Louisville Housing Authority Agenda and Packet 2012 05 29

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Frank had no additional updates at this time. Finance Update Clifton Larson 2011 audit presentation Mark Elmshauser Hewent over the communications letter, which is a requirement for you as the Board of Louisville Housing Authority. As auditors, our responsibility is ultimately to form and express an opinion on the financial statements. Our work does not relieve you or your management of your responsibilities. In the case of the Housing Authority Each of the financial statements contains other supplementary information and detail of expenses; to make sure it conforms to accounting records. We believe that information, as it relates to our audit, is fairly presented. This year there were no new principles, applied, selected, or changed. No significant transactions occurred. significant discloser we feel needs to be brought to your attention. He thanked Shirley, Frank, Mary Corbat, and Richard for their assistance. Management letters for Lincoln Street and East Street were presented. We made minor adjustments and encourage a thorough review. East Street has had more issues with various restrictive covenants and funding levels. We suggest a periodic review of restrictive covenants to monitor compliance. Mark DeVries focused on the LHA financial statements. One of the things that has changed from last adjustments that needed to be made. He discussed the balance sheet on page 1 and fluctuations from the prior year. Accrued interest has increased from the prior year because of a payment made back to East Street. They still owe that to the LHA. New line item is due from other entities. That represents the amount forwarded to East Street to meet the debt covenant from last year. Total operating revenues have increased due to higher occupancy rates in 2011. Non routine maintenance has decreased over the past year. The loan forgiveness line has to do with the Lincoln Street loan, which has been forgiven for the amount of $100,000.00. Frank thanked and said he appreciated how smoothly things went this year. Richard said that after many new hires, we have a full staff this year. We are going to have a structured process to review East Street and are inviting Jeremy Durham to help us move forward with tracking that on a monthly basis. We are putting in place the team to have a consistent review of East Street and Lincoln. Frank answered what the board wants. He said that there are two processes. M with those, are your monthly tracking of the Authorityperformance. Use that, with your maintenance data to track where we are in the Section 8 in the community. From that process throughout the year, everything comes together for the audit. In January the board reviews the year end statements for the calendar year. Every month we show that monthly period plus year to date financials. This includes reviewing covenant restrictions and the test of our compliance with regulations and how we assess people coming into eligibility programs. The auditors simultaneously audit our BCHA and Human Services funds. They are testing our compliance in each program that receives Federal funding. 3