Louisville Housing Authority Agenda and Packet 2014 09 30

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Louisville Housing Authority Management's Discussion and Analysis December 31, 2013 The financial statements report information for all LHA funds. The Statement of Net Position includes all of LHA's assets and liabilities and change in net position. The Statement of Revenues, Expenses and Changes in Net Position report all revenues and expenses of LHA for 2013. In addition to reporting this supplementary information in the audit report, the Authority is required to submit financial information annually for its projects to related parties, such as federal, state and local grantors, bond insurers and individual banks for which the Authority holds notes and mortgages. The Statement of Net Assets and the Statement of Activities The Statement of Net Position, including total assets and total liabilities and net position and the Statement of Revenues, Expenses and Changes in Net Position, report information about the entity as a whole and about its activities in a way that helps to respond to this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to most private- sector companies. These two statements report LHA's net assets and changes in them. LHA's net asset, the difference between assets and liabilities, is one way to measure financial health and financial position of the entity. Over time, increases or decreases in the net assets are one indicator of whether its financial health is improving or deteriorating. Along with net assets, the reader should consider other nonfinancial factors that contribute to the entity's overall financial health. These topics are discussed in the Economic Factors and Budget Impacts section below. In the Statement of Net Assets and the Statement of Revenues, Expenses and Changes in Net Position, LHA presents Governmental activities. All LHA's basic services are reported here. Reporting LHA's General Fund Financial Statements — Statement of Net Position The fund financial statements provide detailed information about the general fund. LHA presents only a general fund, which is a governmental fund. All of LHA's basic services are reported in the general fund. The fund is reported using modified accrual basis of accounting. Modified accrual basis of accounting is used in governmental funds for revenues and expenditures, where revenues are recognized when they are measurable and available to pay for current period liabilities and expenditures are recognized when a transaction is expected to draw upon current spendable resources. The general fund statements provide a detailed yearly view of LHA's general government operations and the basic services it provides. Governmental fund information helps to determine whether there are more or fewer financial resources that can be spent in the near future to finance LHA operations. Louisville Housing Authority — Primary Government Based on the execution of the three -party Intergovernmental Agreement in August of 2012, four LHA properties (Acme Place, Lilac Place, Regal Court II and Lydia Morgan), a total of 56 units, were transferred to BCHA in October 2012. The remaining three LHA properties (Regal Square (HUD Section 8 new construction), Hillside Square (HUD Public Housing), and Sunnyside aka East Street (Low Income Housing Tax Credit - LIHTC), a total of 60 units, were transferred to BCHA in 2013. 6 16