Authority Page 2 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 of Vansactions to be examined and the azeas 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 of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that a material misstatement may exist and not be detected by us. In addition, an audit is not designed to detect errors, fraud, or other illegal acts that aze immaterial to the general purppse 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 illegal acts that come to our attention, unless cleazly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might azise during any later periods for which we aze not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests ofthe physical existence of inventories, and d'uect confirmation ofreceivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attomeys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of ow 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 responsibiliTyofmanagement. Aspartofobtainingreasonableassuranceaboutwhetherthegeneralpurposefinancial 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 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 general purpose financial statements. An audit is not designed to provide assurance on internal control or to identify reportable conditions. However, we will inform the governing body or audit committee of any matters involving internal control and its operation that we consider to be reportable conditions under standacds 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 intemal control that, in our judgment, could adversely affect the entity's ability to record, process, summazize, and report Financial data consistent with the assertions of management in the general purpose fmancial statements. Audit Administrafion, Fees, and Other Our fee for these services will be at our standazd hourly rates plus out-of-pocket costs (such as report reproduction, typing, postage, travel, copies, telephone, etc J except that we agree that our maximum fee will not exceed $3,000. Our standazd 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 aze payable on presentation. The above fee is based on anticipated cooperation from your persormel 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. Board of Directors Wheat Ridge Housing Authority Page 3 We appreciate the opportunity to be of service to the Wheat Ridge Housing Authority and believe this letter accurately sammazizes the significant tettns of our engagement. If you have any questions, please let us lmow. 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 yows, 9444"j,;t Swanhorst & Cutler LLC RESPONSE This letter correctly sets forth the understanding of the Wheat Ridge Housing Authority, Date